Bill Text:HTML Version, PDF Version
Bill Summary and Status
Rules Committee: H. Res. 52, Meeting Time: 5:00pm Tuesday 01/13,Text of the Bill as Introduced
H. Res. 52: Rule and Committee Report
Committee: Committee on Energy and Commerce
Committee Staff Contact: 5-2927
LEGISLATION AT A GLANCE:
H.R. 2 – Children’s Health Insurance Program Reauthorization Act of 2009
The Children’s Health Insurance Program (CHIP) currently provides health insurance for 7 million children. The initial ten-year authorization of the program expired in September 2007. Two bipartisan reauthorization bills to extend and improve the program were presented to the President, who vetoed them both. Congress was left with no choice but to pass a short-term extension of program, until April of 2009. This funding was only enough to maintain current coverage and was insufficient to allow states to reach the six million low-income children who today are uninsured but eligible for coverage.
The Children’s Health Insurance Program Reauthorization Act of 2009 is an updated version of the first bipartisan reauthorization bill vetoed by President Bush (H.R. 976). CHIPRA reauthorizes the CHIP program through Fiscal Year 2013, providing sufficient federal funds to enable states to maintain their current programs and extend them to 4 million additional uninsured low-income children. The major change from the vetoed bill is the inclusion of an option for states to eliminate the 5-year waiting period for low-income uninsured children who are legally in the U.S.
Investing in New Funding for CHIP. The bill provides a four and a half year reauthorization (through FY 2013) of the Children’s Health Insurance Program to strengthen the program’s financing, increase health insurance coverage for low-income children, and improve the quality of health care children receive.
Lowering the Number of Uninsured Low-Income Children. The legislation will provide health coverage to an additional 4 million low-income children who are currently uninsured and will ensure that the 7 million children currently covered by CHIP continue to receive health coverage.
Improving Access to Benefits for Children (Dental Coverage/Mental Health Parity). Quality dental coverage will be provided to all children enrolled in CHIP. Coverage under CHIP will include mental health services to be provided on par with medical and surgical benefits covered under CHIP.
Prioritizing children’s coverage. The legislation makes several improvements in eligibility for CHIP.
- Pregnant Women: New state option to cover pregnant women. Existing options to cover pregnant women through a state waiver or regulation are preserved.
- Parents: No new waivers to cover parents in the CHIP program will be allowed. States that have received waivers to cover low-income parents under CHIP will be allowed to transition parents into a separate block grant. The federal match for services to parents covered through CHIP will be reduced.
- Childless Adults: The current law prohibition on waivers for coverage of childless adults is retained. Childless adults who are currently covered will transition off CHIP. For states that have received CHIP waivers to cover childless adults, those waivers will be terminated after a one-year period. Instead, states would receive temporary Medicaid funding for already-enrolled adults and be allowed to apply for a Medicaid waiver for any further coverage.
- Legal Immigrant Children and Pregnant Women: The bill gives states the option to cover children and pregnant women lawfully residing in the U.S. and who otherwise meet state Medicaid or CHIP eligibility requirements without requiring those children and pregnant women to wait five years for needed health care. Under this provision, it would be left entirely to the states whether to provide coverage to legal immigrant children and pregnant women; nothing in the legislation mandates that a state institute this change.
Providing States with Stable Allotments and Incentives to Lower the Rate of Uninsured Low-Income Children. The legislation improves the CHIP financing structure, making it more stable and predictable. States will receive state-based allotments that are responsive to state demographic and national spending trends and allow additional up-front funding for states planning improvements. States that face a funding shortfall and meet enrollment goals will receive an adjustment payment to ensure that no eligible child is denied coverage or placed on a waiting list. The formula also sets in place new overall caps on federal funding to ensure the program’s expenditures do not exceed the amounts authorized. The bill provides incentives for states to lower the rate of uninsured children by enrolling eligible children in CHIP or Medicaid.
