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# Legislative Bulletin.............................................March 27, 2007

**Contents:**

> **H.R. 1562 ---** Katrina Housing Tax Relief Act
>
> **H.R. 1132** --- National Breast and Cervical Cancer Early Detection
> Program Reauthorization Act of 2007
>
> **H.R. 477** --- Stroke Treatment and Ongoing Prevention Act
>
> **H.R. 727** --- Trauma Care Systems Planning and Development Act of
> 2007

H.R. 1562---Katrina Housing Tax Relief Act (*Rangel, D-NY*)

**[Order of Business]{.underline}**: The bill is scheduled to be
considered on Tuesday, March 27^th^, under a motion to suspend the rules
and pass the bill. **[NOTE]{.underline}**: because of conservative
concerns on this legislation (see below), reports indicate that this
bill might be amended before it comes to the House floor later today.
The RSC will provide an updated summary of the bill, as appropriate.

**[Summary, as reported from the Ways & Means Committee]{.underline}**:
H.R. 1562 would extend and expand certain tax laws applicable to the
areas affected by Hurricane Katrina, which were enacted in the Gulf
Opportunity Zone Act of 2005. H.R. 1562 would also raise revenue by
changing the "collection due process procedures" for employment taxes*.*
Highlights of the bill are as follows:

-   Extends the special low-income housing credit rules that were
    implemented for the areas devastated by Hurricanes Katrina, Rita,
    and Wilma in 2005. The cap on low-income housing credits had been
    increased for the hurricane-affected states for 2006 through 2008.
    H.R. 1562 would extend the higher cap for two years (through the end
    of 2010). The bill would extend to the end of December 2010 the time
    by which the housing must be completed to still qualify for the
    credit (and the usual requirement that 10% of expected costs be
    expended in the first year would be waived for projects in 2006,
    2007, and 2008). And the bill would extend the Gulf Opportunity
    Zone's designation as a "difficult to develop area" through the end
    of 2010 (which has implications for increasing the amount of credits
    available for investors in projects in the area).

-   Allows the proceeds of Mortgage Revenue Bonds to be used to
    refinance an existing mortgage if repairs or reconstruction costs
    total at least 25% of the owner's adjusted basis in the property.
    (Generally, current law does not allow the proceeds of Mortgage
    Revenue Bonds to be used to refinance existing mortgages.)

-   Allows low-income (Community Development Block Grant---CDBG) housing
    projects to receive additional categories of federally-subsidized
    loans without facing a reduction in tax credits. (Under current law,
    low-income housing projects which receive certain
    federally-subsidized loans must either accept a lower credit rate or
    make an offsetting reduction in the property's basis).

-   Directs the Comptroller General to report to Congress on the
    practices employed by state and local governments in allocating and
    using tax incentives provided by this bill and the Gulf Opportunity
    Zone Act of 2005.

-   Raises revenue by changing "collection due process procedures" with
    regards to employment tax liabilities. Currently, the IRS is allowed
    to seize a taxpayer's physical property given a federal tax lien
    (for underpayments of employment taxes). Prior to seizing the
    property, however, the IRS has to notify the taxpayer that they have
    a right to a collection due process hearing. **[H.R. 1562 would
    allow the IRS to seize property without *first* giving the taxpayer
    a hearing.]{.underline}** The IRS would still have to send warning
    notices, and the hearing would still have to be offered---but not
    necessarily before the property seizure.

-   Increases the corporate estimated tax payments due in the summer of
    FY2012 for corporations with assets of at least \$1 billion. This
    provision does not yield a net tax increase; it merely requires a
    higher quarterly payment of corporate estimated taxes in the summer
    of 2012, and a correspondingly lowered estimated payment thereafter.
    Last year's tax reconciliation bill (Public Law 109-222) included a
    similar tax-payment shift. That is, under current law, the estimated
    payments due in the summer of FY2012 have to be 106.25% of what
    would otherwise be paid (100% = one quarter of the year's estimated
    tax payment due). H.R. 1562 would increase that amount from 106.25%
    to 106.45%, requiring businesses to pay even more of their taxes
    early. (Note: a larger tax shift for these same large corporations
    was included as part of the small business tax bill last
    month---H.R. 976---as well as the supplemental appropriations bill
    this month---H.R. 1591.)

