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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-784
              5063, ARMED FORCES TAX FAIRNESS ACT OF 2002


 November 13, 2002.--Referred to the House Calendar and ordered to be 


    Mr. Linder, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 609]

    The Committee on Rules, having had under consideration 
House Resolution 609, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 


    The resolution provides for a single motion offered by the 
chairman of the Committee on Ways and Means or his designee to 
take from the Speaker's table the bill H.R. 5063, the Armed 
Forces Tax Fairness Act of 2002, and concur in each of the 
Senate amendments with the respective amendment printed in this 
    The rule waives all points of order against consideration 
of the motion. The rule provides one hour of debate in the 
House equally divided and controlled by the chairman and 
ranking minority member of the Committee on Ways and Means. 
Finally, the rule provides that the previous question shall be 
considered as ordered on the motion to final adoption without 
intervening motion or demand for division of the question.
    The waiver of all points of order applies to the motion and 
therefore applies to the amendment printed in this report as 
part of the motion.


(Summary provided by sponsor)

    Welfare: Provides for a full extension through March 31, 
2003 of current funding and program rules in the TANF, child 
care, abstinence education, and transitional medical assistance 
     The CR that passed the House on November 13, 2002 
extends TANF and related program funding and rules only from 
December 31, 2002 through January 11, 2003. This 11-day 
extension makes little programmatic sense for TANF and related 
programs that provide funds to States on a quarterly basis, and 
whose rules should extend for an entire quarter.
     There is precedent for this quarterly extension 
for welfare programs. The very first CR approved this fall 
(P.L. 107-229, signed September 30, 2002) extended TANF and 
related programs through December 31, 2002--all of the first 
quarter of FY 2003--while extending all other programs through 
October 4, 2002.
    Unemployment: Extends Federally-funded temporary 
unemployment benefits of current recipients and those in 
certain high unemployment States through January 2003.
     Extends Federally funded unemployment benefits for 
up to 5 added weeks per individual by removing the current 
December 28, 2002 cutoff on benefits. This change will provide 
additional weeks of benefits to more than 800,000 individuals 
nationwide, including in all 50 States.
     Allows for the continued availability of special 
extended benefits in certain high unemployment States through 
February 1, 2003.
     Preliminary CBO estimate of cost: $0.9B in FY2003, 
$0.9B over 5 years, $0.4B over 10 years.
    Medicare: Clarifies that the Administration may not be sued 
for any redeterminations for prior fiscal years.
     Clarifies that the Administration may not be sued 
about its calculation of physician payments. The provision has 
a zero score from the Congressional Budget Office.


  Strike all after the enacting clause and insert the 

  Section 1. Section 114 of Public Law 107-229 is amended by 
striking ``the date specified in section 107(c) of this joint 
resolution'' and inserting ``March 31, 2003''.
  Sec. 2. (a) In General.--The Temporary Extended Unemployment 
Compensation Act of 2002 (26 U.S.C. 3304 note) is amended by 
adding at the end the following:


  ``(a) In General.--Notwithstanding section 208(2), an 
agreement entered into under this title shall apply to weeks of 
unemployment beginning after December 28, 2002, and ending 
before February 2, 2003, but only as provided in this section 
and section 211.
  ``(b) New Account.--If, at any time during the period 
described in subsection (a), an individual's State is in an 
extended benefit period (as determined under section 
203(c)(2)), and such individual meets the requirements of 
section 202(b)-(c), such State shall establish an account under 
this section for such individual (to be available beginning 
with the individual's first week of unemployment within such 
period as to which both of those conditions are met) in an 
amount equal to the amount determined in accordance with 
section 203(b).
  ``(c) Eligibility for Payments.--In the case of an individual 
for whom an account is established under subsection (b)--
          ``(1) temporary extended unemployment compensation 
        shall be payable for any week of unemployment described 
        in subsection (a) for which such individual would 
        qualify if the criteria in effect for the week ending 
        on December 28, 2002, were applied (and section 
        202(d)(3) were disregarded); and
          ``(2) any temporary extended unemployment 
        compensation payable to an individual under this 
        section shall be payable only out of the account 
        established for such individual under subsection (b).
  ``(d) Ineligible Individuals.--Notwithstanding any other 
provision of this section, no account under subsection (b) 
shall be established for the benefit of an individual for whom 
an account was established under section 203, if--
          ``(1) such account was at any time augmented in the 
        manner described in section 203(c); and
          ``(2) such account (as so augmented)--
                  ``(A) was exhausted before December 29, 2002; 
                  ``(B) remains available, for weeks beginning 
                on or after December 29, 2002, by virtue of 
                section 211.


  ``(a) In General.--In the case of an individual who is 
receiving temporary extended unemployment compensation for a 
week of unemployment ending on December 28, 2002, the 
provisions of this title and of any agreement then in effect 
shall be applied in a manner such that any amounts remaining in 
an account established for such individual under section 203 as 
of that date shall continue to remain available to the same 
extent and in the same manner as if section 208(2) had been 
amended by striking `January 1' and inserting `February 2'.
  ``(b) Coordination Provision.--After any amounts (in an 
account established under section 203) remaining available for 
the benefit of an individual by virtue of subsection (a) are 
exhausted, section 210 shall apply to such individual in 
accordance with its terms.
  ``(c) Rule of Construction.--Nothing in this title shall be 
considered to permit or require the payment of any amount, out 
of an account established under section 203 or 210, for any 
week of unemployment ending after February 1, 2003.''.
  (b) Clerical Amendment.--The table of contents of Public Law 
107-147 is amended by inserting after the item relating to 
section 209 the following:

``210. Extension of program in high unemployment States.
``211. Phase-out provisions.''.

  Sec. 3. Section 1848(i)(1)(C) of the Social Security Act (42 
U.S.C. 1395w-4(i)(1)(C)) is amended to read as follows:
                  ``(C) the determination of conversion factors 
                under subsection (d), including without 
                limitation a prospective redetermination of the 
                sustainable growth rates for any or all 
                previous fiscal years,''.

  Amend the title so as to read as follows: ``An Act to make 
technical amendments to the Social Security Act and related