[Congressional Record (Bound Edition), Volume 153 (2007), Part 9]
[Senate]
[Pages 11986-12005]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself and Mr. Obama):
  S. 1352. A bill to designate the facility of the United States Postal 
Service located at 127 East Locust Street in Fairbury, Illinois, as the 
``Dr. Francis Townsend Post Office Building''; to the Committee on 
Homeland Security and Governmental Affairs.
  Mr. DURBIN. Mr. President, today I am pleased to introduce 
legislation to designate the U.S. Post Office at 127 East Locust Street 
in Fairbury, IL, as the ``Dr. Francis Townsend Post Office Building.'' 
I am grateful to Senator Barack Obama, Mayor Robert Walter, Jr. and the 
Fairbury City Council for their support of this legislation.
  This legislation honors Dr. Francis Townsend, the creator of the 
Townsend old-age revolving pension plan, and his hometown of Fairbury, 
IL, a town which will celebrate its sesquicentennial anniversary this 
June.
  Dr. Francis E. Townsend, the son of a farmer, was born in January 
1867. He became a physician and served in the Army Medical Corps during 
World War I. Following his retirement from medicine, Dr. Townsend 
developed an old-age pension plan for seniors during the Depression. 
The Townsend Plan created a Federal pension of $200 a month paid to 
every citizen age 60 and older, on the condition that the pensioner 
spend the entire sum within 30 days of receipt, in order to stimulate 
the economy.
  Dr. Townsend advocated tirelessly around the country on behalf of his 
plan and encouraged 25 million Americans to sign petitions to the White 
House and to Congress demanding that the Federal Government institute a 
revolving old-age pension fund. It is likely that Townsend's efforts 
expedited passage of President Franklin D. Roosevelt's Social Security 
Act, a major New Deal initiative. The Social Security Act included 
matching payments from the Federal Government, known as Old Age 
Assistance, and a national old-age annuity program. Though the 
initiative fell short of Dr. Townsend's vision, he continued to press 
for increased benefits to the elderly. Dr. Townsend's persistence 
helped to sustain the movement for increased elder benefits.
  Dr. Francis Townsend, an innovator and social activist, was a pivotal 
figure in the antipoverty movement and became the leader of a social 
movement. I am pleased to introduce this legislation to permanently and 
publicly recognize Dr. Townsend by naming this post office in Fairbury 
in his honor. Given Dr. Townsend's dedication to his community and his 
commitment towards the improvement of society, the renaming of this 
post office would be a most appropriate way for us to express our 
appreciation to Dr. Townsend and to celebrate his contributions to our 
Nation's pension programs.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1352

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

     SECTION 1. DR. FRANCIS TOWNSEND POST OFFICE BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 127 East Locust Street in Fairbury, 
     Illinois, shall be known and designated as the ``Dr. Francis 
     Townsend Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the ``Dr. Francis Townsend Post Office 
     Building''.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Brownback):
  S. 1353. A bill to nullify the determinations of the Copyright 
Royalty Judges with respect to webcasting, to modify the basis for 
making such a determination, and for other purposes; to the Committee 
on the Judiciary.
  Mr. WYDEN. Mr. President, today, I come back to the floor to 
introduce legislation to keep the Internet free of discrimination. For 
over a decade, people have tried to get their grubby hands all over the 
Internet and I have sprung into action to stop them. I have fought hard 
to prevent discrimination in the taxation of Internet commerce. I have 
fought hard to prevent discrimination on the content and applications 
layer of the Internet. Now, I am back here one more time, to prevent 
discriminatory treatment against Internet radio companies and consumers 
of their product in how copyright royalties are collected.
  Make no bones about it, the recent decision on copyright royalty fees 
by the Copyright Royalty Board is discrimination. The fees that 
webcasters will have to pay will discriminate in favor of traditional 
radio broadcasting and satellite radio broadcasting, which pay a much 
lower percentage of their revenues in royalties.
  The decision of the Copyright Royalty Board would increase royalties 
on webcasters to levels between 300 and 1200 percent of their current 
royalty fees. For most webcasters, the royalties will exceed their 
gross revenues. There are not many people who are going to stay in 
business long when their costs exceed their revenues. This is certainly 
the case for webcasters. That is why I am introducing the Internet 
Radio Equality Act today.
  The Bipartisan Internet Radio Equality Act, that I am introducing 
today with my friend from Kansas, Senator Brownback, will prevent this 
discrimination. It does so by invalidating the decision of the 
Copyright Royalty Board and instead puts Internet radio on par with 
Satellite Radio, jukeboxes, and cable radio. Additionally, it has 
special protections in place for noncommercial webcasters, like 
National Public Radio and college radio, to ensure that they can take 
advantage of webcasting as well.
  Unfortunately, time is of the essence in saving Internet radio. On 
July 15, if Congress does not intervene, collection of these new 
royalty fees will begin. It is no coincidence that on the same day, if 
Congress does not intervene, that hundreds of thousands of Internet 
radio stations will be turned off for good. It is imperative that we 
act within the next 2 months to prevent this from happening.
  I want to thank my friend from Kansas, Senator Brownback, for joining 
me in introducing this important legislation. I look forward to working 
with him and Congressman Inslee, my friend from Washington, who has 
introduced companion legislation in the House, to get the job done.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

[[Page 11987]]

  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1353

       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 ``Internet Radio Equality Act 
     of 2007''.

     SEC. 2. NULLIFICATION OF DECISION OF COPYRIGHT ROYALTY 
                   JUDGES.

       The March 2, 2007, Determination of Rates and Terms of the 
     United States Copyright Royalty Judges regarding rates and 
     terms for the digital performance of sound recordings and 
     ephemeral recordings, including that determination as 
     modified by the April 17, 2007, Order Denying Motions for 
     Rehearing and any subsequent modification to that 
     determination by the Copyright Royalty Judges that is 
     published in the Federal Register and the April 23, 2007, 
     Final Determination of Rates and Terms of the United States 
     Copyright Royalty Judges regarding rates and terms for the 
     digital performance of sound recordings and ephemeral 
     recordings and any subsequent modification to that 
     determination by the Copyright Royalty Judges that is 
     published in the Federal Register, are not effective, and 
     shall be deemed never to have been effective.

     SEC. 3. COMPUTATION OF ROYALTY FEES FOR COMMERCIAL INTERNET 
                   RADIO SERVICES OFFERING DIGITAL PERFORMANCES OF 
                   SOUND RECORDINGS.

       (a) Standard for Determining Rates and Terms.--Section 
     114(f)(2)(B) of title 17, United States Code, is amended by 
     striking ``Such rates and terms shall distinguish'' and all 
     that follows through the end of clause (ii) and inserting the 
     following: ``The Copyright Royalty Judges shall establish 
     rates and terms in accordance with the objectives set forth 
     in section 801(b)(1). Such rates and terms may include a 
     minimum annual royalty of not more than $500 for each 
     provider of services that are subject to such rates and 
     terms, which shall be the only minimum royalty fee and shall 
     be assessed only once annually to that provider.''.
       (b) Transition Rule.--Except for services covered by 
     section 118 of title 17, United States Code, each provider of 
     digital audio transmissions that otherwise would have been 
     subject to the rates and terms of the determination of the 
     Copyright Royalty Judges made ineffective by section 2 of 
     this Act shall instead pay royalties for each year of the 5-
     year period beginning on January 1, 2006, at 1 of the 
     following rates, as selected by the provider for that year:
       (1) 0.33 cents per hour of sound recordings transmitted to 
     a single listener.
       (2) 7.5 percent of the revenues received by the provider 
     during that year that are directly related to the provider's 
     digital transmissions of sound recordings.

     SEC. 4. COMPUTATION OF ROYALTY FEES FOR NONCOMMERCIAL 
                   STATIONS OFFERING DIGITAL PERFORMANCES OF SOUND 
                   RECORDINGS.

       (a) Amendments to Section 118 of Title 17, United States 
     Code.--Section 118 of title 17, United States Code, is 
     amended--
       (1) in subsection (b), in the matter preceding paragraph 
     (1), by striking ``and published pictorial'' and inserting 
     ``, sound recordings, and published pictorial'';
       (2) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``and published pictorial'' and inserting ``, sound 
     recordings, and published pictorial''; and
       (B) in paragraph (1), by inserting ``or nonprofit 
     institution or organization'' after ``broadcast station''; 
     and
       (3) in subsection (f), by striking ``paragraph (2)'' and 
     inserting ``paragraph (1) or (2)''.
       (b) Transition Rules.--
       (1) In general.--Except as provided under paragraph (2), 
     for each calendar year (or portion thereof) beginning after 
     December 31, 2004, until an applicable voluntary license 
     agreement is filed with the Copyright Royalty Judges under 
     section 118 of title 17, United States Code (as amended by 
     subsection (a) of this section), or an applicable 
     determination is issued by the Copyright Royalty Judges under 
     section 118 of such title (as so amended) --
       (A) except as provided under subparagraphs (B) and (C), the 
     annual royalty that a public broadcast entity shall pay to 
     owners of copyrights in sound recordings for the uses 
     provided under section 118(c) of such title (as so amended) 
     shall be an amount equal to 1.05 times the amount paid by 
     that entity (or in the case of a group of related entities, 
     the fees paid by such group) under section 114(f)(2) of title 
     17, United States Code, for such uses during the calendar 
     year ending December 31, 2004;
       (B) the annual royalty that a public broadcasting entity 
     that is a noncommercial webcaster and did not owe royalties 
     under section 114(f)(2) of title 17, United States Code, 
     during the calendar year ending December 31, 2004, shall pay 
     to owners of copyrights in sound recordings for the uses 
     provided under section 118(c) of such title (as so amended) 
     shall be the amount that would have been owed under the 
     agreement entered into under section 114(f)(5) of that title 
     for such uses applicable to noncommercial webcasters as in 
     effect during calendar year 2004; and
       (C) the annual royalty that public broadcasting entities 
     constituting National Public Radio, Inc., its member stations 
     and public radio stations qualified to receive funding from 
     the Corporation for Public Broadcasting, shall collectively 
     pay to owners of copyrights in sound recordings for the uses 
     provided under section 118(c) of such title (as so amended) 
     shall be an amount equal to 1.05 times the amount paid on the 
     behalf of these entities under section 114(f)(2) of title 17, 
     United States Code, for such uses during the calendar year 
     ending December 31, 2004.
       (2) Limitation.--No entity shall be required under 
     paragraph (1)(A) or (B) to pay more than $5,000 for any 
     calendar year.

     SEC. 5. CREDIT OF ROYALTY FEES.

       Any royalties received under the March 2, 2007, 
     Determination of Rates and Terms of the United States 
     Copyright Royalty Judges regarding rates and terms for the 
     digital performance of sound recordings and ephemeral 
     recordings, including that determination as modified by the 
     April 17, 2007, Order Denying Motions for Rehearing and any 
     subsequent modification to that determination by the 
     Copyright Royalty Judges that is published in the Federal 
     Register and the April 23, 2007, Final Determination of Rates 
     and Terms of the United States Copyright Royalty Judges 
     regarding rates and terms for the digital performance of 
     sound recordings and ephemeral recordings and any subsequent 
     modification to that determination by the Copyright Royalty 
     Judges that is published in the Federal Register shall be 
     credited against royalties required to be paid under section 
     3 or 4 of this Act.
                                 ______
                                 
      By Mr. MARTINEZ (for himself, Mr. Bingaman, Mr. Nelson of 
        Florida, Mrs. Hutchison, Mrs. Feinstein, Mrs. Dole, and Mr. 
        Domenici):
  S. 1355. A bill to amend the Internal Revenue Code of 1986 to treat 
spaceports like airports under the exempt facility bond rules; to the 
Committee on Finance.
  Mr. MARTINEZ. Mr. President, today I rise with my colleagues, 
Senators Bingaman, Nelson of Florida, Hutchison, Domenici, Feinstein, 
and Dole, to introduce the Spaceport Equality Act of 2007, a bill to 
help bring additional investment to the space transportation industry.
  Last summer, Kazakhstan launched its first satellite, catapulting 
them into the space transportation industry. Also joining the race for 
space launch capacity are Singapore, Australia, Canada, and the United 
Arab Emirates, with seven new commercial spaceports proposed between 
the four countries. With new entrants being added to the space 
transportation marketplace, is the U.S. falling behind in the race for 
access to space?
  The U.S. once dominated the commercial satellilte-manufacturing field 
with an average market share of 83 percent; however, that market share 
has since declined to below 50 percent. The U.S. satellite industry 
faces increasing pressure to consider the use of foreign launch 
vehicles and launch sites, due to the lack of sufficient domestic 
launch capability. An even smaller share of U.S. manufactured 
satellites is actually launched from U.S. spaceports.
  This past year, only 2 of the 21 commercial launches worldwide were 
launched from locations in the United States, that is less than 10 
percent of the market share. This comes at a loss of billions of 
dollars to the U.S. economy.
  These are just some of the many reasons why my colleagues and I are 
introducing the Spaceport Equality Act.
  The space economy is made up of manufacturers, service providers, and 
technologists in both the government and private sector that deploy and 
operate launch vehicles, satellites, and space platforms. Many everyday 
goods and services rely on space infrastructure, including: broadcast, 
cable, and satellite television; global Internet services; satellite 
radio; and cellular and international phone calls.
  Satellites are also used global positioning systems, known as GPS, 
which enables us to have hands-on directions in our cars and other 
vehicles. GPS is also influential in the trucking, aviation, and 
maritime industries for day-to-day operations, and for our Nation's 
military operations. Thousands of gas stations use inexpensive small 
satellite dishes to connect to credit card networks so customers can 
pay instantly at the pump. Satellites also generate 90 percent of the 
weather forecasting data

[[Page 11988]]

in the U.S., and are used to track hurricanes, tsunamis, and other 
weather phenomenon.
  These satellites are launched vertically atop of rockets, propelling 
them into orbit in space. Because most U.S. space-launch facilities are 
operated by NASA and the Air Force, priority for launches at these 
facilities is given to government projects. This means our commercial 
satellite needs take a backseat to Government operations. This often 
leaves U.S. commercial satellite ventures without reliable launch 
availability.
  This in turn has forced many companies seeking manufacturing and 
launch services toward our international competitors.
  Commercial spaceports are subdivisions of State governments that 
provide additional launch infrastructure than that which is available 
at Federal facilities. They attract and promote the U.S. commercial 
space transportation industry. Spaceport authorities function much like 
airport and port authorities by providing economic and transportation 
incentives to the industry, which in turn benefits the surrounding 
communities. Many States are forming space authorities to pursue ways 
of developing space transportation infrastructure.
  The Florida Space Authority, now known as ``Space Florida,'' was the 
first such entity, and was created as a subdivision of the Florida 
State Government by Florida's Governor and State legislature in 1989. 
Space Florida focuses on expanding and strengthening my state's space 
industry through partnering with the commercial space industry to 
improve space transportation and to provide innovative, forward-
thinking solutions to the challenges facing this evolving industry.
  The last few years have begun a new phase in space exploration. 
Spaceports presently operate in Florida, California, Virginia, and 
Alaska, and efforts are currently underway in New Mexico and Oklahoma 
to establish spaceports for the new emerging space tourism industry. 
Still additional commercial spaceports have been considered in the 
following states: Alabama, California, Montana, Nevada, Oklahoma, South 
Dakota, Texas, Utah, Washington, and Wisconsin.
  The commercial space transportation industry includes not only 
spaceports themselves, but also companies that develop the needed 
infrastructure for testing and servicing launch vehicles. When 
including these industry partners with spaceports, at least 23 States 
are directly affected by the commercial space transportation industry. 
Both spaceports and industry partners face increasing pressure from 
Government sponsored or subsidized competitors in various countries 
across Europe, and also in China, Japan, India, and Russia. And soon 
they will face new competitors in Australia, Canada, Singapore, and the 
United Arab Emirates.
  Commercial space transportation is a growing part of the U.S. 
economy. In 2004, this industry alone generated a total of nearly $98.1 
billion in economic activity, more than $25 billion in earnings, and 
over 550,000 jobs. The Federal Aviation Administration, FAA, recently 
issued a report on 2006 launch activities, in that report, it was noted 
that in 2006, U.S. launches generated approximately $140 million in 
revenues.
  A 2004 Gallup poll shows overwhelming public support for space 
exploration. Roughly 80 percent of Americans agree that ``America's 
space program helps give America the scientific and technological edge 
it needs to compete in the international marketplace.'' and 76 percent 
agree that our space program ``benefits the nation's economy'' and 
inspires ``students to pursue careers in technical fields.''
  The space industry has also led to a number of ``spin-off'' 
technologies, those influenced by space technology research and 
development.
  Home roof insulation and air filtration, anti-lock brakes, athletic 
shoes, vehicle protective airbags, cellular phones, and Lasik surgery 
all owe their development to space-based research and technology. The 
list of space ``spin-off'' technologies is estimated to exceed 40,000. 
These related technologies have helped employ tens of millions of 
Americans. Encouraging commercial investment in the space industry and 
increasing U.S. market share in this industry will certainly lead to 
additional innovation and technology that will positively influence 
other fields.
  As you can see, this once Government-dominated industry is now 
becoming a diverse mix of Government and commercial entities, also 
leading the way into future avenues of commercial space transportation, 
such as space tourism.
  The increase in recent commercial launches includes the debut of the 
first commercial crewed suborbital launches of SpaceShipOne, the 
beginnings of public space travel. ``Space tourism,'' as public space 
travel is now referred to, has the potential to become a major growth 
industry. Recent market studies have shown that, within 20 years, space 
tourism has the potential to become a multibillion-dollar industry.
  Even though the average American may not be able to participate in 
public space travel, its potential impact on our economy and 
international competitiveness is something to be appreciated. Space 
tourism industry players expect there to be a market demand of at least 
15,000 Americans per year to travel into suborbit and orbital flights. 
This would require an estimated 665 launches per year by 2010.
  If the U.S. continues as is, we will only be able to capture a 10-
percent market share, at best, of this emerging industry. If needed 
infrastructure is added, however, the U.S. could potentially pick up 60 
to 70 percent of space flight demand by 2010. Every launch that we do 
not provide for in the U.S. means a loss to our economy, and a gain for 
our international competitors. The Federal Aviation Administration's 
Commercial Space Transportation division expects a $3 billion dollar 
loss to our economy if we do not meet the rising demand for space 
tourism.
  Currently, U.S. launch facilities are few and most are owned and 
operated by the Federal Government, putting commercial users in direct 
competition with the U.S. military, NASA, and other Government entities 
that, as I mentioned earlier, receive priority over commercial 
projects.
  Recently, the U.S. Air Force provided license to Space Exploration 
Technologies, known as SpaceX, to utilize one of the decommissioned 
launch complexes at Cape Canaveral Air Force Station for its commercial 
launch ventures.
  The utilization of existing Federal resources by commercial ventures 
will open up opportunity for further commercial launches, but this 
alone will not afford America the resources it needs to remain 
competitive internationally. If the U.S. is to remain competitive in 
the commercial space industry, added and improved infrastructure will 
be needed to support this growing industry.
  On a more local note, my own State of Florida could stand to gain 
much by way of economic development from increased investment in 
Spaceport infrastructure.
  According to recent studies, increased spaceport infrastructure and 
activity in Florida could mean as much as $29.7 million in additional 
economic activity by the year 2015, this does not include the economic 
activity generated from increased tourism, secondary contracts, and 
spin-off technologies.
  Other modes of transportation, highways, airports, and seaports, 
currently enjoy a tax incentive for meeting their infrastructure needs, 
so why not spaceports? Perhaps this policy made sense in the past, when 
space did not have the enormous potential for commercial growth that it 
now does. Our ability to utilize space is more apparent than ever 
before; we need to acknowledge this emerging reality.
  This Spaceport Equality Act of 2007 would provide spaceports with the 
same tax incentives granted to airports, seaports, rail, and other 
transit projects under the exempt facility bond rules. With 
international competition on the rise, our Nation's spaceports are a 
vital component of the infrastructure needed to expand and enhance the 
U.S. role in the international space arena.

