171 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant 
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or 
(B) such article is held on such date under 
the supervision of a customs officer pursuant to 
the 2d proviso of such section 3(a). 
(6) DEFINITIONS.—For purposes of this sub-
section— 
(A) IN GENERAL.—Terms used in this sub-
section which are also used in section 5702 of 
the Internal Revenue Code of 1986 shall have 
the respective meanings such terms have in 
such section. 
(B) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or his del-
egate. 
(7) CONTROLLED
GROUPS.—Rules similar to 
the rules of section 5061(e)(3) of such Code shall 
apply for purposes of this subsection. 
(8) OTHER LAWS APPLICABLE.—All provisions 
of law, including penalties, applicable with respect to 
the taxes imposed by section 5701 of such Code 
shall, insofar as applicable and not inconsistent with 
VerDate Aug 31 2005 
01:51 Mar 01, 2007
Jkt 059200
PO 00000
Frm 00171
Fmt 6652
Sfmt 6201
E:\BILLS\H1200.IH
H1200
mstockstill on PROD1PC66 with BILLS
172 
the provisions of this subsection, apply to the floor 
stocks taxes imposed by paragraph (1), to the same 
extent as if such taxes were imposed by such section 
5701. The Secretary may treat any person who bore 
the ultimate burden of the tax imposed by para-
graph (1) as the person to whom a credit or refund 
under such provisions may be allowed or made. 
TITLE IX—CONFORMING AMEND-
MENTS TO THE EMPLOYEE 
RETIREMENT INCOME SECU-
RITY ACT OF 1974 
SEC. 901. ERISA INAPPLICABLE TO HEALTH COVERAGE AR-
RANGEMENTS UNDER STATE HEALTH SECU-
RITY PROGRAMS. 
Section 4 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1003) is amended— 
(1) in subsection (a), by striking ‘‘(b) or (c)’’ 
and inserting ‘‘(b), (c), or (d)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) The provisions of this title shall not apply to 
any arrangement forming a part of a State health security 
program established pursuant to section 101(b) of the 
American Health Security Act of 2007.’’. 
VerDate Aug 31 2005 
01:51 Mar 01, 2007
Jkt 059200
PO 00000
Frm 00172
Fmt 6652
Sfmt 6201
E:\BILLS\H1200.IH
H1200
mstockstill on PROD1PC66 with BILLS
173 
SEC. 902. EXEMPTION OF STATE HEALTH SECURITY PRO-
GRAMS FROM ERISA PREEMPTION. 
Section 514(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1144(b)) (as amended 
by sections 904(b)(3)(B) and 1002(b) of this Act) is 
amended by adding at the end the following new para-
graph: 
‘‘(8) Subsection (a) of this section shall not apply to 
State health security programs established pursuant to 
section 101(b) of the American Health Security Act of 
2007.’’. 
SEC. 903. PROHIBITION OF EMPLOYEE BENEFITS DUPLICA-
TIVE OF BENEFITS UNDER STATE HEALTH 
SECURITY 
PROGRAMS; 
COORDINATION 
IN 
CASE OF WORKERS’ COMPENSATION. 
(a) IN GENERAL.—Part 5 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 is 
amended by adding at the end the following new section: 
‘‘PROHIBITION OF EMPLOYEE BENEFITS DUPLICATIVE OF 
STATE HEALTH SECURITY PROGRAM BENEFITS; CO-
ORDINATION IN CASE OF WORKERS’ COMPENSATION 
‘‘SEC. 519. (a) Subject to subsection (b), no employee 
benefit plan may provide benefits which duplicate payment 
for any items or services for which payment may be made 
under a State health security program established pursu-
VerDate Aug 31 2005 
01:51 Mar 01, 2007
Jkt 059200
PO 00000
Frm 00173
Fmt 6652
Sfmt 6201
E:\BILLS\H1200.IH
H1200
mstockstill on PROD1PC66 with BILLS
174 
ant to section 101(b) of the American Health Security Act 
of 2007. 
