26 U.S.C. § 9721 — Civil enforcement

Page 4171 TITLE 26—INTERNAL REVENUE CODE § 9721 and potentially eligible beneficiaries attrib- utable to the operator. (2) Adjustments The 1992 UMWA Benefit Plan shall provide for— (A) annual adjustments of the per bene- ficiary premium to cover changes in the cost of providing benefits to eligible bene- ficiaries, and (B) adjustments as necessary to the annual backstop premium to reflect changes in the cost of providing benefits to eligible bene- ficiaries for whom per beneficiary premiums are not paid. (3) Additional liability Any last signatory operator who is not a 1988 last signatory operator shall pay the monthly per beneficiary premium under paragraph (1)(A) for each eligible beneficiary described in such paragraph attributable to that operator. (4) Joint and several liability A 1988 last signatory operator or last signa- tory operator described in paragraph (3), and any related person to any such operator, shall be jointly and severally liable with such oper- ator for any amount required to be paid by such operator under this section. The provi- sions of section 9711(c)(2) shall apply to any last signatory operator described in such sec- tion (without regard to whether security is provided under such section, a payment is made under section 9704(j), or both) and if se- curity meeting the requirements of section 9711(c)(3) is provided, the common parent de- scribed in section 9711(c)(2)(B) shall be exclu- sively responsible for any liability for pre- miums under this section which, but for this sentence, would be required to be paid by the last signatory operator or any related person. (5) Deductibility Any premium required by this section shall be deductible without regard to any limitation on deductibility based on the prefunding of health benefits. (6) 1988 last signatory operator For purposes of this section, the term ‘‘1988 last signatory operator’’ means a last signa- tory operator which is a 1988 agreement oper- ator. (Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3053; amended Pub. L. 109–432, div. C, title II, §§ 211(c), 212(b)(1)–(2)(B), Dec. 20, 2006, 120 Stat. 3023, 3025, 3026; Pub. L. 115–141, div. U, title IV, § 401(a)(348), Mar. 23, 2018, 132 Stat. 1201.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsec. (c)(3)(C), (D), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title XVIII of the Act is classified generally to sub- chapter XVIII (§ 1395 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete classi- fication of this Act to the Code, see section 1305 of Title 42 and Tables. AMENDMENTS 2018—Subsec. (a)(4)(A). Pub. L. 115–141 inserted ‘‘sec- tion 402 of’’ after ‘‘subsections (h) and (i) of’’. 2006—Subsec. (a)(3), (4). Pub. L. 109–432, § 212(b)(1), added pars. (3) and (4). Subsec. (d)(1). Pub. L. 109–432, § 212(b)(2)(A), amended text of par. (1) generally. Prior to amendment, par. (1) provided that the contribution requirements of all 1988 last signatory operators include the payment of an an- nual prefunding premium for all eligible and poten- tially eligible beneficiaries, payment of a monthly per beneficiary premium, and provision of security. Subsec. (d)(2)(B). Pub. L. 109–432, § 212(b)(2)(B)(i), sub- stituted ‘‘backstop’’ for ‘‘prefunding’’. Subsec. (d)(3). Pub. L. 109–432, § 212(b)(2)(B)(ii), sub- stituted ‘‘paragraph (1)(A)’’ for ‘‘paragraph (1)(B)’’. Subsec. (d)(4). Pub. L. 109–432, § 211(c), inserted at end ‘‘The provisions of section 9711(c)(2) shall apply to any last signatory operator described in such section (with- out regard to whether security is provided under such section, a payment is made under section 9704(j), or both) and if security meeting the requirements of sec- tion 9711(c)(3) is provided, the common parent described in section 9711(c)(2)(B) shall be exclusively responsible for any liability for premiums under this section which, but for this sentence, would be required to be paid by the last signatory operator or any related person.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–432, div. C, title II, § 212(b)(2)(C), Dec. 20, 2006, 120 Stat. 3026, provided that: ‘‘The amendments made by this paragraph [amending this section] shall apply to fiscal years beginning on or after October 1, 2010.’’ Subchapter D—Other Provisions Sec. 9721. Civil enforcement. 9722. Sham transactions. § 9721. Civil enforcement The provisions of section 4301 of the Employee Retirement Income Security Act of 1974 shall apply, in the same manner as any claim arising out of an obligation to pay withdrawal liability under subtitle E of title IV of such Act, to any claim— (1) arising out of an obligation to pay any amount required to be paid by this chapter; or (2) arising out of an obligation to pay any amount required by section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(5)(B)(ii)). (Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3055; amended Pub. L. 109–432, div. C, title II, § 213(b)(2), Dec. 20, 2006, 120 Stat. 3027.) Editorial Notes REFERENCES IN TEXT The Employee Retirement Income Security Act of 1974, referred to in text, is Pub. L. 93–406, Sept. 2, 1974, 88 Stat. 829. Subtitle E of title IV of the Act is classi- fied generally to subtitle E (§ 1381 et seq.) of subchapter III of chapter 18 of Title 29, Labor. Section 4301 of the Act is classified to section 1451 of Title 29. For com- plete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Ta- bles. AMENDMENTS 2006—Pub. L. 109–432 reenacted section catchline without change and amended text generally. Prior to amendment, text read as follows: ‘‘The provisions of section 4301 of the Employee Retirement Income Secu- Page 4172 TITLE 26—INTERNAL REVENUE CODE § 9722 1 Section number editorially supplied. 