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. PERMANENT EXTENSION OF ESTATE TAX AS IN EFFECT IN 2009.

    (a) Exclusion Equivalent of Unified Credit Equal to $3,500,000.--
Subsection (c) of section 2010 of the Internal Revenue Code of 1986 
(relating to unified credit against estate tax) is amended to read as 
follows:
    ``(c) Applicable Credit Amount.--
            ``(1) In general.--For purposes of this section, the 
        applicable credit amount is the amount of the tentative tax 
        which would be determined under section 2001(c) if the amount 
        with respect to which such tentative tax is to be computed were 
        equal to the applicable exclusion amount.
            ``(2) Applicable exclusion amount.--
                    ``(A) In general.--For purposes of this subsection, 
                the applicable exclusion amount is $3,500,000.
                    ``(B) Inflation adjustment.--In the case of any 
                decedent dying in a calendar year after 2010, the 
                dollar amount in subparagraph (A) shall be increased by 
                an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        2009' for `calendar year 1992' in subparagraph 
                        (B) thereof.
                If any amount as adjusted under the preceding sentence 
                is not a multiple of $10,000, such amount shall be 
                rounded to the nearest multiple of $10,000.''.
    (b) Maximum Estate Tax Rate Equal to 45 Percent.--
            (1) In general.--Subsection (c) of section 2001 of the 
        Internal Revenue Code of 1986 (relating to imposition and rate 
        of tax) is amended--
                    (A) by striking ``but not over $2,000,000'' in the 
                table contained in paragraph (1),
                    (B) by striking the last 2 items in such table,
                    (C) by striking ``(1) in general.--'', and
                    (D) by striking paragraph (2).
            (2) Conforming amendment.--Paragraphs (1) and (2) of 
        section 2102(b) of such Code are amended to read as follows:
            ``(1) In general.--A credit in an amount that would be 
        determined under section 2010 as the applicable credit amount 
        if the applicable exclusion amount were $60,000 shall be 
        allowed against the tax imposed by section 2101.
            ``(2) Residents of possessions of the united states.--In 
        the case of a decedent who is considered to be a `nonresident 
        not a citizen of the United States' under section 2209, the 
        credit allowed under this subsection shall not be less than the 
        proportion of the amount that would be determined under section 
        2010 as the applicable credit amount if the applicable 
        exclusion amount were $175,000 which the value of that part of 
        the decedent's gross estate which at the time of the decedent's 
        death is situated in the United States bears to the value of 
        the decedent's entire gross estate, wherever situated.''.
    (c) Modifications of Estate and Gift Taxes To Reflect Differences 
in Unified Credit Resulting From Different Tax Rates.--
            (1) Estate tax.--
                    (A) In general.--Section 2001(b)(2) of the Internal 
                Revenue Code of 1986 (relating to computation of tax) 
                is amended by striking ``if the provisions of 
                subsection (c) (as in effect at the decedent's death)'' 
                and inserting ``if the modifications described in 
                subsection (g)''.
                    (B) Modifications.--Section 2001 of such Code is 
                amended by adding at the end the following new 
                subsection:
    ``(g) Modifications to Gift Tax Payable To Reflect Different Tax 
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or 
more gifts, the rates of tax under subsection (c) in effect at the 
decedent's death shall, in lieu of the rates of tax in effect at the 
time of such gifts, be used both to compute--
            ``(1) the tax imposed by chapter 12 with respect to such 
        gifts, and
            ``(2) the credit allowed against such tax under section 
        2505, including in computing--
                    ``(A) the applicable credit amount under section 
                2505(a)(1), and
                    ``(B) the sum of the amounts allowed as a credit 
                for all preceding periods under section 2505(a)(2).
        For purposes of paragraph (2)(A), the applicable credit amount 
        for any calendar year before 1998 is the amount which would be 
        determined under section 2010(c) if the applicable exclusion 
        amount were the dollar amount under section 6018(a)(1) for such 
        year.''.
            (2) Gift tax.--Section 2505(a) of such Code (relating to 
        unified credit against gift tax) is amended by adding at the 
        end the following new flush sentence:
``For purposes of applying paragraph (2) for any calendar year, the 
rates of tax in effect under section 2502(a)(2) for such calendar year 
shall, in lieu of the rates of tax in effect for preceding calendar 
periods, be used in determining the amounts allowable as a credit under 
this section for all preceding calendar periods.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, generation-skipping transfers, and 
gifts made, after December 31, 2009.
    (e) Additional Modifications to Estate Tax.--
            (1) In general.--Subtitles A and E of title V of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001, and 
        the amendments made by such subtitles, are hereby repealed; and 
        the Internal Revenue Code of 1986 shall be applied as if such 
        subtitles, and amendments, had never been enacted.
            (2) Sunset not to apply.--
                    (A) Subsection (a) of section 901 of the Economic 
                Growth and Tax Relief Reconciliation Act of 2001 is 
                amended by striking ``this Act'' and all that follows 
                and inserting ``this Act (other than title V) shall not 
                apply to taxable, plan, or limitation years beginning 
                after December 31, 2010.''.
                    (B) Subsection (b) of such section 901 is amended 
                by striking ``, estates, gifts, and transfers''.
            (3) Repeal of deadwood.--
                    (A) Sections 2011, 2057, and 2604 of the Internal 
                Revenue Code of 1986 are hereby repealed.
                    (B) The table of sections for part II of subchapter 
                A of chapter 11 of such Code is amended by striking the 
                item relating to section 2011.
                    (C) The table of sections for part IV of subchapter 
                A of chapter 11 of such Code is amended by striking the 
                item relating to section 2057.
                    (D) The table of sections for subchapter A of 
                chapter 13 of such Code is amended by striking the item 
                relating to section 2604.
    (f) Sense of the Senate Regarding Revenue Neutrality.--It is the 
sense of the Senate that any reduction in Federal revenues resulting 
from the provisions of, and amendments made by, this section should be 
fully offset.
Amends the Internal Revenue Code to: (1) restore the unified credit against the estate and gift tax after 2009; (2) establish the amount of such credit at $3.5 million adjusted for inflation in calendar years after 2010; and (3) reduce the maximum estate and gift tax rate to 45%.

