II

104TH CONGRESS

1ST SESSION S. 30

To amend the Social Security Act to increase the earnings limit, to amend

the Internal Revenue Code of 1986 to repeal the increase in the tax

on social security benefits and to provide incentives for the purchase

of long-term care insurance, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 4, 1995

Mr. MCCAIN introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To amend the Social Security Act to increase the earnings

limit, to amend the Internal Revenue Code of 1986 to

repeal the increase in the tax on social security benefits

and to provide incentives for the purchase of long-term

care insurance, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Senior Citizens’ Equity

5 Act’’.
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1 TITLE I—SOCIAL SECURITY

2 EARNINGS TEST

3 SEC. 101. ADJUSTMENTS IN MONTHLY EXEMPT AMOUNT

4 FOR PURPOSES OF THE SOCIAL SECURITY

5 EARNINGS TEST.

6 (A) INCREASE IN MONTHLY EXEMPT AMOUNT FOR

7 INDIVIDUALS WHO HAVE ATTAINED RETIREMENT

8 AGE.—Section 203(f)(8)(D) of the Social Security Act (42

9 U.S.C. 403(f)(8)(D)) is amended to read as follows:

10 ‘‘(D)(i) Notwithstanding any other provision of

11 this subsection, the exempt amount which is applica12 ble to an individual who has attained retirement age

13 (as defined in section 216(1)) before the close of the

14 taxable year involved shall be—

15 ‘‘(I) for the taxable year beginning after

16 1995 and before 1997, $1,250.00,

17 ‘‘(II) for the taxable year beginning after

1996 and before 1998, $1,583.331 18 ⁄3,

19 ‘‘(III) for the taxable year beginning after

1997 and before 1999, $1,916.662 20 ⁄3,

21 ‘‘(IV) for the taxable year beginning after

22 1998 and before 2000, $2,250.00, and

23 ‘‘(V) for the taxable year beginning after

24 1999 and before 2001, $2,500.00.
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1 ‘‘(ii) For purposes of subparagraph (B)(ii)(II),

2 the increase in the exempt amount provided under

3 clause (i)(V) shall be deemed to have resulted from

4 a determination which shall be deemed to have been

5 made under subparagraph (A) in 1999.’’.

6 (b) CONFORMING AMENDMENTS.—The second sen7 tence of section 223(d)(4) of such Act (42 U.S.C.

8 423(d)(4)) is amended by striking ‘‘the exempt amount

9 under section 203(f)(8) which is applicable to individuals

10 described in subparagraph (D) thereof’’ and inserting the

11 following: ‘‘an amount equal to the exempt amount which

12 would have been applicable under section 203(f)(8), to in13 dividuals described in subparagraph (D) thereof, if section

14 101 of the Senior Citizens’ Equity Act had not been en15 acted’’.

16 SEC. 102. EFFECTIVE DATE.

17 The amendments made by section 101 shall apply

18 with respect to taxable years beginning after 1995.

19 TITLE II—REPEAL OF INCREASE

20 IN TAX ON SOCIAL SECURITY

21 BENEFITS

22 SEC. 201. REPEAL OF INCREASE IN TAX ON SOCIAL SECU23 RITY BENEFITS.

24 (a) IN GENERAL.—Subsection (a) of section 86 of the

25 Internal Revenue Code of 1986 (relating to social security
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1 and tier 1 railroad retirement benefits) is amended by

2 adding at the end the following new paragraph:

3 ‘‘(3) PHASEOUT OF ADDITIONAL AMOUNT.—In

4 the case of any taxable year beginning in a calendar

5 year after 1995 and before 2000, paragraph (2)

6 shall be applied by substituting the percentage deter7 mined under the following table for ‘85 percent’ each

8 place it appears:

‘‘In the case of a taxable

year beginning in calendar year: The percentage is:

1996 .......................................................................... 75 percent

1997 .......................................................................... 65 percent

1998 .......................................................................... 60 percent

1999 .......................................................................... 55 percent.’’

9 (b) TERMINATION OF ADDITIONAL AMOUNT.—Para10 graph (2) of section 86(a) of such Code is amended by

11 adding at the end the following new flush sentence:

12 ‘‘This paragraph shall not apply to any taxable year

13 beginning after December 31, 1999.’’

