SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children's Health Coverage 
Improvement Act of 1999''.

SEC. 2. REQUIRING OFFER OF CHILDREN'S-ONLY COVERAGE UNDER GROUP HEALTH 
              PLANS.

    (a) In General.--Part 7 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 is amended by inserting after 
section 713 the following new section:

``SEC. 714. PROVIDING OPTION OF CHILDREN'S ONLY COVERAGE.

    ``(a) Requirement for Option.--Each group health plan shall 
provide, as at least one benefit option under the plan, health benefits 
coverage for qualified children (as defined in subsection (b)).
    ``(b) Qualified Child Defined.--For purposes of this section, the 
term `qualified child' means, with respect to a group health plan, an 
individual who is under 19 years of age and is a dependent of a 
participant who is enrolled for benefits under such plan. A group 
health plan may treat other individuals as qualified children under the 
plan.
    ``(c) Terms of Option.--
            ``(1) Timing.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                option under subsection (a) by a group health plan 
                shall be made at such times as the person (of whom the 
                qualified child is a dependent) is permitted to elect 
                coverage under the plan.
                    ``(B) Transition.--A group health plan shall also 
                make such offer available at the time this section 
                first becomes effective.
            ``(2) May require enrollment of all qualified children in a 
        family.--The offer under this section, made with respect to an 
        individual who is the qualified child of a participant, may be 
        conditioned upon the election of the option by all qualified 
        children of the participant.''.
    (b) Clerical Amendment.--The table of contents in section 1 of such 
Act is amended by inserting after the item relating to section 713 the 
following new item:

``Sec. 714. Providing option of children's only coverage.''.

SEC. 3. PROVISIONS OF CHILDREN-ONLY COVERAGE UNDER COBRA CONTINUATION 
              PROVISIONS.

    (a) In General.--Part 6 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 is amended by inserting after 
section 609 the following new section:

``SEC. 610. SPECIAL RULES FOR CHILDREN ONLY COVERAGE.

    ``In carrying out sections 601 through 608, the following 
additional rules shall apply:
            ``(1) The term `continuation coverage' shall include, in 
        addition to the coverage otherwise required, at least one 
        option of benefits coverage that meets the terms and conditions 
        of section 714.
            ``(2) The premium for the continuation coverage described 
        in paragraph (1) shall be established only with regard to such 
        coverage.
            ``(3) The election of continuation coverage described in 
        paragraph (1) shall be available with respect to qualified 
        beneficiaries who previously had such coverage before the date 
        of the qualifying event or were covered under family coverage 
        before such date.''.
    (b) Clerical Amendment.--The table of contents in section 1 of such 
Act is amended by inserting after the item relating to section 609 the 
following new item:

``Sec. 610. Special rules for children only coverage.

SEC. 4. EFFECTIVE DATE.

    (a) In General.--Except as provided in this section, the amendments 
made by this Act shall apply with respect to group health plans for 
plan years beginning after the first day of the first month that begins 
more than 9 months after the date of the enactment of this Act.
    (b) Special Rule for Collective Bargaining Agreements.--In the case 
of a group health plan maintained pursuant to 1 or more collective 
bargaining agreements between employee representatives and one or more 
employers ratified before the date of the enactment of this Act, 
section 714 of the Employee Retirement Income Security Act of 1974 
shall not apply to plan years beginning before the later of--
            (1) the date on which the last of the collective bargaining 
        agreements relating to the plan terminates (determined without 
        regard to any extension thereof agreed to after the date of the 
        enactment of this Act), or
            (2) the effective date provided under subsection (a),
For purposes of paragraph (1), any plan amendment made pursuant to a 
collective bargaining agreement relating to the plan which amends the 
plan solely to conform to any requirement of such part shall not be 
treated as a termination of such collective bargaining agreement.
    (c) Timely Regulations.--The Secretary of Labor shall first issue 
by not later than 3 months before the effective date provided under 
subsection (a), such regulations as may be necessary to carry out the 
amendments made by this Act.
Children's Health Coverage Improvement Act of 1999 - Amends the Employee Retirement Income Security Act of 1974 to require group health plans to offer children-only  coverage to dependents of participants under plans. 
Provides for continuation of coverage to add special rules for children-only coverage.
Children's Health Coverage Improvement Act of 1999