To amend the Internal Revenue Code of 1986 to allow employees of county and local governments and of schools to maintain medical savings accounts.

January 29, 2003

Mr. SENSENBRENNER introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow employees of county and local governments and of schools to maintain medical savings accounts.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Healthcare Empowerment for Local Personnel and Teachers Act of 2003' or the `HELP Teachers Act of 2003'.

SEC. 2. COUNTY AND LOCAL GOVERNMENT EMPLOYEES PERMITTED TO MAINTAIN MEDICAL SAVINGS ACCOUNTS.

(a) IN GENERAL- Section 220 of the Internal Revenue Code of 1986 is amended by striking `small employer' each place it appears (other than in subsection (c)(4)) and inserting `eligible employer'.

(b) ELIGIBLE EMPLOYER- Subsection (c) of section 220 of such Code is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:

`(4) ELIGIBLE EMPLOYER- The term `eligible employer' means--

`(A) any small employer,

`(B) any employer who is a county or local government, and

`(C) any employer who is an educational organization which is described in section 170(b)(1)(A)(ii) and which provides education in any of grades K-12.'

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2003.

END