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H.R. 2183 (106th): Church Plan Parity and Entanglement Prevention Act of 1999

The text of the bill below is as of Jun 14, 1999 (Introduced).


HR 2183 IH

106th CONGRESS

1st Session

H. R. 2183

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.

IN THE HOUSE OF REPRESENTATIVES

June 14, 1999

Mr. ANDREWS (for himself and Mr. BOEHNER) introduced the following bill; which was referred to the Committee on Education and the Workforce


A BILL

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Church Plan Parity and Entanglement Prevention Act of 1999’.

SEC. 2. COVERAGE IN CERTAIN CASES OF CERTAIN CHURCH PLANS UNDER PROVISIONS OF ERISA SUPERSEDING CERTAIN STATE LAWS.

    (a) Section 4 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1003) is amended--

      (1) in subsection (b)(2), by adding at the end the following: ‘except that section 514 shall apply as provided in subsection (c) with respect to a church plan to the extent such section provides for the superseding of State insurance law and such plan meets the requirements of subsection (c),’; and

      (2) by adding at the end the following new subsection:

    ‘(c)(1) A church plan meets the requirements of this subsection if--

      ‘(A) the plan is established and maintained by a church or a convention or association of churches, including an organization described in section 3(33)(C)(i);

      ‘(B) such church, convention or association of churches, or organization has engaged in substantial operations for more than 5 years in connection with the administration or funding of 1 or more employee benefit plans; and

      ‘(C) such church, convention or association of churches, or organization has filed with the Secretary before the end of each plan year to which this subsection applies an affidavit of a fiduciary attesting that the plan (including any trust forming a part of the plan) meets the requirements of this subsection, specifying the name of the plan, the address of the principal place of business of the plan, the name of the plan administrator, the address of the plan administrator, the total number of participants, and providing such additional information as the Secretary may determine by regulation may be provided without significant burden to the plan.

    The Secretary shall consult with the National Association of Insurance Commissioners in issuing regulations under subparagraph (C).

    ‘(2) The requirements of this subsection shall be construed so as to maintain a rebuttable presumption against the superseding of State law.

    ‘(3) For purposes of this subsection, the term ‘church plan’ excludes any other entity, irrespective of any affiliation with the plan (or with a trust forming a part of the plan), to the extent that such entity’s principle purpose or function is other than the administration or funding of benefits under an employee benefit plan for the employees of a church or convention or association of churches.

    ‘(4) Except as specifically provided in paragraph (5), nothing in this subsection shall be construed to affect any State law--

      ‘(A) to the extent that it applies to an insurance company, or insurer, including a health maintenance organization or provider service organization; or

      ‘(B) which is enacted for the purpose of the regulation of the business of insurance, except to the extent that such law is applied directly to a church plan meeting the requirements of this subsection (or any trust forming a part of the plan).

    ‘(5) This title shall supersede any provision of State law which, solely because a church plan meeting the requirements of this subsection (or a trust forming a part of such plan) does not comply with a State law otherwise superseded by this title, prohibits--

      ‘(A) an agent or broker, otherwise authorized to engage in the sale of insurance within a State, from engaging in a sale of insurance in connection with a church plan meeting the requirements of this subsection (or a trust forming a part of such a plan);

      ‘(B) an insurer, otherwise authorized to engage in the sale of stop-loss insurance, from issuing a stop-loss policy in connection with a church plan meeting the requirements of this subsection (or a trust forming a part of such a plan); or

      ‘(C) a service provider, otherwise authorized to engage in the provision of services within a State, from providing services in connection with a church plan meeting the requirements of this subsection.

    ‘(6) Nothing in this subsection shall be construed to--

      ‘(A) alter, amend, modify, invalidate, impair, or supersede any other law of the United States or any rule or regulation issued under any such law;

      ‘(B) alter, amend, modify, invalidate, impair, or supersede any law of any State, or any rule or regulation issued under any such law, unless specifically so provided in this subsection;

      ‘(C) alter, amend, modify, invalidate, impair, or supersede any State law to the extent that it imposes requirements on policies or contracts of insurance purchased by church plans meeting the requirements of this subsection; or

      ‘(D) alter, amend, modify, invalidate, impair, or supersede any State law which applies to a function other than the function of operating a church plan meeting the requirements of this subsection.

    ‘(7) For purposes of this subsection, the terms ‘State’ and ‘State law’ have the meanings provided such terms under section 514(c).’.

SEC. 3. NO INFERENCE.

    Nothing in this Act may be construed to raise any inference with respect to the applicability to any church plan (or trust forming a part of a church plan) of any State law which is not expressly superseded by reason of the amendments made by this Act.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of the enactment of this Act.

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