(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
SEC. 205. INTERVENTION TO STRENGTHEN FAMILIES AND 
BUILD CHILDREN’S RESILIENCE. 
Part B of title V of the Public Health Service Act 
(42 3 U.S.C. 290bb et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 520K. INTERVENTIONS TO STRENGTHEN FAMILIES 
AND BUILD CHILDREN’S RESILIENCE. 
‘‘(a) IN
GENERAL.—The Secretary shall award 
grants to eligible entities for the purpose of implementing 
programs that strengthen families of children at risk for 
emotional or behavioral problems due to family distress. 
‘‘(b) ELIGIBLE ENTITY.—Entities eligible to receive 
funds under this section may include— 
‘‘(1) a local public entity, including a health de-
partment or local education agency; 
‘‘(2) an Indian tribal organization or agency; 
‘‘(3) a federally qualified health center; 
‘‘(4) a community-based organization; or 
‘‘(5) any other entity determined appropriate by 
the Secretary, including a consortia or partnership 
of entities eligible to receive funds under this sec-
tion. 
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‘‘(c) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—An eligible entity that re-
ceives a grant under this section shall use the funds 
made available through the grant to carry out home- 
based, school-based, and community-based activities 
that— 
‘‘(A) promote strong, supportive families 
and child resilience through parenting skills 
training and supports, or skill-building services 
with children, as well as provide other consult-
ative services and support for family and other 
caregivers, such as child care providers, edu-
cators, and after-school program staff; 
‘‘(B) enhance mental health promotion ac-
tivities in domains where children live, play, and 
learn; and 
‘‘(C) enhance community wellness, and re-
duce the incidence of preventable mental health 
problems among children. 
‘‘(2) INTERVENTION ACTIVITIES.—Intervention 
activities funded under this section shall— 
‘‘(A) be consumer and family driven, and 
use strengths-based approaches; 
‘‘(B) be designed to promote social and 
emotional competencies and increase children’s 
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ability to successfully cope with stressful life 
circumstances; 
‘‘(C) be designed to strengthen children 
and their families by enhancing the knowledge, 
social, emotional, and other life or work skills, 
and support of, parents or other significant 
caregivers; 
‘‘(D) emphasize and model a positive, sup-
portive approach to working with children; 
‘‘(E) be evidence-based and provide in- 
depth and ongoing training and consultation in 
the adoption and use of evidence-based inter-
ventions by schools, communities, and families; 
‘‘(F) include a rigorous evaluation compo-
nent, including outcome measures suited to the 
intervention and the overall goals of the grant, 
as well as use of comparison groups and moder-
ating and meditating process variables when-
ever possible; 
‘‘(G) involve partnerships between commu-
nities or schools and universities where possible 
to support effective implementation and evalua-
tion of the intervention activities; 
‘‘(H) provide facilitated referrals for par-
ents and other family members who need men-
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tal health, substance abuse, or social work serv-
ices, and coordinate a referral network of pro-
fessionals with affordable fees; and 
‘‘(I) emphasize local capacity-building to 
use evidence-based intervention, promote link-
ages among individuals and groups that serve 
children and families, and develop community 
outreach to support coalition-building. 
‘‘(3) TARGET POPULATIONS.—Families targeted 
by these activities shall include those with children 
at risk for increased mental health problems due to 
stressful family circumstances, including— 
‘‘(A) social or economic disadvantage; 
‘‘(B) severe marital discord; 
‘‘(C) divorce; 
‘‘(D) family violence; 
‘‘(E) parental substance abuse or other 
mental disorder or physical illness; 
‘‘(F) parental death; 
‘‘(G) parental absence due to military serv-
ice; 
‘‘(H) parental absence due to imprison-
ment; and 
‘‘(I) other family disruption determined ap-
propriate by the Secretary. 
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‘‘(d) PRIORITY FUNDING.—In awarding grants under 
subsection (a), the Secretary shall give priority to the fol-
lowing: 
‘‘(1) Entities that provide non-Federal contribu-
tions, either in cash or in kind. 
‘‘(2) Entities with demonstrated experience with 
community-based partnerships. 
‘‘(3) Entities with demonstrated experience and 
success with such interventions. 
