In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Zero Gravity, Zero Tax Act of 
2003''.

SEC. 2. EXCLUSION OF SPACE-RELATED INCOME FROM GROSS INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 140 as section 
140A and inserting after section 139 the following new section:

``SEC. 140. SPACE-RELATED INCOME.

    ``(a) General Rule.--Gross income shall not include space-related 
income.
    ``(b) Space-Related Income.--
            ``(1) In general.--For purposes of this section, the term 
        `space-related income' means--
                    ``(A) income derived from the sale by the taxpayer 
                to an unrelated person of--
                            ``(i) any product or article which is 
                        produced by the taxpayer in outer space, and
                            ``(ii) any service provided by the taxpayer 
                        in or from outer space,
                    ``(B) income of an individual attributable to 
                services performed in or from outer space by such 
                individual in a trade or business, and
                    ``(C) any amount not described in subparagraph (A) 
                or (B) which is interest, rent, royalty, or similar 
                amount received with respect to production or service 
                described in subparagraph (A) or (B).
            ``(2) Exception for telecommunications services, etc.--
        Paragraph (1)(A)(ii) shall not apply to--
                    ``(A) any telecommunications service provided from 
                earth orbit,
                    ``(B) any service provided by a weather or other 
                earth observation satellite, and
                    ``(C) any other service provided on or before the 
                date of the enactment of this section of transporting 
                property to or from outer space.
            ``(3) Exception for wages.--Paragraph (1) shall not apply 
        to wages (as defined in section 3401) received by any employee 
        of an employer.
            ``(4) Proportional allocation between space-based and 
        earth-based activities.--In the case of any product or article 
        which is produced partly in space, space-related income shall 
        be an amount which bears the same ratio to the amount of gross 
        income attributable to the sale of such product or article as 
        the expenses attributable to producing such product or article 
        in space bears to the total expenses incurred in producing such 
        product or article.
            ``(5) Produced.--For purposes of this section, the term 
        `produced' includes created, fabricated, developed, grown, 
        manufactured, extracted, processed, cured, and aged.
    ``(c) Exclusion From Tariffs, Etc.--Any product--
            ``(1) which is manufactured in outer space, and
            ``(2) which was--
                    ``(A) launched from, and returned to Earth, within 
                the United States, or
                    ``(B) Manufactured at a facility in outer space 
                which is owned by 1 or more United States persons, 
                shall be exempt from all Federal excises, imposts, and 
                duties and any other Federal tariffs.
    ``(d) Phaseout of Benefits.--In the case of a taxable year 
beginning after December 31, 2012, the amount excluded under subsection 
(a) shall be reduced (but not below zero) by x/10th's of the amount 
excludable without regard to this subsection, where `x' is the number 
of years such taxable year is after the last taxable year beginning 
before January 1, 2013. A similar rule shall apply to the benefits 
under subsection (c).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 140. Space-related income.
                              ``Sec. 140A. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.

SEC. 3. CREDIT FOR PURCHASE OF QUALIFIED SPACE COMPANY STOCK.

    (a) In General.--Subpart D of part IV of subchapter 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 new section:

``SEC. 45G. SPACE COMPANY INVESTMENT CREDIT.

