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(2) RURAL ELECTRIC COOPERATIVE PLAN DEFINED.—Subsection

(k) of section 401 is amended by adding at the end thereof the following new paragraph: "(6) RURAL ELECTRIC COOPERATIVE PLAN.—For purposes of this subsection, the term 'rural electric cooperative plan means any pension plan— "(A) which is a defined contribution plan (as defined in section 414(i)), and "(B) which is established and maintained by a rural electric cooperative (as defined in section 457(d)(9)(B)) or a national association of such rural electric cooperatives." (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to plan years beginning after December 31, 1984. (h) CLARIFICATION OF DEFINITION OF NEWLY DISCOVERED OIL.—

(1) IN GENERAL.—Paragraph (2) of section 4991(e) (defining newly discovered oil) is amended by adding at the end thereof the following new sentences: "Such term includes any production from a property which did not produce oil in commercial quantities during calendar year 1978. For purposes of the preceding sentence, a property shall not be treated as producing oil in commercial quantities during calendar year 1978 if, during calendar year 1978 (A) the aggregate amount of oil produced from such property did not exceed 2,200 barrels (whether or not such oil was sold), and (B) no well on such property was in production for a total of more than 72 hours." (2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall apply to oil removed after February 29, 1980. (i) MEDICINAL ALCOHOL, ETC. BROUGHT INTO THE UNITED STATES FROM PUERTO RICO OR THE VIRGIN ISLANDS ELIGIBLE FOR DRAWBACK.—

(1) Section 7652 (relating to shipments to the United States) is amended by adding at the end thereof the following new subsection: "(g) DRAWBACK FOR MEDICINAL ALCOHOL, ETC.—In the case of medicines, medicinal preparations, food products, flavors, or flavoring extracts containing distilled spirits, which are unfit for beverage purposes and which are brought into the United States from Puerto Rico or the Virgin Islands— "(1) subpart F of part II of subchapter A of chapter 51 shall be applied as if— "(A) the use and tax determination described in section 5131(a) had occurred in the United States by a United States person at the time the article is brought into the United States, and "(B) the rate of tax were the rate applicable under subsection (f) of this section, and "(2) no amount shall be covered into the treasuries of Puerto Rico or the Virgin Islands." (2) The amendment made by paragraph (1) shall apply to articles brought into the United States after the date of the enactment of this Act. (3)(A) Section 7652 of the Internal Revenue Code of 1954 (other than subsection (f) thereof) shall not prevent the payment to Puerto Rico or the Virgin Islands of amounts with respect to medicines, medicinal preparations, food products, flavors, or flavoring extracts containing distilled spirits, which are unfit

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 100 STAT. 2908

PUBLIC LAW 99-514—OCT. 22, 1986 for beverage purposes and which are brought into the United States from Puerto Rico or the Virgin Islands on or before the date of the enactment of this Act. (B) With respect to articles brought into the United States after September 27, 1985, subparagraph (A) shall apply only if the Secretary of the Treasury or his delegate is satisfied that the amounts paid to Puerto Rico or the Virgin Islands under subparagraph (A) are being repaid to the proper persons who used the distilled spirits in such articles.

0) ALLOWANCE OF INVESTMENT CREDIT TO ELIGIBLE SECTION 50 Kd* ORGANIZATIONS.—

(1) IN GENERAL.—Section 48 (relating to definitions and speciaJ rules) is amended by redesignating subsection (r) as subsection (s) and by inserting after subsection (q) the following new subsection: "(r) CERTAIN SECTION 501(d) ORGANIZATIONS.— "(1) IN GENERAL.—In the case of eligible section 501(d) organizations— "(A) any business engeiged in by such organization for the common benefit of its members and the taxable income from which is included in the gross income of its members shall be treated as an unrelated business for purposes of paragraph (4) of subsection (a), "(B) the qualified investment for each taxable year with respect to such business shall be apportioned pro rata among such members in the same manner as the taxable income of such organization, and "(C) any individual to whom any investment has been apportioned under subparagraph (B) shall be treated for purposes of this subpart (other than section 47) as the taxpayer with respect to such investment, and such investment shall not 0)y reason of such apportionment) lose its character as an investment in new section 38 property or used section 38 property, as the case may be. "(2)

LIMITATION ON USED SECTION 38 PROPERTY APPLIED AT

ORGANIZATION LEVEL.—The limitetion under subparagraph (A) of subsection (c)(2) shall apply with respect to the section 501(d) organization. property for which credit was allowed under section 38 by reason of this subsection— "(A) the section 501(d) organization shall be treated as the taxpayer to which the credit under section 38 was allowed, "(B) the amount of such credit allowed with respect to the property shall be treated as the amount which would have been allowed to the section 501(d) organization were such credit allowable to such organization, "(C) subparagraph (D) of section 47(a)(5) shall not apply, and "(D) the amount of the increase in tax under section 47 for any taxable year with respect to property to which this subsection applies shall be allocated pro rata among the members of such organization in the same manner as such organization's taxable income for such year is allocated among such members. "(4) No INVESTMENT CREDIT ALLOWED TO MEMBER IF MEMBER CLAIMS OTHER INVESTMENT CREDIT.—No Credit shall be allowed
 * (3) RECAPTURE.—For purposes of applying section 47 to any

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to an individual by reason of this subsection if such individual claims a credit under section 38 without regard to this subsection. The amount of the credit not allowed by reason of the preceding sentence shall not be allowed to any other person. "(5) ELIGIBLE SECTION 501 (d) ORGANIZATION.—For purposes of

this subsection, the term 'eligible section 501(d) organization' means any organization— "(A) which elects to be treated as an organization described in section 501(d) and which is exempt from tax under section 501(a), and "(B) which does not provide a substantially higher standard of living for any person or persons than it does for the majority of the members of the community." (2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to periods after December 31, 1978 (under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1954), in taxable years ending after such date. (3) SPECIAL RULE.—If refund or credit of any overpayment of tax resulting from the application of this subsection is prevented at any time before the close of the date which is 1 year after the date of the enactment of this Act by operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to the application of the amendments made by this subsection) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period. (k) AMENDMENT RELATED TO MUTUAL SAVINGS BANKS DESCRIBED

IN SECTION 59103).—

(1) IN GENERAL.—Subparagraph (B) of section 501(c)(14) (relating to list of tax-exempt organizations) is amended— (A) by striking out "or" at the end of clause (ii), (B) by striking out the period at the end of clause (iii) and inserting in lieu thereof a comma and "or", and (C) by inserting at the end thereof the following new clause: "(iv) mutual savings banks described in section 5910t))". (2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to taxable years ending after August 13, 1981. (1) AMENDMENT TO SECTION 368(a)(2)(F).— (1) IN GENERAL.—Clause (ii) of section 368(a)(2)(F) (relating to certain transactions involving 2 or more investment companies) is amended to read as follows: "(ii) A corporation meets the requirements of this clause if not more than 25 percent of the value of its total assets is invested in the stock and securities of any one issuer (other than stock in a regulated investment company, a real estate investment trust, or an investment company which meets the requirements of this clause (ii)), and not more than 50 percent of the value of its total assets is invested in the stock and securities of 5 or fewer issuers (other than stock in a regulated investment company, a real estate investment trust, or an investment company which meets the requirements of this clause (ii)). For purposes of this clause, all members of a controlled group of corpora-

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PUBLIC LAW 99-514—OCT. 22, 1986 tions (within the meaning of section 1563(a)) shall be treated as one issuer." (2) EFFECTIVE DATE.—The amendment made by this subsection shall apply as if included in section 2131 of the Tax Reform Act of 1976. (m)

AMENDMENTS RELATING TO SUBCHAPTER S CORPORATIONS.— (1) IN GENERAL.—

(A) Section 1361(d)(3) (relating to qualified subchapter S trusts) is amended by adding at the end thereof the following new sentence: "A substantially separate and independent share of a trust treated as a separate trust under section 663(c) shall be treated as a separate trust for purposes of this subsection and subsection (c)." (B) Section 1368(e)(l) (relating to definitions and special rules) is amended by striking out the period at the end of subparagraph (A) and inserting in lieu thereof "and no adjustment shall be made for Federal taxes attributable to any taxable year in which the corporation was a C corporation." (2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to taxable years beginning after December 31, 1982. (n) AMENDMENT RELATING TO SECTION 2523.— (1) IN GENERAL.—Subparagraph (A) of section 2523(fK4) (relating to election with respect to life estate for donee spouse) is amended to read as follows: "(A) TIME AND MANNER.—An election under this subsection with respect to any property shall be made on or before the date prescribed by section 6075(b) for filing a gift tsix return with respect to the transfer (determined without regard to section 6019(2)) and shall be made in such manner as the Secretary shall by regulations prescribe." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to transfers made after December 31, 1985. (3) SPECIAL RULE FOR CERTAIN TRANSFERS I N OCTOBER 1984.—

An election under section 2523(f) of the Internal Revenue (Dode of 1954 with respect to an interest in property which— (A) was transferred during October 1984, and (B) was transferred pursuant to a trust instrument stating that the grantor's intention was that the property of the trust would constitute qualified terminable interest property as to which a Federal gift tax marital deduction would be allowed upon the grantor's election, shall be made on the return of tax imposed by section 2501 of such Code for the calendar year 1984 which is filed on or before the due date of such return or, if a timely return is not filed, on the first such return filed after the due date of such return and before December 31, 1986. (o) AMENDMENTS RELATING TO SECTION 4994.— (1) For purposes of section 49910t)), a "qualified charitable interest" shall include an economic interest in crude oil held by the Episcopal Royalty Company, an entity created in 1961 as a subsidiary of the Protestant Episcopal Church Foundation of the Diocese of Oklahoma. (2) The amendment made by this subsection shall apply to oil removed after February 29, 1980.