‘‘(4) Entities with demonstrated experience 
working with families. 
‘‘(5) Entities that develop comprehensive plans 
that include a strategy for extending program activi-
ties developed under this section in the years fol-
lowing the fiscal years for which they receive grants 
under this section. 
‘‘(6) Entities that submit plans that exhibit co-
operative plans that include the involvement of a 
broad range of stakeholders, including the following: 
‘‘(A) Community-based organizations. 
‘‘(B) Local governments. 
‘‘(C) Local educational agencies. 
‘‘(D) Local business and community asso-
ciations. 
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‘‘(E) Accredited colleges, universities, and 
community colleges. 
‘‘(F) Other entities determined appropriate 
by the Secretary. 
‘‘(e) EVALUATION.—Of the funds appropriated to 
carry out this section, the Secretary may reserve up to 
5 percent for each fiscal year for the purpose of carrying 
out evaluations of the activities carried out under this sec-
tion, including a national cross-site evaluation. Within 90 
days of the completion of any evaluations, they shall be 
provided to the relevant authorizing committees and to the 
Committees on Appropriations of the Senate and the 
House of Representatives. 
‘‘(f) DURATION.—The Secretary shall award grants 
under this section for a period of not more than 5 years. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section, 
$25,000,000 for fiscal year 2008, and such sums as may 
be necessary for each of fiscal years 2008 to 2012.’’. 
SEC. 206. GRANTS FOR THE INTEGRATION OF SCHOOLS 
AND MENTAL HEALTH SYSTEMS. 
Section 5541 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7269) is amended— 
(1) in subsection (c), by adding at the end the 
following: 
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‘‘(7) To support schools that work with families 
and appropriate community partners to implement 
school-wide prevention strategies, based on mental 
health research, that will support early and intensive 
interventions. 
‘‘(8) To provide necessary training and support 
to school personnel on how to recognize and seek 
needed support for children exhibiting early warning 
signs of behavioral and academic problems.’’; and 
(2) in subsection (d)— 
(A) in paragraph (4)— 
(i) in subparagraph (C), by striking 
‘‘and’’ after the semicolon; 
(ii) in subparagraph (D), by striking 
the period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(E) mental health services provided under 
this section by schools will be evidence-based or 
promising early interventions.’’; and 
(B) by adding at the end the following: 
‘‘(7) An explanation of how the applicant will 
carry out public education programs in support of 
mental health promotion and prevention by collabo-
rating with— 
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‘‘(A) an institution of higher education (in-
cluding a graduate program in psychology, so-
cial work, or education at an institution of 
higher education); and 
‘‘(B) private nonprofit community-based 
organizations that have experience in public 
education programs relating to mental health 
promotion and prevention.’’. 
SEC. 207. GRANTS FOR THE PROMOTION OF UNIVERSITY- 
COMMUNITY PARTNERSHIPS TO INCREASE 
YOUTH COMPETENCIES AND REDUCE YOUTH 
PROBLEM BEHAVIORS IN OUR COMMUNITIES. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services shall award grants to eligible entities for 
the implementation of programs that promote university- 
community partnerships to implement community-based 
prevention strategies that will support youth competencies 
and prevent youth problem behaviors. 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under subsection (a), an entity shall be a partnership be-
tween— 
(1) an institution of higher education (including 
a graduate program in psychology, social work, or 
education at an institution of higher education); and 
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(2) a private nonprofit community-based orga-
nization that has experience in prevention and inter-
ventions relating to mental health promotion and 
prevention. 
(c) USE OF FUNDS.—An entity shall use amounts re-
ceived under a grant under this section to carry out com-
munity-based activities that— 
(1) are comprehensive and utilize evidence- 
based or promising early interventions; and 
(2) include an evaluation component that in-
cludes outcomes measures related to prevention ef-
forts as well as the overall goals of the grant. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
to be authorized to be appropriated to carry out this sec-
tion, $10,000,000 for fiscal year 2008, and such sums as 
may be necessary for each of fiscal years 2009 and 2010. 
SEC. 208. RESERVATIONS FOR EARLY HEAD START PRO-
GRAMS. 
