S.Amdt. 3220

SA 3220. Mr. RISCH submitted an amendment intended to be proposed to
amendment SA 2786 proposed by Mr. Reid (for himself, Mr. Baucus, Mr.
Dodd, and Mr. Harkin) to the bill H.R. 3590, to amend the Internal
Revenue Code of 1986 to modify the first-time homebuyers credit in the
case of members of the Armed Forces and certain other Federal
employees, and for other purposes; which was ordered to lie on the
table; as follows:

Beginning on page 182, strike line 20 and all that follows
through line 4 on page 183, and insert the following:
(3) State option to opt-out of new federal program and
requirements.--
(A) In general.--In accordance with this paragraph, a State
may elect for the provisions of this Act to not apply within
such State to the extent that such provisions violate the
protections described in subparagraph (B).
(B) Effect of opt-out.--In the case of a State that makes
an election under subparagraph (A)--
(i) the residents of such State shall not be subject to any
requirement under this Act, including tax provisions or
penalties, that would otherwise require such residents to
purchase health insurance;
(ii) the employers located in such State shall not be
subject to any requirement under this Act, including tax
provisions or penalties, that would otherwise require such
employers to provide health insurance to their employees or
make contributions relating to health insurance;
(iii) the residents of such State shall not be prohibited
under this Act from receiving health care services from any
provider of health care services under terms and conditions
subject to the laws of such State and mutually acceptable to
the patient and the provider;
(iv) the residents of such State shall not be prohibited
under this Act from entering into a contract subject to the
laws of such State

[[Page S13260]]

with any group health plan, health insurance issuer, or other
business, for the provision of, or payment to other parties
for, health care services;
(v) the eligibility of residents of such State for any
program operated by or funded wholly or partly by the Federal
Government shall not be adversely affected as a result of
having received services in a manner consistent with clauses
(iii) and (iv);
(vi) the health care providers within such State shall not
be denied participation in or payment from a Federal program
for which they would otherwise be eligible as a result of
having provided services in a manner consistent with clauses
(iii) and (iv); and
(vii) States that elect to opt out shall not be subject to
the taxes and fees enumerated in the amendments made by title
IX.
(C) Process.--
(i) In general.--A State shall be treated as making an
election under subparagraph (a) if--

(I) the Governor of such State provides timely and
appropriate notice to the Secretary of Health and Human
Services notifying the Secretary that the State is making
such election; or
(II) such State enacts a law making such election.

Such notice shall be provided at least 180 days before the
election is to become effective.
(ii) Revocation of election.--A State shall be treated as
revoking an election made by the State under subparagraph (A)
if--

(I) the Governor of such State provides timely and
appropriate notice to the Secretary of Health and Human
Services of such revocation; or
(II) such State repeals a law described in subparagraph
(i)(II).

Such notice of revocation shall be provided at least 180 days
before the date the revocation is to become effective. As of
such effective date the State and the residents, employers,
and health insurance issuers of such State, shall be treated
as if the election under subparagraph (A) had not been made.
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