Page:United States Statutes at Large Volume 98 Part 1.djvu/929

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 881

"(A) IN GENERAL.—Gross income shall not include the value of any on-premises athletic facility provided by an employer to his employees. "(B)

ON-PREMISES ATHLETIC FACILITY.—For purposes of

this paragraph, the term 'on-premises athletic facility' means any gym or other athletic facility— "(i) which is located on the premises of the employer, "(ii) which is operated by the employer, and "(iii) substantially all the use of which is by employees of the employer, their spouses, and their dependent children (within the meaning of subsection (f)). "(i) CUSTOMERS NOT TO INCLUDE EMPLOYEES.—For purposes of this section (other than subsection (c)(2)(B)), the term 'customers' shall only include customers who are not employees. "(j) SECTION NOT TO APPLY TO FRINGE BENEFITS EXPRESSLY PROVIDED FOR ELSEWHERE.—This section (other than subsection (e)) shall

not apply to any fringe benefits of a type the tax treatment of which is expressly provided for in any other section of this chapter, "(k) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section." (2) CLERICAL AMENDMENT.—The table of sections for such part III is amended by striking out the item relating to section 132 and inserting in lieu thereof the following: "Sec. 132. Certain fringe benefits. "Sec. 133. Cross references to other Acts." (b) CAFETERIA PLAN.— (1) DEFINITION OF CAFETERIA PLAN.—Paragraph (1) of section

125(d) (defining cafeteria plan) is amended to read as follows: 26 USC 125. "(1) IN GENERAL.—The term 'cafeteria plan' means a written plan under which— "(A) all participants are employees, and "(B) the participants may choose among 2 or more benefits consisting of cash and statutory nontaxable benefits." (2) DEFINITION OF STATUTORY NONTAXABLE BENEFIT.—

(A) IN GENERAL,—Subsection (f) of section 125 is amended to read as follows: "(f) STATUTORY NONTAXABLE BENEFITS DEFINED.—For purposes of this section, the term 'statutory nontaxable benefit' means any benefit which, with the application of subsection (a) is not in'^ludible in the gross income of the employee by reason of an express provision of this chapter (other than section 117, 124, 127, or 132). Such Ante, p. 877. term includes any group term life insurance which is includible in gross income only because it exceeds the dollar limitation of section 79." (B) CONFORMING AMENDMENT.—Subsection (c) of section

125 is amended by striking out "nontaxable benefits" each place it appears and inserting in lieu thereof "statutory nontaxable benefits". (3) EXCEPTION FOR KEY EMPLOYEES.—Subsection (b) of section 125 (relating to exception for highly compensated participants) is amended to read as follows: "(b) EXCEPTION FOR HIGHLY COMPENSATED PARTICIPANTS AND KEY EMPLOYEES.— "(1) HIGHLY COMPENSATED PARTICIPANTS.—In the case of a

highly compensated participant, subsection (a) shall not apply

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