    ``(a) General Rule.--For purposes of section 38, the space company 
investment credit determined under this section for any taxable year is 
the amount paid in the taxable year for the purchase of qualified stock 
in a qualified space company.
    ``(b) Qualified Space Company.--For purposes of this section--
            ``(1) In general.--The term `qualified space company' means 
        a domestic C corporation if for the 3-taxable-year period 
        ending with the taxable year immediately preceding the taxable 
        year in which qualified stock is purchased--
                    ``(A) the average annual gross receipts of such 
                entity does not exceed $100,000,000, and
                    ``(B) more than 70 percent of such gross receipts 
                are derived from space-based business.
            ``(2) Space-based business.--The term `space-based 
        business' means a business whose gross receipts are 
        substantially space-related income, as defined in section 
        140(b).
            ``(3) Aggregation rules.--Rules similar to the rules of 
        section 1202(d)(3) shall apply.
    ``(c) Qualified Stock.--For purposes of this section--
            ``(1) In general.--Except as otherwise provided in this 
        section, the term `qualified stock' means any stock in a 
        domestic C corporation if--
                    ``(A) as of the date of issuance of such stock, 
                such corporation is a qualified space company, and
                    ``(B) except as provided in subsections (f) and 
                (h), such stock is acquired by the taxpayer at its 
                original issue (directly or through an underwriter)--
                            ``(i) in exchange for money or other 
                        property (not including stock), or
                            ``(ii) as compensation for services 
                        provided to such corporation (other than 
                        services performed as an underwriter of such 
                        stock).
            ``(2) Active business requirement.--Stock in a corporation 
        shall not be treated as qualified stock unless, during 
        substantially all of the taxpayer's holding period for such 
        stock--
                    ``(A) such corporation meets active business 
                requirements substantially similar to the requirements 
                of section 1202(e), determined on the basis that the 
                qualified trade or business is a space-based business, 
                and
                    ``(B) such corporation is a C corporation.
            ``(3) Certain purchase by corporation of its own stock.--
        Rules similar to the rules of section 1202(c)(3) shall apply.
    ``(e) Recapture.--If, during any taxable year ending with or within 
the 10-year period beginning on the date qualified stock was purchased 
by the taxpayer, the issuer of such stock ceases to a qualified space 
company, the tax under this chapter for such taxable year shall be 
increased by the aggregate decrease in the credits allowed under 
section 38 for all prior taxable years which would have resulted solely 
from reducing to zero any credit determined under subsection (a) with 
respect to such stock.
    ``(f) Termination.--This section shall not apply to stock acquired 
after December 31, 2011.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code (defining current year business credit) is amended 
by striking ``plus'' at the end of paragraph (14), by striking the 
period at the end of paragraph (15) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(16) space company investment credit determined under 
        section 45G(a).''.
    (c) Conforming Amendments.--
            (1) Section 39(d) of such Code is amended by adding at the 
        end the following new paragraph:
            ``(11) No carryback of space company investment credit 
        before january 1, 2004.--No portion of the unused business 
        credit for any taxable year which is attributable to the space 
        company investment credit determined under section 45G may be 
        carried back to a taxable year beginning before January 1, 
        2004.''.
            (2) Subsection (c) of section 196 of such Code is amended 
        by striking ``and'' at the end of paragraph (9), by striking 
        the period at the end of paragraph (10) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(11) the space company investment credit determined under 
        section 45G(a).''.
            (3) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 45G. Space Company Investment 
                                        Credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to costs paid or incurred in taxable years beginning after 
December 31, 2003.

SEC. 4. CAPITAL GAINS EXCLUSION.

    (a) In General.--(1) Part I of subchapter P of the Internal Revenue 
Code of 1986 (relating to treatment of capital gains) is amended by 
adding at the end the following new section:

``SEC. 1203. EXCLUSION FOR GAINS FROM SALE OR EXCHANGE OF STOCK OF 
              QUALIFIED SPACE CORPORATIONS.

    ``(a) In General.--Gross income shall not include gain on the sale 
or exchange of any stock of a qualified space corporation.
    ``(b) Qualified Space Corporation.--For purposes of subsection (a), 
the term `qualified space corporation' means, with respect to any 
taxable year, a domestic corporation which is a C corporation if--
            ``(1) such corporation is organized exclusively for 
        providing to unrelated persons--
                    ``(A) any product or article which is produced 
                (within the meaning of section 140(b)(5)) by the 
                corporation in outer space, or
                    ``(B) any service provided by the corporation in or 
                from outer space, and
            ``(2) At least 90 percent of the expenses of such 
        corporation are attributable to the active conduct of a trade 
        or business of providing a product, article, or service 
        described in paragraph (1).
Such term shall not include a corporation providing a service, product, 
or article described in section 140(b)(2).''.
    (2) Clerical Amendment.--The table of sections for part I of 
subchapter P of such Code is amended by adding at the end the following 
new item:

                              ``Sec. 1203. Exclusion for gains from 
                                        sale or exchange of stock of 
                                        qualified space 
                                        corporations.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.
Zero Gravity, Zero Tax Act of 2003 - Amends the Internal Revenue Code to exclude from gross income: (1) space-related income; and (2) gain on the sale or exchange of any stock of a qualified space corporation.Establishes a space company investment credit for the purchase of qualified stock in a qualified space company.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel Efficiency Energy Act of 
2007''.