Expresses the sense of the Senate that any reduction in federal revenues resulting from this Act should be fully offset.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grandparents Raising Grandchildren 
Assistance Act of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) many grandparents throughout the United States are the 
        primary caregivers to their grandchildren and such grandparents 
        are essentially starting over as parents;
            (2) grandparents are acting as parents for a second time 
        primarily because of problems relating to the natural parents 
        of their grandchildren such as drug and alcohol addiction, 
        abuse, divorce, AIDS and other health problems, and teenage 
        pregnancy;
            (3) grandparents and the grandchildren for whom they 
        provide care often suffer legal, financial, emotional, and 
        bureaucratic hardships; and
            (4) it is desirable to develop national policies that 
        assist grandparents who are serving as the primary caregivers 
        to their grandchildren.

SEC. 3. GRANDCHILD SOCIAL SECURITY BENEFITS BASED ONLY ON DEPENDENCY.

    (a) In General.--Subsection (e) of section 216 of the Social 
Security Act (42 U.S.C. 416) is amended--
            (1) by striking ``, but only if'' in the first sentence and 
        all that follows through ``such individual died''; and
            (2) by striking the last sentence.
    (b) Additional Requirements if Parents Are Alive.--Section 
202(d)(9) of the Social Security Act (42 U.S.C. 402(d)(9)) is amended 
by adding at the end the following new subparagraph:
    ``(C) If--
            ``(i) a child is treated as a child of an individual under 
        clause (3) of the first sentence of section 216(e), and
            ``(ii) a natural or adoptive parent of the child is living 
        at the time specified in paragraph (1)(C) of this subsection,
such child shall not be treated as dependent on such individual as of 
such time unless the period described in subparagraphs (A) and (B) is 
two years, and the natural or adoptive parent, if over the age of 18 
years, is not a dependent for whom a deduction is allowable under 
section 151 of the Internal Revenue Code of 1986 to such individual.''.
    (c) Suspension of Benefits if Child Reunites With Parents.--Section 
202(d)(1) of the Social Security Act (42 U.S.C. 402(d)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (F);
            (2) by striking the period at the end of subparagraph (G) 
        and inserting ``; or''; and
            (3) by inserting after subparagraph (G) the following new 
        subparagraph:
            ``(H) in the case of a child described in paragraph (9)(C), 
        the first month during which such child lives with such child's 
        natural or adoptive parent who has attained the age of 18 and 
        who is not a dependent as described in such paragraph.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to benefits payable for months after the date of the enactment of 
this Act, but only on the basis of applications filed after such date.