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(p) AMENDMENT RELATED TO SECTION 252 OF THE ECONOMIC RECOV-

ERY TAX ACT OF 1981.— (1) Notwithstanding subsection (c) of section 252 of the BIconomic Recovery Tax Act of 1981, the amendment made by subsection (a) of such section 252 (and the provisions of subsection (b) of such section 252) shall apply to any transfer of stock to any person if— (A) such transfer occurred in November or December of 1973 and was pursuant to the exercise of an option granted in November or December of 1971, (B) in December 1973 the corporation granting the option was acquired by another corporation in a transaction qualifying as a reorganization under section 368 of the Internal Revenue Code of 1954, (C) the fair market value (as of July 1, 1974) of the stock received by such person in the reorganization in exchange for the stock transferred to him pursuant to the exercise of such option was less than 50 percent of the fair market value of the stock so received (as of December 4, 1973), (D) in 1975 or 1976 such person sold substantially all of the stock received in such reorganization, and (E) such person makes an election under this section at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe. (2) LIMITATION ON AMOUNT OF BENEFIT.—Subsection (a) shall not apply to transfers with respect to any employee to the extent that the application of subsection (a) with respect to such employee would (but for this paragraph) result in a reduction in liability for income tax with respect to such employee for all taxable years in excess of $100,000 (determined without regard to any interest). (3) STATUTE OF LIMITATIONS.—

(A) OVERPAYMENTS.—If refund or credit of any overpayment of tax resulting from the application of subsection (a) is prevented on the date of the enactment of this Act (or at any time within 6 months after such date of enactment) by the operation of any law or rule of law, refund or credit of such overpayment (to the extent attributable to the application of subsection (a)) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 6month period. (B) DEFICIENCIES.—If the assessment of any deficiency of tax resulting from the application of subsection (a) is prevented on the date of the enactment of this Act (or at any time within 6 months after such date of enactment) by the operation of any law or rule of law, assessment of such deficiency (to the extent attributable to the application of subsection (a)) may, nevertheless, be made within such 6month period. (q) TREATMENT OF CERTAIN SELF-INSURED WORKERS' COMPENSATION FUNDS.— (1) MORATORIUM ON COLLECTION ACTIVITIES.—During the

period beginning on the date of the enactment of this Act and ending on August 16, 1987, the Secretary of the Treasury or his delegate—

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PUBLIC LAW 99-514—OCT. 22, 1986 (A) shall suspend any pending audit of any self-insured workers' compensation fund where the audit involves the issue of whether such fund is a mutual insurance company, (B) shall not initiate any audit of any such fund involving such issue, and (C) shall take no steps to collect from such fund any underpayment, interest, or penalty involving such issue. (2) SUSPENSION OF RUNNING OF INTEREST.—No interest shall be payable under chapter 67 of the Internal Revenue Code of 1986 on any underpayment by a self-insured workers' compensation fund involving such issue for the period beginning on August 16, 1986, and ending on August 16, 1987. (3) ADDITIONAL TIME TO FILE TAX COURT PROCEEDING.—If the

period during which a petition involving such issue could have been filed with the TEIX Court by any self-insured workers' compensation fund had not expired before August 16, 1986, such period shall not expire before August 16, 1987. (4) SELF-INSURED WORKERS' COMPENSATION FUND.—For purposes of this subsection, the term "self-insured workers' compensation fund" means any self-insured workers' compensation fund established pursuant to applicable State law regulating self-insured workers' compensation funds. (r) RETURNS OF ALCOHOL, TOBACCO, AND FIREARMS TAXES.—

(1) IN GENERAL.—Subsection (b) of section 6091 of such Code (relating to place for filing returns or other documents) is amended by adding at the end thereof the following new paragraph: "(6) ALCOHOL, TOBACCO, AND FIREARMS RETURNS, ETC.—In the

case of any return of tax imposed by subtitle E (relating to taxes on alcohol, tobacco, and firearms), subsection (a) shall apply (and this subsection shall not apply)." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act. (s) TREATMENT OF STRIPPING TAX-EXEMPT BONDS.

(1) IN GENERAL.—Subsection (d) of section 1286 is amended to read as follows: "(d) SPECIAL RULES FOR TAX-EXEMPT OBLIGATIONS.—In the case of any tax-exempt obligation (as defined in section 1275(a)(3)) from which 1 or more coupons have been stripped— "(1) the amount of original issue discount determined under subsection (a) with respect to any stripped bond or stripped coupon from such obligation shall be the amount which produces a jdeld to maturity (as of the purchase date) equal to the lower of— "(A) the coupon rate of interest on such obligation before the separation of coupons, or "(B) the yield to maturity (on the basis of purchase price) of the stripped obligation or coupon, "(2) the amount of original issue discount determined under paragraph (1) shall be taken into account in determining the adjusted basis of the holder under section 1288, (3) subsection (b)(1) shall not apply, and "(4) subsection (b)(2) shall be applied by increasing the basis of the bond or coupon by the interest accrued but not paid before

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the time such bond or coupon was disposed of (and not previously reflected in basis)." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to any purchase or sale of any stripped tax-exempt obligation or stripped coupon from such an obligation after the date of the enactment of this Act. (t) DISPOSITION OF CERTAIN SUBSIDIARY.—If for a taxable year of an affiliated group filing a consolidated return ending on or before December 31, 1987, there is 1 disposition of stock of a subsidiary incorporated in Delaware on December 24, 1969, and whose principal place of business is in New Orleans, Louisiana (within the meaning of Treasury Regulation section 1.1502-19), the amount required to be included in income with respect to such disposition under Treasury Regulation section 1.1502-19(a) shall, notwithstanding such section, be included in income ratably over the 15-year period beginning with the taxable year in which the disposition occurs and ending with the 14th succeeding taxable year. (u) AMENDMENTS RELATED TO SINGLE EMPLOYER PENSION PLAN

AMENDMENTS ACT OF 1986.— (1) CLARIFICATION OF APPLICABILITY OF NOTICE REQUIREMENT FOR SIGNIFICANT REDUCTIONS IN BENEFIT ACCRUALS.—Section

206(h) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054(h); 100 Stat. 243) is amended— (A) by striking out "single-employer plan" and inserting in lieu thereof "plan described in paragraph (2)"; (B) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; (C) by striking out "paragraph (1), (2), or (3)" and inserting in lieu thereof "subparagraph (A), (B), or (C)"; (D) by inserting "(1)" after "(h)"; and (E) by adding at the end the following new paragraph: "(2) A plan is described in this paragraph if such plan is— "(A) a defined benefit plan, or "(B) an individual account plan which is subject to the funding standards of section 302." (2) TREATMENT OF SECTION 4049 TRUSTS ESTABLISHED PURSUANT TO SECTION 4042(i).—Section 4049(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1349(a); 100 Stat. 258) is amended by inserting "or 4042(i)" after "section 4041(c)(3)(B) (ii) or (iii)". (3) CORRECTION OF DEFINITION OF MULTIEMPLOYER PLAN FOR PURPOSES OF TITLE I.—Section 11016(c)(1) of the Single-Employer

Pension Plan Amendments Act of 1986 (100 Stat. 273) and the amendment made thereby are repealed. (4) EFFECTIVE DATE.— (A) GENERAL RULE.—Except as provided in subparagraph

(B), the preceding provisions of this subsection shall be effective as if such provisions were included in the enactment of the Single-Employer Pension Plan Amendments Act of 1986. (B) SPECIAL RULE.—Subparagraph (B) of section 206(h)(2) of the Employee Retirement Income Security Act of 1974 (as amended by paragraph (1)) shall apply only with respect to plan amendments adopted on or after the date of the enactment of this Act.

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PUBLIC LAW 99-514—OCT. 22, 1986 CHAPTER 8~EFFECTIVE DATE

SEC. 1881. EFFECTIVE DATE.

Except as otherwise provided in this subtitle, any amendment made by this subtitle shall take effect as if included in the provision of the Tax Reform Act of 1984 to which such amendment relates.

Subtitle B—Related to Other Programs Affected by the Deficit Reduction Act of 1984 CHAPTER 1—AMENDMENTS RELATED TO SOCIAL SECURITY ACT PROGRAMS SEC. 1882. AMENDMENTS RELATED TO COVERAGE OF CHURCH EMPLOYEES (SECTION 2603 OF THE DEFICIT REDUCTION ACT). (a) CLARIFICATION OF EXCEPTION FOR MEMBERS OF CERTAIN R E U -

Gious FAITHS.—Subsection (g) of section 1402 of the Internal Revenue Code of 1954 (relating to members of certain religious faiths) is amended by adding at the end thereof the following new paragraph: "(5) SUBSECTION NOT TO APPLY TO CERTAIN CHURCH EMPLOY-

EES.—This subsection shall not apply with respect to services which are described in subparagraph (B) of section 31210bX8) (and are not described in subparagraph (A) of such section)." (b) TREATMENT OF INCOME OF CERTAIN CHURCH, ETC., EMPLOYEES.— (1) AMENDMENTS OF INTERNAL REVENUE CODE OF 1954.—

(A) IN GENERAL.—Section 1402 of such Code (relating to definitions for purposes of the tax on self-employment income) is amended by adding at the end thereof the following new subsection: "(j) SPECIAL RULES FOR CERTAIN CHURCH EMPLOYEE INCOME.— "(1) COMPUTATION OF NET EARNINGS.—In applying subsection

(a)"(A) church employee income shall not be reduced by any deduction; "(B) church employee income and deductions attributable to such income shall not be taken into account in determining the amount of other net earnings from self-employment. "(2) COMPUTATION OF SELF-EMPLOYMENT INCOME.— "(A) SEPARATE APPLICATION OF SUBSECTION (b)(2).—Para-

graph (2) of subsection (b) shall be applied separately— "(i) to church employee income, and "(ii) to other net earnings from self-employment. "(B) $100 FLOOR.—In applying paragraph (2) of subsection (b) to church employee income, '$100' shall be substituted for '$400'. "(3) COORDINATION WITH SUBSECTION (axi 2).—Paragraph (1)

shall not apply to any amount allowable as a deduction under subsection (a)(12), and paragraph (1) shall be applied before determining the amount so allowable. "(4) CHURCH EMPLOYEE INCOME DEFINED.—For purposes of this section, the term 'church employee income' means gross income

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for services which are described in section 3121(b)(8)(B) (and are not described in section 3121(b)(8)(A))." (B) TECHNICAL AND CONFORMING AMENDMENTS.—

(i) NET EARNINGS.—Paragraph (14) of section 1402(a) of such Code (defining net earnings from self-employment) is amended to read as follows: "(14) in the case of church employee income, the special rules of subsection (j)(1) shall apply." (ii) SELF-EMPLOYMENT INCOME.—Subsection (b) of section 1402 of such Code is amended by adding at the end thereof the following new sentence: "In the case of church employee income, the special rules of subsection (j)(2) shall apply for purposes of paragraph (2)." (iii) CONFORMING AMENDMENT.—The second sentence

of section 1402(b) of such Code is amended by striking out "clause (1)" and inserting in lieu thereof "paragraph (1)". (2) AMENDMENTS OF SOCIAL SECURITY ACT.—

(A) IN GENERAL.—Section 211 of the Social Security Act is amended by adding at the end thereof the following new subsection: "(i)(1) In applying subsection (a)— "(A) church employee income shall not be reduced by any deduction; "(B) church employee income and deductions attributable to such income shall not be taken into account in determining the amount of other net earnings from self-employment. "(2)(A) Subsection (b)(2) shall be applied separately— "(i) to church employee income, and "(ii) to other net earnings from self-employment. "(B) In applying subsection (b)(2) to church employee income, '$100' shall be substituted for '$400'. "(3) Paragraph (1) shall not apply to any amount allowable as a deduction under subsection (a)(ll), and paragraph (1) shall be applied before determining the amount so allowable. "(4) For purposes of this section, the term 'church employee income' means gross income for services which are described in section 210(a)(8)(B) (and are not described in section 210(a)(8)(A))." (B) TECHNICAL AND CONFORMING AMENDMENTS.—