SEC. 2. DEFINITIONS.

    (a) Automobile.--Section 32901(a)(3) of title 49, United States 
Code, is amended--
            (1) by striking ``4-wheeled''; and
            (2) by striking ``, and rated at--'' and all that follows 
        and inserting a period.
    (b) Medium-Duty Truck.--Section 32901(a) of such title is amended--
            (1) by redesignating paragraphs (14), (15), and (16) as 
        paragraphs (15), (16), and (17), respectively; and
            (2) by inserting after paragraph (13) the following:
            ``(14) `medium-duty truck' means a truck (as defined in 
        section 30127) with a gross vehicle weight between 10,000 and 
        26,000 pounds.''.
    (c) Passenger Automobile.--Section 32901(a)(17) of such title, as 
redesignated by subsection (b)(1), is amended by striking ``decides by 
regulation--'' and all that follows through the period and inserting 
``determines by regulation, to have a significant feature (except 4-
wheel drive) designed for off-highway operation.''.
    (d) Fuel Economy Information.--Section 32908(a) of such title is 
amended--
            (1) in the subsection heading, by striking ``Definitions'' 
        and inserting ``Definition''; and
            (2) by striking ``section--'' and all that follows through 
        ``(2)'' and inserting ``section, the term''.

SEC. 3. ANNUAL INCREASE IN AVERAGE FUEL ECONOMY STANDARDS.

