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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2909 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2909

To amend title XI of the Social Security Act to provide for an improved 
 method to measure poverty so as to enable a better assessment of the 
   effects of programs under the Social Security Act, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 2009

Mr. McDermott introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend title XI of the Social Security Act to provide for an improved 
 method to measure poverty so as to enable a better assessment of the 
   effects of programs under the Social Security Act, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Measuring American Poverty Act of 
2009''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) Poverty imposes substantial costs on all Americans that 
        can be addressed through effective poverty reduction.
            (2) States and cities throughout the country have 
        acknowledged the need to reduce poverty and the role of the 
        Federal Government as an essential partner.
            (3) On January 22, 2008, the House of Representatives, by 
        voice vote, passed House Concurrent Resolution 198 of the 110th 
        Congress expressing the sense of the Congress that the United 
        States should set a national goal of cutting poverty in half 
        over the next 10 years.
            (4) The poverty rate is a critical indicator of how widely 
        shared prosperity is in the economy, and a key benchmark for 
        targeting resources towards the most disadvantaged.
            (5) The poverty measure is critical for efforts to 
        strengthen and enlarge the middle class, as it indicates who 
        falls from or struggles to join the middle class.
            (6) The official poverty measure, while helpful, is based 
        on outdated assumptions and fails to accurately measure 
        economic deprivation or take into account the availability of 
        many economic resources.
            (7) The official poverty measure offers inadequate guidance 
        about the effectiveness of public anti-poverty efforts.
            (8) In 1995, the National Academy of Sciences' Panel on 
        Poverty and Family Assistance recommended adoption of an 
        improved poverty measure, which addresses many shortcomings of 
        the official poverty measure and which remains relevant and 
        offers a starting point for an improved measure.
            (9) Since even an improved poverty measure remains a 
        measure of deprivation, not of adequacy, a measure of adequate 
        income needed to reach a decent living standard is also 
        necessary.
            (10) Since an inability to access needed medical care is an 
        important indicator of economic insecurity, a medical care risk 
        measure would further enhance understanding of Americans' well-
        being.

SEC. 3. STATEMENT OF PURPOSE.

    The purpose of this Act is to provide for an improved and updated 
method for measuring the extent to which families and individuals in 
the United States have sufficient income to allow a minimal level of 
consumption spending that meets their basic physical needs, including 
food, shelter (including utilities), clothing, and other necessary 
items, in order to better assess the effects of certain policies and 
programs in reducing the prevalence and depth of poverty, to accurately 
gauge the level of economic deprivation, and to improve understanding 
of the targeting of public resources, without directly affecting the 
distribution of, or eligibility for, any Federal benefits or 
assistance.

SEC. 4. MODERNIZATION OF THE MEASUREMENT OF POVERTY.

    Part A of title XI of the Social Security Act (42 U.S.C. 1301--
1320b-21) is amended by adding at the end the following:

``SEC. 1150A. MODERNIZATION OF THE MEASUREMENT OF POVERTY.

