Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE; TABLE OF CONTENTS; AMENDMENT TO 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Employee Welfare
Benefit Equity Act of 2001''.
(b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents; amendment to 1986 Code.
TITLE I--CERTAIN WELFARE BENEFIT PLANS

Sec. 101. Modification of definition of ten-or-more employer plans.
Sec. 102. Clarification of deduction limits for certain collectively
bargained plans.
Sec. 103. Clarification of standards for section 501(c)(9) approval.
Sec. 104. Tax shelter provisions not to apply.
Sec. 105. Effective dates.
TITLE II--ENFORCEMENT PROVISIONS

Sec. 201. Clarification of section 4976.
Sec. 202. Effective date.
(c) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or a repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

TITLE I--CERTAIN WELFARE BENEFIT PLANS

SEC. 101. MODIFICATION OF DEFINITION OF TEN-OR-MORE EMPLOYER PLANS.

(a) Additional Requirements.--Paragraph (6)(B) of section 419A(f)
(relating to the exception for 10 or more employer plans) is amended by
striking ''and'' at the end of clause (i), by striking the period at
the end of clause (ii) and inserting a comma, and by adding at the end
the following new clauses:
''(iii) which meets the requirements of
section 505(b)(1) with respect to all benefits
provided by the plan,
''(iv) which has obtained a favorable
determination from the Secretary that such plan
(or a predecessor plan) is an organization
described in section 501(c)(9), and
''(v) under which no severance pay benefit
is provided.''
(b) Clarification of Experience Rating.--
(1) In general.--Paragraph (6)(A) of section 419A(f)
(relating to the exception for 10 or more employer plans) is
amended by striking the second sentence and inserting the
following: ''The preceding sentence shall not apply to any plan
which is an experience-rated plan.''
(2) Experience-rated plan.--Section 419A(f)(6) is amended
by adding at the end the following new subparagraph:
''(C) Experience-rated plan.--For purposes of this
paragraph--
''(i) In general.--The term 'experience-
rated plan' means a plan which determines
contributions by individual employers on the
basis of actual gain or loss experience.
''(ii) Exception for guaranteed benefit
plan.--
''(I) In general.--The term
'experience-rated plan' shall not
include a guaranteed benefit plan.
''(II) Guaranteed benefit plan.--
The term 'guaranteed benefit plan'
means a plan the benefits of which are
funded with insurance contracts or are
otherwise determinable and payable to a
participant without reference to, or
limitation by, the amount of
contributions to the plan attributable
to any contributing employer. A plan
shall not fail to be treated as a
guaranteed benefit plan solely because
benefits may be limited or denied in
the event a contributing employer fails
to pay premiums or assessments required
by the plan as a condition of continued
participation.''
(c) Single Plan Requirement.--Section 419A(f)(6), as amended by
subsections (a) and (b), is amended--
(1) by striking ''means a plan'' in subparagraph (B) and
inserting ''means a single plan'', and
(2) by adding at the end the following:
''(D) Single plan.--For purposes of this paragraph,
the term 'single plan' means a written plan or series
of related written plans the terms of which provide
that--
''(i) all assets of the plan or plans,
whether maintained under 1 or more trusts,
accounts, or other arrangements and without
regard to the method of accounting of the plan
or plans, are available to pay benefits of all
participants without regard to the
participant's contributing employer, and
''(ii) the method of accounting of the plan
or plans may not operate to limit or reduce the
benefits payable to a participant at any time
before the withdrawal of the participant's
employer from the plan or the termination of
any benefit arrangement under the plan.''

SEC. 102. CLARIFICATION OF DEDUCTION LIMITS FOR CERTAIN COLLECTIVELY
BARGAINED PLANS.

Paragraph (5) of section 419A(f) (relating to the deductions limits
for certain collectively bargained plans) is amended by adding at the
end the following flush sentences:
''Subparagraph (B) shall not apply to any plan maintained
pursuant to an agreement between employee representatives and 1
or more employers unless the taxpayer applies for, and the
Secretary issues, a determination that such agreement is a bona
fide collective bargaining agreement and that the welfare
benefits provided under the agreement were the subject of good
faith bargaining between employee representatives and such
employer or employers. The Secretary may issue regulations to
carry out the purposes of the preceding sentence.''

