Congressional Record, Senate - August 4, 2020, S4774
Summary
This is page S4774 of the Congressional Record, Senate, August 4, 2020, carrying legislative text in the middle of a proposed amendment. It adds Internal Revenue Code section 6720C, a penalty of $250 on a person who fails to notify a group health plan that eligibility for continuation coverage premium assistance under the Continuous Health Coverage for Workers Act has ended. For a fraudulent failure the penalty is the greater of $250 or 110 percent of the premium assistance provided, with a reasonable cause exception. The text also covers a credit for continuation coverage premium assistance, a coordination rule with the health coverage tax credit, and appropriations to the Social Security trust funds for lost revenue.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Congressional Record, Senate - August 4, 2020, S4774.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2020-08-04-crec-2020-08-04-pt1-pgs4774-3431abd71e/
, SHA-256 da84c97235f037df559edde985f0b74834029ffbde27c71dbb0b453ac07bd26d.Full text
S4774 CONGRESSIONAL RECORD — SENATE August 4, 2020
an amount calculated under subsection (a) ject to the limitations provided in this sec- ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY
through the end of the most recent payroll tion, based on such information as the Sec- HEALTH PLAN OF CESSATION OF
ELIGIBILITY FOR CONTINUATION
period in the quarter. retary shall require, COVERAGE PREMIUM ASSISTANCE.
‘‘(C) TREATMENT OF DEPOSITS.—The Sec- ‘‘(4) to provide for the reconciliation of
retary shall waive any penalty under section ‘‘(a) IN GENERAL.—Except in the case of
such advance payment with the amount of failure described in subsection (b) or (c), any
6656 for any failure to make a deposit of the the credit at the time of filing the return of
tax imposed by section 3111(a), or so much of person required to notify a group health plan
tax for the applicable quarter or taxable under section 202(a)(2)(B) of the Continuous
the taxes imposed under section 3221(a) as year, and
are attributable to the rate in effect under Health Coverage for Workers Act who fails
‘‘(5) with respect to the application of the to make such a notification at such time and
section 3111(a), if the Secretary determines credit to third party payors (including pro-
that such failure was due to the anticipation in such manner as the Secretary of Labor
fessional employer organizations, certified may require shall pay a penalty of $250.
of the credit allowed under this section. professional employer organizations, or ‘‘(b) INTENTIONAL FAILURE.—In the case of
‘‘(D) TREATMENT OF PAYMENTS.—For pur- agents under section 3504). any such failure that is fraudulent, such per-
poses of section 1324 of title 31, United States
‘‘(h) LIMITATION.—In the case of any period son shall pay a penalty equal to the greater
Code, any amounts due to an employer under
of coverage (as defined in section 202(l) of the of—
this paragraph shall be treated in the same
‘‘(1) $250, or
manner as a refund due from a credit provi- Continuous Health Coverage for Workers
‘‘(2) 110 percent of the premium assistance
sion referred to in subsection (b)(2) of such Act) beginning on or after the date of enact-
provided under section 202(a)(1)(A) of the
section. ment of this section, no credit shall be al- Continuous Health Coverage for Workers Act
‘‘(3) LIMITATION ON REIMBURSEMENT FOR lowed under this section with respect to any after termination of eligibility under such
CERTAIN EMPLOYEES.—In the case of an indi-
coverage that includes coverage of an abor- section.
vidual who for any month is an assistance el-
tion (except as described in section 507(a) of ‘‘(c) REASONABLE CAUSE EXCEPTION.—No
igible individual described in subparagraph
division A of Public Law 116–94).’’. penalty shall be imposed under this section
(B) or (C) of section 202(a)(3) of the Contin-
(2) SOCIAL SECURITY TRUST FUNDS HELD with respect to any failure if it is shown that
uous Health Coverage for Workers Act with
HARMLESS.—There are hereby appropriated such failure is due to reasonable cause and
respect to any coverage, the credit deter-
to the Federal Old-Age and Survivors Insur- not to willful neglect.’’.
mined with respect to such individual under
ance Trust Fund and the Federal Disability (2) CLERICAL AMENDMENT.—The table of
subsection (a) for any such month ending
Insurance Trust Fund established under sec- sections of part I of subchapter B of chapter
during a calendar quarter shall not exceed
tion 201 of the Social Security Act (42 U.S.C. 68 of such Code is amended by adding at the
the amount of premium the individual would
401) and the Social Security Equivalent Ben- end the following new item:
have paid for a full month of such coverage
for the month preceding the first month for efit Account established under section 15A(a) ‘‘Sec. 6720C. Penalty for failure to notify
which an individual is such an assistance eli- of the Railroad Retirement Act of 1974 (45 health plan of cessation of eli-
gible individual. U.S.C. 231n–1(a)) amounts equal to the reduc- gibility for continuation cov-
‘‘(d) GOVERNMENTAL ENTITIES.—For pur- tion in revenues to the Treasury by reason of erage premium assistance.’’.
