Minnesota MSA Empowerment Act of 2003

Minnesota MSA Empowerment Act of 2003 - Amends the Internal Revenue Code to allow a deduction for a Minnesota public employee, who is either receiving State of Minnesota retirement benefits or is a State of Minnesota employee, for amounts contributed to the individual's Minnesota public employee medical savings account.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1670 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1670

To amend the Internal Revenue Code of 1986 to establish a pilot program 
to encourage the use of medical savings accounts by public employees of 
      the State of Minnesota and political jurisdictions thereof.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 8, 2003

 Mr. Gutknecht (for himself, Mr. Sabo, Mr. Peterson of Minnesota, Mr. 
    Ramstad, Mr. Kennedy of Minnesota, Ms. McCollum, and Mr. Kline) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to establish a pilot program 
to encourage the use of medical savings accounts by public employees of 
      the State of Minnesota and political jurisdictions thereof.

    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 ``Minnesota MSA Empowerment Act of 
2003''.

SEC. 2. DEDUCTION FOR MINNESOTA PUBLIC EMPLOYEE MSA PILOT PROGRAM.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 223 as section 224 and 
by inserting after section 222 the following new section:

``SEC. 223. MINNESOTA PUBLIC EMPLOYEE MSAS.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a deduction an amount equal to the amount 
contributed during the taxable year by such individual to the Minnesota 
public employee MSA of such individual.
    ``(b) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means an individual who--
            ``(1) is in receipt of retirement benefits for the taxable 
        year from a retirement plan associated with the State of 
        Minnesota or a political subdivision thereof, or
            ``(2) is an employee of the State of Minnesota or a 
        political subdivision thereof.
    ``(c) Minnesota Public Employee MSA.--
            ``(1) In general.--The term `Minnesota public employee MSA' 
        means an Archer MSA which is created or organized exclusively 
        for the purpose of paying the qualified medical expenses of the 
        eligible individual and--
                    ``(A) which is designated as a Minnesota public 
                employee MSA, and
                    ``(B) with respect to which no contribution may be 
                made other than a contribution made by the eligible 
                individual or the employer of the eligible individual.
            ``(2) Archer msa; qualified medical expenses.--For purposes 
        of this section, the terms `Archer MSA' and `qualified medical 
        expenses' shall have the respective meanings given to such 
        terms by section 220(d).
    ``(d) Special Rules.--In applying section 220 to a Minnesota public 
employee MSA--
            ``(1) subsection (d)(1)(A)(ii) shall not apply, and
            ``(2) subsection (f)(3) shall be treated as including a 
        reference to this section.
    ``(e) Reports.--In the case of a Minnesota public employee MSA, the 
report under section 220(h)--
            ``(1) shall include the fair market value of the assets in 
        such Minnesota public employee MSA as of the close of each 
        calendar year, and
            ``(2) shall be furnished to the account holder--
                    ``(A) not later than January 31 of the calendar 
                year following the calendar year to which such reports 
                relate, and
                    ``(B) in such manner as the Secretary prescribes.
    ``(f) Coordination With Limitation on Number of Taxpayers Having 
Archer MSAs.--Subsection (i) of section 220 shall not apply to an 
individual with respect to a Minnesota public employee MSA, and 
Minnesota public employee MSAs shall not be taken into account in 
determining whether the numerical limitations under section 220(j) are 
exceeded.''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes.--Subsection 
(a) of section 62 is amended by inserting after paragraph (18) the 
following new item:
            ``(19) Minnesota public employee msas.--The deduction 
        allowed by section 223.''.
    (c) Tax on Excess Contributions.--Section 4973(d)(1) of such Code 
(relating to excess contributions to Archer MSAs) is amended by 
inserting ``or 223'' after ``220''.
    (d) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 223. Minnesota public employee 
                                        MSAs.
                              ``Sec. 224. Cross reference.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.
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