SEC. 4. DEVELOPMENT OF OPTIONAL MODEL PROCEDURE FOR NOTIFYING RELATIVES 
              PRIOR TO PLACEMENT OF A CHILD IN FOSTER CARE.

    (a) In General.--Part E of title IV of the Social Security Act (42 
U.S.C. 670 et seq.) is amended by inserting after section 477 the 
following new section:

   ``development of model procedure for notifying relatives prior to 
                  placement of a child in foster care

    ``Sec. 478. Not later than 180 days after the date of the enactment 
of this section, the Secretary shall develop a model procedure to be 
used by any State with a plan approved under this part which ensures 
that reasonable efforts will be made prior to the placement of a child 
in foster care to give notice to a relative (including a maternal or 
fraternal grandparent, adult sibling, aunt, or uncle) who might be 
available to care for the child.''.
    (b) State Option to Establish Model Procedure.--Subsection (a) of 
section 471 of the Social Security Act (42 U.S.C. 671) is amended--
            (1) by striking ``and'' at the end of paragraph (16);
            (2) by striking the period at the end of paragraph (17) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(18) at the option of the State, provides that the State 
        agency will establish the procedure developed by the Secretary 
        under section 478 or an alternate procedure for notifying 
        relatives prior to the placement of a child in foster care.''.
    (c) Effective Date.--The amendments made by this section shall be 
effective on the date of the enactment of this Act.

SEC. 5. MODEL STANDARDS FOR INSURANCE COVERAGE OF DEPENDENTS.

    (a) Development of Model Standards.--If, within 1-year after the 
date of the enactment of this section, the National Association of 
Insurance Commissioners has not developed model standards for the 
coverage of dependents under health insurance policies, the Secretary 
of Health and Human Services (hereafter in this section referred to as 
the ``Secretary''), shall develop such standards not later than 180 
days after the end of such 1-year period.
    (b) Distribution of Model Standards.--If the Secretary develops 
model standards under subsection (a), the Secretary shall distribute 
such standards to the commissioner of insurance, or any similar 
official, of each State.

SEC. 6. CENSUS DATA ON GRANDPARENTS AS PRIMARY CAREGIVERS FOR THEIR 
              GRANDCHILDREN.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this section, the Secretary of Commerce (hereafter in this 
section referred to as the ``Secretary''), in carrying out the 
provisions of section 141 of title 13, United States Code, shall expand 
the data collection efforts of the Bureau of the Census (hereafter in 
this section referred to as the ``Bureau'') to enable the Bureau to 
collect statistically significant data, in connection with its 
decennial census and its mid-decade census, concerning the growing 
trend of grandparents who are the primary caregivers for their 
grandchildren.
    (b) Expanded Census Question.--In carrying out the provisions of 
subsection (a), the Secretary shall expand the Bureau's census question 
that details households which include both grandparents and their 
grandchildren. The expanded question shall be formulated to distinguish 
between the following households:
            (1) a household in which a grandparent temporarily provides 
        a home for a grandchild for a period of weeks or months during 
        periods of parental distress; and
            (2) a household in which a grandparent provides a home for 
        a grandchild and serves as the primary caregiver for the 
        grandchild.

SEC. 7. GRANTS FOR THE ESTABLISHMENT AND OPERATION OF A NATIONAL 
              RESOURCE CENTER FOR GRANDPARENTS.