14 (c) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to taxable years beginning after

16 December 31, 1995.

17 TITLE III—TREATMENT OF

18 LONG-TERM CARE

19 SEC. 301. TREATMENT OF LONG-TERM CARE INSURANCE

20 OR PLANS.

21 (a) GENERAL RULE.—Subpart E of part I of sub22 chapter L of chapter 1 of the Internal Revenue Code of
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1 1986 is amended by inserting after section 818 the follow2 ing new section:

3 ‘‘SEC. 818A. TREATMENT OF LONG-TERM CARE INSURANCE

4 OR PLANS.

5 ‘‘(a) GENERAL RULE.—For purposes of this part, a

6 long-term care insurance contract shall be treated as an

7 accident or health insurance contract.

8 ‘‘(b) LONG-TERM CARE INSURANCE CONTRACT.—

9 ‘‘(1) IN GENERAL.—For purposes of this part,

10 the term ‘long-term care insurance contract’ means

11 any insurance contract if—

12 ‘‘(A) the only insurance protection pro13 vided under such contract is coverage of quali14 fied long-term care services and benefits inci15 dental to such coverage,

16 ‘‘(B) the maximum benefit under the pol17 icy for expenses incurred for any day does not

18 exceed $200,

19 ‘‘(C) such contract does not cover expenses

20 incurred for services or items to the extent that

21 such expenses are rembursable under title

22 XVIII of the Social Security Act or would be so

23 reimbursable but for the application of a de24 ductible or coinsurance amount,
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1 ‘‘(D) such contract is guaranteed renew2 able,

3 ‘‘(E) such contract does not have any cash

4 surrender value, and

5 ‘‘(F) all refunds of premiums, and all pol6 icyholder dividends or similar amounts, under

7 such contract are to be applied as a reduction

8 in future premiums or to increase future bene9 fits.

10 ‘‘(2) SPECIAL RULES.—

11 ‘‘(A) PER DIEM, ETC. PAYMENTS PER12 MITTED.—A contract shall not fail to be treated

13 as described in paragraph (1)(A) by reason of

14 payments being made on a per diem or other

15 periodic basis without regard to the expenses

16 incurred during the period to which the pay17 ments relate.

18 ‘‘(B) CONTRACT MAY COVER MEDICARE

19 REIMBURSABLE EXPENSES WHERE MEDICARE

20 IS SECONDARY PAYOR.—Paragraph (1)(C) shall

21 not apply to expenses which are reimbursable

22 under title XVIII of the Social Security Act

23 only as a secondary payor.

24 ‘‘(C) REFUNDS OF PREMIUMS.—Paragraph

25 (1)(F) shall not apply to any refund of pre-
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1 miums on surrender or cancellation of the con2 tract.

3 ‘‘(c) QUALIFIED LONG-TERM CARE SERVICES.—For

4 purposes of this section—

5 ‘‘(1) IN GENERAL.—The term ‘qualified long6 term care services’ means necessary diagnostic, pre7 ventive, therapeutic, and rehabilitative services, and

8 maintenance or personal care services, which—

9 ‘‘(A) are required by a chronically ill indi10 vidual in a qualified facility, and

11 ‘‘(B) are provided pursuant to a plan of

12 care prescribed by a licensed health care practi13 tioner.

14 ‘‘(2) CHRONICALLY ILL INDIVIDUAL.—

15 ‘‘(A) IN GENERAL.—The term ‘chronically

16 ill individual’ means any individual who has

17 been certified by a licensed health care practi18 tioner as—

19 ‘‘(i)(I) being unable to perform (with20 out substantial assistance from another in21 dividual) at least 2 activities of daily living

22 (as defined in subparagraph (B)) for a pe23 riod of at least 90 days due to a loss of

24 functional capacity, or
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1 ‘‘(II) having a level of disability simi2 lar (as determined by the Secretary in con3 sultation with the Secretary of Health and

4 Human Services) to the level of disability

5 described in subclause (I), or

6 ‘‘(ii) having a similar level of disabil7 ity due to cognitive impairment.