    ``(a) In General.--The Bureau of the Census, in collaboration with 
the Bureau of Labor Statistics, after consultation about methodology 
with other Federal statistical agencies and outside experts, shall, to 
the extent possible and based on the best available data, calculate 
modern poverty thresholds, and modern poverty rates as provided for in 
subsection (d), for each calendar year (including any calendar year 
before the first year for which the first annual report is published, 
for which the information needed to perform the calculations is 
available or can be estimated with a reasonable degree of confidence, 
as determined by the Bureau of the Census) in accordance with this 
section.
    ``(b) No Effect on Benefit Programs.--This section shall not be 
interpreted to modify or authorize modification of eligibility of any 
entity for, or the amount or kind of benefits or assistance to be 
provided to any entity under, any program or activity funded, in whole 
or in part, with Federal funds.
    ``(c) Modern Poverty Thresholds.--
            ``(1) Consumption distribution for reference family.--
                    ``(A) In general.--Within 12 months after the date 
                of the enactment of this section, the Bureau of the 
                Census and Bureau of Labor Statistics shall choose--
                            ``(i) the most appropriate distribution of 
                        consumption expenditures (including the value 
                        of relevant amounts described in subsection 
                        (d)(3) or that would otherwise be described in 
                        subsection (d)(3) if included in the 
                        distribution) on food, clothing, and shelter 
                        (including utilities), which may, if 
                        appropriate, exclude families receiving 
                        subsidies for food, clothing, or shelter 
                        (including utilities); and
                            ``(ii) the reference family for the modern 
                        poverty measure.
                    ``(B) Calculation for reference family.--The modern 
                poverty threshold for a reference family, as determined 
                under subparagraph (A), shall be an amount equal to the 
                average of 120 percent of the 33rd percentile of the 
                distribution chosen under subparagraph (A) allowing for 
                calculations to rely on a limited band converging on 
                this percentile, during 4 or more of the most recent 
                years for which data is available from the Consumer 
                Expenditure Survey, a superior Federal Government 
                source of data, or some combination of such sources as 
                determined by the Bureau of the Census and the Bureau 
                of Labor Statistics. The threshold shall be updated no 
                less often than annually using this method.
                    ``(C) Special rule.--Notwithstanding any other 
                provision of this section, insofar as the amounts 
                described in subparagraphs (F) and (G) of subsection 
                (d)(3) are not easily included in the distribution 
                referred to in subparagraph (B) of this paragraph, the 
                Bureau of the Census and the Bureau of Labor Statistics 
                shall develop methods for including, and shall include, 
                the actual or estimated amounts in the distribution.
            ``(2) Adjustment for family size and composition, and for 
        geographic cost variation.--The Bureau of the Census, in 
        collaboration with the Bureau of Labor Statistics and the 
        Bureau of Economic Analysis, and in consultation with other 
        relevant Federal statistical agencies, shall adjust the modern 
        poverty threshold calculated under paragraph (1) of this 
        subsection--
                    ``(A) for other family sizes and compositions, 
                using the best available equivalence scales that 
                consider economies of scale and any special needs of 
                children, including young children; and
                    ``(B) to the maximum extent possible and not 
                earlier or later than the inclusion of State and local 
                taxes and transfers as described in subsection (e)(4), 
                for differences in the costs for the goods and services 
                included in the threshold among States, sub-State non-
                metropolitan areas, and metropolitan areas.
            ``(3) Accommodation of housing status.--To the maximum 
        extent possible, the calculation for the threshold for the 
        reference family described in paragraph (1) and the adjustments 
        to the modern poverty thresholds for varied family sizes and 
        compositions under paragraph (2)(A) shall be made separately 
        for each of the following categories of families:
                    ``(A) Families who own their primary residence and 
                do not have a mortgage secured by the residence.
                    ``(B) All other families, or for any subgroups of 
                all other families if the Bureau of Labor Statistics 
                determines that reliable data indicates substantial 
                variation in the amounts of money needed by the 
                subgroups to purchase similar quality shelter.
            ``(4) Annual publication of weighted average poverty 
        thresholds.--Not less often than annually, the Bureau of the 
        Census, in collaboration with the Bureau of Labor Statistics, 
        shall publish--
                    ``(A) the average poverty threshold for each family 
                size, determined by weighting each threshold by the 
                proportion of families of that size to which the 
                threshold applies, and
                    ``(B) the average poverty threshold for each family 
                size in each category described in paragraph (3), 
                determined by weighting each threshold by the 
                proportion of families of that size in that category 
                and to which the threshold applies.
    ``(d) Modern Poverty Rates.--
            ``(1) In general.--The Bureau of the Census shall use the 
        modern poverty thresholds calculated under subsection (c) to 
        calculate, at a minimum--
                    ``(A) the number and percentage of families in the 
                United States whose adjusted market income does not 
                exceed the applicable modern poverty threshold, and the 
                number and percentage of individuals in the United 
                States who are members of such families;
                    ``(B) the number and percentage of families in the 
                United States whose adjusted disposable income does not 
                exceed the applicable modern poverty threshold, and the 
                number and percentage of individuals in the United 
                States who are members of such families; and
                    ``(C) the numbers and percentages described in 
                subparagraphs (A) and (B) for various demographic, 
                geographic, and other subgroups of families in the 
                United States, and for individuals who are members of 
                such subgroups of families.
            ``(2) Adjusted market income.--For purposes of this 
        section, the adjusted market income of a family is--
                    ``(A) the total of the amounts received by any 
                member of the family during a calendar year from wages, 
                salaries, and self-employment income, interest income, 
                dividend income, realized capital gains, rents, 
                royalties, estate and trust income, a qualified 
                retirement plan (as defined in section 4974(c) of the 
                Internal Revenue Code of 1986), a plan described in 
                section 457(b) of such Code, or any other plan, 
                contract, annuity, or account payments or distributions 
                from which are in the nature of a retirement benefit, 
                survivor and disability pensions and annuities, paid-up 
                insurance policies, alimony payments, child support 
                payments, private workers' compensation, regular 
                contributions from persons not living with the family, 
                and other relevant income as determined by the Bureau 
                of the Census except for income described in 
                subparagraph (C), (D), (E), or (F) of paragraph (3) of 
                this subsection; minus
                    ``(B) the total of the amounts paid by any member 
                of the family during the calendar year for--
                            ``(i) alimony or the support or maintenance 
                        of a noncustodial child;
                            ``(ii) medical expenses; and
                            ``(iii) necessary work-related expenses, 
                        including--
                                    ``(I) dependent care expenses;
                                    ``(II) transportation expenses; and
                                    ``(III) if there is reliable data 
                                therefor, work-search expenses.
            ``(3) Adjusted disposable income.--For purposes of this 
        section, the Bureau of the Census shall define the adjusted 
        disposable income of a family as follows, excluding any amounts 
        that are not taken into account in determining poverty 
        thresholds under this section:
                    ``(A) the adjusted market income of the family; 
                minus
                    ``(B) the total of the amounts paid by any member 
                of the family during the calendar year to cover Federal 
                income tax liability or Federal payroll tax liability, 
