TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Keeping Families 
Together Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restoration of definition of aggravated felony (repeal of 
                            section 321 of IIRIRA).
Sec. 3. Restoration of detention policy.
Sec. 4. Repeal of time stop provisions.
Sec. 5. Repeal of section 101(a)(48).
Sec. 6. Restoration of section 212(c).
Sec. 7. Restoration of judicial review provisions.
Sec. 8. Post-proceeding relief for affected aliens.

SEC. 2. RESTORATION OF DEFINITION OF AGGRAVATED FELONY (REPEAL OF 
              SECTION 321 OF IIRIRA).

    (a) In General.--Effective as if included in the enactment of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 
(division C of Public Law 104-208), section 321 of such Act is repealed 
and the provisions of law amended by such section are restored as if 
such section had not been enacted.
    (b) Restoration of Rights.--Any alien whose legal permanent 
resident status, application for permanent residence, or application 
for cancellation of removal, was affected by the changes in the 
definition of ``aggravated felony'' made by such section 321 may apply 
to the Secretary of Homeland Security to be considered for adjustment 
of status or cancellation of removal in conformance with the provisions 
of section 101(a)(43) of the Immigration and Nationality Act, as 
restored by subsection (a).

SEC. 3. RESTORATION OF DETENTION POLICY.

    (a) In General.--Section 236(c) of the Immigration and Nationality 
Act (8 U.S.C. 1226(c)) is amended to read as follows:
    ``(c) Detention of Criminal Aliens.--
            ``(1) In general.--The Secretary of Homeland Security shall 
        take into custody any alien convicted of an aggravated felony 
        upon release of the alien (regardless of whether or not such 
        release is on parole, supervised release, or probation, and 
        regardless of the possibility of rearrest or further 
        confinement in respect of the same offense). Notwithstanding 
        subsection (a) or section 241(a) but subject to paragraph (2), 
        the Secretary of Homeland Security shall not release such felon 
        from custody.
            ``(2) Non-release.--The Secretary of Homeland Security may 
        not release from custody any who has been convicted of an 
        aggravated felony, either before or after a determination of 
        removability, unless--
                    ``(A)(i) the alien was lawfully admitted, or
                    ``(ii) the alien was not lawfully admitted but the 
                alien cannot be removed because the designated country 
                of removal will not accept the alien; and
                    ``(B) the alien satisfies the Secretary of Homeland 
                Security that the alien will not pose a danger to the 
                safety of other persons or of property and is likely to 
                appear for any scheduled proceeding.''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective as if included in the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996.

SEC. 4. REPEAL OF TIME STOP PROVISIONS.

    (a) In General.--Section 240A(d) of the Immigration and Nationality 
Act (8 U.S.C. 1229b(d)) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall be 
effective as if included in the enactment of subtitle A of title III of 
the Illegal Immigration Reform and Immigrant Responsibility Act of 
1996.

SEC. 5. REPEAL OF SECTION 101(A)(48).

    (a) In General.--Paragraph (48) of section 101(a)(48) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall take 
effect as if included in the enactment of section 322(a) of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996.

SEC. 6. RESTORATION OF SECTION 212(C).

    (a) In General.--Section 212 of the Immigration and Nationality Act 
(8 U.S.C. 1182) is amended by inserting after subsection (b) the 
following new subsection:
    ``(c) Aliens lawfully admitted for permanent residence who 
temporarily proceeded abroad voluntarily and not under an order of 
deportation or removal, and who are returning to a lawful 
unrelinquished domicile of seven consecutive years, may be admitted in 
the discretion of the Secretary of Homeland Security without regard to 
the provisions of subsection (a) (other than paragraphs (3) and 
(10)(C)). Nothing contained in this subsection shall limit the 
authority of the Secretary of Homeland Security to exercise the 
discretion vested in him under section 211(b). The first sentence of 
this subsection shall not apply to an alien who has been convicted of 
one or more aggravated felonies and has served for such felony or 
felonies a term of imprisonment of at least 5 years.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
as of April 24, 1996, as if section 440(d) of the Antiterrorism and 
Effective Death Penalty Act of 1996 (Public Law 104-132) and section 
304(b) of Illegal Immigration Reform and Immigrant Responsibility Act 
of 1996 (division C of Public Law 104-208) had not been enacted.

