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tities described in subsection (b)(3), the Secretary
shall identify existing quality of care measures for
children that are in use under public and privately
sponsored health care coverage arrangements, or that
are part of reporting systems that measure both the
presence and duration of health insurance coverage
over time.
‘‘(3) RECOMMENDATIONS AND DISSEMINATION.—
Based on such existing and identified measures, the
Secretary shall publish an initial core set of child
health quality measures that includes (but is not lim-
ited to) the following:
‘‘(A) The duration of children’s health in-
surance coverage over a 12-month time period.
‘‘(B) The availability of a full range of—
‘‘(i) preventive services, treatments,
and services for acute conditions, including
services to promote healthy birth and pre-
vent and treat premature birth; and
‘‘(ii) treatments to correct or amelio-
rate the effects of chronic physical and men-
tal conditions in infants, young children,
school-age children, and adolescents.
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‘‘(C) The availability of care in a range of
ambulatory and inpatient health care settings in
which such care is furnished.
‘‘(D) The types of measures that, taken to-
gether, can be used to estimate the overall na-
tional quality of health care for children and to
perform comparative analyses of pediatric health
care quality and racial, ethnic, and socio-
economic disparities in child health and health
care for children.
‘‘(4) ENCOURAGE
VOLUNTARY
AND
STANDARD-
IZED REPORTING.—Not later than 2 years after the
date of enactment of the Children’s Health Insurance
Program Reauthorization Act of 2007, the Secretary,
in consultation with States, shall develop a standard-
ized format for reporting information and procedures
and approaches that encourage States to use the ini-
tial core measurement set to voluntarily report infor-
mation regarding the quality of pediatric health care
under titles XIX and XXI.
‘‘(5) ADOPTION OF BEST PRACTICES IN IMPLE-
MENTING QUALITY PROGRAMS.—The Secretary shall
disseminate information to States regarding best
practices among States with respect to measuring and
reporting on the quality of health care for children,
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and shall facilitate the adoption of such best prac-
tices. In developing best practices approaches, the Sec-
retary shall give particular attention to State meas-
urement techniques that ensure the timeliness and ac-
curacy of provider reporting, encourage provider re-
porting compliance, encourage successful quality im-
provement strategies, and improve efficiency in data
collection using health information technology.
‘‘(6) REPORTS TO CONGRESS.—Not later than
January 1, 2010, and every 3 years thereafter, the
Secretary shall report to Congress on—
‘‘(A) the status of the Secretary’s efforts to
improve—
‘‘(i) quality related to the duration
and stability of health insurance coverage
for children under titles XIX and XXI;
‘‘(ii) the quality of children’s health
care under such titles, including preventive
health services, health care for acute condi-
tions, chronic health care, and health serv-
ices to ameliorate the effects of physical and
mental conditions and to aid in growth and
development of infants, young children,
school-age children, and adolescents with
special health care needs; and
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‘‘(iii) the quality of children’s health
care under such titles across the domains of
quality, including clinical quality, health
care safety, family experience with health
care, health care in the most integrated set-
ting, and elimination of racial, ethnic, and
socioeconomic disparities in health and
health care;
‘‘(B) the status of voluntary reporting by
States under titles XIX and XXI, utilizing the
initial core quality measurement set; and
‘‘(C) any recommendations for legislative
changes needed to improve the quality of care
provided to children under titles XIX and XXI,
including recommendations for quality reporting
by States.
‘‘(7) TECHNICAL
ASSISTANCE.—The Secretary
shall provide technical assistance to States to assist
them in adopting and utilizing core child health qual-
ity measures in administering the State plans under
titles XIX and XXI.
‘‘(8) DEFINITION OF CORE SET.—In this section,
the term ‘core set’ means a group of valid, reliable,
and evidence-based quality measures that, taken
together—
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‘‘(A) provide information regarding the
quality of health coverage and health care for
children;
‘‘(B) address the needs of children through-
out the developmental age span; and
‘‘(C) allow purchasers, families, and health
care providers to understand the quality of care
in relation to the preventive needs of children,
treatments aimed at managing and resolving
acute conditions, and diagnostic and treatment
services whose purpose is to correct or ameliorate
physical, mental, or developmental conditions
that could, if untreated or poorly treated, become
chronic.
‘‘(b) ADVANCING AND IMPROVING PEDIATRIC QUALITY
MEASURES.—
‘‘(1) ESTABLISHMENT
OF
PEDIATRIC
QUALITY
MEASURES
PROGRAM.—Not later than January 1,
2010, the Secretary shall establish a pediatric quality
measures program to—
‘‘(A) improve and strengthen the initial
core child health care quality measures estab-
lished by the Secretary under subsection (a);
‘‘(B) expand on existing pediatric quality
measures used by public and private health care
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purchasers and advance the development of such
new and emerging quality measures; and
‘‘(C) increase the portfolio of evidence-based,
consensus pediatric quality measures available to
public and private purchasers of children’s
health care services, providers, and consumers.
‘‘(2) EVIDENCE-BASED
MEASURES.—The meas-
ures developed under the pediatric quality measures
program shall, at a minimum, be—
‘‘(A) evidence-based and, where appropriate,
risk adjusted;
‘‘(B) designed to identify and eliminate ra-
cial and ethnic disparities in child health and
the provision of health care;
‘‘(C) designed to ensure that the data re-
quired for such measures is collected and re-
ported in a standard format that permits com-
parison of quality and data at a State, plan,
and provider level;
‘‘(D) periodically updated; and
‘‘(E) responsive to the child health needs,
services, and domains of health care quality de-
scribed in clauses (i), (ii), and (iii) of subsection
(a)(6)(A).
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‘‘(3) PROCESS FOR PEDIATRIC QUALITY MEAS-
URES PROGRAM.—In identifying gaps in existing pe-
diatric quality measures and establishing priorities
for development and advancement of such measures,
the Secretary shall consult with—
‘‘(A) States;
‘‘(B) pediatricians, children’s hospitals, and
other primary and specialized pediatric health
care professionals (including members of the al-
lied health professions) who specialize in the care
and treatment of children, particularly children
with special physical, mental, and developmental
health care needs;
‘‘(C) dental professionals, including pedi-
atric dental professionals;
‘‘(D) health care providers that furnish pri-
mary health care to children and families who
live in urban and rural medically underserved
communities or who are members of distinct
population sub-groups at heightened risk for
poor health outcomes;
‘‘(E) national organizations representing
consumers and purchasers of children’s health
care;
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‘‘(F) national organizations and individ-
uals with expertise in pediatric health quality
measurement; and
‘‘(G) voluntary consensus standards setting
organizations and other organizations involved
in the advancement of evidence-based measures of
health care.
‘‘(4) DEVELOPING, VALIDATING, AND TESTING A
PORTFOLIO OF PEDIATRIC QUALITY MEASURES.—As
part of the program to advance pediatric quality
measures, the Secretary shall—
‘‘(A) award grants and contracts for the de-
velopment, testing, and validation of new, emerg-
ing, and innovative evidence-based measures for
children’s health care services across the domains
of quality described in clauses (i), (ii), and (iii)
of subsection (a)(6)(A); and
‘‘(B) award grants and contracts for—
‘‘(i) the development of consensus on
evidence-based 
measures 
for 
children’s
health care services;
‘‘(ii) the dissemination of such meas-
ures to public and private purchasers of
health care for children; and
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‘‘(iii) the updating of such measures as
necessary.
‘‘(5) REVISING, STRENGTHENING, AND IMPROV-
ING INITIAL CORE MEASURES.—Beginning no later
than January 1, 2012, and annually thereafter, the
Secretary shall publish recommended changes to the
core measures described in subsection (a) that shall
reflect the testing, validation, and consensus process
for the development of pediatric quality measures de-
scribed in subsection paragraphs (1) through (4).
‘‘(6) DEFINITION OF PEDIATRIC QUALITY MEAS-
URE.—In this subsection, the term ‘pediatric quality
measure’ means a measurement of clinical care that
is capable of being examined through the collection
and analysis of relevant information, that is devel-
oped in order to assess 1 or more aspects of pediatric
health care quality in various institutional and am-
bulatory health care settings, including the structure
of the clinical care system, the process of care, the out-
come of care, or patient experiences in care.
‘‘(c) ANNUAL STATE REPORTS REGARDING STATE-
SPECIFIC QUALITY OF CARE MEASURES APPLIED UNDER
MEDICAID OR CHIP.—
‘‘(1) ANNUAL STATE REPORTS.—Each State with
a State plan approved under title XIX or a State
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child health plan approved under title XXI shall an-
nually report to the Secretary on the—
‘‘(A) State-specific child health quality
measures applied by the States under such plans,
including measures described in subparagraphs
(A) and (B) of subsection (a)(6); and
‘‘(B) State-specific information on the qual-
ity of health care furnished to children under
such plans, including information collected
through external quality reviews of managed care
organizations under section 1932 of the Social
Security Act (42 U.S.C. 1396u–4) and bench-
mark plans under sections 1937 and 2103 of
such Act (42 U.S.C. 1396u–7, 1397cc).
‘‘(2) PUBLICATION.—Not later than September
30, 2009, and annually thereafter, the Secretary shall
collect, analyze, and make publicly available the in-
formation reported by States under paragraph (1).