Section 640(a)(6)(A) of the Head Start Act (42 
U.S.C. 9835(a)(6)(A)) is amended by striking ‘‘7.5 per-
cent’’ and all that follows and inserting ‘‘12 percent for 
fiscal year 2008, 14 percent for fiscal year 2009, 16 per-
cent for fiscal year 2010, 18 percent for fiscal year 2011, 
and 20 percent for fiscal year 2012, of the amount appro-
priated pursuant to section 639(a).’’. 
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TITLE III—HEALTHIER COMMU-
NITIES AND WORKPLACES 
Subtitle A—Incentives for a 
Healthy Workforce 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Healthy Workforce 
Act of 2007’’. 
SEC. 302. TAX CREDIT TO EMPLOYERS FOR COSTS OF IM-
PLEMENTING WELLNESS PROGRAMS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following: 
‘‘SEC. 45O. WELLNESS PROGRAM CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
the wellness program credit determined under this 
section for any taxable year during the credit period 
with respect to an employer is an amount equal to 
50 percent of the costs paid or incurred by the em-
ployer in connection with a qualified wellness pro-
gram during the taxable year. 
‘‘(2) LIMITATION.—The amount of credit al-
lowed under paragraph (1) for any taxable year shall 
not exceed the sum of— 
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‘‘(A) the product of $200 and the number 
of employees of the employer not in excess of 
200 employees, plus 
‘‘(B) the product of $100 and the number 
of employees of the employer in excess of 200 
employees. 
‘‘(b) QUALIFIED WELLNESS PROGRAM.—For pur-
poses of this section— 
‘‘(1) QUALIFIED
WELLNESS
PROGRAM.—The 
term ‘qualified wellness program’ means a program 
which— 
‘‘(A) consists of any 3 of the wellness pro-
gram components described in subsection (c), 
and 
‘‘(B) which is certified by the Secretary of 
Health and Human Services, in coordination 
with the Director of the Center for Disease 
Control and Prevention, as a qualified wellness 
program under this section. 
‘‘(2) PROGRAMS MUST BE CONSISTENT WITH 
RESEARCH AND BEST PRACTICES.— 
‘‘(A) IN
GENERAL.—The Secretary of 
Health and Human Services shall not certify a 
program as a qualified wellness program unless 
the program— 
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‘‘(i) is consistent with evidence-based 
research and best practices, as identified 
by persons with expertise in employer 
health promotion and wellness programs, 
‘‘(ii) includes multiple, evidence-based 
strategies which are based on the existing 
and emerging research and careful sci-
entific reviews, including the Guide to 
Community Preventive Services, the Guide 
to Clinical Preventive Services, and the 
National Registry for Effective Programs, 
and 
‘‘(iii) includes strategies which focus 
on employee populations with a dispropor-
tionate burden of health problems. 
‘‘(B) PERIODIC UPDATING AND REVIEW.— 
The Secretary of Health and Human Services 
shall establish procedures for periodic review 
and recertifications of programs under this sub-
section. Such procedures shall require revisions 
of programs if necessary to ensure compliance 
with the requirements of this section and re-
quire updating of the programs to the extent 
the Secretary, in coordination with the Director 
of the Centers for Disease Control and Preven-
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tion, determines necessary to reflect new sci-
entific findings. 
‘‘(3) HEALTH
LITERACY.—The Secretary of 
Health and Human Services shall, as part of the 
certification process, encourage employees to make 
the programs culturally competent and to meet the 
health literacy needs of the employees covered by the 
programs. 
‘‘(c) WELLNESS PROGRAM COMPONENTS.—For pur-
poses of this section, the wellness program components de-
scribed in this subsection are the following: 
‘‘(1) HEALTH
AWARENESS
COMPONENT.—A 
health awareness component which provides for the 
following: 
‘‘(A) HEALTH EDUCATION.—The dissemi-
nation of health information which addresses 
the specific needs and health risks of employees. 
‘‘(B) HEALTH SCREENINGS.—The oppor-
tunity for periodic screenings for health prob-
lems and referrals for appropriate follow up 
measures. 