[[Page 11989]]

The Spaceport Equality Act is an important step to increasing our 
competitiveness in this field, because it will stimulate investment in 
expanding and modernizing our space launch facilities and lower the 
costs of financing spaceport projects.
  Since 1968, tax-exempt bonds have played a crucial role in meeting 
airport investment needs, with 50 percent or more of major airport 
projects being financed through municipal tax-exempt bonds. By 
extending this favorable tax treatment to spaceports, this bill will 
help meet spaceport needs and increase our Nation's ability to compete 
with expanded international interests in space exploration and 
technology. Similar legislation has been considered since the 1980s, 
and we cannot afford to wait any longer to address the needs of this 
important sector.
  This proposal does not provide direct Federal spending to our 
commercial space transportation industry, but rather, it creates the 
conditions necessary to stimulate private capital investment in 
industry infrastructure. By issuing tax-free bonds to finance spaceport 
infrastructure, space authorities could provide site-specific and 
vehicle-specific tailoring to promote the competition and innovation 
necessary to maintain the U.S. competitive edge in the space 
transportation industry.
  This is an efficient means for achieving our space transportation 
needs, and I urge my colleagues in the Senate to join us in this most 
important effort by cosponsoring this bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1355

       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 ``Spaceport Equality Act of 
     2007''.

     SEC. 2. SPACEPORTS TREATED LIKE AIRPORTS UNDER EXEMPT 
                   FACILITY BOND RULES.

       (a) In General.--Paragraph (1) of section 142(a) of the 
     Internal Revenue Code of 1986 (relating to exempt facility 
     bonds) is amended to read as follows:
       ``(1) airports and spaceports,''.
       (b) Treatment of Ground Leases.--Paragraph (1) of section 
     142(b) of the Internal Revenue Code of 1986 (relating to 
     certain facilities must be governmentally owned) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Special rule for spaceport ground leases.--For 
     purposes of subparagraph (A), spaceport property which is 
     located on land owned by the United States and which is used 
     by a governmental unit pursuant to a lease (as defined in 
     section 168(h)(7)) from the United States shall be treated as 
     owned by such unit if--
       ``(i) the lease term (within the meaning of section 
     168(i)(3)) is at least 15 years, and
       ``(ii) such unit would be treated as owning such property 
     if such lease term were equal to the useful life of such 
     property.''.
       (c) Definition of Spaceport.--Section 142 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(n) Spaceport.--
       ``(1) In general.--For purposes of subsection (a)(1), the 
     term `spaceport' means--
       ``(A) any facility directly related and essential to 
     servicing spacecraft, enabling spacecraft to launch or 
     reenter, or transferring passengers or space cargo to or from 
     spacecraft, but only if such facility is located at, or in 
     close proximity to, the launch site or reentry site, and
       ``(B) any other functionally related and subordinate 
     facility at or adjacent to the launch site or reentry site at 
     which launch services or reentry services are provided, 
     including a launch control center, repair shop, maintenance 
     or overhaul facility, and rocket assembly facility.
       ``(2) Additional terms.--For purposes of paragraph (1)--
       ``(A) Space cargo.--The term `space cargo' includes 
     satellites, scientific experiments, other property 
     transported into space, and any other type of payload, 
     whether or not such property returns from space.
       ``(B) Spacecraft.--The term `spacecraft' means a launch 
     vehicle or a reentry vehicle.
       ``(C) Other terms.--The terms `launch', `launch site', 
     `launch services', `launch vehicle', `payload', `reenter', 
     `reentry services', `reentry site', and `reentry vehicle' 
     shall have the respective meanings given to such terms by 
     section 70102 of title 49, United States Code (as in effect 
     on the date of enactment of this subsection).''.
       (d) Exception From Federally Guaranteed Bond Prohibition.--
     Paragraph (3) of section 149(b) of the Internal Revenue Code 
     of 1986 (relating to exceptions) is amended by adding at the 
     end the following new subparagraph:
       ``(E) Exception for spaceports.--Paragraph (1) shall not 
     apply to any exempt facility bond issued as part of an issue 
     described in paragraph (1) of section 142(a) to provide a 
     spaceport in situations where--
       ``(i) the guarantee of the United States (or an agency or 
     instrumentality thereof) is the result of payment of rent, 
     user fees, or other charges by the United States (or any 
     agency or instrumentality thereof), and
       ``(ii) the payment of the rent, user fees, or other charges 
     is for, and conditioned upon, the use of the spaceport by the 
     United States (or any agency or instrumentality thereof).''.
       (e) Conforming Amendment.--The heading for section 142(c) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     ``Spaceports,'' after ``Airports,''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Johnson):
  S. 1358. A bill to amend the Clean Air Act to require all gasoline 
sold for use in motor vehicles to contain 10 percent renewable fuel in 
the year 2010 and thereafter, and for other purposes; to the Committee 
on Environment and Public Works.
  Mr. GRASSLEY. Mr. President, I am introducing legislation today along 
with Senator Johnson that will take a bold step in reducing our 
dependence on fossil fuel and foreign oil. It is the 10 by 10 Act.
  The 10 by 10 Act will require that 10 percent of each gallon of motor 
fuel sold beginning January 1, 2010, contain at least 10 percent 
renewable fuel. The 10 by 10 Act is a signal that Congress remains 
interested and adamant in seeking energy independence by promoting the 
development of renewable fuels in the United States.
  Because the U.S. imports more than 60 percent of the crude oil we 
need, we have become dangerously reliant on foreign sources of energy. 
It is a threat to our national security for the United States to be 
dependent upon countries like Iran and Venezuela for our energy needs. 
It's also a threat to our economic security to be dependent on foreign 
countries for the energy that drives our economy.
  It is up to our farmers and ranchers to help liberate our consumers 
and our economy from the stranglehold of OPEC and other foreign 
countries on our energy needs. I am here to say to America's 
agriculture community that we are serious and we are going to do 
something about it.
  This legislation will demonstrate to consumers, in a common sense 
way, that each and every gallon of gasoline will contain at least 10 
percent of domestically produced renewable fuel. It'll show that we're 
serious about reducing our dependence on foreign oil, and it will show 
in a tangible way that we're working to reduce that dependence.
  The 10 by 10 Act is a commitment to our constituents that we're 
working to lower that dependence, and reduce our consumption of foreign 
oil in every gallon of fuel they pump. With this legislation, Americans 
would know with certainty that 10 percent of each gallon of motor fuel 
was home-grown by farmers and ranchers right here in America.
  Today, ethanol, a renewable fuel produced primarily from corn, is 
blended in nearly 50 percent of the gasoline sold in the United States. 
There are currently 116 biorefineries producing nearly 6 billion 
gallons of ethanol annually. By the end of 2009, it is projected that 
we will have the capacity to produce over twelve billion gallons 
annually.
  It is important for consumers to recognize that for the vast majority 
of cars on the road today, no modifications are necessary to operate on 
a 10-percent renewable fuel blend. No significant changes are required 
to the fuel distribution network to allow for a 10-percent blend. The 
only thing standing in the way of reduced dependence on foreign oil is 
a signal from Congress that we recognize the virtue of home-grown 
alternatives to foreign oil.
  With this legislation, we would ensure the use of approximately 14 
billion gallons of renewable fuels in our Nation's automobiles. The 
ethanol use would be distributed around the country in each gallon of 
gasoline. In this

[[Page 11990]]

way, we will ensure the use of the fuel even if an extensive E-85 
market is not yet in place. This effort could very well be a stepping 
stone if it's determined that ethanol could be blended in higher 
ratios, such as 15 or 20 percent. By blending in each gallon of 
gasoline, we ensure the benefits of homegrown, renewable fuels reach 
all consumers without the immediate need for additional fueling 
infrastructure or alternative fuel vehicles.
  We owe it to the American people to pursue aggressive policies to 
free our country from our foreign oil dependence. I hope my colleagues 
will join me in this effort to replace 10 percent of each gallon of 
gasoline with homegrown, environmentally friendly, renewable fuel.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1358

       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 ``10 by 10 Act''.

     SEC. 2. 10 PERCENT RENEWABLE FUEL REQUIRED FOR MOTOR 
                   VEHICLES.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
     amended--
       (1) by inserting after subsection (o) the following:
       ``(p) 10 Percent Renewable Fuel Requirement.--
       ``(1) In general.--After December 31, 2009, it shall be 
     unlawful for any person to sell or offer for sale, supply or 
     offer for supply, dispense, transport, or introduce into 
     commerce, for use in any motor vehicle (as defined in section 
     216) any gasoline containing less than 10 percent renewable 
     fuel by volume.
       ``(2) Fuel blends.--For the purpose of enforcing this 
     subsection, a blend of gasoline and renewable fuel shall be 
     considered to be sold or offered for sale, supplied or 
     offered for supply, dispensed, transported, or introduced 
     into commerce in accordance with this subsection if the 
     renewable fuel content, exclusive of denaturants and 
     permitted contaminants, comprises not less than 9.2 percent 
     by volume and not more than 10 percent by volume of the 
     blend, as determined by the Administrator.
       ``(3) Manifests and labeling.--By regulation effective 
     January 1, 2010, the Administrator shall require that each 
     bill of lading or transportation manifest for all gasoline 
     containing renewable fuel and all gasoline not containing 
     renewable fuel indicate the renewable fuel content of the 
     gasoline.
       ``(4) Notices on gasoline pumps; exemption for collector 
     vehicles.--The Administrator shall provide, by regulation, 
     for--
       ``(A) appropriate notices to be displayed on gasoline 
     pumps--
       ``(i) indicating the renewable fuel content of the gasoline 
     dispensed by the pump; and
       ``(ii) notifying the public of the prohibition under this 
     subsection; and
       ``(B) an exemption from the requirements of this subsection 
     in the case of gasoline for use in collector motor vehicles, 
     as defined by the Administrator.''; and
       (2) by redesignating the second subsection (r) (as added by 
     section 1512 of the Energy Policy Act of 2005 (Public Law 
     109-58; 119 Stat. 1088)) as subsection (t) and moving the 
     subsection so as to appear at the end of the section.
                                 ______
                                 
      By Mr. DURBIN:
  S. 1362. A bill to establish a Strategic Gasoline and Fuel Reserve; 
to the Committee on Energy and Natural Resources.
  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. 1362

       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 ``Strategic Gasoline and Fuel 
     Reserve Act of 2007''.

     SEC. 2. STRATEGIC GASOLINE AND FUEL RESERVE.

       (a) In General.--Title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 et seq.) is amended--
       (1) by redesignating part E (42 U.S.C. 6251 et seq.) as 
     part F;
       (2) by redesignating section 191 (42 U.S.C. 6251) as 
     section 199; and
       (3) by inserting after part D (42 U.S.C. 6250 et seq.) the 
     following:

             ``PART E--STRATEGIC GASOLINE AND FUEL RESERVE

     ``SEC. 191. DEFINITIONS.

       ``In this part:
       ``(1) Gasoline.--The term `gasoline' means regular unleaded 
     gasoline.
       ``(2) Reserve.--The term `Reserve' means the Strategic 
     Gasoline and Fuel Reserve established under section 192(a).

     ``SEC. 192. ESTABLISHMENT.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary shall establish, maintain, and 
     operate a Strategic Gasoline and Fuel Reserve.
       ``(b) Not Component of Strategic Petroleum Reserve.--The 
     Reserve is not a component of the Strategic Petroleum Reserve 
     established under part B.
       ``(c) Capacity.--The Reserve shall contain not more than--
       ``(1) 50,000,000 barrels of gasoline; and
       ``(2) 7,500,000 barrels of jet fuel.
       ``(3) 21,000,000 barrels of diesel fuel.
       ``(d) Reserve Sites.--
       ``(1) Siting.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall determine not less 
     than 3 Reserve sites, and not more than 5 Reserve sites, 
     throughout the United States that are regionally strategic.
       ``(2) Operation.--The Reserve sites described in paragraph 
     (1) shall be operational not later than 2 years after the 
     date of enactment of this Act.
       ``(e) Security.--In establishing the Reserve under this 
     section, the Secretary shall obtain the concurrence of the 
     Secretary of Homeland Security with respect to physical 
     design security and operational security.
       ``(f) Authority.--In carrying out this part, the Secretary 
     may--
       ``(1) purchase, contract for, lease, or otherwise acquire, 
     in whole or in part, storage and related facilities and 
     storage services;
       ``(2) use, lease, maintain, sell, or otherwise dispose of 
     storage and related facilities acquired under this part;
       ``(3) acquire by purchase, exchange, lease, or other means 
     gasoline and fuel for storage in the Reserve;
       ``(4) store gasoline and fuel in facilities not owned by 
     the United States; and
       ``(5) sell, exchange, or otherwise dispose of gasoline and 
     fuel from the Reserve, including to maintain--
       ``(A) the quality or quantity of the gasoline or fuel in 
     the Reserve; or
       ``(B) the operational capacity of the Reserve.
       ``(g) Fill Date.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall complete the process of filling the Reserve 
     under this section by March 1, 2008.
       ``(2) Extensions.--The President may extend the deadline 
     established under paragraph (1) if--
       ``(A) the President determines that filling the Reserve 
     within that deadline would cause an undue economic burden on 
     the United States; and
       ``(B) the President receives approval from Congress.

     ``SEC. 193. RELEASE OF GASOLINE AND FUEL.

       ``(a) In General.--The Secretary shall release gasoline or 
     fuel from the Reserve only if--
       ``(1) the President finds that there is a severe fuel 
     supply disruption by finding that--
       ``(A) a regional or national supply shortage of gasoline or 
     fuel of significant scope and duration has occurred;
       ``(B) a substantial increase in the price of gasoline or 
     fuel has resulted from the shortage;
       ``(C) the price increase is likely to cause a significant 
     adverse impact on the national economy; and
       ``(D) releasing gasoline or fuel from the Reserve would 
     assist directly and significantly in reducing the adverse 
     impact of the shortage; or
       ``(2)(A) the Governor of a State submits to the Secretary a 
     written request for a release from the Reserve that contains 
     a finding that--
       ``(i) a regional or statewide supply shortage of gasoline 
     or fuel of significant scope and duration has occurred;
       ``(ii) a substantial increase in the price of gasoline or 
     fuel has resulted from the shortage; and
       ``(iii) the price increase is likely to cause a significant 
     adverse impact on the economy of the State; and
       ``(B) the Secretary concurs with the findings of the 
     Governor under subparagraph (A) and determines that--
       ``(i) a release from the Reserve would mitigate gasoline or 
     fuel price volatility in the State;
       ``(ii) a release from the Reserve would not have an adverse 
     effect on the long-term economic viability of retail gasoline 
     or fuel markets in the State and adjacent States; and
       ``(iii) a release from the Reserve would not suppress 
     prices below long-term market trend levels.
       ``(b) Procedure.--
       ``(1) Response of secretary.--The Secretary shall respond 
     to a request submitted under subsection (a)(2) not later than 
     5 days after receipt of the request by--
       ``(A) approving the request;
       ``(B) denying the request; or
       ``(C) requesting additional supporting information.
       ``(2) Release.--The Secretary shall establish procedures 
     governing the release of gasoline or fuel from the Reserve in 
     accordance with this subsection.

[[Page 11991]]

       ``(3) Requirements.--
       ``(A) Eligible entity.--In this paragraph, the term 
     `eligible entity' means an entity that is customarily engaged 
     in the sale or distribution of gasoline or fuel.
       ``(B) Sale or disposal from reserve.--The procedures 
     established under this subsection shall provide that the 
     Secretary may--
       ``(i) sell gasoline or fuel from the Reserve to an eligible 
     entity through a competitive process; or
       ``(ii) enter into an exchange agreement with an eligible 
     entity under which the Secretary receives a greater volume of 
     gasoline or fuel as repayment from the eligible entity than 
     the volume provided to the eligible entity.
       ``(c) Continuing Evaluation.--The Secretary shall conduct a 
     continuing evaluation of the drawdown and sales procedures 
     established under this section.

     ``SEC. 194. REPORTS.

       ``(a) Gasoline and Fuel.--Not later than 45 days after the 
     date of enactment of this section, the Secretary shall submit 
     to Congress and the President a plan describing--
       ``(1) the acquisition of storage and related facilities or 
     storage services for the Reserve, including the use of 
     storage facilities not currently in use or not currently used 
     to capacity;
       ``(2) the acquisition of gasoline and fuel for storage in 
     the Reserve;
       ``(3) the anticipated methods of disposition of gasoline 
     and fuel from the Reserve;
       ``(4) the estimated costs of establishment, maintenance, 
     and operation of the Reserve;
       ``(5) efforts that the Department will take to minimize any 
     potential need for future drawdowns from the Reserve; and
       ``(6) actions to ensure the quality of the gasoline and 
     fuel in the Reserve are maintained.
       ``(b) Natural Gas and Diesel.--Not later than 90 days after 
     the date of enactment of this section, the Secretary shall 
     submit to Congress a report describing the feasibility of 
     creating a natural gas and diesel reserve similar to the 
     Reserve under this part.

     ``SEC. 195. STRATEGIC GASOLINE AND FUEL RESERVE FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States a revolving fund, to be known as the 
     `Strategic Gasoline and Fuel Reserve Fund' (referred to in 
     this section as the `Fund'), consisting of--
       ``(1) such amounts as are appropriated to the Fund under 
     subsection (b);
       ``(2) such amounts as are appropriated to the Fund under 
     section 196; and
       ``(3) any interest earned on investment of amounts in the 
     Fund under subsection (d).
       ``(b) Transfers to Fund.--There are appropriated to the 
     Fund amounts equivalent to amounts collected as receipts and 
     received in the Treasury from the sale, exchange, or other 
     disposition of gasoline or fuel from the Reserve.
       ``(c) Expenditures From Fund.--On request by the Secretary 
     and without the need for further appropriation, the Secretary 
     of the Treasury shall transfer from the Fund to the Secretary 
     such amounts as the Secretary determines are necessary to 
     carry out activities under this part, to remain available 
     until expended.
       ``(d) Investment of Amounts.--
       ``(1) In general.--The Secretary of the Treasury shall 
     invest such portion of the Fund as is not, in the judgment of 
     the Secretary of the Treasury, required to meet current 
     withdrawals.
       ``(2) Interest-bearing obligations.--Investments may be 
     made only in interest-bearing obligations of the United 
     States.
       ``(3) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       ``(A) on original issue at the issue price; or
       ``(B) by purchase of outstanding obligations at the market 
     price.
       ``(4) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       ``(5) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       ``(e) Transfers of Amounts.--
       ``(1) In general.--The amounts required to be transferred 
     to the Fund under this section shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       ``(2) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.