‘‘(d) DEMONSTRATION PROJECTS FOR IMPROVING THE
QUALITY OF CHILDREN’S HEALTH CARE AND THE USE OF
HEALTH INFORMATION TECHNOLOGY.—
‘‘(1) IN GENERAL.—During the period of fiscal
years 2008 through 2012, the Secretary shall award
not more than 10 grants to States and child health
providers to conduct demonstration projects to evalu-
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ate promising ideas for improving the quality of chil-
dren’s health care provided under title XIX or XXI,
including projects to—
‘‘(A) experiment with, and evaluate the use
of, new measures of the quality of children’s
health care under such titles (including testing
the validity and suitability for reporting of such
measures);
‘‘(B) promote the use of health information
technology in care delivery for children under
such titles;
‘‘(C) evaluate provider-based models which
improve the delivery of children’s health care
services under such titles, including care man-
agement for children with chronic conditions and
the use of evidence-based approaches to improve
the effectiveness, safety, and efficiency of health
care services for children; or
‘‘(D) demonstrate the impact of the model
electronic health record format for children devel-
oped and disseminated under subsection (f) on
improving pediatric health, including the effects
of chronic childhood health conditions, and pedi-
atric health care quality as well as reducing
health care costs.
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‘‘(2) 
REQUIREMENTS.—In 
awarding 
grants
under this subsection, the Secretary shall ensure
that—
‘‘(A) only 1 demonstration project funded
under a grant awarded under this subsection
shall be conducted in a State; and
‘‘(B) demonstration projects funded under
grants awarded under this subsection shall be
conducted evenly between States with large
urban areas and States with large rural areas.
‘‘(3) AUTHORITY FOR MULTISTATE PROJECTS.—
A demonstration project conducted with a grant
awarded under this subsection may be conducted on
a multistate basis, as needed.
‘‘(4) FUNDING.—$20,000,000 of the amount ap-
propriated under subsection (i) for a fiscal year shall
be used to carry out this subsection.
‘‘(e) 
CHILDHOOD
OBESITY
DEMONSTRATION
PROJECT.—
‘‘(1) AUTHORITY
TO
CONDUCT
DEMONSTRA-
TION.—The Secretary, in consultation with the Ad-
ministrator of the Centers for Medicare & Medicaid
Services, shall conduct a demonstration project to de-
velop a comprehensive and systematic model for re-
ducing childhood obesity by awarding grants to eligi-
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ble entities to carry out such project. Such model
shall—
‘‘(A) identify, through self-assessment, be-
havioral risk factors for obesity among children;
‘‘(B) identify, through self-assessment, need-
ed clinical preventive and screening benefits
among those children identified as target indi-
viduals on the basis of such risk factors;
‘‘(C) provide ongoing support to such target
individuals and their families to reduce risk fac-
tors and promote the appropriate use of preven-
tive and screening benefits; and
‘‘(D) be designed to improve health out-
comes, satisfaction, quality of life, and appro-
priate use of items and services for which med-
ical assistance is available under title XIX or
child health assistance is available under title
XXI among such target individuals.
‘‘(2) ELIGIBILITY
ENTITIES.—For purposes of
this subsection, an eligible entity is any of the fol-
lowing:
‘‘(A) A city, county, or Indian tribe.
‘‘(B) A local or tribal educational agency.
‘‘(C) An accredited university, college, or
community college.
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‘‘(D) A Federally-qualified health center.
‘‘(E) A local health department.
‘‘(F) A health care provider.
‘‘(G) A community-based organization.
‘‘(H) Any other entity determined appro-
priate by the Secretary, including a consortia or
partnership of entities described in any of sub-
paragraphs (A) through (G).
‘‘(3) USE OF FUNDS.—An eligible entity award-
ed a grant under this subsection shall use the funds
made available under the grant to—
‘‘(A) carry out community-based activities
related to reducing childhood obesity, including
by—
‘‘(i) forming partnerships with entities,
including schools and other facilities pro-
viding recreational services, to establish
programs for after school and weekend com-
munity activities that are designed to re-
duce childhood obesity;
‘‘(ii) 
forming 
partnerships 
with
daycare facilities to establish programs that
promote healthy eating behaviors and phys-
ical activity; and
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‘‘(iii) developing and evaluating com-
munity educational activities targeting good
nutrition and promoting healthy eating be-
haviors;
‘‘(B) carry out age-appropriate school-based
activities that are designed to reduce childhood
obesity, including by—
‘‘(i) developing and testing educational
curricula and intervention programs de-
signed to promote healthy eating behaviors
and habits in youth, which may include—
‘‘(I) after hours physical activity
programs; and
‘‘(II) science-based interventions
with multiple components to prevent
eating disorders including nutritional
content, understanding and responding
to hunger and satiety, positive body
image development, positive self-esteem
development, and learning life skills
(such as stress management, commu-
nication skills, problemsolving and de-
cisionmaking skills), as well as consid-
eration of cultural and developmental
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issues, and the role of family, school,
and community;
‘‘(ii) providing education and training
to educational professionals regarding how
to promote a healthy lifestyle and a healthy
school environment for children;
‘‘(iii) planning and implementing a
healthy lifestyle curriculum or program
with an emphasis on healthy eating behav-
iors and physical activity; and
‘‘(iv) 
planning 
and 
implementing
healthy lifestyle classes or programs for par-
ents or guardians, with an emphasis on
healthy eating behaviors and physical activ-
ity for children;
‘‘(C) carry out educational, counseling, pro-
motional, and training activities through the
local health care delivery systems including by—
‘‘(i) promoting healthy eating behav-
iors and physical activity services to treat
or prevent eating disorders, being over-
weight, and obesity;
‘‘(ii) providing patient education and
counseling to increase physical activity and
promote healthy eating behaviors;
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‘‘(4) PRIORITY.—In awarding grants under
paragraph (1), the Secretary shall give priority to
awarding grants to eligible entities—
‘‘(A) that demonstrate that they have pre-
viously applied successfully for funds to carry
out activities that seek to promote individual
and community health and to prevent the inci-
dence of chronic disease and that can cite pub-
lished and peer-reviewed research demonstrating
that the activities that the entities propose to
carry out with funds made available under the
grant are effective;
‘‘(B) that will carry out programs or activi-
ties that seek to accomplish a goal or goals set
by the State in the Healthy People 2010 plan of
the State;
‘‘(C) that provide non-Federal contribu-
tions, either in cash or in-kind, to the costs of
funding activities under the grants;
‘‘(D) that develop comprehensive plans that
include a strategy for extending program activi-
ties developed under grants in the years fol-
lowing the fiscal years for which they receive
grants under this subsection;
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‘‘(E) located in communities that are medi-
cally underserved, as determined by the Sec-
retary;
‘‘(F) located in areas in which the average
poverty rate is at least 150 percent or higher of
the average poverty rate in the State involved, as
determined by the Secretary; and
‘‘(G) that submit plans that exhibit multi-
sectoral, cooperative conduct that includes the in-
volvement of a broad range of stakeholders,
including—
‘‘(i) community-based organizations;
‘‘(ii) local governments;
‘‘(iii) local educational agencies;
‘‘(iv) the private sector;
‘‘(v) State or local departments of
health;
‘‘(vi) accredited colleges, universities,
and community colleges;
‘‘(vii) health care providers;
‘‘(viii) State and local departments of
transportation and city planning; and
‘‘(ix) other entities determined appro-
priate by the Secretary.
‘‘(5) PROGRAM DESIGN.—
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‘‘(A) INITIAL
DESIGN.—Not later than 1
year after the date of enactment of the Children’s
Health Insurance Program Reauthorization Act
of 2007, the Secretary shall design the dem-
onstration project. The demonstration should
draw upon promising, innovative models and in-
centives to reduce behavioral risk factors. The
Administrator of the Centers for Medicare &
Medicaid Services shall consult with the Director
of the Centers for Disease Control and Preven-
tion, the Director of the Office of Minority
Health, the heads of other agencies in the De-
partment of Health and Human Services, and
such professional organizations, as the Secretary
determines to be appropriate, on the design, con-
duct, and evaluation of the demonstration.
‘‘(B) NUMBER AND PROJECT AREAS.—Not
later than 2 years after the date of enactment of
the Children’s Health Insurance Program Reau-
thorization Act of 2007, the Secretary shall
award 1 grant that is specifically designed to de-
termine whether programs similar to programs
to be conducted by other grantees under this sub-
section should be implemented with respect to the
general population of children who are eligible
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for child health assistance under State child
health plans under title XXI in order to reduce
the incidence of childhood obesity among such
population.
‘‘(6) REPORT TO CONGRESS.—Not later than 3
years after the date the Secretary implements the
demonstration project under this subsection, the Sec-
retary shall submit to Congress a report that describes
the project, evaluates the effectiveness and cost effec-
tiveness of the project, evaluates the beneficiary satis-
faction under the project, and includes any such other
information as the Secretary determines to be appro-
priate.
‘‘(7) DEFINITIONS.—In this subsection:
‘‘(A) FEDERALLY-QUALIFIED HEALTH CEN-
TER.—The term ‘Federally-qualified health cen-
ter’ has the meaning given that term in section
1905(l)(2)(B).
‘‘(B) INDIAN
TRIBE.—The term ‘Indian
tribe’ has the meaning given that term in section
4 of the Indian Health Care Improvement Act
(25 U.S.C. 1603).
‘‘(C) SELF-ASSESSMENT.—The term ‘self-as-
sessment’ means a form that—
‘‘(i) includes questions regarding—
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‘‘(I) behavioral risk factors;
‘‘(II) 
needed 
preventive 
and
screening services; and
‘‘(III) target individuals’ pref-
erences for receiving follow-up informa-
tion;
‘‘(ii) is assessed using such computer
generated assessment programs; and
‘‘(iii) allows for the provision of such
ongoing support to the individual as the
Secretary determines appropriate.
