[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2713 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2713
To provide for equitable treatment for Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, and American Samoa.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2021
Ms. Velazquez (for herself, Ms. Ocasio-Cortez, Mr. Grijalva, and Mr.
Torres of New York) introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committees
on Energy and Commerce, Agriculture, Education and Labor, and Natural
Resources, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for equitable treatment for Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, and American Samoa.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Territorial Equity
Act of 2021''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--HEALTH EQUITY FOR THE TERRITORIES
Subtitle A--Medicaid
Sec. 101. Elimination of general Medicaid funding limitations (``cap'')
for territories.
Sec. 102. Elimination of specific Federal medical assistance percentage
(FMAP) limitation for territories;
temporary increase in FMAP for Puerto Rico
and the Virgin Islands to 100 percent.
Sec. 103. Application of Medicaid waiver authority to all of the
territories.
Sec. 104. Permitting Medicaid DSH allotments for territories.
Subtitle B--Medicare Part A
Sec. 111. Calculation of Medicare DSH payments for IPPS hospitals in
Puerto Rico.
Sec. 112. Rebasing target amount for hospitals in territories.
Sec. 113. Medicare DSH target adjustment for hospitals in territories.
Subtitle C--Medicare Part B
Sec. 121. Application of part B deemed enrollment process to residents
of Puerto Rico; special enrollment period
and limit on late enrollment penalties.
Subtitle D--Medicare Advantage (Part C)
Sec. 131. Adjustment in benchmark for low-base payment counties in
Puerto Rico.
Subtitle E--Medicare Part D
Sec. 141. Improved use of allocated prescription drug funds by
territories.
Sec. 142. Report on treatment of territories under Medicare part D.
Subtitle F--Miscellaneous
Sec. 151. Medicaid and CHIP territory transparency and information.
Sec. 152. Report on exclusion of territories from Exchanges.
Sec. 153. Access to coverage for individuals in certain areas without
any available Exchange plans.
TITLE II--INCLUSION OF THE TERRITORIES IN THE SUPPLEMENTAL NUTRITIONAL
ASSISTANCE PROGRAM
Sec. 201. Participation and transition of Puerto Rico, American Samoa,
and the Northern Mariana Islands in
supplemental nutrition assistance program.
TITLE III--EQUITABLE TREATMENT FOR PUERTO RICO AND THE VIRGIN ISLANDS
WITH RESPECT TO TAX CREDITS
Sec. 301. Equitable treatment for residents of Puerto Rico and the
Virgin Islands with respect to the earned
income tax credit and the child tax credit.
TITLE IV--LABOR EQUITY FOR PUERTO RICO
Sec. 401. Minimum wage for young employees in Puerto Rico.
Sec. 402. Overtime hours protections for workers in Puerto Rico.
TITLE V--EXTENSION OF SUPPLEMENTAL SECURITY INCOME (SSI) PROGRAM TO ALL
TERRITORIES
Sec. 501. Extension of SSI program to all territories.
TITLE I--HEALTH EQUITY FOR THE TERRITORIES
Subtitle A--Medicaid
SEC. 101. ELIMINATION OF GENERAL MEDICAID FUNDING LIMITATIONS (``CAP'')
FOR TERRITORIES.
(a) In General.--Section 1108 of the Social Security Act (42 U.S.C.
1308) is amended--
(1) in subsection (f), in the matter preceding paragraph
(1), by striking ``and (h)'' and inserting ``(h), and (i)'';
(2) in subsection (g)(2), in the matter preceding
subparagraph (A), by inserting ``subsection (i),'' after
``subject to''; and
(3) by adding at the end the following new subsection:
``(i) Sunset of Medicaid Funding Limitations for Puerto Rico, the
Virgin Islands, Guam, the Northern Mariana Islands, and American
Samoa.--Subsections (f) and (g) shall not apply to Puerto Rico, the
Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa
beginning with fiscal year 2022.''.
(b) Conforming Amendments.--
(1) Section 1902(j) of the Social Security Act (42 U.S.C.
1396a(j)) is amended by striking ``, the limitation in section
1108(f),''.
(2) Section 1903(u) of the Social Security Act (42 U.S.C.
1396b(u)) is amended by striking paragraph (4).
(c) Effective Date.--The amendments made by this section shall
apply beginning with fiscal year 2022.
SEC. 102. ELIMINATION OF SPECIFIC FEDERAL MEDICAL ASSISTANCE PERCENTAGE
(FMAP) LIMITATION FOR TERRITORIES; TEMPORARY INCREASE IN
FMAP FOR PUERTO RICO AND THE VIRGIN ISLANDS TO 100
PERCENT.
Section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) is
amended--
(1) in clause (2), by inserting ``for fiscal years before
fiscal year 2022'' after ``American Samoa''; and
(2) by adding at the end the following new sentence:
``Notwithstanding the first sentence of this subsection, for
each of fiscal years 2022 and 2023, the Federal medical
assistance percentage for Puerto Rico and the Virgin Islands
shall be 100 percent.''.
