TITLE IV—HEALTH CARE FOR
WORKING FAMILIES
SEC. 401. HEALTH BENEFITS FOR EMPLOYEES AND THEIR
FAMILIES.
(a) IN GENERAL.—The Fair Labor Standards Act of
1938 (29 U.S.C. 201 et seq.) is amended by adding at
the end thereof the following new title:
‘‘TITLE 
II—HEALTH 
BENEFITS
FOR EMPLOYEES AND THEIR
FAMILIES
‘‘SEC. 201. HEALTH BENEFITS.
‘‘(a) OFFER TO ENROLL.—
‘‘(1) IN GENERAL.—Each large employer, in ac-
cordance with this title, shall offer to each of its em-
ployees the opportunity to enroll in a qualifying
health benefit plan that provides coverage for the
employee and the family of the employee.
‘‘(2) QUALIFYING
HEALTH
BENEFIT
PLAN.—
For purposes of this title, the term ‘qualifying
health benefit plan’ means a plan that provides ben-
efits for health care items and services that meet the
requirements of section 202(a)(3) of the American
Health Security Partnership Act of 1998 and of title
XXVII of the Public Health Service Act applicable
to the plan.
‘‘(b) CONTRIBUTION AND WITHHOLDING.—
‘‘(1) IN GENERAL.—Each large employer, in ac-
cordance with this title, shall—
‘‘(A) contribute to the cost of any qualify-
ing health benefit plan offered to its employees
under subsection (a); and
‘‘(B) withhold from the wages of an em-
ployee, the employee share of the premium as-
sessed for coverage under the qualifying health
benefit plan.
‘‘(2) REQUIRED
CONTRIBUTION.—Except as
provided in paragraphs (3) and (4), the portion of
the total premium to be paid by a large employer
under paragraph (1)(A) shall not be less than the
portion of the total premium that the Federal Gov-
ernment contributes under the Blue Cross/Blue
Shield Standard Plan provided under the Federal
Employees Health Benefit Program under chapter
89 of title 5, United States Code.
‘‘(3) PART-TIME EMPLOYEES.—With respect to
an employee who works less than 30 hours per week,
the employer contribution required under paragraph
(2) shall be equal to the product of—
‘‘(A) the contribution required under para-
graph (2); and
‘‘(B) the ratio of number of hours worked
by the employee in a typical week to 30 hours.
‘‘(4) LIMITATION.—No employer contribution
shall be required under this subsection with respect
to an employer who works less than 10 hours per
week.
‘‘(c) EMPLOYEE OBLIGATION UNDER CERTAIN PRO-
GRAMS.—
‘‘(1) IN
GENERAL.—With respect to an em-
ployee covered under a Federal health insurance pro-
gram (as defined in paragraph (3)), such employee
shall accept an offer of health insurance coverage
under subsection (a) and agree to the appropriate
payroll withholdings under subsection (b)(1)(B) for
such coverage or provide for the payment of the em-
ployee share of premiums under paragraph (2), ex-
cept that this subsection shall not apply—
‘‘(A) with respect to an employee who is
otherwise covered under an employment-based
qualified health benefit plan; or
‘‘(B) with respect to the coverage of a fam-
ily member of an employee if the employee does
not elect coverage for such family member and
the family member is otherwise covered under
an employment-based qualified health benefit
plan.
‘‘(2) PAYMENT OF PREMIUMS.—At the request
of an employee to which paragraph (1) applies, the
relevant Federal administrator of the Federal health
insurance program involved shall provide for the
payment of the employee share of the premium as-
sessed for coverage under the qualifying health bene-
fit plan involved. For purposes of title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.), the re-
quirement of this paragraph shall be deemed to be
a requirement under the appropriate State plan
under such title XIX.
‘‘(3) FEDERAL
HEALTH
INSURANCE
PRO-
GRAM.—As used in this subsection, the term ‘Fed-
eral health insurance program’ means—
‘‘(A) the medicare or medicaid program
under title XVIII or XIX of the Social Security
Act (42 U.S.C. 1395 or 1396 et seq.);
‘‘(B) the Federal employee health benefit
program under chapter 89 of title V, United
States Code; or
‘‘(C) the Civilian Health and Medical Pro-
gram of the Uniformed Services (CHAMPUS),
as defined in section 1073(4) of title 10, United
States Code.
‘‘(d) LARGE EMPLOYERS.—
‘‘(1) IN GENERAL.—The provisions of this title
shall only apply to large employers.