‘‘(D) ONGOING SUPPORT.—The term ‘ongo-
ing support’ means—
‘‘(i) to provide any target individual
with information, feedback, health coaching,
and recommendations regarding—
‘‘(I) the results of a self-assessment
given to the individual;
‘‘(II) behavior modification based
on the self-assessment; and
‘‘(III) any need for clinical pre-
ventive and screening services or treat-
ment including medical nutrition ther-
apy;
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‘‘(ii) to provide any target individual
with referrals to community resources and
programs available to assist the target indi-
vidual in reducing health risks; and
‘‘(iii) to provide the information de-
scribed in clause (i) to a health care pro-
vider, if designated by the target individual
to receive such information.
‘‘(8) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection, $25,000,000 for the period of fiscal
years 2008 through 2012.
‘‘(f) DEVELOPMENT OF MODEL ELECTRONIC HEALTH
RECORD FORMAT FOR CHILDREN ENROLLED IN MEDICAID
OR CHIP.—
‘‘(1) IN GENERAL.—Not later than January 1,
2009, the Secretary shall establish a program to en-
courage the development and dissemination of a
model electronic health record format for children en-
rolled in the State plan under title XIX or the State
child health plan under title XXI that is—
‘‘(A) subject to State laws, accessible to par-
ents, caregivers, and other consumers for the sole
purpose of demonstrating compliance with school
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or leisure activity requirements, such as appro-
priate immunizations or physicals;
‘‘(B) designed to allow interoperable ex-
changes that conform with Federal and State
privacy and security requirements;
‘‘(C) structured in a manner that permits
parents and caregivers to view and understand
the extent to which the care their children receive
is clinically appropriate and of high quality;
and
‘‘(D) capable of being incorporated into,
and otherwise compatible with, other standards
developed for electronic health records.
‘‘(2) FUNDING.—$5,000,000 of the amount ap-
propriated under subsection (i) for a fiscal year shall
be used to carry out this subsection.
‘‘(g) STUDY OF PEDIATRIC HEALTH AND HEALTH
CARE QUALITY MEASURES.—
‘‘(1) IN GENERAL.—Not later than July 1, 2009,
the Institute of Medicine shall study and report to
Congress on the extent and quality of efforts to meas-
ure child health status and the quality of health care
for children across the age span and in relation to
preventive care, treatments for acute conditions, and
treatments aimed at ameliorating or correcting phys-
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school readiness and educational achievement
and attainment; and
‘‘(D) make recommendations regarding im-
proving and strengthening the timeliness, qual-
ity, and public transparency and accessibility of
information about child health and health care
quality.
‘‘(2) FUNDING.—Up to $1,000,000 of the amount
appropriated under subsection (i) for a fiscal year
shall be used to carry out this subsection.
‘‘(h) RULE OF CONSTRUCTION.—Notwithstanding any
other provision in this section, no evidence based quality
measure developed, published, or used as a basis of measure-
ment or reporting under this section may be used to estab-
lish an irrebuttable presumption regarding either the med-
ical necessity of care or the maximum permissible coverage
for any individual child who is eligible for and receiving
medical assistance under title XIX or child health assist-
ance under title XXI .
‘‘(i) APPROPRIATION.—Out of any funds in the Treas-
ury not otherwise appropriated, there is appropriated for
each of fiscal years 2008 through 2012, $45,000,000 for the
purpose of carrying out this section (other than subsection
(e)). Funds appropriated under this subsection shall remain
available until expended.’’.
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(b) INCREASED MATCHING RATE FOR COLLECTING
AND REPORTING ON CHILD HEALTH MEASURES.—Section
1903(a)(3)(A) (42 U.S.C. 1396b(a)(3)(A)), is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
and
(2) by adding at the end the following new
clause:
‘‘(iii) an amount equal to the Federal med-
ical assistance percentage (as defined in section
1905(b)) of so much of the sums expended during
such quarter (as found necessary by the Sec-
retary for the proper and efficient administra-
tion of the State plan) as are attributable to such
developments or modifications of systems of the
type described in clause (i) as are necessary for
the efficient collection and reporting on child
health measures; and’’.
SEC. 502. IMPROVED INFORMATION REGARDING ACCESS TO
COVERAGE UNDER CHIP.
(a) INCLUSION OF PROCESS AND ACCESS MEASURES
IN ANNUAL STATE REPORTS.—Section 2108 (42 U.S.C.
1397hh) is amended—
(1) in subsection (a), in the matter preceding
paragraph (1), by striking ‘‘The State’’ and inserting
‘‘Subject to subsection (e), the State’’; and
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(2) by adding at the end the following new sub-
section:
‘‘(e) INFORMATION REQUIRED
FOR INCLUSION
IN
STATE ANNUAL REPORT.—The State shall include the fol-
lowing information in the annual report required under
subsection (a):
‘‘(1) Eligibility criteria, enrollment, and reten-
tion data (including data with respect to continuity
of coverage or duration of benefits).
‘‘(2) Data regarding the extent to which the
State uses process measures with respect to deter-
mining the eligibility of children under the State
child health plan, including measures such as 12-
month continuous eligibility, self-declaration of in-
come for applications or renewals, or presumptive eli-
gibility.
‘‘(3) Data regarding denials of eligibility and re-
determinations of eligibility.
‘‘(4) Data regarding access to primary and spe-
cialty services, access to networks of care, and care co-
ordination provided under the State child health
plan, using quality care and consumer satisfaction
measures included in the Consumer Assessment of
Healthcare Providers and Systems (CAHPS) survey.
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‘‘(5) If the State provides child health assistance
in the form of premium assistance for the purchase of
coverage under a group health plan, data regarding
the provision of such assistance, including the extent
to which employer-sponsored health insurance cov-
erage is available for children eligible for child health
assistance under the State child health plan, the
range of the monthly amount of such assistance pro-
vided on behalf of a child or family, the number of
children or families provided such assistance on a
monthly basis, the income of the children or families
provided such assistance, the benefits and cost-sharing
protection provided under the State child health plan
to supplement the coverage purchased with such pre-
mium assistance, the effective strategies the State en-
gages in to reduce any administrative barriers to the
provision of such assistance, and, the effects, if any,
of the provision of such assistance on preventing the
coverage provided under the State child health plan
from substituting for coverage provided under em-
ployer-sponsored health insurance offered in the State.
‘‘(6) To the extent applicable, a description of
any State activities that are designed to reduce the
number of uncovered children in the State, including
through a State health insurance connector program
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or support for innovative private health coverage ini-
tiatives.’’.
(b) GAO STUDY AND REPORT ON ACCESS TO PRIMARY
AND SPECIALITY SERVICES.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study of children’s
access to primary and specialty services under Med-
icaid and CHIP, including—
(A) the extent to which providers are will-
ing to treat children eligible for such programs;
(B) information on such children’s access to
networks of care;
(C) geographic availability of primary and
specialty services under such programs;
(D) the extent to which care coordination is
provided for children’s care under Medicaid and
CHIP; and
(E) as appropriate, information on the de-
gree of availability of services for children under
such programs.
(2) REPORT.—Not later than 2 years after the
date of enactment of this Act, the Comptroller General
shall submit a report to the appropriate committees
of Congress on the study conducted under paragraph
(1) that includes recommendations for such Federal
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and State legislative and administrative changes as
the Comptroller General determines are necessary to
address any barriers to access to children’s care under
Medicaid and CHIP that may exist.
SEC. 503. APPLICATION OF CERTAIN MANAGED CARE QUAL-
ITY SAFEGUARDS TO CHIP.
Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)), as
amended by section 204(b), is amended by redesignating
subparagraph (E) (as added by such section) as subpara-
graph (F) and by inserting after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) Subsections (a)(4), (a)(5), (b), (c), (d),
and (e) of section 1932 (relating to requirements
for managed care).’’.
TITLE VI—MISCELLANEOUS
SEC. 601. TECHNICAL CORRECTION REGARDING CURRENT
STATE AUTHORITY UNDER MEDICAID.
(a) IN GENERAL.—Only with respect to expenditures
for medical assistance under a State Medicaid plan, includ-
ing any waiver of such plan, for fiscal years 2007 and 2008,
a State may elect, notwithstanding the fourth sentence of
subsection (b) of section 1905 of the Social Security Act
(42 U.S.C. 1396d) or subsection (u) of such section—
(1) to cover individuals described in section
1902(a)(10)(A)(ii)(IX) of the Social Security Act and,
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health plan in accordance with the Im-
proper Payments Information Act of 2002
and parts 431 and 457 of title 42, Code of
Federal Regulations (or any related or suc-
cessor guidance or regulations).’’.
(b) FINAL RULE REQUIRED TO BE IN EFFECT FOR
ALL STATES.—Notwithstanding parts 431 and 457 of title
42, Code of Federal Regulations (as in effect on the date
of enactment of this Act), the Secretary shall not calculate
or publish any national or State-specific error rate based
on the application of the payment error rate measurement
(in this section referred to as ‘‘PERM’’) requirements to
CHIP until after the date that is 6 months after the date
on which a final rule implementing such requirements in
accordance with the requirements of subsection (c) is in ef-
fect for all States. Any calculation of a national error rate
or a State specific error rate after such final rule in effect
for all States may only be inclusive of errors, as defined
in such final rule or in guidance issued within a reasonable
time frame after the effective date for such final rule that
includes detailed guidance for the specific methodology for
error determinations.
(c) REQUIREMENTS FOR FINAL RULE.—For purposes
of subsection (b), the requirements of this subsection are that
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the final rule implementing the PERM requirements shall
include—
(1) clearly defined criteria for errors for both
States and providers;
(2) a clearly defined process for appealing error
determinations by review contractors; and
(3) clearly defined responsibilities and deadlines
for States in implementing any corrective action
plans.