     ``SEC. 196. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this part, to remain available until 
     expended.''.

     SEC. 3. CONFORMING AMENDMENTS.

       The table of contents for title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 note) is amended by striking 
     the matter relating to part D and inserting the following:

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast home heating oil reserve account.
``Sec. 185. Exemptions.
``Sec. 186. Authorization of appropriations.

             ``Part E--Strategic Gasoline and Fuel Reserve

``Sec. 191. Definitions.
``Sec. 192. Establishment.
``Sec. 193. Release of gasoline and fuel.
``Sec. 194. Reports.
``Sec. 195. Strategic Gasoline and Fuel Reserve Fund.
``Sec. 196. Authorization of appropriations.

                          ``Part F--Expiration

``Sec. 199. Expiration.''.

                                 ______
                                 
      By Mrs. CLINTON (for herself and Mr. Durbin):
  S. 1363. A bill to improve health care for severely injured members 
and former members of the Armed Forces, and for other purposes; to the 
Committee on Armed Services.
  Mrs. CLINTON. Mr. President, today, I am introducing the Bridging the 
Gap for Wounded Warriors Act to provide comprehensive solutions to 
problems that have arisen from military bureaucracy's failure to meet 
the medical needs of this generation's wounded warriors as they 
transition from the Armed Services to civilian life.
  This is a moment of profound challenge for our country, for our 
military, and for our men and women in uniform. And while there are 
often strong disagreements here in Washington, I hope we can unite 
around our common values and patriotism when it comes to how we treat 
our servicemembers and veterans.
  If you serve your country your country should serve you. That is the 
promise our country must keep to the men and women who enlist, who 
fight, and who return home often bearing the visible and invisible 
scars of sacrifice. Sadly, too often in the past several years, that 
promise has been broken: whether it's a lack of up-armored vehicles on 
the ground in Iraq or a lack of appropriate care in outpatient 
facilities at Walter Reed.
  Last year, I authored and passed into law the Heroes at Home 
initiative to assist returning servicemembers experiencing the complex, 
diffuse, and life-altering symptoms of traumatic brain injury and other 
mental health difficulties.
  This past March, I followed up with the introduction of the Heroes at 
Home Act of 2007, S. 1065, the Restoring Disability Benefits for 
Injured and Wounded Warriors Act of 2007, S. 1064, and the Protecting 
Military Family Financial Benefits Act of 2007, S. 1063, to serve our 
servicemembers and send a message: you will be treated as heroes before 
deployment, during deployment, and upon returning home. You didn't 
offer excuses and do not deserve to be offered excuses by your country.
  Finally, Senator Evan Bayh and I introduced the Traumatic Brain 
Injury Access to Options Act, S. 1113, in order to provide a temporary 
and immediate solution to the discrepancy in health care services and 
benefits encountered by TBI patients.
  However, a broader and permanent solution is needed to assist all 
members and former members of the Armed Services who have incurred any 
type of combat-related injury. The mistreatment of servicemembers at 
Walter Reed and testimony from recent hearings in both the Senate Armed 
Services and Veterans Affairs Committees have revealed major gaps 
affecting servicemembers, including discrepancies in benefits for 
active duty and medically retired servicemembers; difficulties in 
obtaining needed care for wounded servicemembers transitioning from the 
Armed Services to civilian life; and disparities between the DoD and VA 
disability rating systems.
  Although the military, more often than not, offers quality health 
care services, wounded servicemembers often encounter barriers to 
receiving the optimal health benefit. The two major barriers are: (1) a 
confusing array of benefits; and (2) discrepancies between benefits for 
those on active duty versus those who are medically retired.
  Recent events at Walter Reed have highlighted the longstanding need 
to

[[Page 11992]]

overhaul the DoD and VA disability rating systems, which are 
unnecessarily complex and result in delays in payment that hinder 
efforts of wounded servicemembers to support themselves and their 
families. On March 6, 2007, the Chief of Staff of the Army General 
Peter Schoomaker and then-Army Surgeon General Lieutenant General Kevin 
C. Kiley testified before the Senate Armed Services Committee that 
soldiers appearing before the Physical Evaluation Board were ``short-
changed'' and had not received appropriate disability benefits. 
According to the Congressional Research Service, since the enactment of 
the Traumatic Servicemembers Group Life Insurance program at least 45 
percent of claims have been denied. In March 2006 the Comptroller 
General issued GAO Report 06-362: Military Disability System: Improved 
Oversight Needed to Ensure Consistent and Timely Outcomes for Reserve 
and Active Duty Service Members--the Department of Defense did not heed 
the recommendations provided in this report and as a result injured and 
wounded warriors continue to languish in an inefficient and adversarial 
disability system. We must stop short-changing our wounded warriors.
  Finally, a blanket overlap of benefits and disability rating reform 
are necessary but not sufficient for addressing the needs of those who 
are wounded. In order to support an all-volunteer force and meet the 
needs of this generation's wounded warriors, it is critical to achieve 
efficient DoD and VA collaboration and coordination of assistance to 
members of the Armed Forces in their transition from Active Duty to 
civilian life. Thus, the duties of the existent VA Office of Seamless 
Transition must be terminated and transferred to a new organizational 
structure that will achieve the long-sought goals of seamless 
transition between the DoD and VA and improved coordination between 
these agencies.
  That's why I am introducing the Bridging the Gap for Wounded Warriors 
Act today, to ensure a continuum of care for severely injured 
servicemembers and fix the problems that stymie the transition process. 
I am grateful to have developed this proposal with the Wounded Warrior 
Project, the National Military Family Association, and the Military 
Officers Association of America.
  We should provide our wounded warriors with the best care options 
available. This legislation would establish a 2 year blanket overlap of 
active duty and veterans health services and benefits for severely 
injured service
members to facilitate their recovery and help resolve administrative 
problems like those found at Walter Reed. All costs of health care, for 
both active duty and medically retired servicemembers, will be paid for 
by the DoD. The provisions of this section shall take effect for those 
injured on or after October 7, 2001, but eligibility shall not include 
retroactive compensation for payments already made.
  We should also create a joint DoD-VA Office of Transition for the 
coordination of assistance to members of the Armed Forces in their 
transition from service in the Armed Forces to civilian life. The 
Office of Transition would absorb the duties of the existent VA Office 
of Seamless Transition as well as the functions and responsibilities of 
applicable offices within the Office of the Secretary of Defense, OSD. 
Leadership of the Office of Transition would consist of a Director and 
Deputy Director, who would both have seats on the Joint Executive 
Committee, JEC. The Secretaries of DoD and VA would have oversight of 
the Office of Transition, although the office would also be required to 
submit mandatory annual reports and biannual briefings to Congress. The 
GAO would also submit a biennial report on the Office of Transition's 
activities, in order to ensure that the Office's progress is not being 
stymied by the DoD or VA.
  Further, we should reform the current disability rating system to 
ensure that there is continuity of medical care and no disruption in 
compensation payments made to wounded service
members. My legislation would change the roles of the agencies, so that 
DoD would no longer assign the actual disability rating but would still 
determine fitness for duty and document such a decision in writing, 
while VA would assign final ratings for all service-connected injuries. 
Further, the legislation would repeal the provision in the Omnibus 
Reconciliation Act of 1982 that requires the delay in payment of VA 
benefits until the first day of the second month after they are 
entitled. This provision would eliminate the gap in payments and allow 
servicemembers to continue to support themselves and their families.
  Finally, we should do what we can to ensure that both DoD and VA 
medical facilities have the appropriate trained professionals to deal 
with the range of injuries that our wounded servicemembers now incur, 
including traumatic brain injury, burns, amputations, vision problems, 
spinal cord injuries, and broken and fractured bones. In order to move 
in that direction, my legislation would require the GAO to submit a 
preliminary assessment and final report on the extent to which medical 
facilities of the DoD and VA offer interdisciplinary medical treatment 
for wounded members of the Armed Forces.
  Let us all join together in accepting our responsibility as a nation 
to those who serve and resolve to achieve efficient DoD and VA 
collaboration and coordination that is critical for supporting an all-
volunteer force and meeting the needs of this generation's wounded 
warriors.
  I ask unanimous consent letters of support for this legislation be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                 Military Officers


                                       Association of America,

                                      Alexandria, VA, May 9, 2007.
     Hon. Hillary Clinton,
     U.S. Senate,
     Washington, DC.
       Dear Senator Clinton: On behalf of the 362,000 members of 
     the Military Officers Association of America (MOAA), I am 
     writing to express MOAA's appreciation for your leadership in 
     sponsoring the Bridging the Gap for Wounded Warriors Act. 
     This piece of legislation will ensure a continuum of care for 
     all the severely injured servicemembers from OIF and OEF.
       The bill's three elements address the most significant 
     problems that currently stymie transition for our 
     servicemembers between DoD and VA programs. The two-blanket 
     overlap of health services addresses their health care 
     concerns. The transition office would institutionalize a 
     joint team of permanent DoD and VA personnel working together 
     to develop and implement solutions to long-standing, 
     unresolved transition issues. Finally, your bill would reform 
     the disability rating system to ensure fair and consistent 
     long-term compensation and benefits for wounded 
     servicemembers.
       We are proud of and grateful for the sacrifices our 
     military members and their families are willing to make for 
     our country. The extreme sacrifices of the wounded have 
     earned and deserve our special attention, which your bill 
     would deliver. We look forward to working closely with you in 
     seeking timely enactment of this legislation in the 110th 
     Congress.
           Sincerely,
                                                        Norb Ryan,
     President.
                                  ____

                                                 National Military


                                     Family Association, Inc.,

                                      Alexandria, VA, May 9, 2007.
     Hon. Hillary Rodham Clinton,
     U.S. Senate,
     Washington DC.
       Dear Senator Clinton: The National Military Family 
     Association (NMFA) is the only national organization whose 
     sole focus is the military family and whose goal is to 
     influence the development and implementation of policies that 
     will improve the lives of the families of the Army, Navy, Air 
     Force, Marine Corps, Coast Guard, and the Commissioned Corps 
     of the Public Health Service and the National Oceanic and 
     Atmospheric Administration. For more than 35 years, its staff 
     and volunteers, comprised mostly of military members, have 
     built a reputation for being the leading experts on military 
     family issues. On behalf of NMFA and the families it serves, 
     we commend your sponsorship of the Bridging the Gap for 
     Wounded Warriors Act.
       NMFA thanks you for recognizing the problems wounded 
     service members face as they recover from their injuries. In 
     addition to the family stress and the often-lengthy recovery 
     process in multiple medical facilities, wounded service 
     members must also navigate a complex maze through two 
     distinct disability benefit processes, that of the Department 
     of Defense (DoD) and the Department of Veterans' Affairs 
     (VA). NMFA believes this legislation acknowledges the need

[[Page 11993]]

     for more coordination between the DoD and VA to create a 
     truly seamless transition for these service members and ease 
     the care burden on their families. NMFA endorses this 
     legislation as a first step in addressing the need for a 
     standardized approach to the DoD Medical Evaluation Board 
     (MEB), and Physical Evaluation Board (PEB) plus determination 
     for VA Disability Compensation. The legislation would also 
     respond to the need for wounded service members to receive 
     consistent quality care in both health care systems and for 
     the establishment of a ``joint office'' to address these 
     concerns.
       Thank you for your support of military service members and 
     veterans diagnosed with TBI, and the families who care for 
     them. If you have any questions you may contact Barbara 
     Cohoon in our Government Relations department.
           Sincerely,
                                                Tanna K. Schmidli,
     Chairman, Board of Governors.
                                  ____



                                      Wounded Warrior Project,

                                        New York, NY, May 9, 2007.
     Hon. Hillary Rodham Clinton,
     U.S. Senate,
     Washington, DC.
       Dear Senator Clinton: The Wounded Warrior Project (WWP) 
     strongly supports your legislation entitled the Bridging the 
     Gap for our Wounded Warriors Act. As a result of WWP's 
     direct, daily contact with the severely injured and their 
     families, we have identified three consistent issues causing 
     confusion and frustration among those most in need of 
     assistance. A discrepancy in benefits between the Departments 
     of Defense and Veterans Affairs, confusion during the actual 
     transition process, and the inconsistent and redundant 
     disability ratings system are all problems cited by the 
     wounded as obstacles they face as they attempt to recover. 
     The comprehensive provisions included in your bill will 
     address many of these issues and provide access to the care 
     and compensation our nation's heroes need as they continue in 
     their recovery.
       The first provision would establish a two-year overlap of 
     active duty and veterans benefits and services for severely 
     injured servicemembers. By removing the artificial barrier 
     between active duty service and veterans status, the bill 
     would allow those who are injured to enjoy the differing 
     benefits and health care services offered by each agency 
     regardless of their duty status.
       The second provision would establish a joint DoD-VA Office 
     of Transition to improve assistance from the two agencies as 
     members of the Armed Forces move from the Department of 
     Defense to the Department of Veterans Affairs. While there 
     are currently many entities within each agency charged with 
     assisting transitioning servicemembers, the creation of a 
     joint office with oversight over these programs and policies 
     will ensure a more coordinated effort on behalf of our 
     wounded servicemembers.
       Finally, the legislation would reform the current 
     disability ratings system to ensure consistency and fairness 
     in the ratings while providing immediate compensation for 
     those leaving the service.
       These provisions will go far towards insuring the long term 
     health and well-being of wounded service members. Again, WWP 
     thanks you for your leadership on these issues, and we stand 
     committed to assisting you in seeing this legislation through 
     to passage and enactment.
           Sincerely,
                                                    Meredith Beck,
                                         National Policy Director.
                                 ______
                                 
      By Mr. DURBIN:
  S. 1364. A bill to amend titles XIX and XXI of the Social Security 
Act to extend the State Children's Health Insurance Program (SCHIPS) 
and stremline enrollment under SCHIP and Medicaid, and for other 
purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, over 25 years ago, a member of the Select 
Panel for the Promotion of Child Health said in a statement to 
Congress, ``Children are one-third of our population and all of our 
future.'' We must protect the health and welfare of our nation's 
children if we are to secure the future of our country. This year we 
have a tremendous opportunity to ensure that security. With the 
reauthorization of the State Children's Health Insurance Program, 
SCHIP, we can improve the health and health care of our Nation's 
future, for the over 70 million children in America and, in particular, 
the 9 million children who have no health coverage.
  Since the creation of SCHIP 10 years ago, more than 6.2 million 
children have been covered by this vital program, including over 
290,000 children in Illinois. As the first State to provide coverage 
for all children, Illinois has been a leader in the movement to change 
the course of health care in this country. Since 1993, SCHIP, its 
relationship to Medicaid, and the flexibility that this administration 
has permitted the programs to have, have made it possible for Illinois 
to provide health care to the more than 313,000 children who did not 
have access to it before.
  Nearly 1 million Illinois families have at least one uninsured family 
member, and the face of the uninsured is changing. The uninsured are 
not only the mother and daughter living in downtown Chicago. The 
uninsured includes the family who runs a small business in the suburbs, 
the family farm in central Illinois, and the single father working at a 
factory downstate.
  The majority of kids without health care coverage come from working 
families, families like Mr. and Mrs. Buss and their three young sons. 
Lisa Buss and her husband own a small home inspection company. They 
paid over $9,000 last year alone on regular medical care, without any 
catastrophic events or emergencies. That's a lot of money for a family 
living in the suburbs of Chicago. There is also the Hickey family of 
Godfrey, Illinois. After an unfortunate accident, their son broke a 
couple of bones in his hand. Without insurance, they were hesitant to 
see the specialist at the suggestion of the emergency room physicians, 
but for the health of their son, they did so. For a 5 minute visit, 
they paid close to $1,000. Mr. Hickey works in the construction trade 
and work had been slow. Susan is a teacher for the Alton School 
District. They were given no financial assistance except to be offered 
a payment plan. Now, the Hickeys have to find a way to pay for their 
house payment and their utilities, rising gas prices, and this medical 
treatment.
  The unnecessary burden and anxiety caused by health care is an 
unfortunate reality for too many, and children often bear the brunt of 
this hardship. Kids should not have to wait until their fever is 103 
degrees to see a doctor. Kids should be able to obtain glasses when 
they are straining to see the chalkboard. Kids should be able to obtain 
antibiotics when that ``cold'' just won't go away. Our parents should 
not have to worry about whether they can afford to take their son to a 
bone specialist.
  As is often the case, States are leading the way with children's 
health coverage initiatives. In 2005, my State of Illinois was the 
first State to ensure health care coverage for all children. Since 
then, many States have taken on the challenge of expanding health care 
coverage. The State of the States 2007 report by AcademyHealth 
indicates that more than a dozen States have enacted innovative 
policies to expand coverage. These range from comprehensive health care 
reform in States such as Massachusetts, Vermont, and Maine; to public-
private partnerships in States such as Arkansas, Montana, New Mexico, 
Oklahoma, Rhode Island, Tennessee, and Utah; to initiatives to cover 
all children in Illinois and Pennsylvania.
  Democratic and Republican governors alike are exploring ways to reach 
the uninsured, proving that children's health and health care coverage 
are American issues, not partisan issues. One important way to insure 
more children is through a strong reauthorization of SCHIP.
  Today, with the introduction of the Healthy Kids Act, I propose SCHIP 
reauthorization legislation that builds on the progress made in these 
States. First, the bill provides States with more funding to enroll 
children who are eligible but not enrolled in SCHIP. These kids account 
for more than half of all uninsured children.
  Second, the Healthy Kids Act will eliminate obvious barriers to 
coverage and simplify enrollment procedures. For example, seven States 
have reported declines in Medicaid enrollments because of new 
citizenship requirements. Approximately 65 percent of internists report 
serving patients with Limited English Proficiency; for children living 
in these families, making language assistance services available is a 
critical precursor to quality care. My bill proposes options for States 
to reach the neediest children through SCHIP by reducing some of these 
barriers. For example, the bill provides for funds for language 
assistance services.

[[Page 11994]]

  Third, the bill also supports the establishment of medical homes, a 
network of providers for children that helps prevent them from falling 
through the cracks. The bill puts forth an effort to create pediatric 
quality and performance measures. The Healthy Kids Act also establishes 
a disease prevention and treatment demonstration project for ethnic and 
racial minority children, using research that specifically examines 
disparities in minority children enrolled in Medicaid/SCHIP. We can 
reduce health disparities and improve health outcomes for this 
population.
  Finally, the bill creates a commission to study children's health 
coverage. The Commission on Children's Health Coverage will develop 
policy recommendations and track the program's overall performance. 
Feedback and analysis of SCHIP's performance is critical to improving 
the program in the future.
  SCHIP has been an unparalleled success and a model for health 
insurance coverage that both Democrats and Republicans can be proud of. 
Ensuring health care coverage for children in need is a priority for 
both sides of the aisle. The reauthorization of SCHIP is a rare 
opportunity for the Federal Government to expand its support for 
policies in States like Illinois and others. Let's take a step forward 
and work to provide basic health insurance for all children. Healthy 
children grow into healthy adults, in turn, these individuals are 
happier and spend less money on health care in the long run. The SCHIP 
program is critical for our Nation's health and economic future.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1364

       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 ``Healthy 
     Kids Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--EXTENSION OF SCHIP

Sec. 101. Extension of SCHIP program; increase in allotments to take 
              into account growth in child population and health care 
              costs.
Sec. 102. 2-year initial availability of SCHIP allotments.
Sec. 103. Redistribution of unused allotments to address State funding 
              shortfalls.