‘‘(2) DEFINITION.—
‘‘(A) IN GENERAL.—As used in paragraph
(1), the term ‘large employer’ means, with re-
spect to a calendar year and plan year, an em-
ployer that employed an average of at least 100
full-time employees on business days during the
preceding calendar year and who employs not
less than 100 employees on the first day of the
plan year.
‘‘(B) EXCEPTION.—The provisions of this
title shall apply with respect to an employer
that is not a large employer under subpara-
graph (A) if the majority of the services per-
formed by such employer consist of services per-
formed on behalf of a single large employer.
‘‘(3) CONTRACT
WORKERS.—For purposes of
this title, a contract worker of an employer shall be
considered to be an employee of the employer.
‘‘SEC. 202. REQUIREMENTS RELATING TO TIMING OF COV-
ERAGE AND WITHHOLDING.
‘‘(a) DATE OF INITIAL COVERAGE.—In the case of
an employee enrolled under a qualifying health benefit
plan provided by a large employer, the coverage under the
plan must begin not later than 30 days after the day on
which the employee first performs an hour of service as
an employee of that employer.
‘‘(b) WITHHOLDING PERMITTED.—No provision of
State law shall prevent an employer of an employee en-
rolled under a qualifying health benefit plan established
under this title from withholding the amount of any pre-
mium due by the employee from the payroll of the em-
ployee.
‘‘SEC. 203. ENFORCEMENT.
‘‘(a) CIVIL MONEY PENALTY AGAINST PRIVATE EM-
PLOYERS.—The provisions of section 502—
‘‘(1) relating to the commencement of civil ac-
tions by the Secretary under subsection (a) of such
section;
‘‘(2) relating to civil money penalties under sub-
section (c)(2) of such section; and
‘‘(3) relating to the procedures for assessing,
collecting and the judicial review of such civil money
penalties;
shall apply with respect to any large employer that does
not comply with this title.
‘‘(b) INJUNCTIVE RELIEF.—The provisions of section
17 shall apply with respect to violations of this title.
‘‘SEC. 204. PREEMPTION.
‘‘Nothing in this title shall be construed to prevent
a State from establishing, implementing, or continuing in
effect standards and requirements relating to employer
provided health insurance coverage unless such standards
and requirements prevent the application of a requirement
of this title.
‘‘SEC. 205. DEFINITION AND EFFECTIVE DATE.
‘‘(a) DEFINITION.—In this title the terms ‘family’
and ‘family member’ mean, with respect to an employee,
the spouse and children (including adopted children) of
the employee.
‘‘(b) EFFECTIVE DATE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), this title shall apply with respect to em-
ployers on January 1, 1999.
‘‘(2) COLLECTIVE BARGAINING AGREEMENTS.—
This title shall apply with respect to employees cov-
ered under a collective bargaining agreement on the
first day of the first plan year beginning after the
ployees of such employer shall ensure that such coverage
complies with the requirements of title II of the Fair
Labor Standards Act of 1938.’’.
TITLE V—FINANCING
MECHANISMS
SEC. 501. INCREASE IN TOP INCOME TAX RATE APPLICA-
BLE TO CORPORATIONS.
(a) IN GENERAL.—Subsection (b) of section 11 of the
Internal Revenue Code of 1986 is amended by striking
‘‘35 percent’’ each place it appears and inserting ‘‘36 per-
cent’’.
(b) CONFORMING AMENDMENTS.—
(1) The last sentence of section 11(b)(1) of
such Code is amended by striking ‘‘$100,000’’ and
inserting ‘‘$200,000’’.
(2) Clause (iii) of section 852(b)(3)(D) of such
Code is amended by striking ‘‘65 percent’’ and in-
serting ‘‘64 percent’’.
(3) Subsection (a) of section 1201 of such Code
is amended by striking ‘‘35 percent’’ each place it
appears and inserting ‘‘36 percent’’.
(4) Paragraphs (1) and (2) of section 1445(e)
of such Code are each amended by striking ‘‘35 per-
cent’’ and inserting ‘‘36 percent’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1998.
SEC. 502. ESTABLISHMENT OF TOBACCO SETTLEMENT
TRUST FUND.
There is established in the Treasury of the United
States a tobacco settlement trust fund into which pay-
ments to be made to the Federal Government pursuant
to legislation enacted implementing a national tobacco set-
tlement are deposited.
Æ