‘‘(2) EMPLOYEE ENGAGEMENT COMPONENT.— 
An employee engagement component which provides 
for— 
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‘‘(A) the establishment of a committee to 
actively engage employees in worksite wellness 
programs through worksite assessments and 
program planning, delivery, evaluation, and im-
provement efforts, and 
‘‘(B) the tracking of employee participa-
tion. 
‘‘(3) BEHAVIORAL
CHANGE
COMPONENT.—A 
behavioral change component which provides for al-
tering employee lifestyles to encourage healthy living 
through counseling, seminars, on-line programs, or 
self-help materials which provide technical assistance 
and problem solving skills. Such component may in-
clude programs relating to— 
‘‘(A) tobacco use, 
‘‘(B) obesity, 
‘‘(C) stress management, 
‘‘(D) physical fitness, 
‘‘(E) nutrition, 
‘‘(F) substance abuse, 
‘‘(G) depression, and 
‘‘(H) mental health promotion (including 
anxiety). 
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‘‘(4) 
SUPPORTIVE
ENVIRONMENT
COMPO-
NENT.—A supportive environment component which 
includes the following: 
‘‘(A) ON-SITE
POLICIES.—Policies and 
services at the worksite which promote a 
healthy lifestyle, including policies relating to— 
‘‘(i) tobacco use at the worksite, 
‘‘(ii) the nutrition of food available at 
the worksite through cafeterias and vend-
ing options, 
‘‘(iii) minimizing stress and promoting 
positive mental health in the workplace, 
‘‘(iv) where applicable, accessible and 
attractive stairs, and 
‘‘(v) the encouragement of physical 
activity before, during, and after work 
hours. 
‘‘(B) PARTICIPATION INCENTIVES.— 
‘‘(i) IN GENERAL.—Qualified incentive 
benefits for each employee who participates 
in the health screenings described in para-
graph (1)(B) or the behavioral change pro-
grams described in paragraph (3). 
‘‘(ii) QUALIFIED
INCENTIVE
BEN-
EFIT.—For purposes of clause (i), the 
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term ‘qualified incentive benefit’ means 
any benefit which is approved by the Sec-
retary of Health and Human Services, in 
coordination with the Director of the Cen-
ters for Disease Control and Prevention. 
Such benefit may include an adjustment in 
health insurance premiums or co-pays. 
‘‘(C) EMPLOYEE INPUT.—The opportunity 
for employees to participate in the management 
of any qualified wellness program to which this 
section applies. 
‘‘(d) PARTICIPATION REQUIREMENT.— 
‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) unless the Secretary of Health 
and Human Services, in coordination with the Direc-
tor of the Centers for Disease Control and Preven-
tion, certifies, as a part of any certification described 
in subsection (b), that each wellness program compo-
nent of the qualified wellness program applies to all 
qualified employees of the employer. The Secretary 
of Health and Human Services shall prescribe rules 
under which an employer shall not be treated as fail-
ing to meet the requirements of this subsection 
merely because the employer provides specialized 
programs for employees with specific health needs or 
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unusual employment requirements or provides a 
pilot program to test new wellness strategies. 
‘‘(2) QUALIFIED EMPLOYEE.—For purposes of 
paragraph (1), the term ‘qualified employee’ means 
an employee who works an average of not less than 
25 hours per week during the taxable year. 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) EMPLOYEE AND EMPLOYER.— 
‘‘(A) PARTNERS
AND
PARTNERSHIPS.— 
The term ‘employee’ includes a partner and the 
term ‘employer’ includes a partnership. 
‘‘(B) CERTAIN RULES TO APPLY.—Rules 
similar to the rules of section 52 shall apply. 
‘‘(2) CERTAIN
COSTS
NOT
INCLUDED.—Costs 
paid or incurred by an employer for food or health 
insurance shall not be taken into account under sub-
section (a). 
‘‘(3) NO CREDIT WHERE GRANT AWARDED.— 
No credit shall be allowable under subsection (a) 
with respect to any qualified wellness program of 
any taxpayer (other than an eligible employer de-
scribed in subsection (f)(2)(A)) who receives a grant 
provided by the United States, a State, or a political 
subdivision of a State for use in connection with 
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such program. The Secretary shall prescribe rules 
providing for the waiver of this paragraph with re-
spect to any grant which does not constitute a sig-
nificant portion of the funding for the qualified 
wellness program. 