    TITLE II--STATE OPTIONS FOR INCREASING COVERAGE OF CHILDREN AND 
                PREGNANT WOMEN UNDER MEDICAID AND SCHIP

Sec. 201. Bonus payments for States that implement administrative 
              policies to streamline enrollment process.
Sec. 202. State option to provide for ``express lane'' and simplified 
              determinations of a child's financial eligibility for 
              medical assistance under Medicaid or child health 
              assistance under SCHIP.
Sec. 203. Information technology connections to improve health coverage 
              determinations.
Sec. 204. State option to expand or add coverage of certain pregnant 
              women under Medicaid and SCHIP.
Sec. 205. Optional coverage of legal immigrants under Medicaid and 
              SCHIP.
Sec. 206. Authorizing adjustment of SCHIP allotment due to increased 
              outreach.
Sec. 207. Model of Interstate coordinated enrollment and coverage 
              process.
Sec. 208. Authority for qualifying States to use portion of SCHIP 
              allotment for any fiscal year for certain Medicaid 
              expenditures.
Sec. 209. Application of Medicaid outreach procedures to all pregnant 
              women and children.
Sec. 210. No impact on section 1115 waivers.
Sec. 211. Elimination of counting Medicaid child presumptive 
              eligibility costs against title XXI allotment.
Sec. 212. Prohibiting limitations on enrollment.

         TITLE III--ELIMINATION OF CERTAIN BARRIERS TO COVERAGE

Sec. 301. State option to require certain individuals to present 
              satisfactory documentary evidence of proof of citizenship 
              or nationality for purposes of eligibility for Medicaid.
Sec. 302. Increased Federal matching rate for language services 
              provided under Medicaid or SCHIP.

 TITLE IV--GRANTS TO PROMOTE INNOVATIVE OUTREACH AND ENROLLMENT UNDER 
                           MEDICAID AND SCHIP

Sec. 401. Grants to promote innovative outreach and enrollment under 
              Medicaid and SCHIP.

            TITLE V--IMPROVING THE QUALITY OF PEDIATRIC CARE

Sec. 501. Requiring coverage of EPSDT services, including dental 
              services, State option to provide supplemental coverage 
              of dental services.
Sec. 502. Pediatric quality and performance measures program.
Sec. 503. Grants to States for demonstration projects transforming 
              delivery of pediatric care.
Sec. 504. Report by the comptroller general on design and 
              implementation of a demonstration project evaluating 
              existing quality and performance measures for children's 
              inpatient hospital services.
Sec. 505. Medical home demonstration project.
Sec. 506. Disease prevention and treatment demonstration projects for 
              ethnic and racial minority children.

           TITLE VI--COMMISSION ON CHILDREN'S HEALTH COVERAGE

Sec. 601. Commission on Children's Health Coverage.

                      TITLE I--EXTENSION OF SCHIP

     SEC. 101. EXTENSION OF SCHIP PROGRAM; INCREASE IN ALLOTMENTS 
                   TO TAKE INTO ACCOUNT GROWTH IN CHILD POPULATION 
                   AND HEALTH CARE COSTS.

       (a) In General.--Section 2104 of the Social Security Act 
     (42 U.S.C. 1397dd) is amended--
       (1) in subsection (a)--
       (A) by striking ``and'' at the end of paragraph (9);
       (B) by striking the period at the end of paragraph (10) and 
     inserting ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(11) for each fiscal year 2008 and each subsequent fiscal 
     year, $7,500,000,000 multiplied by the population and cost 
     inflation factor for that fiscal year, as determined under 
     subsection (i).''; and
       (2) by adding at the end the following new subsection:
       ``(i) Population and Cost Inflation Factor.--For purposes 
     of subsection (a)(11), the population and cost inflation 
     factor for a fiscal year is equal to the product of the 
     following:
       ``(1) Child population growth factor.--One plus the 
     percentage increase in the population of children under 20 
     years of age in the United States from July 1, 2007, to July 
     1 during the fiscal year involved, as projected by the 
     Secretary based on the most recent published estimates of the 
     Bureau of the Census before the beginning of the fiscal year 
     involved.
       ``(2) Per capita health care growth factor.--One plus the 
     percentage increase in the projected per capita amount of 
     National Health Expenditures from fiscal year 2007 to the 
     fiscal year involved, as most recently published by the 
     Secretary before the beginning of the fiscal year 
     involved.''.
       (b) Additional Allotments to Territories.--Section 
     2104(c)(4)(B) of such Act (42 U.S.C. 1397dd(c)(4)(B)) is 
     amended by striking ``and $40,000,000 for fiscal year 2007'' 
     and inserting ``$40,000,000 for fiscal year 2007, and for 
     each of fiscal years 2008 through 2017, the amount 
     appropriated under this subparagraph for the preceding fiscal 
     year increased by the population and cost inflation factor 
     for that fiscal year, as determined under subsection (i)''.

     SEC. 102. 2-YEAR INITIAL AVAILABILITY OF SCHIP ALLOTMENTS.

       Section 2104(e) of the Social Security Act (42 U.S.C. 
     1397dd(e)) is amended to read as follows:
       ``(e) Availability of Amounts Allotted.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), amounts allotted to a State pursuant to this section--
       ``(A) for each of fiscal years 1998 through 2007, shall 
     remain available for expenditure by the State through the end 
     of the second succeeding fiscal year; and
       ``(B) for fiscal year 2008 and each fiscal year thereafter, 
     shall remain available for expenditure by the State through 
     the end of the succeeding fiscal year.
       ``(2) Availability of amounts reallotted.--Subject to 
     paragraph (3), amounts reallotted to a State under subsection 
     (f) shall be available for expenditure by the State through 
     the end of the fiscal year in which they are reallotted.
       ``(3) Permanent availability of unused funds.--Reallotted 
     funds that are not used by the end of the fiscal year 
     described in paragraph (2) shall be subject to reallotment 
     under subsection (f) in subsequent fiscal

[[Page 11995]]

     years subject to such paragraph and shall remain available 
     for subsequent reallotment until expended.''.

     SEC. 103. REDISTRIBUTION OF UNUSED ALLOTMENTS TO ADDRESS 
                   STATE FUNDING SHORTFALLS.

       Section 2104(f) of the Social Security Act (42 U.S.C. 
     1397dd(f)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'';
       (2) by striking ``States that have fully expended the 
     amount of their allotments under this section'' and inserting 
     ``States that the Secretary determines with respect to the 
     fiscal year for which unused allotments are available for 
     redistribution under this subsection, are shortfall States 
     described in paragraph (2) for such fiscal year''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Shortfall states described.--
       ``(A) In general.--For purposes of paragraph (1), with 
     respect to a fiscal year, a shortfall State described in this 
     subparagraph is a State with a State child health plan 
     approved under this title for which the Secretary estimates 
     on the basis of the most recent data available to the 
     Secretary, that the projected expenditures under such plan 
     for the State for the fiscal year will exceed the sum of--
       ``(i) the amount of the State's allotments for any 
     preceding fiscal years that remain available for expenditure 
     and that will not be expended by the end of the immediately 
     preceding fiscal year; and
       ``(ii) the amount of the State's allotment for the fiscal 
     year (taking into account any increase made in such allotment 
     under section 2104(j), as added by section 205(a) of the 
     Healthy Kids Act of 2007).
       ``(B) Proration rule.--If the amounts available for 
     redistribution under paragraph (1) for a fiscal year are less 
     than the total amounts of the estimated shortfalls determined 
     for the year under subparagraph (A), the amount to be 
     reallotted under such paragraph for each shortfall State 
     shall be reduced proportionally.
       ``(C) Retrospective adjustment.--The Secretary may adjust 
     the estimates and determinations made under paragraph (1) and 
     this paragraph with respect to a fiscal year as necessary on 
     the basis of the amounts reported by States not later than 
     November 30 of the succeeding fiscal year, as approved by the 
     Secretary.''.

    TITLE II--STATE OPTIONS FOR INCREASING COVERAGE OF CHILDREN AND 
                PREGNANT WOMEN UNDER MEDICAID AND SCHIP

     SEC. 201. BONUS PAYMENTS FOR STATES THAT IMPLEMENT 
                   ADMINISTRATIVE POLICIES TO STREAMLINE 
                   ENROLLMENT PROCESS.

       (a) Bonus in FMAP and Enhanced FMAP for Application of 
     Streamline Enrollment Procedures Under Medicaid and SCHIP.--
     Section 2102 of the Social Security Act (42 U.S.C. 1397bb) is 
     amended by adding at the end the following new subsection:
       ``(d) Streamline Enrollment Procedures.--
       ``(1) Increase in federal matching rate.--
       ``(A) In general.--In the case of a State that meets the 
     conditions described in subparagraph (B) (relating to 
     agreeing to implement administrative enrollment policies 
     under this title and title XIX) for a fiscal year, the 
     Federal medical assistance percentage (for purposes of title 
     XIX only) and the enhanced FMAP (for purposes of this title, 
     but determined without regard to the application of this 
     subsection to the Federal medical assistance percentage under 
     title XIX) otherwise computed for such fiscal year as applied 
     to medical assistance for children and child health 
     assistance, respectively, shall be increased by such number 
     of percentage points as the Secretary determines is necessary 
     to provide an incentive for the State to satisfy the 
     conditions described in subparagraph (B) (but not to exceed 
     such number of percentage points that would result in a 
     Federal medical assistance percentage or enhanced FMAP for 
     the State that would exceed 83 or 85 percent, respectively).
       ``(B) Agreeing to remove enrollment and access barriers.--
     The conditions described in this subparagraph, for a State 
     for a fiscal year are that the State agrees to do the 
     following:
       ``(i) Presumptive eligibility for children.--The State 
     agrees--

       ``(I) to provide presumptive eligibility for children under 
     this title and title XIX in accordance with section 1920A; 
     and
       ``(II) to treat any items or services that are provided to 
     an uncovered child (as defined in section 2110(c)(8)) who is 
     determined ineligible for medical assistance under title XIX 
     as child health assistance for purposes of paying a provider 
     of such items or services, so long as such items or services 
     would be considered child health assistance for a targeted 
     low-income child under this title.

       ``(ii) 12-month continuous eligibility.--The State agrees 
     to provide that eligibility of children for assistance under 
     this title and title XIX shall not be regularly redetermined 
     more often than once every year.
       ``(iii) Automatic renewal.--The State agrees to provide for 
     the automatic renewal of the eligibility of children for 
     assistance under this title and under title XIX if the 
     child's family does not report any changes to family income 
     or other relevant circumstances, subject to verification of 
     information from databases available to the State for such 
     purpose.
       ``(iv) Elimination of asset test.--The State has amended 
     its plans under this title and title XIX so that no asset or 
     resource test is applied for eligibility under this title or 
     title XIX with respect to children.
       ``(v) Administrative verification of income.--The State 
     agrees to permit the family of a child applying for child 
     health assistance under this title or medical assistance 
     under title XIX to declare and certify, by signature under 
     penalty of perjury, the family income for purposes of 
     collecting financial eligibility information.''.
       (b) Conforming Medicaid Amendments.--
       (1) In general.--Section 1905(b) of the Social Security Act 
     (42 U.S.C. 1396d(b)) is amended by inserting ``and section 
     2102(d)(1)'' after ``section 1933(d)''.
       (2) Increase in medicaid cap for territories.--Section 
     1108(g) of such Act (42 U.S.C. 1308(g)) is amended--
       (A) in paragraph (2), by striking ``paragraph (3)'' and 
     inserting ``paragraphs (3) and (4)''; and
       (B) by adding at the end the following new paragraph:
       ``(4) Disregard of increased expenditures directly 
     attributable to increase in fmap for application of 
     streamlined enrollment procedures.--The limitation of 
     paragraph (2) shall not apply to payment under title XIX to a 
     territory insofar as such payment is attributable to an 
     increase in the Federal medical assistance percentage under 
     subparagraph (A) of section 2102(d)(1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply beginning with fiscal year 2007.

     SEC. 202. STATE OPTION TO PROVIDE FOR ``EXPRESS LANE'' AND 
                   SIMPLIFIED DETERMINATIONS OF A CHILD'S 
                   FINANCIAL ELIGIBILITY FOR MEDICAL ASSISTANCE 
                   UNDER MEDICAID OR CHILD HEALTH ASSISTANCE UNDER 
                   SCHIP.

       (a) Medicaid.--Section 1902(e) of the Social Security Act 
     (42 U.S.C. 1396a(e)) is amended by adding at the end the 
     following:
       ``(13)(A) At the option of the State, the plan may provide 
     that eligibility requirements (including such requirements 
     applicable to redeterminations or renewals of eligibility) 
     for medical assistance relating to income, assets (or 
     resources), or citizenship status are met for a child who is 
     under an age specified by the State (not to exceed 21 years 
     of age) by using a determination made within a reasonable 
     period (as determined by the State) before its use for this 
     purpose, of the child's family or household income, or if 
     applicable for purposes of determining eligibility under this 
     title or title XXI, assets or resources, or citizenship 
     status, respectively, (notwithstanding any other provision of 
     law, including sections 1902(a)(46)(B), 1903(x), and 
     1137(d)), by a Federal or State agency, or a public or 
     private entity making such determination on behalf of such 
     agency, specified by the plan, including an agency 
     administering the State program funded under part A of title 
     IV, the Food Stamp Act of 1977, the Richard B. Russell 
     National School Lunch Act, or the Child Nutrition Act of 
     1966, notwithstanding any differences in budget unit, 
     disregard, deeming, or other methodology, but only if--
       ``(i) the agency has fiscal liabilities or responsibilities 
     affected by such determination; and
       ``(ii) the agency or entity notifies the child's family--
       ``(I) of the information which shall be disclosed in 
     accordance with this subparagraph;
       ``(II) that the information disclosed will be used solely 
     for purposes of determining eligibility for medical 
     assistance under this title or for child health assistance 
     under title XXI; and
       ``(III) that interagency agreements limit the use of such 
     information to that purpose; and
       ``(iii) the requirements of section 1939 are satisfied.
       ``(B) Nothing in this paragraph shall be construed to 
     relieve a State of the obligation to determine, on another 
     basis, eligibility for medical assistance under this title or 
     for child health assistance under title XXI if a child is 
     determined ineligible for such assistance on the basis of 
     information furnished pursuant to this paragraph.
       ``(C) If a State applies the eligibility process described 
     in subparagraph (A) to individuals eligible under this title 
     and to individuals eligible under title XXI, the State may, 
     at its option, implement its duties under subparagraphs (A) 
     and (B) of section 2102(b)(3) using either or both of the 
     following approaches:
       ``(i) The State may--
       ``(I) establish a threshold percentage of the Federal 
     poverty level (that shall exceed the income eligibility level 
     applicable for a population of individuals under this title 
     by 30 percentage points (as a fraction of the Federal poverty 
     level) or such other higher number of percentage points as 
     the State determines reflects the typical application of 
     income methodologies by the non-health program and the State 
     plan under this title); and
       ``(II) provide that, with respect to any individual within 
     such population whom a non-

[[Page 11996]]

     health agency determines has income that does not exceed such 
     threshold percentage for such population, such individual is 
     eligible for medical assistance under this title (regardless 
     of whether such individual would otherwise be determined to 
     be eligible to receive such assistance).

     In exercising the approach under this clause, a State shall 
     inform families whose children are enrolled in a State child 
     health plan under title XXI based on having family income 
     above the threshold described in subclause (I) that they may 
     qualify for medical assistance under this title and, at their 
     option, can seek a regular eligibility determination for such 
     assistance for their child.
       ``(ii) Regardless of whether a State otherwise provides for 
     presumptive eligibility under section 1920A, a State may 
     provide presumptive eligibility under this title, consistent 
     with subsection (e) of section 1920A, to a child who, based 
     on a determination by a non-health agency, would qualify for 
     child health assistance under a State child health plan under 
     title XXI. During such presumptive eligibility period, the 
     State may determine the child's eligibility for medical 
     assistance under this title, pursuant to subparagraph (A) of 
     section 2102(b)(3), based on telephone contact with family 
     members, access to data available in electronic or paper 
     form, and other means of gathering information that are less 
     burdensome to the family than completing an application form 
     on behalf of the child. The procedures described in the 
     previous sentence may be used regardless of whether the State 
     uses similar procedures under other circumstances for 
     purposes of determining eligibility for medical assistance 
     under this title.
       ``(D) At the option of a State, the eligibility process 
     described in subparagraph (A) may apply to an individual who 
     is not a child.
       ``(E)(i) At the option of a State, an individual determined 
     to be eligible for medical assistance or child health 
     assistance pursuant to subparagraph (A), (C), or (D) or other 
     procedures through which eligibility is determined based on 
     data obtained from sources other than the individual may 
     receive medical assistance under this title if such 
     individual (or, in the case of an individual under age 19 (or 
     if the State elects the option under subparagraph (A), age 20 
     or 21) who is not authorized to consent to medical care, the 
     individual's parent, guardian, or other caretaker relative) 
     has acknowledged notice of such determination and has 
     consented to such eligibility determination. The State (at 
     its option) may waive any otherwise applicable requirements 
     for signatures by or on behalf of an individual who has so 
     consented.
       ``(ii) In the case of an individual enrolled pursuant to 
     clause (i), the State shall inform the individual (or, in the 
     case of an individual under age 19 (or if the State elects 
     the option under subparagraph (A), age 20 or 21), the 
     individual's parent, guardian, or other caretaker relative) 
     about the significance of such enrollment, including 
     appropriate methods to access covered services.
       ``(F) For purposes of this paragraph--
       ``(i) the term `non-health agency' means an agency or 
     entity described in subparagraph (A); and
       ``(ii) the term `non-health benefits' means the benefits or 
     assistance provided by a non-health agency.''.
       (b) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C. 
     1397gg(e)(1)) is amended by redesignating subparagraphs (B) 
     through (E) as subparagraphs (C) through (F) and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) Section 1902(e)(13) (relating to the State option to 
     base a determination of a child's eligibility for assistance 
     on determinations made by a program providing nutrition or 
     other public assistance (except that the State option under 
     subparagraph (D) of such section shall apply under this title 
     only if an individual is pregnant)).''.
       (c) Presumptive Eligibility.--Section 1920A of such Act (42 
     U.S.C. 1396r-1a) is amended--
       (1) in subsection (b)(3)(A)(i), is amended by striking ``or 
     (IV)'' and inserting ``(IV) is an agency or entity described 
     in section 1902(e)(13)(A), or (V)''; and
       (2) by adding at the end the following:
       ``(e) In the case of a State with a child health plan under 
     title XXI that provides for presumptive eligibility under 
     such plan for children, the State shall make a reasonable 
     effort to place each presumptively eligible child in the 
     program under this title or title XXI for which the child 
     appears most likely to qualify. During the child's period of 
     presumptive eligibility, the State shall receive Federal 
     matching funds under section 1903 or section 2105, depending 
     on the program in which the child has been placed. If at the 
     conclusion of such period, the child is found to qualify for, 
     and is enrolled in, the program established under this title 
     or title XXI when the child was enrolled in the program under 
     the other such title during such period, the State's receipt 
     of Federal matching funds shall be adjusted both 
     retroactively and prospectively so that Federal matching 
     funds are provided, both during and following such period of 
     presumptive eligibility, based on the program in which the 
     child is enrolled.''.
       (d) Signature Requirements.--Section 1902(a) of such Act 
     (42 U.S.C. 1396a(a)) is amended by adding at the end the 
     following: ``Notwithstanding any other provision of law, a 
     signature under penalty of perjury shall not be required on 
     an application form for medical assistance as to any element 
     of eligibility for which eligibility is based on information 
     received from a source other than applicant, rather than on 
     representations from the applicant. Notwithstanding any other 
     provision of law, any signature requirement for an 
     application for medical assistance may be satisfied through 
     an electronic signature, as defined in section 1710(1) of the 
     Government Paperwork Elimination Act (44 U.S.C. 3504 
     note).''.

