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

Ex Input:
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Encouraging Work Act of 2005''.

SEC. 2. MODIFICATIONS TO WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK
CREDIT.

(a) Credit Made Permanent.--
(1) Subsection (c) of section 51 of the Internal Revenue
Code of 1986 is amended by striking paragraph (4) (relating to
termination).
(2) Section 51A of such Code is amended by striking
subsection (f).
(b) Eligibility of Ex-Felons Determined Without Regard to Family
Income.--Paragraph (4) of section 51(d) of such Code is amended by
adding ''and'' at the end of subparagraph (A), by striking '', and'' at
the end of subparagraph (B) and inserting a period, and by striking all
that follows subparagraph (B).
(c) Increase in Maximum Age for Eligibility of Food Stamp
Recipients.--Clause (i) of section 51(d)(8)(A) of such Code is amended
by striking ''25'' and inserting ''40''.
(d) Increase in Maximum Age for Designated Community Residents.--
(1) In general.--Paragraph (5) of section 51(d) of such
Code is amended to read as follows:
''(5) Designated community residents.--
''(A) In general.--The term 'designated community
resident' means any individual who is certified by the
designated local agency--
''(i) as having attained age 18 but not age
40 on the hiring date, and
''(ii) as having his principal place of
abode within an empowerment zone, enterprise
community, or renewal community.
''(B) Individual must continue to reside in zone or
community.--In the case of a designated community
resident, the term 'qualified wages' shall not include
wages paid or incurred for services performed while the
individual's principal place of abode is outside an
empowerment zone, enterprise community, or renewal
community.''.
(2) Conforming amendment.--Subparagraph (D) of section
51(d)(1) is amended to read as follows:
''(D) a designated community resident,''.
(e) Clarification of Treatment of Individuals Under Individual Work
Plans.--Subparagraph (B) of section 51(d)(6) of such Code (relating to
vocational rehabilitation referral) is amended by striking ''or'' at
the end of clause (i), by striking the period at the end of clause (ii)
and inserting '', or'', and by adding at the end the following new
clause:
''(iii) an individual work plan developed
and implemented by an employment network
pursuant to subsection (g) of section 1148 of
the Social Security Act with respect to which
the requirements of such subsection are met.''.
(f) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after December 31,
2005.

SEC. 3. CONSOLIDATION OF WORK OPPORTUNITY CREDIT WITH WELFARE-TO-WORK
CREDIT.