    (a) Fuel Efficiency Standards.--
            (1) In general.--Section 32902 of title 49, United States 
        Code, is amended by striking subsections (a) through (c) and 
        inserting the following:
    ``(a) In General.--Not later than 18 months before the beginning of 
each model year beginning with model year 2012, the Secretary of 
Transportation, shall prescribe, by regulation, average fuel economy 
standards for automobiles manufactured by a manufacturer for that model 
year in accordance with subsection (b). The Secretary of Transportation 
shall prescribe separate average fuel economy standards for different 
classes of automobiles. The Secretary shall establish average fuel 
economy standards for medium-duty trucks that are consistent with the 
projected benefits of hybridization.
    ``(b) Annual Increases in Fuel Economy Standards.--
            ``(1) For model year 2012.--For model year 2012, the 
        average fuel economy standard for each class of automobiles 
        shall be the average combined highway and city miles per gallon 
        performance of all automobiles within that class of automobiles 
        in 2011 (rounded to the nearest \1/10\ mile per gallon).
            ``(2) For model years after model year 2012.--For each 
        model year beginning with model year 2013 and ending with model 
        year 2030, the average fuel economy attained by the fleet of 
        automobiles manufactured or sold in the United States shall be 
        at least 4 percent greater than the average fuel economy 
        standard for the fleet in the previous model year (rounded to 
        the nearest \1/10\ mile per gallon).
    ``(c) Amending Fuel Economy Standards.--
            ``(1) In general.--Notwithstanding subsections (a) and (b), 
        the Secretary of Transportation may prescribe an average fuel 
        economy standard for a class of automobiles in a model year 
        that is lower than the standard required under subsection (b) 
        if the Secretary of Transportation, in consultation with the 
        National Academy of Sciences, determines that the average fuel 
        economy standard prescribed in accordance with subsections (a) 
        and (b) for that class of automobiles in that model year--
                    ``(A) is not technologically achievable;
                    ``(B) cannot be achieved without materially 
                reducing the overall safety of automobiles manufactured 
                or sold in the United States and no offsetting safety 
                improvements can be practicably implemented for that 
                model year; or
                    ``(C) is shown not to be cost effective.
            ``(2) Maximum standard.--Any average fuel economy standard 
        prescribed for a class of automobiles in a model year under 
        paragraph (1) shall be the maximum standard that--
                    ``(A) is technologically achievable;
                    ``(B) can be achieved without materially reducing 
                the overall safety of automobiles manufactured or sold 
                in the United States; and
                    ``(C) is cost effective.
            ``(3) Considerations in determination of cost 
        effectiveness.--In determining cost effectiveness under 
        paragraph (1)(C), the Secretary of Transportation shall take 
        into account the total value to the United States of reduced 
        petroleum use, including the value of reducing external costs 
        of petroleum use, using a value for such costs equal to 50 
        percent of the value of 1 gallon of gasoline saved or the 
        amount determined in an analysis of the external costs of 
        petroleum use that considers--
                    ``(A) value to consumers;
                    ``(B) economic security;
                    ``(C) national security;
                    ``(D) foreign policy;
                    ``(E) the impact of oil use--
                            ``(i) on sustained cartel rents paid to 
                        foreign suppliers;
                            ``(ii) on long-run potential gross domestic 
                        product due to higher normal-market oil price 
                        levels, including inflationary impacts;
                            ``(iii) on import costs, wealth transfers, 
                        and potential gross domestic product due to 
                        increased trade imbalances;
                            ``(iv) on import costs and wealth transfers 
                        during oil shocks;
                            ``(v) on macroeconomic dislocation and 
                        adjustment costs during oil shocks;
                            ``(vi) on the cost of existing energy 
                        security policies, including the management of 
                        the Strategic Petroleum Reserve;
                            ``(vii) on the timing and severity of the 
                        oil peaking problem;
                            ``(viii) on the risk, probability, size, 
                        and duration of oil supply disruptions;
                            ``(ix) on the strategic behavior of the 
                        Organization of the Petroleum Exporting 
                        Countries and long-run oil pricing;
                            ``(x) on the short term elasticity of 
                        energy demand and the magnitude of price 
                        increases resulting from a supply shock;
                            ``(xi) on oil imports, military costs, and 
                        related security costs, including intelligence, 
                        homeland security, sea lane security and 
                        infrastructure, and other military activities;
