Page:United States Statutes at Large Volume 122.djvu/915

 12 2 STA T .89 2 PUBLIC LA W 11 0– 2 3 3 —M A Y 21, 2008 ‘ ‘ (I I )endi n go n th ed a te the f ai lur ei sc orrected . ‘‘( C ) MIN I MU M PE N ALT IE SWH E R E F AILURE D IS COV- ERED. —N ot w ithstanding clauses (i) and (ii) of su bp ara- graph ( D )

‘‘(i) IN G ENERAL.—In the case of 1 or m ore failures with respect to an indi v idual— ‘‘(I) which are not corrected before the date on which the plan receives a notice from the S ec- retar y of such violation and ‘‘(II) which occurred or continued during the period involved; the amount of penalty imposed by subparagraph ( A ) by reason of such failures with respect to such indi- vidual shall not be less than $2,50 0. ‘‘(ii) H IGHER MINIMUM PENALT Y WHERE VIOLATIONS ARE MORE THAN DE MINIMIS.— T othee x tent violations for which any person is liable under this paragraph for any year are more than de minimis, clause (i) shall be applied by substituting ‘$15,000 ’ for ‘$2,500’ with respect to such person. ‘‘(D) L IMITATIONS.— ‘‘(i) P ENALTY NOT TO APPLY WHERE FAILURE NOT DISCOVERED E X ERCISING REASONA B LE DILIGENCE.—No penalty shall be imposed by subparagraph (A) on any failure during any period for which it is established to the satisfaction of the Secretary that the person otherwise liable for such penalty did not k now, and exercising reasonable diligence would not have known, that such failure existed. ‘‘(ii) PENALTY NOT TO APPLY TO FAILURES COR- RECTED WITHIN CERTAIN PERIODS.—No penalty shall be imposed by subparagraph (A) on any failure if— ‘‘(I) such failure was due to reasonable cause and not to willful neglect; and ‘‘(II) such failure is corrected during the 3 0- day period beginning on the first date the person otherwise liable for such penalty knew, or exer- cising reasonable diligence would have known, that such failure existed. ‘‘(iii) O VERALL LIMITATION FOR UNINTENTIONAL FAILURES.—In the case of failures which are due to reasonable cause and not to willful neglect, the penalty imposed by subparagraph (A) for failures shall not exceed the amount e q ual to the lesser of— ‘‘(I) 10 percent of the aggregate amount paid or incurred by the employer (or predecessor employer) during the preceding taxable year for group health plans; or ‘‘(II) $500,000. ‘‘( E ) W AIVER 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 penalty imposed by subparagraph (A) to the extent that the payment of such penalty would be excessive relative to the failure involved.’’. (b) AMENDMENT R ELATING TO THE INDIVIDUAL MAR K ET.—

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