(i) NET EARNINGS.—Section 211(a)(13) of such Act is amended to read as follows: "(13) In the case of church employee income, the special rules of subsection (i)(1) shall apply." (ii) SELF-EMPLOYMENT INCOME.—Section 211(b) of such Act is amended by adding at the end thereof the following new sentence: "In the case of church employee income, the special rules of subsection (i)(2) shall apply for purposes of paragraph (2)." (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to remuneration paid or derived in taxable years beginning after December 31, 1985. (c) REVOCATION OF ELECTION UNDER SECTION 3121(W).—Paragraph

(2) of section 3121(w) of the Internal Revenue Code of 1954 (relating to timing and duration of election) is amended by striking out the last 2 sentences and inserting in lieu thereof the following: "The election may be revoked by the church or organization under regulations prescribed by the Secretary. The election shall be revoked by

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PUBLIC LAW 99-514—OCT. 22, 1986

the Secretary if such church or organization fails to furnish the information required under section 6051 to the Secretary for a period of 2 years or more with respect to remuneration paid for such services by such church or organization, and, upon request by the Secretary, fails to furnish all such previously unfurnished information for the period covered by the election. Any revocation under the preceding sentence shall apply retroactively to the beginning of the 2-year period for which the information was not furnished." SEC. 1883. TECHNICAL CORRECTIONS I N OTHER PROVISIONS RELATED TO SOCIAL SECURITY ACT PROGRAMS. (a) AMENDMENTS RELATING TO O A S D I PROGRAM.—

^

(1) Section 202(c)(5)(B) of the Social Security Act is amended by striking out "or (I)" and inserting in lieu thereof "or (J)". (2) Section 202(q)(5)(A)(i) of such Act is amended by striking out "prescribed by him" and inserting in lieu thereof "prescribed by the Secretary". (3) Section 202(q)(5)(C) of such Act is amended by striking out "she shall be deemed" and inserting in lieu thereof "he or she shall be deemed". (4) Section 210(a)(5)(G) of such Act is amended by striking out "Any other service" and inserting in lieu thereof "any other service". (5) Effective on the date of the enactment of the Deficit Reduction Act of 1984— (A) section 2601(d)(l)(B)(ii) of that Act is amended by striking out "210(a)(5)(g)(iii)" and inserting in lieu thereof "210(a)(5)(G)(iii)"; and (B) section 2663(c)(l) of that Act is amended by striking out subparagraph (B). (6) Section 211(c)(2) of the Social Security Act is amended by indenting subparagraph (G) two additional ems (for a total indentation of four ems) so as to align its left margin with the margins of the other subparagraphs in such section. (7) Section 215(i)(5)(B) of such Act is amended— (A) by striking out "subdivision (I)" in clause (ii) and inserting in lieu thereof "clause (i)(D"; and (B) by striking out "subdivisions (I) and (II)" in the matter between clauses (iii) and (iv) and inserting in lieu thereof "clause (i)". (8) The heading of section 218(m) of such Act is amended to read as follows: "Wisconsin Retirement Fund". (9) Section 221(e) of such Act is amended by striking out "under this section" in the first sentence. (10) Section 223(g)(l) of such Act is amended by striking out the second comma after the term "benefits" where such term first appears in the matter following subparagraph (C). (IIXA) Section 1402(c)(2) of the Internal Revenue Code of 1954 is amended by indenting subparagraph (G) two additional ems (for a total indentation of four ems) so as to align its left margin with the margins of the other subparagraphs in such section. (B) Section 3121(a)(8) of such C!ode is amended by moving subparagraph (B) two ems to the left, so that its left margin is in

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flush alignment with the margin of subparagraph (A) of such section. (b) AMENDMENTS PROGRAMS.—

RELATING

TO

AFDC

AND

CHILD

SUPPORT

(1)(A) Section 402(a)(31)(A) of the Social Security Act is amended by striking out "(or such lesser amount as the Secretary may prescribe in the case of an individual not engaged in fulltime employment or not employed throughout the month)". (B) The amendment made by this paragraph shall be effective beginning October 1, 1984. (2)(A) Section 402(a)(38)(B) of such Act is amended by striking out "section 406(a)," and inserting in lieu thereof "section 406(a) or in section 40'7(a) (if such section is applicable to the State),". (B) Section 402(a)(38) of such Act (as amended by subparagraph (A) of this paragraph) is further amended by relocating so much of subparagraph (B) as follows "section 407(a) (if such section is applicable to the State)," and placing it after and below subparagraph (B), beginning flush, and indenting it two ems so that its left margin is aligned with the left margin of that portion of section 402(a)(38) that precedes subparagraph (A) thereof. (C) The amendments made by this paragraph shall be effective beginning October 1, 1984. (3)(A) Section 402(a)(39) of such Act is amended by striking out "under the age selected by the State pursuant to section 406(a)(2)" and inserting in lieu thereof "under the age of 18". (B) The amendment made by subparagraph (A) shall be effective beginning October 1, 1984. (4)(A) Section 402(a) of such Act is amended by striking out "and" after the semicolon at the end of paragraph (37), and by making any additional changes which may be necessary to assure that paragraphs (34) through (37) each end with a semicolon, paragraph (38) ends with "; and", and paragraph (39) ends with a period. (B) Effective on the date of the enactment of the Deficit Reduction Act of 1984, section 2639(a) of that Act is amended by striking out the period immediately following "utility providing home energy" (in the quoted matter) and inserting in lieu thereof a semicolon. (5) The placement of the last sentence of section 402(a) of the Social Security Act is modified to the extent necessary to assure that it begins flush to the full left margin without any indentation, immediately after and below the last of the numbered paragraphs. (6) Section 457(c) of such Act is amended by striking out "subsection (b)(3)(A) and (B)" in the matter following paragraph (2) and inserting in lieu thereof "subsection (b)(4)(A) and (B)". (7) Section 458(d) of such Act is amended by striking out "on behalf of individuals residing in another State" and inserting in lieu thereof "at the request of another State". (8) Section 464(b)(2)(A) of such Act is amended by striking out "threshhold" and inserting in lieu thereof "threshold". (9) Section 474(a) of such Act is amended by moving paragraph (4) two ems to the left, so that its left margin is in flush alignment with the margins of the preceding paragraphs. (10)(A) Part E of title IV of such Act is amended by adding at the end thereof the following new section:

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1110

 100 STAT. 2918

PUBLIC LAW 99-514—OCT. 22, 1986 "EXCLUSION FROM AFDC UNIT OF CHILD FOR WHOM FOSTER CARE MAINTENANCE PAYMENTS ARE MADE

"SEC. 478. Notwithstanding any other provision of this title, a child with respect to whom foster care maintenance payments are made under this part shall not, for the period for which such payments are made, be regarded as a member of a family for purposes of determining the amount of the benefits of the family under part A, and the income and resources of such child shall not be counted as the income and resources of a family under such part.". (B) The amendment made by subparagraph (A) shall become effective October 1, 1984. (IIXA) The failure by a State to comply with the provisions of any amendment made by paragraph (1), (2), (3), or (10) or the imposition by a State of any requirement inconsistent with such provisions, in the administration of its plan approved under section 402(a) of the Social Security Act during the period beginning October 1, 1984, and ending on the day preceding the date of the enactment of this Act, shall not be considered to be failure to comply substantially with a provision required to be included in the State's plan, or to constitute (solely by reeison of such inconsistency) the imposition of a prohibited requirement in the administration of the plan, for purposes of section 404(a) of such Act. (B) No State shall be considered to have made any overpayment or underpa3mient of aid, under its plan approved under section 402(a) of the Social Security Act, by reason of its compliance or noncompliance with the provisions of any amendment made by paragraph (1), (2), (3), or (10) (or solely because of the extent to which its requirements are consistent or inconsistent with such provisions) in the administration of the plan during the period specified in subparagraph (A). (c) AMENDMENTS TO GENERAL PROVISIONS.—

(1) Section 1101(a) of such Act is amended by shifting paragraphs (3), (4), and (5) to the right to the extent necessary to assure that their left margins are gdigned with the left margins of the other numbered paragraphs. (2) Section 1136(b)(7) of such Act is amended by striking out "nongovermental" and inserting in lieu thereof "nongovernmental". (d) AMENDMENTS RELATING TO SSI PROGRAM.—

(1) The heading of section 1631(g) of such Act is amended to read as follows: "Reimbursement to States for Interim Assistance Payments". (2) Section 1612(a)(l)(C) of such Act is amended by striking out "section 43" and inserting in lieu thereof "section 32". (3) Section 1612(b) of such Act is amended— (A) by striking out the semicolon at the end of paragraph (2)(A) and inserting in lieu thereof ", and"; (B) by striking out the period at the end of paragraph (2)(B) and inserting in lieu thereof a semicolon; and (C) by making any changes which may be necessary to assure that paragraph (11) ends with a semicolon, para-

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1111

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2919

graph (12) ends with "; and", and paragraph (13) ends with a period. (e) AMENDMENTS RELATING TO SOCIAL SERVICES PROGRAM.—

(I)(A) Section 2003(d) of such Act is repealed. (B) Section 2003(b) of such Act is amended by striking out "(subject to subsection (d))". (2) Section 2007 of such Act is repealed. (f) EFFECTIVE DATE.—Except as otherwise provided in this section, the amendments made by this section shall take effect on the date of the enactment of this Act. CHAPTER 2—AMENDMENTS RELATED TO UNEMPLOYMENT COMPENSATION PROGRAM SEC. 1884. TECHNICAL CORRECTIONS IN FEDERAL UNEMPLOYMENT TAX ACT.

The Federal Unemployment Tax Act is amended as follows: (1) Subparagraph (B) of section 3302(c)(2) (relating to a limit on the credit against the unemployment tax) is amended— (A) by striking out "determination" the second place it appears in the material preceding clause (i) and inserting in lieu thereof "denominator", and (B) in clause (i)— (i) by striking out "percent" immediately preceding the comma at the end thereof, and (ii) by inserting "percent" after "2.7". (2) Subparagraph (A) of section 3302(f)(8) (relating to a partial limitation on the reduction of the credit against the unemployment tax) is amended by striking out "1987" and inserting in lieu thereof "1986". (3) Clause (i) of section 3306(o)(l)(A) (relating to crew leaders who are registered or provide specialized agricultured labor) is amended by striking out "Farm Labor Contractor Registration Act of 1963" and inserting in lieu thereof "Migrant and Seasonal Agricultural Worker Protection Act". CHAPTER 3—AMENDMENTS RELATED TO TRADE AND TARIFF PROGRAMS SEC. 1885. AMENDMENTS TO THE TARIFF SCHEDULES.

(a) IN GENERAL.—The Tariff Schedules of the United States are amended as follows: (1) TELECOMMUNICATIONS PRODUCT CLASSIFICATION CORRECTIONS.—

(A) Schedule 6 is amended as follows: (i) Headnote 1 to subpart C of part 4 is amended by striking out "688.43" and inserting in lieu thereof "688.42". (ii) Headnote 3 of part 5 of schedule 6 is amended by striking out "items 685.11 through 685.19, inclusive, and inserting in lieu thereof "items 684.92, 684.98, 685.00, and 685.08". (iii) Item 685.34 is amended by inserting "35% ad val." in Column No. 2. (iv) Item 685.55 is amended by striking out "685.11 to 685.50" and inserting in lieu thereof "684.92 to 685.49".