(a) In General.--Paragraph (1) of section 51(d) of the Internal
Revenue Code of 1986 is amended by striking ''or'' at the end of
subparagraph (G), by striking the period at the end of subparagraph (H)
and inserting '', or'', and by adding at the end the following new
subparagraph:
''(I) a long-term family assistance recipient.''.
(b) Long-Term Family Assistance Recipient.--Subsection (d) of
section 51 of such Code is amended by redesignating paragraphs (10)
through (12) as paragraphs (11) through (13), respectively, and by
inserting after paragraph (9) the following new paragraph:
''(10) Long-term family assistance recipient.--The term
'long-term family assistance recipient' means any individual
who is certified by the designated local agency--
''(A) as being a member of a family receiving
assistance under a IV-A program (as defined in
paragraph (2)(B)) for at least the 18-month period
ending on the hiring date,
''(B)(i) as being a member of a family receiving
such assistance for 18 months beginning after August 5,
1997, and
''(ii) as having a hiring date which is not more
than 2 years after the end of the earliest such 18-
month period, or
''(C)(i) as being a member of a family which ceased
to be eligible for such assistance by reason of any
limitation imposed by Federal or State law on the
maximum period such assistance is payable to a family,
and
''(ii) as having a hiring date which is not more
than 2 years after the date of such cessation.''.
(c) Increased Credit for Employment of Long-Term Family Assistance
Recipients.--Section 51 of such Code is amended by inserting after
subsection (d) the following new subsection:
''(e) Credit for Second-Year Wages for Employment of Long-Term
Family Assistance Recipients.--
''(1) In general.--With respect to the employment of a
long-term family assistance recipient--
''(A) the amount of the work opportunity credit
determined under this section for the taxable year
shall include 50 percent of the qualified second-year
wages for such year, and
''(B) in lieu of applying subsection (b)(3), the
amount of the qualified first-year wages, and the
amount of qualified second-year wages, which may be
taken into account with respect to such a recipient
shall not exceed $10,000 per year.
''(2) Qualified second-year wages.--For purposes of this
subsection, the term 'qualified second-year wages' means
qualified wages--
''(A) which are paid to a long-term family
assistance recipient, and
''(B) which are attributable to service rendered
during the 1-year period beginning on the day after the
last day of the 1-year period with respect to such
recipient determined under subsection (b)(2).
''(3) Special rules for agricultural and railway labor.--If
such recipient is an employee to whom subparagraph (A) or (B)
of subsection (h)(1) applies, rules similar to the rules of
such subparagraphs shall apply except that--
''(A) such subparagraph (A) shall be applied by
substituting '$10,000' for '$6,000', and
''(B) such subparagraph (B) shall be applied by
substituting '$833.33' for '$500'.''.
(d) Repeal of Separate Welfare-to-Work Credit.--
(1) In general.--Section 51A of such Code is hereby
repealed.
(2) Clerical amendment.--The table of sections for subpart
F of part IV of subchapter A of chapter 1 of such Code is
amended by striking the item relating to section 51A.
(e) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after December 31,
2005.

Ex Output:
Encouraging Work Act of 2005 - Amends the Internal Revenue Code to consolidate and modify provisions of the work opportunity tax credit and the welfare-to-work tax credit and make the consolidated tax credit permanent. Expands eligibility for the consolidated tax credit by: (1) determining eligibility of ex-felons without regard to family income; and (2) raising the age ceiling for food stamp recipients from 25 to 40. Includes a "designated community resident" (in lieu of "high risk youth") and "long-term family assistance recipient" as members of the targeted group eligible for the consolidated tax credit. Provides for an increased tax credit for employment of long-term family assistance recipients.

Repeals the separate welfare-to-work tax credit.

Ex Input:
SECTION 1. CLASS SIZE DEMONSTRATION GRANTS.

Subpart 3 of part D of title V of the Higher Education Act of 1965
(20 U.S.C. 1109 et seq.) is amended to read as follows:

''Subpart 3--Class Size Demonstration Grants

''SEC. 561. PURPOSE.

''It is the purpose of this subpart to provide grants to State
educational agencies to enable such agencies to determine the benefits,
in various school settings, of reducing class size on the educational
performance of students and on classroom management and organization.

''SEC. 562. PROGRAM AUTHORIZED.

''(a) Program Authorized.--
''(1) In general.--The Secretary shall award grants, on a
competitive basis, to State educational agencies to pay the
Federal share of the costs of conducting demonstration projects
that demonstrate methods of reducing class size that may
provide information meaningful to other State educational
agencies and local educational agencies.
''(2) Federal share.--The Federal share shall be 50
percent.
''(b) Reservation.--The Secretary may reserve not more than 5
percent of the amount appropriated under section 565A for each fiscal
year to carry out the activities described in section 565.
''(c) Selection Criteria.--The Secretary shall make grants to State
educational agencies on the basis of--
''(1) the need and the ability of a State educational
agency to reduce the class size of an elementary school or
secondary school served by such agency;
''(2) the ability of a State educational agency to furnish
the non-Federal share of the costs of the demonstration project
for which assistance is sought;
''(3) the ability of a State educational agency to continue
the project for which assistance is sought after the
termination of Federal financial assistance under this subpart;
and
''(4) the degree to which a State educational agency
demonstrates in the application submitted pursuant to section
564 consultation in program implementation and design with
parents, teachers, school administrators, and local teacher
organizations, where applicable.
''(d) Priority.--In awarding grants under this subpart, the
Secretary shall give priority to demonstration projects that involve
at-risk students in the earliest grades, including educationally or
economically disadvantaged students, students with disabilities, and
limited English proficient students.
''(e) Grants Must Supplement Other Funds.--A State educational
agency shall use the Federal funds received under this subpart to
supplement and not supplant other Federal, State, and local funds
available to the State educational agency to carry out the purpose of
this subpart.