     SEC. 203. INFORMATION TECHNOLOGY CONNECTIONS TO IMPROVE 
                   HEALTH COVERAGE DETERMINATIONS.

       (a) Enhanced Federal Funding for Improvements Related to 
     Implementation of Certain Model Outreach and Enrollment 
     Practices.--
       (1) In general.--Section 1903(a)(3)(A) of the Social 
     Security Act (42 U.S.C. 1396b(a)(3)(A)) is amended--
       (A) by striking ``and'' at the end of clause (i); and
       (B) by adding at the end the following new clause:
       ``(iii) 75 percent of so much of the sums expended during 
     such quarter as are attributable to the design, development, 
     or installation of such mechanized claims processing and 
     information retrieval systems and the implementation of 
     administrative systems and processes (including modification 
     of eligibility computer systems to permit the exchange of 
     electronic information with other Federal or State programs) 
     as the Secretary determines are directly related to the 
     implementation of a model outreach and enrollment practice 
     described in subparagraph (B), (C), (D), (E), or (F) of 
     section 1905(y)(3), and''.
       (2) Conforming amendment to ensure availability for 
     territories.--Section 1108(g) of such Act (42 U.S.C. 
     1308(g)), as amended by section 201(b)(2)(B), is amended--
       (A) in paragraph (2), by striking ``and (4)'' and inserting 
     ``, (4), and (5)''; and
       (B) by adding at the end the following new paragraph:
       ``(5) Additional increase for certain expenditures.--With 
     respect to fiscal year 2008 and each fiscal year thereafter, 
     if Puerto Rico, the Virgin Islands, Guam, the Northern 
     Mariana Islands, or American Samoa qualify for a payment 
     under section 1903(a)(3)(A)(iii) for a calendar quarter of 
     such fiscal year, the additional Federal financial 
     participation under such section shall not be counted towards 
     the limitation on expenditures under title XIX for such 
     commonwealth or territory otherwise determined under 
     subsection (f) and this subsection for such fiscal year.''.
       (b) Authorization of Information Disclosure.--
       (1) In general.--Title XIX of such Act (42 U.S.C. 1396 et 
     seq.) is amended--
       (A) by redesignating section 1939 as section 1940; and
       (B) by inserting after section 1938 the following:


            ``AUTHORIZATION TO RECEIVE PERTINENT INFORMATION

       ``Sec. 1939.  (a) In General.--Notwithstanding any other 
     provision of law, a Federal or State agency or private entity 
     in possession of the sources of data potentially pertinent to 
     eligibility determinations under this title or title XXI 
     (including eligibility files maintained by programs described 
     in section 1902(e)(13)(A), information described in paragraph 
     (2) or (3) of section 1137(a), vital records information 
     about births in any State, and information described in 
     sections 453(i) and 1902(a)(25)(I)) is authorized to convey 
     such data or information to a State agency administering a 
     State plan under this title or title XXI, if--
       ``(1) such data or information are used only to establish 
     or verify eligibility or provide coverage under this title or 
     title XXI; and
       ``(2) an interagency or other agreement, consistent with 
     standards developed by the Secretary, prevents the 
     unauthorized use, disclosure, or modification of such data 
     and otherwise meets applicable Federal requirements 
     safeguarding privacy and data security.
       ``(b) Requirements for Conveyance.--Data or information may 
     be conveyed pursuant to this section only if the following 
     requirements are met:
       ``(1) The individual whose circumstances are described in 
     the data or information (or such individual's parent, 
     guardian, caretaker relative, or authorized representative) 
     has either provided advance consent to disclosure or has not 
     objected to disclosure after receiving advance notice of 
     disclosure and a reasonable opportunity to object.
       ``(2) Such data or information are used solely for the 
     purposes of--
       ``(A) identifying individuals who are eligible or 
     potentially eligible for assistance under this title or title 
     XXI and enrolling such individuals in the State plans 
     established under such titles; and
       ``(B) verifying the eligibility of individuals for 
     assistance under the State plans established under this title 
     or title XXI.
       ``(3) An interagency or other agreement, consistent with 
     standards developed by the Secretary--

[[Page 11997]]

       ``(A) prevents the unauthorized use, disclosure, or 
     modification of such data and otherwise meets applicable 
     Federal requirements safeguarding privacy and data security; 
     and
       ``(B) requires the State agencies administering the State 
     plans established under this title and title XXI to use the 
     data and information obtained under this section to seek to 
     enroll individuals in such plans.
       ``(c) Criminal Penalty.--A person described in the 
     subsection (a) who publishes, divulges, discloses, or makes 
     known in any manner, or to any extent not authorized by 
     Federal law, any information obtained under this section 
     shall be fined not more than $1,000 or imprisoned not more 
     than 1 year, or both for each such unauthorized activity.
       ``(d) Rule of Construction.--The limitations and 
     requirements that apply to disclosure pursuant to this 
     section shall not be construed to prohibit the conveyance or 
     disclosure of data or information otherwise permitted under 
     Federal law (without regard to this section).''.
       (2) Conforming amendment to assure access to national new 
     hires database.--Section 453(i)(1) of such Act (42 U.S.C. 
     653(i)(1)) is amended by striking ``and programs funded under 
     part A'' and inserting ``, programs funded under part A, and 
     State plans approved under title XIX or XXI''.
       (3) Conforming amendment to provide schip programs with 
     access to national income data.--Section 6103(l)(7)(D)(ii) of 
     the Internal Revenue Code of 1986 is amended by inserting 
     ``or title XXI'' after ``title XIX''.
       (4) Conforming amendment to provide access to data about 
     enrollment in insurance for purposes of evaluating 
     applications and for schip.--Section 1902(a)(25)(I)(i) of the 
     Social Security Act (42 U.S.C. 1396a(a)(25)(I)(i)) is 
     amended--
       (A) by inserting ``(and, at State option, individuals who 
     are potentially eligible or who apply)'' after ``with respect 
     to individuals who are eligible''; and
       (B) by inserting ``under this title (and, at State option, 
     child health assistance under title XXI)'' after ``the State 
     plan''.

     SEC. 204. STATE OPTION TO EXPAND OR ADD COVERAGE OF CERTAIN 
                   PREGNANT WOMEN UNDER MEDICAID AND SCHIP.

       (a) Medicaid.--
       (1) Authority to expand coverage.--Section 1902(l)(2)(A)(i) 
     of the Social Security Act (42 U.S.C. 1396a(l)(2)(A)(i)) is 
     amended by inserting ``(or such higher percentage as the 
     State may elect for purposes of expenditures for medical 
     assistance for pregnant women described in section 
     1905(u)(4)(A))'' after ``185 percent''.
       (2) Enhanced matching funds available if certain conditions 
     met.--Section 1905 of such Act (42 U.S.C. 1396d) is amended--
       (A) in the fourth sentence of subsection (b), by striking 
     ``or subsection (u)(3)'' and inserting ``, (u)(3), or 
     (u)(4)''; and
       (B) in subsection (u)--
       (i) by redesignating paragraph (4) as paragraph (5); and
       (ii) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) For purposes of the fourth sentence of subsection (b) 
     and section 2105(a), the expenditures described in this 
     paragraph are the following:
       ``(A) Certain pregnant women.--If the conditions described 
     in subparagraph (B) are met, expenditures for medical 
     assistance for pregnant women described in subsection (n) or 
     in section 1902(l)(1)(A) in a family the income of which 
     exceeds 185 percent of the poverty line, but does not exceed 
     the income eligibility level established under title XXI for 
     a targeted low-income child.
       ``(B) Conditions.--The conditions described in this 
     subparagraph are the following:
       ``(i) The State plans under this title and title XXI do not 
     provide coverage for pregnant women described in subparagraph 
     (A) with higher family income without covering such pregnant 
     women with a lower family income.
       ``(ii) The State does not apply an effective income level 
     for pregnant women that is lower than the effective income 
     level (expressed as a percent of the poverty line and 
     considering applicable income disregards) specified under the 
     State plan under subsection (a)(10)(A)(i)(III) or (l)(2)(A) 
     of section 1902, on the date of enactment of this paragraph 
     to be eligible for medical assistance as a pregnant woman.
       ``(C) Definition of poverty line.--In this subsection, the 
     term `poverty line' has the meaning given such term in 
     section 2110(c)(5).''.
       (3) Payment from title xxi allotment for medicaid expansion 
     costs.--Section 2105(a)(1) of such Act (42 U.S.C. 
     1397ee(a)(1)), as amended by section 211, is amended by 
     striking subparagraph (B) and inserting the following new 
     subparagraph:
       ``(B) for the portion of the payments made for expenditures 
     described in section 1905(u)(4)(A) that represents the 
     additional amount paid for such expenditures as a result of 
     the enhanced FMAP being substituted for the Federal medical 
     assistance percentage of such expenditures;''.
       (b) CHIP.--
       (1) Coverage.--Title XXI of such Act(42 U.S.C. 1397aa et 
     seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 2111. OPTIONAL COVERAGE OF TARGETED LOW-INCOME 
                   PREGNANT WOMEN.

       ``(a) Optional Coverage.--Notwithstanding any other 
     provision of this title, a State may provide for coverage, 
     through an amendment to its State child health plan under 
     section 2102, of pregnancy-related assistance for targeted 
     low-income pregnant women in accordance with this section, 
     but only if--
       ``(1) the State has established an income eligibility level 
     for pregnant women under subsection (a)(10)(A)(i)(III) or 
     (l)(2)(A) of section 1902 that is at least 185 percent of the 
     income official poverty line; and
       ``(2) the State meets the conditions described in section 
     1905(u)(4)(B).
       ``(b) Definitions.--For purposes of this title:
       ``(1) Pregnancy-related assistance.--The term `pregnancy-
     related assistance' has the meaning given the term `child 
     health assistance' in section 2110(a) as if any reference to 
     targeted low-income children were a reference to targeted 
     low-income pregnant women.
       ``(2) Targeted low-income pregnant woman.--The term 
     `targeted low-income pregnant woman' means a woman--
       ``(A) during pregnancy and through the end of the month in 
     which the 60-day period (beginning on the last day of her 
     pregnancy) ends;
       ``(B) whose family income exceeds the effective income 
     level (expressed as a percent of the poverty line and 
     considering applicable income disregards) specified under 
     subsection (a)(10)(A)(i)(III) or (l)(2)(A) of section 1902, 
     on January 1, 2008, to be eligible for medical assistance as 
     a pregnant woman under title XIX but does not exceed the 
     income eligibility level established under the State child 
     health plan under this title for a targeted low-income child; 
     and
       ``(C) who satisfies the requirements of paragraphs (1)(A), 
     (1)(C), (2), and (3) of section 2110(b) in the same manner as 
     a child applying for child health assistance would have to 
     satisfy such requirements.
       ``(c) References to Terms and Special Rules.--In the case 
     of, and with respect to, a State providing for coverage of 
     pregnancy-related assistance to targeted low-income pregnant 
     women under subsection (a), the following special rules 
     apply:
       ``(1) Any reference in this title (other than in subsection 
     (b)) to a targeted low-income child is deemed to include a 
     reference to a targeted low-income pregnant woman.
       ``(2) Any such reference to child health assistance with 
     respect to such women is deemed a reference to pregnancy-
     related assistance.
       ``(3) Any such reference to a child is deemed a reference 
     to a woman during pregnancy and the period described in 
     subsection (b)(2)(A).
       ``(4) In applying section 2102(b)(3)(B), any reference to 
     children found through screening to be eligible for medical 
     assistance under the State Medicaid plan under title XIX is 
     deemed a reference to pregnant women.
       ``(5) There shall be no exclusion of benefits for services 
     described in subsection (b)(1) based on any preexisting 
     condition and no waiting period (including any waiting period 
     imposed to carry out section 2102(b)(3)(C)) shall apply.
       ``(6) In applying section 2103(e)(3)(B) in the case of a 
     pregnant woman provided coverage under this section, the 
     limitation on total annual aggregate cost sharing shall be 
     applied to such pregnant woman.
       ``(7) The reference in section 2107(e)(1)(F) to section 
     1920A (relating to presumptive eligibility for children) is 
     deemed a reference to section 1920 (relating to presumptive 
     eligibility for pregnant women).
       ``(d) Automatic Enrollment for Children Born to Women 
     Receiving Pregnancy-Related Assistance.--If a child is born 
     to a targeted low-income pregnant woman who was receiving 
     pregnancy-related assistance under this section on the date 
     of the child's birth, the child shall be deemed to have 
     applied for child health assistance under the State child 
     health plan and to have been found eligible for such 
     assistance under such plan or to have applied for medical 
     assistance under title XIX and to have been found eligible 
     for such assistance under such title, as appropriate, on the 
     date of such birth and to remain eligible for such assistance 
     until the child attains 1 year of age. During the period in 
     which a child is deemed under the preceding sentence to be 
     eligible for child health or medical assistance, the child 
     health or medical assistance eligibility identification 
     number of the mother shall also serve as the identification 
     number of the child, and all claims shall be submitted and 
     paid under such number (unless the State issues a separate 
     identification number for the child before such period 
     expires).''.
       (2) Additional conforming amendments.--
       (A) No cost sharing for pregnancy-related benefits.--
     Section 2103(e)(2) (42 U.S.C. 1397cc(e)(2)) is amended--
       (i) in the heading, by inserting ``or pregnancy-related 
     services'' after ``preventive services''; and
       (ii) by inserting before the period at the end the 
     following: ``or for pregnancy-related services''.
       (B) No waiting period.--Section 2102(b)(1)(B) (42 U.S.C. 
     1397bb(b)(1)(B)) is amended--

[[Page 11998]]

       (i) in clause (i), by striking ``, and'' at the end and 
     inserting a semicolon;
       (ii) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following new clause:
       ``(iii) may not apply a waiting period (including a waiting 
     period to carry out paragraph (3)(C)) in the case of a 
     targeted low-income pregnant woman.''.
       (c) Other Amendments to Medicaid.--
       (1) Eligibility of a newborn.--Section 1902(e)(4) (42 
     U.S.C. 1396a(e)(4)) is amended in the first sentence by 
     striking ``so long as the child is a member of the woman's 
     household and the woman remains (or would remain if pregnant) 
     eligible for such assistance''.
       (2) Application of qualified entities to presumptive 
     eligibility for pregnant women under medicaid.--Section 
     1920(b) (42 U.S.C. 1396r-1(b)) is amended by adding after 
     paragraph (2) the following new flush sentence:
     ``The term `qualified provider' includes a qualified entity 
     as defined in section 1920A(b)(3).''.

     SEC. 205. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER 
                   MEDICAID AND SCHIP.

       (a) Medicaid Program.--Section 1903(v) of the Social 
     Security Act (42 U.S.C. 1396b(v)) is amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (4)''; and
       (2) by adding at the end the following new paragraph:
       ``(4)(A) A State may elect (in a plan amendment under this 
     title) to provide medical assistance under this title, 
     notwithstanding sections 401(a), 402(b), 403, and 421 of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996, for aliens who are lawfully residing in the 
     United States (including battered aliens described in section 
     431(c) of such Act) and who are otherwise eligible for such 
     assistance, within either or both of the following 
     eligibility categories:
       ``(i) Pregnant women.--Women during pregnancy (and during 
     the 60-day period beginning on the last day of the 
     pregnancy).
       ``(ii) Children.--Individuals under 21 years of age, 
     including optional targeted low-income children described in 
     section 1905(u)(2)(B).
       ``(B) In the case of a State that has elected to provide 
     medical assistance to a category of aliens under subparagraph 
     (A), no debt shall accrue under an affidavit of support 
     against any sponsor of such an alien on the basis of 
     provision of assistance to such category and the cost of such 
     assistance shall not be considered as an unreimbursed 
     cost.''.
       (b) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C. 
     1397gg(e)(1)), as amended by section 202(b), is amended by 
     redesignating subparagraphs (D) and (E) as subparagraph (E) 
     and (F), respectively, and by inserting after subparagraph 
     (C) the following new subparagraph:
       ``(D) Section 1903(v)(4) (relating to optional coverage of 
     categories of lawfully residing immigrant children), but only 
     if the State has elected to apply such section to the 
     category of children under title XIX.''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2007, and apply to medical 
     assistance and child health assistance furnished on or after 
     such date.
       (d) Construction.--Nothing in this section shall be 
     construed as affecting eligibility of aliens who are not 
     lawfully residing in the United States to benefits under the 
     Medicaid program under title XIX of the Social Security Act 
     or under the State children's health insurance program 
     (SCHIP) under title XXI of such Act.

     SEC. 206. AUTHORIZING ADJUSTMENT OF SCHIP ALLOTMENT DUE TO 
                   INCREASED OUTREACH.

