Page:United States Statutes at Large Volume 100 Part 1.djvu/352

 100 STAT. 316 26 USC 3125. 26 USC 6413.

PUBLIC LAW 99-272—APR. 7, 1986 either, who makes a return pursuant to section 3125 shall be deemed a separate employer." (ii) Section 6413(c)(2) (relating to special refunds of certain employment taxes) is amended— (I) by striking out "3125(a)", "3125(b)", and "3125(c)" in subparagraphs (D), (E), and (F), respectively, and inserting in lieu thereof "3125(b)", "3125(c)", and "3125(d)^', respectively, and (II) by adding at the end thereof the following new subparagraph: "(G) EMPLOYEES OF STATES AND POLITICAL SUBDIVISIONS.—

In the case of remuneration received from a State or any political subdivision thereof (or any instrumentality of any one or more of the foregoing which is wholly owned thereby) during any calendar year, each head of an agency or instrumentality, and each agent designated by either, who makes a return pursuant to section 3125(a) shall, for purposes of this subsection, be deemed a separate employer." (b) ENTITLEMENT TO HOSPITAL INSURANCE BENEFITS.— (1) REVISION OF DEFINITION OF MEDICARE QUALIFIED GOVERN-

MENT EMPLOYMENT.—Section 210(p)) of the Social Security Act (42 U.S.C. 410(p)) is amended to read as follows: "MEDICARE QUALIFIED GOVERNMENT EMPLOYMENT

State and local governments. 426^1 ^^^'

42 USC 418.

"(p)(l) For purposes of sections 226 and 226A, the term 'medicare qualified government employment' means any service which would constitute 'employment' as defined in subsection (a) of this section but for the application of the provisions of— "(A) subsection (a)(5), or "(B) subsection (a)(7), except as provided in paragraphs (2) and (3). "(2) Service shall not be treated as employment by reason of paragraph (1)(B) if the service is performed— "(A) by an individual who is employed by a State or political subdivision thereof to relieve him from unemployment, "(B) in a hospital, home, or other institution by a patient or inmate thereof as an employee of a State or political subdivision thereof or of the District of Columbia, "(C) by an individual, as an employee of a State or political subdivision thereof or of the District of Columbia, serving on a temporary basis in case of fire, storm, snow, earthquake, flood or other similar emergency, or "(D) by any individual as an employee included under section 5351(2) of title 5, United States Code (relating to certain interns, student nurses, and other student employees of hospitals of the District of Columbia Government), other than as a medical or dental intern or a medical or dental resident in training. As used in this paragraph, the terms 'State' and 'political subdivision' have the meanings given those terms in section 218(b). "(3) Service performed for an employer shall not be treated as employment by reason of paragraph (1)(B) if— "(A) such service would be excluded from the term 'employment' for purposes of this section if paragraph (1)(B) did not apply; "(B) such service is performed by an individual—

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