''SEC. 563. PROGRAM REQUIREMENTS.

''(a) Annual Competition.--In each fiscal year, the Secretary shall
announce the factors to be examined in a demonstration project assisted
under this subpart. Such factors may include--
''(1) the magnitude of the reduction in class size to be
achieved;
''(2) the level of education in which the demonstration
projects shall occur;
''(3) the form of the instructional strategy to be
demonstrated; and
''(4) the duration of the project.
''(b) Random Techniques and Appropriate Comparison Groups.--
Demonstration projects assisted under this subpart shall be designed to
utilize randomized techniques or appropriate comparison groups.

''SEC. 564. APPLICATION.

''(a) In General.--In order to receive a grant under this subpart,
a State educational agency shall submit an application to the Secretary
that is responsive to the announcement described in section 563(a), at
such time, in such manner, and containing or accompanied by such
information as the Secretary may reasonably require.
''(b) Duration.--The Secretary shall encourage State educational
agencies to submit applications under this subpart for a period of 5
years.
''(c) Contents.--Each application submitted under subsection (a)
shall include--
''(1) a description of the objectives to be attained with
the grant funds and the manner in which the grant funds will be
used to reduce class size;
''(2) a description of the steps to be taken to achieve
target class sizes, including, where applicable, the
acquisition of additional teaching personnel and classroom
space;
''(3) a statement of the methods for the collection of data
necessary for the evaluation of the impact of class size
reduction programs on student achievement;
''(4) an assurance that the State educational agency will
pay, from non-Federal sources, the non-Federal share of the
costs of the demonstration project for which assistance is
sought; and
''(5) such additional assurances as the Secretary may
reasonably require.
''(d) Sufficient Size and Scope Required.--The Secretary shall
award grants under this subpart only to State educational agencies
submitting applications which described projects of sufficient size and
scope to contribute to carrying out the purpose of this subpart.

''SEC. 565. EVALUATION AND DISSEMINATION.

''(a) National Evaluation.--The Secretary shall conduct a national
evaluation of the demonstration projects assisted under this subpart to
determine the costs incurred in achieving the reduction in class size
and the effects of the reductions on results, such as student
performance in the affected subjects or grades, attendance, discipline,
classroom organization, management, and teacher satisfaction and
retention.
''(b) Cooperation.--Each State educational agency receiving a grant
under this subpart shall cooperate in the national evaluation described
in subsection (a) and shall provide such information to the Secretary
as the Secretary may reasonably require.
''(c) Reports.--The Secretary shall report to Congress on the
results of the evaluation conducted under subsection (a).
''(d) Dissemination.--The Secretary shall widely disseminate
information about the results of the class size demonstration projects
assisted under this subpart.

''SEC. 565A. AUTHORIZATION OF APPROPRIATIONS.

''There are authorized to be appropriated to carry out this subpart
$15,000,000 for fiscal year 1999 and each of the 4 succeeding fiscal
years.''.

SEC. 2. PRIVATE SECTOR FUNDING FOR RESEARCH AND DEVELOPMENT BY NASA
RELATING TO AIRCRAFT PERFORMANCE.

The Administrator of the National Aeronautics and Space
Administration may not carry out research and development activities
relating to the performance of aircraft (including supersonic aircraft
and subsonic aircraft) unless the Administrator receives payment in
full for such activities from the private sector.

