[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1667 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1667

To amend the Internal Revenue Code of 1986 to clarify the special rules 
for accident and health plans of certain governmental entities, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2015

 Ms. Cantwell (for herself, Mr. Crapo, Ms. Klobuchar, and Mrs. Murray) 
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 clarify the special rules 
for accident and health plans of certain governmental entities, and for 
                            other purposes.

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

SECTION 1. CLARIFICATION OF SPECIAL RULE FOR CERTAIN GOVERNMENTAL 
              PLANS.

    (a) In General.--Paragraph (1) of section 105(j) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``the taxpayer'' and inserting ``a 
        qualified taxpayer'', and
            (2) by striking ``deceased plan participant's beneficiary'' 
        and inserting ``deceased employee's beneficiary (other than an 
        individual described in paragraph (3)(B))''.
    (b) Qualified Taxpayer.--Subsection (j) of section 105 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(3) Qualified taxpayer.--For purposes of paragraph (1), 
        with respect to an accident or health plan described in 
        paragraph (2), the term `qualified taxpayer' means a taxpayer 
        who is--
                    ``(A) an employee, or
                    ``(B) the spouse, dependent (as defined for 
                purposes of subsection (b)), or child (as defined for 
                purposes of such subsection) of an employee.''.
    (c) Application to Political Subdivisions of States.--Paragraph (2) 
of section 105(j) of the Internal Revenue Code of 1986 is amended--
            (1) by inserting ``or established by or on behalf of a 
        State or political subdivision thereof'' after ``public 
        retirement system'', and
            (2) by inserting ``or 501(c)(9)'' after ``section 115'' in 
        subparagraph (B).
    (d) Effective Date.--The amendments made by this section shall 
apply to payments after the date of the enactment of this Act.
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