8 ‘‘(B) ACTIVITIES OF DAILY LIVING.—For

9 purposes of subparagraph (A), each of the fol10 lowing is an activity of daily living:

11 ‘‘(i) MOBILITY.—The process of walk12 ing or wheeling on a level surface which

13 may include the use of an assistive device

14 such as a cane, walker, wheelchair, or

15 brace.

16 ‘‘(ii) DRESSING.—The overall complex

17 behavior of getting clothes from closets

18 and drawers and then getting dressed.

19 ‘‘(iii) TOILETING AND BATHING.—

20 Each of the following shall be treated as 1

21 activity:

22 ‘‘(I) The act of going to the toilet

23 room for bowel and bladder function,

24 transferring on and off the toilet,

25 cleaning after elimination, and ar-
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1 ranging clothes or the ability to volun2 tarily control bowel and bladder func3 tion, or in the event of incontinence,

4 the ability to maintain a reasonable

5 level of personal hygiene.

6 ‘‘(II) The overall complex behav7 ior of getting water and cleansing the

8 whole body, including turning on the

9 water for a bath, shower, or sponge

10 bath, getting to, in, and out of a tub

11 or shower, and washing and drying

12 oneself.

13 ‘‘(iv) TRANSFER.—The process of get14 ting in and out of bed or in and out of a

15 chair or wheelchair.

16 ‘‘(v) EATING.—The process of getting

17 food from a plate or its equivalent into the

18 mouth.

19 ‘‘(3) QUALIFIED FACILITY.—The term ‘quali20 fied facility’ means—

21 ‘‘(A) a nursing, rehabilitative, hospice, or

22 adult day care facility (including a hospital, re23 tirement home, nursing home, skilled nursing

24 facility, intermediate care facility, or similar

25 institution—
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1 ‘‘(i) which is licensed under State law,

2 or

3 ‘‘(ii) which is a certified facility for

4 purposes of title XVIII or XIX of the So5 cial Security Act, or

6 ‘‘(B) an individual’s home if a licensed

7 health care practitioner certifies that without

8 home care the individual would have to be cared

9 for in a facility described in subparagraph (A).

10 ‘‘(4) MAINTENANCE OR PERSONAL CARE SERV11 ICES.—The term ‘maintenance or personal care serv12 ices’ means any care the primary purpose of which

13 is to provide needed assistance with any of the ac14 tivities of daily living described in paragraph (2)(B).

15 ‘‘(5) LICENSED HEALTH CARE PRACTI16 TIONER.—The term ‘licensed health care practi17 tioner’ means any physician (as defined in section

18 1861(r) of the Social Security Act) and any reg19 istered professional nurse, licensed social worker, or

20 other individual who meets such requirements as

21 may be prescribed by the Secretary.

22 ‘‘(d) CONTINUATION COVERAGE EXCISE TAX NOT

23 TO APPLY.—This section shall not apply in determining

24 whether section 4980B (relating to failure to satisfy con-
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1 tinuation coverage requirements of group health plans) ap2 plies.

3 ‘‘(e) INFLATION ADJUSTMENT OF $200 BENEFIT

4 LIMIT.—

5 ‘‘(1) IN GENERAL.—In the case of a calendar

6 year after 1995, the $200 amount contained in sub7 section (b)(1)(B) shall be increased for such cal8 endar year by the medical care cost adjustment for

9 such calendar year. If any increase determined

10 under the preceding sentence is not a multiple of

11 $10, such increase shall be rounded to the nearest

12 multiple of $10.

13 ‘‘(2) MEDICAL CARE COST ADJUSTMENT.—For

14 purposes of paragraph (1), the medical care cost ad15 justment for any calendar year is the percentage (if

16 any) by which—

17 ‘‘(A) the medical care component of the

18 Consumer Price Index (as defined in section

19 1(f)(5)) for August of the preceding calendar

20 year, exceeds

21 ‘‘(B) such component for August of 1994.’’

22 (b) CLERICAL AMENDMENT.—The table of sections

23 for such subpart E is amended by inserting after the item

24 relating to section 818 the following new item:

‘‘Sec. 818A. Treatment of long-term care insurance or plans.’’
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1 SEC. 302. EXCLUSION FOR BENEFITS PROVIDED UNDER

2 LONG-TERM CARE INSURANCE; EXCLUSION

3 FOR EMPLOYER-PROVIDED COVERAGE.

4 (a) IN GENERAL.—Subsection (a) of section 104 of

5 the Internal Revenue Code of 1986 (relating to compensa6 tion for injuries or sickness) is amended by striking ‘‘and’’

7 at the end of paragraph (4), by striking the period at the

8 end of paragraph (5) and inserting ‘‘, and’’, and by insert9 ing after paragraph (4) the following new paragraph:

10 ‘‘(6) benefits under a long-term care insurance

11 contract (as defined in section 818A(b)).’’