Ex Output:
Amends the Higher Education Act of 1965 to establish a competitive Class Size Demonstration Grants program.
Directs the Secretary of Education to award such grants to State educational agencies (SEAs) to pay half of the costs of conducting projects that demonstrate methods of reducing class size that may provide information meaningful to other SEAs and local educational agencies (LEAs). Authorizes the Secretary to reserve up to five percent of funds for this Act for each fiscal year to carry out national evaluation and dissemination activities.
Sets forth program requirements for: (1) grant selection criteria; (2) priority for projects that involve at-risk students in the earliest grades, including educationally or economically disadvantaged students, students with disabilities, and limited English proficient students; (3) annual competitions; (4) random techniques and appropriate comparison groups; (5) applications; and (6) sufficient size and scope of projects.
Directs the Secretary to: (1) conduct, and report to the Congress on, a national evaluation of such projects to determine the costs incurred in achieving the reduction in class size and the effects of the reductions on results; and (2) widely disseminate information about the results of such projects.
Authorizes appropriations.
(Sec. 2) Prohibits the Administrator of the National Aeronautics and Space Administration from carrying out research and development activities relating to the performance of aircraft (including supersonic aircraft and subsonic aircraft) unless the Administrator receives payment in full for such activities from the private sector.

Ex Input:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ''Small Business
Health Insurance Promotion Act of 2004''.
(b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Temporary tax credit for small employers offering health
coverage through a qualified health pooling
arrangement.
Sec. 3. Qualified State health pooling arrangements.
Sec. 4. Establishment of national health pooling arrangement.
Sec. 5. Funding of pooling arrangements.
Sec. 6. Institute of Medicine study and report.

SEC. 2. TEMPORARY TAX CREDIT FOR SMALL EMPLOYERS OFFERING HEALTH
COVERAGE THROUGH A QUALIFIED HEALTH POOLING ARRANGEMENT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business-related
credits) is amended by adding at the end the following:

''SEC. 45G. SMALL BUSINESS HEALTH POOL ARRANGEMENTS.