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1112

 100 STAT. 2920

PUBLIC LAW 99-514—OCT. 22, 1986 (B) Headnote 2(ii) to part 7 of schedule 8 is amended by striking out "688.43" and inserting in lieu thereof "688.42". (C) Subpart B of part 2 of schedule 6 is amended by inserting before the superior heading to items 608.26 and 608.29, and at the same indention level as that heading, the following new item: 608.25

Silicon electrical steel

5.6% ad val. 5.1% ad val. + + additional additional duties (see duties (see headnote headnote 4) 4XD) Free (E, I)

33% ad val. additional duties (see headnote 4)

(2) CORRECTIONS TO THE APPENDIX.—Subpart B of part 1 to the Appendix is amended as follows: (A) The article description for item 906.38 is amended to read as follows: "N-Acetylsulfanilyl chloride (provided for in item 405.31, part IB, schedule 4)". (B) Item 907.38 is amended by striking out "411.87" and inserting in lieu thereof "411.82". (C) Item 912.13 is amended by striking out "670.20" and inserting in lieu thereof "670.21". (D) Item 907.63 is amended by striking out "(provided for in item 437.13" and inserting in lieu thereof "put up in measured doses in chewing gum form (provided for in item 438.02". (3) MISCELLANEOUS CORRECTIONS.—The Schedules are further

amended as follows: (A) Headnote 1 of subpart D of part 4 of schedule 1 is amended by striking out "(casein plus albumin)" and inserting in lieu thereof "(casein plus lactalbumin)". (B) Headnote 1 of subpart C of part 4 of schedule 3 is amended— (i) by inserting "or" after the semicolon at the end of clause (v); and (ii) by striking out "; or" at the end of clause (vi) and inserting in lieu thereof a period. (b) EFFECTIVE DATE.—

(1) The amendments made by this section shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date that is 15 days after the date of enactment of this Act. (2) Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the customs officer concerned on or before the date that is 90 days after the date of enactment of this Act, the entry of any article— (A) which was made on or after November 14, 1984, and before the date that is 15 days after the date of enactment of this Act; and (B) with respect to which there would have been no duty, or a lesser duty, by reason of any amendment made by subsection (a) if such entry were made on or after the date that is 15 days after the date of enactment of this Act,

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1113

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2921

shall be liquidated or reliquidated as though such entry had been made on the date that is 15 days after the date of enactment of this Act. (3) The rate of duty in column number 1 for item 608.25 of the Tariff Schedules of the United States shall be subject to all staged rate reductions for item 608.38 of such Schedules that— (A) take effect after the date of enactment of this Act, and (B) were proclaimed by the President before the date of enactment of this Act. SEC. 1886. TECHNICAL CORRECTIONS TO COUNTERVAILING AND ANTIDUMPING DUTY PROVISIONS.

(a) IN GENERAL.—Title VII of the Tariff Act of 1930 is amended as follows: (I)(A) Subsection (c) of section 701 (19 U.S.C. 1671(c)) is redesignated as subsection (d). (B) Subsection (g) of such section 701 (as added by section 613(b) of the Trade and Tariff Act of 1984) is— (i) amended by striking out "(g) Whenever" and inserting in lieu thereof "(c) UPSTREAM SUBSIDY.—Whenever"; and (ii) inserted immediately after subsection (b) of that section. (2) Sections 702a)Xl), 7320b)(l), and 733(b)(2) (19 U.S.C. 1671a(b)(l); 1673a(b)(l); 1673b(b)(2)) are each amended by striking out "(C), (D), or (E)" each place it appears and inserting in lieu thereof "(C), (D), (E), or (F)". (3) Subsection (h) of section 703 (19 U.S.C. 1671b(h)) is redesignated as subsection (g), and— (A) paragraph (2)(A) of that subsection (as so redesignated) is amended by striking out "days under section 705(a)(l) or 225 days under section 705(a)(2), as appropriate" and inserting in lieu thereof "or 225 days, as appropriate, under section 705(a)(l)"; and (B) paragraph (2)(B)(ii) of that subsection (as so redesignated) is amended by striking out "days under section 705(a)(2)" and inserting in lieu thereof "or 225 days, as appropriate, under section 705(a)(l)". (4) Section 704 is amended— (A) by amending subsection (d)— (i) by redesignating paragraph (2) as paragraph (3); and (ii) by inserting after paragraph (1) the following new paragraph: "(2)

EXPORTS OF MERCHANDISE TO UNITED STATES NOT TO INCREASE DURING INTERIM PERIOD.—The administering authority

may not accept any agreement under subsection (b) unless that agreement provides a means of ensuring that the quantity of the merchandise covered by that agreement exported to the United States during the period provided for elimination or offset of the subsidy or cessation of exports does not exceed the quantity of such merchandise exported to the United States during the most recent representative period determined by the administering authority."; and (B) by amending subsection (i)(l)(D) by striking out "international" and inserting in lieu thereof "intentional".

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1114

 100 STAT. 2922

PUBLIC LAW 99-514—OCT. 22, 1986 (5) Paragraph (2) of section 706(a) is amended by aligning the margin of the matter appearing after subparagraph (B) with the margin of the matter appearing before subparagraph (A). (6)(A) Section 708 is amended by striking out "SEC. 708." and inserting in lieu thereof the following flush section heading:

"SEC.

708. EFFECT OF DEROGATION FINANCING.".

OF EXPORT-IMPORT

BANK

(B) The table of contents for such title VII is amended by inserting in numerical sequence the following: "Sec. 708. Effect of derogation of Export-Import Bank financing."

(7) Paragraph (1) of section 736(c) (19 U.S.C. 1673e(c)(l)) is amended by inserting ", and was sold to any person that is not related to such manufacturer, producer, or exporter," immediately before "on or after the date of publication of^". (8) The last sentence of section 151(h)(l) (19 U.S.C. 1675(b)(1)) is amended by inserting "or countervailing duty" after "antidumping" each place it appears. (9) Clause (i) of section 771(7)(F) (19 U.S.C. 1677(7)(F)(i)) is amended— (A) by striking "any merchandise" in that part which precedes subclause (I) and inserting in lieu thereof "the merchandise"; and (B) by striking out "find orders" in subclause (VIII) and inserting in lieu thereof "final orders". (10) Subsection (a) of section 771A (19 U.S.C. 1677-l(a)) is amended by striking out "(ii), or (iii)" and inserting in lieu thereof "(ii),(iii), or (iv)". (11) Subsection (g) of section 773 (19 U.S.C. 1677b(g)) is redesignated as subsection (f). (12) Section 775 (19 U.S.C. 1677d) is amended by striking out "an proceeding" each place it appears in the text and in the heading and inserting in lieu thereof "a proceeding". (13) Section 777 (19 U.S.C. 16770 is amended— (A) by striking out "confidential", "nonconfidential", and "confidentiality" each place they appear in the text and in the side headings and inserting in lieu thereof "proprietary", "non-proprietary", and "proprietary status", respectively; and (B) by inserting "or the Commission" after "administering authority" in subsection (b)(l)(B)(i). (b) AMENDMENTS TO EFFECTIVE DATE PROVISIONS.—Section 626(b) of the Trade and Tariff Act of 1984 (relating to the effective dates of the amendments made therein to title VII of the Tariff Act of 1930) is amended— (1) by amending paragraph (1) by inserting ", and to reviews begun under section 751 of that Act," after "1930"; and (2) by adding at the end thereof the following new paragraphs: "(3) The administering authority may delay implementation of any of the amendments referred to in subsections (a) and (b)(1) with respect to any investigation in progress on the date of enactment of this Act if the administering authority determines that immediate implementation would prevent compliance with a statutory deadline in title VII of the Tariff Act of 1930 that is applicable to that investigation.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1115

 PUBLIC LAW 9 9 - 5 1 4 - O C T. 22, 1986

100 STAT. 2923

"(4) The amendment made by section 621 shall apply with respect to merchandise that is unliquidated on or after November 4, 1984.". SEC. 1887. AMENDMENTS TO THE TRADE ACT OF 1974.

(a) IN GENERAL.—The Trade Act of 1974 is amended as follows: (1) Subclause (II) of section 102(b)(4)(B)(ii) of the Trade Act of 1974 (19 U.S.C. 2112(b)(4)(B)(iiXII)) is amended by striking out "subsection (A)(iiXD" and inserting in lieu thereof "subparagraph (A)(iiXI)". (2) Subsection (n) of section 135 (as added by section 306(c)(2)(B)(v) of the Trade and Tariff Act of 1984) is redesignated as subsection (m). (3) Section 141(d)(6) is amended by striking out "3679(b) of the Revised Statutes (31 U.S.C. 665(b))" and inserting in lieu thereof "1342 of title 31, United States Code". (4) Subsection (d) of section 141 (19 U.S.C. 2171(d)) is amended— (A) by striking out "and" at the end of paragraph (9), (B) by striking out the period at the end of paragraph (10) and inserting in lieu thereof "; and", and (C) by redesignating the paragraph added by section 304(d)(2)(A)(iii) of the Trade and Tariff Act of 1984 as paragraph (11). (5) Subparagraphs (A), (B), and (C) of section 5020bX4) (19 U.S.C. 2462(b)(4)) are amended to read as follows: "(A) has nationalized, expropriated, or otherwise seized ownership or control of property, including patents, trademarks, or copyrights, owned by a United States citizen or by a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens, "(B) has taken steps to repudiate or nullify an existing contract or agreement with a United States citizen or a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of property, including patents, trademarks, or copyrights, so owned, or "(C) has imposed or enforced taxes or other exactions, restrictive maintenance or operational conditions, or other measures with respect to property, including patents, trademarks, or copyrights, so owned, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of such property,". (6) That part of section 504(c)(3)(D)(ii) (19 U.S.C. 2464(c)(3)(D)(ii)) that precedes subclause (I) is amended— (A) by striking out "from any beneficiary developing country"; (B) by striking out "1984 which exceeds 15" and inserting in lieu thereof "1986 the aggregate value of which exceeds 15"; and (C) by striking out "if for the preceding calendar year such beneficiary developing country—" and inserting in lieu thereof "from those beneficiary developing countries which for the preceding calendar year—". 0)) TRANSISTORS.—

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1116

 100 STAT. 2924

PUBLIC LAW 99-514—OCT. 22, 1986 (1) Section 128(b) of the Trade Act of 1974 (19 U.S.C. 2138) is amended by striking out "587.70" in paragraph (1) and inserting in lieu thereof "687.70". (2)(A) Item 687.70 of the Tariff Schedules of the United States is amended by striking out "4.2% ad val." and inserting in lieu thereof "Free". (B) The amendment made by subparagraph (A) shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date that is 15 days after the date of enactment of this Act. (C) Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the customs officer concerned on or before the date that is 90 days after the date of enactment of this Act, the entry of any article described in item 687.70 of the Tariff Schedules of the United States which was made on or after March 1, 1985, and before the date that is 15 days after the date of enactment of this Act shall be liquidated or reliquidated as though such entry had been made on the date that is 15 days after the date of enactment of this Act.