Improving Outreach Tools to Simplify and Streamline Enrollment of Eligible Children. The legislation provides $100 million in grants for new outreach activities to states, local governments, schools, community-based organizations, safety-net providers and others.
Improving the Quality of Health Care for Low-Income Children. The legislation establishes a new quality child health initiative to develop and implement quality measures and improve state reporting of quality data.
Improving Access to Private Coverage Options. The bill expands on current premium assistance options for states. It allows states to offer a premium assistance subsidy for qualified, cost-effective employer-sponsored coverage to children eligible for CHIP, who have access to such coverage. It also changes the federal rules governing employer-sponsored insurance to make it easier for states and employers to offer premium assistance programs.
Protecting Against Improper Payments for Illegal Immigrants. The bill does not allow federal funds to be used for benefits for individuals who are not lawfully residing in the U.S.
Meets Democrats’ Commitment to Paygo. The legislation is fully offset over the five and ten-year budget window by raising the federal tax on tobacco products and closing a loophole in federal law whereby physicians can refer patients to facilities they own for personal gain. This is consistent with the Democratic commitment to fiscal responsibility.
Organization Support:
AARP
Academy of General Dentistry
AFL-CIO
AFSCME
American Academy of Pediatric Dentistry
American Academy of Physician Assistants
American Association for Dental Research
American Cancer Society Cancer Action Network
American Dental Association
American Dental Education Association
American Dental Hygienists Association
American Diabetes Association
American Federation of Teachers
American Heart Association/American Stroke Association
American Hospital Association
American Lung Association
American Public Health Association
Asthma and Allergy Foundation of America
Bazelon Center for Mental Health Law
Business Roundtable
California State Association of Counties
Campaign for Tobacco-Free Kids
Catholic Charities USA
The Catholic Health Association of the United States
Children’s Dental Health Project
Child Welfare League of America
The Coalition on Human Needs
Consumers Union
Council of Women's and Infants' Specialty Hospitals
County Welfare Directors Association of California
Easter Seals
Eli Lilly and Company
The Episcopal Church
Evangelical Lutheran Church in America
Families USA
Family Voices
Fight Crime: Invest in Kids
Hispanic Dental Association
Intermountain Healthcare
Jewish Council for Public Affairs
Leadership Council on Civil Rights
March of Dimes
Medicaid Health Plans of America
Michigan’s Children
National Alliance on Mental Illness
National Association of Children’s Hospitals
National Association of Counties
National Association of School Nurses
National Conference of State Legislatures
National Council of Jewish Women
National Council of La Raza
National Dental Association
National Federation of Independent Businesses
National Governors Association
National Health Council
National Patient Advocate Foundation
NETWORK: A National Catholic Social Justice Lobby
PhRMA
PICO National Network
SEIU
TrueMajority.org
UnitedHealth Group
United Spinal Association
U.S. PIRG
Voices for Ohio Children
Administration Position:
(TBA)
Fact Sheets & Talking Points:
CHIPRA Bill Summary
H.R. 2, Bipartisan Children’s Health Bill, Office of the Speaker
Children’s Health Bill Already Meets Principles Laid Down by House GOP Leaders, Office of the Speaker
State by State Table of Children Currently Covered by SCHIP, Office of the Speaker
Press Releases, News Articles & Related Information:
(TBA)
Other Resources:
(TBA)
Bill Text: HTML Version, PDF Version
Bill Summary and Status
Rules Committee: Tuesday, January 13, 2009 at 5:00 p.m. in H-313 the Capitol, Meeting Time: 5:00pm Tuesday 01/13, Text of Bill as Introduced, Amendment Deadline: 3pm Tuesday 01/13
Committee: Committee on Financial Services
Committee Staff Contact: 5-4247
LEGISLATION AT A GLANCE:
Summary of TARP Reform and Accountability Act
This bill will amend the Troubled Assets Relief Program (TARP) provisions of the Emergency Economic Stabilization Act of 2008 (EESA) to strengthen accountability, close loopholes, increase transparency, and require Treasury to take significant steps on foreclosure mitigation. It further requires that Treasury act promptly to permit the smaller community financial institutions that have been shut out so far to participate on the same terms as the large institutions that have already received funds.