''(a) General Rule.--For purposes of section 38, in the case of an
eligible small employer, the health pool arrangement credit determined
under this section for the taxable year is an amount equal to 50
percent of amounts paid or incurred by the employer during the taxable
year as premiums for self-only or family coverage for health benefits
under a qualified health pooling arrangement for employees of such
employer.
''(b) Limitations.--
''(1) Employer must bear 50 percent of cost.--Expenses may
be taken into account under subsection (a) only if at least 50
percent of the premiums under the qualified health pooling
arrangement are paid by the employer.
''(2) Period of coverage.--Expenses may be taken into
account under subsection (a) only with respect to coverage for
the 4-year period beginning on the date the employer first
begins participating in a qualified health pooling arrangement.
''(3) Employers offering other health benefits.--In the
case of an employer who paid or incurred any expenses for
health benefits for the employees of such employer during the
first taxable year ending on or after the date of the enactment
of this section, subsection (a) shall apply to such employer
only if such employer begins participating in a qualified
health pooling arrangement during the 2-year period beginning
on the later of--
''(A) the date of the enactment of this section, or
''(B) the first date that a qualified health
pooling arrangement exists which allows such employer
to participate.
''(4) No employees excluded.--Subsection (a) shall not
apply to an employer for any period unless at all times during
such period coverage for health benefits under a qualified
health pooling arrangement is available to all employees of
such employer under similar terms.
''(5) Amounts paid under salary reduction arrangements.--No
amount paid or incurred pursuant to a salary reduction
arrangement shall be taken into account under subsection (a).
''(c) Definitions and Special Rules.--For purposes of this
section--
''(1) Eligible small employer.--
''(A) In general.--The term 'eligible small
employer' means an employer who employed, with respect
to the calendar year in which such employer first
begins participating in a qualified health pooling
arrangement, an average of not more than 50 employees
on business days during the preceding calendar year.
''(B) Employers not in existence in preceding
year.--In the case of an employer which was not in
existence throughout the preceding calendar year, the
determination of whether such employer is an eligible
small employer shall be based on the average number of
employees that it is reasonably expected such employer
will employ on business days in the current calendar
year.
''(C) Permanent status as eligible small
employer.--In the case of an employer who meets the
requirements of this subsection with respect to the
calendar year in which such employer first begins
participating in a qualified health pooling
arrangement, such employer shall not fail to be treated
as an eligible small employer for any subsequent
calendar year.
''(D) Predecessors.--The Secretary may prescribe
regulations which provide for references in this
paragraph to an employer to be treated as including
references to predecessors of such employer.
''(2) Self-employed individuals.--
''(A) Treatment as employee.--The term 'employee'
includes an individual who is an employee within the
meaning of section 401(c)(1) (relating to self-employed
individuals).
''(B) Treatment as employer.--An individual who
owns the entire interest in an unincorporated trade or
business shall be treated as his own employer. A
partnership shall be treated as the employer of each
partner who is an employee within the meaning of
subparagraph (A).
''(3) Family coverage.--The term 'family coverage' means
coverage for health benefits of the employee and qualified
family members of the employee (as defined in section 35(d),
but without regard to the last sentence of paragraph (1)
thereof).
''(4) Qualified health pooling arrangement.--The term
'qualified health pooling arrangement' means a qualified State
health pooling arrangement described in section 3 of Small
Business Health Insurance Promotion Act of 2004 or the national
health pooling arrangement described in section 4 of such Act.
''(5) Certain rules made applicable.--Rules similar to the
rules of section 52 shall apply for purposes of this
section.''.
(b) Credit to Be Part of General Business Credit.--Section 38(b) of
such Code (relating to current year business credit) is amended by
striking ''plus'' at the end of paragraph (13), by striking the period
at the end of paragraph (14) and inserting '', plus'', and by adding at
the end the following:
''(15) in the case of an eligible small employer (as
defined in section 45G(c)), the health pool arrangement credit
determined under section 45G(a).''.
(c) No Carrybacks.--Subsection (d) of section 39 of such Code
(relating to carryback and carryforward of unused credits) is amended
by adding at the end the following:
''(11) No carryback of section 45g credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the health pool arrangement
credit determined under section 45G may be carried back to a
taxable year beginning before January 1, 2004.''.
(d) Denial of Double Benefit.--Section 280C of such Code is amended
by adding at the end the following new subsection:
''(d) Credit for Small Business Health Pool Arrangements.--
''(1) In general.--No deduction shall be allowed for that
portion of the expenses (otherwise allowable as a deduction)
taken into account in determining the credit under section 45G
for the taxable year which is equal to the amount of the credit
determined for such taxable year under section 45G(a).
''(2) Controlled groups.--Persons treated as a single
employer under subsection (a) or (b) of section 52 shall be
treated as 1 person for purposes of this section.''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following:

''Sec. 45G. Small business health pool arrangements.''.
(f) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2003, for arrangements established after the date of the
enactment of this Act.

SEC. 3. QUALIFIED STATE HEALTH POOLING ARRANGEMENTS.