(d) OPTION FOR APPLICATION OF DATA FOR CERTAIN
STATES UNDER THE INTERIM FINAL RULE.—
(1) OPTION FOR STATES IN FIRST APPLICATION
CYCLE.—After the final rule implementing the PERM
requirements in accordance with the requirements of
subsection (c) is in effect for all States, a State for
which the PERM requirements were first in effect
under an interim final rule for fiscal year 2007 may
elect to accept any payment error rate determined in
whole or in part for the State on the basis of data
for that fiscal year or may elect to not have any pay-
ment error rate determined on the basis of such data
and, instead, shall be treated as if fiscal year 2010
were the first fiscal year for which the PERM require-
ments apply to the State.
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(2) OPTION FOR STATES IN SECOND APPLICATION
CYCLE.—If such final rule is not in effect for all
States by July 1, 2008, a State for which the PERM
requirements were first in effect under an interim
final rule for fiscal year 2008 may elect to accept any
payment error rate determined in whole or in part
for the State on the basis of data for that fiscal year
or may elect to not have any payment error rate de-
termined on the basis of such data and, instead, shall
be treated as if fiscal year 2011 were the first fiscal
year for which the PERM requirements apply to the
State.
(e) HARMONIZATION OF MEQC AND PERM.—
(1) REDUCTION OF REDUNDANCIES.—The Sec-
retary shall review the Medicaid Eligibility Quality
Control (in this subsection referred to as the
‘‘MEQC’’) requirements with the PERM requirements
and coordinate consistent implementation of both sets
of requirements, while reducing redundancies.
(2) STATE OPTION TO APPLY PERM DATA.—A
State may elect, for purposes of determining the erro-
neous excess payments for medical assistance ratio
applicable to the State for a fiscal year under section
1903(u) of the Social Security Act (42 U.S.C.
1396b(u)) to substitute data resulting from the appli-
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cation of the PERM requirements to the State after
the final rule implementing such requirements is in
effect for all States for data obtained from the appli-
cation of the MEQC requirements to the State with
respect to a fiscal year.
(f) IDENTIFICATION
OF IMPROVED STATE-SPECIFIC
SAMPLE SIZES.—The Secretary shall establish State-spe-
cific sample sizes for application of the PERM requirements
with respect to State child health plans for fiscal years be-
ginning with fiscal year 2009, on the basis of such informa-
tion as the Secretary determines appropriate. In estab-
lishing such sample sizes, the Secretary shall, to the greatest
extent practicable—
(1) minimize the administrative cost burden on
States under Medicaid and CHIP; and
(2) maintain State flexibility to manage such
programs.
SEC. 603. ELIMINATION OF COUNTING MEDICAID CHILD
PRESUMPTIVE ELIGIBILITY COSTS AGAINST
TITLE XXI ALLOTMENT.
Section 2105(a)(1) (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
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percentage (as defined in the first sentence of section
1905(b)))’’; and
(2) by striking subparagraph (B) and inserting
the following new subparagraph:
‘‘(B) [reserved]’’.
SEC. 604. IMPROVING DATA COLLECTION.
(a) INCREASED APPROPRIATION.—Section 2109(b)(2)
(42 
U.S.C. 
1397ii(b)(2)) 
is 
amended 
by 
striking
‘‘$10,000,000 for fiscal year 2000’’ and inserting
‘‘$20,000,000 for fiscal year 2008’’.
(b) USE OF ADDITIONAL FUNDS.—Section 2109(b) (42
U.S.C. 1397ii(b)), as amended by subsection (a), is
amended—
(1) by redesignating paragraph (2) as para-
graph (4); and
(2) by inserting after paragraph (1), the fol-
lowing new paragraphs:
‘‘(2) ADDITIONAL REQUIREMENTS.—In addition
to making the adjustments required to produce the
data described in paragraph (1), with respect to data
collection occurring for fiscal years beginning with
fiscal year 2008, in appropriate consultation with the
Secretary of Health and Human Services, the Sec-
retary of Commerce shall do the following:
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‘‘(A) Make appropriate adjustments to the
Current Population Survey to develop more ac-
curate State-specific estimates of the number of
children enrolled in health coverage under title
XIX or this title.
‘‘(B) Make appropriate adjustments to the
Current Population Survey to improve the sur-
vey estimates used to compile the State-specific
and national number of low-income children
without health insurance for purposes of deter-
mining allotments under subsections (c) and (i)
of section 2104 and making payments to States
from the CHIP Incentive Bonuses Pool estab-
lished under subsection (j) of such section, the
CHIP Contingency Fund established under sub-
section (k) of such section, and, to the extent ap-
plicable to a State, from the block grant set aside
under section 2111(b)(2)(B)(i) for each of fiscal
years 2010 through 2012.
‘‘(C) Include health insurance survey infor-
mation in the American Community Survey re-
lated to children.
‘‘(D) Assess whether American Community
Survey estimates, once such survey data are first
available, produce more reliable estimates than
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for the purposes described in paragraph (2)(B), the
Secretary of Health and Human Services may pro-
vide for a period during which the Secretary may
transition from carrying out such purposes through
the use of Current Population Survey estimates to the
use of American Community Survey estimates (in
lieu of, or in combination with the Current Popu-
lation Survey estimates, as recommended), provided
that any such transition is implemented in a manner
that is designed to avoid adverse impacts upon States
with approved State child health plans under this
title.’’.
SEC. 605. DEFICIT REDUCTION ACT TECHNICAL CORREC-
TIONS.
(a) STATE FLEXIBILITY IN BENEFIT PACKAGES.—
(1) CLARIFICATION OF REQUIREMENT TO PRO-
VIDE EPSDT SERVICES FOR ALL CHILDREN IN BENCH-
MARK BENEFIT PACKAGES.—Section 1937(a)(1) (42
U.S.C. 1396u–7(a)(1)), as inserted by section 6044(a)
of the Deficit Reduction Act of 2005 (Public Law
109–171, 120 Stat. 88), is amended—
(A) in subparagraph (A)—
(i) in the matter before clause (i), by
striking ‘‘enrollment in coverage that pro-
vides’’ and inserting ‘‘coverage that’’;
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(ii) in clause (i), by inserting ‘‘pro-
vides’’ after ‘‘(i)’’; and
(iii) by striking clause (ii) and insert-
ing the following:
‘‘(ii) for any individual described in
section 1905(a)(4)(B) who is eligible under
the State plan in accordance with para-
graphs (10) and (17) of section 1902(a),
consists of the items and services described
in section 1905(a)(4)(B) (relating to early
and periodic screening, diagnostic, and
treatment 
services 
defined 
in 
section
1905(r)) and provided in accordance with
the requirements of section 1902(a)(43).’’;
(B) in subparagraph (C)—
(i) in the heading, by striking ‘‘WRAP-
AROUND’’ and inserting ‘‘ADDITIONAL’’; and
(ii) by striking ‘‘wrap-around or’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(E) RULE OF CONSTRUCTION.—Nothing in
this paragraph shall be construed as—
‘‘(i) requiring a State to offer all or
any of the items and services required by
subparagraph (A)(ii) through an issuer of
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benchmark coverage described in subsection
(b)(1) or benchmark equivalent coverage de-
scribed in subsection (b)(2); or
‘‘(ii) preventing a State from offering
all or any of the items and services required
by subparagraph (A)(ii) through an issuer
of benchmark coverage described in sub-
section (b)(1) or benchmark equivalent cov-
erage described in subsection (b)(2).’’.
(2) CORRECTION OF REFERENCE TO CHILDREN
IN FOSTER CARE RECEIVING CHILD WELFARE SERV-
ICES.—Section 1937(a)(2)(B)(viii) (42 U.S.C. 1396u–
7(a)(2)(B)(viii), as inserted by section 6044(a) of the
Deficit Reduction Act of 2005, is amended by striking
‘‘aid or assistance is made available under part B of
title IV to children in foster care and individuals’’
and inserting ‘‘child welfare services are made avail-
able under part B of title IV on the basis of being a
child in foster care or’’.
(3) TRANSPARENCY.—Section 1937 (42 U.S.C.
1396u–7), as inserted by section 6044(a) of the Deficit
Reduction Act of 2005, is amended by adding at the
end the following:
‘‘(c) PUBLICATION OF PROVISIONS AFFECTED.—Not
later than 30 days after the date the Secretary approves
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a State plan amendment to provide benchmark benefits in
accordance with subsections (a) and (b), the Secretary shall
publish in the Federal Register and on the Internet website
of the Centers for Medicare & Medicaid Services, a list of
the provisions of this title that the Secretary has determined
do not apply in order to enable the State to carry out such
plan amendment and the reason for each such determina-
tion.’’.
(4) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if included in
the amendment made by section 6044(a) of the Deficit
Reduction Act of 2005.
SEC. 606. ELIMINATION OF CONFUSING PROGRAM REF-
ERENCES.
Section 704 of the Medicare, Medicaid, and SCHIP
Balanced Budget Refinement Act of 1999, as enacted into
law by division B of Public Law 106–113 (113 Stat.
1501A–402) is repealed.
SEC. 607. MENTAL HEALTH PARITY IN CHIP PLANS.
(a) ASSURANCE
OF PARITY.—Section 2103(c) (42
U.S.C. 1397cc(c)) is amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4), the fol-
lowing:
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‘‘(5) MENTAL HEALTH SERVICES PARITY.—
‘‘(A) IN GENERAL.—In the case of a State
child health plan that provides both medical and
surgical benefits and mental health or substance
abuse benefits, such plan shall ensure that the fi-
nancial requirements and treatment limitations
applicable to such mental health or substance
abuse benefits are no more restrictive than the fi-
nancial requirements and treatment limitations
applied to substantially all medical and surgical
benefits covered by the plan.