Title I - Modification to TARP and TARP Oversight
Reporting, Monitoring and Accountability
General - Treasury shall require any existing or future institution that receives funding under TARP to provide no less than quarterly public reporting on its use of the funding. Treasury may establish additional reporting and information requirements and must establish mechanisms to ensure appropriate use and compliance with all terms of use of TARP funds, as described below.
Insured depository institutions. Any insured depository institution that receives funding under TARP is required to report quarterly on the amount of any increased lending (or reduction in decrease of lending) and related activity attributable to such financial assistance. Where an institution cannot categorize effect of investment it shall report on lending and related activity during the period, with comparable prior period data. Treasury, in consultation with the bank regulatory agencies, shall establish standards for the required reporting (expanded version of LaTourette amendment from House auto bill)
Agreements on use of funds. In connection with any new receipt of TARP funds, Treasury is required to reach agreement with the institution and its primary federal regulator on how the funds are to be used and benchmarks the institution is required to meet so as to advance the purposes of the Act to strengthen the soundness of the financial system and the availability of credit to the economy.
Examinations. Examinations by a recipient institution’s primary federal regulator must specifically examine use of funds and compliance with any program requirements, including executive compensation and any specific agreement terms.
Acquisition of healthy institutions from TARP funds prohibited. Treasury shall require that any acquisition of another depository institution by an institution receiving TARP funds be conditioned on a finding by Treasury, in consultation with the relevant bank regulatory agencies, 1) that the acquisition reduces the risk to taxpayers or 2) that the transaction could have been accomplished without funds provided under the TARP.
Non-depository institutions - For recipients that are not insured depository institutions or that do not have a federal regulator, Treasury shall directly require any reporting and impose other terms no less stringent than those applicable to insured depository insitutions, and shall examine the institution, or may delegate such functions to the Federal Reserve.
Executive Compensation
All types of funding get same treatment. For any new receipt of TARP funds (except those by small financial institutions as defined below), applies the most stringent non-tax executive compensation restrictions (see note) from EESA across the board:
1) requires Treasury to prohibit incentives that encourage excessive risks,
2) provides for claw-back of compensation received based on materially inaccurate statements
3) prohibits all golden parachute payment for the duration of the investment
Stricter auto bill rules apply. Also applies the executive compensation requirements included in auto bill to any new receipt of TARP funds:
1) prohibits paying or accruing any bonus or incentive compensation to the 25 most highly compensated employees;
2) prohibits any compensation plan that would encourage manipulation of earnings to enhance compensation; and
3) requires divestment of private aircraft or leases.
Authority retroactive. Provides authority to Treasury to apply these expanded executive compensation provisions retroactively to existing recipients of direct assistance.
Removes de minimus exception. Prospectively removes de minimus exception under which institutions smaller than $300 million in assets are not subject to the golden parachute limitations in auction purchases of troubled assets. [Note: Existing tax-related executive compensation provisions under EESA Section 302 are not modified in this draft bill.]
Government board representation - Authorizes Treasury to have an observer at board or board committee meetings of recipient institutions.
Directive to make TARP funds available to smaller community institutions - Directs the Treasury to promptly make funds available for smaller community institutions, few of which have received funding to date. Depository institutions that have applied and are still waiting for action on their applications (C-corporations, privately-held institutions and community development financial institutions) or for which no funding terms have been issued (non-stock corporations, S-corporations, and mutually owned institutions) will not be penalized and may receive funding on terms comparable to institutions that received funds prior to this Act.