SEC. 103. CLARIFICATION OF STANDARDS FOR SECTION 501(C)(9) APPROVAL.

Section 505 is amended by adding at the end the following new
subsection:
''(d) Clarification of Standards for Exemption.--
''(1) Membership.--An organization shall not fail to be
treated as an organization described in paragraph (9) of
section 501(c) solely because its membership includes employees
or other allowable participants who--
''(A) reside or work in different geographic
locales, or
''(B) do not work in the same industrial or
employment classification.
''(2) Funding.--An organization described in paragraph (9)
or (20) of section 501(c) shall not be treated as
discriminatory solely because life insurance or other benefits
provided by the organization are funded with different types of
products, contracts, investments, or other funding methods of
varying costs, but only if the plan under which such benefits
are provided meets the requirements of subsection (b).''

SEC. 104. TAX SHELTER PROVISIONS NOT TO APPLY.

Section 419 (relating to treatment of funded welfare benefit plans)
is amended by adding at the end the following:
''(h) Tax Shelter Rules Not To Apply.--For purposes of this title,
a welfare benefit fund meeting all applicable requirements of this
title shall not be treated as a tax shelter or corporate tax shelter.''

SEC. 105. EFFECTIVE DATES.

(a) In General.--The amendments made by this title shall apply to
contributions to a welfare benefit fund made after the date of the
enactment of this Act.
(b) Tax Shelter Rules.--The amendment made by section 104 shall
take effect as if included in the amendments made by section 1028 of
the Taxpayer Relief Act of 1997.

TITLE II--ENFORCEMENT PROVISIONS

SEC. 201. CLARIFICATION OF SECTION 4976.

Section 4976 (relating to excise taxes with respect to funded
welfare benefit plans) is amended to read as follows:

''SEC. 4976. TAXES WITH RESPECT TO FUNDED WELFARE BENEFIT PLANS.