SEC. 1888. AMENDMENTS TO THE TARIFF ACT OF 1930.

The Tariff Act of 1930 is amended as follows: (1) Subsection (c) of section 304 (19 U.S.C. 1304(c)) is amended— (A) by striking out "No" and inserting in lieu thereof the following: "(1) Except as provided in paragraph (2), no"; and (B) by adding at the end thereof the following new paragraph: "(2) If, because of the nature of an article, it is technically or commercially infeasible to mark it by one of the four methods specified in paragraph (1), the article may be marked by an equally permanent method of marking such as paint stenciling or, in the case of small diameter pipe, tube, and fittings, by tagging the containers or bundles.". (2) Subsection (j) of section 313 (19 U.S.C. 13130')) is amended— (A) by redesignating the paragraphs (3) and (4) inserted by section 202(1)(B) of the Trade and Tariff Act of 1984 as paragraphs (2) and (3), respectively; and (B) by amending the paragraph redesignated as paragraph (4) by section 202(1)(A) of the Trade and Tariff Act of 1984 to read as follows: "(4) The performing of incidental operations (including, but not limited to, testing, cleaning, repacking, and inspecting) on— "(A) the imported merchandise itself in cases to which paragraph (1) applies, or "(B) the merchandise of the same kind and quality in cases to which paragraph (2) applies, that does not amount to manufacture or production for drawback purposes under the preceding provisions of this section shall not be treated as a use of that merchandise for purposes of applying paragraph (I)(B) or (2)(C).". (3) Section 339(c)(2)(A) (19 U.S.C. 1339) is amended by striking out "relief and inserting in lieu thereof "injury". (4) Section 514(a) (19 U.S.C. 1514(a)) is amended by striking out "as defined in section 771(9)(C), (D), (E), and (F) of this Act.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1117

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2925

(5) Section 516(a)(2) (19 U.S.C. 1516(a)(2)) is amended by adding at the end thereof the following new sentence: "Such term includes an association, a majority of whose members is composed of persons described in subparagraph (A), (B), or (C).". (6) Section 516A(a)(3) (19 U.S.C. 1516a(a)(3)) is amended by striking out "(2)(A)(ii)" and inserting in lieu thereof "(2)(A)(i)(n)". (7) Section 613a of the Tariff Act of 1930 (19 U.S.C. 1613a), as added by section 317 of the Joint Resolution entitled "A Joint Resolution making appropriations for fiscal year 1985, and for other purposes.", approved October 12, 1984 (98 Stat. 2054, Public Law 98-473), is repealed. (8) Section 641 (19 U.S.C. 1641) is amended by adding at the end thereof the following new subsection: "(i) (COMPENSATION OF OCEAN FREIGHT FORWARDERS.—

"(1) IN GENERAL.—Notwithstanding any other provision of law, no conference or group of two or more ocean common carriers in the foreign commerce of the United States that is authorized to agree upon the level of compensation paid to ocean freight forwarders may— "(A) deny to any member of such conference or group the right, upon notice of not more than 10 calendar days, to take independent action on any level of compensation paid to an ocean freight forwarder who is also a customs broker, and "(B) agree to limit the payment of compensation to an ocean freight forwarder who is also a customs broker to less than 1.25 percent of the aggregate of all rates and charges applicable under the tariff assessed against the cai^o on which the forwarding services are provided. "(2) ADMINISTRATION.—The provisions of this subsection shall be enforced by the agency responsible for administration of the Shipping Act of 1984 (46 U.S.C. 1701, et seq.). "(3) REMEDIES.—Any person injured by reason of a violation of paragraph (1) may, in addition to any other remedy, file a complaint for reparation as provided in section 11 of the Shipping Act of 1984 (46 U.S.C. 1710), which may be enforced pursuant to section 14 of such Act (46 U.S.C. 1713). "(4) DEFINITIONS.—For purposes of this subsection, the terms 'conference', 'ocean common carrier', and 'ocean freight forwarder' have the respective meaning given to such terms by section 3 of the Shipping Act of 1984 (46 U.S.C. 1702)." SEC. 1889. AMENDMENTS TO THE TRADE AND TARIFF ACT OF 1984.

The Trade and Tariff Act of 1984 (Public Law 98-573) is amended as follows: (1) Section 126 is amended by striking out the following: "(3) Paragraphs (1) and (2) of section 126 of the bill are amended to read as follows:". (2) Section 174(b) is amended by adding at the end of the table appearing therein the following: "January 1, 1987

4.9% ad val.".

(3) Paragraph (7) of subsection (b) of section 212 is redesignated as subsection (c) of that section.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1118

 100 STAT. 2926

PUBLIC LAW 99-514—OCT. 22, 1986 (4) The table in section 234(a) is amended by striking out "711.49" and inserting in lieu thereof "712.49". (5) Paragraph (3) of section 307(b) is amended by striking out "or paragraph (3)". (6) Paragraph (4) of section 404(e) is amended by striking out "147.44" and inserting in lieu thereof "147.33". (7) Section 504 is amended by striking out "Tariff Act of 1930" and inserting in lieu thereof "Trade Act of 1974". (8) Paragraph (3) of section 619 is amended by striking out "subsection (b)" and inserting in lieu thereof "subsection ft)Xl)".

SEC. 1890. AMENDMENTS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.

Section 213 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703) is amended— (1) by amending paragraph (3) of subsection (a) (as added by section 235 of the Trade and Tariff Act of 1984)— (A) by redesignating that paragraph as paragraph (4), and aligning its margin with that of paragraph (3), and (B) by striking out "such" the first time it appears therein and inserting in lieu thereof "any beneficiary"; and (2) by striking out "138.42" in subsection (fK5XB) and inserting in lieu thereof "138.46". SEC. 1891. CONFORMING AMENDMENTS REGARDING CUSTOMS BROKERS.

Title 28 of the United States Code is amended— (1) by striking out "(3) or (c)" in section 1581(g)(l) and inserting in lieu thereof "(3)"; and (2) by striking out "641(a)(l)(C)" in section 1582(1) and inserting in lieu thereof "641(b)(6)". SEC. 1892. SPECIAL EFFECTIVE DATE PROVISIONS FOR CERTAIN ARTICLES GIVEN DUTY-FREE TREATMENT UNDER THE TRADE AND TARIFF ACT OF 1984.

(a) IN GENERAL.—Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the appropriate customs officer on or before the date that is 90 days after the date of ^nactment of this Act, any entry— (1) which [was made after the applicable date and before November 14, 1984, and (2) with resjiect to which there would have been no duty or a lesser duty by reason of any amendment made by section 112, 115, 118, 167, or 179 of the Trade and Tariff Act of 1984 if such entry were made on November 14, 1984, shall be liquidated or reliquidated as though such entry had been made on November 14, 1984. (b) APPLICABLE DATE.—For purposes of this section— (1) The term "applicable date" means— (A) with respect to any entry for which the amendment described in subsection (a)(2) is any amendment made by section 118 of the Trade and Tariff Act of 1984, June 1, 1982; (B) with respect to any entry for which the amendment described in subsection (a)(2) is any amendment made by section 112, 115, or 179 of the Trade and Tariff Act of 1984, June 30, 1983; and

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1119

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2927

(C) with respect to any entry for which the amendment described in subsection (a)(2) is the amendment made by section 167 of the Trade and Tariff Act of 1984, October 30, 1983. (2) The term "entry" includes any withdrawal from warehouse. SEC. 1893. TECHNICAL AMENDMENTS RELATING TO CUSTOMS USER FEES. (a) SCHEDULE OF FEES.—

(1) Subsection (a) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is amended— (A) by striking out "Subject to the limitation in subsection (b)(2), for" in paragraph (2) and inserting in lieu thereof "For", (B) by adding at the end thereof the following new paragraph: "(8) For the arrival of a barge or other bulk carrier from Canada or Mexico, $100." (2) Paragraph (3) of section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(3)) is amended to read as follows: "(3) For the arrival of each railroad car carrying passengers or commercial freight, $7.50." (b) LIMITATIONS ON FEES.—

(1) Subsection (b) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is amended by adding at the end thereof the following new paragraphs: "(4) No fee may be charged under subsection (a)(5) with respect to the arrival of any passenger— "(A) who is in transit to a destination outside the customs territory of the United States, and "(B) for whom customs inspectional services are not provided. "(5) No fee may be charged under subsection (a)(1) for the arrival of— "(A) a vessel during a calendar year gifter a total of $5,955 in fees charged under pargigraph (1) or (8) of subsection (a) has been paid to the Secretary of the Treasury for the provision of customs services for all arrivals of such vessel during such calendar year, "(B) any vessel which, at the time of the arrival, is being used solely as a tugboat, or "(C) any barge or other bulk carrier from Canada or Mexico. "(6) No fee may be chained under subsection (a)(8) for the arrival of a barge or other bulk carrier during a calendar year after a total of ^1,500 in fees charged under paragraph (1) or (8) of subsection (a) has been paid to the Secretary of the Treasury for the provision of customs services for all arrivals of such barge or other bulk carrier during such calendar year. "(7) No fee may be charged under paragraphs (2), (3), or (4) of subsection (a) for the arrival of any— "(A) commercial truck, "(B) railroad car, or "(C) private vessel.

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PUBLIC LAW 99-514—OCT. 22, 1986 that is being transported, at the time of the arrival, by any vessel that is not a ferry." (2) Subparagraph (A) of section 13031(b)(1) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(l)(A)) is amended to read as follows: "(A) the arrival of any passenger whose journey— "(i) originated in— "(I) Canada, "(II) Mexico, "(III) a territory or possession of the United States, or "(IV) any adjacent island (within the meaning of section 1010t))(5) of the Immigration and Nationality Act (8 U.S.C. 11010))(5)), or "(ii) originated in the United States and was limited to— "(I) Canada, "(II) Mexico, "(III) territories and possessions of the United States, and "(IV) such adjacent islands;". (3) Paragraph (1) of section 130310t)) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58cOt)Xl)) is amended— (A) by striking out the period at the end of subparagraph (B) and inserting in lieu thereof "; or ", and (B) by adding at the end thereof the following new subparagraph: "(C) the arrival of any ferry." (4) Subsection (c) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(c)) is amended— (A) by amending paragraph (1) to read as follows: "(1) The term 'ferry' means any vessel which is being used— "(A) to provide transportation only between places that are no more than 300 miles apart, and "(B) to transport only— "(i) passengers, or "(ii) vehicles, or railroad cars, which are being used, or have been used, in transporting passengers or goods.", and (B) by adding at the end thereof the following new paragraph: "(5) The term 'barge or other bulk carrier' means any vessel which— "(A) is not self-propelled, or "(B) transports fungible goods that are not packaged in any form." (c) SPECIAL PROVISIONS RELATING TO CUSTOMS BROKER PERMITS.—

(1) Subsection (d) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(d)) is amended by adding at the end thereof the following new paragraph: "(4)(A) Notice of the date on which payment of the fee imposed by subsection (a)(7) is due shall be published by the Secretary of the Treasury in the Federal Register by no later than the date that is 60 days before such due date.