SEC. 103. APPLICATION OF MEDICAID WAIVER AUTHORITY TO ALL OF THE
TERRITORIES.
(a) In General.--Section 1902(j) of the Social Security Act (42
U.S.C. 1396a(j)) is amended--
(1) by striking ``American Samoa and the Northern Mariana
Islands'' and inserting ``Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, and American Samoa'';
(2) by striking ``American Samoa or the Northern Mariana
Islands'' and inserting ``Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, or American Samoa'';
(3) by inserting ``(1)'' before ``Notwithstanding'';
(4) by inserting ``except as otherwise provided in this
subsection,'' after ``Notwithstanding any other requirement of
this title''; and
(5) by adding at the end the following:
``(2) The Secretary may not waive under this subsection--
``(A) the requirement of subsection (a)(10)(A)(i)(IX)
(relating to coverage of adults formerly under foster care)
with respect to any territory;
``(B) the requirement to provide medical assistance for
early and periodic screening, diagnostic, and treatment
services (as defined in section 1905(r)) for individuals who
are eligible for assistance under the program and who are under
the age of 21; or
``(C) the requirement to provide for payment for services
described in section 1905(a)(2)(C) furnished by a Federally-
qualified health center and services described in section
1905(a)(2)(B) furnished by a rural health clinic in accordance
with the provisions of subsection (bb).''.
(b) Effective Date.--The amendments made by this section shall
apply beginning October 1, 2021.
SEC. 104. PERMITTING MEDICAID DSH ALLOTMENTS FOR TERRITORIES.
Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f))
is amended--
(1) in paragraph (6), by adding at the end the following
new subparagraph:
``(C) Territories.--
``(i) Fiscal year 2021.--For fiscal year
2022, the DSH allotment for Puerto Rico, the
Virgin Islands, Guam, the Northern Mariana
Islands, and American Samoa shall bear the same
ratio to $300,000,000 as the ratio of the
number of individuals who are low-income or
uninsured and residing in such respective
territory (as estimated from time to time by
the Secretary) bears to the sums of the number
of such individuals residing in all of the
territories.
``(ii) Subsequent fiscal year.--For each
subsequent fiscal year, the DSH allotment for
each such territory is subject to an increase
in accordance with paragraph (3).''; and
(2) in paragraph (9), by inserting before the period at the
end the following: ``, and includes, beginning with fiscal year
2022, Puerto Rico, the Virgin Islands, Guam, the Northern
Mariana Islands, and American Samoa''.
Subtitle B--Medicare Part A
SEC. 111. CALCULATION OF MEDICARE DSH PAYMENTS FOR IPPS HOSPITALS IN
PUERTO RICO.
Section 1886(d)(9)(D)(iii) of the Social Security Act (42 U.S.C.
1395ww(d)(9)(D)(iii)) is amended to read as follows:
``(iii) Subparagraph (F) (relating to disproportionate
share payments), including application of subsection (r),
except that for this purpose--
``(I) the sum described in clause (ii) of this
subparagraph shall be substituted for the sum referred
to in paragraph (5)(F)(ii)(I); and
``(II) for discharges occurring on or after October
1, 2021, subclause (I) of paragraph (5)(F)(vi) shall be
applied by substituting for the numerator described in
such subclause the number of subsection (d) Puerto Rico
hospital's patient days for the cost reporting period
involved which were made up of patients who (for such
days) were entitled to benefits under part A of this
title and were--
``(aa) entitled to supplementary security
income benefits (excluding any State
supplementation) under title XVI of this Act;
``(bb) eligible for medical assistance
under a State plan under title XIX; or
``(cc) receiving aid or assistance under
any plan of the State approved under title I,
X, XIV, or XVI.''.
SEC. 112. REBASING TARGET AMOUNT FOR HOSPITALS IN TERRITORIES.
Section 1886(b)(3) of the Social Security Act (42 U.S.C.
1395ww(b)(3)) is amended by adding at the end the following new
subparagraph:
``(M)(i) For each cost reporting period beginning on or after
October 1, 2021, in the case of a hospital located in a territory of
the United States, there shall be substituted for the target amount
otherwise determined under subparagraph (A) the rebased target amount
(as defined in clause (ii)), if such substitution results in an amount
of payment under this section to the hospital for such period that is
greater than the amount of payment that would be made under this
section to the hospital for such period if this subparagraph were not
to apply.
``(ii) For purposes of this subparagraph, the term `rebased target
amount' has the meaning given the term `target amount' in subparagraph
(A), except that--
``(I) there shall be substituted for the preceding 12-month
cost reporting period the 12-month cost reporting period
beginning during fiscal year 2017 (or, at the option of the
hospital, beginning during fiscal year 2019);
``(II) any reference in subparagraph (A)(i) to the `first
such cost reporting period' is deemed a reference to the first
cost reporting period following the 12-month cost reporting
period beginning during fiscal year 2017 (or, at the option of
the hospital, beginning during fiscal year 2019); and
``(III) the applicable percentage increase shall only be
applied under subparagraph (B)(ii) for cost reporting periods
beginning on or after October 1, 2021.