                            ``(xii) on oil imports, diplomatic and 
                        foreign policy flexibility, and connections to 
                        geopolitical strife, terrorism, and 
                        international development activities;
                            ``(xiii) all relevant environmental hazards 
                        under the jurisdiction of the Environmental 
                        Protection Agency; and
                            ``(xiv) on well-to-wheels urban and local 
                        air emissions of pollutants and their 
                        uninternalized costs;
                    ``(F) the impact of the oil or energy intensity of 
                the United States economy on the sensitivity of the 
                economy to oil price changes, including the magnitude 
                of gross domestic product losses in response to short 
                term price shocks or long term price increases;
                    ``(G) the impact of United States payments for oil 
                imports on political, economic, and military 
                developments in unstable or unfriendly oil-exporting 
                countries;
                    ``(H) the uninternalized costs of pipeline and 
                storage oil seepage, and for risk of oil spills from 
                production, handling, and transport, and related 
                landscape damage; and
                    ``(I) additional relevant factors, as determined by 
                the Secretary.
            ``(4) Minimum valuation.--When considering the value to 
        consumers of a gallon of gasoline saved, the Secretary of 
        Transportation may not use a value less than the greatest of--
                    ``(A) the average national cost of a gallon of 
                gasoline sold in the United States during the 12-month 
                period ending on the date on which the new fuel economy 
                standard is proposed;
                    ``(B) the most recent weekly estimate by the Energy 
                Information Administration of the Department of Energy 
                of the average national cost of a gallon of gasoline 
                (all grades) sold in the United States; and
                    ``(C) the gasoline prices projected by the Energy 
                Information Administration for the 20-year period 
                beginning in the year following the year in which the 
                standards are established.''.
            (2) Conforming amendments.--Title 49, United States Code, 
        is amended--
                    (A) in section 32902--
                            (i) in subsection (d) by striking 
                        ``subsection (b) or (c) of this section'' and 
                        inserting ``subsection (a), (b), or (c)'';
                            (ii) by striking subsection (f);
                            (iii) in subsection (g)--
                                    (I) by striking ``subsection (a) or 
                                (d)'' and inserting ``this section''; 
                                and
                                    (II) by striking ``(and submit the 
                                amendment to Congress when required 
                                under subsection (c)(2) of this 
                                section)''; and
                            (iv) in subsection (h) by striking 
                        ``subsections (c), (f), and (g) of this 
                        section'' and inserting ``subsections (c) and 
                        (g)'';
                    (B) in section 32903--
                            (i) by striking ``section 32902(b)-(d) of 
                        this title'' each place it occurs and inserting 
                        ``subsections (a) through (d) of section 
                        32902''; and
                            (ii) in subsection (e), by striking 
                        ``section 32902(a) of this title'' and 
                        inserting ``subsections (a) through (d) of 
                        section 32902''; and
                    (C) in section 32904--
                            (i) in subsection (a)--
                                    (I) by striking ``subject to--'' 
                                and all that follows through ``(B) 
                                section 32902(a)-(d) of this title'' 
                                and inserting ``subject to subsections 
                                (a) through (d) of section 32902''; and
                                    (II) by redesignating clauses (i) 
                                and (ii) as subparagraphs (A) and (B), 
                                respectively.
    (b) Repeal of Credit for Dual Fueled Automobiles.--
            (1) In general.--Section 32905 of title 49, United States 
        Code, is amended--
                    (A) by amending subsection (b) to read as follows:
    ``(b) Dual Fueled Automobiles.--The Administrator of the 
Environmental Protection Agency shall measure the fuel economy for any 
model of dual fueled automobile manufactured in model year 2012 and any 
model year thereafter, in accordance with section 32904.''; and
                    (B) by amending subsection (d) to read as follows:
    ``(d) Gaseous Fuel Dual Fueled Automobiles.--The Administrator of 
the Environmental Protection Agency shall measure the fuel economy for 
any model of gaseous fuel dual fueled automobile manufactured in model 
year 2012 and any model year thereafter, in accordance with section 
32904.''.
            (2) Conforming amendments.--Section 32905 of such title is 
        further amended--
                    (A) by striking subsection (f); and
                    (B) redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively.

