Page:United States Statutes at Large Volume 100 Part 3.djvu/695

 PUBLIC LAW 99-514—OCT. 22, 1986

h

100 STAT. 2503

"(A) the highest rate of tax imposed by section 1 for taxable years beginning in the calendar year to which the return or statement relates, multiplied by "(B) the employer-provided benefit (within the meaning of section 89 without regard to subsection (g)(3) thereof) with respect to the employee to whom such failure relates. "(3) REASONABLE CAUSE EXCEPTION.—Paragraph (1) shall not apply to any failure if it is shown that such failure is due to reasonable cause. "(4)

COORDINATION WITH OTHER PENALTIES.—Any

penalty

under this subsection shall be in addition to any other penalty under this section or section 6678 with respect to any failure. "(5) ONLY i ADDITION PER EMPLOYEE PER YEAR.—Paragraph (1)

shall be applied only once if there is more than 1 failure with respect to any amount." (c) REPEAL OF CERTAIN EXISTING NONDISCRIMINATION RULES.— (1) DISCRIMINATORY GROUP-TERM LIFE INSURANCE PLANS.—

Subsection (d) of section 79 is amended to read as follows: "(d) NONDISCRIMINATION REQUIREMENTS.—In the case of a groupterm life insurance plan which is a discriminatory employee benefit plan, subsection (a)(1) shall apply only to the extent provided in section 89." (2)

DISCRIMINATORY

SELF-INSURED

MEDICAL

EXPENSE RE-

IMBURSEMENT PLANS.—Section 105 (relating to amounts received under accident and health plans) is amended by striking out subsection (h) and by redesignating subsection (i) as subsection (h). (3) QUALIFIED GROUP LEGAL SERVICES PLANS.—Section 120(b) (defining qualified group legal services plan) is amended to read as follows: "(b) QUALIFIED GROUP LEGAL SERVICES PLAN.—For purposes of this section, a qualified group legal services plan is a separate plan of an employer— "(1) under which the employer provides specified personal legal services to employees (or their spouses or dependents) through the prepayment of, or the provision in advance for, any portion of the legal fees for such services, and "(2) which meets the requirements of subsection (c) and section 89(k)." (4) EDUCATIONAL ASSISTANCE PROGRAMS.—Section 127(b) (relat-

ing to educational assistance programs) is amended— (A) by striking out paragraph (1) and inserting in lieu thereof the following new paragraph: "(1) IN GENERAL.—For purposes of this section, an educational assistance program is a plan of an employer— "(A) under which the employer provides employees with educational assistance, and "(B) which meets the requirements of paragraphs (2) Iji^j. through (5) and section 89(k).", and (B) by striking out paragraph (6) thereof. (5) DEPENDENT CARE ASSISTANCE PROGRAMS.—Section 129(d) (relating to dependent care assistance program) is amended— (A) by striking out paragraph (1) and inserting in lieu thereof the following new paragraph: "(1) IN GENERAL.—For purposes of this section, a dependent care assistance program is a plan of an employer—

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