``(iii) Nothing in this subparagraph shall affect any pending
request by a hospital for a new target amount for any cost reporting
period beginning during a fiscal year before fiscal year 2022.''.
SEC. 113. MEDICARE DSH TARGET ADJUSTMENT FOR HOSPITALS IN TERRITORIES.
Section 1886(b)(3) of the Social Security Act (42 U.S.C.
1395ww(b)(3)), as amended by section 112, is further amended by adding
at the end the following new subparagraph:
``(N)(i) For each cost reporting period beginning on or after
October 1, 2020, in the case of a hospital that is located in a
territory of the United States other than Puerto Rico and that would be
a subsection (d) hospital if it were located in one of the 50 States,
the target amount shall be increased by--
``(I) in the case that such hospital has a disproportionate
patient percentage of not less than 15 percent and not greater
than 40 percent, 10 percent; and
``(II) in the case that such hospital has a
disproportionate patient percentage of greater than 40 percent,
10 percent plus 60 percent of the number of percentage points
by which such hospital's disproportionate patient percentage
exceeds 40 percent.
``(ii) For purposes of this subparagraph, the term
`disproportionate patient percentage' has the meaning given such term
in subsection (d)(5)(F)(vi), except that in applying such meaning any
reference under such subsection to individuals entitled to
supplementary security income under title XVI shall be deemed for
purposes of this subparagraph to include individuals--
``(I) eligible for medical assistance under a State plan
under title XIX; or
``(II) receiving aid or assistance under any plan of the
territory approved under title I, X, XIV, or XVI.''.
Subtitle C--Medicare Part B
SEC. 121. APPLICATION OF PART B DEEMED ENROLLMENT PROCESS TO RESIDENTS
OF PUERTO RICO; SPECIAL ENROLLMENT PERIOD AND LIMIT ON
LATE ENROLLMENT PENALTIES.
(a) Application of Part B Deemed Enrollment Process to Residents of
Puerto Rico.--Section 1837(f)(3) of the Social Security Act (42 U.S.C.
1395p(f)(3)) is amended by striking ``, exclusive of Puerto Rico''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to individuals whose initial enrollment period under section
1837(d) of the Social Security Act begins on or after the first day of
the effective month, specified by the Secretary of Health and Human
Services under section 1839(k)(1)(C) of such Act, as added by
subsection (c)(2).
(c) Transition Providing Special Enrollment Period and Limit on
Late Enrollment Penalties for Certain Medicare Beneficiaries.--Section
1839 of the Social Security Act (42 U.S.C. 1395r) is amended--
(1) in the first sentence of subsection (b), by inserting
``subject to subsection (k)(2) of this section,'' after
``subsection (i)(4), (l), or (l) of section 1837,''; and
(2) by adding at the end the following new subsection:
``(k) Special Rules for Certain Residents of Puerto Rico.--
``(1) Special enrollment period, coverage period for
residents who are eligible but not enrolled.--
``(A) In general.--In the case of a transition
individual (as defined in paragraph (3)) who is not
enrolled under this part as of the day before the first
day of the effective month (as defined in subparagraph
(C)), the Secretary shall provide for a special
enrollment period under section 1837 of 7 months
beginning with such effective month during which the
individual may be enrolled under this part.
``(B) Coverage period.--In the case of such an
individual who enrolls during such special enrollment
period, the coverage period under section 1838 shall
begin on the first day of the second month after the
month in which the individual enrolls.
``(C) Effective month defined.--In this section,
the term `effective month' means a month, not earlier
than October 2022 and not later than January 2023,
specified by the Secretary.
``(2) Reduction in late enrollment penalties for current
enrollees and individuals enrolling during transition.--
``(A) In general.--In the case of a transition
individual who is enrolled under this part as of the
day before the first day of the effective month or who
enrolls under this part on or after the date of the
enactment of this subsection but before the end of the
special enrollment period under paragraph (1)(A), the
amount of the late enrollment penalty imposed under
section 1839(b) shall be recalculated by reducing the
penalty to 15 percent of the penalty otherwise
established.
``(B) Application.--Subparagraph (A) shall be
applied in the case of a transition individual who--
``(i) is enrolled under this part as of the
month before the effective month, for premiums
for months beginning with such effective month;
or
``(ii) enrolls under this part on or after
the date of the enactment of this Act and
before the end of the special enrollment period
under paragraph (1)(A), for premiums for months
during the coverage period under this part
which occur during or after the effective
month.
``(C) Loss of reduction if individual terminates
enrollment.--Subparagraph (A) shall not apply to a
transition individual if the individual terminates
enrollment under this part after the end of the special
enrollment period under paragraph (1).