    (a) In General.--Section 202 of the Older Americans Act of 1965 (42 
U.S.C. 3012) is amended by adding at the end the following:
    ``(f)(1) The Commissioner shall make grants to, or enter into 
contracts with, one eligible entity to establish and operate the 
National Resource Center for Grandparents (referred to in this 
subsection as the `Center') to serve as a central source of information 
and assistance to older individuals who--
            ``(A) raise their grandchildren;
            ``(B) encounter problems obtaining access to their 
        grandchildren for purposes of visitation; or
            ``(C) need financial, legal, emotional, or informational 
        assistance regarding their relationship with their 
        grandchildren.
    ``(2) The Center shall--
            ``(A) be staffed by employees and volunteers, including 
        such older individuals;
            ``(B) provide a toll-free telephone number to increase 
        access to the information and assistance available from the 
        Center;
            ``(C) collect and make available to such older individuals 
        information regarding programs, projects, and activities of 
        public and private entities (including governmental entities) 
        relating to the matters described in subparagraphs (A), (B), 
        and (C) of paragraph (1), including information on State law 
        regarding grandparent visitation and Federal assistance 
        available to such older individuals; and
            ``(D) refer individual grandparents to public and private 
        entities that provide information or assistance regarding the 
        rearing of grandchildren, including information regarding the 
        prevention of drug abuse and the promotion of good health and 
        nutrition.
    ``(3) For purposes of this subsection, the term `eligible entity' 
means a nonprofit private organization with a demonstrated record of 
experience in representing the concerns of older individuals with 
respect to their relationship to their grandchildren.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the first day of the first fiscal year beginning after 
the date of the enactment of this Act.
Grandparents Raising Grandchildren Assistance Act of 1993 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to qualify grandchildren for social security benefits based only on their dependency on social security recipients. Sets special rules if one of a grandchild's natural or adoptive parents is living.  Provides for suspension of such benefits in the event the grandchild reunites with a natural or adoptive parent. 
Amends part E (Foster Care and Adoption Assistance) of SSA title IV to direct the Secretary of Health and Human Services to develop a model procedure for States to use in notifying relatives before the placement of a child in foster care. 
Directs the Secretary, if the National Association of Insurance Commissioners (NAIC) has not done so by a specified deadline, to develop model standards for the coverage of dependents under health insurance policies. 
Requires the Secretary of Commerce to expand the data collection efforts of the Bureau of the Census to enable it to collect statistically significant data on the growing trend of grandparents who are the primary caregivers for their grandchildren. 
Amends the Older Americans Act of 1965 to direct the Commissioner on Aging to make grants to or enter contracts with one eligible entity to establish and operate the National Resource Center for Grandparents to serve as a central source of information and assistance to older individuals who:  (1) raise their grandchildren; (2) encounter problems obtaining visitation access to their grandchildren; or (3) need financial, legal, emotional, or informational assistance regarding their relationship with their grandchildren.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``COBRA Enhancement and Healthcare 
Relief Act of 2006''.

SEC. 2. EXTENSION OF COBRA CONTINUATION COVERAGE.

    (a) Under ERISA.--Section 602(2)(A) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended--
            (1) by amending clause (i) to read as follows:
                            ``(i) General rule.--In the case of a 
                        qualifying event not described in section 
                        603(6), the date that is 36 months after the 
                        date of the qualifying event.'';
            (2) by striking clauses (ii), (iv), and (v) and by striking 
        the sentence beginning ``In the case of a qualified 
        beneficiary''; and
            (3) by redesignating clause (iii) as clause (ii).
    (b) Under PHSA.--Section 2202(2)(A) of the Public Health Service 
Act (42 U.S.C. 300bb-2(2)(A)) is amended to read as follows:
                    ``(A) Maximum required period.--The date that is 36 
                months after the date of the qualifying event.''.
    (c) Under IRC.--Section 4980B(f)(2)(B)(i) of the Internal Revenue 
Code of 1986 is amended--
            (1) by amending subclause (I) to read as follows:
                                    ``(I) General rule.--In the case of 
                                a qualifying event not described in 
                                paragraph (3)(F), the date that is 36 
                                months after the date of the qualifying 
                                event.'';
            (2) by striking subclauses (II), (IV), and (V) and by 
        striking the sentence beginning ``In the case of a qualified 
        beneficiary''; and
            (3) by redesignating subclause (III) as subclause (II).
    (d) Under FEHBP.--Section 8905a(e) of title 5, United States Code, 
is amended--
            (1) in paragraph (1)(A), by striking ``18 months'' and 
        inserting ``36 months'';
            (2) in paragraph (1)(C), by striking ``24 months'' and 
        inserting ``36 months''; and
            (3) in paragraph (2)(C), by striking ``18-month'' and 
        inserting ``36-month''.
    (e) Effective Date.--The amendments made by this section shall 
apply to qualifying events occurring on or after the date that is 18 
months before the date of the enactment of this Act.