       (a) In General.--Section 2104 of the Social Security Act 
     (42 U.S.C. 1397dd), as amended by section 101, is further 
     amended by adding at the end the following new subsection:
       ``(j) Authorizing Allotment Adjustment Due to Increased 
     Outreach.--
       ``(1) In general.--Notwithstanding the previous provisions 
     of this section, if the Secretary determines that--
       ``(A) a State has an increase in the average number of 
     children enrolled under its State child health plan in a 
     fiscal year that exceeds the enrollment of children projected 
     under paragraph (2) for the State for such fiscal year, and
       ``(B) the total Federal expenditures under the State child 
     health plan (or waiver) under this title exceeds the amount 
     of the allotment made available to the State for the fiscal 
     year,
     the Secretary shall increase the allotment under this section 
     for the State for the fiscal year by the amount specified in 
     paragraph (3). There are hereby appropriated, out of any 
     money in the Treasury not otherwise appropriated, such sums 
     as may be necessary to provide for such increase in 
     allotment.
       ``(2) Projected enrollment of children.--The projected 
     enrollment of children for a State under this paragraph for a 
     fiscal year is equal to the average number of children 
     enrolled under the State child health plan in fiscal year 
     2007 increased, for each subsequent fiscal year through the 
     fiscal year involved, by a factor equal to the population 
     growth of children in the State for such fiscal year, as 
     projected by the Secretary before the beginning of the fiscal 
     year involved.
       ``(3) Amount of allotment increase.--
       ``(A) In general.--Subject to subparagraph (B), the amount 
     of the allotment increase under this subsection for a State 
     for a fiscal year shall be an amount equal to the product 
     of--
       ``(i) the number by which the average number of children 
     enrolled under the State child health plan in the fiscal year 
     exceeds the enrollment of children projected under paragraph 
     (2) for such State for such fiscal year; and
       ``(ii) the per capita expenditures for children under the 
     State child health plan for the previous year, increased by 
     the average annual rate of increase (for the three previous 
     fiscal years) in the amount of such per capita expenditures.

     The amount of the allotment increase under this subsection 
     shall not be subject to administrative or judicial review.
       ``(B) Limitation.--
       ``(i) In general.--Subject to clause (ii), in no case shall 
     the sum of the allotment increases for all States under this 
     subsection for a fiscal year exceed an amount equal to 20 
     percent of the total Federal payments to all of the States 
     otherwise made under this title for the fiscal year. If such 
     sum exceeds such amount, subject to clause (ii), the 
     allotment increase for each State under this subsection for 
     the fiscal year shall be reduced in a pro rata manner in 
     order that such sum does not exceed such amount.
       ``(ii) Congressional approval of additional amounts.--If 
     the Secretary estimates that the allotment increases that 
     should be provided under this subsection, but for clause (i), 
     would exceed the limitation established under such clause, 
     the Secretary shall submit to Congress a request for 
     supplemental appropriations for the purpose of meeting such 
     shortfall.
       ``(4) Clarification.--An adjustment in an allotment shall 
     not be made under this subsection due to excess State 
     expenditures resulting from a growth in per capita costs, 
     increased reimbursement to providers, or other factors not 
     directly related to outreach to eligible, but previously 
     unenrolled children.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect beginning with allotments for fiscal year 
     2008.

     SEC. 207. MODEL OF INTERSTATE COORDINATED ENROLLMENT AND 
                   COVERAGE PROCESS.

       In order to assure continuity of coverage of low-income 
     children under the Medicaid program and the State Children's 
     Health Insurance Program (SCHIP), the Secretary of Health and 
     Human Services, in consultation with State Medicaid and SCHIP 
     directors, shall develop and disseminate a model process for 
     the coordination of the enrollment and coverage under such 
     programs of children who, because of migration of families, 
     emergency evacuations, educational needs, or otherwise, 
     frequently change their State of residency or otherwise are 
     temporarily present outside of the State of their residency.

     SEC. 208. AUTHORITY FOR QUALIFYING STATES TO USE PORTION OF 
                   SCHIP ALLOTMENT FOR ANY FISCAL YEAR FOR CERTAIN 
                   MEDICAID EXPENDITURES.

       Section 2105(g)(1)(A) of the Social Security Act (42 U.S.C. 
     1397ee(g)(1)(A)), as amended by section 201(b) of the 
     National Institutes of Health Reform Act of 2006 (Public Law 
     109-482) is amended by striking ``fiscal year 1998, 1999, 
     2000, 2001, 2004, 2005, 2006, or 2007'' and inserting ``a 
     fiscal year''.

     SEC. 209. APPLICATION OF MEDICAID OUTREACH PROCEDURES TO ALL 
                   PREGNANT WOMEN AND CHILDREN.

       (a) In General.--Section 1902(a)(55) of the Social Security 
     Act (42 U.S.C. 1396a(a)(55)) is amended by striking 
     ``individuals for medical assistance under subsection 
     (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), (a)(10)(A)(i)(VII), or 
     (a)(10)(A)(ii)(IX)'' and inserting ``child and pregnant women 
     for medical assistance (including under clauses (i)(IV), 
     (i)(VI), (i)(VII), and (ii)(IX) of paragraph (10)(A))''.
       (b) Effective Date.--
       (1) In general.--
       (2) Exception for state legislation.--In the case of a 
     State plan under title XIX of the Social Security Act, which 
     the Secretary of Health and Human Services determines 
     requires State legislation in order for the plan to meet the 
     additional requirements imposed by the amendment made by 
     subsection (a), the State plan shall not be regarded as 
     failing to comply with the requirements of such Act solely on 
     the basis of its failure to meet these additional 
     requirements before the first day of the first calendar 
     quarter beginning after the close of the first regular 
     session of the State legislature that begins after the date 
     of enactment of this Act. For purposes of the previous 
     sentence, in the case of a State that has a 2-year 
     legislative session, each year of the session shall be 
     considered to be a separate regular session of the State 
     legislature.

     SEC. 210. NO IMPACT ON SECTION 1115 WAIVERS.

       Nothing in this Act shall be construed to affect State 
     flexibility on eligibility and waivers approved by the 
     Federal government

[[Page 11999]]

     under section 1115 of the Social Security Act (42 U.S.C. 
     1315).

     SEC. 211. ELIMINATION OF COUNTING MEDICAID CHILD PRESUMPTIVE 
                   ELIGIBILITY COSTS AGAINST TITLE XXI ALLOTMENT.

       Section 2105(a)(1) of the Social Security Act (42 U.S.C. 
     1397ee(a)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``(or, in the case of expenditures described in subparagraph 
     (B), the Federal medical assistance percentage (as defined in 
     the first sentence of section 1905(b)))''; and
       (2) by amending subparagraph (B) to read as follows:
       ``(B) [reserved]''.

     SEC. 212. PROHIBITING LIMITATIONS ON ENROLLMENT.

       (a) In General.--Section 2102(b)(3)(B) of the Social 
     Security Act (42 U.S.C. 1397bb(b)(3)(B)) is amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting ``; and''; and
       (3) by adding at the end the following new clause:
       ``(iii) shall not impose, with respect to enrollment of 
     targeted low-income children under the State child health 
     plan, any enrollment cap or other numerical limitation on 
     enrollment, any waiting list, any procedures designed to 
     delay the consideration of applications for enrollment, or 
     similar limitation with respect to enrollment.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to State child health plans as of October 1, 
     2007.

         TITLE III--ELIMINATION OF CERTAIN BARRIERS TO COVERAGE

     SEC. 301. STATE OPTION TO REQUIRE CERTAIN INDIVIDUALS TO 
                   PRESENT SATISFACTORY DOCUMENTARY EVIDENCE OF 
                   PROOF OF CITIZENSHIP OR NATIONALITY FOR 
                   PURPOSES OF ELIGIBILITY FOR MEDICAID.

       (a) In General.--Section 1902(a)(46) of the Social Security 
     Act (42 U.S.C. 1396a(a)(46)) is amended--
       (1) by inserting ``(A)'' after ``(46)'';
       (2) by adding ``and'' after the semicolon; and
       (3) by adding at the end the following new subparagraph:
       ``(B) at the option of the State and subject to section 
     1903(x), require that, with respect to an individual (other 
     than an individual described in section 1903(x)(1)) who 
     declares to be a citizen or national of the United States for 
     purposes of establishing initial eligibility for medical 
     assistance under this title (or, at State option, for 
     purposes of renewing or redetermining such eligibility to the 
     extent that such satisfactory documentary evidence of 
     citizenship or nationality has not yet been presented), there 
     is presented satisfactory documentary evidence of citizenship 
     or nationality of the individual (using criteria determined 
     by the State, which shall be no more restrictive than the 
     criteria used by the Social Security Administration to 
     determine citizenship, and which shall accept as such 
     evidence a document issued by a federally recognized Indian 
     tribe evidencing membership or enrollment in, or affiliation 
     with, such tribe (such as a tribal enrollment card or 
     certificate of degree of Indian blood, and, with respect to 
     those federally recognized Indian tribes located within 
     States having an international border whose membership 
     includes individuals who are not citizens of the United 
     States, such other forms of documentation (including tribal 
     documentation, if appropriate) that the Secretary, after 
     consulting with such tribes, determines to be satisfactory 
     documentary evidence of citizenship or nationality for 
     purposes of satisfying the requirement of this 
     subparagraph));''.
       (b) Limitation on Waiver Authority.--Notwithstanding any 
     provision of section 1115 of the Social Security Act (42 
     U.S.C. 1315), or any other provision of law, the Secretary 
     may not waive the requirements of section 1902(a)(46)(B) of 
     such Act (42 U.S.C. 1396a(a)(46)(B)) with respect to a State.
       (c) Conforming Amendments.--Section 1903 of such Act (42 
     U.S.C. 1396b) is amended--
       (1) in subsection (i)--
       (A) in paragraph (20), by adding ``or'' after the 
     semicolon;
       (B) in paragraph (21), by striking ``; or'' and inserting a 
     period; and
       (C) by striking paragraph (22); and
       (2) in subsection (x) (as amended by section 405(c)(1)(A) 
     of division B of the Tax Relief and Health Care Act of 2006 
     (Public Law 109-432))--
       (A) by striking paragraphs (1) and (3);
       (B) by redesignating paragraph (2) as paragraph (1);
       (C) in paragraph (1), as so redesignated, by striking 
     ``paragraph (1)'' and inserting ``section 1902(a)(46)(B)''; 
     and
       (D) by adding at the end the following new paragraphs:
       ``(2) In the case of an individual declaring to be a 
     citizen or national of the United States with respect to whom 
     a State requires the presentation of satisfactory documentary 
     evidence of citizenship or nationality under section 
     1902(a)(46)(B), the individual shall be provided at least the 
     reasonable opportunity to present satisfactory documentary 
     evidence of citizenship or nationality under this subsection 
     as is provided under clauses (i) and (ii) of section 
     1137(d)(4)(A) to an individual for the submittal to the State 
     of evidence indicating a satisfactory immigration status.
       ``(3)(A) In addition to the criteria established by the 
     State for purposes of section 1902(a)(46)(B), a State shall 
     deem presentation of the following documents to be 
     `satisfactory documentary evidence of citizenship or 
     nationality' (and shall not favor presentation of 1 type of 
     document described over another):
       ``(i) Any document described in subparagraph (B).
       ``(ii) Any document described in subparagraph (C) when 
     presented with any document described in subparagraph (D).
       ``(iii) Any document described in subparagraph (E) if the 
     requirements of that subparagraph are met.
       ``(B) The following are documents described in this 
     subparagraph:
       ``(i) A United States passport.
       ``(ii) Form N-550 or N-570 (Certificate of Naturalization).
       ``(iii) Form N-560 or N-561 (Certificate of United States 
     Citizenship).
       ``(iv) A valid State-issued driver's license or other 
     identity document described in section 274A(b)(1)(D) of the 
     Immigration and Nationality Act, but only if the State 
     issuing the license or such document requires proof of United 
     States citizenship before issuance of such license or 
     document or obtains a social security number from the 
     applicant and verifies before certification that such number 
     is valid and assigned to the applicant who is a citizen.
       ``(v) Such other document as the Secretary may specify, by 
     regulation, that provides proof of United States citizenship 
     or nationality and that provides a reliable means of 
     documentation of personal identity.
       ``(C) The following are documents described in this 
     subparagraph:
       ``(i) A certificate of birth in the United States.
       ``(ii) Form FS-545 or Form DS-1350 (Certification of Birth 
     Abroad).
       ``(iii) Form I-197 (United States Citizen Identification 
     Card).
       ``(iv) Form FS-240 (Report of Birth Abroad of a Citizen of 
     the United States).
       ``(v) Such other document (not described in subparagraph 
     (B)(iv)) as the Secretary may specify that provides proof of 
     United States citizenship or nationality.
       ``(D) The following are documents described in this 
     subparagraph:
       ``(i) Any identity document described in section 
     274A(b)(1)(D) of the Immigration and Nationality Act.
       ``(ii) Any other documentation of personal identity of such 
     other type as the Secretary finds, by regulation, provides a 
     reliable means of identification.
       ``(E) A document described in this subparagraph is an 
     affidavit of citizenship or identity, or both, which need not 
     be notarized or witnessed, but only if the individual has 
     been unable to acquire other satisfactory documentary 
     evidence within the reasonable opportunity period established 
     by the State, despite a good faith effort to do so. An 
     individual shall be deemed unable to acquire such documentary 
     evidence--
       ``(i) if there is good reason to believe that such 
     documentary evidence does not exist;
       ``(ii) if, after a timely request for such documentary 
     evidence, it has not been received by the State or the 
     individual within the reasonable opportunity period 
     established by the State;
       ``(iii) if such documentary evidence cannot be acquired at 
     a nominal cost to the individual; or
       ``(iv) in such additional situations as the Secretary may 
     describe.
       ``(F)(i) A reference in this paragraph to a form includes a 
     reference to any successor form.
       ``(ii) Any legible copy of a form described in this 
     paragraph shall be accepted as if it were the original of 
     such form.''.
       (d) Clarification of Rules for Children Born in the United 
     States to Mothers Eligible for Medicaid.--Section 1903(x) of 
     such Act (42 U.S.C. 1396b(x)), as amended by subsection 
     (c)(2), is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (C), by striking ``or'' at the end;
       (B) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (C) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) pursuant to the application of section 1902(e)(4) 
     (and, in the case of an individual who is eligible for 
     medical assistance on such basis, the individual shall be 
     deemed to have provided satisfactory documentary evidence of 
     citizenship or nationality and shall not be required to 
     provide further documentary evidence on any date that occurs 
     during or after the period in which the individual is 
     eligible for medical assistance on such basis); or''; and
       (2) by adding at the end the following new paragraph:
       ``(4) Nothing in subparagraph (A) or (B) of section 
     1902(a)(46), the preceding paragraphs of this subsection, or 
     the Deficit Reduction Act of 2005, including section 6036 of 
     such Act, shall be construed as changing the requirement of 
     section 1902(e)(4) that a child

[[Page 12000]]

     born in the United States to an alien mother for whom medical 
     assistance for the delivery of such child is available as 
     treatment of an emergency medical condition pursuant to 
     subsection (v) shall be deemed eligible for medical 
     assistance during the first year of such child's life.''.
       (e) Effective Date.--
       (1) Retroactive application.--The amendments made by this 
     section shall take effect as if included in the enactment of 
     the Deficit Reduction Act of 2005 (Public Law 109-171; 120 
     Stat. 4).
       (2) Restoration of eligibility.--In the case of an 
     individual who, during the period that began on July 1, 2006, 
     and ends on the date of enactment of this Act, was determined 
     to be ineligible for medical assistance under a State 
     Medicaid program solely as a result of the application of 
     subsections (i)(22) and (x) of section 1903 of the Social 
     Security Act (as in effect during such period), but who would 
     have been determined eligible for such assistance if such 
     subsections, as amended by this section, had applied to the 
     individual, a State may deem the individual to be eligible 
     for such assistance as of the date that the individual was 
     determined to be ineligible for such medical assistance on 
     such basis.

     SEC. 302. INCREASED FEDERAL MATCHING RATE FOR LANGUAGE 
                   SERVICES PROVIDED UNDER MEDICAID OR SCHIP.

       (a) In General.--Section 1903(a)(3) of the Social Security 
     Act (42 U.S.C. 1396b(a)(3)) is amended--
       (1) in subparagraph (E)(ii), by striking ``plus'' at the 
     end; and
       (2) by adding at the end the following:
       ``(3) 85 percent of the sums expended with respect to costs 
     incurred during such quarter as are attributable to the 
     provision of language services on behalf of individuals with 
     limited English proficiency who apply for or receive medical 
     assistance under the State plan (including any provisions of 
     the plan implemented pursuant to any waiver authority of the 
     Secretary) or child health assistance under title XXI; 
     plus''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on October 1, 2007, and apply to language 
     services provided on or after that date.

 TITLE IV--GRANTS TO PROMOTE INNOVATIVE OUTREACH AND ENROLLMENT UNDER 
                           MEDICAID AND SCHIP

     SEC. 401. GRANTS TO PROMOTE INNOVATIVE OUTREACH AND 
                   ENROLLMENT UNDER MEDICAID AND SCHIP.

       Title XXI of the Social Security Act (42 U.S.C. 1397aa et 
     seq.), as amended by section 204(b), is amended by adding at 
     the end the following:

     ``SEC. 2112. EXPANDED OUTREACH AND ENROLLMENT ACTIVITIES.