**[Additional Background]{.underline}**: To see the RSC Legislative
Bulletin for the Gulf Opportunity Zone Act of 2005, as it was signed
into law, see this webpage:
<http://www.house.gov/hensarling/rsc/doc/LB_121605_gulfopptax.pdf>.

**[Committee Action]{.underline}**: On March 19, 2007, the bill was
referred to the Ways & Means Committee, which, two days later, marked up
the bill and ordered it reported to the full House by voice vote.

**[Possible Conservative Concerns]{.underline}**: Some conservatives
have expressed concerns about the provision allowing the IRS to seize
property (related to delinquent employment tax payments) *before* the
taxpayer has a chance to present his case at a hearing. Rep. Sam Johnson
(R-TX) and Rep. Tom Reynolds (R-NY) wrote that, "In our view, the
proposed modification to the collection due process ("CDP") procedures
for employment tax liabilities removes an important layer of formal due
process protection by eliminating the guarantee that taxpayers receive a
statutory CDP hearing [before]{.underline} the IRS can issue a levy.  In
our view, this elimination of a guaranteed pre-levy hearing constitutes
an inappropriate and unfair erosion of taxpayer rights, denying
'mom-and-pop' stores along Main Street, USA a formal opportunity to
correct inadvertent errors or bring to light possible IRS mistakes
before any government seizure of their property."

Some conservatives may also be concerned at the inclusion, once again,
of a provision shifting corporate estimated tax payments, forcing some
corporations to pay more of their tax burden earlier.

[]{.mark}

**[Administration Position]{.underline}**: A Statement of Administration
Policy (SAP) was not available at press time.

**[Cost to Taxpayers]{.underline}**: The Joint Committee on Taxation
estimates that the bill, as reported from committee, would reduce
revenues by \$1 million in FY2007, increase revenues by \$49 million in
FY2008, increase revenues by \$43 million over the FY2008-FY2012 period,
and increase revenues by \$5 million over the FY2008-FY2017 period. CBO
estimates that the bill would authorize less than \$500,000 for a study.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: The bill would allow the federal seizure of
private property in certain cases, without first allowing the taxpayer
to present his case at a hearing.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: No.

**[Does the Bill Comply with House Rules Regarding Earmarks/Limited Tax
Benefits/Limited Tariff Benefits?]{.underline}**: Although an
earmarks/revenue benefits statement required under House Rule XXI,
Clause 9(a) was not available at press time, and there's no accompanying
committee report, the earmarks rule (House Rule XXI, Clause 9(a)) does
not apply, by definition, to legislation considered under suspension of
the rules.

**[Constitutional Authority]{.underline}**: House Report 110-66 was not
available at press time.

**[RSC Staff Contact]{.underline}**: Paul S. Teller,
<paul.teller@mail.house.gov>, (202) 226-9718

H.R. 1132 - National Breast and Cervical Cancer Early Detection Program
Reauthorization Act of 2007 *(Baldwin, D-WI)*

**[Order of Business]{.underline}**: The bill is scheduled to be
considered on Tuesday, March 27, 2007, under a motion to suspend the
rules and pass the bill.

**[Summary]{.underline}**: H.R. 1132 would reauthorize the National
Breast and Cervical Cancer Early Detection Program at \$1.25 billion
over five years. The bill would extend from 2000 to 2020, the life of
the Coordinating Committee at the Centers for Disease Control and
Prevention (CDC), which coordinates activities of agencies directed at
reducing the rate of mortality from breast and cervical cancer in the
United States.

Under current law, the Department of Health and Human Services (HHS)
provides grants to states through the National Breast and Cervical
Cancer Early Detection Program to provide breast cancer screenings
(Mammograms) and cervical cancer screenings (Pap Test). States are
required to use 60 percent of the funding on actual screenings, and the
remaining 40 percent is for education, training, and administrative
expenses. H.R. 1132 would direct the Department of Health and Human
Services (HHS) to establish a new federal demonstration project within
this program, which would allow HHS to waive the 60 percent requirement
for up to five states that meet certain requirements and conditions.
This would allow these states more flexibility to use additional funds
for outreach, in order to bring in more women to be screened. This
flexibility could not be used to increase the number of salaried
employees. The bill would sunset HHS's waiver authority on September 30,
2012.

