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.

    This Act may be cited as the ``Government Customer Service 
Improvement Act of 2013''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency''--
                    (A) means an Executive agency (as defined under 
                section 105 of title 5, United States Code) that 
                provides significant services directly to the public or 
                other entity; and
                    (B) does not include an Executive agency if the 
                President determines that this Act should not apply to 
                the Executive agency for national security reasons.
            (2) Customer.--The term ``customer'', with respect to an 
        agency, means any individual or entity that is directly served 
        by an agency.

SEC. 3. DEVELOPMENT OF CUSTOMER SERVICE STANDARDS.

    (a) Government-Wide Standards.--
            (1) In general.--The Director of the Office of Management 
        and Budget shall develop Government-wide standards for customer 
        service delivery, which shall be included in the Federal 
        Government Performance Plan required under section 1115 of 
        title 31, United States Code.
            (2) Requirements.--The standards developed under paragraph 
        (1) shall include--
                    (A) Government-wide goals for continuous service 
                improvements and efforts to modernize service delivery; 
                and
                    (B) where appropriate, Government-wide target 
                response times for telephone calls, electronic mail, 
                mail, benefit processing, and payments.
    (b) Agency Standards.--
            (1) In general.--The Chief Performance Officer for each 
        agency shall establish customer service standards in accordance 
        with the Government-wide standards established under subsection 
        (a), which shall be included in the Agency Performance Plans 
        required under section 1115 of title 31, United States Code.
            (2) Requirements.--Agency standards established under 
        paragraph (1) shall include, if appropriate--
                    (A) target call wait times during peak and non-peak 
                hours;
                    (B) target response times for correspondence, both 
                by mail and electronic mail;
                    (C) procedures for ensuring all applicable metrics 
                are incorporated into service agreements with 
                nongovernmental individuals and entities;
                    (D) target response times for processing benefits 
                and making payments; and
                    (E) recommendations for effective publication of 
                customer service contact information, including a 
                mailing address, telephone number, and email address.
    (c) Customer Service Input.--The Performance Improvement Officer 
for each agency shall collect information from customers of the agency 
regarding the quality of customer service provided by the agency. Each 
agency shall include the information collected under this subsection in 
the performance report made available by the agency under section 1116 
of title 31, United States Code.
    (d) Annual Performance Update.--The Director of the Office of 
Management and Budget shall include achievements by agencies in meeting 
the customer service performance measures and standards developed under 
subsection (a) in each update on agency performance required under 
section 1116 of title 31, United States Code.

SEC. 4. SERVICE IMPROVEMENT UNIT PILOT PROGRAM.

    (a) Established.--The Director of the Office of Management and 
Budget shall establish a pilot program, to be known as the Service 
Improvement Unit Pilot Program (in this section referred to as the 
``pilot program''), to provide assistance to agencies that do not meet 
the Government-wide standards established under section 3.
    (b) Personnel.--The heads of agencies with expertise in change 
management, process improvement, and information technology innovation 
shall detail employees to the Office of Management and Budget to work 
on the pilot program, based on the expertise and skills required to 
address service improvement goals.
    (c) Responsibilities.--Under the pilot program, the Office of 
Management and Budget shall work with agencies that are not meeting the 
customer service standards and performance measures established under 
section 3 to improve and modernize service delivery to develop 
solutions, including--
            (1) evaluating the efforts of the agency to improve service 
        delivery;
            (2) developing a plan to improve within existing resources 
        and by drawing on expertise and assistance from other agencies 
        (including the Office of Management and Budget) where 
        necessary;
            (3) monitoring implementation by the agency of the plan 
        developed under paragraph (2) until the customer service 
        standards and performance measures are met; and
            (4) submitting to the Director of the Office of Management 
        and Budget monthly reports on the progress being made to 
        improve service at the agency until the customer service 
        standards are met.
    (d) Report.--Not later than 2 years after the date of enactment of 
this Act, the Director of the Office of Management and Budget shall 
submit to Congress a report on the accomplishments and outcomes of the 
pilot program and any recommendations relating to achieving the 
customer service standards and performance measures established under 
section 3.
    (e) Support.--The Administrator of General Services shall provide 
administrative and other support in order to implement the pilot 
program under this section. The heads of agencies shall, as appropriate 
and to the extent permitted by law, provide at the request of the 
Director of the Office of Management and Budget up to 2 personnel 
authorizations who have expertise in change management, process 
improvement, and information technology innovation to support the pilot 
program.
    (f) Termination.--The authority to carry out the pilot program 
shall terminate 2 years after the date of enactment of this Act.