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"(B) A customs broker permit may be revoked or suspended for nonpayment of the fee imposed by subsection (a)(7) only if notice of the date on which payment of J such fee is due was published in the Federal Register at least 60 days before such due date. "(C) The customs broker's license issued under section 641(b) of the Tariff Act of 1930 (19 U.S.C. 16410b)) may not be revoked or suspended merely by reeison of nonpayment of the fee imposed under subsection (a)(7)." (2) Notwithstanding section 13031(a)(7) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(7)), the fee imposed by section 13031(a) of such Act with respect to each customs broker permit held by an individual, partnership, association, or corporate customs broker for calendar year 1986 is $62.50. (3)(A) The Secretary of the Treasury shall reinstate any customs broker's license or customs broker permit issued under subsection (b) or (c) of section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) that was suspended or revoked on or before the date of enactment of this Act solely by reason of nonpayment of the fee imposed by section 13031(a)(7) of the (Donsolidated Omnibus Budget Reconciliation Act of 1985. (B) Notwithstanding any other provision of law, the Secretary of the Treasury may not suspend or revoke any customs broker permit issued under section 641(c) of the Tariff Act of 1930 (19 U.S.C. 1641(c)) solely by reason of nonpayment of the fee imposed by section 13031(a)(7) of the Consolidated Omnibus Budget Reconciliation Act of 1985 before the date that is 60 days after the date of enactment of this Act. (d) PROVISION OF FOREIGN PRE-CLEARANCE SERVICES.—

(1) Paragraph (1) of section 13031(e) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(e)(l)) is amended to read as follows: "(1) Notwithstanding section 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of law (other than paragraph (2)), the customs services required to be provided to passengers upon arrival in the United States shall be adequately provided in connection with scheduled airline flights at customs serviced airports when needed and at no cost (other than the fees imposed under subsection (a)) to airlines and airline passengers." (2) Subsection (e) of section 13031 of such Act is amended by— (A) striking out "This subsection" in paragraph (2) and inserting in lieu thereof "Paragraph (1)", and (B) by adding at the end thereof the following new paragraph: "(3) Notwithstanding section 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of law— "(A) the customs services required to be provided to passengers upon arrival in the United States shall be adequately provided in connection with scheduled airline flights when needed at places located outside the customs territory of the United States at which a customs officer is stationed for the purpose of providing such customs services, and "(B) other than the fees imposed under subsection (a), the airlines and airline passengers shall not be required to

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reimburse the Secretary of the Treasury for the costs of providing overtime customs inspectional services at such places." (e) REGULATIONS ON REMITTANCE OF FEES.—Subsection (g) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(g)) is amended by adding at the end thereof the following new sentence: "Regulations issued by the Secretary of the Treasury under this subsection with respect to the collection of the fees charged under subsection (a)(5) and the remittance of such fees to the Treasury of the United States shall be consistent with the regulations issued by the Secretary of the Treasury for the collection and remittance of the taxes imposed by subchapter C of chapter 33 of the Internal Revenue Code of 1954, but only to the extent the regulations issued with respect to such taxes do not conflict with the provisions of this section." (f) REINSTATING LIMIT ON CHARGES FOR OTHER INSPECTION SERV-

ICES.—Section 53 of the Airport and Airway Development Act of 1970 (49 U.S.C. 1741), as amended by section 13031(h)(2) of the Consolidated Omnibus Budget Reconciliation Act of 1985, is further amended by adding at the end thereof the following new subsection: "(e)(1) The cost of any inspection or quarantine service which is required to be performed by the Federal (government or any agency thereof at airports of entry or other places of inspection as a consequence of the operation of aircraft, and which is performed during regularly established hours of service on Sundays or holidays shall be reimbursed by the owners or operators of such aircraft only to the same extent as if such service had been performed during regularly established hours of service on weekdays. Notwithstanding any other provision of law, administrative overhead costs associated with any inspection or quarantine service required to be performed by the United States Government, or any agency thereof, at airports of entry as a result of the operation of aircraft, shall not be assessed against the owners or operators thereof. "(2) Nothing in this subsection may be construed as requiring reimbursement for costs incurred by the Secretary of the Treasury in providing customs services described in section 13031(e)(l) of the Consolidated Omnibus Budget Reconciliation Act of 1985." (g) EFFECTIVE DATE; REFUNDS.—

(1) The amendments made by this section shall apply with respect to services rendered after the date that is 15 days after the date of enactment of this Act. (2) Upon written request filed by any person with the Secretary of the Treasury (hereafter in this subsection referred to as the "Secretary") before the date that is 90 days after the date of enactment of this Act which is accompanied by such documentation establishing proof of payment as the Secretary may require, the Secretary shall refund (out of funds in the Treasury of the United States not otherwise appropriated) to such person an amount equal to the excess of— (A) the amount of fees imposed by section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 that were paid by such person to the Secretary with respect to customs services provided— (i) after July 6, 1986, and (ii) on or before the date that is 15 days after the date of enactment of this Act, over

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(B) the amount of fees such person would have been required to pay to the Secretary by reason of such section with respect to such services if the amendments made by subsections (a)(1) and (b) applied with respect to such services. (3) If the customs broker permit fee paid by any person for calendar year 1986 under section 13031(a)(7) of the Consolidated Omnibus Budget Reconciliation Act of 1985 exceeds $62.50, the Secretary shall either— (A) refund (out of funds in the Treasury of the United States not otherwise appropriated) to such person the amount of the excess, or (B) if requested by such person, credit the amount of the excess to the fee due under such section 13031(a)(7) with respect to such permit for calendar year 1987. SEC. 1894. FOREIGN TRADE ZONES.

Section 3 of the Act of June 18, 1934 (48 Stat. 999, chapter 590; 19 U.S.C. 81c) is amended by adding at the end thereof the following new subsection: "(c) Notwithstanding the provisions of the fifth proviso of subsection (a), any article (within the meaning of section 5002(a)(14) of the Internal Revenue Code of 1986) may be manufactured or produced from domestic denatured distilled spirits, and articles thereof, in a zone."

Subtitle C—Miscellaneous CHAPTER 1~AMENDMENTS RELATED TO THE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985 SEC. 1895. COBRA TECHNICAL CORRECTIONS RELATING TO SOCIAL SECURITY ACT PROGRAMS. (a)

AMENDMENT RELATING TO THE O A S D I

PROGRAM.—Section

12108(b) of the Consolidated Omnibus Budget Reconciliation Act of 1985 is amended by striking out "1985" and inserting in lieu thereof "1986". (b) AMENDMENTS RELATING TO THE MEDICARE PROGRAM.— (1) INDIRECT MEDICAL EDUCATION.—(A) Parsigraph (2)(C)(i)

of subsection (d) of section 1886 of the Social Security Act (42 U.S.C. 1395ww) is amended by striking out "(taking into account, for discharges occurring after September 30, 1986, the amendments made by section 9104(a) of the Medicare and Medicaid Budget Reconciliation Amendments of 1985)". (B) Paragraph (3)(A) of such subsection is amended by adding at the end the following: "If the formula under paragraph (5)(B) for determining payments for the indirect costs of medical education is changed for any fiscal year, the Secretary shall readjust the standardized amounts previously determined for each hospital to take into account the changes in that formula.". (C) Clause (ii) of paragraph (3)(C) of such subsection is amended to read as follows:

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PUBLIC LAW 99-514—OCT. 22, 1986 "(ii) REDUCING FOR SAVINGS FROM AMENDMENT TO INDIRECT TEACHING ADJUSTMENT FOR DISCHARGES AFTER SEPTEMBER 30,

1986.—The Secretary shall further reduce each of the average standardized amounts by a proportion equal to the proportion (estimated by the Secretary) of the amount of payments under this subsection based on DRG prospective payment amounts which is the difference between— "(I) the sum of the additional payment amounts under paragraph (5)(B) (relating to indirect costs of medical education) if the indirect teaching adjustment factor were equal to 1.159r (as *r' is defined in paragraph (5)(B)(ii)), and "(11) that sum using the factor specified in paragraph (5)(B)(ii)(II).". (D)(i) Except as provided in clause (ii), the amendments made by this paragraph apply to discharges occurring on or after October 1, 1986. (ii) The amendments made by this paragraph shall not be first applied to discharges occurring as of a date unless, for discharges occurring on that date, the amendments made by section 9105(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (incorporating the amendments made by paragraph (2) of this subsection) are also being applied. (2) DISPROPORTIONATE SHARE.—(A) Paragraph (2)(C) of subsection (d) of section 1886 of the Social Security Act (42 U.S.C. 1395ww), as amended by section 9105(b) of the (Consolidated Omnibus Budget Reconciliation Act of 1985 (in this section referred to as "COBRA") is amended— (i) by adding "and" at the end of clause (ii), (ii) by striking out ", and" at the end of clause (iii) and inserting in lieu thereof a period, and (iii) by striking out clause (iv). (B) Paragraph (3)(C) of such subsection is amended by adding at the end the following: "(iii) REDUCING FOR DISPROPORTIONATE SHARE PAYMENTS.—The Secretary shall further reduce each of the average standardized amounts by reducing the standardized amount for each hospital (as previously determined without regard to this clause) by a proportion equal to the proportion (established by the Secretary) of the amount of payments under this subsection based on DRG prospective payment amounts which are additional payments described in paragraph (5)(F) (relating to disproportionate share payments) for subsection (d) hospitals.". (C) Paragraph (5)(F)(vi)(I) of such subsection is amended— (i) by striking out "supplementary" and inserting in lieu thereof "supplemental", and (ii) by striking out "fiscal year" and inserting in lieu thereof "period". (D) The amendments made by subparagraph (C) apply to discharges occurring on or after May 1, 1986, and the amendments made by subparagraphs (A) and (B) apply to discharges occurring on or after October 1, 1986. (3) AuGNMENT CORRECTION.—Subparagraph (B) of section 1886(g)(2) of the Social Security Act (as added by section 9107(a)(l)(C) of the (Donsolidated Omnibus Budget Reconciliation Act of 1985) is amended by moving its alignment (and the alignment of each of its clauses) two additional ems to the left.