12 (b) EXCLUSION FOR EMPLOYER-PROVIDED COV13 ERAGE.—Section 106 of such Code (relating to contribu14 tions by employer to accident and health plans) is amend15 ed by adding at the end thereof the following sentence:

16 ‘‘For purposes of the preceding sentence, the term ‘acci17 dent or health plan’’ includes a long-term care insurance

18 contract (as defined in section 818A(b)).’’

19 SEC. 303. QUALIFIED LONG-TERM SERVICES TREATED AS

20 MEDICAL CARE.

21 (a) GENERAL RULE.—Paragraph (1) of section

22 213(d) of the Internal Revenue Code of 1986 (defining

23 medical care) is amended by striking ‘‘or’’ at the end of

24 subparagraph (B), by redesignating subparagraph (C) as

25 subparagraph (D), and by inserting after subparagraph

26 (B) the following new subparagraph:
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1 ‘‘(C) for qualified long-term care services

2 (as defined in section 818A(c)), or’’.

3 (b) TECHNICAL AMENDMENTS.—

4 (1) Subparagraph (D) of section 213(d)(1) of

5 such Code (as redesignated by subsection (a)) is

6 amended by striking ‘‘subparagraphs (A) and (B)’’

7 and inserting ‘‘subparagraphs (A), (B), and (C)’’.

8 (2)(A) Paragraph (1) of section 213(d) of such

9 Code is amended by adding at the end thereof the

10 following new flush sentence:

11 ‘‘In the case of a long-term care insurance contract

12 (as defined in section 818A), only eligible long-term

13 care premiums (as defined in paragraph (10)) shall

14 be taken into account under subparagraph (D).’’

15 (B) Subsection (d) of section 213 is amended

16 by adding at the end the following new paragraph:

17 ‘‘(10) ELIGIBLE LONG-TERM CARE PRE18 MIUMS.—

19 ‘‘(A) IN GENERAL.—For purposes of this

20 section, the term ‘eligible long-term care pre21 miums’ means the amount paid during a tax22 able year for any long-term care insurance con23 tract (as defined in section 818A) covering an

24 individual, to the extent such amount does not
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1 exceed the limitation determined under the fol2 lowing table:

‘‘In the case of an individual

with an attained age before the The limitation

close of the taxable year of: is:

40 or less ....................................................... $200

More than 40 but not more than 50 ............. 375

More than 50 but not more than 60 ............. 750

More than 60 but not more than 70 ............. 1,600

More than 70 ................................................. 2,000.

3 ‘‘(B) INDEXING.—

4 ‘‘(i) IN GENERAL.—In the case of any

5 taxable year beginning in a calendar year

6 after 1995, each dollar amount contained

7 in paragraph (1) shall be increased by the

8 medical care cost adjustment of such

9 amount for such calendar year. If any in10 crease determined under the preceding sen11 tence is not a multiple of $10, such in12 crease shall be rounded to the nearest mul13 tiple of $10.

14 ‘‘(ii) MEDICAL CARE COST ADJUST15 MENT.—For purposes of clause (i), the

16 medical care cost adjustment for any cal17 endar year is the percentage (if any) by

18 which—

19 ‘‘(I) the medical care component

20 of the Consumer Price Index (as de-
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1 fined in section 1(f)(5)) for August of

2 the preceding calendar year, exceeds

3 ‘‘(II) such component for August

4 of 1994.’’

5 (3) Paragraph (6) of section 213(d) of such

6 Code is amended—

7 (A) by striking ‘‘subparagraphs (A) and

8 (B)’’ and inserting ‘‘subparagraphs (A), (B),

9 and (C)’’, and

10 (B) by striking ‘‘paragraph (1)(C)’’ in sub11 paragraph (A) and inserting ‘‘paragraph

12 (1)(D)’’.