SEC. 5. RETIREMENT REPORTING.

    (a) Definition.--In this section, the term ``agency'' has the 
meaning given that term in section 551 of title 5, United States Code.
    (b) Reports.--
            (1) In general.--Except as provided in paragraph (2) and 
        not later than 30 days after the date of enactment of this Act, 
        and every month thereafter, the Director of the Office of 
        Personnel Management shall submit to Congress and the 
        Comptroller General of the United States, and issue publicly 
        (including on the Web site of the Office of Personnel 
        Management), a report that--
                    (A) for each agency, evaluates the timeliness, 
                completeness, and accuracy of information submitted by 
                the agency relating to employees of the agency who are 
                retiring; and
                    (B) indicates--
                            (i) the total number of applications for 
                        retirement benefits, lump sum death benefits, 
                        court ordered benefits, phased retirement, and 
                        disability retirement that are pending action 
                        by the Office of Personnel Management; and
                            (ii) the number of months each such 
                        application has been pending.
            (2) Suspension of reporting requirement.--Paragraph (1) 
        shall not apply to the Director of the Office of Personnel 
        Management for any month immediately following a 3-year period 
        in which there are no applications described in paragraph 
        (1)(B) that have been pending for more than 60 days.
    (c) Modernization Timeline.--The Director of the Office of 
Personnel Management shall establish--
            (1) a timetable for the completion of each component of the 
        retirement systems modernization project of the Office of 
        Personnel Management, including all data elements required for 
        accurate completion of adjudication; and
            (2) the date by which all Federal payroll processing 
        entities will electronically transmit all personnel data to the 
        Office of Personnel Management.
    (d) Budget Request.--The Office of Personnel Management shall 
include a detailed statement regarding the progress of the Office of 
Personnel Management in completing the retirement systems modernization 
project of the Office of Personnel Management and recommendations to 
Congress regarding the additional resources needed to fully implement 
the retirement systems modernization project of the Office of Personnel 
Management in each budget request of the Office of Personnel Management 
submitted as part of the preparation of the budget of the President 
submitted to Congress under section 1105(a) of title 31, United States 
Code.

SEC. 6. NO INCREASE IN EXPENDITURES.

    It is the sense of Congress that no additional funds should be 
appropriated to carry out this Act.

SOLUTION: Government Customer Service Improvement Act of 2013 - Requires the Director of the Office of Management and Budget (OMB) to develop government-wide standards for customer service delivery, which shall be included in the Federal Government Performance Plan. Requires such standards to include: (1) government-wide goals for continuous service improvements and efforts to modernize service delivery; and (2) government-wide target response times for telephone calls, electronic mail, mail, benefit processing, and payments.  Directs: (1) the Chief Performance Officer for each executive agency to establish customer service standards in accordance with such government-wide standards, which shall be included in Agency Performance Plans; (2) the Performance Improvement Officer for each agency to collect information from customers of the agency regarding the quality of customer service provided; and (3) the Director to include agency achievements in meeting such standards and customer service performance measures in each required update on agency performance. Requires: (1) the Director to establish a two-year Service Improvement Unit Pilot Program to provide assistance to agencies that do not meet such government-wide standards, and (2) the Administrator of General Services (GSA) to provide administrative and other support to implement such Program. Requires the Director of the Office of Personnel Management (OPM) to: (1) submit to Congress and the Comptroller General (GAO) and issue publicly every month a report on information submitted by each federal agency regarding its employees who are retiring and pending applications for retirement benefits, (2) establish a timetable for completion of OPM's retirement systems modernization project and a deadline by which all federal payroll processing entities will electronically transmit all personnel data to OPM, and (3) include in each annual budget request a statement on OPM's progress in completing such project and resources needed to implement it.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shareholder Empowerment Act of 
2009''.

SEC. 2. MAJORITY VOTING FOR DIRECTORS.