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(4) EMERGENCY CARE REQUIREMENT.—Section 1867(e)(3) of the Social Security Act (42 U.S.C. 1395dd(e)(3)), as inserted by section 9121(b) of COBRA, is amended by striking out "and has, under the agreement, obligated itself to comply with the requirements of this section". (5) REDESIGNATING OVERLAPPING PROVISIONS.—Paragraph (1)

of section 1866(a) of the Social Security Act (42 U.S.C. 1395cc(a)) is amended— (A) by striking out "and" inserted at the end of subparagraph (I) by section 9122(a)(2) of COBRA, (B) by striking out the period at the end of subparagraph (J) and inserting in lieu thereof ", and", and (C) by redesignating the subparagraph (I) inserted by section 9403(b) of COBRA as subparagraph (K) and transferring and inserting such subparagraph after subparagraph (J). (6) CHAMPUS.—Section 91220?) of COBRA is amended by striking out "to agreements entered into or renewed on or after the date of the enactment of this Act, but shall apply only". (7)

SKILLED

NURSING

FACILITY

PAYMENTS.—(A)

Section

1888(d)(1) of the Social Security Act (42 U.S.C. 1395yy(d)(l)), as added by section 9126(a) of COBRA, is amended by striking out "fiscal year" each place it appears and inserting in lieu thereof "cost reporting period". (B) Section 1888(d)(4) of the Social Security Act is amended— (i) in the first sentence, by striking out "each fiscal year" and inserting in lieu thereof "cost reporting periods beginning in a fiscal year", and (ii) in the second sentence, by striking out "fiscal year" and all that follows up to the period and inserting in lieu thereof "cost reporting period no later than 30 days before the beginning of that period". (C) Section 9126(d)(1) of COBRA is amended by striking out "fiscal years" and inserting in lieu thereof "cost reporting periods. (D) The amendments made by subparagraphs (A) and (B) apply to cost reporting periods beginning on or after October 1, 1986. (8) PROP AC—Section 91270)) of COBRA is amended by inserting ", except that the Director may provide initially for such terms as will insure that (on a continuing basis) the terms of no more than eight members will expire in any one year" after "years". (9) DIRECT MEDICAL EDUCATION.—Section 1886(h) of the Social Security Act (42 U.S.C. 1395ww(h)), added by 9202(a) of COBRA, is amended— (A) in paragraph (2)(C), by striking out "paragraph (B)" and inserting in lieu thereof "subparagraph (B)", (B) in the matter preceding subclause (I) of paragraph (4)(E)(ii), by inserting "but before July 1, 1987," after "1986,", (C) by redesignating subparagraph (E) of paragraph (4) as subparagraph (D), and (D) in paragraph (5)(B), by striking out "As used in this paragraph, the" and inserting in lieu thereof "The". (10) CITATION CORRECTION.—Section 9202(j) of COBRA is amended by inserting "or section 402 of the Social Security

71-19A 0 - 89 - 37: QL. 3 Part3

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PUBLIC LAW 99-514—OCT. 22, 1986 Amendments of 1967" after "section 1886(c) of the Social Security Act". (11) HMO/CMP RATES.—(A) The matter in section 1876(a)(l)(A) of the Social Security Act (42 U.S.C. 1395mm(a)(l)(A)) preceding clause (i), as amended by section 9211(d) of COBRA, is amended by striking out "publish" and inserting in lieu thereof "announce (in a manner intended to provide notice to interested parties)". (B) The amendment made by subparagraph (A) shall apply to determinations of per capita payment rates for 1987 and subsequent years. (12) INDENTATION.—Section 1837(i)(l) of the Social Security Act (42 U.S.C. 1395p(i)(l)), as amended by section 9219(a)(2)(A) of COBRA, is amended by moving the alignment of subparagraph (A) two additional ems to the left so as to align its left margin with the left margins of subparagraphs (B) and (C) of such section. (13) ACCESS DEMONSTRATION PROJECT.—Section

9221(a) of

COBRA is amended by striking out "September 30, 1986" and inserting in lieu thereof "July 31, 1987". (14) PHYSICIAN PAYMENT.—(A) Section 1842(b)(4)(C) of the Social Security Act (42 U.S.C. 1395u(b)(4)(C)), as amended by section 9301(b)(l)(C) of COBRA, is amended— (i) by striking out clause (ii), and (ii) by striking out "(i)" in clause (i). (B) Section 9301(c)(5) of COBRA is amended by striking out "18420t)X7)" and inserting in lieu thereof "1842(h)(7)". (15) REDUNDANT WORDS.—Section 1842(h) of the Social Security Act (42 U.S.C. 1395u(h)), as amended by section 9301(c) of COBRA, is amended— (A) in paragraph (5), as redesignated by section 9301(c)(3)(D) of COBRA, by striking out "such" each place it appears, and (B) in paragraph (6); as so redesignated, by striking out "the the" and inserting in lieu thereof "the". (16) ASSISTANTS AT SURGERY.—(A) Section 1842(k) of the Social

Security Act (42 U.S.C. 1395u(k)), added by section 9307(c) of COBRA, is amended by inserting "presents or causes to be presented a claim or" after "willfully" each place it appears. (B) The amendment made by subparagraph (A) shall apply to claims presented after the date of the enactment of this Act. (C) For purposes of section 1862(a)(15) of the Social Security Act (42 U.S.C. 1395y(a)(15)), added by section 9307(a)(3) of COBRA, and for surgical procedures performed during the period beginning on April 1, 1986, and ending on December 15, 1986, a carrier is deemed to have approved the use of an assistant in a surgical procedure, before the surgery is performed, based on the existence of a complicating medical condition if the carrier determines after the surgery is performed that the use of the assistant in the procedure was appropriate based on the existence of a complicating medical condition before or during the surgery. (17) QTATION.-Section 1164(b)(4)(B) of the Social Security Act (42 U.S.C. 1320c-13a)X4XB)), as added by section 9401(b) of COBRA, is amended by striking out "paragraphs" and inserting in lieu thereof "subparagraphs '.

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(18) MEDICARE TAX ON STATE AND LOCAL EMPLOYEES.—(A) Section 3121(u)(2)(B)(ii) of the Internal Revenue Code of 1954, as added by section 13205(a)(1) of COBRA, is amended— (i) by striking out "or" at the end of subclause (III), (ii) by striking out the period at the end of subclause (IV) and inserting in lieu thereof ", or", and (iii) by adding at the end the following: "(V) by an election official or election worker if the remuneration paid in a calendar year for such service is less than $100." (B) Section 210(p)(2) of the Social Security Act (42 U.S.C. 410(p)(2)), as added by section 13205(b)(1) of COBRA, is amended— (i) by striking out "or" at the end of subparagraph (C), (ii) by striking out the period at the end of subparagraph (D) and inserting in lieu thereof ", or", and (iii) by adding at the end the following: "(E) by an election official or election worker if the remuneration paid in a calendar year for such service is less than $100." (C) The amendments made by this paragraph shall apply to services performed after March 31, 1986. (19) PUNCTUATION.—Section 210(p)(4)(B) of the Social Security Act (42 U.S.C. 410(p)(4)(B)), as amended by section 13205(b)(1) of COBRA, is amended by striking out any quotation marks that appear before "(A)". (c) AMENDMENTS RELATING TO THE MEDICAID PROGRAM.—

(1) EXTRA WORD.—Section 1902(a)(13XD) of the Social Security Act (42 U.S.C. 1396a(a)(13XD)), as inserted by section 9505(c)(l)(C) of COBRA and as amended and redesignated by paragraphs (2) and (3) of section 9509(a) of COBRA, is amended by adding "and" at the end. (2) CAPITAUZATION.—Section 1903(m)(2)(F) of the Social Security Act (42 U.S.C. 1396b(m)(2)(F)), as amended by section 9517(a)(2)(A) of COBRA, is amended by striking out "in the case" and inserting in lieu thereof "In the case". (3) CASE-MANAGEMENT SERVICES.—(A) Section 1905(a) of the Social Security Act (42 U.S.C. 1395d(a)) is amended— (i) by striking out "and" at the end of paragraph (18), (ii) by redesignating paragraph (19) as paragraph (20), and (iii) by inserting after paragraph (18) the following new paragraph: "(19) case-management services (as defined in section 1915(g)(2)); and". (B) Section 1902(j) of the Social Security Act (42 U.S.C. 1396ag*)), as amended by section 9505(d)(l) of COBRA, is amended by striking out "(19)" and inserting in lieu thereof "(20)". (C) Section 1902(a)(10XCXiv) of the Social Security Act (42 U.S.C. 1396a(a)(10)(C)(iv)), as amended by section 9505(d)(2) of COBRA, is amended by striking out "through (18)" and inserting in lieu thereof "through (19). (4) HEALTH INSURING ORGANIZATIONS.—Section 9517(c)(2) of

COBRA is amended— (A) in subparagraph (A), by adding at the end the following: "For purposes of this paragraph, a health insuring organization is not considered to be operational until the date on which it first enrolls patients.";

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(B) in subparagraph (B), by striking out "(iv)" and inserting in lieu thereof "(vi)"; and (C) by adding at the end the following new subparagraph: "(C) In the case of the Hartford Health Network, Inc., clauses (ii) and (vi) of section 1903(mK2XA) of the Social Security Act shall not apply during the period for which a waiver by the Secretary of Health and Human Services, under section 1915(b) of such Act, of certain requirements of section 1902 of such Act is in effect (pursuant to a request for a waiver under section 19150?) of such Act submitted before January 1, 1986)." (5) REFERENCES TO OTHER PROVISIONS.—Section 1920(a) of

the

Social Security Act (42 U.S.C. 1396s(a)), as added by section 9526 of COBRA, is amended— (A) in paragraph (1)— (i) by redesignating subparagraphs (B) and (C) sis subparagraphs (C) and (D), respectively, and (ii) by inserting after "—(A)" the following: "Section 402(a)(32) of this Act (relating to individuals who are deemed recipients of aid but for whom a payment is not made). (B) in paragraph (2)— (i) by inserting "(A)" after the dash, and (ii) by adding at the end the following new subparagraph: "(B) Section 1634(b) of this Act (relating to preservation of benefit status for disabled widows and widowers who lost SSI benefits because of 1983 changes in actuarial reduction formula)."; and (C) in paragraph (3), by striking out "Section 47306)" and inserting in lieu thereof ^'Sections 472(h) and 473(b)". (6) REFERENCE CORRECTION.—Section 9528(a) of COBRA is amended by striking out "1101(a)(8)(P)" and inserting in lieu thereof "1101(a)(8)(B)". (7) INDENTATION.—Section 1902(a)(10XAXii)), of the Social Security Act (42 U.S.C. 1396a(a)(10XAXii)), as amended by sections 9505a)X2) and 95290bXl) of COBRA, is amended— (A) by indenting subclause (VII) two additional ems so as to £dign its left margin with the left margins of subclauses (I) through (VI) of such section, and (B) by indenting subclause (VIII) (and each of its subdivisions) four additional ems so as to align its left margin with the left margins of subclauses (I) through (VI) of such section. (d) AMENDMENTS RELATING TO CONTINUATION OF EMPLOYER-BASED HEALTH INSURANCE COVERAGE.— (1) EFFECT OF MODIFICATIONS TO PLAN COVERAGE PROVISIONS.—