1 Section numbers editorially supplied. rity Act of 1974 shall apply to any claim arising out of an obligation to pay any amount required to be paid by this chapter in the same manner as any claim arising out of an obligation to pay withdrawal liability under subtitle E of title IV of such Act. For purposes of the preceding sentence, a signatory operator and related persons shall be treated in the same manner as employ- ers.’’ § 9722. Sham transactions If a principal purpose of any transaction is to evade or avoid liability under this chapter, this chapter shall be applied (and such liability shall be imposed) without regard to such transaction. (Added Pub. L. 102–486, title XIX, § 19143(a), Oct. 24, 1992, 106 Stat. 3056.) Subtitle K—Group Health Plan Requirements Chapter Sec.1 100. Group health plan requirements ........... 9801 Editorial Notes AMENDMENTS 1997—Pub. L. 105–34, title XV, § 1531(a)(1), Aug. 5, 1997, 111 Stat. 1080, struck out ‘‘Portability, Access, and Re- newability’’ before ‘‘Requirements’’ in subtitle heading and made similar change in item for chapter 100. CHAPTER 100—GROUP HEALTH PLAN REQUIREMENTS Subchapter Sec.1 A. Requirements relating to portability, access, and renewability .................... 9801 B. Other requirements ............................... 9811 C. General provisions ................................. 9831 Editorial Notes AMENDMENTS 1997—Pub. L. 105–34, title XV, § 1531(a)(1), Aug. 5, 1997, 111 Stat. 1080, struck out ‘‘PORTABILITY, ACCESS, AND RENEWABILITY’’ in chapter heading and added analysis for chapter. Subchapter A—Requirements Relating to Portability, Access, and Renewability Sec. 9801. Increased portability through limitation on preexisting condition exclusions. 9802. Prohibiting discrimination against individual participants and beneficiaries based on health status. 9803. Guaranteed renewability in multiemployer plans and certain multiple employer wel- fare arrangements. [9804 to 9806. Renumbered.] Editorial Notes AMENDMENTS 1997—Pub. L. 105–34, title XV, § 1531(a)(1), Aug. 5, 1997, 111 Stat. 1081, added subchapter heading and items 9801 to 9803 and struck out former items 9801 ‘‘Increased portability through limitation on preexisting condition exclusions’’, 9802 ‘‘Prohibiting discrimination against individual participants and beneficiaries based on health status’’, 9803 ‘‘Guaranteed renewability in mul- tiemployer plans and certain multiple employer wel- fare arrangements’’, 9804 ‘‘General exceptions’’, 9805 ‘‘Definitions’’, and 9806 ‘‘Regulations’’. § 9801. Increased portability through limitation on preexisting condition exclusions (a) Limitation on preexisting condition exclusion period; crediting for periods of previous cov- erage Subject to subsection (d), a group health plan may, with respect to a participant or bene- ficiary, impose a preexisting condition exclusion only if— (1) such exclusion relates to a condition (whether physical or mental), regardless of the cause of the condition, for which medical ad- vice, diagnosis, care, or treatment was rec- ommended or received within the 6-month pe- riod ending on the enrollment date; (2) such exclusion extends for a period of not more than 12 months (or 18 months in the case of a late enrollee) after the enrollment date; and (3) the period of any such preexisting condi- tion exclusion is reduced by the length of the aggregate of the periods of creditable coverage (if any) applicable to the participant or bene- ficiary as of the enrollment date. (b) Definitions For purposes of this section— (1) Preexisting condition exclusion (A) In general The term ‘‘preexisting condition exclu- sion’’ means, with respect to coverage, a limitation or exclusion of benefits relating to a condition based on the fact that the condition was present before the date of en- rollment for such coverage, whether or not any medical advice, diagnosis, care, or treat- ment was recommended or received before such date. (B) Treatment of genetic information For purposes of this section, genetic infor- mation shall not be treated as a condition described in subsection (a)(1) in the absence of a diagnosis of the condition related to such information. (2) Enrollment date The term ‘‘enrollment date’’ means, with re- spect to an individual covered under a group health plan, the date of enrollment of the indi- vidual in the plan or, if earlier, the first day of the waiting period for such enrollment. (3) Late enrollee The term ‘‘late enrollee’’ means, with re- spect to coverage under a group health plan, a participant or beneficiary who enrolls under the plan other than during— (A) the first period in which the individual is eligible to enroll under the plan, or (B) a special enrollment period under sub- section (f). (4) Waiting period The term ‘‘waiting period’’ means, with re- spect to a group health plan and an individual who is a potential participant or beneficiary in the plan, the period that must pass with re-