    The Securities Exchange Act of 1934 is amended by adding after 
section 16 the following new section:

``SEC. 16A. ELECTION OF DIRECTORS.

    ``(a) Standards Relating to Election of Directors.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Standards for election of directors.--
                    ``(A) Majority voting.--Each issuer shall, to the 
                extent permitted under State law, provide in its 
                governing documents that--
                            ``(i) directors in uncontested elections 
                        shall be elected by a majority of the votes 
                        cast as to each nominee; and
                            ``(ii) in contested elections where the 
                        number of nominees exceeds the number of 
                        directors to be elected, directors shall be 
                        elected by the vote of a plurality of the 
                        shares represented at any meeting and entitled 
                        to vote on the election of directors.
                    ``(B) Resignation policy.--Each issuer shall also, 
                to the extent permitted under State law, adopt 
                procedures under which any director who is not elected 
                to a new term shall offer to tender his or her 
                resignation to the board of directors. The board of 
                directors, with the advice of a committee of the board 
                if such a committee has been established for that 
                purpose, shall determine what action should be taken as 
                to that resignation and shall publicly disclose its 
                decision and the rationale for that decision within a 
                reasonable period after certification of the election 
                results.
    ``(b) Shareholder Access to the Proxy in Director Elections.--
            ``(1) Rule.--Not later than 270 days after the date of 
        enactment of this section, the Commission shall, by rule, 
        require that in proxy statements and proxies, authorizations or 
        consents prepared by an issuer pursuant to section 14, the 
        issuer shall identify and provide security holders with an 
        opportunity to vote on candidates for the board of directors 
        who have been nominated by holders in the aggregate at least 1 
        percent of the issuer's voting securities for at least 2 years 
        prior to a record date established by the issuer for a meeting 
        of security holders.
            ``(2) Application.--This rule shall specify the information 
        to be provided to an issuer by security holders who nominate 
        candidates for inclusion in an issuer's proxy materials under 
        this section and shall require the issuer to disclose 
        information about such candidates in the issuer's proxy 
        materials to the same extent that information must be disclosed 
        about candidates nominated by the issuer. This rule shall apply 
        only when eligible security holders have nominated fewer than a 
        majority of the number of directors then authorized to serve on 
        the board of directors, and the rule shall specify procedures 
        to be followed if different security holders nominate 
        candidates sufficient to constitute a majority of the board of 
        directors.
            ``(3) Effective date.--The rule shall apply to proxy voting 
        for meetings of security holders held on or after January 1, 
        2010, except to the extent that a meeting was originally 
        scheduled to be held in 2009, but was adjourned to 2010.
    ``(c) Broker Discretionary Voting in Uncontested Director 
Elections.--Not later than 270 days after the date of enactment of this 
section, the Commission shall by, rule, require that a broker shall not 
be allowed to vote securities on an uncontested election to the board 
of directors of an issuer to the extent that the beneficial owner of 
those securities has not provided specific instructions to the broker. 
The rule shall apply to proxy voting for meetings of security holders 
held on or after January 1, 2010, except to the extent that a meeting 
was originally scheduled to be held in 2009, but was adjourned to 2010.
    ``(d) Independent Chairman of the Board of Directors.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Independent chairman of the board of directors.--Each 
        issuer shall provide in its governing documents or a public 
        statement of corporate policy that, to the extent possible and 
        consistent with the issuer's status as a publicly traded 
        company, the chairman of the board of directors shall be an 
        independent director who has not previously served as an 
        executive officer of the issuer. Such rule shall be implemented 
        with due regard for contracts in existence on the date of 
        enactment of this section. For purposes of this subsection, an 
        `independent director' shall be one who during the preceding 5 
        years has not been--
                    ``(A) employed by the issuer in an executive 
                capacity;
                    ``(B) an employee, director or owner greater than 
                20 percent of the beneficial shares of a firm that is a 
                paid adviser or consultant to the issuer;
                    ``(C) employed by a significant customer or 
                supplier of the issuer;
                    ``(D) a party to a personal services contract with 
                the issuer, as well as with the issuer's Chair, chief 
                executive officer, or other senior executive officer;
                    ``(E) an employee, officer or director of a 
                foundation, university or other non-profit organization 
                that receives the greater of $100,000 or 1 percent of 
                total annual donations from the issuer;
                    ``(F) a relative of an executive of the issuer;
                    ``(G) part of an interlocking directorate in which 
                the issuer's chief executive officer or another 
                executive serves on the board of another issuer 
                employing that director; and
                    ``(H) engaged in any other relationship with the 
                issuer or senior executives that the Commission 
                determines would not render that director an 
                independent director.''.