       ``(a) Grants to Conduct Innovative Outreach and Enrollment 
     Efforts.--
       ``(1) In general.--The Secretary shall award grants to 
     eligible entities to--
       ``(A) conduct innovative outreach and enrollment efforts 
     that are designed to increase the enrollment and 
     participation of eligible children under this title and title 
     XIX; and
       ``(B) promote understanding of the importance of health 
     insurance coverage for prenatal care and children.
       ``(2) Performance bonuses.--The Secretary may reserve a 
     portion of the funds appropriated under subsection (g) for a 
     fiscal year for the purpose of awarding performance bonuses 
     during the succeeding fiscal year to eligible entities that 
     meet enrollment goals or other criteria established by the 
     Secretary.
       ``(b) Priority for Award of Grants.--
       ``(1) In general.--In making grants under subsection 
     (a)(1), the Secretary shall give priority to--
       ``(A) eligible entities that propose to target geographic 
     areas with high rates of--
       ``(i) eligible but unenrolled children, including such 
     children who reside in rural areas; or
       ``(ii) racial and ethnic minorities and health disparity 
     populations, including those proposals that address cultural 
     and linguistic barriers to enrollment; and
       ``(B) eligible entities that plan to engage in outreach 
     efforts with respect to individuals described in subparagraph 
     (A) and that are--
       ``(i) Federal health safety net organizations; or
       ``(ii) faith-based organizations or consortia.
       ``(2) 10 percent set aside for outreach to indian 
     children.--An amount equal to 10 percent of the funds 
     appropriated under subsection (g) for a fiscal year shall be 
     used by the Secretary to award grants to Indian Health 
     Service providers and urban Indian organizations receiving 
     funds under title V of the Indian Health Care Improvement Act 
     (25 U.S.C. 1651 et seq.) for outreach to, and enrollment of, 
     children who are Indians.
       ``(c) Application.--An eligible entity that desires to 
     receive a grant under subsection (a)(1) shall submit an 
     application to the Secretary in such form and manner, and 
     containing such information, as the Secretary may decide. 
     Such application shall include--
       ``(1) quality and outcomes performance measures to evaluate 
     the effectiveness of activities funded by a grant awarded 
     under this section to ensure that the activities are meeting 
     their goals; and
       ``(2) an assurance that the entity shall--
       ``(A) conduct an assessment of the effectiveness of such 
     activities against such performance measures; and
       ``(B) cooperate with the collection and reporting of 
     enrollment data and other information determined as a result 
     of conducting such assessments to the Secretary, in such form 
     and manner as the Secretary shall require.
       ``(d) Dissemination of Enrollment Data and Information 
     Determined From Effectiveness Assessments; Annual Report.--
     The Secretary shall--
       ``(1) disseminate to eligible entities and make publicly 
     available the enrollment data and information collected and 
     reported in accordance with subsection (c)(2)(B); and
       ``(2) submit an annual report to Congress on the outreach 
     activities funded by grants awarded under this section.
       ``(e) Supplement, Not Supplant.--Federal funds awarded 
     under this section shall be used to supplement, not supplant, 
     non-Federal funds that are otherwise available for activities 
     funded under this section.
       ``(f) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means 
     any of the following:
       ``(A) A State or local government.
       ``(B) A Federal health safety net organization.
       ``(C) A national, local, or community-based public or 
     nonprofit private organization, including organizations that 
     use community health workers or community-based doula 
     programs.
       ``(D) A faith-based organization or consortia, to the 
     extent that a grant awarded to such an entity is consistent 
     with the requirements of section 1955 of the Public Health 
     Service Act (42 U.S.C. 300x-65) relating to a grant award to 
     non-governmental entities.
       ``(E) An elementary or secondary school.
       ``(2) Federal health safety net organization.--The term 
     `Federal health safety net organization' means--
       ``(A) an Indian tribe, tribal organization, or an urban 
     Indian organization receiving funds under title V of the 
     Indian Health Care Improvement Act (25 U.S.C. 1651 et seq.), 
     or an Indian Health Service provider;
       ``(B) a Federally-qualified health center (as defined in 
     section 1905(l)(2)(B));
       ``(C) a hospital defined as a disproportionate share 
     hospital for purposes of section 1923;
       ``(D) a covered entity described in section 340B(a)(4) of 
     the Public Health Service Act (42 U.S.C. 256b(a)(4)); and
       ``(E) any other entity or a consortium that serves children 
     under a federally-funded program, including the special 
     supplemental nutrition program for women, infants, and 
     children (WIC) established under section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786), the head start and 
     early head start programs under the Head Start Act (42 U.S.C. 
     9801 et seq.), the school lunch program established under the 
     Richard B. Russell National School Lunch Act, and an 
     elementary or secondary school.
       ``(3) Indians; indian tribe; tribal organization; urban 
     indian organization.--The terms `Indian', `Indian tribe', 
     `tribal organization', and `urban Indian organization' have 
     the meanings given such terms in section 4 of the Indian 
     Health Care Improvement Act (25 U.S.C. 1603).
       ``(g) Appropriation.--There is appropriated, out of any 
     money in the Treasury not otherwise appropriated, $50,000,000 
     for each of fiscal years 2008 through 2012 for the purpose of 
     awarding grants under this section. Amounts appropriated and 
     paid under the authority of this section shall be in addition 
     to amounts appropriated under section 2104 and paid to States 
     in accordance with section 2105, including with respect to 
     expenditures for outreach activities in accordance with 
     subsection (a)(1)(D)(iii) of such section.''.

            TITLE V--IMPROVING THE QUALITY OF PEDIATRIC CARE

     SEC. 501. REQUIRING COVERAGE OF EPSDT SERVICES, INCLUDING 
                   DENTAL SERVICES; STATE OPTION TO PROVIDE 
                   SUPPLEMENTAL COVERAGE OF DENTAL SERVICES.

       (a) Additional Required Services.--
       (1) Required coverage of epsdt services, including dental 
     services.--Section 2103(c) of the Social Security Act (42 
     U.S.C. 1397cc(c)) is amended--
       (A) by redesignating paragraph (5) as paragraph (6); and
       (B) by inserting after paragraph (4), the following:
       ``(5) Other required services.--The child health assistance 
     provided to a targeted low-income child shall include 
     coverage of early and periodic screening, diagnostic, and 
     treatment services described in subsections (a)(4)(B) and (r) 
     of section 1905 and provided in accordance with section 
     1903(a)(43) (including dental services that are necessary to 
     prevent disease and promote oral health, restore oral 
     structures to health and function, and treat emergency 
     conditions).''.
       (2) State child health plan requirement.--Section 
     2102(a)(7)(B) of such Act (42 U.S.C. 1397bb(c)(2)) is amended 
     by inserting ``and services described in section 2103(c)(5)'' 
     after ``emergency services''.
       (3) Conforming amendment.--Section 2103(a) of such Act (42 
     U.S.C. 1397cc(a)) is amended, in the matter preceding 
     paragraph

[[Page 12001]]

     (1), by striking ``subsection (c)(5)'' and inserting 
     ``paragraphs (5) and (6) of subsection (c)''.
       (b) State Option to Provide Supplemental Coverage of Dental 
     Services Under SCHIP to Children With Other Health 
     Coverage.--
       (1) In general.--Section 2110(b) of the Social Security Act 
     (42 U.S.C. 1397jj(b)) is amended--
       (A) in paragraph (1)(C), by inserting ``, subject to 
     paragraph (5),'' after ``under title XIX or''; and
       (B) by adding at the end the following:
       ``(5) State option to provide supplemental coverage of 
     dental services to children with other health coverage.--
       ``(A) In general.--A State may waive the requirement of 
     paragraph (1)(C) that a targeted low-income child may not be 
     covered under a group health plan or under health insurance 
     coverage in order to provide dental services that are not 
     covered, or are only partially covered, under such plan or 
     coverage. Nothing in subsection (c)(5) of section 2103 shall 
     be construed as prohibiting a State from limiting the 
     supplemental coverage of dental services provided in 
     accordance with this paragraph and nothing in paragraph (2) 
     or (3) of subsection (e) of such section shall be construed 
     as prohibiting a State from imposing premiums, deductibles, 
     cost-sharing, or similar charges for such coverage without 
     regard to the requirements of either such paragraph.
       ``(B) Eligibility.--In waiving such requirement, a State 
     may limit the application of the waiver to children whose 
     family income does not exceed a level specified by the State, 
     which may not exceed the maximum income level otherwise 
     established for other children under the State child health 
     plan.
       ``(C) Continued application of duty to prevent substitution 
     of existing coverage.--Nothing in this paragraph shall be 
     construed as modifying the application of section 
     2102(b)(3)(C) to a State.''.
       (2) Application of enhanced match under medicaid.--Section 
     1905 of such Act (42 U.S.C. 1396d) is amended--
       (A) in subsection (b), in the fourth sentence, by striking 
     ``subsection (u)(3)'' and inserting ``(u)(3), or (u)(4)''; 
     and
       (B) in subsection (u), by redesignating paragraph (4) as 
     paragraph (5) and by inserting after paragraph (3) the 
     following:
       ``(4) For purposes of subsection (b), the expenditures 
     described in this paragraph are expenditures for supplemental 
     coverage of dental services for children described in section 
     2110(b)(5).''.
       (3) Application of secondary payor provisions.--Section 
     2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)) is amended--
       (A) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (C) through (E), respectively; and
       (B) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Section 1902(a)(25) (relating to coordination of 
     benefits and secondary payor provisions) with respect to 
     children provided supplemental coverage of dental services 
     under a waiver described in section 2110(b)(5).''.

     SEC. 502. PEDIATRIC QUALITY AND PERFORMANCE MEASURES PROGRAM.

       Title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.) is amended--
       (1) by redesignating section 1939 as section 1941; and
       (2) by inserting after section 1938 the following:


          ``PEDIATRIC QUALITY AND PERFORMANCE MEASURES PROGRAM

       ``Sec. 1939.  (a) Establishment.--The Secretary, acting 
     through the Administrator of the Centers for Medicare & 
     Medicaid Services and in consultation with the Director of 
     the Agency for Healthcare Research and Quality, shall 
     establish a program to encourage and support the development 
     of new and emerging quality and performance measures for 
     providers of pediatric care through the activities described 
     in subsection (c). In establishing the program, gaps in 
     existing evidence-based measures and priority areas for 
     advancement shall be identified.
       ``(b) Purpose.--The purpose of the program is to ensure 
     that--
       ``(1) evidence-based pediatric quality and performance 
     measures are developed; and
       ``(2) such measures are available for States, other 
     purchasers of pediatric health care services, health care 
     providers, and consumers to use.
       ``(c) Program Activities.--
       ``(1) Identifying quality and performance measures for 
     providers of pediatric services and opportunities for new 
     measures.--Not later than 3 months after the date of 
     enactment of this section, the Secretary shall identify 
     quality and performance measures for providers of pediatric 
     services and opportunities for the development of new 
     measures, taking into consideration existing evidence-based 
     measures. In conducting this review, the Secretary shall--
       ``(A) ensure the inclusion of at least 1 measure related to 
     children's dental and oral health; and
       ``(B) convene and consult with representatives of--
       ``(i) States;
       ``(ii) pediatric hospitals, pediatricians, and other 
     pediatric health professionals;
       ``(iii) national organizations representing--

       ``(I) consumers of children's health care; and
       ``(II) purchasers of children's health care;

       ``(iv) experts in pediatric quality and performance 
     measurement; and
       ``(v) a voluntary consensus standards setting organization 
     and other organizations involved in the advancement of 
     consensus on evidence-based measures of health care.
       ``(2) Developing, validating, and testing new measures.--
     The Secretary shall award grants or contracts to eligible 
     entities (as defined in subsection (d)(1)) for the 
     development, validation, and testing of new and emerging 
     quality and performance measures, including at least 1 
     measure related to children's dental and oral health, for 
     providers of pediatric services. Such measures shall--
       ``(A) provide consumers and purchasers (including States 
     and beneficiaries under the program under this title and 
     title XXI) with information about provider performance and 
     quality; and
       ``(B) assist health care providers in improving the quality 
     of the items and services they provide and their performance 
     with respect to the provision of such items and services.
       ``(3) Achieving consensus on evidence-based measures.--The 
     Secretary shall award grants or contracts to eligible 
     consensus entities (as defined in subsection (d)(2)) for the 
     development of consensus on evidence-based measures for 
     pediatric care, including at least 1 measure related to 
     children's dental and oral health, that have broad 
     acceptability in the health care industry.
       ``(d) Eligible Entities.--
       ``(1) Development, validation, and testing.--For purposes 
     of paragraph (2) of subsection (c), the term `eligible 
     entity' means--
       ``(A) organizations with demonstrated expertise and 
     capacity in the development and evaluation of pediatric 
     quality and performance measures;
       ``(B) an organization or association of health care 
     providers with demonstrated experience in working with 
     accrediting organizations in developing pediatric quality and 
     performance measures; and
       ``(C) a collaboration of national pediatric organizations 
     working to improve pediatric quality and performance 
     measures.
       ``(2) Achievement of consensus.--For purposes of paragraph 
     (3) of such subsection, the term `eligible consensus entity' 
     means an organization, including a voluntary consensus 
     standards setting organization involved in the advancement of 
     consensus on evidence-based measures of health care.
       ``(e) Ongoing Authority to Update and Adjust Pediatric 
     Measures.--The Secretary may update and adjust measures 
     developed and advanced under the program under this section 
     in accordance with--
       ``(1) any changes that a voluntary consensus standards 
     setting organization determines should be made with respect 
     to such measures; or
       ``(2) new evidence indicating the need for changes with 
     respect to such measures.
       ``(f) Addition of Pediatric Consumer Assessment Measures to 
     CAHPS Hospital Survey Conducted by AHRQ.--The Director of the 
     Agency for Healthcare Research and Quality shall ensure that 
     consumer assessment measures for hospital services for 
     children are added to the Consumer Assessment of Healthcare 
     Providers and Systems (CAHPS) Hospital survey conducted by 
     such Agency.
       ``(g) Appropriation.--There are authorized to be 
     appropriated and there are appropriated, for the purpose of 
     carrying out this section, $10,000,000, for each of fiscal 
     years 2008 through 2012, to remain available until 
     expended.''.

     SEC. 503. GRANTS TO STATES FOR DEMONSTRATION PROJECTS 
                   TRANSFORMING DELIVERY OF PEDIATRIC CARE.

       Title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.), as amended by section 502, is amended by inserting 
     after section 1939 the following:


``GRANTS TO STATES FOR DEMONSTRATION PROJECTS TRANSFORMING DELIVERY OF 
                             PEDIATRIC CARE

       ``Sec. 1940.  (a) Establishment.--The Secretary, acting 
     through the Administrator of the Centers for Medicare & 
     Medicaid Services, shall establish demonstration projects, 
     including demonstration projects in each of the 4 categories 
     described in subsection (d), to award grants to States to 
     improve the delivery of health care services provided to 
     children under this title and title XXI.
       ``(b) Duration.--The demonstration projects shall be 
     conducted for a period of 4 years.
       ``(c) Eligibility.--A State shall not be eligible to 
     receive a grant under this section unless the State has 
     demonstrated experience or commitment to the concept of 
     transformation in the delivery of pediatric care.
       ``(d) Categories of Projects.--The following categories of 
     projects are described in this subsection:
       ``(1) Health information technology systems.--Projects for 
     developing health information technology systems, including 
     technology acquisition, electronic health record development, 
     data standards development,

[[Page 12002]]

     and software development, for pediatric hospital and 
     physician services and other community-based services; 
     implementing model systems; and evaluating their impact on 
     the quality, safety, and costs of care.
       ``(2) Disease management.--Projects for providing provider-
     based care disease management for children with chronic 
     conditions (including physical, developmental, behavioral, 
     and psychological conditions), demonstrating the 
     effectiveness of provider-based management models in 
     promoting better care, reducing adverse health outcomes, and 
     preventing avoidable hospitalizations.
       ``(3) Evidence-based quality improvements.--Projects for 
     implementing evidence-based approaches to improving 
     efficiency, safety, and effectiveness in the delivery of 
     hospital care for children across hospital services, 
     evaluating the translation of successful models of such 
     evidence-based approaches to other institutions, and the 
     impact of such changes on the quality, safety, and costs of 
     care.
       ``(4) Quality and performance measures for providers of 
     children's health care services.--Projects to pilot test 
     evidence-based pediatric quality and performance measures for 
     inpatient hospital services, physician services, or services 
     of other health professionals, determining the reliability, 
     feasibility, and validity of such measures, and evaluating 
     their potential impact on improving the quality and delivery 
     of children's health care. To the extent feasible, such 
     measures shall have been approved by consensus standards 
     setting organizations.
       ``(e) Uniform Metrics.--The Secretary shall establish 
     uniform metrics (adjusted, as appropriate, for patient 
     acuity), collect data, and conduct evaluations with respect 
     to each demonstration project category described in 
     subsection (d). In establishing such metrics, collecting such 
     data, and conducting such evaluations, the Secretary shall 
     consult with--
       ``(1) experts in each such demonstration project category;
       ``(2) participating States;
       ``(3) national pediatric provider organizations;
       ``(4) health care consumers; and
       ``(5) such other entities or individuals with relevant 
     expertise as the Secretary determines appropriate.
       ``(f) Evaluation and Report.--The Secretary shall evaluate 
     the demonstration projects conducted under this section and 
     submit a report to Congress not later than 3 months before 
     the completion of each demonstration project that includes 
     the findings of the evaluation and recommendations with 
     respect to--
       ``(1) expansion of the demonstration project to additional 
     States and sites; and
       ``(2) the broader implementation of approaches identified 
     as being successful in advancing quality and performance in 
     the delivery of medical assistance provided to children under 
     this title and title XXI.
       ``(g) Waiver.--The Secretary may waive the requirements of 
     this title and title XXI to the extent necessary to carry out 
     the demonstration projects under this section.
       ``(h) Amounts Paid to a State.--Amounts paid to a State 
     under this section--
       ``(1) shall be in addition to Federal payments made to the 
     State under section 1903(a);
       ``(2) shall not be used for the State share of any 
     expenditures claimed for payment under such section; and
       ``(3) shall be used only for expenditures of the State for 
     participating in the demonstration projects, or for 
     expenditures of providers in participating in the 
     demonstration projects, including--
       ``(A) administrative costs of States and participating 
     providers (such as costs associated with the design and 
     evaluation of, and data collection under, the demonstration 
     projects); and
       ``(B) such other expenditures that are not otherwise 
     eligible for reimbursement under this title or title XXI as 
     the Secretary may determine appropriate.
       ``(i) Appropriation.--There are authorized to be 
     appropriated and there are appropriated, for the purpose of 
     carrying out this section, to remain available until expended 
     $10,000,000 for each of fiscal years 2008 through 2012.''.

     SEC. 504. REPORT BY THE COMPTROLLER GENERAL ON DESIGN AND 
                   IMPLEMENTATION OF A DEMONSTRATION PROJECT 
                   EVALUATING EXISTING QUALITY AND PERFORMANCE 
                   MEASURES FOR CHILDREN'S INPATIENT HOSPITAL 
                   SERVICES.

       (a) In General.--Not later than 12 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States (in this section referred to as the ``Comptroller 
     General'') shall submit a report to Congress containing 
     recommendations for the design and implementation of a 
     demonstration project to evaluate the suitability of existing 
     quality and performance measures for children's inpatient 
     hospital services for public reporting, differentiating 
     quality, identifying best practices, and providing a basis 
     for payment rewards.
       (b) Development of Recommendations.--In developing the 
     recommendations submitted under subsection (a), the 
     Comptroller General shall accomplish the following:
       (1) Consider which agency within the Department of Health 
     and Human Services should have primary responsibility and 
     oversight for such a demonstration project.
       (2) Determine a sufficient number of participating 
     hospitals and volume of children's cases, given existing 
     measures that might be chosen for evaluation under such a 
     demonstration project.
       (3) Determine the number of States and variety of 
     geographic locations that may be required to conduct such a 
     demonstration project.
       (4) Describe alternatives for administering and directing 
     funding for such a demonstration project, taking into 
     consideration the potential involvement of multiple States, 
     State plans under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.), and State child health plans under 
     title XXI of such Act (42 U.S.C. 1397aa et seq.). Such 
     description shall be included in the recommendations 
     submitted under subsection (a).
       (5) Determine requirements for consistency in measures, 
     metrics, and risk adjustment for such a demonstration 
     project, across hospitals and across State lines.
       (6) Consider the infrastructure requirements involved in 
     public reporting of quality and performance measures for 
     children's inpatient hospital services at the national and 
     State levels, including the requirements involved with 
     respect to maintaining such measures and data.
       (7) Estimate the cost of undertaking such a demonstration 
     project.
       (c) Suggestion of Existing Measures for Evaluation Under 
     the Demonstration Project.--
       (1) In general.--The report submitted under subsection (a) 
     shall include suggestions for existing measures to be 
     evaluated under the demonstration project recommended in such 
     report, including, to the extent feasible, measures with 
     respect to--
       (A) high volume pediatric inpatient conditions;
       (B) high cost pediatric inpatient services;
       (C) pediatric conditions with predicted high morbidities; 
     and
       (D) pediatric cases at high risk of patient safety 
     failures.
       (2) Suggested measures.--The measures suggested under 
     paragraph (1) shall be measures representing process, 
     structure, patient outcomes, or patient and family 
     experience--
       (A) that are evidence-based;
       (B) that are feasible to collect and report;
       (C) that include a mechanism for risk adjustment when 
     necessary; and
       (D) for which there is a consensus within the pediatric 
     hospital community or a consensus determined by a voluntary 
     consensus standards setting organization involved in the 
     advancement of evidence-based measures of health care.
       (3) Consultation.--In determining the existing measures 
     suggested under paragraph (1), the Comptroller General shall 
     consult with representatives of the following:
       (A) National associations of pediatric hospitals and 
     pediatric health professionals.
       (B) Experts in pediatric quality and performance 
     measurement.
       (C) Voluntary consensus standards setting organizations and 
     other organizations involved in the advancement of consensus 
     on evidence-based measures.
       (D) The Department of Health and Human Services, States, 
     and other purchasers of health care items and services.

