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[106th Congress Public Law 244]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ244.106]

[[Page 114 STAT. 499]]

Public Law 106-244
106th Congress

                                 An Act

 
To amend title I of the Employee Retirement Income Security Act of 1974 
to provide for the preemption of State law in certain cases relating to 
       certain church plans. <<NOTE: July 10, 2000 -  [S. 1309]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. <<NOTE: 29 USC 1144a note.>>  PURPOSE.

    The purpose of this Act is only to clarify the application to a 
church plan that is a welfare plan of State insurance laws that require 
or solely relate to licensing, solvency, insolvency, or the status of 
such plan as a single employer plan.
SEC. 2 CLARIFICATION <<NOTE: 29 USC 1144a.>>  OF CHURCH WELFARE 
                    PLAN STATUS UNDER STATE INSURANCE LAW.

    (a) In General.--For purposes of determining the status of a church 
plan that is a welfare plan under provisions of a State insurance law 
described in subsection (b), such a church plan (and any trust under 
such plan) shall be deemed to be a plan sponsored by a single employer 
that reimburses costs from general church assets, or purchases insurance 
coverage with general church assets, or both.
    (b) State Insurance Law.--A State insurance law described in this 
subsection is a law that--
            (1) requires a church plan, or an organization described in 
        section 414(e)(3)(A) of the Internal Revenue Code of 1986 and 
        section 3(33)(C)(i) of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1002(33)(C)(i)) to the extent that it is 
        administering or funding such a plan, to be licensed; or
            (2) relates solely to the solvency or insolvency of a church 
        plan (including participation in State guaranty funds and 
        associations).

    (c) Definitions.--For purposes of this section:
            (1) Church plan.--The term ``church plan'' has the meaning 
        given such term by section 414(e) of the Internal Revenue Code 
        of 1986 and section 3(33) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1002(33)).
            (2) Reimburses costs from general church assets.--The term 
        ``reimburses costs from general church assets'' means engaging 
        in an activity that is not the spreading of risk solely for the 
        purposes of the provisions of State insurance laws described in 
        subsection (b).
            (3) Welfare plan.--The term ``welfare plan''--

[[Page 114 STAT. 500]]

                    (A) means any church plan to the extent that such 
                plan provides medical, surgical, or hospital care or 
                benefits, or benefits in the event of sickness, 
                accident, disability, death or unemployment, or vacation 
                benefits, apprenticeship or other training programs, or 
                day care centers, scholarship funds, or prepaid legal 
                services; and
                    (B) does not include any entity, such as a health 
                insurance issuer described in section 9832(b)(2) of the 
                Internal Revenue Code of 1986 or a health maintenance 
                organization described in section 9832(b)(3) of such 
                Code, or any other organization that does business with 
                the church plan or organization sponsoring or 
                maintaining such a plan.

    (d) Enforcement Authority.--Notwithstanding any other provision of 
this section, for purposes of enforcing provisions of State insurance 
laws that apply to a church plan that is a welfare plan, the church plan 
shall be subject to State enforcement as if the church plan were an 
insurer licensed by the State.
    (e) Application of Section.--Except as provided in subsection (d), 
the application of this section is limited to determining the status of 
a church plan that is a welfare plan under the provisions of State 
insurance laws described in subsection (b). This section shall not 
otherwise be construed to recharacterize the status, or modify or affect 
the rights, of any plan participant or beneficiary, including 
participants or beneficiaries who make plan contributions.

    Approved July 10, 2000.

LEGISLATIVE HISTORY--S. 1309:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD:
                                                        Vol. 145 (1999):
                                    Nov. 19, considered and passed 
                                        Senate.
                                                        Vol. 146 (2000):
                                    June 26, considered and passed 
                                        House.

                                  <all>
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