SEC. 3. EXECUTIVE COMPENSATION REQUIREMENTS.

    The Securities Exchange Act of 1934 is further amended by adding 
after the section 16A, as added by section 2, the following new section

``SEC. 16B. EXECUTIVE COMPENSATION REQUIREMENTS.

    ``(a) Shareholder Approval of Executive Compensation.--
            ``(1) Annual shareholder vote on executive compensation.--
        Any proxy or consent or authorization for an annual or other 
        meeting of an issuer shall permit a separate vote by 
        shareholders to approve the compensation of senior executive 
        officers, as disclosed pursuant to the compensation disclosure 
        rules of the Commission (which disclosure shall include the 
        compensation discussion and analysis, the compensation tables, 
        and any related material).
            ``(2) Non-binding nature of vote.--A shareholder vote 
        described in paragraph (1) shall not be binding on the board of 
        directors of an issuer and may not be construed as overruling a 
        decision by such board, nor to create or imply any additional 
        fiduciary duty by such board, nor shall such vote be construed 
        to restrict or limit the ability of security holders to make 
        proposals for inclusion in proxy materials related to executive 
        compensation.
            ``(3) Deadline for rules.--Not later than 1 year after the 
        date of enactment of this section, the Commission shall issue 
        any final rules and regulations required by this section.
            ``(4) Exception.--This provision shall not apply to any 
        issuer who is subject to a similar recoupment requirement under 
        another provision of Federal law.
    ``(b) Independent Compensation Advisers.--
            ``(1) Requirement.--Not later than 1 year after the date of 
        enactment of this section, the Commission shall, by rule, 
        require that if an issuer's board of directors or a committee 
        thereof retains an individual adviser or advisory firm in 
        conjunction with negotiating employment contracts or 
        compensation agreements with the issuer's executives, the 
        individual adviser and his or her firm shall be independent of 
        the issuer, its executives and directors, and shall report 
        solely to the board of directors or the committee thereof 
        responsible for executive compensation. The rule shall further 
        require that issuers shall not agree to indemnify or limit the 
        liability of compensation advisers or advisory firms.
            ``(2) Determination.--In determining the extent to which an 
        adviser or advisory firm is independent of an issuer within the 
        meaning of this section, the Commission shall consider such 
        matters as--
                    ``(A) the extent (as measured by annual fees and 
                other relevant metrics) to which an individual adviser 
                or advisory firm provides services in conjunction with 
                negotiating employment contracts or compensation 
                agreements with the issuer's executives, as compared to 
                other services that the adviser or advisory firm 
                provides to the issuer or executives;
                    ``(B) whether individual advisers are permitted to 
                hold equity and do hold equity in the issuer; and
                    ``(C) whether an advisory firm's incentive 
                compensation plan links the compensation of individual 
                advisers to the advisory firm's provision of other 
                services to the issuer.
    ``(c) Clawbacks of Unearned Performance-Based Pay.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Recoupment of unearned compensation.--An issuer's 
        board of directors or a committee thereof shall develop and 
        disclose a policy for reviewing unearned bonus payments, 
        incentive payments, or equity payments that were awarded to 
        executive officers owing to fraud, financial results that 
        require restatement, or some other cause. The policy should 
        require recovery or cancellation of any unearned payments to 
        the extent that it is feasible and practical to do so.
            ``(3) Exception.--This provision shall not apply to any 
        issuer who is subject to a similar recoupment requirement under 
        another provision of Federal law.
    ``(d) Severance Agreements Tied to Performance.--
            ``(1) Commission rules.--Not later than 270 days after the 
        date of enactment of this section, the Commission shall, by 
        rule, direct the national securities exchanges and national 
        securities associations to prohibit the listing of any security 
        of an issuer that is not in compliance with the requirements of 
        any portion of paragraph (2). Such rules shall provide for 
        appropriate procedures for an issuer to have an opportunity to 
        cure any defects that would be the basis for such a prohibition 
        before the imposition of such prohibition.
            ``(2) Severance agreements tied to performance.--An 
        issuer's board of directors or a committee thereof shall not 
        enter into agreements providing for severance payments to a 
        senior executive officer who is terminated because of poor 
        performance as an executive, as determined by the board of 
        directors. To the extent that an issuer is able to terminate a 
        senior executive officer for cause, poor performance by the 
        executive, as determined by the board of directors, shall be 
        considered as one such cause. The rule shall be implemented 
        with due regard for contracts in existence on the date of 
        enactment of this section.
    ``(e) Improved Disclosure of Compensation Targets.--Not later than 
1 year after the date of enactment of this section, the Commission 
shall, by rule, require additional disclosure of specific performance 
targets that are used by issuers to determine a senior executive 
officer's eligibility for bonuses, equity and incentive compensation. 
The Commission shall consider methods to improve disclosure in 
situations when it is claimed that disclosure would result in 
competitive harm to the issuer, including, requirements that the issuer 
describe its past experience with similar target levels, disclose any 
inconsistencies between compensation targets and targets set in other 
contexts, submit a request for confidential treatment of the 
performance targets under Commission rules, or disclose the data after 
disclosure would no longer be considered competitively harmful.''.