‘‘(B) DEEMED COMPLIANCE.—To the extent
that a State child health plan includes coverage
with respect to an individual described in section
1905(a)(4)(B) and covered under the State plan
under section 1902(a)(10)(A) of the services de-
scribed in section 1905(a)(4)(B) (relating to
early and periodic screening, diagnostic, and
treatment services defined in section 1905(r))
and 
provided 
in 
accordance 
with 
section
1902(a)(43), such plan shall be deemed to satisfy
the requirements of subparagraph (A).’’.
(b) CONFORMING AMENDMENTS.—Section 2103 (42
U.S.C. 1397cc) is amended—
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(1) in subsection (a), in the matter preceding
paragraph (1), by striking ‘‘subsection (c)(5)’’ and in-
serting ‘‘paragraphs (5) and (6) of subsection (c)’’;
and
(2) in subsection (c)(2), by striking subpara-
graph (B) and redesignating subparagraphs (C) and
(D) as subparagraphs (B) and (C), respectively.
SEC. 608. DENTAL HEALTH GRANTS.
(a) IN GENERAL.—Title XXI (42 U.S.C. 1397aa et
seq.), as amended by section 201, is amended by adding
at the end the following:
‘‘SEC. 2114. DENTAL HEALTH GRANTS.
‘‘(a) AUTHORITY TO AWARD GRANTS.—
‘‘(1) IN
GENERAL.—From the amount appro-
priated under subsection (f), the Secretary shall
award grants from amounts to eligible States for the
purpose of carrying out programs and activities that
are designed to improve the availability of dental
services and strengthen dental coverage for targeted
low-income children enrolled in State child health
plans.
‘‘(2) ELIGIBLE STATE.—In this section, the term
‘eligible State’ means a State with an approved State
child health plan under this title that submits an ap-
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‘‘(f) APPROPRIATION.—Out of any funds in the Treas-
ury not otherwise appropriated, there is appropriated,
$200,000,000 for the period of fiscal years 2008 through
2012, to remain available until expended, for the purpose
of awarding grants to States 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.’’.
(b) IMPROVED ACCESSIBILITY OF DENTAL PROVIDER
INFORMATION MORE ACCESSIBLE TO ENROLLEES UNDER
MEDICAID AND CHIP.—The Secretary shall—
(1) work with States, pediatric dentists, and
other dental providers to include on the Insure Kids
Now website (http://www.insurekidsnow.gov/) and hot-
line (1–877–KIDS–NOW) a current and accurate list
of all dentists and other dental providers within each
State that provide dental services to children enrolled
in the State plan (or waiver) under Medicaid or the
State child health plan (or waiver) under CHIP, and
shall ensure that such list is updated at least quar-
terly; and
(2) work with States to include a description of
the dental services provided under each State plan (or
waiver) under Medicaid and each State child health
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plan (or waiver) under CHIP on such Insure Kids
Now website.
(c) GAO STUDY AND REPORT ON ACCESS TO ORAL
HEALTH CARE, INCLUDING PREVENTIVE AND RESTORA-
TIVE SERVICES.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study of children’s
access to oral health care, including preventive and
restorative services, under Medicaid and CHIP,
including—
(A) the extent to which providers are will-
ing to treat children eligible for such programs;
(B) information on such children’s access to
networks of care;
(C) geographic availability of oral health
care, including preventive and restorative serv-
ices, under such programs; and
(D) as appropriate, information on the de-
gree of availability of oral health care, including
preventive and restorative services, for children
under such programs.
(2) REPORT.—Not later than 2 years after the
date of enactment of this Act, the Comptroller General
shall submit a report to the appropriate committees
of Congress on the study conducted under paragraph
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(1) that includes recommendations for such Federal
and State legislative and administrative changes as
the Comptroller General determines are necessary to
address any barriers to access to oral health care, in-
cluding preventive and restorative services, under
Medicaid and CHIP that may exist.
(d) INCLUSION OF STATUS OF EFFORTS TO IMPROVE
DENTAL CARE IN REPORTS ON THE QUALITY OF CHIL-
DREN’S HEALTH CARE UNDER MEDICAID AND CHIP.—
Section 1139A(a)(6)(ii), as added by section 501(a), is
amended by inserting ‘‘dental care,’’ after ‘‘preventive
health services,’’.
SEC. 609. APPLICATION OF PROSPECTIVE PAYMENT SYSTEM
FOR SERVICES PROVIDED BY FEDERALLY-
QUALIFIED HEALTH CENTERS AND RURAL
HEALTH CLINICS.
(a) APPLICATION
OF PROSPECTIVE PAYMENT SYS-
TEM.—
(1) IN GENERAL.—Section 2107(e)(1) (42 U.S.C.
1397gg(e)(1)), as amended by sections 204(b) and
503, is amended by inserting after subparagraph (A)
the following new subparagraph (and redesignating
the succeeding subparagraphs accordingly):
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‘‘(B) Section 1902(bb) (relating to payment
for services provided by Federally-qualified
health centers and rural health clinics).’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall apply to services provided on or
after October 1, 2008.
(b) TRANSITION GRANTS.—
(1) APPROPRIATION.—Out of any funds in the
Treasury not otherwise appropriated, there is appro-
priated to the Secretary for fiscal year 2008,
$5,000,000, to remain available until expended, for
the purpose of awarding grants to States with State
child health plans under CHIP that are operated sep-
arately from the State Medicaid plan under title XIX
of the Social Security Act (including any waiver of
such plan), or in combination with the State Med-
icaid plan, for expenditures related to transitioning
to compliance with the requirement of section
2107(e)(1)(B) of the Social Security Act (as added by
subsection (a)) to apply the prospective payment sys-
tem established under section 1902(bb) of the such Act
(42 U.S.C. 1396a(bb)) to services provided by Feder-
ally-qualified health centers and rural health clinics.
(2) MONITORING AND REPORT.—The Secretary
shall monitor the impact of the application of such
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prospective payment system on the States described in
paragraph (1) and, not later than October 1, 2010,
shall report to Congress on any effect on access to ben-
efits, provider payment rates, or scope of benefits of-
fered by such States as a result of the application of
such payment system.
SEC. 610. SUPPORT FOR INJURED SERVICEMEMBERS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Support for Injured Servicemembers Act’’.
(b) SERVICEMEMBER FAMILY LEAVE.—
(1) DEFINITIONS.—Section 101 of the Family
and Medical Leave Act of 1993 (29 U.S.C. 2611) is
amended by adding at the end the following:
‘‘(14) ACTIVE
DUTY.—The term ‘active duty’
means duty under a call or order to active duty
under a provision of law referred to in section
101(a)(13)(B) of title 10, United States Code.
‘‘(15) COVERED
SERVICEMEMBER.—The term
‘covered servicemember’ means a member of the
Armed Forces, including a member of the National
Guard or a Reserve, who is undergoing medical treat-
ment, recuperation, or therapy, is otherwise in med-
ical hold or medical holdover status, or is otherwise
on the temporary disability retired list, for a serious
injury or illness.
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‘‘(16) MEDICAL HOLD OR MEDICAL HOLDOVER
STATUS.—The term ‘medical hold or medical holdover
status’ means—
‘‘(A) the status of a member of the Armed
Forces, including a member of the National
Guard or a Reserve, assigned or attached to a
military hospital for medical care; and
‘‘(B) the status of a member of a reserve
component of the Armed Forces who is separated,
whether 
pre-deployment 
or 
post-deployment,
from the member’s unit while in need of health
care based on a medical condition identified
while the member is on active duty in the Armed
Forces.
‘‘(17) NEXT OF KIN.—The term ‘next of kin’,
used with respect to an individual, means the nearest
blood relative of that individual.
‘‘(18) SERIOUS INJURY OR ILLNESS.—The term
‘serious injury or illness’, in the case of a member of
the Armed Forces, means an injury or illness in-
curred by the member in line of duty on active duty
in the Armed Forces that may render the member
medically unfit to perform the duties of the member’s
office, grade, rank, or rating.’’.
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(2) ENTITLEMENT TO LEAVE.—Section 102(a) of
such Act (29 U.S.C. 2612(a)) is amended by adding
at the end the following:
‘‘(3) SERVICEMEMBER FAMILY LEAVE.—Subject
to section 103, an eligible employee who is the spouse,
son, daughter, parent, or next of kin of a covered
servicemember shall be entitled to a total of 26 work-
weeks of leave during a 12-month period to care for
the servicemember. The leave described in this para-
graph shall only be available during a single 12-
month period.
‘‘(4) COMBINED LEAVE TOTAL.—During the sin-
gle 12-month period described in paragraph (3), an
eligible employee shall be entitled to a combined total
of 26 workweeks of leave under paragraphs (1) and
(3). Nothing in this paragraph shall be construed to
limit the availability of leave under paragraph (1)
during any other 12-month period.’’.
(3) REQUIREMENTS RELATING TO LEAVE.—
(A) SCHEDULE.—Section 102(b) of such Act
(29 U.S.C. 2612(b)) is amended—
(i) in paragraph (1), in the second
sentence—
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(I) by striking ‘‘section 103(b)(5)’’
and inserting ‘‘subsection (b)(5) or (f)
(as appropriate) of section 103’’; and
(II) by inserting ‘‘or under sub-
section 
(a)(3)’’ 
after 
‘‘subsection
(a)(1)’’; and
(ii) in paragraph (2), by inserting ‘‘or
under subsection (a)(3)’’ after ‘‘subsection
(a)(1)’’.