‘‘(4) CREDIT PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘credit pe-
riod’ means the period of 10 consecutive taxable 
years beginning with the taxable year in which 
the qualified wellness program is first certified 
under this section. 
‘‘(B) SPECIAL RULE FOR EXISTING PRO-
GRAMS.—In the case of an employer (or prede-
cessor) which operates a wellness program for 
its employees on the date of the enactment of 
this section, subparagraph (A) shall be applied 
by substituting ‘3 consecutive taxable years’ for 
‘10 consecutive taxable years’. The Secretary 
shall prescribe rules under which this sub-
section shall not apply if an employer is re-
quired to make substantial modifications in the 
existing wellness program in order to qualify 
such program for certification as a qualified 
wellness program. 
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‘‘(C) CONTROLLED
GROUPS.—For pur-
poses of this paragraph, all persons treated as 
a single employer under subsection (b), (c), 
(m), or (o) of section 414 shall be treated as a 
single employer. 
‘‘(f) PORTION OF CREDIT MADE REFUNDABLE.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
employer of an employee, the aggregate credits al-
lowed to a taxpayer under subpart C shall be in-
creased by the lesser of— 
‘‘(A) the credit which would be allowed 
under this section without regard to this sub-
section and the limitation under section 38(c), 
or 
‘‘(B) the amount by which the aggregate 
amount of credits allowed by this subpart (de-
termined without regard to this subsection) 
would increase if the limitation imposed by sec-
tion 38(c) for any taxable year were increased 
by the amount of employer payroll taxes im-
posed on the taxpayer during the calendar year 
in which the taxable year begins. 
The amount of the credit allowed under this sub-
section shall not be treated as a credit allowed under 
this subpart and shall reduce the amount of the 
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credit otherwise allowable under subsection (a) with-
out regard to section 38(c). 
‘‘(2) ELIGIBLE
EMPLOYER.—For purposes of 
this subsection, the term ‘eligible employer’ means 
an employer which is— 
‘‘(A) a State or political subdivision there-
of, the District of Columbia, a possession of the 
United States, or an agency or instrumentality 
of any of the foregoing, or 
‘‘(B) any organization described in section 
501(c) of the Internal Revenue Code of 1986 
which is exempt from taxation under section 
501(a) of such Code. 
‘‘(3) EMPLOYER
PAYROLL
TAXES.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘employer 
payroll taxes’ means the taxes imposed by— 
‘‘(i) section 3111(b), and 
‘‘(ii) sections 3211(a) and 3221(a) 
(determined at a rate equal to the rate 
under section 3111(b)). 
‘‘(B) SPECIAL
RULE.—A rule similar to 
the rule of section 24(d)(2)(C) shall apply for 
purposes of subparagraph (A). 
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‘‘(g) TERMINATION.—This section shall not apply to 
any amount paid or incurred after December 31, 2017.’’. 
(b) TREATMENT AS GENERAL BUSINESS CREDIT.— 
Subsection (b) of section 38 of the Internal Revenue Code 
of 1986 (relating to general business credit) is amended 
by striking ‘‘plus’’ at the end of paragraph (30), by strik-
ing the period at the end of paragraph (31) and inserting 
‘‘, plus’’, and by adding at the end the following: 
‘‘(32) the wellness program credit determined 
under section 45O.’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
the Internal Revenue Code of 1986 (relating to certain 
expenses for which credits are allowable) is amended by 
adding at the end the following new subsection: 
‘‘(f) WELLNESS PROGRAM CREDIT.— 
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed for that portion of the costs paid or incurred 
for a qualified wellness program (within the meaning 
of section 45O) allowable as a deduction for the tax-
able year which is equal to the amount of the credit 
allowable for the taxable year under section 45O. 
‘‘(2) SIMILAR
RULE
WHERE
TAXPAYER
CAP-
ITALIZES RATHER THAN DEDUCTS EXPENSES.—If— 
‘‘(A) the amount of the credit determined 
for the taxable year under section 45O, exceeds 
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‘‘(B) the amount allowable as a deduction 
for such taxable year for a qualified wellness 
program, 
the amount chargeable to capital account for the 
taxable year for such expenses shall be reduced by 
the amount of such excess. 