     SEC. 505. MEDICAL HOME DEMONSTRATION PROJECT.

       (a) Establishment.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     establish a medical home demonstration project (in this 
     section referred to as the ``project'') under titles XIX and 
     XXI of the Social Security Act (42 U.S.C. 1396 et seq.; 
     1397aa et seq.) to redesign the health care delivery system 
     by providing targeted, accessible, continuous, coordinated, 
     and family-centered care to eligible individuals.
       (2) Eligible individuals defined.--In this section, the 
     term ``eligible individual'' means an individual who--
       (A) is receiving child health assistance under a State 
     child health plan implemented under title XXI of the Social 
     Security Act (42 U.S.C. 1397aa et seq.), title XIX of such 
     Act (42 U.S.C. 1396 et seq.), or both such titles; and
       (B) is a member of a high need population (as determined by 
     the Secretary).
       (3) Project goals.--The project shall be designed in order 
     to determine whether, and if so, the extent to which, medical 
     homes accomplish the following:
       (A) Increase--
       (i) cost efficiencies of health care delivery;
       (ii) access to appropriate health care services;
       (iii) patient satisfaction;
       (iv) school attendance; and
       (v) the quality of health care services provided, as 
     determined based on measures of quality the Secretary 
     determines are broadly accepted in the health care community.
       (B) Decrease--
       (i) inappropriate emergency room utilization; and
       (ii) duplication of health care services provided.
       (C) Provide appropriate--
       (i) preventive care; and

[[Page 12003]]

       (ii) referrals to multidisciplinary services.
       (b) Project Design.--
       (1) Duration.--The project shall be conducted for a 5 year 
     period.
       (2) Sites.--
       (A) In general.--The project shall be conducted in 8 States 
     on a State-wide basis.
       (B) Application.--A State seeking to participate in the 
     project shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may require.
       (3) Conduct of project.--
       (A) Agreements with academic institutions.--A participating 
     State may enter into an agreement with an academic 
     institution in order to have the institution conduct the 
     project, provide technical assistance and monitoring, and to 
     participate in the evaluation of the project under subsection 
     (e)(1).
       (B) Choice of participating physician practices.--
       (i) In general.--A participating State shall establish 
     procedures for physician practices to participate in the 
     project by providing coordinated care to eligible 
     individuals. Such participation shall be on a voluntary 
     basis.
       (ii) Standards for participating physician practices.--The 
     procedures established under clause (i) shall encourage 
     physician practices participating in the project to 
     demonstrate that they have--

       (I) identified care coordinators, family resource guides, 
     family advisors, and a family advisory committee;
       (II) developed care plans for eligible individuals; and
       (III) taken such other actions as the State determines 
     appropriate in order to provide coordinated care to eligible 
     individuals.

       (c) Project Requirements.--Each participating State shall 
     establish procedures in order to ensure that the following 
     requirements are met:
       (1) Each eligible individual in the State who is enrolled 
     in the project is provided a medical home with access to 
     appropriate medical care.
       (2) Each medical home in the State that is participating in 
     the project--
       (A) provides for physician-directed care coordination;
       (B) uses health information technology (including patient 
     registry systems, clinical decision support tools, remote 
     monitoring, and electronic medical record systems);
       (C) communicates with physician practices participating in 
     the project, eligible individuals receiving health care 
     through the medical home, and other health care providers (as 
     appropriate) with respect to health matters, including 
     through electronic mail and telephone consultations;
       (D) makes arrangements with teams of other health 
     professionals, including care coordinators, and facilitates 
     linkages to community resources to extend access to the full 
     spectrum of health care services that eligible individuals 
     require;
       (E) establishes networks with community practices, 
     hospitals, and community health care providers to facilitate 
     the exchange of ideas and resources in order to improve 
     project outcomes; and
       (F) acts as a facilitator in order to ensure that eligible 
     individuals enrolled in the medical home under the project 
     receive high-quality care at the appropriate time and place 
     in a cost-effective manner.
       (3) The State provides payment (in accordance with 
     subsection (d)) and appropriate support for physician-
     directed care coordination services provided to eligible 
     individuals under the project.
       (d) Payment.--
       (1) In general.--The Secretary shall establish a structure 
     for payments to participating States for the cost of services 
     provided under the project. Such structure shall provide 
     payments based on the performance of medical homes located in 
     the State in achieving quality and efficiency goals (as 
     defined by the Secretary).
       (2) Payments for health information technology.--
       (A) In general.--The Secretary shall establish a 
     prospective, bundled, and risk adjusted structural practice 
     payment to cover health information technology expenses 
     incurred by medical homes under the project.
       (B) In general.--Such payments shall take into account any 
     expenses the medical home incurs in order to acquire and 
     utilize health information technology, such as clinical 
     decision support tools, patient registries, and electronic 
     medical records.
       (3) Payments for physician work outside of office visits.--
     The Secretary shall establish a prospective, bundled, and 
     risk adjusted structural care coordination payment that 
     represents the value of physician work provided to eligible 
     individuals under the project that is done outside of any 
     office visits.
       (e) Evaluation and Report.--
       (1) Evaluation.--The Secretary, in consultation with 
     appropriate pediatric medical associations, shall evaluate 
     the project in order to determine the effectiveness of 
     medical homes in terms of quality improvement, patient and 
     provider satisfaction, and the improvement of health 
     outcomes.
       (2) Report.--Not later than 12 months after completion of 
     the project, the Secretary shall submit to Congress a report 
     on the project containing the results of the evaluation 
     conducted under paragraph (1), together with recommendations 
     for such legislation and administrative action as the 
     Secretary determines to be appropriate.
       (f) Funding.--
       (1) In general.--There are authorized to be appropriated, 
     such sums as may be necessary to carry out this section.
       (2) Prohibition.--Amounts paid to a State under the project 
     shall not be used for purposes of claiming a Federal matching 
     payment under section 1903(a) or 2105(a) of the Social 
     Security Act (42 U.S.C. 1396b(a); 1397ee(a)).
       (g) Waiver.--The Secretary shall waive compliance with such 
     requirements of titles XIX and XXI of the Social Security Act 
     (42 U.S.C. 1396 et seq.; 1397aa et seq.) to the extent and 
     for the period the Secretary finds necessary to conduct the 
     project.

     SEC. 506. DISEASE PREVENTION AND TREATMENT DEMONSTRATION 
                   PROJECTS FOR ETHNIC AND RACIAL MINORITY 
                   CHILDREN.

       (a) Definitions.--In this section:
       (1) Child.--The term ``child'' has the meaning given such 
     term in section 2110(c)(1) of the Social Security Act (42 
     U.S.C. 1397jj(c)(1)).
       (2) Medicaid.--The term ``Medicaid'' means the program 
     established under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (3) Projects.--The term ``projects'' means the 
     demonstration projects established under subsection (b)(1).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (5) SCHIP.--The term ``SCHIP'' means the State Children's 
     Health Insurance Program established under title XXI of the 
     Social Security Act (42 U.S.C. 1397aa et seq.).
       (6) Target individual.--
       (A) In general.--The term ``target individual'' means a 
     child--
       (i) who is a member of a racial and ethnic minority group; 
     and
       (ii) who is enrolled in a State Medicaid program or a State 
     child health plan under SCHIP.
       (B) Racial and ethnic minority group.--The term ``racial 
     and ethnic minority group'' has the meaning given such term 
     in section 1707(g)(1) of the Public Health Service Act (42 
     U.S.C. 300u-6(1)).
       (b) Demonstration Projects.--
       (1) Establishment.--The Secretary shall establish 
     demonstration projects for the purpose of developing models 
     and evaluating methods that--
       (A) improve the quality of medical assistance and child 
     health assistance provided to target individuals under 
     Medicaid and SCHIP in order to reduce disparities in the 
     provision of health care services;
       (B) improve clinical outcomes, satisfaction, quality of 
     life, and the appropriate use of services covered and 
     referral patterns under Medicaid and SCHIP among target 
     individuals;
       (C) eliminate disparities in the rate of preventive 
     measures, such as well child visits and immunizations, among 
     target individuals; and
       (D) promote collaboration with community-based 
     organizations to ensure cultural competency of health care 
     professionals and linguistic access for persons with limited 
     English proficiency.
       (2) Design.--
       (A) Initial design.--Not later than 1 year after the date 
     of enactment of this Act, the Secretary shall--
       (i) evaluate best practices in the private sector, 
     community programs, and academic research with respect to 
     methods for reducing health care disparities among target 
     individuals; and
       (ii) design the projects based on such evaluation.
       (B) Number and project areas.--
       (i) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall implement not less 
     than 9 projects, including the following:

       (I) Two projects for each of the 4 following racial and 
     ethnic minority groups:

       (aa) American Indians, including Alaskan Natives, Eskimos, 
     and Aleuts.
       (bb) Asian Americans and Pacific Islanders.
       (cc) Blacks.
       (dd) Hispanics (as defined in section 1707(g)(2) of the 
     Public Health Service Act (42 U.S.C. 300u-6(g)(2)).

       (II) One project within Puerto Rico.

       (ii) Subpopulations.--The 2 projects implemented for the 
     groups described in clause (i)(I) shall each target different 
     ethnic subpopulations within such groups.
       (iii) Rural and inner-city areas.--Not less than 1 of the 
     projects implemented under clause (i)(I) shall be conducted 
     in a rural area and not less than 1 of such projects shall be 
     conducted in an inner-city area.
       (c) Reports to Congress.--
       (1) In general.--Not later than 2 years after the date on 
     which the Secretary initially implements the projects, and 
     biannually thereafter for the duration of the projects, the 
     Secretary shall submit to Congress a report on the projects.
       (2) Contents of report.--Each report submitted under 
     paragraph (1) shall include the following:

[[Page 12004]]

       (A) A description of the projects.
       (B) An evaluation of--
       (i) the cost and benefits of the projects, including 
     whether the projects have reduced expenditures under Medicaid 
     and SCHIP;
       (ii) the quality of the health care services provided to 
     target individuals under the projects, including whether the 
     projects have reduced racial and ethnic health disparities in 
     the quality of health care services provided to such 
     individuals;
       (iii) beneficiary and health care provider satisfaction 
     under the projects; and
       (iv) whether, based on the factors evaluated under clauses 
     (i) through (iii), the projects should be continued or 
     conducted on an expanded basis.
       (C) Any other information with respect to the projects the 
     Secretary determines appropriate.
       (3) Expansion of projects; implementation of results.--If 
     the initial report submitted under paragraph (1) includes an 
     evaluation under paragraph (2)(B)(iv) that the projects 
     initially established under subsection (b)(1) should be 
     continued or conducted on an expanded basis, the Secretary--
       (A) shall continue to conduct such projects; and
       (B) may conduct such additional projects as the Secretary 
     determines appropriate.
       (d) Funding for Projects.--
       (1) In general.--There are authorized to be appropriated, 
     such sums as may be necessary to carry out projects under 
     this section.
       (2) Prohibition.--Amounts paid to a State or territory 
     under the projects shall not be used for purposes of claiming 
     a Federal matching payment under section 1903(a) or 2105(a) 
     of the Social Security Act (42 U.S.C. 1396b(a); 1397ee(a)).
       (e) Waiver.--The Secretary shall waive compliance with such 
     requirements of titles XIX and XXI of the Social Security Act 
     (42 U.S.C. 1396 et seq.; 1397aa et seq.) to the extent and 
     for the period the Secretary finds necessary to conduct the 
     projects.

           TITLE VI--COMMISSION ON CHILDREN'S HEALTH COVERAGE

     SEC. 601. COMMISSION ON CHILDREN'S HEALTH COVERAGE.

       (a) Establishment of Commission.--
       (1) Establishment.--There is established a commission to be 
     known as the ``Commission on Children's Health Coverage'' 
     (referred to in this section as the ``Commission'').
       (2) Membership.--
       (A) In general.--The Committee shall be composed of 10 
     members with academic training and practical experience in--
       (i) the areas of--

       (I) child health and development;
       (II) maternal health and development;
       (III) pediatric care;
       (IV) health care financing;
       (V) community-based participatory research;
       (VI) public health;
       (VII) data collection, analysis, and reporting; and
       (VIII) health and health care disparities; and

       (ii) such other areas as the Secretary of Health and Human 
     Services (in this section referred to as the ``Secretary'') 
     determines appropriate.
       (B) Selection.--The Secretary shall appoint members of the 
     Committee. No candidate for appointment on the Committee 
     shall be asked to provide non-relevant information, such as 
     voting record, political party affiliation, or position on 
     particular policies.
       (3) Term; vacancies.--
       (A) Term.--A member shall be appointed for the life of the 
     Commission.
       (B) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (4) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (5) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (6) Chairperson and vice chairperson.--The Commission shall 
     select a Chairperson from among the members of the 
     Commission.
       (b) Duties.--
       (1) Study.--The Commission shall conduct a study of all 
     matters relating to children's health coverage.
       (2) Recommendations.--The Commission shall develop 
     recommendations on policy improvements at the State and 
     national levels, and in the private sector, with respect to 
     children's health coverage.
       (3) Report.--
       (A) Annual reports.--During the 2 year period beginning on 
     the date of enactment of this Act, the Commission shall 
     submit to the President and Congress annual reports 
     evaluating the status of children's health coverage, together 
     with recommendations for such legislation and administrative 
     administrative actions as the Commission determines would 
     result in improvements in such health coverage at the State 
     and national levels, and in the private sector.
       (B) Final report.--Not later than 3 years after such date 
     of enactment, the Commission shall submit to the President 
     and Congress a report that contains the recommendations of 
     the Commission for such legislation and administrative 
     actions as the Commission determines would result in 
     comprehensive health coverage of all children in the United 
     States.
       (c) Powers.--.
       (1) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this Act.
       (2) Information from federal agencies.--
       (A) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this Act.
       (B) Provision of information.--On request of the 
     Chairperson of the Commission, the head of the agency shall 
     provide the information to the Commission.
       (3) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (4) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (d) Commission Personnel Matters.--
       (1) Compensation of members.--
       (A) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (B) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (2) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (3) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (B) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (C) Compensation.--
       (i) In general.--Except as provided in subparagraph (B), 
     the Chairperson of the Commission may fix the compensation of 
     the executive director and other personnel without regard to 
     the provisions of chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (4) Detail of federal government employees.--
       (A) In general.--An employee of the Federal Government may 
     be detailed to the Commission without reimbursement.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (5) Procurement of temporary and intermittent services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (f) Termination of Commission.--The Commission shall 
     terminate 90 days after the date on which the Commission 
     submits the final report of the Commission under subsection 
     (b)(3)(B).
                                 ______
                                 
      By Mr. HARKIN:
  S. 1367. A bill to amend the Public Health Services Act to provide 
methamphetamine prevention and treatment services; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. HARKIN. Mr. President, I am honored today to introduce the 
Methamphetamine Abuse Treatment and Prevention Act. Meth is one of the 
most deadly, addictive, rapidly spreading drugs in history. It is 
ravaging rural and urban communities alike. And it is leaving a path of 
destruction,

[[Page 12005]]

human, financial, and environmental, that is staggering.
  We've seen violent crime increase significantly for the first time in 
more than a decade. This increase was most evident in the meth-plagued 
Midwest. We must realize meth abuse is not only a State problem, but a 
national problem that is threatening communities across the country.
  Law enforcement efforts to curb the distribution of dangerous meth 
making chemicals and locking up fertilizers have been successful. In 
Iowa, we've reduced the number of meth labs by nearly 80 percent. But 
our effort to fight meth is not over. Unfortunately, many States have 
seen dramatic increases in the amount of crystal meth or ``ice'' 
smuggled into the State. Ice is a much purer and more dangerous form of 
the illegal stimulant. Addicts who no longer have access to meth 
manufactured through home labs are using this more dangerous form. This 
drug puts a heavy toll on our communities, our justice and health care 
system, and tears apart families.
  We need to remember that the meth epidemic is a double scourge. It is 
a public safety crisis. And it is also a public health crisis. Even if 
we shut down every home-based lab, we would still have a meth problem 
in this country. It will not go away until we do a better job of 
preventing people from using meth in the first place and giving addicts 
the treatment they need to kick the habit for good.
  Bear in mind that meth is more addictive than crack cocaine or 
heroin. More than 50 percent of meth users started when they were under 
age 18. Law enforcement officers across Iowa tell me that prevention 
and treatment are the keys to stopping this epidemic.
  Yet this is exactly where we are falling short. There are 22 million 
Americans in need of treatment for substance addiction. Less than 3 
million are able to get help. The bill I am introducing today would 
aggressively step up efforts to prevent meth addiction and provide more 
treatment options.
  Given the highly addictive nature of methamphetamine, prevention is 
crucial. Over 50 percent of meth users started when they were under age 
18. We must target our efforts to ensure that people do not ever start 
using meth. My bill provides grants to schools and communities for meth 
prevention programs. It creates a telephone helpline and an online 
parent resource center. When parents or family members want information 
on keeping their children safe from drugs, or they fear a young person 
is experimenting or in trouble with drugs, this telephone helpline and 
Internet resource will give live, real-time support and information, as 
well as referrals to community resources.
  At the same time, the bill takes a comprehensive approach to 
treatment. We know that with proper treatment, meth addicts can recover 
and live productive lives. Every dollar spent on treatment saves 
taxpayers seven dollars, largely by reducing crime, incarceration, and 
health care costs. The bill that I am introducing today is designed to 
realize these savings by promoting a comprehensive approach to meth 
treatment.
  This legislation promotes range of treatment options. First, it 
includes family-based treatment. Parental substance use is the culprit 
in at least 70 percent of all child welfare spending, yet only 10 
percent of child welfare agencies are able to successfully find 
substance abuse programs for mothers and children. Comprehensive 
treatment specifically for parents can assist them in recovering and 
providing safe and nurturing environments for their children. This 
legislation provides critical resources for adolescent and family-based 
treatment services to ensure that young people and parents are able to 
access the treatment they need.
  Second, this legislation includes grants to offer treatment services 
for nonviolent adults and juveniles as an alternative to jail and 
detention. Nearly 80 percent of those in jail have been identified as 
having a substance abuse problem and one-third of inmates reported 
being under the influence at the time of their offense. We must provide 
treatment in order to prevent recidivism and cycling through the 
justice system.
  My bill also improves services to help recovering addicts make the 
transition from treatment to the community, including housing 
assistance and help finding work, education, and mental health 
services. These things are critical to long-term abstinence and 
recovery.
  I ask for your help now in joining me to fighting the meth epidemic 
that is plaguing our country. This drug tears apart families and is a 
heavy burden on our communities, our justice and health care system. We 
must dedicate the time and resources to getting this problem under 
control and we must do it now.

                          ____________________