SEC. 4. REQUIREMENT TO INCREASE PERCENTAGE OF DUAL FUELED AUTOMOBILES.

    Section 32902 of title 49, United States Code, as amended by 
section 3, is further amended by inserting after subsection (e) the 
following:
    ``(f) Requirement for Annual Increase in Duel Fueled Automobiles.--
Each manufacturer shall ensure that the percentage of automobiles 
manufactured by such manufacturer in each of model years 2012 through 
2022 that are dual fueled automobiles is not less than 10 percent 
greater than the percentage of automobiles manufactured by such 
manufacturer in the previous model year that are dual fueled 
automobiles.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall--
            (1) take effect on January 1, 2010; and
            (2) apply to automobiles manufactured for model year 2012 
        and for each subsequent model year.
Fuel Efficiency Energy Act of 2007 - Amends corporate average fuel economy (CAFE) provisions to revise the definition of: (1) "automobile" to mean any vehicle that is propelled by fuel, or by alternative fuel, and is manufactured primarily for use on public streets, roads, and highways (currently, four-wheeled vehicles that are so propelled and manufactured for such use and that are up to 6,000 pounds and certain vehicles between 6,000 and 10,000 pounds); and (2) "passenger automobile" to eliminate the exception for 4-wheel drive automobiles and vehicles weighing more than 6,000 pounds. Defines "medium-duty truck" as a truck with a gross vehicle weight between 10,000 and 26,000 pounds.

Requires the Secretary of Transportation to: (1) prescribe separate increased minimum CAFE standards for different classes of automobiles manufactured beginning for model year 2012, but adds an increase of 4% per year in such standard for model years 2013 through 2030; and (2) establish CAFE standards for medium-duty trucks that are consistent with hybridization beginning for model year 2012.