                or if such information is not available, the total of 
                any such liabilities that are payable by any member of 
                the family during the calendar year; plus
                    ``(C) the total of the amounts received by any 
                member of the family during the calendar year from 
                refundable Federal tax credits, or if such information 
                is not available, the total of any such credits that 
                are expected by any member of the family to be received 
                during the calendar year; plus
                    ``(D) the total of the amounts received by any 
                member of the family during the calendar year which may 
                be used to meet food, clothing, or shelter (including 
                utilities) needs--
                            ``(i) referred to in section 
                        459(h)(1)(A)(ii) of this Act; or
                            ``(ii) paid under a State or local program 
                        funded under part A of title IV of this Act, 
                        the supplemental security income program under 
                        title XVI of this Act, or any other Federal 
                        program or activity the eligibility for which 
                        is based, in whole or in part, on need; plus
                    ``(E) the total dollar value of any food assistance 
                benefit (as defined in section 3(d) of the Food and 
                Nutrition Act of 2008) received by any member of the 
                family during the calendar year under section 8 of the 
                Food and Nutrition Act of 2008; plus
                    ``(F) the total of the amounts received by any 
                member of the family during the calendar year as 
                described in section 2605(b)(2) of the Low-Income Home 
                Energy Assistance Act of 1981; plus
                    ``(G) the total of the amounts received by any 
                member of the family during the calendar year as 
                government-funded nonmedical in-kind, cash and near 
                cash benefits that help families meet food, clothing, 
                and shelter (including utilities) needs and are not 
                intended to reimburse or subsidize other expenses, 
                including nutrition programs, housing subsidies, and 
                the value of public housing, not to exceed to the 
                lesser of the share of the threshold defined in 
                subsection (c) attributable to the component of the 
                threshold towards which the benefit may be used or the 
                estimated monetary value of the benefit to the 
                recipient, to the extent possible.
            ``(4) Inclusion of state and local taxes and transfers.--
        Within 5 years after the date of the enactment of this section, 
        the Bureau of the Census, in collaboration with the Bureau of 
        Labor Statistics, and after consultation with other relevant 
        statistical agencies, shall modify the calculation under 
        paragraph (3) to take account of State and local taxes and 
        transfers.
    ``(e) Families.--For purposes of this section, the term `family' 
includes--
            ``(1) an individual who is living alone;
            ``(2) all members of a household who are related by blood, 
        marriage, adoption, or other legal arrangement; and
            ``(3) any unrelated individuals living together whom the 
        Bureau of the Census, in collaboration with the Bureau of Labor 
        Statistics, after assessing existing research and undertaking 
        any necessary new research, determines should be treated as a 
        family for purposes of this section.
    ``(f) Report on Poverty Rates.--Not less frequently than annually, 
the Bureau of the Census shall produce, release simultaneously with 
publication and announcement of poverty thresholds and rates under the 
traditional poverty measure, and make readily accessible to the public, 
a report which contains detailed tables and explanations of poverty 
rates--
            ``(1) as determined on the basis of adjusted market income;
            ``(2) as determined on the basis of adjusted disposable 
        income; and
            ``(3) as determined on the basis of the traditional poverty 
        measure referred to in subsection (g).
    ``(g) References to Existing Poverty Measure as the `Traditional 
Poverty Measure'.--To the extent practicable, whenever an officer or 
employee of the Federal Government refers to the poverty measure 
outlined in Office of Management and Budget Statistical Policy 
Directive 14, the officer or employee, as the case may be, shall refer 
to that measure as the `traditional poverty measure'. Any reference in 
a law, regulation, document, paper, or other record of the United 
States to the poverty measure outlined in Office of Management and 
Budget Statistical Policy Directive 14 is deemed to be a reference to 
the `traditional poverty measure'.
    ``(h) Inclusion of Information Based on Modern Poverty Thresholds 
and Rates in Published Documents Containing Information Based on 
Traditional Poverty Thresholds and Rates.--
            ``(1) In general.--To the extent possible, a relevant 
        Federal statistical agency that publishes a document which 
        contains information about a subject, which was produced using 
        the poverty measure outlined in Office of Management and Budget 
        Statistical Policy Directive 14, shall include in the document 
        information about the subject, which is produced using the 
        modern poverty thresholds and modern poverty rates calculated 
        under this section.
            ``(2) Public release of microdata file and online tools.--
        On releasing a document described in paragraph (1), the Bureau 
        of the Census shall release to the public, while maintaining 
        privacy and confidentiality standards required by Federal law--
                    ``(A) microdata files (modified as necessary to 
                avoid unduly increasing the risk of serious primary and 
                secondary disclosure problems) containing all of the 
                individual variables that are necessary to compute the 
                published modern poverty rates, as well as poverty 
                rates determined on the basis of the traditional 
                poverty measure referred to in subsection (g), and to 
                calculate poverty rates using different definitions of 
                income and poverty thresholds;
                    ``(B) other public online tools that enable 
                detailed poverty rates to be calculated using different 
                definitions of income and poverty and adequacy 
                thresholds, including \1/2\ and \3/5\ of median income; 
                and
                    ``(C) the definitions of income set forth in, and 
                the poverty thresholds established under, this section.
    ``(i) Consultation on Improving Calculation of the Modern Poverty 
Thresholds or Modern Poverty Rates; Report to the Congress.--From time 
to time, and no less frequently than every 5 years, the Bureau of the 
Census, in collaboration with the Bureau of Labor Statistics, shall--
            ``(1) consult with other relevant Federal statistical 
        agencies and outside experts on whether the method of, and 
        sources of data for, calculating the modern poverty thresholds 
        or modern poverty rates provided for in this section could be 
        improved so as to better measure, including through adjustments 
        for any underreporting or other misreporting of income and 
        adjustments for families with greater income needs (such as 
        those including persons with disabilities), the extent to which 
        families in the United States are able to secure sufficient 
        income to allow a minimal level of consumption that meets their 
        basic physical needs, including food, clothing, shelter 
        (including utilities), and other necessary items; and
            ``(2) report to the Congress on any need for any such 
        improvement.
    ``(j) Relevant Federal Statistical Agency.--In this section, the 
term `relevant Federal statistical agency' means a Federal agency 
that--
            ``(1) is listed as a major statistical program of the 
        United States in the annual report most recently made under 
        section 3504(e)(2) of title 44, United States Code; or
            ``(2) the Office of Management and Budget expects to be so 
        listed in the next such report.
    ``(k) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated--
            ``(1) to the Bureau of the Census--
                    ``(A) for fiscal year 2010, not more than 
                $5,000,000; and
                    ``(B) for each succeeding fiscal year, not more 
                than the amount specified in subparagraph (A), 
                multiplied by the sum of 1 plus the percentage (if any) 
                by which the Consumer Price Index for All-Urban 
                Consumers for September of the fiscal year then 
                preceding the succeeding fiscal year exceeds the index 
                for September of the fiscal year second preceding the 
                succeeding fiscal year; and
            ``(2) to the Bureau of Labor Statistics--
                    ``(A) for fiscal year 2010, not more than 
                $2,500,000; and
                    ``(B) for each succeeding fiscal year, not more 
                than the amount specified in subparagraph (A), 
                multiplied by the sum of 1 plus the percentage (if any) 
                by which the Consumer Price Index for All-Urban 
                Consumers for September of the fiscal year then 
                preceding the succeeding fiscal year exceeds the index 
                for September of the fiscal year second preceding the 
                succeeding fiscal year.