(a) Defined.--For purposes of this Act, the term ''qualified State
health pooling arrangement'' means an arrangement established by a
State which meets the following requirements:
(1) Health benefits coverage.--The arrangement provides
health benefits coverage that the Secretaries of Health and
Human Services and Labor jointly determine is substantially
similar to the health benefits coverage in any of the four
largest health benefits plans (determined by enrollment)
offered under chapter 89 of title 5, United States Code.
(2) Group health plan requirements.--The health benefits
coverage provided under the arrangement meets the requirements
applicable to a group health plan under chapter 100 of the
Internal Revenue Code of 1986, part 7 of subtitle B of title I
of the Employee Retirement Income Security Act of 1974, and
State law.
(3) Guaranteed issue and renewable.--The arrangement does
not deny coverage (including renewal of coverage) with respect
to employees of any eligible small employer or qualifying
family members of such employees on the basis of health status
of such employees or family members or any other condition or
requirement that the Secretaries of Health and Human Services
and Labor jointly determine constitutes health underwriting.
(4) No preexisting condition exclusion.--The arrangement
does not permit a preexisting condition exclusion as defined
under section 9801(b)(1) of the Internal Revenue Code of 1986
and under section 701(b)(1) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 11(b)(1)).
(5) No underwriting; community-rated premiums.--(A) Subject
to subparagraph (B), the arrangement does not permit
underwriting, through a preexisting condition limitation,
differential benefits, or different premium levels, or
otherwise, with respect to such coverage for employees or their
qualifying family members.
(B) The premiums charged for such coverage are community-
rated for individuals without regard to health status.
(6) No riders.--The arrangement does not permit riders to
the health benefits coverage.
(7) Accessibility to eligible small employers.--The
arrangement makes such coverage available to an eligible small
employer without regard to whether a credit is available under
section 45G of the Internal Revenue Code of 1986 with respect
to such employer.
(8) Minimum of two plans offered under the arrangement.--
The arrangement makes available at least two plans for health
benefits coverage.
(b) Eligible Small Employer; Self-Employed Individual.--For
purposes of this Act, the terms ''eligible small employer'' and
''employee'' have the same meanings as when such terms are used in
section 45G of the Internal Revenue Code of 1986 and rules similar to
the rules of subsection (c) of such section shall apply for purposes of
this Act.
(c) Qualifying Family Member.--For purposes of this Act, the term
''qualifying family member'' has the meaning given such term in section
35(d) of the Internal Revenue Code of 1986, applied without regard to
the last sentence of paragraph (1) thereof.
(d) State Defined.--For purposes of this Act, the term ''State''
includes the District of Columbia, Puerto Rico, the Virgin Islands of
the United States, Guam, American Samoa, and the Northern Mariana
Islands.
(e) Construction.--Nothing in this section shall be construed as
requiring a State to establish or maintain a qualified State health
pooling arrangement.
(f) Creditable Coverage for Purposes of HIPAA.--Health benefits
coverage provided under a qualified State health pooling arrangement
under this section (and coverage provided under a National Pooling
Arrangement under section 4 of this title) shall be treated as
creditable coverage for purposes of part 7 of subtitle B of title I of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181 et
seq.), title XXVII of the Public Health Service Act (42 U.S.C. 300gg et
seq.), and subtitle K of the Internal Revenue Code of 1986.
(g) Oversight and Accountability.--
(1) Oversight.--The Secretaries of Health and Human
Services and Labor shall jointly oversee the offering of health
benefits coverage under qualified State health pooling
arrangements to eligible small employers.
(2) Annual reports.--
(A) In general.--Each State that offers a qualified
State health pooling arrangement under this section in
a year shall submit, in a form and manner specified
jointly by the Secretaries of Health and Human Services
and Labor, a report on the operation of the arrangement
in that year.
(B) Contents of report.--Reports required under
subparagraph (A) shall include the following:
(i) A description of the health benefits
coverage offered under the arrangement.
(ii) The number of employers that
participated in the arrangement.
(iii) The number of employees and
qualifying family members of employees who
received health benefits coverage under the
arrangement.
(iv) The premiums charged for the health
benefits coverage under the arrangement.
(3) Certification.--Each State that offers a qualified
State health pooling arrangement under this section in a year
shall submit, in a form and manner specified jointly by the
Secretaries of Health and Human Services and Labor, a
certification that the arrangement meets the requirements of
this Act.
(h) Coordination of Complaints With State Insurance
Commissioners.--The Secretaries of Health and Human Services and Labor
shall coordinate with the insurance commissioners for the various
States in establishing a process for handling and resolving any
complaints relating to health benefits coverage offered under this Act,
to the extent necessary to augment processes otherwise available under
State law.
(i) No Preemption of State Law.--Nothing in this section shall be
construed as preempting provisions of State law that provide
protections in excess of the protections required under this section.