Revises the calculation of fuel economy standards for dual fueled automobiles and gaseous fuel dual fueled automobiles manufactured in model year 2012 and beyond to require using the same calculation provisions as used for gas or diesel fueled vehicles. Repeals provisions allowing the Department of Transportation (DOT) to extend manufacturing credits for such automobiles.

SECTION 1. TO EXPRESS THE SENSE OF THE SENATE REGARDING MEDICAID 
              RECONCILIATION LEGISLATION TO BE REPORTED BY A CONFERENCE 
              COMMITTEE.

    (a) Findings.--The Senate makes the following findings:
            (1) The Medicaid program provides essential health care and 
        long-term care services to more than 50,000,000 low-income 
        children, pregnant women, parents, individuals with 
        disabilities, and senior citizens. It is a Federal guarantee 
        that ensures that the most vulnerable will have access to 
        needed medical services.
            (2) The Medicaid program provides critical access to long-
        term care and other services for the elderly and individuals 
        living with disabilities, and is the single largest provider of 
        long-term care services. The Medicaid program also pays for 
        personal care and other supportive services that are typically 
        not provided by private health insurance or under the Medicare 
        program, but are necessary to enable individuals with spinal 
        cord injuries, developmental disabilities, neurological 
        degenerative diseases, serious and persistent mental illnesses, 
        HIV/AIDS, and other chronic conditions to remain in the 
        community, to work, and to maintain independence.
            (3) The Medicaid program supplements the Medicare program 
        for more than 6,000,000 low-income elderly or disabled Medicare 
        beneficiaries, assisting those beneficiaries with their 
        Medicare premiums and co-insurance, wrap-around benefits, and 
        the costs of nursing home care that the Medicare program does 
        not cover. The Medicaid program spent nearly $40,000,000,000 in 
        2002 on services not covered under the Medicare program.
            (4) The Medicaid program provides health insurance for more 
        than \1/4\ of America's children and is the largest purchaser 
        of maternity care, paying for more than \1/3\ of all the births 
        in the United States each year. The Medicaid program also 
        provides vital access to care for children with disabilities, 
        covering more than 70 percent of the poor children with 
        disabilities in the United States.
            (5) Medicaid's benefits for children are comprehensive, 
        including mandatory coverage for Early and Periodic Screening 
        Diagnosis and Treatment benefits covering all medically 
        necessary care. Medicaid ensures that children have the 
        benefits, health services and health care support they need to 
        be fully immunized and that children can secure eyeglasses, 
        dental care, and hearing aids when necessary, and that children 
        have access to comprehensive, regularly scheduled, and as-
        needed health examinations, as well as preventive 
        interventions, to correct physical and mental conditions that 
        threaten to delay proper growth and development.
            (6) More than 16,000,000 American women depend on the 
        Medicaid program for their health care. Women comprise the 
        majority of seniors (71 percent) on Medicaid. Half of 
        nonelderly women with permanent mental or physical disabilities 
        have health care coverage under the Medicaid program. The 
        Medicaid program also provides critical access to treatment for 
        low-income women diagnosed with breast or cervical cancer.
            (7) The Medicaid program is the Nation's largest source of 
        payment for mental health services, HIV/AIDS care, and care for 
        children with special needs. Much of this care is either not 
        covered by private insurance or is limited in scope or 
        duration. The Medicaid program is also a critical source of 
        funding for health care for children in foster care and for 
        health care services provided in schools.
            (8) Funds under the Medicaid program help to ensure access 
        to care for all Americans. The Medicaid program is the single 
        largest source of revenue for the Nation's safety net 
        hospitals, health centers, and nursing homes, and is critical 
        to the ability of these providers to adequately serve all 
        Americans.
            (9) The Medicaid program serves a major role in ensuring 
        that the number of Americans without health insurance, 
        approximately 45,000,000 in 2003, is not substantially higher. 
        The system of Federal matching for State Medicaid expenditures 
        ensures that Federal funds will grow as State spending 
        increases in response to unmet needs, enabling the Medicaid 
        program to help buffer the drop in private coverage during 
        recessions. More than 4,800,000 Americans lost employer-
        sponsored health care coverage between 2000 and 2003, during 
        which time the Medicaid program enrolled an additional 
        8,400,000 Americans.
            (10) Many individuals living below the Federal poverty 
        level are ineligible for Medicaid because of stringent income 
        eligibility rules. For parents, eligibility levels are often 
        very far below the Federal poverty level. On average, a working 
        parent in a family of three would have to make less than $224 
        per week and a non-working parent in a family of three would 
        have to make less than $150 per week to qualify. Single 
        individuals with disabilities would be ineligible if they have 
        more than $147 per week in income.
            (11) Eligibility levels for pregnant women and children are 
        generally at or just above the Federal poverty level, but a 
        family with income just over minimum wage can be disqualified 
        for Medicaid. At the minimum eligibility levels for pregnant 
        women, earning as little as $8.80 per hour at a full-time job 
        could disqualify a pregnant woman from Medicaid eligibility. A 
        working parent in a family of three earning less than $8.40 per 
        hour at a full-time job could make their child 6 years-old or 
        older ineligible for Medicaid.
            (12) Title III of the budget reconciliation bill of the 
        House of Representatives, as reported out by the Committee on 
        Energy and Commerce, would adversely affect these low-income 
        beneficiaries, many of whom are children or have special health 
        care needs, by increasing beneficiary cost-sharing, limiting 
        access to benefits, and restricting eligibility for long-term 
        care services that the Medicaid program covers. These new 
        limits make up \2/3\ of the House of Representative's projected 
        Medicaid spending reductions, accounting for $30,100,000,000 of 
        the total $45,300,000,000 in Medicaid reductions over 10 years.
            (13) Making beneficiaries pay more for more limited 
        benefits under Medicaid may put a significant financial burden 
        on these very low-income individuals. Research also 
        demonstrates that increasing beneficiary cost-sharing can make 
        prescription drugs and other essential health services 
        unaffordable for beneficiaries, can cause the health of 
        children and adults to deteriorate, and can lead to higher 
        emergency room and hospital costs.
            (14) By contrast, while S. 1932, as passed by the Senate on 
        November 3, 2005, includes substantial cuts to the Medicaid 
        program, it does not include direct limits on beneficiary 
        access to Medicaid services. Even so, enactment of S. 1932 
        would result in a net Medicaid cut of $14,200,000,000 over 10 
        years, less than \1/3\ of the projected Medicaid reductions 
        contained in the House of Representative's budget 
        reconciliation bill.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
conferees for any budget reconciliation bill of the 109th Congress 
shall not report a reconciliation bill that would--
            (1) with respect to low-income children, pregnant women, 
        disabled individuals, elderly individuals, individuals with 
        chronic illnesses like HIV/AIDS, cancer, and diabetes, 
        individuals with mental illnesses, and other Medicaid 
        beneficiaries--
                    (A) impair access to Medicaid services;
                    (B) undermine eligibility for such Medicaid 
                beneficiaries;
                    (C) make Medicaid services unavailable by making 
                them unaffordable to such Medicaid beneficiaries; or
                    (D) cut health care services for such Medicaid 
                beneficiaries; or
            (2) undermine the Federal guarantee of health insurance 
        coverage that the Medicaid program provides, which would 
        threaten not only the health care safety net of the United 
        States, but the entire health care system of the United States.

Expresses the sense of the Senate that the conferees for any budget reconciliation bill of the 109th Congress shall not report a reconciliation bill that would with respect to low-income children, pregnant women, disabled individuals, elderly individuals, individuals with chronic illnesses like HIV/AIDS, cancer, and diabetes, individuals with mental illnesses, and other Medicaid beneficiaries: (1) impair access to Medicaid services; (2) undermine eligibility for such beneficiaries; (3) make Medicaid services unaffordable, hence unavailable, to them; or (4) cut health care services them.

 Expresses the sense of the Senate, also, that the conferees shall not report a reconciliation bill that would undermine the federal guarantee of health insurance coverage that the Medicaid program provides, which would threaten not only the health care safety net of the United States, but the entire health care system of the United States.