13 (4) Paragraph (7) of section 213(d) of such

14 Code is amended by striking ‘‘subparagraphs (A)

15 and (B)’’ and inserting ‘‘subparagraphs (A), (B),

16 and (C)’’.

17 SEC. 304. CERTAIN EXCHANGES OF LIFE INSURANCE CON18 TRACTS FOR LONG-TERM CARE INSURANCE

19 CONTRACTS NOT TAXABLE.

20 Subsection (a) of section 1035 of the Internal Reve21 nue Code of 1986 (relating to certain exchanges of insur22 ance contracts) is amended by striking the period at the

23 end of paragraph (3) and inserting ‘‘; or’’, and by adding

24 at the end thereof the following new paragraph:
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1 ‘‘(4) a contract of life insurance or an endow2 ment or annuity contract for a long-term care insur3 ance contract (as defined in section 818A).’’

4 SEC. 305. EXCLUSION FROM GROSS INCOME FOR AMOUNTS

5 WITHDRAWN FROM INDIVIDUAL RETIRE6 MENT PLANS OR 401(k) PLANS FOR LONG7 TERM CARE INSURANCE.

8 (a) IN GENERAL.—Part III of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 (relating to

10 items specifically excluded from gross income) is amended

11 by redesignating section 137 as section 138 and by insert12 ing after section 136 the following new section:

13 ‘‘SEC. 137. DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT

14 ACCOUNTS AND SECTION 401(k) PLANS FOR

15 LONG-TERM CARE INSURANCE.

16 ‘‘(a) GENERAL RULE.—The amount includible in the

17 gross income of an individual for the taxable year by rea18 son of qualified distributions during such taxable year

19 shall not exceed the excess of—

20 ‘‘(1) the amount which would (but for this sec21 tion) be so includible by reason of such distributions,

22 over

23 ‘‘(2) the aggregate premiums paid by such indi24 vidual during such taxable year for any long-term

25 care insurance contract (as defined in section 818A)
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1 for the benefit of such individual or the spouse of

2 such individual.

3 ‘‘(b) QUALIFIED DISTRIBUTION.—For purposes of

4 this section, the term ‘qualified distribution’ means any

5 distribution to an individual from an individual retirement

6 account or a section 401(k) plan if such individual has

attained age 591 7 ⁄2 on or before the date of the distribution

8 (and, in the case of a distribution used to pay premiums

9 for the benefit of the spouse of such individual, such

spouse has attained age 591 10 ⁄2 on or before the date of the

11 distribution).

12 ‘‘(c) DEFINITIONS.—For purposes of this section—

13 ‘‘(1) INDIVIDUAL RETIREMENT ACCOUNT.—The

14 term ‘individual retirement account’ has the mean15 ing given such term by section 408(a).

16 ‘‘(2) SECTION 401(k) PLAN.—The term ‘section

17 401(k) plan’ means any employer plan which meets

18 the requirements of section 401(a) and which in19 cludes a qualified cash or deferred arrangement (as

20 defined in section 401(k)).

21 ‘‘(d) SPECIAL RULES FOR SECTION 401(k) PLANS.—

22 ‘‘(1) WITHDRAWALS CANNOT EXCEED ELEC23 TIVE CONTRIBUTIONS UNDER QUALIFIED CASH OR

24 DEFERRED ARRANGEMENT.—This section shall not

25 apply to any distribution from a section 401(k) plan
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1 to the extent the aggregate amount of such distribu2 tions for the use described in subsection (a) exceeds

3 the aggregate employer contributions made pursuant

4 to the employee’s election under section 401(k)(2).

5 ‘‘(2) WITHDRAWALS NOT TO CAUSE DISQUALI6 FICATION.—A plan shall not be treated as failing to

7 satisfy the requirements of section 401, and an ar8 rangement shall not be treated as failing to be a

9 qualified cash or deferred arrangement (as defined

10 in section 401(k)(2)), merely because under the plan

11 or arrangement distributions are permitted which

12 are excludable from gross income by reason of this

13 section.’’

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 401(k) of such Code is amended by

16 adding at the end the following new paragraph:

17 ‘‘(11) CROSS REFERENCE.—

‘‘For provision permitting tax-free withdrawals

for payment of long-term care premiums, see section

137.’’