‘‘(3) CONTROLLED GROUPS.—In the case of a 
corporation which is a member of a controlled group 
of corporations (within the meaning of section 
41(f)(5)) or a trade or business which is treated as 
being under common control with other trades or 
business 
(within 
the 
meaning 
of 
section 
41(f)(1)(B)), this subsection shall be applied under 
rules prescribed by the Secretary similar to the rules 
applicable under subparagraphs (A) and (B) of sec-
tion 41(f)(1).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘Sec. 45O. Wellness program credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
(f) OUTREACH.— 
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(1) IN GENERAL.—The Secretary of the Treas-
ury, in conjunction with the Director of the Centers 
for Disease Control and members of the business 
community, shall institute an outreach program to 
inform businesses about the availability of the 
wellness program credit under section 45O of the In-
ternal Revenue Code of 1986 as well as to educate 
businesses on how to develop programs according to 
recognized and promising practices and on how to 
measure the success of implemented programs. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out the outreach program 
described in paragraph (1). 
SEC. 303. CDC AND EMPLOYER-BASED WELLNESS PRO-
GRAMS. 
Title III of the Public Health Service Act (42 U.S.C. 
241 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘PART R—CDC AND EMPLOYER-BASED 
WELLNESS PROGRAMS 
‘‘SEC. 399Z–1. MOTIVATING EMPLOYERS TO IMPLEMENT 
WORKPLACE WELLNESS PROGRAMS. 
‘‘(a) WORKPLACE WELLNESS MARKETING CAMPAIGN 
FOR EMPLOYERS.—The Director of the Centers for Dis-
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ease Control and Prevention, in coordination with relevant 
worksite health promotion organizations, shall conduct an 
educational campaign to make employers, employer 
groups, and other interested parties aware of the benefits 
of employer-based wellness programs. 
‘‘(b) EMPLOYER AWARD PROGRAM.—The Director of 
the Centers for Disease Control and Prevention shall de-
velop an annual awards program for employers to encour-
age the development of creative and effective solutions to 
help employees maintain or improve their health. The 
awards program shall provide that small, medium, and 
large employers that are public or private shall be eligible 
for the awards 
‘‘SEC. 
399Z–2. 
EVALUATION 
OF 
EMPLOYER-BASED 
WELLNESS PROGRAMS. 
‘‘The Director of the Centers for Disease Control and 
Prevention shall enter into contracts with entities to— 
‘‘(1) provide employers (including small, me-
dium, and large employers, as determined by the Di-
rector) with technical assistance in evaluating such 
employers’ employer-based wellness programs, in-
cluding— 
‘‘(A) measuring the participation of em-
ployees in such programs; and 
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‘‘(B) evaluating such programs as they re-
late to changes in the health status of employ-
ees, the absenteeism of employees, the produc-
tivity of employees, and the medical costs in-
curred by employees; and 
‘‘(2) train employers on how to evaluate such 
employers’ employer-based wellness programs. 
‘‘SEC. 399Z–3. NATIONAL WORKSITE HEALTH POLICIES AND 
PROGRAMS STUDY. 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this section, and annually thereafter, 
the Director of the Centers for Disease Control and Pre-
vention shall conduct a national worksite health policies 
and programs study to assess employer-based health poli-
cies and programs. 
‘‘(b) REPORT.—After completing each study under 
subsection (a), the Director of the Centers for Disease 
Control and Prevention shall submit to Congress a report 
that includes the recommendations of the Director for the 
implementation of effective employer-based health policies 
and programs. 
‘‘SEC. 399Z–4. MISCELLANEOUS PROVISIONS. 
‘‘(a) BEHAVIORAL RISK FACTOR SURVEILLANCE 
SYSTEM.—The Secretary shall expand the Behavioral 
Risk Factor Surveillance System to include a workforce 
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component to enable employers, researchers, and health 
officials to assess employee health risks, identify emerging 
problems associated with general employee health, prevent 
disease within the employee population, and improve em-
ployer-based health programs and policies. 