``(3) Transition individual defined.--In this section, the
term `transition individual' means an individual who resides in
Puerto Rico and who would have been deemed enrolled under this
part pursuant to section 1837(f) before the first day of the
effective month but for the fact that the individual was a
resident of Puerto Rico, regardless of whether the individual
is enrolled under this part as of such first day.''.
Subtitle D--Medicare Advantage (Part C)
SEC. 131. ADJUSTMENT IN BENCHMARK FOR LOW-BASE PAYMENT COUNTIES IN
PUERTO RICO.
Section 1853(n) of the Social Security Act (42 U.S.C. 1395w-23(n))
is amended--
(1) in paragraph (1), by striking ``and (5)'' and inserting
``(5), and (6)'';
(2) in paragraph (4), by striking ``In no case'' and
inserting ``Subject to paragraph (6), in no case''; and
(3) by adding at the end the following new paragraph:
``(6) Special rules for blended benchmark amount for
territories.--
``(A) In general.--Subject to subparagraph (B), the
blended benchmark amount for an area in a territory for
a year (beginning with 2022) shall not be less than 80
percent of the national average of the base payment
amounts specified in subparagraph (2)(E) for such year
for areas within the 50 States and the District of
Columbia.
``(B) Limitation.--In no case shall the blended
benchmark amount for an area in a territory for a year
under subparagraph (A) exceed the lowest blended
benchmark amount for any area within the 50 States and
the District of Columbia for such year.''.
Subtitle E--Medicare Part D
SEC. 141. IMPROVED USE OF ALLOCATED PRESCRIPTION DRUG FUNDS BY
TERRITORIES.
Section 1935(e) of the Social Security Act (42 U.S.C. 1396u-5(e))
is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new
paragraph:
``(5) Improved use of funds for low-income part d eligible
individuals.--This subsection shall be applied beginning with
fiscal year 2022 as follows, notwithstanding any other
provision of this title:
``(A) Clarifying state flexibility to cover non-
dual-eligible individuals.--In this title, the term
`medical assistance' includes financial assistance
furnished by a State under this subsection to part D
eligible individuals who, if they were residing in one
of the 50 States or the District of Columbia, would
qualify as subsidy eligible individuals under section
1860D-14(a)(3), and without regard to whether such
individuals otherwise qualify for medical assistance
under this title.
``(B) 100 percent fmap to reflect no state matching
required for part d low income subsidies.--The Federal
medical assistance percentage applicable to the
assistance furnished under this subsection is 100
percent.
``(C) Limited funding for special rules.--
Subparagraphs (A) and (B), and the provision of medical
assistance for covered part D drugs to low-income part
D eligible individuals for a State and period under
this subsection, is limited to the amount specified in
paragraph (3) for such State and period.''.
SEC. 142. REPORT ON TREATMENT OF TERRITORIES UNDER MEDICARE PART D.
Paragraph (6) of section 1935(e) of the Social Security Act (42
U.S.C. 1396u-5(e)), as redesignated by section 141, is amended to read
as follows:
``(6) Report on application of subsection.--
``(A) In general.--Not later than February 1, 2023,
the Secretary shall submit to Congress a report on the
application of this subsection during the period
beginning fiscal year 2006 and ending fiscal year 2022.
``(B) Information to be included in report.--Such
report shall include--
``(i) program guidance issued by the
Secretary to implement this subsection;
``(ii) for each territory, information on
the increased amount under paragraph (3) and
how the territory has applied such amount,
including the territory's program design,
expenditures, and number of individuals (and
dual-eligible individuals) assisted; and
``(iii) differences between how such
territories are treated under part D of title
XVIII and under this title compared with the
treatment of the 50 States and the District of
Columbia under such part and this title for
different fiscal years within the period
covered under the report.
``(C) Recommendations.--Such report shall include
recommendations for improving prescription drug
coverage for low-income individuals in each territory,
including recommendations regarding each of the
following alternative approaches:
``(i) Adjusting the aggregate amount
specified in paragraph (3)(B).
``(ii) Allowing residents of the
territories to be subsidy eligible individuals
under section 1860D-14, notwithstanding
subsection (a)(3)(F) of such section, or
providing substantially equivalent low-income
prescription drug subsidies to such
residents.''.
Subtitle F--Miscellaneous
SEC. 151. MEDICAID AND CHIP TERRITORY TRANSPARENCY AND INFORMATION.
(a) Publication of Information on Federal Expenditures Under
Medicaid and CHIP in the Territories.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of Health and
Human Services shall publish, and periodically update, on the Internet
site of the Centers for Medicare & Medicaid Services information on
Medicaid and CHIP carried out in the territories of the United States.