SEC. 3. TAX CREDIT FOR COST OF COBRA CONTINUATION COVERAGE.

    (a) In General.--Subpart C of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to refundable credits) is 
amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. COBRA CONTINUATION COVERAGE.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by subtitle A an amount 
equal to the amount paid by the taxpayer for coverage of the taxpayer 
and qualifying family members under COBRA continuation coverage for 
months beginning in the taxable year.
    ``(b) Limitations.--
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) for the taxable year shall not exceed the sum of 
        the monthly limitations for months during such taxable year.
            ``(2) Monthly limitation.--The monthly limitation for any 
        month is the product of the credit percentage for such month 
        multiplied by the amounts paid by the taxpayer for such month 
        which may be taken into account under subsection (a).
            ``(3) Credit percentage.--The credit percentage for any 
        month in any period of COBRA continuation coverage is--
                    ``(A) 100 percent, in the case of the first 12 
                months of such period,
                    ``(B) 50 percent, in the case of the first 12 
                months after the months to which subparagraph (A) 
                applies, and
                    ``(C) zero, in the case of any month thereafter.
    ``(c) Qualifying Family Member.--For purposes of this section, the 
term `qualifying family member' means the taxpayer's spouse and any 
dependent of the taxpayer.
    ``(d) COBRA Continuation Coverage.--For purposes of this section, 
the term `COBRA continuation coverage' means coverage under a COBRA 
continuation provision (as defined in section 9832(d)(1)).
    ``(e) Other Specified Coverage.--Amounts paid for COBRA 
continuation coverage of any individual for any month shall not be 
taken into account under subsection (a) if such individual has other 
specified coverage for such month (within the meaning of section 
35(f)).
    ``(f) Special Rules.--
            ``(1) Coordination with advance payments of credit.--With 
        respect to any taxable year, the amount which would (but for 
        this subsection) be allowed as a credit to the taxpayer under 
        subsection (a) shall be reduced (but not below zero) by the 
        aggregate amount paid on behalf of such taxpayer under section 
        7529 for months beginning in such taxable year.
            ``(2) Coordination with other deductions.--Amounts taken 
        into account under subsection (a) shall not be taken into 
        account in determining any deduction allowed under section 
        162(l) or 213.
            ``(3) Coordination with other health insurance costs 
        credit.--Amounts taken into account under subsection (a) with 
        respect to coverage for any month shall not be taken into 
        account in determining the credit allowed under section 35. Any 
        taxpayer who would (but for the preceding sentence) be allowed 
        a credit under section 35 may elect not to have this section 
        apply with respect to amounts paid for coverage for any month 
        during the taxable year.
            ``(4) Medical and health savings accounts.--Amounts 
        distributed from an Archer MSA (as defined in section 220(d)) 
        or from a health savings account (as defined in section 223(d)) 
        shall not be taken into account under subsection (a).
            ``(5) Denial of credit to dependents.--No credit shall be 
        allowed under this section to any individual with respect to 
        whom a deduction under section 151 is allowable to another 
        taxpayer for a taxable year beginning in the calendar year in 
        which such individual's taxable year begins.
            ``(6) Separate returns.--The spouse of the taxpayer shall 
        not be treated as a qualifying family member for purposes of 
        this section if the taxpayer files a separate return for the 
        taxable year.
            ``(7) Insurance which covers other individuals .--For 
        purposes of this section, rules similar to the rules of section 
        213(d)(6) shall apply with respect to any contract for COBRA 
        continuation coverage under which amounts are payable for 
        coverage of an individual other than the taxpayer and 
        qualifying family members.
            ``(8) Treatment of payments.--For purposes of this 
        section--
                    ``(A) Payments by secretary.--Payments made by the 
                Secretary on behalf of any individual under section 
                7529 (relating to advance payment of credit for cost of 
                COBRA continuation coverage) shall be treated as having 
                been made by the taxpayer on the first day of the month 
                for which such payment was made.
                    ``(B) Payments by taxpayer.--Payments made by the 
                taxpayer for coverage months shall be treated as having 
                been made by the taxpayer on the first day of the month 
                for which such payment was made.
            ``(9) Regulations.--The Secretary may prescribe such 
        regulations and other guidance as may be necessary or 
        appropriate to carry out this section, section 6050U, and 
        section 7529.''.
    (b) Advance Payment of Credit as Premium Payment for COBRA 
Continuation Coverage.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following:

``SEC. 7529. ADVANCE PAYMENT OF CREDIT AS PREMIUM PAYMENT FOR COBRA 
              CONTINUATION COVERAGE.

    ``(a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall establish a program for 
making payments to providers of COBRA continuation coverage (as defined 
in section 36(d)) on behalf of taxpayers eligible for the credit under 
section 36.
    ``(b) Limitations.--
            ``(1) Termination after first 12 months of coverage.--The 
        Secretary shall not make any payment under subsection (a) with 
        respect to any individual for COBRA continuation coverage of 
        such individual for any month after the first 12 months of any 
        period of COBRA continuation coverage.
            ``(2) Dollar limitation.--The Secretary may make payments 
        under subsection (a) only to the extent that the such payment 
        does not exceed 100 percent of the amount paid by the taxpayer 
        for coverage of the taxpayer and qualifying family members 
        under COBRA continuation coverage for the months to which such 
        payment relates.''.
    (c) Disclosure of Return Information for Purposes of Carrying Out 
Advance Payment Program.--
            (1) In general.--Subsection (l) of section 6103 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(21) Disclosure of return information for purposes of 
        advance payment of credit as premium payment for cobra 
        continuation coverage.--The Secretary may, on behalf of 
        taxpayers eligible for the credit under section 36, disclose to 
        a provider of COBRA continuation coverage (as defined in 
        section 36(d)), and persons acting on behalf of such provider, 
        return information with respect to any such taxpayer only to 
        the extent necessary (as prescribed by regulations issued by 
        the Secretary) to carry out the program established by section 
        7529 (relating to advance payment of credit as premium payment 
        for COBRA continuation coverage).''.
            (2) Confidentiality of information.--Paragraph (3) of 
        section 6103(a) of such Code is amended by striking ``or (20)'' 
        and inserting ``(20), or (21)''.
            (3) Unauthorized disclosure.--Paragraph (2) of section 
        7213(a) of such Code is amended by striking ``or (20)'' and 
        inserting ``(20), or (21)''.
    (d) Information Reporting.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 of such Code (relating to information concerning 
        transactions with other persons) is amended by inserting after 
        section 6050T the following new section:

``SEC. 6050U. RETURNS RELATING TO CREDIT FOR COBRA CONTINUATION 
              COVERAGE.

    ``(a) Requirement of Reporting.--Every person who is entitled to 
receive payments for any month of any calendar year under section 7529 
(relating to advance payment of credit as premium payment for COBRA 
continuation coverage) with respect to any individual shall, at such 
time as the Secretary may prescribe, make the return described in 
subsection (b) with respect to each such individual.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each individual 
                referred to in subsection (a),
                    ``(B) the number of months for which amounts were 
                entitled to be received with respect to such individual 
                under section 7529 (relating to advance payment of 
                credit as premium payment for COBRA continuation 
                coverage),
                    ``(C) the amount entitled to be received for each 
                such month, and
                    ``(D) such other information as the Secretary may 
                prescribe.
    ``(c) Statements to Be Furnished to Individuals With Respect to 
Whom Information Is Required.--Every person required to make a return 
under subsection (a) shall furnish to each individual whose name is 
required to be set forth in such return a written statement showing--
            ``(1) the name and address of the person required to make 
        such return and the phone number of the information contact for 
        such person, and
            ``(2) the information required to be shown on the return 
        with respect to such individual.
The written statement required under the preceding sentence shall be 
furnished on or before January 31 of the year following the calendar 
year for which the return under subsection (a) is required to be 
made.''.
            (2) Assessable penalties.--
                    (A) Subparagraph (B) of section 6724(d)(1) of such 
                Code (relating to definitions) is amended by 
                redesignating clauses (xiii) through (xviii) as clauses 
                (xiv) through (xix), respectively, and by inserting 
                after clause (xii) the following new clause:
                            ``(xiii) section 6050U (relating to returns 
                        relating to credit for COBRA continuation 
                        coverage),''.
                    (B) Paragraph (2) of section 6724(d) of such Code 
                is amended by striking ``or'' at the end of 
                subparagraph (AA), by striking the period at the end of 
                subparagraph (BB) and inserting ``, or'', and by adding 
                after subparagraph (BB) the following new subparagraph:
                    ``(CC) section 6050U (relating to returns relating 
                to credit for COBRA continuation coverage).''.
    (e) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or section 36'' after 
        ``section 35''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by redesignating the item relating to section 36 as 
        an item relating to section 37 and by inserting after the item 
        relating to section 35 the following new item:

``Sec. 36. COBRA continuation coverage.''.
            (3) The table of sections for subpart B of part III of 
        subchapter A of chapter 61 of such Code is amended by adding at 
        the end the following new item:

``Sec. 6050U. Returns relating to credit for COBRA continuation 
                            coverage.''.
            (4) The table of sections for chapter 77 of such Code is 
        amended by adding at the end the following new item:

``Sec. 7529. Advance payment of credit as premium payment for COBRA 
                            continuation coverage.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to amounts paid for coverage months beginning after the date of 
the enactment of this Act, in taxable years ending after such date.

SEC. 4. REDUCTION IN BENEFIT OF RATE REDUCTION FOR FAMILIES WITH 
              INCOMES OVER $1,000,000.

    (a) General Rule.--Section 1 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(j) Reduction in Benefit of Rate Reduction for Families With 
Incomes Over $1,000,000.--
            ``(1) In general.--If the adjusted gross income of a 
        taxpayer exceeds the threshold amount, the tax imposed by this 
        section (determined without regard to this subsection) shall be 
        increased by an amount equal to the applicable percentage of so 
        much of the adjusted gross income as exceeds the threshold 
        amount.
            ``(2) Threshold amounts.--For purposes of this subsection, 
        the term `threshold amount' means--
                    ``(A) $1,000,000 in the case of a joint return, and
                    ``(B) $500,000 in the case of any other return.
            ``(3) Applicable percentage.--For purposes of this 
        subsection, the term `applicable percentage' means, with 
        respect to any taxable year, such percentage as is estimated by 
        the Secretary to result in an increase in the revenues to the 
        Treasury for such taxable year which is equal to the decrease 
        (if any) in the revenues to the Treasury that the Secretary 
        estimates results from the application of sections 36 and 7529 
        for such taxable year.
            ``(4) Tax not to apply to estates and trusts.--This 
        subsection shall not apply to an estate or trust.
            ``(5) Special rule.--For purposes of section 55, the amount 
        of the regular tax shall be determined without regard to this 
        subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
    (c) Application of EGTRRA Sunset.--The amendment made by this 
section shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 to the same extent and in the same 
manner as section 101 of such Act.
    (d) Section 15 Not to Apply.--The amendment made by subsection (a) 
shall not be treated as a change in a rate of tax for purposes of 
section 15 of the Internal Revenue Code of 1986.

COBRA Enhancement and Health Care Relief Act of 2006 - Amends the Employee Retirement Income Security Act of 1974 (ERISA), the Public Health Service Act, the Internal Revenue Code, and related federal law provisions to extend from 18 to 36 months the period during which employees and other individuals whose group health care coverage has terminated can continue such coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (known as COBRA continuation coverage).

Amends the Internal Revenue Code to: (1) allow individual taxpayers a tax credit for the cost of COBRA continuation coverage; (2) provide for advance payments of such credit to cover current COBRA continuation coverage premiums; and (3) increase tax rates for individuals with adjusted gross incomes over $500,000 ($1 million for married taxpayers filing joint tax returns).