SOLUTION: Shareholder Empowerment Act of 2009 - Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC) to prohibit national securities exchanges and associations from listing the securities of any issuer unless, to the extent permitted by state law, such issuer requires: (1) the election of directors who receive the majority of votes in uncontested elections or a plurality of votes in contested elections; and (2) directors who are not reelected to offer to tender their resignations.

Directs the SEC to: (1) require issuers to identify and provide security holders with an opportunity to vote on director candidates who have been nominated by holders of at least 1% of the issuer's voting securities for at least two years, provided security holders have nominated fewer than a majority of the directors then authorized to serve; (2) prohibit brokers from voting securities on an uncontested election to the board of directors without having received specific instructions from the securities' beneficial owners; and (3) requires listed issuers, to the extent possible, to have an independent chairman of their board of directors who has not served as an executive of the issuer.

Requires any proxy or consent or authorization for an annual or other meeting of a securities issuer to permit a separate shareholder vote on executive compensation, though such vote shall not be binding on its board of directors.

Directs the SEC to direct the national securities exchanges and national securities associations to prohibit: (1) issuers from retaining advisors in negotiating executive employment or compensation agreements that are not independent or are protected from liability by such issuers; (2) the listing of issuers that do not have a (clawback) policy of recovering executive payments that were unearned due to fraud, faulty financial statements, or some other cause; and (3) the listing of issuers that provide severance payments to senior executives who are terminated for poor performance.

Directs the SEC to require additional disclosure of specific performance targets issuers use in determining a senior executive's eligibility for bonuses, equity, and incentive compensation.

PROBLEM: SECTION 1. STRENGTHENING THE MEDICAID THIRD-PARTY LIABILITY 
              REQUIREMENT.