SEC. 7. RESTORATION OF JUDICIAL REVIEW PROVISIONS.

    (a) In General.--Section 242 of the Immigration and Nationality Act 
(8 U.S.C. 1252) is amended to read as follows:

                 ``judicial review of orders of removal

    ``Sec. 242.  (a) The procedure prescribed by, and all the 
provisions of chapter 158 of title 28, United States Code, shall apply 
to, and shall be the sole and exclusive procedure for, the judicial 
review of all final orders of removal heretofore or hereafter made 
against aliens within the United States pursuant to administrative 
proceedings under section 240 of this Act or comparable provisions of 
any prior Act, except that--
            ``(1) a petition for review may be filed not later than 90 
        days after the date of the issuance of the final removal order, 
        or, in the case of an alien convicted of an aggravated felony 
        not later than 30 days after the issuance of such order;
            ``(2) the venue of any petition for review under this 
        section shall be in the judicial circuit in which the 
        administrative proceedings before an immigration judge were 
        conducted in whole or in part, or in the judicial circuit 
        wherein is the residence, as defined in this Act, of the 
        petitioner, but not in more than one circuit;
            ``(3) the action shall be brought against the Department of 
        Homeland Security, as respondent. Service of the petition to 
        review shall be made upon the Secretary of Homeland Security of 
        the United States and upon the official of the Department of 
        Homeland Security in charge of the district in which the office 
        of the clerk of the court is located. The service of the 
        petition for review upon such official of the Service shall 
        stay the removal of the alien pending determination of the 
        petition by the court, unless the court otherwise directs or 
        unless the alien is convicted of an aggravated felony, in which 
        case the Service shall not stay the removal of the alien 
        pending determination of the petition of the court unless the 
        court otherwise directs;
            ``(4) except as provided in clause (B) of paragraph (5) of 
        this subsection, the petition shall be determined solely upon 
        the administrative record upon which the removal order is based 
        and the Secretary of Homeland Security's findings of fact, if 
        supported by reasonable, substantial, and probative evidence on 
        the record considered as a whole, shall be conclusive;
            ``(5) whenever any petitioner, who seeks review of an order 
        under this section, claims to be a national of the United 
        States and makes a showing that his claim is not frivolous, the 
        court shall (A) pass upon the issues presented when it appears 
        from the pleadings and affidavits filed by the parties that no 
        genuine issue of material fact is presented; or (B) where a 
        genuine issue of material fact as to the petitioner's 
        nationality is presented, transfer the proceedings to a United 
        States district court for the district where the petitioner has 
        his residence for hearing de novo of the nationality claim and 
        determination as if such proceedings were originally initiated 
        in the district court under the provisions of section 2201 of 
        title 28, United States Code. Any such petitioner shall not be 
        entitled to have such issue determined under section 360(a) of 
        this Act or otherwise;
            ``(6) whenever a petitioner seeks review of an order under 
        this section, any review sought with respect to a motion to 
        reopen or reconsider such an order shall be consolidated with 
        the review of the order;
            ``(7) if the validity of a removal order has not been 
        judicially determined, its validity may be challenged in a 
        criminal proceeding against the alien for violation of 
        subsection (a) or (b) of section 243 of this Act only by 
        separate motion for judicial review before trial. Such motion 
        shall be determined by the court without a jury and before the 
        trial of the general issue. Whenever a claim to United States 
        nationality is made in such motion, and in the opinion of the 
        court, a genuine issue of material fact as to the alien's 
        nationality is presented, the court shall accord him a hearing 
        de novo on the nationality claim and determine that issue as if 