``SEC. 1150B. STUDY OF DECENT LIVING STANDARD.

    ``(a) In General.--The Bureau of the Census, in collaboration with 
the Bureau of Labor Statistics, shall enter into a contract with the 
National Academy of Sciences which obligates the National Academy of 
Sciences to develop and publish a method of calculating a decent living 
standard threshold, including relevant variations for geography, family 
size, and other such factors, and a method of measuring the extent to 
which the income of families in the United States is sufficient to meet 
the threshold. The National Academy of Sciences shall consider and 
critically review the growing body of work in this area, comparing 
different underlying concepts in existing approaches such as family 
budgets, basic needs budgets, and self-sufficiency standards, and 
comment on the best ways to move forward towards building consensus.
    ``(b) Technical Support.--The Bureau of the Census, the Bureau of 
Labor Statistics, and other relevant statistical agencies shall provide 
necessary technical support for the efforts to develop the threshold 
and method referred to in subsection (a).
    ``(c) Definition of Decent Living Standard Threshold.--In 
subsection (a), the term `decent living standard threshold' means the 
amount of annual income that would allow an individual to live at a 
safe and decent, but modest, standard of living. The decent living 
standard shall be a measure of income adequacy reflecting the resources 
necessary to meet basic needs and live beyond deprivation.
    ``(d) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Bureau of 
the Census--
            ``(1) for fiscal year 2010, not more than $500,000; and
            ``(2) for fiscal year 2011, not more than the amount 
        specified in paragraph (1), multiplied by the sum of 1 plus the 
        percentage (if any) by which the Consumer Price Index for All-
        Urban Consumers for September 2010 exceeds the index for 
        September 2009.