‘‘(b) DEMONSTRATION PROJECTS.— 
‘‘(1) IN
GENERAL.—The Secretary, acting 
through the Director of the Centers for Disease 
Control and Prevention, shall award grants to enti-
ties to enable such entities to carry out research 
demonstration projects to study the effect of the ap-
plication of new worksite-based health interventions 
and models. 
‘‘(2) ELIGIBILITY.—To be eligible to receive a 
grant under paragraph (1), an entity shall submit to 
the Secretary an application at such time, in such 
manner, and containing such information as the Sec-
retary may require. 
‘‘(3) BROAD
PARTICIPATION.—In awarding 
grants under paragraph (1), the Secretary shall en-
sure that demonstration projects are conducted in 
both the public and private sectors and in small and 
large employer settings. 
‘‘(4) SUBMISSION
OF
FINDINGS.—An entity 
shall submit to the Secretary a report on the results 
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of the research conducted under the grant within 
such period as the Secretary may prescribe. Such re-
port shall include any guidelines or recommendations 
developed by the entity based on such research. 
‘‘(c) IMPLEMENTATION OF RESEARCH RESULTS.— 
The Secretary shall carry out activities to implement the 
guidelines or recommendations received by the Secretary 
under subsection (b)(4) if the Secretary determines that 
such guidelines of recommendations would result in im-
proved employee health through worksite-based health 
programs or policies.’’. 
SEC. 304. EMPLOYER-PROVIDED OFF-PREMISES HEALTH 
CLUB SERVICES. 
(a) TREATMENT
AS FRINGE BENEFIT.—Subpara-
graph (A) of section 132(j)(4) of the Internal Revenue 
Code of 1986 (relating to on-premises gyms and other ath-
letic facilities) is amended to read as follows: 
‘‘(A) IN
GENERAL.—Gross income shall 
not include— 
‘‘(i) the value of any on-premises ath-
letic facility provided by an employer to its 
employees, and 
‘‘(ii) so much of the fees, dues, or 
membership expenses paid by an employer 
to an athletic or fitness facility described 
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in subparagraph (C) on behalf of its em-
ployees as does not exceed $900 per em-
ployee per year.’’. 
(b) ATHLETIC FACILITIES DESCRIBED.—Paragraph 
(4) of section 132(j) of the Internal Revenue Code of 1986 
(relating to special rules) is amended by adding at the end 
the following new subparagraph: 
‘‘(C) CERTAIN ATHLETIC OR FITNESS FA-
CILITIES
DESCRIBED.—For purposes of sub-
paragraph (A)(ii), an athletic or fitness facility 
described in this subparagraph is a facility— 
‘‘(i) which provides instruction in a 
program of physical exercise, offers facili-
ties for the preservation, maintenance, en-
couragement, or development of physical 
fitness, or is the site of such a program of 
a State or local government, 
‘‘(ii) which is not a private club owned 
and operated by its members, 
‘‘(iii) which does not offer golf, hunt-
ing, sailing, or riding facilities, 
‘‘(iv) whose health or fitness facility is 
not incidental to its overall function and 
purpose, and 
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‘‘(v) which is fully compliant with the 
State of jurisdiction and Federal anti-dis-
crimination laws.’’. 
(c) EXCLUSION APPLIES TO HIGHLY COMPENSATED 
EMPLOYEES
ONLY
IF
NO
DISCRIMINATION.—Section 
132(j)(1) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘Paragraphs (1) and (2) of sub-
section (a)’’ and inserting ‘‘Subsections (a)(1), 
(a)(2), and (j)(4)’’, and 
(2) by striking the heading thereof through 
‘‘APPLY’’ and inserting ‘‘CERTAIN EXCLUSIONS 
APPLY’’. 
(d) EMPLOYER DEDUCTION FOR DUES TO CERTAIN 
ATHLETIC FACILITIES.— 
(1) IN
GENERAL.—Paragraph (3) of section 
274(a) of the Internal Revenue Code of 1986 (relat-
ing to denial of deduction for club dues) is amended 
by adding at the end the following new sentence: 
‘‘The preceding sentence shall not apply to so much 
of the fees, dues, or membership expenses paid to 
athletic or fitness facilities (within the meaning of 
section 132(j)(4)(C)) as does not exceed $900 per 
employee per year.’’. 
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