        proceedings had been initiated under the provisions of section 
        2201 of title 28, United States Code. Any such alien shall not 
        be entitled to have such issue determined under section 360(a) 
        of this Act or otherwise. If no such hearing de novo as to 
        nationality is conducted, the determination shall be made 
        solely upon the administrative record upon which the removal 
        order is based and the Secretary of Homeland Security's 
        findings of fact, if supported by reasonable, substantial, and 
        probative evidence on the record considered as a whole, shall 
        be conclusive. If the removal order is held invalid, the court 
        shall dismiss the indictment and the United States shall have 
        the right to appeal to the court of appeals within 30 days. The 
        procedure on such appeals shall be as provided in the Federal 
        rules of criminal procedure. No petition for review under this 
        section may be filed by any alien during the pendency of a 
        criminal proceeding against such alien for violation of 
        subsection (a) or (b) of section 243 of this Act;
            ``(8) nothing in this section shall be construed to require 
        the Secretary of Homeland Security to defer removal of an alien 
        after the issuance of a removal order because of the right of 
        judicial review of the order granted by this section, or to 
        relieve any alien from compliance with subsections (a) and (b) 
        of section 243 of this Act. Nothing contained in this section 
        shall be construed to preclude the Secretary of Homeland 
        Security from detaining or continuing to detain an alien or 
        from taking the alien into custody pursuant to section 241 of 
        this Act at any time after the issuance of a removal order;
            ``(9) it shall not be necessary to print the record or any 
        part thereof, or the briefs, and the court shall review the 
        proceedings on a typewritten record and on typewritten briefs; 
        and
            ``(10) any alien held in custody pursuant to an order of 
        removal may obtain judicial review thereof by habeas corpus 
        proceedings.
    ``(b) Notwithstanding the provisions of any other law, any alien 
against whom a final order of removal has been made heretofore or 
hereafter under the provisions of section 235 of this Act or comparable 
provisions of any prior Act may obtain judicial review of such order by 
habeas corpus proceedings and not otherwise.
    ``(c) An order of removal shall not be reviewed by any court if the 
alien has not exhausted the administrative remedies available to the 
alien as of right under the immigration laws and regulations or if the 
alien has departed from the United States after the issuance of the 
order. Every petition for review or for habeas corpus shall state 
whether the validity of the order has been upheld in any prior judicial 
proceeding, and, if so, the nature and date thereof, and the court in 
which such proceeding took place. No petition for review or for habeas 
corpus shall be entertained if the validity of the order has been 
previously determined in any civil or criminal proceeding, unless the 
petition presents grounds which the court finds could not have been 
presented in such prior proceeding, or the court finds that the remedy 
provided by such prior proceeding was inadequate or ineffective to test 
the validity of the order.
    ``(d)(1) A petition for review or for habeas corpus on behalf of an 
alien against whom a final order of removal has been issued pursuant to 
section 238(b) may challenge only--
            ``(A) whether the alien is in fact the alien described in 
        the order;
            ``(B) whether the alien is in fact an alien described in 
        section 238(b)(2);
            ``(C) whether the alien has been convicted of an aggravated 
        felony and such conviction has become final; and
            ``(D) whether the alien was afforded the procedures 
        required by section 238(b)(4).
    ``(2) No court shall have jurisdiction to review any issue other 
than an issue described in paragraph (1).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply to 
determinations pending on or after such date with respect to which--
            (1) a final administrative decision has been/not been 
        rendered as of such date; or
            (2) such a decision has been rendered but the period for 
        seeking judicial review of the decision has not expired.

SEC. 8. POST-PROCEEDING RELIEF FOR AFFECTED ALIENS.