**[Committee Action]{.underline}**: H.R. 1132 was introduced on February
16, 2007, and referred to the House Committee on Energy and Commerce,
which took no official action.

**[Cost to Taxpayers]{.underline}**: According to CBO, the bill would
authorize \$225 million in FY 2008, and \$1.25 billion over five years.

**[Does the Bill Create New Federal Programs or Rules?]{.underline}**:
No.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: No.

**[Constitutional Authority]{.underline}**: A committee report citing
constitutional authority is unavailable.

House Rule XIII, Section 3(d)(1), requires that all committee reports
contain "a statement citing the *specific* powers granted to Congress in
the Constitution to enact the law proposed by the bill or joint
resolution" *\[emphasis added\]*.

[RSC Staff Contact]{.underline}: Joelle Cannon;
[**joelle.cannon@mail.house.gov**](mailto:joelle.cannon@mail.house.gov),
202.226.0718

**H.R. 477 --- Stroke Treatment and Ongoing Prevention Act**

***(Capps, D-CA)***

**[Order of Business]{.underline}**: The bill is scheduled for
consideration on Tuesday, March 27, 2007, under a motion to suspend the
rules and pass the bill.

**[Summary]{.underline}**: H.R. 477 would authorize the creation of **a
new federal education and information campaign** to promote stroke
prevention and increase the number of stroke patients who seek immediate
treatment. The bill would also authorize \$25 million over five years
for the CDC **to maintain the Paul Coverdell National Acute Stroke
Registry and Clearinghouse**, which would develop and collect specific
data points and appropriate benchmarks for analyzing care of acute
stroke patients.

H.R. 477 would authorize \$20 million over five years for the Department
of Health and Human Services (HHS) **to establish a new grant program**
for public and nonprofit entities to plan, develop and enhance approved
residency training programs for health professions in emergency
medicine, to improve stroke and traumatic injury prevention, diagnosis,
treatment, and rehabilitation. H.R. 477 would also authorize \$50
million over five years for the **creation of a new, federal, five-year
pilot grant program** for public and nonprofit entities to improve
stroke patient outcomes by coordinating health care delivery through
telehealth networks. The bill directs HHS to conduct a study on the
results of the telehealth stroke treatment grant program and submit a
report to Congress evaluating the program and providing recommendations
on whether similar telehealth grant programs could be used to improve
patient outcomes in other public health areas.

**[Possible Conservative Concerns]{.underline}: Some conservatives may
be concerned that H.R. 477 authorizes \$95 million over five years for
the creation of three new federal programs related to strokes. In
addition, the CDC currently maintains an entire division devoted to
heart disease and stroke prevention. You can view their site
[here](http://www.cdc.gov/dhdsp/index.htm).**

**[Committee Action]{.underline}**: H.R. 477 was introduced on January
16, 2007, and referred to the Committee on Energy and Commerce, which
took no official action.

**[Cost to Taxpayers]{.underline}**: A CBO score of H.R. 477 is
unavailable. However, the bill authorizes \$95 million over five years
for the creations of several new programs.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: Yes. The bill creates three new federal
programs.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: No.

**[Constitutional Authority]{.underline}**: A committee report citing
constitutional authority is unavailable.

House Rule XIII, Section 3(d)(1), requires that all committee reports
contain "a statement citing the *specific* powers granted to Congress in
the Constitution to enact the law proposed by the bill or joint
resolution" *\[emphasis added\]*.

**[RSC Staff Contact]{.underline}**: Joelle Cannon;
<Joelle.cannon@mail.house.gov>; 202.226.0718

H.R. 727 --- Trauma Care Systems Planning and Development Act of 2007
(*Green, D-TX*)

**[Order of Business]{.underline}:** The bill is scheduled for
consideration on Tuesday, March 27, 2007, under a motion to suspend the
rules and pass the bill.