Changes to structure and authority of TARP board - The Financial Stability Oversight Board is expanded to include the Chairman of the FDIC and two additional members who are not currently federal employees, who shall be appointed by President and subject to Senate confirmation. The Board will have the authority to overturn policy decisions of the Treasury Secretary by a 2/3 vote.
Warrants - Unless otherwise specified, Treasury must obtain warrants equal to no less than 15% of any financing provided, and the $100M de minimus exclusion from the warrant requirement is removed.
No impediment to withdrawal - Subject to consultation with the appropriate bank regulatory agency, Treasury shall permit a recipient of TARP funds to repay those funds, whether or not the recipient has replaced those funds with private capital, as currently required by Treasury.
Clarifies status of capital injections - Clarifies that any provision of capital or other assistance to any institution is a purchase of troubled asset for the purpose of the Act.
Title II - Foreclosure relief
TARP Foreclosure Mitigation Plan - Use of the second $350 billion is conditioned on the use of up to $100 billion, but no less than $40 billion, for foreclosure mitigation, with plan required by March 15, 2009. By that date, the Secretary shall develop (subject to TARP Board approval) a comprehensive plan to prevent and mitigate foreclosures on residential mortgages. The Secretary shall begin committing TARP funds to implement the plan no later than April 1, 2009. The Secretary must certify to Congress by May 15, 2009, if he has not committed more than required minimum $40 billion.
Required Elements of Plan - The foreclosure mitigation plans must apply only to owner-occupied residences and shall leverage private capital to the maximum extent possible consistent with maximizing prevention of foreclosures. Treasury must use some combination of the following program alternatives:
1) guarantee program for qualifying loan modifications under a systematic plan, which may be delegated to the FDIC or other contractor
2) bringing costs of Hope for Homeowner loans down (beyond mandatory changes in Title V below), either through coverage of fees, purchasing H4H mortgages to ensure affordable rates, or both
3) program for loans to pay down second lien mortgages that are impeding a loan modification subject to any write-down by existing lender Treasury may require
4) Servicer incentives/assistance - payments to servicers in connection with implementation of qualifying loan modifications
5) Purchase of whole loans for the purpose of modifying or refinancing the loans (with authorization to delegate to FDIC)
Implementation of Plan - In consultation with the FDIC and HUD and with the approval of the Board, Treasury may determine that modifications to an initial plan are necessary to achieve the purposes of this act or that modifications to component programs of the plan are necessary to maximize prevention of foreclosure and minimize costs to the taxpayers.
Servicer authority for foreclosure mitigation - Provides a safe harbor from liability to servicers who engage in loan modifications, regardless of any provisions in a servising agreement, so long as the servicer acts in a manner consistent with the duty established in Homeowner Emergency Relief Act (maximize the net present value (NPV) of pooled mortgages to all investors as a whole; engage in loan mods for mortgages that are in default or for which default is reasonably foreseeable; the property is owner-occupied; the anticipated recovery on the mod would exceed, on an NPV basis, the anticipated recovery through foreclosure).
Requires persons who bring suit unsuccessfully against servicers for engaging in loan modifications under the Act to pay the servicers’ court costs and legal fees.
Requires Servicers who modify loans under the safe harbor to regularly report to the Treasury on the extent, scope and results of the servicer’s modification activities.
Report required by Congressional Oversight Panel - The Panel is required to report to Congress by July 1st on the actions taken by Treasury on foreclosure mitigation and the impact and effectiveness of the actions in minimizing foreclosures and minimizing costs to the taxpayers.
Title III - Automobile manufacturers - Clarifies and confirms Treasury authorization to provide assistance to automobile manufacturers under the TARP. With respect to the assistance already provided to domestic automobile industry, includes conditions of the House auto bill, including long-term restructuring requirements.
Clarifies Treasury’s authority to provide support to the financing arms of automakers for financing activities to ensure that they can continue to provide needed credit, including through dealer and other financing of consumer and business auto and other vehicle loans and dealer floor loans.