    (a) In General.--Notwithstanding section 240(c)(6) of the 
Immigration and Nationality Act (8 U.S.C. 1229a(c)(6)) or any other 
limitation imposed by law on motions to reopen removal proceedings, the 
Secretary of Homeland Security shall establish a process (whether 
through permitting the reopening of a removal proceeding or otherwise) 
under which an alien--
            (1) who is (or was) in removal proceedings before the date 
        of the enactment of this Act (whether or not the alien has been 
        removed as of such date); and
            (2) whose eligibility for cancellation of removal has been 
        established by this Act;
may apply (or reapply) for cancellation of removal under section 
240A(a) of the Immigration and Nationality Act (8 U.S.C. 1229b(a)) as a 
beneficiary of the relief provided under this Act.
    (b) Parole.--The Secretary of Homeland Security should exercise the 
parole authority under section 212(d)(5)(A) of the Immigration and 
Nationality Act (8 U.S.C. 1182(d)(5)(A)) for the purpose of permitting 
aliens removed from the United States to participate in the process 
established under subsection (a).

SOLUTION: Keeping Families Together Act of 2005 - Amends the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Act) to repeal the provision amending the definition of "aggravated felony," and restore provisions of law amended by such provision as if it had not been enacted, including residency-or status-related rights of an affected legal alien.

Amends the Immigration and Nationality Act to revise detention of criminal alien provisions, effective as if included in the Act.

Repeals, as if included in the Act: (1) certain provisions respecting termination of continuous presence or physical presence in the United States; and (2) the definition of "conviction."

Authorizes the Secretary of Homeland Security to admit certain lawfully admitted permanent resident aliens returning to the United States who temporarily proceeded abroad voluntarily and not under an order of deportation or removal, effective as of a specified date, as if certain sections of the Antiterrorism and Effective Death Penalty Act of 1996 and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 had not been enacted.

Revises provisions respecting judicial review of removal orders.

Requires the Secretary to establish a post-proceeding removal relief process for affected aliens.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children's Health Equity Act of 
2003''.

SEC. 2. AUTHORITY FOR QUALIFYING STATES TO USE SCHIP FUNDS FOR MEDICAID 
              EXPENDITURES.

    Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is 
amended by adding at the end the following:
    ``(g) Authority for Qualifying States To Use Certain Funds for 
Medicaid Expenditures.--
            ``(1) State option.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, with respect to fiscal years in which 
                allotments for a fiscal year under section 2104 
                (beginning with fiscal year 1998) are available under 
                subsections (e) and (g) of that section, a qualifying 
                State (as defined in paragraph (2)) may elect to use 
                such allotments (instead of for expenditures under this 
                title) for payments for such fiscal year under title 
                XIX in accordance with subparagraph (B).
                    ``(B) Payments to states.--
                            ``(i) In general.--In the case of a 
                        qualifying State that has elected the option 
                        described in subparagraph (A), subject to the 
                        total amount of funds described with respect to 
                        the State in subparagraph (A), the Secretary 
                        shall pay the State an amount each quarter 
                        equal to the additional amount that would have 
                        been paid to the State under title XIX for 
                        expenditures of the State for the fiscal year 
                        described in clause (ii) if the enhanced FMAP 
                        (as determined under subsection (b)) had been 
                        substituted for the Federal medical assistance 
                        percentage (as defined in section 1905(b)) of 
                        such expenditures.
                            ``(ii) Expenditures described.--For 
                        purposes of clause (i), the expenditures 
                        described in this clause are expenditures for 
                        such fiscal years for providing medical 
                        assistance under title XIX to individuals who 
                        have not attained age 19 and whose family 
                        income exceeds 133 percent of the poverty line.
                            ``(iii) No impact on determination of 
                        budget neutrality for waivers.--In the case of 
                        a qualifying State that uses amounts paid under 
                        this subsection for expenditures described in 
                        clause (ii) that are incurred under a waiver 
                        approved for the State, any budget neutrality 
                        determinations with respect to such waiver 
                        shall be determined without regard to such 
                        amounts paid.
            ``(2) Qualifying state.--In this subsection, the term 
        `qualifying State' means a State that--
                    ``(A) as of April 15, 1997, has an income 
                eligibility standard with respect to any 1 or more 
                categories of children (other than infants) who are 
                eligible for medical assistance under section 
                1902(a)(10)(A) or under a waiver under section 1115 
                implemented on January 1, 1994, that is up to 185 
                percent of the poverty line or above; and
                    ``(B) satisfies the requirements described in 
                paragraph (3).
            ``(3) Requirements.--The requirements described in this 
        paragraph are the following:
                    ``(A) SCHIP income eligibility.--The State has a 
                State child health plan that (whether implemented under 
                title XIX or this title)--
                            ``(i) as of January 1, 2001, has an income 
                        eligibility standard that is at least 200 
                        percent of the poverty line or has an income 
                        eligibility standard that exceeds 200 percent 
                        of the poverty line under a waiver under 
                        section 1115 that is based on a child's lack of 
                        health insurance;
                            ``(ii) subject to subparagraph (B), does 
                        not limit the acceptance of applications for 
                        children; and
                            ``(iii) provides benefits to all children 
                        in the State who apply for and meet eligibility 
                        standards on a statewide basis.
                    ``(B) No waiting list imposed.--With respect to 
                children whose family income is at or below 200 percent 
                of the poverty line, the State does not impose any 
                numerical limitation, waiting list, or similar 
                limitation on the eligibility of such children for 
                child health assistance under such State plan.
                    ``(C) Additional requirements.--The State has 
                implemented at least 3 of the following policies and 
                procedures (relating to coverage of children under 
                title XIX and this title):
                            ``(i) Uniform, simplified application 
                        form.--With respect to children who are 
                        eligible for medical assistance under section 
                        1902(a)(10)(A), the State uses the same 
                        uniform, simplified application form 
                        (including, if applicable, permitting 
                        application other than in person) for purposes 
                        of establishing eligibility for benefits under 
                        title XIX and this title.
                            ``(ii) Elimination of asset test.--The 
                        State does not apply any asset test for 
                        eligibility under section 1902(l) or this title 
                        with respect to children.
                            ``(iii) Adoption of 12-month continuous 
                        enrollment.--The State provides that 
                        eligibility shall not be regularly redetermined 
                        more often than once every year under this 
                        title or for children described in section 
                        1902(a)(10)(A).
                            ``(iv) Same verification and 
                        redetermination policies; automatic 
                        reassessment of eligibility.--With respect to 
                        children who are eligible for medical 
                        assistance under section 1902(a)(10)(A), the 
                        State provides for initial eligibility 
                        determinations and redeterminations of 
                        eligibility using the same verification 
                        policies (including with respect to face-to-
                        face interviews), forms, and frequency as the 
                        State uses for such purposes under this title, 
                        and, as part of such redeterminations, provides 
                        for the automatic reassessment of the 
                        eligibility of such children for assistance 
                        under title XIX and this title.
                            ``(v) Outstationing enrollment staff.--The 
                        State provides for the receipt and initial 
                        processing of applications for benefits under 
                        this title and for children under title XIX at 
                        facilities defined as disproportionate share 
                        hospitals under section 1923(a)(1)(A) and 
                        Federally-qualified health centers described in 
                        section 1905(l)(2)(B) consistent with section 
                        1902(a)(55).''.

SOLUTION: Children's Health Equity Act of 2003 - Amends title XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act (SSA) to grant authority for qualifying States to use SCHIP funds for Medicaid (SSA title XIX) expenditures.

PROBLEM: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Individual 
Retirement Account Equity and Enhancement Act of 1994''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUCTION.