**[Summary]{.underline}:** H.R. 727 would require the Department of
Health and Human Services (HHS) conduct and support trauma care
research, **provide federal grants** to develop and foster such
research, and establish trauma care programs in rural areas, among other
things. The specific provisions are as follows:

-   Requires the Health and Human Services (HHS) to: 1) conduct and
    support trauma care research, training, evaluations, and
    demonstration projects; 2) foster the development of modern trauma
    care systems though information sharing among agencies and
    individuals involved in such care; 3) compile and disseminate
    information on the experiences of state and local agencies and
    private entities providing trauma care and emergency medical
    services (with special consideration given to the "unique needs of
    rural areas"); 4) provide technical assistance to state and local
    agencies to enhance their capability to implement and sustain trauma
    care medical services; 5) sponsor workshops and conferences; and 6)
    promote data collection of trauma information in a consistent and
    standardized manner.

-   Allows HHS to make grants, and enter into cooperative agreements and
    contracts, to carry out the aforementioned provisions;

-   Allows HHS to make grants to public and nonprofit private entities
    to carry out research and demonstration projects to improve
    emergency medical services in rural areas, to include developing
    innovative uses of communications technologies, and developing
    curricula to training emergency medical personnel, among other
    requirements;

-   Allows HHS to make grants to states, political subdivisions, or a
    consortium of either, for the purpose of enhancing access and
    development of trauma care systems; stipulates certain requirements
    that must be met in order to receive a grant under this provision
    (consistent with the above mentioned HHS requirements to foster
    research and education); also stipulates that grants will be
    provided with preference given to those applicants utilizing
    national standards and performance evaluations of trauma centers;

-   Requires that states receiving grants must provide matching
    non-federal contributions toward the cost of the program for the
    first three years, and \$2 in non-federal funds for every \$1 in
    federal funds in the fourth years and beyond;

-   Requires certain modifications to state plans for emergency medical
    services (in order to receive grants), such as 1) meeting national
    standards and requirements of the American College of Surgeons for
    the designation of level I and level II trauma centers; 2) tracking
    and providing certain statistics on the number and type of trauma
    patients treated; 3) providing for appropriate transportation and
    transfer policies to ensure patient delivery to trauma centers
    within and outside of the jurisdiction of such systems; and 4)
    conducting public education activities concerning injury prevention
    and obtaining access to trauma care;

-   Requires HHS to update, within one year of enactment, the model plan
    for the designation of trauma centers and for triage, transfer and
    transportation policies that may be adopted for guidance by the
    state;

-   Requires states receiving grant payments to submit to HHS a state
    plan for the provision of emergency medical services, including any
    changes to the trauma care component and any plans to address
    deficiencies in the trauma care component;

-   Authorizes to be appropriated \$12 million for FY 2008 and \$42
    million for FY 2009 -- FY 2012 to carry out the above mentioned
    provisions of this Act.;

-   Allows HHS to make grants to public and nonprofit private entities
    for planning and developing approved residency training programs in
    emergency medicine, provided that the entity agrees that the program
    will provide education and training in identifying and referring
    cases of domestic violence;

-   Authorizes to be appropriated \$400 million for each fiscal year FY
    2008 -- FY 2012 (\$2 million total) for the above mentioned
    residency training program grants.

**[Committee Action]{.underline}:** H.R. 727 was introduced on January
30, 2007, and referred to the Committee on Energy and Commerce, which
took no official action.

**[Cost to Taxpayers]{.underline}:** CBO confirms that implementing H.R.
727 would authorize \$12 million in FY 2008, and \$46 million over the
FY 2008-FY 2012 period.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}:** Yes. As noted above, the bill expands
federal grants to state and local entities for medical and trauma care.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}:** No.

**[Constitutional Authority]{.underline}:** A committee report citing
constitutional authority is unavailable.

House Rule XIII, Section 3(d)(1), requires that all committee reports
contain "a statement citing the *specific* powers granted to Congress in
the Constitution to enact the law proposed by the bill or joint
resolution." *\[emphasis added\]*

**[RSC Staff Contact]{.underline}:** Derek V. Baker;
[derek.baker@mail.house.gov](mailto:Derek.baker@mail.house.gov);
202-226-8585