``SEC. 1150C. STUDY OF MEDICAL CARE RISK MEASURE.

    ``(a) In General.--The Bureau of the Census, in collaboration with 
the Bureau of Labor Statistics, the Agency for Healthcare Research and 
Quality, and the Centers for Medicare and Medicaid Services shall enter 
into a contract with the National Academies, including the National 
Academy of Sciences and the Institute of Medicine, which obligates the 
National Academies to develop and publish a method of measuring the 
extent of medical care risk in the United States and calculating the 
number and percentage of individuals in the United States who, to 
varying degrees, lack adequate health insurance, placing them at risk 
of being unable to afford needed treatment.
    ``(b) Technical Support.--The Bureau of the Census, the Bureau of 
Labor Statistics, the Agency for Healthcare Research and Quality and 
the Centers for Medicare and Medicaid Services, and other relevant 
health and statistical agencies shall provide necessary technical 
support for the efforts to develop the method and measure referred to 
in subsection (a).
    ``(c) Definition of Medical Care Risk.--In subsection (a), the term 
`medical care risk' means the extent to which individuals are at risk 
of being unable to afford needed medical treatment, services, goods, 
and care.
    ``(d) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Bureau of 
the Census--
            ``(1) for fiscal year 2010, not more than $500,000; and
            ``(2) for fiscal year 2011, not more than the amount 
        specified in paragraph (1), multiplied by the sum of 1 plus the 
        percentage (if any) by which the Consumer Price Index for All-
        Urban Consumers for September 2010 exceeds the index for 
        September 2009.

``SEC. 1150D. STUDY TO IMPROVE STATE AND LOCAL POVERTY MEASUREMENT.

    ``(a) In General.--The Bureau of the Census, in consultation with 
other relevant statistical agencies, shall enter into a contract with 
the National Academy of Sciences which obligates the National Academy 
of Sciences to develop a set of recommendations for methods to 
implement annual modern poverty measurement at the State and local 
level and a timeframe for the implementation. The methods to be 
examined shall include revisions to the American Community Survey 
questionnaire, use of administrative records, and use of modeled 
estimates.
    ``(b) Technical Support.--The Bureau of the Census and other 
relevant statistical agencies shall provide necessary technical support 
for the effort referred to in subsection (a).
    ``(c) Limitations on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated to the Bureau of 
the Census--
            ``(1) for fiscal year 2010, not more than $250,000; and
            ``(2) for fiscal year 2011, not more than the amount 
        specified in paragraph (1); multiplied by the sum of 1 plus the 
        percentage (if any) by which the Consumer Price Index for All-
        Urban Consumers for September 2010 exceeds the index for 
        September 2009.''.
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