Page:United States Statutes at Large Volume 102 Part 4.djvu/649

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3619

"(5) WAIVER BY SECRETARY.—In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive relative to the failure involved. "(d) TAX NOT TO APPLY TO CERTAIN PLANS.—This section shall not apply to— "(1) any failure of a group health plan to meet the requirements of subsection (f) if all employers maintaining such plan normally employed fewer than 20 employees on a typical business day during the preceding calendar year, "(2) any governmental plan (within the meaning of section 414(d)), or "(3) any church plan (within the meaning of section 414(e)). "(e) LIABILITY FOR TAX.—

"(1) IN GENERAL.—Except as otherwise provided in this subsection, the following shall be liable for the tax imposed by subsection (a) on a failure: "(A)(i) In the case of a plan other than a multiemployer plan, the employer. "(ii) In the case of a multiemployer plan, the plan. "(B) Each person who is responsible (other than in a capacity as an employee) for administering or providing benefits under the plan and whose act or failure to act caused (in whole or in part) the failure. "(2) SPECIAL RULES FOR PERSONS DESCRIBED IN PARAGRAPH (l)(B).— "(A) No LIABILITY UNLESS WRITTEN AGREEMENT.—Except

in the case of liability resulting from the application of subparagraph (B) of this paragraph, a person described in subparagraph (B) (and not in subparagraph (A)) of paragraph (1) shall be liable for the tax imposed by subsection (a) on any failure only if such person assumed (under a legally enforceable written agreement) responsibility for the performance of the act to which the failure relates. "(B) FAILURE TO COVER QUALIFIED BENEFICIARIES WHERE CURRENT EMPLOYEES ARE COVERED.—A person shall be

treated as described in paragraph (1KB) with respect to a qualified beneficiary if— "(i) such person provides coverage under a group health plan for any similarly situated beneficiary under the plan with respect to whom a qualifying event has not occurred, and "(ipthe— "(I) employer or plan administrator, or "(11) in the case of a qualifying event described in subparagraph (C) or (E) of subsection (fK3) where the person described in clause (i) is the plan administrator, the qualified beneficiary, submits to such person a written request that such person make available to such qualified beneficiary the same coverage which such person provides to the beneficiary referred to in clause (i). "(f) CONTINUATION COVERAGE REQUIREMENTS OF GROUP HEALTH PLANS.—

"(1) IN GENERAL.—A group health plan meets the requirements of this subsection only if each qualified beneficiary who

'