(B) SUBSTITUTION OF PAID LEAVE.—Sec-
tion 102(d) of such Act (29 U.S.C. 2612(d)) is
amended—
(i) in paragraph (1)—
(I) by inserting ‘‘(or 26 work-
weeks in the case of leave provided
under subsection (a)(3))’’ after ‘‘12
workweeks’’ the first place it appears;
and
(II) by inserting ‘‘(or 26 work-
weeks, as appropriate)’’ after ‘‘12
workweeks’’ the second place it ap-
pears; and
(ii) in paragraph (2)(B), by adding at
the end the following: ‘‘An eligible employee
may elect, or an employer may require the
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employee, to substitute any of the accrued
paid vacation leave, personal leave, family
leave, or medical or sick leave of the em-
ployee for leave provided under subsection
(a)(3) for any part of the 26-week period of
such leave under such subsection.’’.
(C) NOTICE.—Section 102(e)(2) of such Act
(29 U.S.C. 2612(e)(2)) is amended by inserting
‘‘or under subsection (a)(3)’’ after ‘‘subsection
(a)(1)’’.
(D) SPOUSES
EMPLOYED
BY
SAME
EM-
PLOYER.—Section 102(f) of such Act (29 U.S.C.
2612(f)) is amended—
(i) by redesignating paragraphs (1)
and (2) as subparagraphs (A) and (B), and
aligning the margins of the subparagraphs
with the margins of section 102(e)(2)(A);
(ii) by striking ‘‘In any’’ and inserting
the following:
‘‘(1) IN GENERAL.—In any’’; and
(iii) by adding at the end the fol-
lowing:
‘‘(2) SERVICEMEMBER FAMILY LEAVE.—
‘‘(A) IN GENERAL.—The aggregate number
of workweeks of leave to which both that husband
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and wife may be entitled under subsection (a)
may be limited to 26 workweeks during the sin-
gle 12-month period described in subsection
(a)(3) if the leave is—
‘‘(i) leave under subsection (a)(3); or
‘‘(ii) a combination of leave under sub-
section (a)(3) and leave described in para-
graph (1).
‘‘(B) BOTH
LIMITATIONS
APPLICABLE.—If
the leave taken by the husband and wife includes
leave described in paragraph (1), the limitation
in paragraph (1) shall apply to the leave de-
scribed in paragraph (1).’’.
(E) CERTIFICATION.—Section 103 of such
Act (29 U.S.C. 2613) is amended by adding at
the end the following:
‘‘(f) CERTIFICATION
FOR SERVICEMEMBER FAMILY
LEAVE.—An employer may require that a request for leave
under section 102(a)(3) be supported by a certification
issued at such time and in such manner as the Secretary
may by regulation prescribe.’’.
(F) FAILURE TO RETURN.—Section 104(c)
of such Act (29 U.S.C. 2614(c)) is amended—
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(i) in paragraph (2)(B)(i), by insert-
ing ‘‘or under section 102(a)(3)’’ before the
semicolon; and
(ii) in paragraph (3)(A)—
(I) in clause (i), by striking ‘‘or’’
at the end;
(II) in clause (ii), by striking the
period and inserting ‘‘; or’’; and
(III) by adding at the end the fol-
lowing:
‘‘(iii) a certification issued by the
health care provider of the servicemember
being cared for by the employee, in the case
of an employee unable to return to work be-
cause of a condition specified in section
102(a)(3).’’.
(G) ENFORCEMENT.—Section 107 of such
Act (29 U.S.C. 2617) is amended, in subsection
(a)(1)(A)(i)(II), by inserting ‘‘(or 26 weeks, in a
case involving leave under section 102(a)(3))’’
after ‘‘12 weeks’’.
(H) INSTRUCTIONAL EMPLOYEES.—Section
108 of such Act (29 U.S.C. 2618) is amended, in
subsections (c)(1), (d)(2), and (d)(3), by insert-
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ing ‘‘or under section 102(a)(3)’’ after ‘‘section
102(a)(1)’’.
(c) SERVICEMEMBER FAMILY LEAVE FOR CIVIL SERV-
ICE EMPLOYEES.—
(1) DEFINITIONS.—Section 6381 of title 5,
United States Code, is amended—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) in paragraph (6), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(7) the term ‘active duty’ means duty under a
call or order to active duty under a provision of law
referred to in section 101(a)(13)(B) of title 10, United
States Code;
‘‘(8) the term ‘covered servicemember’ means a
member of the Armed Forces, including a member of
the National Guard or a Reserve, who is undergoing
medical treatment, recuperation, or therapy, is other-
wise in medical hold or medical holdover status, or is
otherwise on the temporary disability retired list, for
a serious injury or illness;
‘‘(9) the term ‘medical hold or medical holdover
status’ means—
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‘‘(A) the status of a member of the Armed
Forces, including a member of the National
Guard or a Reserve, assigned or attached to a
military hospital for medical care; and
‘‘(B) the status of a member of a reserve
component of the Armed Forces who is separated,
whether 
pre-deployment 
or 
post-deployment,
from the member’s unit while in need of health
care based on a medical condition identified
while the member is on active duty in the Armed
Forces;
‘‘(10) the term ‘next of kin’, used with respect to
an individual, means the nearest blood relative of
that individual; and
‘‘(11) the term ‘serious injury or illness’, in the
case of a member of the Armed Forces, means an in-
jury or illness incurred by the member in line of duty
on active duty in the Armed Forces that may render
the member medically unfit to perform the duties of
the member’s office, grade, rank, or rating.’’.
(2) ENTITLEMENT TO LEAVE.—Section 6382(a)
of such title is amended by adding at the end the fol-
lowing:
‘‘(3) Subject to section 6383, an employee who is
the spouse, son, daughter, parent, or next of kin of a
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covered servicemember shall be entitled to a total of
26 administrative workweeks of leave during a 12-
month period to care for the servicemember. The leave
described in this paragraph shall only be available
during a single 12-month period.
‘‘(4) During the single 12-month period described
in paragraph (3), an employee shall be entitled to a
combined total of 26 administrative workweeks of
leave under paragraphs (1) and (3). Nothing in this
paragraph shall be construed to limit the availability
of leave under paragraph (1) during any other 12-
month period.’’.
(3) REQUIREMENTS RELATING TO LEAVE.—
(A) SCHEDULE.—Section 6382(b) of such
title is amended—
(i) in paragraph (1), in the second
sentence—
(I) 
by 
striking 
‘‘section
6383(b)(5)’’ and inserting ‘‘subsection
(b)(5) or (f) (as appropriate) of section
6383’’; and
(II) by inserting ‘‘or under sub-
section 
(a)(3)’’ 
after 
‘‘subsection
(a)(1)’’; and
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(ii) in paragraph (2), by inserting ‘‘or
under subsection (a)(3)’’ after ‘‘subsection
(a)(1)’’.
(B) SUBSTITUTION OF PAID LEAVE.—Sec-
tion 6382(d) of such title is amended by adding
at the end the following: ‘‘An employee may elect
to substitute for leave under subsection (a)(3)
any of the employee’s accrued or accumulated
annual or sick leave under subchapter I for any
part of the 26-week period of leave under such
subsection.’’.
(C) NOTICE.—Section 6382(e) of such title
is amended by inserting ‘‘or under subsection
(a)(3)’’ after ‘‘subsection (a)(1)’’.
(D) CERTIFICATION.—Section 6383 of such
title is amended by adding at the end the fol-
lowing:
‘‘(f) An employing agency may require that a request
for leave under section 6382(a)(3) be supported by a certifi-
cation issued at such time and in such manner as the Office
of Personnel Management may by regulation prescribe.’’.
SEC. 611. MILITARY FAMILY JOB PROTECTION.
(a) SHORT TITLE.—This section may be cited as the
‘‘Military Family Job Protection Act’’.
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(b) PROHIBITION
ON DISCRIMINATION
IN EMPLOY-
MENT AGAINST CERTAIN FAMILY MEMBERS CARING FOR
RECOVERING MEMBERS OF THE ARMED FORCES.—A fam-
ily member of a recovering servicemember described in sub-
section (c) shall not be denied retention in employment, pro-
motion, or any benefit of employment by an employer on
the basis of the family member’s absence from employment
as described in that subsection, for a period of not more
than 52 workweeks.
(c) COVERED FAMILY MEMBERS.—A family member
described in this subsection is a family member of a recov-
ering servicemember who is—
(1) on invitational orders while caring for the
recovering servicemember;
(2) a non-medical attendee caring for the recov-
ering servicemember; or
(3) receiving per diem payments from the De-
partment of Defense while caring for the recovering
servicemember.
(d) TREATMENT OF ACTIONS.—An employer shall be
considered to have engaged in an action prohibited by sub-
section (b) with respect to a person described in that sub-
section if the absence from employment of the person as de-
scribed in that subsection is a motivating factor in the em-
ployer’s action, unless the employer can prove that the ac-
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(5) RECOVERING
SERVICEMEMBER.—The term
‘‘recovering servicemember’’ means a member of the
Armed Forces, including a member of the National
Guard or a Reserve, who is undergoing medical treat-
ment, recuperation, or therapy, or is otherwise in
medical hold or medical holdover status, for an in-
jury, illness, or disease incurred or aggravated while
on active duty in the Armed Forces.
SEC. 612. SENSE OF SENATE REGARDING ACCESS TO AF-
FORDABLE AND MEANINGFUL HEALTH IN-
SURANCE COVERAGE.
