Page:United States Statutes at Large Volume 102 Part 4.djvu/655

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3625

(3) Section 162 of the 1986 Code is amended by striking out subsection (k) and by redesignating— (A) the subsection relating to stock redemption expenses as subsection (k), (B) the subsection relating to special rules for health insurance costs of self-employed individuals as subsection (l),and (C) the subsection relating to cross references as subsection (m). (4) Subparagraph (C) of section 414(n)(3) of the 1986 Code, as amended by section lllB(a) of this Act, is amended by striking out "162(i)(2), 162(k)(2)," and by striking out "and 505" and inserting in lieu thereof "505, and 4980B". (5) Paragraph (2) of section 414(t) of the 1986 Code, as amended by section lllB(a) of this Act, is amended by striking . out "162(i)(2), 162(k)(2)," and by striking out "or 505" and inserting in lieu thereof "505, or 4980B". (6) Paragraph (1) of section 607 of the Employee Retirement Income Security Act of 1974 is amended by striking out "section 29 USC 1167. 162(i)(3) of the Internal Revenue Code of 1954" and inserting in lieu thereof "section 162(i)(2) of the Internal Revenue Code of 1986". (7) Paragraph (1) of section 2208 of the Public Health Service Act is amended by striking out "section 162(i)(3) of the Internal 42 USC 300bb-8. Revenue Code of 1954" and inserting in lieu thereof "section 162(i)(2) of the Internal Revenue Code of 1986". (c) CLERICAL AMENDMENT.—The table of sections for chapter 43 of the 1986 Code is amended by adding at the end thereof the following new item: "Sec. 4980B. Failure to satisfy continuation coverage requirements of group health plans." (d) EFFECTIVE DATE.—The amendments made by this section shall

apply to taxable years beginning after December 31, 1988, but shall not apply to any plan for any plan year to which section 162(k) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act) did not apply by reason of section 10001(e)(2) of the Consolidated Omnibus Budget Reconciliation Act of 1985.

Subtitle C—Employee BeneHt Nondiscrimination Rules SEC. 3021. MODIFICATIONS TO DISCRIMINATION RULES APPLICABLE TO CERTAIN EMPLOYEE BENEFIT PLANS. (a) MODIFICATIONS TO SECTION 89.— (1) DETERMINATIONS BASED ON TESTING YEAR.—

(A) Section 89 of the 1986 Code (as amended by title I) is amended by striking out "plan year" each place it appears .; and inserting in lieu thereof "testing year". ^ (B) Subsection (j) of section 89 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(13) TESTING YEAR.—The term 'testing year' means— "(A) any 12-month period beginning with the calendar month designated in the plan for purposes of this section, or

26 USC 162 note.

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