[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1035 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1035

   To amend the Internal Revenue Code of 1986 to encourage multiple 
    employer arrangements to provide basic health benefits through 
eliminating commonality of interest or geographic location requirement 
                      for tax exempt trust status.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 1995

Mrs. Meyers of Kansas introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to encourage multiple 
    employer arrangements to provide basic health benefits through 
eliminating commonality of interest or geographic location requirement 
                      for tax exempt trust status.

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

SECTION 1. ELIMINATING COMMONALITY OF INTEREST OR GEOGRAPHIC LOCATION 
              REQUIREMENT FOR TAX EXEMPT TRUST STATUS.

    (a) In General.--Paragraph (9) of section 501(c) of the Internal 
Revenue Code of 1986 (relating to exempt organizations) is amended--
            (1) by inserting ``(A)'' after ``(9)''; and
            (2) by adding at the end the following:
            ``(B) Any determination of whether--
                    ``(i) an exempted multiple employer health plan (as 
                defined in section 701(9) of the Employee Retirement 
                Income Security Act of 1974, as added by the ERISA 
                Targeted Health Insurance Reform Act of 1995), or
                    ``(ii) a multiple employer welfare arrangement 
                (within the meaning of section 3(40) of the Employee 
                Retirement Income Security Act of 1974) under which 
                coverage is fully insured (within the meaning of 
                section 701(8) of such Act, as added by the ERISA 
                Targeted Health Insurance Reform Act of 1995) and 
                consists of medical care (as defined in section 
                213(d)),
        is a voluntary employees' beneficiary association meeting the 
        requirements of this paragraph shall be made without regard to 
        any determination of commonality of interest or geographic 
        location.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to determinations made on or after January 1, 1997.
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