‘‘(b)(1) Each workers compensation carrier that is 
liable (or would be liable but for the enactment of the 
American Health Security Act of 2007) for payment for 
workers compensation services furnished in a State shall 
reimburse the State health security plan for the State in 
which the services are furnished for the cost of such serv-
ices. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘workers compensation carrier’ 
means an insurance company that underwrites work-
ers compensation medical benefits with respect to 1 
or more employers and includes an employer or fund 
that is financially at risk for the provision of work-
ers compensation medical benefits. 
‘‘(B) The term ‘workers compensation medical 
benefits’ means, with respect to an enrollee who is 
an employee subject to the workers compensation 
laws of a State, the comprehensive medical benefits 
for work-related injuries and illnesses provided for 
under such laws with respect to such an employee. 
‘‘(C) The term ‘workers compensation services’ 
means items and services included in workers com-
pensation medical benefits and includes items and 
VerDate Aug 31 2005 
01:51 Mar 01, 2007
Jkt 059200
PO 00000
Frm 00174
Fmt 6652
Sfmt 6201
E:\BILLS\H1200.IH
H1200
mstockstill on PROD1PC66 with BILLS
175 
services (including rehabilitation services and long- 
term-care services) commonly used for treatment of 
work-related injuries and illnesses.’’. 
(b) CONFORMING AMENDMENT.—Section 4(b) of 
such Act (29 U.S.C. 1003(b)) is amended by adding at 
the end the following: ‘‘Paragraph (3) shall apply subject 
to section 519(b) (relating to reimbursement of State 
health security plans by workers compensation carriers).’’. 
(c) CLERICAL AMENDMENT.—The table of contents 
in section 1 of such Act is amended by inserting after the 
item relating to section 518 the following new items: 
‘‘Sec. 519. Prohibition of employee benefits duplicative of state health security 
program benefits; coordination in case of workers’ compensa-
tion.’’. 
SEC. 904. REPEAL OF CONTINUATION COVERAGE REQUIRE-
MENTS UNDER ERISA AND CERTAIN OTHER 
REQUIREMENTS 
RELATING 
TO 
GROUP 
HEALTH PLANS. 
(a) IN GENERAL.—Part 6 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1161 et seq.) is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 502(a) of such Act (29 U.S.C. 
1132(a)) is amended— 
(A) by striking paragraph (7); and 
VerDate Aug 31 2005 
01:51 Mar 01, 2007
Jkt 059200
PO 00000
Frm 00175
Fmt 6652
Sfmt 6201
E:\BILLS\H1200.IH
H1200
mstockstill on PROD1PC66 with BILLS
176 
(B) by redesignating paragraphs (8), (9), 
and (10) as paragraphs (7), (8), and (9), re-
spectively. 
(2) Section 502(c)(1) of such Act (29 U.S.C. 
1132(c)(1)) is amended by striking ‘‘paragraph (1) 
or (4) of section 606,’’. 
(3) Section 514(b) of such Act (29 U.S.C. 
1144(b)) is amended— 
(A) in paragraph (7), by striking ‘‘title),’’ 
the first place it appears and all that follows 
and inserting ‘‘title).’’; and 
(B) by striking paragraph (8). 
(4) The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 
is amended by striking the items relating to part 6 
of subtitle B of title I of such Act. 
SEC. 905. EFFECTIVE DATE OF TITLE. 
The amendments made by this title shall take effect 
January 1, 2008. 
TITLE X—ADDITIONAL 
CONFORMING AMENDMENTS 
SEC. 1001. REPEAL OF CERTAIN PROVISIONS IN INTERNAL 
REVENUE CODE OF 1986. 
The provisions of titles III and IV of the Health In-
surance Portability and Accountability Act of 1996, other 
VerDate Aug 31 2005 
01:51 Mar 01, 2007
Jkt 059200
PO 00000
Frm 00176
Fmt 6652
Sfmt 6201
E:\BILLS\H1200.IH
H1200
mstockstill on PROD1PC66 with BILLS