Such information shall include, with respect to each such territory--
(1) the income levels established by the territory for
purposes of eligibility of an individual to receive medical
assistance under Medicaid or child health assistance under
CHIP;
(2) the number of individuals enrolled in Medicaid and CHIP
in such territory;
(3) any State plan amendments in effect to carry out
Medicaid or CHIP in such territory;
(4) any waiver of the requirements of title XIX or title
XXI issued by the Secretary to carry out Medicaid or CHIP in
the territory, including a waiver under section 1115 of the
Social Security Act (42 U.S.C. 1315), any application for such
a waiver, and any documentation related to such application
(including correspondence);
(5) the amount of the Federal and non-Federal share of
expenditures under Medicaid and CHIP in such territory;
(6) the systems in place for the furnishing of health care
items and services under Medicaid and CHIP in such territory;
(7) the design of CHIP in such territory; and
(8) other information regarding the carrying out of
Medicaid and CHIP in the territory that is published on such
Internet site with respect to carrying out Medicaid and CHIP in
each State and the District of Columbia.
(b) Definitions.--In this section:
(1) CHIP.--The term ``CHIP'' means the State Children's
Health Insurance Program under title XXI of the Social Security
Act.
(2) Medicaid.--The term ``Medicaid'' means the Medicaid
program under title XIX of the Social Security Act.
(3) Territory.--The term ``territory of the United States''
includes Puerto Rico, the Virgin Islands of the United States,
Guam, the Northern Mariana Islands, and American Samoa.
SEC. 152. REPORT ON EXCLUSION OF TERRITORIES FROM EXCHANGES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Health and Human Services shall
submit to Congress a report that details the adverse impacts in each
territory from the practical exclusion of the territories from the
provisions of part II or III of subtitle D of title I of the Patient
Protection and Affordable Care Act insofar as such provisions provide
for the establishment of an American Health Benefit Exchange or the
administration of a federally facilitated Exchange in each State and in
the District of Columbia for the purpose of making health insurance
more affordable and accessible for individuals and small businesses.
(b) Information in Report.--The report shall include information on
the following:
(1) An estimate of the total number of individuals residing
in each territory with health insurance coverage, and the total
number of individuals in each territory without health
insurance coverage.
(2) The number of health insurance issuers in each
territory and the health insurance coverage each such issuer
offers.
(3) An estimate of the number of individuals residing in
each territory who are denied premium and cost-sharing
assistance that would otherwise be available to them for
obtaining health insurance coverage through an Exchange if they
resided in one of the 50 States or in the District of Columbia.
(4) An estimate of the amount of Federal assistance
described in paragraph (3) that is not being made available to
residents of each territory.
(5) An estimate of the number of small employers in each
territory that would be eligible to purchase health insurance
coverage through a Small Business Health Options Program (SHOP)
Marketplace that would operate as part of an Exchange if the
employers were in one of the 50 States or in the District of
Columbia.
SEC. 153. ACCESS TO COVERAGE FOR INDIVIDUALS IN CERTAIN AREAS WITHOUT
ANY AVAILABLE EXCHANGE PLANS.
Part 2 of subtitle D of title I of the Patient Protection and
Affordable Care Act (42 U.S.C. 18031 et seq.) is amended by adding at
the end the following:
``SEC. 1314. ACCESS TO COVERAGE FOR INDIVIDUALS IN CERTAIN AREAS
WITHOUT ANY AVAILABLE EXCHANGE PLANS.
``(a) In General.--
``(1) Coverage through dc exchange.--Not later than 3
months after the date of enactment of this section, the
Secretary, in consultation with the Secretary of the Treasury
and the Director of the Office of Personnel Management, shall
establish a mechanism to ensure that, for any plan year
beginning on or after the date described in subsection (c), any
individual described in paragraph (2) has access to health
insurance coverage which is at least as broad as the coverage
available to Members of Congress and congressional staff (as
defined in section 1312(d)(3)(D)) through the Exchange
operating in the District of Columbia. Such individuals shall
be eligible for any premium tax credit under section 36B of the
Internal Revenue Code of 1986, reduced cost sharing under
section 1402, and advance determination and payment of such
credits or such reductions under section 1412 to be
administered by the Secretary, in consultation with the
Secretary of the Treasury and the Director of the Office of
Personnel Management. The District of Columbia, its residents,
and small businesses shall be held harmless from any increased
costs resulting from the enactment of this section.
``(2) Individual described.--An individual described in
this paragraph is any individual who--
``(A) is not eligible to enroll in an employer-
sponsored health plan (excluding such a plan that would
not be considered minimum essential coverage due to the
application of subparagraph (C) of section 36B(c)(2) of
the Internal Revenue Code of 1986 if such subparagraph
applied to such plan); and
``(B) is a bona fide resident of any possession of
the United States (as determined under section 937(a)
of such Code) in which the Secretary certifies that no
qualified health plan is offered through an Exchange
established under this title.
``(3) Possession of the united states.--For purposes of
this section, the term `possession of the United States' shall
include such possessions as are specified in section 937(a)(1)
of the Internal Revenue Code of 1986.
``(b) Treatment of Possessions.--
``(1) Payments to possessions.--
``(A) Mirror code possession.--The Secretary of the
Treasury shall periodically (but not less frequently
than annually) pay to each possession of the United
States with a mirror code tax system amounts equal to
the loss to that possession by reason of the
application of this section (determined without regard
to paragraph (2)) with respect to taxable years
beginning after the date described in subsection (c).