Title IV Clarification of authority under TARP for additional uses
Consumer loans - Clarifies Treasury’s authority to establish facilities to support the availabliity of consumer loans, such as student loans, and auto and other vehicle loans. Such support may include the purchase of asset-backed securities, directly or through the Federal Reserve.
Commercial Real Estate Loans and MBS - Clarifies Treasury’s authority to provide support for commercial real estate loans and mortgage-backed securities.
Municipal securities - Clarifies Treasury’s authority to provide support to issuers of municipal securities, including through the direct purchase of municipal securities or the provision of credit enhancements in connection with any Federal Reserve facility to finance the purchase of municipal securities.
Title V - Hope for Homeowners Improvements
Eliminates 3% upfront premium
Reduces 1.5% annual premium to a range between .55% and .75%, based on risk-based pricing (also makes technical fix to permit discontinuation of fees when loan balance drops below certain levels, consistent with normal FHA policy)
Raises maximum loan to value (LTV) from 90% to 93% for borrowers above a 31% mortgage debt to income (DTI) ratio or above a 43% ratio
Eliminates government profit sharing of appreciation over market value of home at time of refinancing Retains government declining share (from 100% to 50% after five years) of equity created by the refinancing to be paid at time of sale or refinancing as an exit fee
Authorizes payments to servicers participating in successful refinancings
Administrative simplification: (a) eliminates borrower certifications regarding not intentionally defaulting on any debt, (b) eliminates special requirement to collect 2 years of tax returns, (c) eliminates originator liability for first payment default, (d) eliminates March 1, 2008 31% DTI test, (e) eliminates prohibition against taking out future second loans, (f) requires Board to make documents, forms, and procedures conform to those under normal FHA loans to the maximum extent possible consistent with statutory requirements.
Title VI - Home Buyer Stimulus
Requires Treasury to develop a program, outside of the TARP, to stimulate demand for home purchases and clear inventory of properties, including through ensuring the availability of affordable mortgages rates for qualified home buyers. In developing such program, Treasury may take into consideration impact on areas with highest inventories of foreclosed properties. The program will be executed through the purchase of mortgages and MBS using funding under HERA.
In developing such program, Treasury shall provide mechanisms to ensure availability of such reduced rate loans through financial institutions that act as either originators or as portfolio lenders.
Treasury shall make the affordable rates available under this program available in connection with Hope for Homeowner refinancing program.
Title VII - Permanent Increase in FDIC and NCUA Deposit Insurance Limits
Makes permanent the increase in deposit insurance coverage for banks and credit unions to $250,000, which was enacted temporarily as part of the Emergency Economic Stabilization Act and is scheduled to sunset on December 31, 2009, and includes an inflation adjustment provision for future coverage.
Extends the time limit for an FDIC Restoration Plan to rebuild the reserve ratio of the Deposit Insurance Fund from 5 years to 8 years.
Increases the FDIC's borrowing authority from $30 billion to $100 billion and allows the FDIC to obtain sums in excess of $100 billion upon the FDIC's written request and the Secretary of the Treasury's approval on the basis that the additional amounts are necessary.
Allows FDIC to charge systemic risk special assessments by rulemaking, on both insured depository institutions and depository institution holding companies. For holding company assessments, the concurrence of the Secretary of the Treasury would be required.
Organization Support:
(TBA)
Administration Position:
(TBA)
Fact Sheets & Talking Points:
Summary of TARP Reform and Accountability Act, Financial Services Committee
TARP Oversight Reports, Financial Services Committee
TARP Oversight,Office of the Speaker
Press Releases, News Articles & Related Information:
Pelosi Statement in Support of Chairman Frank’s Legislation to Strengthen Oversight of TARP, Office of the Speaker
Frank Introduces TARP Reform and Accountability Legislation, Financial Services Committee
Other Resources:
(TBA)
