Page:United States Statutes at Large Volume 113 Part 3.djvu/431

 PUBLIC LAW 106-170—DEC. 17, 1999 113 STAT. 1949 "(i) IN GENERAL.—The term 'qualified health care property' means any real property (including interests therein), and any personal property incident to such real property, which— "(I) is a health care facility, or "(11) is necessary or incidental to the use of r* a health care facility. "(ii) HEALTH CARE FACILITY.—For purposes of clause (i), the term 'health care facility' means a hospital, nursing facility, assisted living facility, congregate care facility, qualified continuing care facility (as defined in section 7872(g)(4)), or other licensed facility which extends medical or nursing or ancillary services to patients and which, immediately before the termination, expiration, default, or breach of the lease of or mortgage secured by such facility, was operated by a provider of such services which was eligible for participation in the medicare program under title XVIII of the Social Security Act with respect to such facility.", (b) EFFECTIVE DATE. —The amendment made by this section 26 USC 856 note, shall apply to taxable years beginning after December 31, 2000. Subpart C—Conformity Witti Regulated Investment Company Rules SEC. 556. CONFORMITY WITH REGULATED USVESTMENT COMPANY RULES. (a) DISTRIBUTION REQUIREMENT. — Clauses (i) and (ii) of section 857(a)(1)(A) of the Internal Revenue Code of 1986 (relating to 26 USC 857. requirements applicable to real estate investment trusts) are each amended by striking "95 percent (90 percent for taxable years beginning before January 1, 1980)" and inserting "90 percent". (b) IMPOSITION OF TAX.— Clause (i) of section 857(b)(5)(A) of such Code (relating to imposition of tax in case of failure to meet certain requirements) is amended by striking "95 percent (90 percent in the case of taxable years beginning before January 1, 1980)" and inserting "90 percent". (c) EFFECTIVE DATE.— The amendments made by this section 26 USC 857 note. shall apply to taxable years beginning after December 31, 2000. Subpart D—Clarification of Exception From Impermissible Tenant Service Income SEC. 561. CLARIFICATION OF EXCEPTION FOR INDEPENDENT OPERA- TORS. (a) IN GENERAL. — Paragraph (3) of section 856(d) of the Internal Revenue Code of 1986 (relating to independent contractor defined) 26 USC 856. is amended by adding at the end the following flush sentence: "In the event that any class of stock of either the real estate investment trust or such person is rcigularly traded on an established securities market, only persons who own, directly or indirectly, more than 5 percent of such class of stock shall be taken into account as owning any of the stock of such class for purposes of applying the 35 percent limitation set forth in subparagraph (B) (but all of the outstanding stock