18 (2) Section 408(d) of such Code is amended by

19 adding at the end the following new paragraph:
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1 ‘‘(8) CROSS REFERENCE.—

‘‘For provision permitting tax-free withdrawals

from individual retirement accounts for payment of

long-term care premiums, see section 137.’’

2 (3) The table of sections for such part III is

3 amended by striking the last item and inserting the

4 following new items:

‘‘Sec. 137. Distributions from individual retirement accounts and

section 401(k) plans for long-term care insurance.

‘‘Sec. 138. Cross references to other Acts.’’

5 SEC. 306. TAX TREATMENT OF ACCELERATED DEATH BEN6 EFITS UNDER LIFE INSURANCE CONTRACTS.

7 Section 101 of the Internal Revenue Code of 1986

8 (relating to certain death benefits) is amended by adding

9 at the end thereof the following new subsection:

10 ‘‘(g) TREATMENT OF CERTAIN ACCELERATED

11 DEATH BENEFITS.—

12 ‘‘(1) IN GENERAL.—For purposes of this sec13 tion, any amount paid or advanced to an individual

14 under a life insurance contract on the life of an in15 sured—

16 ‘‘(A) who is a terminally ill individual, or

17 ‘‘(B) who is a chronically ill individual (as

18 defined in section 818A(c)(2)) who is confined

19 to a qualified facility (as defined in section

20 818A(c)(3)(A)),

21 shall be treated as an amount paid by reason of the

22 death of such insured.
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1 ‘‘(2) TERMINALLY ILL INDIVIDUAL.—For pur2 poses of this subsection, the term ‘terminally ill indi3 vidual’ means an individual who has been certified

4 by a physician as having an illness or physical condi5 tion which can reasonably be expected to result in

6 death in 12 months or less.

7 ‘‘(3) PHYSICIAN.—For purposes of this sub8 section, the term ‘physician’ has the meaning given

9 to such term by section 213(d)(4).’’

10 SEC. 307. EFFECTIVE DATE.

11 The amendments made by this title shall apply to tax12 able years beginning after December 31, 1995.

13 TITLE IV—SENIOR CITIZEN

14 COMMUNITIES

15 SEC. 401. DEFINITION OF HOUSING FOR OLDER PERSONS.

16 Subparagraph (C) of section 807(b)(2) of the Fair

17 Housing Act (42 U.S.C. 3607(b)(2)) is amended to read

18 as follows:

19 ‘‘(C) that meets the following requirements:

20 ‘‘(i) The housing is in a facility or commu21 nity intended and operated for the occupancy of

22 at least 80 percent of the occupied units by at

23 least one person 55 years of age or older.

24 ‘‘(ii) The housing facility or community

25 publishes and adheres to policies and proce-
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1 dures that demonstrate the intent required

2 under clause (i), whether or not such policies

3 and procedures are set forth in the governing

4 documents of such facility or community.

5 ‘‘(iii) The housing facility or community

6 complies with rules made by the Secretary for

7 the verification of occupancy. Such rules shall

8 allow for that verification by reliable surveys

9 and affidavits and shall include examples of the

10 types of policies and procedures relevant to a

11 determination of compliance with the require12 ment of clause (ii). Such surveys and affidavits

13 shall be admissible in administrative and judi14 cial proceedings for the purposes of such ver15 ification.’’.

16 SEC. 402. GOOD FAITH ATTEMPT AT COMPLIANCE DE17 FENSE AGAINST CIVIL MONEY DAMAGES.

18 Section 807(b) of the Fair Housing Act (42 U.S.C.

19 3607(b)) is amended by adding at the end the following:

20 ‘‘(5) An individual who engages in conduct with a

21 reasonable good faith reliance on the existence of the ex22 emption of this subsection relating to housing for older

23 persons is not personally liable for money damages for a

24 violation of this Act that such an exemption would have

25 vitiated. For purposes of this paragraph, a person engaged
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1 in the business of residential real estate transactions is

2 presumed to have such a good faith reliance if that person

3 has no actual knowledge that the facility or community

4 is not or will not be eligible for such exception and the

5 facility or community gives such person a written certifi6 cation stating the compliance of the facility or community

7 with the requirements for such exception.’’.

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