(a) FINDINGS.—The Senate finds the following:
(1) There are approximately 45 million Ameri-
cans currently without health insurance.
(2) More than half of uninsured workers are em-
ployed by businesses with less than 25 employees or
are self-employed.
(3) Health insurance premiums continue to rise
at more than twice the rate of inflation for all con-
sumer goods.
(4) Individuals in the small group and indi-
vidual health insurance markets usually pay more for
similar coverage than those in the large group market.
(5) The rapid growth in health insurance costs
over the last few years has forced many employers,
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particularly small employers, to increase deductibles
and co-pays or to drop coverage completely.
(b) SENSE OF THE SENATE.—The Senate—
(1) recognizes the necessity to improve afford-
ability and access to health insurance for all Ameri-
cans;
(2) acknowledges the value of building upon the
existing private health insurance market; and
(3) affirms its intent to enact legislation this
year that, with appropriate protection for consumers,
improves access to affordable and meaningful health
insurance coverage for employees of small businesses
and individuals by—
(A) facilitating pooling mechanisms, in-
cluding pooling across State lines, and
(B) providing assistance to small businesses
and individuals, including financial assistance
and tax incentives, for the purchase of private
insurance coverage.
SEC. 613. DEMONSTRATION PROJECTS RELATING TO DIA-
BETES PREVENTION.
There is authorized to be appropriated $15,000,000
during the period of fiscal years 2008 through 2012 to fund
demonstration projects in up to 10 States over 3 years for
voluntary incentive programs to promote children’s receipt
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of relevant screenings and improvements in healthy eating
and physical activity with the aim of reducing the inci-
dence of type 2 diabetes. Such programs may involve reduc-
tions in cost-sharing or premiums when children receive
regular screening and reach certain benchmarks in healthy
eating and physical activity. Under such programs, a State
may also provide financial bonuses for partnerships with
entities, such as schools, which increase their education and
efforts with respect to reducing the incidence of type 2 dia-
betes and may also devise incentives for providers serving
children covered under this title and title XIX to perform
relevant screening and counseling regarding healthy eating
and physical activity. Upon completion of these demonstra-
tions, the Secretary shall provide a report to Congress on
the results of the State demonstration projects and the de-
gree to which they helped improve health outcomes related
to type 2 diabetes in children in those States.’’.
SEC. 614. OUTREACH REGARDING HEALTH INSURANCE OP-
TIONS AVAILABLE TO CHILDREN.
(a) DEFINITIONS.—In this section—
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ means the Small Business Administration
and the Administrator thereof, respectively;
(2) the term ‘‘certified development company’’
means a development company participating in the
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program under title V of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 695 et seq.);
(3) the term ‘‘Medicaid program’’ means the pro-
gram established under title XIX of the Social Secu-
rity Act (42 U.S.C. 1396 et seq.);
(4) the term ‘‘Service Corps of Retired Execu-
tives’’ means the Service Corps of Retired Executives
authorized by section 8(b)(1) of the Small Business
Act (15 U.S.C. 637(b)(1));
(5) the term ‘‘small business concern’’ has the
meaning given that term in section 3 of the Small
Business Act (15 U.S.C. 632);
(6) the term ‘‘small business development center’’
means a small business development center described
in section 21 of the Small Business Act (15 U.S.C.
648);
(7) the term ‘‘State’’ has the meaning given that
term for purposes of title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.);
(8) the term ‘‘State Children’s Health Insurance
Program’’ means the State Children’s Health Insur-
ance Program established under title XXI of the So-
cial Security Act (42 U.S.C. 1397aa et seq.);
(9) the term ‘‘task force’’ means the task force es-
tablished under subsection (b)(1); and
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(10) the term ‘‘women’s business center’’ means
a women’s business center described in section 29 of
the Small Business Act (15 U.S.C. 656).
(b) ESTABLISHMENT OF TASK FORCE.—
(1) ESTABLISHMENT.—There is established a
task force to conduct a nationwide campaign of edu-
cation and outreach for small business concerns re-
garding the availability of coverage for children
through private insurance options, the Medicaid pro-
gram, and the State Children’s Health Insurance Pro-
gram.
(2) MEMBERSHIP.—The task force shall consist
of the Administrator, the Secretary of Health and
Human Services, the Secretary of Labor, and the Sec-
retary of the Treasury.
(3) RESPONSIBILITIES.—The campaign con-
ducted under this subsection shall include—
(A) efforts to educate the owners of small
business concerns about the value of health cov-
erage for children;
(B) information regarding options available
to the owners and employees of small business
concerns to make insurance more affordable, in-
cluding Federal and State tax deductions and
credits for health care-related expenses and
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health insurance expenses and Federal tax exclu-
sion for health insurance options available under
employer-sponsored cafeteria plans under section
125 of the Internal Revenue Code of 1986;
(C) efforts to educate the owners of small
business concerns about assistance available
through public programs; and
(D) efforts to educate the owners and em-
ployees of small business concerns regarding the
availability of the hotline operated as part of the
Insure Kids Now program of the Department of
Health and Human Services.
(4) IMPLEMENTATION.—In carrying out this sub-
section, the task force may—
(A) use any business partner of the Admin-
istration, including—
(i) a small business development cen-
ter;
(ii) a certified development company;
(iii) a women’s business center; and
(iv) the Service Corps of Retired Ex-
ecutives;
(B) enter into—
(i) a memorandum of understanding
with a chamber of commerce; and
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(ii) a partnership with any appro-
priate small business concern or health ad-
vocacy group; and
(C) designate outreach programs at regional
offices of the Department of Health and Human
Services to work with district offices of the Ad-
ministration.
(5) WEBSITE.—The Administrator shall ensure
that links to information on the eligibility and enroll-
ment requirements for the Medicaid program and
State Children’s Health Insurance Program of each
State are prominently displayed on the website of the
Administration.
(6) REPORT.—
(A) IN GENERAL.—Not later than 2 years
after the date of enactment of this Act, and every
2 years thereafter, the Administrator shall sub-
mit to the Committee on Small Business and
Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Rep-
resentatives a report on the status of the nation-
wide campaign conducted under paragraph (1).
(B) CONTENTS.—Each report submitted
under subparagraph (A) shall include a status
update on all efforts made to educate owners and
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employees of small business concerns on options
for providing health insurance for children
through public and private alternatives.
TITLE VII—REVENUE
PROVISIONS
SEC. 701. INCREASE IN EXCISE TAX RATE ON TOBACCO
PRODUCTS.
(a) CIGARS.—Section 5701(a) of the Internal Revenue
Code of 1986 is amended—
(1) by striking ‘‘$1.828 cents per thousand
($1.594 cents per thousand on cigars removed during
2000 or 2001)’’ in paragraph (1) and inserting
‘‘$50.00 per thousand’’,
(2) by striking ‘‘20.719 percent (18.063 percent
on cigars removed during 2000 or 2001)’’ in para-
graph (2) and inserting ‘‘53.13 percent’’, and
(3) by striking ‘‘$48.75 per thousand ($42.50 per
thousand on cigars removed during 2000 or 2001)’’ in
paragraph (2) and inserting ‘‘$3.00 per cigar’’.
(b) CIGARETTES.—Section 5701(b) of such Code is
amended—
(1) by striking ‘‘$19.50 per thousand ($17 per
thousand on cigarettes removed during 2000 or
2001)’’ in paragraph (1) and inserting ‘‘$50.00 per
thousand’’, and
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(2) by striking ‘‘$40.95 per thousand ($35.70 per
thousand on cigarettes removed during 2000 or
2001)’’ in paragraph (2) and inserting ‘‘$104.9999
cents per thousand’’.
(c) CIGARETTE PAPERS.—Section 5701(c) of such
Code is amended by striking ‘‘1.22 cents (1.06 cents on ciga-
rette papers removed during 2000 or 2001)’’ and inserting
‘‘3.13 cents’’.
(d) CIGARETTE TUBES.—Section 5701(d) of such Code
is amended by striking ‘‘2.44 cents (2.13 cents on cigarette
tubes removed during 2000 or 2001)’’ and inserting ‘‘6.26
cents’’.
(e) SMOKELESS TOBACCO.—Section 5701(e) of such
Code is amended—
(1) by striking ‘‘58.5 cents (51 cents on snuff re-
moved during 2000 or 2001)’’ in paragraph (1) and
inserting ‘‘$1.50’’, and
(2) by striking ‘‘19.5 cents (17 cents on chewing
tobacco removed during 2000 or 2001)’’ in paragraph
(2) and inserting ‘‘50 cents’’.
(f) PIPE TOBACCO.—Section 5701(f) of such Code is
amended by striking ‘‘$1.0969 cents (95.67 cents on pipe
tobacco removed during 2000 or 2001)’’ and inserting
‘‘$2.8126 cents’’.
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(g) ROLL-YOUR-OWN TOBACCO.—Section 5701(g) of
such Code is amended by striking ‘‘$1.0969 cents (95.67
cents on roll-your-own tobacco removed during 2000 or
2001)’’ and inserting ‘‘$8.8889 cents’’.
(h) FLOOR STOCKS TAXES.—
(1) IMPOSITION OF TAX.—On tobacco products
and cigarette papers and tubes manufactured in or
imported into the United States which are removed
before January 1, 2008, and held on such date for
sale by any person, there is hereby imposed a tax in
an amount equal to the excess of—
(A) the tax which would be imposed under
section 5701 of the Internal Revenue Code of
1986 on the article if the article had been re-
moved on such date, over
(B) the prior tax (if any) imposed under
section 5701 of such Code on such article.