    (a) State and Health Provider Right To Make Inquiries and Third-
Party Responsibilities.--Section 1902 of the Social Security Act (42 
U.S.C. 1396a) is amended--
            (1) in subsection (a)(25)--
                    (A) by striking ``and'' at the end of subparagraph 
                (H);
                    (B) by adding ``and'' at the end of subparagraph 
                (I); and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) that the State shall provide assurances 
                satisfactory to the Secretary that the State has in 
                effect laws requiring the State to make inquiries to 
                third parties, including health insurers, self-insured 
                plans, group health plans (as defined in section 607(1) 
                of the Employee Retirement Income Security Act of 
                1974), service benefit plans, managed care 
                organizations, pharmacy benefit managers, or other 
                parties that are, by statute, contract, or agreement, 
                legally responsible for payment of a claim for a health 
                care item or service, operating in any State;''; and
            (2) by adding at the end the following new subsection:
    ``(dd) Responsibilities of Third Parties.--
            ``(1) In general.--Third parties described in subsection 
        (a)(25)(J) shall--
                    ``(A) provide, with respect to individuals who are 
                eligible for, or are provided, medical assistance under 
                the State plan, upon the request of the State, 
                information to determine during what period the 
                individual (or the individual's spouse or dependents) 
                may be (or may have been) covered by a health insurer 
                and the nature of the coverage that is or was provided 
                by the health insurer (including the name, address, and 
                identifying number of the plan) in a manner prescribed 
                by the Secretary;
                    ``(B) accept the State's right of recovery and the 
                assignment to the State of any right of an individual 
                or other entity to payment from the party for an item 
                or service for which payment has been made under the 
                State plan;
                    ``(C) respond to any inquiry by the State regarding 
                a claim for payment for any health care item or service 
                that is submitted not later than 3 years after the date 
                of the provision of such health care item or service; 
                and
                    ``(D) agree not to deny a claim submitted by the 
                State solely on the basis of the date of submission of 
                the claim, the type or format of the claim form, or a 
                failure to present proper documentation at the point-
                of-sale that is the basis of the claim, if--
                            ``(i) the claim is submitted by the State 
                        within the 3-year period beginning on the date 
                        on which the item or service was furnished; and
                            ``(ii) any action by the State to enforce 
                        its rights with respect to such claim is 
                        commenced within 6 years of the State's 
                        submission of such claim.
            ``(2) Inquiries of third parties.--Entities providing 
        services and items to individuals receiving medical assistance 
        under this title (or to individuals the entity reasonably 
        believes may receive medical assistance under this title) may 
        make inquiries to third parties described in subsection 
        (a)(15)(J) that are, by statute, contract, or agreement, 
        legally responsible for payment of a claim, operating in any 
        State, for the purpose of determining eligibility and coverage 
        for those individuals.''.
    (b) Referrals to the Secretary; Maintaining the Integrity of the 
Medicaid Program.--Section 1909 of such Act (42 U.S.C. 1396h) is 
amended--
            (1) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(5) The law contains a requirement for making a referral 
        to the Secretary for the purposes of subsection (e).''; and
            (2) by adding at the end the following new subsection:
    ``(e) Federal Civil Penalties and Payments to States.--
            ``(1) Federal civil penalties.--
                    ``(A) In general.--Upon referral from a State, if 
                the Secretary finds that a third party, including any 
                third party described in section 1902(a)(25)(J), that 
                is, by statute, contract, or agreement, legally 
                responsible for payment of a claim for a health care 
                item or service, failed to reply to inquiries about an 
                individual sent pursuant to such section, the Secretary 
                shall impose a civil penalty upon that third party of 
                not less than $5,000 and not more than $10,000, plus 3 
                times the amount of the claim for that individual 
                without regard to any other legal responsibility of the 
                third party for payment of a claim for a health care 
                item or service for that individual.
                    ``(B) Failure defined.--For purposes of 
                subparagraph (A), the term `failed' means the failure 
                of a third party described to provide the information 
                required by section 1902(a)(25)(J) about an individual 
                within 10 days of the date the inquiry is first made to 
                the party.
            ``(2) Payments to states.--The Secretary shall pay a State 
        an amount equal to the Federal medical assistance percentage of 
        any amount obligated to the United States under paragraph 
        (1).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2009.

SOLUTION:
Amends title XIX (Medicaid) of the Social Security Act to direct state Medicaid plans to require the state to provide the Secretary of Health and Human Services with satisfactory assurances that it has in effect laws requiring the state to make inquiries to third parties, including health insurers, self-insured plans, group health plans, or other parties operating in any state that are responsible for payment of a claim for a health care item or service.

Requires third parties to: (1) provide, upon state request, information about Medicaid-eligible or -receiving individuals to determine during what period the individual (or the spouse or dependents) may be (or may have been) covered by a health insurer, as well as the nature of such coverage; (2) accept the state's right of recovery and the assignment to the state of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under the state plan; and (3) agree not to deny a claim submitted by the state solely on the basis of its date of submission, the type or format of the claim form, or a failure to present proper documentation at the point-of-sale that is the basis of the claim, if the claim is submitted by the state within three years after the item or service was furnished, and any action by the state to enforce its rights is commenced within six years of its submission of the claim.

Establishes a civil monetary penalty for a third party's failure to reply to inquiries required by this Act.