[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2482 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2482

    To amend the Internal Revenue Code of 1986 to designate certain 
   entities organized to participate in State workmen's compensation 
         assigned risk insurance plans as tax-exempt entities.


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                   IN THE SENATE OF THE UNITED STATES

                           September 16, 1998

  Mr. Cochran introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to designate certain 
   entities organized to participate in State workmen's compensation 
         assigned risk insurance plans as tax-exempt entities.

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

SECTION 1. TAX-EXEMPT STATUS FOR CERTAIN ENTITIES ORGANIZED TO 
              PARTICIPATE IN STATE WORKMEN'S COMPENSATION ASSIGNED RISK 
              INSURANCE PLANS.

    (a) In General.--Paragraph (27) of section 501(c) of the Internal 
Revenue Code of 1986 (relating to a list of exempt organizations) is 
amended by adding at the end the following new subparagraph:
            ``(C) Any membership organization, if such organization--
                    ``(i) is established exclusively to provide, 
                directly or through reinsurance, workmen's compensation 
                insurance and related incidental coverage pursuant to 
                the terms of a State workmen's compensation assigned 
                risk plan,
                    ``(ii) is a State approved means of complying with 
                State law which requires such organization's members to 
                participate in a State workmen's compensation assigned 
                risk plan as a condition of obtaining a license to 
                conduct business in such State,
                    ``(iii) the operations of which are subject to the 
                authority of such State's insurance regulatory 
                officials, and
                    ``(iv) operates as a non-profit organization by 
                returning surplus income to its members or workmen's 
                compensation policyholders on a periodic basis.
        For purposes of subparagraph (C), the term `State workmen's 
        compensation assigned risk plan' refers to a program 
        established by State law or approved by State insurance 
        regulatory authorities by which workmen's compensation 
        insurance may be obtained, subject to reasonable eligibility 
        requirements, by employers who are unable to secure such 
        insurance through ordinary commercial means.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1998.
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