''(a) Imposition of Tax.--
''(1) General rule.--If--
''(A) an employer maintains a welfare benefit fund,
and
''(B) there is--
''(i) a disqualified benefit provided or
funded during any taxable year, or
''(ii) a premature termination of such
plan,
there is hereby imposed on such employer a tax in the amount
determined under paragraph (2).
''(2) Amount of tax.--The amount of the tax imposed by
paragraph (1) shall be equal to--
''(A) in the case of a taxable event under
paragraph (1)(B)(i), 100 percent of--
''(i) the amount of the disqualified
benefit provided, or
''(ii) the amount of the funding of the
disqualified benefit, and
''(B) in the case of a taxable event under
paragraph (1)(B)(ii), 100 percent of all contributions
to the fund before the termination.
''(b) Disqualified Benefit.--For purposes of subsection (a)--
''(1) In general.--The term 'disqualified benefit' means--
''(A) any post-retirement medical benefit or life
insurance benefit provided with respect to a key
employee if a separate account is required to be
established for such employee under section 419A(d) and
such payment is not from such account,
''(B) any post-retirement medical benefit or life
insurance benefit provided or funded with respect to an
individual in whose favor discrimination is prohibited
unless the plan meets the requirements of section
505(b) with respect to such benefit (whether or not
such requirements apply to such plan), and
''(C) any portion of a welfare benefit fund
reverting to the benefit of the employer.
''(2) Exception for collective bargaining plans.--Paragraph
(1)(B) shall not apply to any plan maintained pursuant to an
agreement between employee representatives and 1 or more
employers if the Secretary finds that such agreement is a
collective bargaining agreement and that the benefits referred
to in paragraph (1)(B) were the subject of good faith
bargaining between such employee representatives and such
employer or employers.
''(3) Exception for nondeductible contributions.--Paragraph
(1)(C) shall not apply to any amount attributable to a
contribution to the fund which is not allowable as a deduction
under section 419 for the taxable year or any prior taxable
year (and such contribution shall not be included in any
carryover under section 419(d)).
''(4) Exception for certain amounts charged against
existing reserve.--Subparagraphs (A) and (B) of paragraph (1)
shall not apply to post-retirement benefits charged against an
existing reserve for post-retirement medical or life insurance
benefits (as defined in section 512(a)(3)(E)) or charged
against the income on such reserve.
''(c) Premature Termination.--For purposes of subsection (a)--
''(1) In general.--The term 'premature termination' means a
termination event which occurs on or before the date which is 6
years after the first contribution to a welfare benefit fund
which benefits any highly compensated employee.
''(2) Exception for insolvency, etc.--Paragraph (1) shall
not apply to any termination event which occurs by reason of
the insolvency of the employer or for such other reasons as the
Secretary may by regulation determine are not likely to result
in abuse.
''(3) Termination event.--For purposes of this subsection--
''(A) In general.--The term 'termination event'
means--
''(i) the termination of a welfare benefit
fund,
''(ii) the withdrawal of an employer from a
welfare benefit fund to which more than 1
employer contributes, or
''(iii) any other action which is designed
to cause, directly or indirectly, a
distribution of any asset from a welfare
benefit fund to a highly compensated employee.
''(B) Exception for bona fide benefits.--
Subparagraph (A) shall not apply to any bona fide
benefit (other than a severance benefit) paid from a
welfare benefit fund which is available to all
employees on a nondiscriminatory basis and payable
pursuant to the terms of a written plan.
''(d) Definitions.--For purposes of this section--
''(1) In general.--Except as otherwise provided, the terms
used in this section shall have the same respective meanings as
when used in subpart D of part I of subchapter D of chapter 1.
''(2) Post-retirement benefit.--
''(A) In general.--The term 'post-retirement
benefit' means any benefit or distribution which is
reasonably determined to be paid, provided, or made
available to a participant on or after normal
retirement age.
''(B) Normal retirement age.--The term 'normal
retirement age' shall have the same meaning given the
term in section 3(24) of the Employee Retirement Income
Security Act of 1974, but in no event shall such date
be later than the latest normal retirement age defined
in any qualified retirement plan of the employer
maintaining the welfare benefit fund which benefits
such individual.
''(C) Presumption in the case of permanent life
insurance.--In the case of a welfare benefit fund which
provides a life insurance benefit for an employee, any
contributions to the fund for life insurance benefits
in excess of the cumulative projected cost of providing
the employee permanent whole life insurance, calculated
on the basis level premiums for each for each year
before a normal retirement age, shall be treated as
funding a post-retirement benefit.''

SEC. 202. EFFECTIVE DATE.

The amendments made by this title shall apply to benefits provided,
and terminations occurring, after the date of the enactment of this
Act.
Output:
Employee Welfare Benefit Equity Act of 2001 - Amends the Internal Revenue Code, with respect to the limited deductibility of employer contributions to welfare benefit funds, to revise the exception from such treatment for a single plan with ten or more employers. Adds to current requirements for a ten-or-more employer plan that the plan must: (1) meet specified nondiscrimination requirements with respect to all benefits the plan provides; (2) receive a favorable determination from the Secretary of the Treasury that the plan (or a predecessor plan) is a voluntary employees' beneficiary association meeting certain criteria; and (3) provide no severance pay benefit.Defines an experience-related plan, to which such exception does not apply (thus qualifying it for limited deductibility of employer contributions), as a plan which determines contributions by individual employers on the basis of actual gain or loss experience. Excludes from experience-related plans (and so excepts from limited deductibility of employer contributions) guaranteed benefit plans funded with insurance contracts or otherwise determinable and payable to a participant without reference to, or limitation by, the amount of contributions to the plan attributable to any contributing employer.Requires the taxpayer to apply for and receive a determination by the Secretary of the Treasury that a collective bargaining agreement is bona fide and the welfare benefits provided under it were the subject of good faith bargaining before a qualified asset account may be unlimited under an employee pay-all plan.Declares that a welfare benefit fund meeting all applicable requirements shall not be treated as a tax shelter or corporate tax shelter.Prescribes an excise tax equal to 100 percent of all contributions to a funded welfare benefit plan that is terminated prematurely, that is, within six years after the first contribution to the fund which benefits any highly compensated employee.