    (a) Spousal IRA Computed on Basis of Compensation of Both 
Spouses.--Subsection (c) of section 219 (relating to special rules for 
certain married individuals) is amended to read as follows:
    ``(c) Special Rules for Certain Married Individuals.--
            ``(1) In general.--In the case of an individual to whom 
        this paragraph applies for the taxable year, the limitation of 
        paragraph (1) of subsection (b) shall be equal to the lesser 
        of--
                    ``(A) $2,000, or
                    ``(B) the sum of--
                            ``(i) the compensation includible in such 
                        individual's gross income for the taxable year, 
                        plus
                            ``(ii) the compensation includible in the 
                        gross income of such individual's spouse for 
                        the taxable year reduced by the amount 
                        allowable as a deduction under subsection (a) 
                        to such spouse for such taxable year.
            ``(2) Individuals to whom paragraph (1) applies.--Paragraph 
        (1) shall apply to any individual if--
                    ``(A) such individual files a joint return for the 
                taxable year, and
                    ``(B) the amount of compensation (if any) 
                includible in such individual's gross income for the 
                taxable year is less than the compensation includible 
                in the gross income of such individual's spouse for the 
                taxable year.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 219(f) (relating to other 
        definitions and special rules) is amended by striking 
        ``subsections (b) and (c)'' and inserting ``subsection (b)''.
            (2) Section 408(d)(5) is amended by striking ``$2,250'' and 
        inserting ``$2,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 3. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED WITHOUT PENALTY TO 
              PURCHASE FIRST HOMES, TO PAY HIGHER EDUCATION OR 
              QUALIFIED LONG-TERM CARE EXPENSES, OR BY THE LONG-TERM 
              UNEMPLOYED.