(A) IRC AMENDMENT.—Subparagraph (A) of section 162(k)(2) (relating to type of benefit coverage) is amended by adding at the end the following: "If coverage under the plan is modified for any group of similarly situated beneficiaries, the coverage shall also be modified in the same manner for all individuals who are qualified beneficiaries under the plan pursuant to this subsection in connection with such group.". (B) ERISA AMENDMENT.—Paragraph (1) of section 602 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(1); 100 Stat. 228) is amended by adding at the

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end the following: "If coverage is modified under the plan for any group of similarly situated beneficiaries, such coverage shall also be modified in the same manner for all individuals who are qualified beneficiaries under the plan pursuant to this part in connection with such group." (C) PHSA AMENDMENT.—Paragraph (1) of section 2202 of the Public Health Service Act is amended by adding at the end the following: "If coverage is modified under the plan for any group of similarly situated beneficiaries, such coverage shall also be modified in the same manner for all individuals who are qualified beneficiaries under the plan pursuant to this part in connection with such group." (2) MAXIMUM REQUIRED PERIOD OF CONTINUATION COVERAGE.—

(A) IRC AMENDMENT.—Clause (i) of section 162(k)(2)(B) (relating to maximum period of coverage) is amended to read as follows: "(i) MAXIMUM REQUIRED PERIOD^ "(I) GENERAL RULE FOR TERMINATIONS AND REDUCED HOURS.—In the case of a qualifying event

described in paragraph (3)(B), except as provided in subclause (II), the date which is 18 months after the date of the qualifying event. "(II)

SPECIAL RULE FOR MULTIPLE QUALIFYING

EVENTS.—If a qualifying event occurs during the 18 months after the date of a qualifying event described in paragraph (3)(B), the date which is 36 months after the date of the qualifying event described in paragraph (3)(B). "(Ill) GENERAL RULE FOR OTHER QUALIFYING EVENTS.—In the case of a qualifying event not described in paragraph (3)(B), the date which is 36 months after the date of the qualifying event." (B) ERISA AMENDMENT.—Subparagraph (A) of section 602(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2); 100 Stat. 228) is amended to read as follows: "(A) MAXIMUM REQUIRED PERIOD.— "(i) GENERAL RULE FOR TERMINATIONS AND REDUCED

HOURS.—In the case of a qualifying event described in section 603(2), except as provided in clause (ii), the date which is 18 months after the date of the qualif)ring event. "(ii)

SPECIAL

RULE

FOR

MULTIPLE

QUALIFYING

EVENTS.—If a qualifying event occurs during the 18 months after the date of a qualifying event described in section 603(2), the date which is 36 months after the date of the qualifying event described in section 603(2). "(iii) GENERAL RULE FOR OTHER QUALIFYING EVENTS.— In the case of a qualifying event not described in section 603(2), the date which is 36 months after the date of the qualifying event." (C) PHSA AMENDMENT.—Subparagraph (A) of section 2202(2) of the Public Health Service Act is amended to read as follows: "(A) MAXIMUM REQUIRED PERIOD.— "(i) GENERAL RULE FOR TERMINATIONS AND REDUCED

HOURS.—In the case of a qualifying event described in

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1130

 100 STAT. 2938

PUBLIC LAW 99-514—OCT. 22, 1986 section 2203(2), except as provided in clause (ii), the date which is 18 months after the date of the qualifying event. "(ii)

SPECIAL

RULE

FOR

MULTIPLE

QUALIFYING

EVENTS.—If a qualifying event occurs during the 18 months after the date of a qualifying event described in section 2203(2), the date which is 36 months after the date of the qualifying event described in section 2203(2). "(iii) GENERAL RULE FOR OTHER QUALIFYING EVENTS.— In the case of a qualifying event not described in section 2203(2), the date which is 36 months after the date of the qualifying event." (3) GRACE PERIOD FOR PAYMENT OF PREMIUMS.—

(A) IRC AMENDMENT.—Clause (iii) of section 162(k)(2)(B) (relating to failure to pay premium) is amended by adding at the end the following: "The payment of any premium (other than any payment referred to in the last sentence of subparagraph (C)) shall be considered to be timely if made within 30 days after the date due or within such longer period as applies to or under the plan.". (B) ERISA AMENDMENT.—Subparagraph (C) of section 602(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(C); 100 Stat. 228) is amended by adding at the end the following: "The payment of any premium (other than any payment referred to in the last sentence of paragraph (3)) shall be considered to be timely if made within 30 days after the date due or within such longer period as applies to or under the plan." (C) PHSA AMENDMENT.—Subparagraph (C) of section 2202(2) of the Public Health Service Act is amended by adding at the end the following: "The payment of any premium (other than any payment referred to in the last sentence of paragraph (3)) shall be considered to be timely if made within 30 days after the date due or within such longer period as applies to or under the plan." (4) TERMINATION OF CONTINUATION COVERAGE UPON COVERAGE BY OTHER GROUP HEALTH PLAN RATHER THAN UPON REEMPLOYMENT OR REMARRIAGE.—

(A) IRC AMENDMENT.—Subparagraph (B) of section 162(k)(2) (relating to period of coverage) is amended— (i) by striking out clause (v); and (ii) by striking out subclause (I) of clause (iv) and inserting in lieu thereof the following: "(I) covered under any other group health plan (as an employee or otherwise), or '; and (iii) by striking out the heading for clause (iv) and inserting in lieu thereof the following: "GROUP HEALTH PLAN COVERAGE OR MEDICARE ELIGIBILITY.—".

(B) ERISA AMENDMENT.—Section 602(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2); 100 Stat. 228) is amended— (i) by striking out subparagraph (E); (ii) by striking out clause (i) of subparagraph (D) and inserting in lieu thereof the following: "(i) covered under any other group health plan (as an employee or otherwise), or"; and

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1131

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2939

(iii) by striking out the heading for subparagraph (D) and inserting in lieu thereof the following: "GROUP HEALTH PLAN COVERAGE OR MEDICARE ELIGIBILITY.—".

(C) PHSA AMENDMENT.—Section 2202(2) of the Public Health Service Act is amended— (i) by striking out subparagraph (E); (ii) by striking out clause (i) of subparagraph (D) and inserting in lieu thereof the following: "(i) covered under any other group health plan (as an employee or otherwise), or"; and (iii) by striking out the heading for subparagraph (D) and inserting in lieu thereof the following: "GROUP HEALTH PLAN COVERAGE OR MEDICARE ELIGIBILITY.—". (5) CLARIFICATION RELATING TO ELECTION BY BENEFICIARIES.—

(A) IRC AMENDMENT.—Subparagraph (B) of section 162(k)(2) (relating to effect of election on other beneficiaries) is amended— (i) by inserting "of continuation coverage" after "any election"; and (ii) by adding at the end the following: "If there is a choice among types of coverage under the plan, each qualified beneficiary is entitled to make a separate selection among such types of coverage.". (B) ERISA AMENDMENT.—Section 605(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1165(2); 100 Stat. 230) is amended— (i) by inserting "of continuation coverage" after "any election"; and (ii) by adding at the end the following: "If there is a choice among t5rpes of coverage under the plan, each qualified beneficiary is entitled to make a separate selection among such types of coverage.''. (C) PHSA AMENDMENT.—Section 2205(2) of the Public Health Service Act is amended— (i) by inserting "of continuation coverage" after "any election"; and (ii) by adding at the end the following: "If there is a choice among types of coverage under the plan, each qualified beneficiary is entitled to make a separate selection among such t3T)es of coverage.". (6) NOTICE REQUIREMENT.—

(A) IRC AMENDMENT.—Subparagraph (C) of section 162(k)(6) (relating to notice requirements) is amended by inserting "within 60 days after the date of the qualifying event" after "paragraph (3)". (B) ERISA AMENDMENT.—Paragraph (3) of section 606 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1166(3); 100 Stat. 230) is amended by inserting "within 60 days after the date of the qualifying event" after "section 603". (C) PHSA AMENDMENT.—Paragraph (3) of section 2206 of the Public Health Service Act is amended by inserting "within 60 days after the date of the qualifying event" after "section 603". (D) EFFECTIVE DATE.—The amendments made by this paragraph shall only apply with respect to qualifying events occurring after the date of the enactment of this Act.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/1132

 100 STAT. 2940

PUBLIC LAW 99-514—OCT. 22, 1986 (7)

NONRESIDENT AUENS.—Subparagraph

(B)

of

section

162(k)(7) (relating to qualified beneficiaries) is amended by adding at the end thereof the following new clause: "(iii) EXCEPTION FOR NONRESIDENT AUENS.—Notwithstanding clauses (i) and (ii), the term 'qualified beneficiary' does not include an individual whose status as a •3^ ' covered employee is attributable to a period in which such individual was a nonresident alien who received fts -J' no earned income (within the meaning of section 911(d)(2)) from the employer which constituted income from sources within the United States (within the meaning of section 861(a)(3)). If an individual is not a qualified beneficiary pursuant to the previous sentence, a spouse or dependent child of such individual shall not be considered a qualified beneficiary by virtue of the relationship to the individual.". (8) DEFINITION OF GROUP HEALTH PLAN FOR ERISA.—Paragraph (1) of section 607 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1167(1); 100 Stat. 231) is amended to read as follows: "(1) GROUP HEALTH PLAN.—The term 'group health plan' means an employee welfare benefit plan providing medical care (as defined in section 213(d) of the Internal Revenue Code of 1954) to participants or beneficiaries directly or through insurance, reimbursement, or otherwise.". (9) AGGREGATION RULES FOR EMPLOYER FOR ERISA.—

(A) IN GENERAL.—Section 607 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1167; 100 Stat. 231) is amended by adding at the end the following new paragraph: "(4) EMPLOYER.—Subsection (n) (relating to leased employees) and subsection (t) (relating to application of controlled group rules to certain employee benefits) of section 414 of the Internal Revenue Code of 1986 shall apply for purposes of this part in the same manner and to the same extent as such subsections apply for purposes of section 106 of such Code. Any regulations prescribed by the Secretary pursuant to the preceding sentence shall be consistent and coextensive with any regulations prescribed for similar purposes by the Secretary of the Treasury (or such Secretary's delegate) under such subsections.". (B) EFFECTIVE DATE.—The amendment made by subparagraph (A) shall take effect in the same manner and to the same extent as the amendments made by subsections (e) and (i) of section 1151 of this Act. (e) EFFECTIVE DATE.—Except as otherwise provided in this section, the amendments made by this section shall be effective as if included in the enactment of the Consolidated Omnibus Budget Reconciliation Act of 1985. SEC. 1896. EXTENSION OF TIME FOR FILING FOR CREDIT OR REFUND WITH RESPECT TO CERTAIN CHANGES INVOLVING INSOLVENT FARMERS.

Section 13208 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (relating to certain insolvent taxpayers allowed to reduce capital gains preference item for purposes of the individual minimum tax) is amended by adding at the end thereof the following new subsection:

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