Such amounts shall be determined by the Secretary of
the Treasury based on information provided by the
government of the respective possession.
``(B) Other possessions.--The Secretary of the
Treasury shall periodically (but not less frequently
than annually) pay to each possession of the United
States which does not have a mirror code tax system
amounts estimated by the Secretary of the Treasury as
being equal to the aggregate benefits that would have
been provided to residents of such possession by reason
of the application of this section for any taxable
years beginning after the date described in subsection
(c) if a mirror code tax system had been in effect in
such possession. The preceding sentence shall not apply
with respect to any possession of the United States
unless such possession has a plan, which has been
approved by the Secretary of the Treasury, under which
such possession will promptly distribute such payments
to the residents of such possession.
``(2) Coordination with credit allowed against united
states income taxes.--No credit shall be allowed against United
States income taxes for any taxable year under section 36B of
the Internal Revenue Code of 1986 to any person--
``(A) to whom a credit is allowed against taxes
imposed by the possession by reason of this section
(determined without regard to this paragraph) for such
taxable year, or
``(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
``(3) Mirror code tax system.--For purposes of this
subsection, the term `mirror code tax system' means, with
respect to any possession of the United States, the income tax
system of such possession if the income tax liability of the
residents of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
``(4) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, or any similar rule
of law, the payments under this subsection shall be treated in
the same manner as a refund due from the credit allowed under
section 36B of the Internal Revenue Code of 1986.
``(c) Date Described.--The date described in this subsection is the
date on which the Secretary establishes the mechanism described in
subsection (a)(1).''.
TITLE II--INCLUSION OF THE TERRITORIES IN THE SUPPLEMENTAL NUTRITIONAL
ASSISTANCE PROGRAM
SEC. 201. PARTICIPATION AND TRANSITION OF PUERTO RICO, AMERICAN SAMOA,
AND THE NORTHERN MARIANA ISLANDS IN SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM.
(a) Definitions.--Section 3 of the Food and Nutrition Act of 2008
(7 U.S.C. 2012) is amended--
(1) in subsection (r), by inserting ``the Commonwealth of
Puerto Rico, American Samoa, the Commonwealth of the Northern
Mariana Islands,'' after ``Guam,''; and
(2) in subsection (u)(3), by inserting ``the Commonwealth
of Puerto Rico, American Samoa, the Commonwealth of the
Northern Mariana Islands,'' after ``Guam,''.
(b) Eligible Households.--Section 5 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2014) is amended--
(1) in subsection (b), in the first sentence, by inserting
``the Commonwealth of Puerto Rico, American Samoa, the
Commonwealth of the Northern Mariana Islands,'' after
``Guam,'';
(2) in subsection (c)(1), by striking ``and Guam,'' and
inserting ``Guam, the Commonwealth of Puerto Rico, American
Samoa, and the Commonwealth of the Northern Mariana Islands,'';
and
(3) in subsection (e)--
(A) in paragraph (1)(A), by inserting ``the
Commonwealth of Puerto Rico, American Samoa, the
Commonwealth of the Northern Mariana Islands,'' after
``Hawaii,'' each place it appears; and
(B) in paragraph (6)(B), in the matter preceding
clause (i), by inserting ``the Commonwealth of Puerto
Rico, American Samoa, the Commonwealth of the Northern
Mariana Islands,'' after ``Guam,''.
(c) Effective Date.--
(1) In general.--The amendments made by subsections (a) and
(b) shall be effective with respect to the Commonwealth of
Puerto Rico, American Samoa, and the Commonwealth of the
Northern Mariana Islands, as applicable, on the date described
in paragraph (2) if the Secretary of Agriculture submits to
Congress a certification under subsection (f)(2)(B) of section
19 of the Food and Nutrition Act of 2008 (7 U.S.C. 2028).
(2) Date described.--The date referred to in paragraph (1)
is, with respect to the Commonwealth of Puerto Rico, American
Samoa, and the Commonwealth of the Northern Mariana Islands,
the date established by the Commonwealth of Puerto Rico,
American Samoa, or the Commonwealth of the Northern Mariana
Islands, respectively, in the applicable plan of operation
submitted to the Secretary of Agriculture under subsection
(f)(1) of section 19 of the Food and Nutrition Act of 2008 (7
U.S.C. 2028).
(d) Transition of Puerto Rico, American Samoa, and the Northern
Mariana Islands to Supplemental Nutrition Assistance Program.--Section
19 of the Food and Nutrition Act of 2008 (7 U.S.C. 2028) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) the Commonwealth of the Northern Mariana
Islands.''; and
(2) by adding at the end the following:
``(f) Transition of Puerto Rico, American Samoa, and the Northern
Mariana Islands to Supplemental Nutrition Assistance Program.--
``(1) Definition of governmental entity.--In this
subsection, the term `governmental entity' means--
``(A) the Commonwealth of Puerto Rico;
``(B) American Samoa; and
``(C) the Commonwealth of the Northern Mariana
Islands.