    (a) In General.--Paragraph (2) of section 72(t) (relating to 
exceptions to 10-percent additional tax on early distributions from 
qualified retirement plans) is amended by adding at the end the 
following new subparagraph:
            ``(D) Distributions from certain plans for first home 
        purchases or educational or long-term care expenses.--
        Distributions to an individual from an individual retirement 
        plan, or from amounts attributable to employer contributions 
        made pursuant to elective deferrals described in subparagraph 
        (A) or (C) of section 402(g)(3) or section 501(c)(18)(D)(iii)--
                    ``(i) which are qualified first-time homebuyer 
                distributions (as defined in paragraph (6)), or
                    ``(ii) to the extent such distributions do not 
                exceed the sum of the qualified higher education 
                expenses (as defined in paragraph (7)) and the 
                qualified long-term care expenses (as defined in 
                paragraph (8)) of the taxpayer for the taxable year.''
    (b) Definitions.--Section 72(t) is amended by adding at the end the 
following new paragraphs:
            ``(6) Qualified first-time homebuyer distributions.--For 
        purposes of paragraph (2)(D)(i)--
                    ``(A) In general.--The term `qualified first-time 
                homebuyer distribution' means any payment or 
                distribution received by an individual to the extent 
                such payment or distribution is used by the individual 
                before the close of the 60th day after the day on which 
                such payment or distribution is received to pay 
                qualified acquisition costs with respect to a principal 
                residence of a first-time homebuyer who is such 
                individual, the spouse of such individual, or the child 
                or grandchild of such individual or the individual's 
                spouse.
                    ``(B) Qualified acquisition costs.--For purposes of 
                this paragraph, the term `qualified acquisition costs' 
                means the costs of acquiring, constructing, or 
                reconstructing a residence. Such term includes any 
                usual or reasonable settlement, financing, or other 
                closing costs.
                    ``(C) First-time homebuyer; other definitions.--For 
                purposes of this paragraph--
                            ``(i) First-time homebuyer.--The term 
                        `first-time homebuyer' means any individual 
                        if--
                                    ``(I) such individual (and if 
                                married, such individual's spouse) had 
                                no present ownership interest in a 
                                principal residence during the 3-year 
                                period ending on the date of 
                                acquisition of the principal residence 
                                to which this paragraph applies, and
                                    ``(II) subsection (a)(6), (h), or 
                                (k) of section 1034 did not suspend the 
                                running of any period of time specified 
                                in section 1034 with respect to such 
                                individual on the day before the date 
                                the distribution is applied pursuant to 
                                subparagraph (A)(ii).
                            ``(ii) Principal residence.--The term 
                        `principal residence' has the same meaning as 
                        when used in section 1034.
                            ``(iii) Date of acquisition.--The term 
                        `date of acquisition' means the date--
                                    ``(I) on which a binding contract 
                                to acquire the principal residence to 
                                which subparagraph (A) applies is 
                                entered into, or
                                    ``(II) on which construction or 
                                reconstruction of such a principal 
                                residence is commenced.
                    ``(D) Special rule where delay in acquisition.--If 
                any distribution from any individual retirement plan 
                fails to meet the requirements of subparagraph (A) 
                solely by reason of a delay or cancellation of the 
                purchase or construction of the residence, the amount 
                of the distribution may be contributed to an individual 
                retirement plan as provided in section 408(d)(3)(A)(i) 
                (determined by substituting `120 days' for `60 days' in 
                such section), except that--
                            ``(i) section 408(d)(3)(B) shall not be 
                        applied to such contribution, and
                            ``(ii) such amount shall not be taken into 
                        account in determining whether section 
                        408(d)(3)(A)(i) applies to any other amount.
            ``(7) Qualified higher education expenses.--For purposes of 
        paragraph (2)(D)(ii)--
                    ``(A) In general.--The term `qualified higher 
                education expenses' means tuition, fees, books, 
                supplies, and equipment required for the enrollment or 
                attendance of--
                            ``(i) the taxpayer,
                            ``(ii) the taxpayer's spouse, or
                            ``(iii) the child (as defined in section 
                        151(c)(3)) or grandchild of the taxpayer or the 
                        taxpayer's spouse,
                at an eligible educational institution (as defined in 
                section 135(c)(3)).
                    ``(B) Coordination with savings bond provisions.--
                The amount of qualified higher education expenses for 
                any taxable year shall be reduced by any amount 
                excludable from gross income under section 135.
            ``(8) Qualified long-term care expenses.--For purposes of 
        paragraph (2)(D)(ii)--
                    ``(A) In general.--The term `qualified long-term 
                care expenses' means amounts paid or incurred for 
                qualified long-term care services, including amounts 
                for insurance covering such services.
                    ``(B) Qualified long-term care services.--For 
                purposes of subparagraph (A)--
                            ``(i) In general.--The term `qualified 
                        long-term care services' means necessary 
                        diagnostic, preventive, therapeutic, 
                        rehabilitative, and maintenance (including 
                        personal care) services--
                                    ``(I) which are required by an 
                                individual during any period during 
                                which such individual is a functionally 
                                impaired individual,
                                    ``(II) which have as their primary 
                                purpose the provision of needed 
                                assistance with 1 or more activities of 
                                daily living which a functionally 