SEC. 4. ESTABLISHMENT OF NATIONAL HEALTH POOLING ARRANGEMENT.

(a) In General.--The Secretaries of Health and Human Services and
Labor, jointly in consultation with the Director of the Office of
Personnel Management, shall provide for the offering and oversight of a
national health pooling arrangement to eligible small employers.
(b) National Health Pooling Arrangement Defined.-- For purposes of
this section, the term ''national health pooling arrangement'' means an
arrangement under which health plans are offered under terms and
conditions that meet the requirements of section 3(a).
(c) Use of FEHBP Model.--The Secretaries of Health and Human
Services and Labor shall jointly provide for the national health
pooling arrangement using the model of the Federal employees health
benefits program under chapter 89 of title 5, United States Code, to
the extent practicable and consistent with the provisions of this Act.
In carrying out such model, the Secretaries shall, to the maximum
extent practicable, negotiate the most affordable and substantial
coverage possible for small employers.

SEC. 5. FUNDING OF POOLING ARRANGEMENTS.

(a) Funding of States to Establish and Operate Qualified State
Health Pooling Arrangements.--There are authorized to be appropriated
to the Secretaries of Health and Human Services and Labor such sums as
may be necessary to provide grants to States to establish and operate
qualified State health pooling arrangements described in section 3.
(b) Funding of National Health Pooling Arrangement.--There are
authorized to be appropriated to the Secretaries of Health and Human
Services and Labor such sums as may be necessary to provide for the
offering and operation of the national health pooling arrangement under
section 4.

SEC. 6. INSTITUTE OF MEDICINE STUDY AND REPORT.

(a) Study.--The Secretaries of Health and Human Services and Labor
shall jointly enter into an arrangement under which the Institute of
Medicine of the National Academy of Sciences shall conduct a study on
the operation of qualified State health pooling arrangements under
section 3 and the national health pooling arrangement under section 4.
(b) Matters Studied.--The study conducted under subsection (a)
shall include the following:
(1) An assessment of the success of the arrangements.
(2) A determination of the affordability of health benefits
coverage under the arrangements for employers and employees.
(3) A determination of the access of small employers to
health benefits coverage.
(4) A determination of the extent to which the tax credit
under section 45G of the Internal Revenue Code of 1986 provides
a subsidy for eligible small employers that provided (or would
have provided) health benefits coverage in the absence of such
credit.
(5) Recommendations with respect to--
(A) extension of the period for which the tax
credit under section 45G of the Internal Revenue Code
of 1986 is available to employers or an appropriate
phase-out of such credit over time;
(B) expansion of categories of persons eligible for
such tax credit;
(C) expansion of persons eligible for health
benefits coverage under the arrangements; and
(D) such other matters as the Institute determines
appropriate.
(c) Report.--Not later than January 1, 2009, the Comptroller
General shall submit to Congress a report on the study conducted under
subsection (a).

Ex Output:
Small Business Health Insurance Promotion Act of 2004 - Amends the Internal Revenue Code to allow certain small employers (not more than 50 employees) a business tax credit equal to 50 percent of amounts paid by such employers for the health care coverage of their employees under a qualified health pooling arrangement. Limits the period during which the tax credit may be taken to four years from the date the employer begins participating in a qualified health pooling arrangement. Defines "qualified health pooling arrangement" as a national or state arrangement that provides health benefits coverage substantially similar to that of the four largest health benefit plans offered to Federal employees.

Directs the Secretaries of Health and Human Services and Labor to provide for the offering and oversight of qualified State and national health pooling arrangements and to conduct a study, through the Institute of Medicine of the National Academy of Sciences, of the operation of such arrangements.