(2) CREDIT AGAINST TAX.—Each person shall be
allowed as a credit against the taxes imposed by
paragraph (1) an amount equal to $500. Such credit
shall not exceed the amount of taxes imposed by para-
graph (1) on January 1, 2008, for which such person
is liable.
(3) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
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(A) LIABILITY FOR TAX.—A person holding
tobacco products, cigarette papers, or cigarette
tubes on January 1, 2008, to which any tax im-
posed by paragraph (1) applies shall be liable for
such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe by regu-
lations.
(C) TIME FOR PAYMENT.—The tax imposed
by paragraph (1) shall be paid on or before
April 1, 2008.
(4) ARTICLES IN FOREIGN TRADE ZONES.—Not-
withstanding the Act of June 18, 1934 (commonly
known as the Foreign Trade Zone Act, 48 Stat. 998,
19 U.S.C. 81a et seq.) or any other provision of law,
any article which is located in a foreign trade zone
on January 1, 2008, shall be subject to the tax im-
posed by paragraph (1) if—
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with respect
to such article before such date pursuant to a re-
quest made under the 1st proviso of section 3(a)
of such Act, or
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(B) such article is held on such date under
the supervision of an officer of the United States
Customs and Border Protection of the Depart-
ment of Homeland Security pursuant to the 2d
proviso of such section 3(a).
(5) 
DEFINITIONS.—For 
purposes 
of 
this
subsection—
(A) IN GENERAL.—Any term used in this
subsection which is also used in section 5702 of
the Internal Revenue Code of 1986 shall have the
same meaning as such term has in such section.
(B) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury or the Sec-
retary’s delegate.
(6) CONTROLLED GROUPS.—Rules similar to the
rules of section 5061(e)(3) of such Code shall apply
for purposes of this subsection.
(7) OTHER LAWS APPLICABLE.—All provisions of
law, including penalties, applicable with respect to
the taxes imposed by section 5701 of such Code shall,
insofar as applicable and not inconsistent with the
provisions of this subsection, apply to the floor stocks
taxes imposed by paragraph (1), to the same extent
as if such taxes were imposed by such section 5701.
The Secretary may treat any person who bore the ul-
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timate burden of the tax imposed by paragraph (1)
as the person to whom a credit or refund under such
provisions may be allowed or made.
(i) EFFECTIVE DATE.—The amendments made by this
section shall apply to articles removed (as defined in section
5702(j) of the Internal Revenue Code of 1986) after Decem-
ber 31, 2007.
SEC. 702. ADMINISTRATIVE IMPROVEMENTS.
(a) PERMIT, REPORT, AND RECORD REQUIREMENTS
FOR MANUFACTURERS AND IMPORTERS OF PROCESSED TO-
BACCO.—
(1) PERMITS.—
(A) APPLICATION.—Section 5712 of the In-
ternal Revenue Code of 1986 is amended by in-
serting ‘‘or processed tobacco’’ after ‘‘tobacco
products’’.
(B) ISSUANCE.—Section 5713(a) of such
Code is amended by inserting ‘‘or processed to-
bacco’’ after ‘‘tobacco products’’.
(2) INVENTORIES AND REPORTS.—
(A) INVENTORIES.—Section 5721 of such
Code is amended by inserting ‘‘, processed to-
bacco,’’ after ‘‘tobacco products’’.
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(B) REPORTS.—Section 5722 of such Code
is amended by inserting ‘‘, processed tobacco,’’
after ‘‘tobacco products’’.
(3) RECORDS.—Section 5741 of such Code is
amended by inserting ‘‘, processed tobacco,’’ after ‘‘to-
bacco products’’.
(4) MANUFACTURER OF PROCESSED TOBACCO.—
Section 5702 of such Code is amended by adding at
the end the following new subsection:
‘‘(p) MANUFACTURER OF PROCESSED TOBACCO.—
‘‘(1) IN GENERAL.—The term ‘manufacturer of
processed tobacco’ means any person who processes
any tobacco other than tobacco products.
‘‘(2) PROCESSED TOBACCO.—The processing of
tobacco shall not include the farming or growing of
tobacco or the handling of tobacco solely for sale, ship-
ment, or delivery to a manufacturer of tobacco prod-
ucts or processed tobacco.’’.
(5) CONFORMING AMENDMENT.—Section 5702(k)
of such Code is amended by inserting ‘‘, or any proc-
essed tobacco,’’ after ‘‘nontaxpaid tobacco products or
cigarette papers or tubes’’.
(6) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on January 1,
2008.
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(b) BASIS FOR DENIAL, SUSPENSION, OR REVOCATION
OF PERMITS.—
(1) DENIAL.—Paragraph (3) of section 5712 of
such Code is amended to read as follows:
‘‘(3) such person (including, in the case of a cor-
poration, any officer, director, or principal stock-
holder and, in the case of a partnership, a partner)—
‘‘(A) is, by reason of his business experience,
financial standing, or trade connections or by
reason of previous or current legal proceedings
involving a felony violation of any other provi-
sion of Federal criminal law relating to tobacco
products, cigarette paper, or cigarette tubes, not
likely to maintain operations in compliance with
this chapter,
‘‘(B) has been convicted of a felony violation
of any provision of Federal or State criminal
law relating to tobacco products, cigarette paper,
or cigarette tubes, or
‘‘(C) has failed to disclose any material in-
formation required or made any material false
statement in the application therefor.’’.
(2) SUSPENSION
OR
REVOCATION.—Subsection
(b) of section 5713 of such Code is amended to read
as follows:
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‘‘(b) SUSPENSION OR REVOCATION.—
‘‘(1) SHOW CAUSE HEARING.—If the Secretary
has reason to believe that any person holding a
permit—
‘‘(A) has not in good faith complied with
this chapter, or with any other provision of this
title involving intent to defraud,
‘‘(B) has violated the conditions of such per-
mit,
‘‘(C) has failed to disclose any material in-
formation required or made any material false
statement in the application for such permit,
‘‘(D) has failed to maintain his premises in
such manner as to protect the revenue,
‘‘(E) is, by reason of previous or current
legal proceedings involving a felony violation of
any other provision of Federal criminal law re-
lating to tobacco products, cigarette paper, or
cigarette tubes, not likely to maintain operations
in compliance with this chapter, or
‘‘(F) has been convicted of a felony violation
of any provision of Federal or State criminal
law relating to tobacco products, cigarette paper,
or cigarette tubes,
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the Secretary shall issue an order, stating the facts
charged, citing such person to show cause why his
permit should not be suspended or revoked.
‘‘(2) ACTION
FOLLOWING
HEARING.—If, after
hearing, the Secretary finds that such person has not
shown cause why his permit should not be suspended
or revoked, such permit shall be suspended for such
period as the Secretary deems proper or shall be re-
voked.’’.
(c) APPLICATION OF INTERNAL REVENUE CODE STAT-
UTE OF LIMITATIONS FOR ALCOHOL AND TOBACCO EXCISE
TAXES.—Section 514(a) of the Tariff Act of 1930 (19
U.S.C. 1514(a)) is amended by striking ‘‘and section 520
(relating to refunds)’’ and inserting ‘‘section 520 (relating
to refunds), and section 6501 of the Internal Revenue Code
of 1986 (but only with respect to taxes imposed under chap-
ters 51 and 52 of such Code)’’.
(d) EXPANSION OF DEFINITION OF ROLL-YOUR-OWN
TOBACCO.—
(1) IN GENERAL.—Section 5702(o) of the Inter-
nal Revenue Code of 1986 is amended by inserting
‘‘or cigars, or for use as wrappers thereof’’ before the
period at the end.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply to articles removed (as de-
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fined in section 5702(j) of the Internal Revenue Code
of 1986) after December 31, 2007.
(e) TIME OF TAX FOR UNLAWFULLY MANUFACTURED
TOBACCO PRODUCTS.—Section 5703(b)(2) of such Code is
amended by adding at the end the following new subpara-
graph:
‘‘(F) SPECIAL RULE FOR UNLAWFULLY MAN-
UFACTURED TOBACCO PRODUCTS.—In the case of
any tobacco products, cigarette paper, or ciga-
rette tubes produced in the United States at any
place other than the premises of a manufacturer
of tobacco products, cigarette paper, or cigarette
tubes that has filed the bond and obtained the
permit required under this chapter, tax shall be
due and payable immediately upon manufac-
ture.’’.
SEC. 703. TIME FOR PAYMENT OF CORPORATE ESTIMATED
TAXES.
Subparagraph (B) of section 401(1) of the Tax In-
crease Prevention and Reconciliation Act of 2005 is amend-
ed by striking ‘‘114.50 percent’’ and inserting ‘‘113.25 per-
cent’’.
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TITLE VIII—EFFECTIVE DATE
SEC. 801. EFFECTIVE DATE.
(a) IN GENERAL.—Unless otherwise provided in this
Act, subject to subsection (b), the amendments made by this
Act shall take effect on October 1, 2007, and shall apply
to child health assistance and medical assistance provided
on or after that date without regard to whether or not final
regulations to carry out such amendments have been pro-
mulgated by such date.
(b) EXCEPTION FOR STATE LEGISLATION.—In the case
of a State plan under title XIX or XXI of the Social Secu-
rity Act, which the Secretary determines requires State leg-
islation in order for the plan to meet the additional require-
ments imposed by an amendment made by this Act, 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 pre-
ceding sentence, in the case of a State that has a 2-year
legislative session, each year of the session shall be consid-
ered to be a separate regular session of the State legislature.
Amend the title so as to read: ‘‘An Act to amend
title XXI of the Social Security Act to reauthorize the
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State Children’s Health Insurance Program, and for
other purposes.’’.
Attest:
Secretary.