``(2) Request for participation.--A governmental entity may
submit to the Secretary a request to participate in the
supplemental nutrition assistance program, which shall include
a plan of operation described in section 11(d), which shall
include the date on which the governmental entity intends to
begin participation in the program.
``(3) Certification by secretary.--
``(A) In general.--The Secretary shall certify a
governmental entity that submits a request under
paragraph (2) as qualified to participate in the
supplemental nutrition assistance program if the
Secretary--
``(i) approves the plan of operation
submitted with the request, in accordance with
this subsection; and
``(ii) approves the applications described
in paragraph (5) in accordance with that
paragraph.
``(B) Submission of certification to congress.--The
Secretary shall submit each certification under
subparagraph (A) to Congress.
``(C) Certification decision.--The Secretary shall
certify or not certify a governmental entity that
submits a request under paragraph (2) not later than 90
days after the date on which the Secretary receives the
request.
``(4) Determination of plan of operation.--
``(A) Approval.--The Secretary shall approve a plan
of operation submitted with a request under paragraph
(2) if the plan satisfies the requirements under this
Act.
``(B) Disapproval.--If the Secretary does not
approve a plan of operation submitted with a request
under paragraph (2), the Secretary shall provide to the
governmental entity a statement that describes each
requirement under this Act that is not satisfied by the
plan.
``(5) Retail food stores.--If the Secretary approves a plan
of operation under paragraph (4)(A) for a governmental entity,
the Secretary shall accept applications from retail food stores
located in that governmental entity to be authorized under
section 9 to participate in the supplemental nutrition
assistance program.
``(6) Puerto rico.--In the case of a request under
paragraph (2) by the Commonwealth of Puerto Rico,
notwithstanding subsection (g), the Secretary shall allow the
Commonwealth of Puerto Rico to continue to carry out under the
supplemental nutrition assistance program the Family Market
Program established pursuant to this section.
``(7) Temporary funding.--Any governmental entity that has
a request under paragraph (2) pending before the Secretary
(including a plan of operation pending under paragraph (4))
shall receive block grants under this section, in amounts
determined by the Secretary, until the date on which the
Secretary certifies the governmental entity.
``(8) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for fiscal year 2021, to
remain available until expended.
``(g) Technical Infrastructure Implementation.--
``(1) In general.--A governmental entity (as defined in
subsection (f)) may request from the Secretary a 1-time grant
to pay for the cost of the technology infrastructure necessary
to implement the supplemental nutrition assistance program,
including the cost of information technology, information
technology personnel, and training relating to program
implementation.
``(2) Application.--A governmental entity making a request
under paragraph (1) for a grant shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require, including--
``(A) a description of the costs to be paid for by
the grant; and
``(B) a plan for implementing the technology
infrastructure described in paragraph (1)--
``(i) within 1 year of receiving the grant;
and
``(ii) that is reasonably cost efficient,
as determined by the Secretary.
``(3) Determination.--
``(A) Time limit.--The Secretary shall approve or
deny an application submitted under paragraph (2) not
later than 90 days after the date on which the
application is submitted.
``(B) Denial.--If the Secretary denies an
application submitted under paragraph (2), the
governmental entity may amend the plan described in
subparagraph (B) of that paragraph, in coordination
with the Secretary, to resubmit to the Secretary for
approval.
``(4) Funding.--
``(A) In general.--There is appropriated to the
Secretary, out of funds in the Treasury not otherwise
appropriated, $5,000,000 to carry out this subsection,
to remain available until 3 years after the date of
enactment of this subsection.
``(B) Reversion of funds.--Any funds appropriated
to the Secretary under subparagraph (A) that remain
available by the date described in that subparagraph
shall revert to the Treasury.
``(h) Termination of Effectiveness.--
``(1) In general.--Subsections (a) through (e) shall cease
to be effective with respect to the Commonwealth of Puerto
Rico, American Samoa, and the Commonwealth of the Northern
Mariana Islands, as applicable, on the date described in
paragraph (2) if the Secretary submits to Congress a
certification under subsection (f)(3)(B) for that governmental
entity.
``(2) Date described.--The date referred to in paragraph
(1) is, with respect to the Commonwealth of Puerto Rico,
American Samoa, and the Commonwealth of the Northern Mariana
Islands, the date established by the Commonwealth of Puerto
Rico, American Samoa, or the Commonwealth of the Northern
Mariana Islands, respectively, in the applicable plan of
operation submitted to the Secretary under subsection
(f)(2).''.
TITLE III--EQUITABLE TREATMENT FOR PUERTO RICO AND THE VIRGIN ISLANDS
WITH RESPECT TO TAX CREDITS
SEC. 301. EQUITABLE TREATMENT FOR RESIDENTS OF PUERTO RICO AND THE
VIRGIN ISLANDS WITH RESPECT TO THE EARNED INCOME TAX
CREDIT AND THE CHILD TAX CREDIT.