                                impaired individual is certified as 
                                being unable to perform under clause 
                                (ii)(I), and
                                    ``(III) which are provided pursuant 
                                to a continuing plan of care prescribed 
                                by a licensed health care practitioner 
                                (other than a relative of such 
                                individual).
                            ``(ii) Functionally impaired individual.--
                                    ``(I) In general.--The term 
                                `functionally impaired individual' 
                                means any individual who is certified 
                                by a licensed health care practitioner 
                                (other than a relative of such 
                                individual) as being unable to perform, 
                                without substantial assistance from 
                                another individual (including 
                                assistance involving verbal reminding, 
                                physical cueing, or substantial 
                                supervision), at least 3 activities of 
                                daily living described in clause (iii).
                                    ``(II) Special rule for home health 
                                care services.--In the case of services 
                                which are provided during any period 
                                during which an individual is residing 
                                within the individual's home (whether 
                                or not the services are provided within 
                                the home), subclause (I) shall be 
                                applied by substituting `2' for `3'. 
                                For purposes of this subclause, a 
                                nursing home or similar facility shall 
                                not be treated as a home.
                            ``(iii) Activities of daily living.--Each 
                        of the following is an activity of daily 
                        living:
                                    ``(I) Eating.
                                    ``(II) Transferring.
                                    ``(III) Toileting.
                                    ``(IV) Dressing.
                                    ``(V) Bathing.
                    ``(C) Licensed health care practitioner.--For 
                purposes of subparagraph (B)--
                            ``(i) In general.--The term `licensed 
                        health care practitioner' means--
                                    ``(I) a physician or registered 
                                professional nurse,
                                    ``(II) a qualified community care 
                                case manager (as defined in clause 
                                (ii)), or
                                    ``(III) any other individual who 
                                meets such requirements as may be 
                                prescribed by the Secretary after 
                                consultation with the Secretary of 
                                Health and Human Services.
                            ``(ii) Qualified community care case 
                        manager.--The term `qualified community care 
                        case manager' means an individual or entity 
                        which--
                                    ``(I) has experience or has been 
                                trained in providing case management 
                                services and in preparing individual 
                                care plans;
                                    ``(II) has experience in assessing 
                                individuals to determine their 
                                functional and cognitive impairment;
                                    ``(III) is not a relative of the 
                                individual receiving case management 
                                services; and
                                    ``(IV) meets such requirements as 
                                may be prescribed by the Secretary 
                                after consultation with the Secretary 
                                of Health and Human Services.
                    ``(D) Relative.--For purposes of this paragraph, 
                the term `relative' means an individual bearing a 
                relationship to another individual which is described 
                in paragraphs (1) through (8) of section 152(a).''
    (c) Penalty-Free Distributions for Certain Unemployed 
Individuals.--Paragraph (2) of section 72(t) is amended by adding at 
the end the following new subparagraph:
                    ``(E) Distributions to unemployed individuals.--A 
                distribution from an individual retirement plan to an 
                individual after separation from employment, if--
                            ``(i) such individual has received 
                        unemployment compensation for 12 consecutive 
                        weeks under any Federal or State unemployment 
                        compensation law by reason of such separation, 
                        and
                            ``(ii) such distributions are made during 
                        any taxable year during which such unemployment 
                        compensation is paid or the succeeding taxable 
                        year.''
    (d) Conforming Amendments.--
            (1) Section 401(k)(2)(B)(i) is amended by striking ``or'' 
        at the end of subclause (III), by striking ``and'' at the end 
        of subclause (IV) and inserting ``or'', and by inserting after 
        subclause (IV) the following new subclause:
                                    ``(V) the date on which qualified 
                                first-time homebuyer distributions (as 
                                defined in section 72(t)(6)), or 
                                distributions for qualified higher 
                                education expenses (as defined in 
                                section 72(t)(7)), or for qualified 
                                long-term care expenses (as defined in 
                                section 72(t)(18)), are made, and''.
            (2) Section 403(b)(11) is amended by striking ``or'' at the 
        end of subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``, or'', and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) for qualified first-time homebuyer 
                distributions (as defined in section 72(t)(6)) or for 
                the payment of qualified higher education expenses (as 
                defined in section 72(t)(7)) or qualified long-term 
                care expenses (as defined in section 72(t)(8)).''
    (e) Effective Date.--The amendments made by this section shall 
apply to payments and distributions after the date of the enactment of 
this Act.

SOLUTION:
Individual Retirement Account Equity and Enhancement Act of 1994 - Amends the Internal Revenue Code to allow certain spouses a deduction for contributions to an individual retirement account. 
Allows distribution from certain retirement plans without penalty to purchase first homes, pay higher education expenses and qualified long-term care expenses, and assist certain unemployed individuals.