(a) Puerto Rico Residents Eligible for Earned Income Tax Credit.--
(1) In general.--Section 32 of the Internal Revenue Code of
1986, as amended by section 9621(a) of the American Rescue Plan
Act of 2021 (Public Law 117-2), is amended by adding at the end
the following new subsection:
``(o) Residents of Puerto Rico.--
``(1) In general.--In the case of residents of Puerto
Rico--
``(A) the United States shall be treated as
including Puerto Rico for purposes of subsections
(c)(1)(A)(ii)(I) and (c)(3)(C),
``(B) subsection (c)(1)(D) shall not apply to
nonresident alien individuals who are residents of
Puerto Rico, and
``(C) adjusted gross income and gross income shall
be computed without regard to section 933 for purposes
of subsections (a)(2)(B) and (c)(2)(A)(i).
``(2) Limitation.--The credit allowed under this section by
reason of this subsection for any taxable year shall not exceed
the amount, determined under regulations or other guidance
promulgated by the Secretary, that a similarly situated
taxpayer would receive if residing in a State.''.
(2) Child tax credit not reduced.--Subclause (II) of
section 24(d)(1)(B)(ii) of such Code is amended by inserting
before the period ``(determined without regard to section 32(n)
in the case of residents of Puerto Rico)''.
(3) Effective date.--The amendments made this subsection
shall apply to taxable years beginning after December 31, 2020.
(b) Equitable Treatment for Residents of Puerto Rico With Respect
to the Refundable Portion of the Child Tax Credit.--
(1) In general.--Section 24(d)(1) of the Internal Revenue
Code of 1986 is amended by inserting ``or section 933'' after
``section 112''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to taxable years beginning after December 31, 2020.
(c) Treatment of Residents of the Virgin Islands.--
(1) In general.--The Secretary of the Treasury shall pay to
the government of the Virgin Islands amounts equal to the loss
to that possession by reason of the application of--
(A) section 32 of the Internal Revenue Code of 1986
(determined as if subsection (o) of such section, as
added by subsection (a), applied to bona fide residents
of that possession), and
(B) section 24(d) of such Code (determined as if
the amendment made by subsection (b) applied to bona
fide residents of that possession),
with respect to taxable years beginning after December 31,
2020. Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government of the
Virgin Islands.
(2) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments under
this subsection shall be treated in the same manner as a refund
due from the credit allowed under section 32 or 24 (by reason
of subsection (d) thereof), whichever is applicable, of the
Internal Revenue Code of 1986.
TITLE IV--LABOR EQUITY FOR PUERTO RICO
SEC. 401. MINIMUM WAGE FOR YOUNG EMPLOYEES IN PUERTO RICO.
Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C.
206(g)) is amended--
(1) by striking paragraph (2) and redesignating paragraphs
(3) through (5) as paragraphs (2) through (4), respectively;
(2) in paragraph (2), as so redesignated, by striking ``or
(2)''; and
(3) in paragraph (4), as so redesignated, by striking ``20
years, except'' and all that follows through the period and
inserting ``20 years.''.
SEC. 402. OVERTIME HOURS PROTECTIONS FOR WORKERS IN PUERTO RICO.
Section 404 of the Puerto Rico Oversight, Management, and Economic
Stability Act (48 U.S.C. 2193) is repealed.
TITLE V--EXTENSION OF SUPPLEMENTAL SECURITY INCOME (SSI) PROGRAM TO ALL
TERRITORIES
SEC. 501. EXTENSION OF SSI PROGRAM TO ALL TERRITORIES.
(a) Application of Social Security Amendments of 1972 Amendments
and Repeals to Territories.--
(1) In general.--Effective January 1, 2022, the amendments
made by sections 301 and 302 of the Social Security Amendments
of 1972 (Public Law 92-603) and the repeals made by section
303(a) of the Social Security Amendments of 1972 shall be
applicable in the case of Puerto Rico, Guam, the Virgin
Islands, and American Samoa.
(2) Conforming amendment.--Effective January 1, 2022,
section 303 of the Social Security Amendments of 1972 (Public
Law 92-603) is amended by striking subsection (b).
(b) Conforming Amendments.--
(1) Definition of state.--Section 1101(1) of the Social
Security Act (42 U.S.C. 1301(1)) is amended by striking the
fifth sentence and inserting the following: ``In the case of
supplemental security income under title XVI, such term also
includes the Virgin Islands, Guam, the Northern Mariana
Islands, and American Samoa.''.
(2) Definition of united states.--Section 1614(e) of the
Social Security Act (42 U.S.C. 1382c(e)) is amended by striking
``and the District of Columbia'' and inserting ``, the District
of Columbia, Puerto Rico, the Virgin Islands, Guam, the
Northern Mariana Islands, and American Samoa''.
(3) Effective date.--The amendments made by this subsection
shall take effect on January 1, 2022.
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