poses of this section, the term ‘person’ in- this subsection (without regard to this para- (c) COORDINATION WITH HCTC.—
cludes any governmental entity or Indian graph). Amounts appropriated by the pre- (1) IN GENERAL.—Section 35(g)(9) of the In-
tribal government (as defined in section ceding sentence shall be transferred from the ternal Revenue Code of 1986 is amended to
139E(c)(1)). general fund at such times and in such man- read as follows:
‘‘(e) DENIAL OF DOUBLE BENEFIT.—For pur- ner as to replicate to the extent possible the ‘‘(9) CONTINUATION COVERAGE PREMIUM AS-
poses of chapter 1, the gross income of any transfers which would have occurred to such SISTANCE.—In the case of an assistance eligi-
person allowed a credit under this section Trust Fund or Account had this section not ble individual who receives premium assist-
shall be increased for the taxable year which been enacted. ance for continuation coverage under section
includes the last day of any calendar quarter 202(a)(1) of the Continuous Health Coverage
(3) CLERICAL AMENDMENT.—The table of
with respect to which such credit is allowed for Workers Act for any month during the
sections for subchapter B of chapter 65 of the
by the amount of such credit. No amount for taxable year, such individual shall not be
Internal Revenue Code of 1986 is amended by
which a credit is allowed under this section treated as an eligible individual, a certified
shall be taken into account as qualified adding at the end the following new item:
individual, or a qualifying family member
wages under section 2301 of the CARES Act ‘‘Sec. 6432. Continuation coverage premium for purposes of this section or section 7527
or as qualified health plan expenses under assistance.’’. with respect to such month.’’.
section 7001(d) or 7003(d) of the Families (4) EFFECTIVE DATE.—The amendments (2) EFFECTIVE DATE.—The amendment
First Coronavirus Response Act. made by this subsection shall apply to pre- made by paragraph (1) shall apply to taxable
‘‘(f) REPORTING.—Each person entitled to years ending after the date of the enactment
miums to which section 202(a)(1)(A) applies.
reimbursement under subsection (a) for any of this Act.
(5) SPECIAL RULE IN CASE OF EMPLOYEE PAY-
period shall submit such reports (at such (d) EXCLUSION OF CONTINUATION COVERAGE
MENT THAT IS NOT REQUIRED UNDER THIS SEC-
time and in such manner) as the Secretary PREMIUM ASSISTANCE FROM GROSS INCOME.—
TION.—
may require, including— (1) IN GENERAL.—Part III of subchapter B of
‘‘(1) an attestation of involuntary termi- (A) IN GENERAL.—In the case of an assist-
ance eligible individual who pays, with re- chapter 1 of the Internal Revenue Code of
nation of employment, reduction of hours, or 1986 is amended by inserting after section
furloughing, for each assistance eligible indi- spect any period of coverage to which section
202(a)(1)(A) applies, the amount of the pre- 139H the following new section:
vidual on the basis of whose termination, re- ‘‘SEC. 139I. CONTINUATION COVERAGE PREMIUM
duction of hours, or furloughing entitlement mium for such coverage that the individual
ASSISTANCE.
to reimbursement is claimed under sub- would have (but for this subtitle) been re-
‘‘In the case of an assistance eligible indi-
section (a), quired to pay, the person to whom such pay-
vidual (as defined in subsection (a)(3) of sec-
‘‘(2) a report of the amount of payroll taxes ment is payable shall reimburse such indi-
tion 202 of the Continuous Health Coverage
offset under subsection (a) for the reporting vidual for the amount of such premium paid.
for Workers Act), gross income does not in-
period, and (B) CREDIT OF REIMBURSEMENT.—A person
clude any premium assistance provided
‘‘(3) a report containing the TINs of all to which subparagraph (A) applies shall be
under subsection (a)(1) of such section.’’.
covered employees, the amount of subsidy allowed a credit in the manner provided (2) CLERICAL AMENDMENT.—The table of
reimbursed with respect to each employee, under section 6432 of the Internal Revenue sections for part III of subchapter B of chap-
and a designation with respect to each em- Code of 1986 for any payment made to the ter 1 of such Code is amended by inserting
ployee as to whether the subsidy reimburse- employee under such subparagraph. after the item relating to section 139H the
ment is for coverage of 1 individual or 2 or (C) PAYMENT OF CREDITS.—Any person to following new item:
more individuals. which subparagraph (A) applies shall make
‘‘(g) REGULATIONS.—The Secretary shall ‘‘Sec. 139I. Continuation coverage premium
the payment required under such clause to
issue such regulations or other guidance as assistance.’’.
the individual not later than 60 days after
may be necessary or appropriate to carry out (3) EFFECTIVE DATE.—The amendments
the date on which such individual elects con-
this section, including— made by this subsection shall apply to tax-
tinuation coverage under section 202(a)(1) of able years ending after the date of the enact-
‘‘(1) the requirement to report information the Continuous Health Coverage for Workers
or the establishment of other methods for ment of this Act.
SSpencer on DSK126QN23PROD with SENATE
Act.
verifying the correct amounts of reimburse- SEC. 204. RULE OF CONSTRUCTION.
ments under this section, (b)PENALTY FOR FAILURE TO NOTIFY In all matters of interpretation, rules, and
‘‘(2) the application of this section to group HEALTH PLAN OF CESSATION OF ELIGIBILITY operational procedures, the language of this
health plans that are multiemployer plans FOR PREMIUM ASSISTANCE.— subtitle shall be interpreted broadly for the
(as defined in section 3(37) of the Employee (1) IN GENERAL.—Part I of subchapter B of benefit of workers and their families.
Retirement Income Security Act of 1974), chapter 68 of the Internal Revenue Code of
‘‘(3) to allow the advance payment of the 1986 is amended by adding at the end the fol- SA 2516. Ms. MCSALLY submitted an
credit determined under subsection (a), sub- lowing new section: amendment intended to be proposed by
VerDate Sep 11 2014 08:41 Aug 05, 2020 Jkt 099060 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\CR\FM\A04AU6.041 S04AUPT1
August 4, 2020 CONGRESSIONAL RECORD — SENATE S4775
her to the bill S. 178, to condemn gross tion Program and Health Care Enhancement tories according to the formula that applied
human rights violations of ethnic Act (Public Law 116–139) and submit such up- to the Public Health Emergency Prepared-
Turkic Muslims in Xinjiang, and call- dates to the Secretary not later than 60 days ness cooperative agreement in fiscal year
after funds appropriated in this paragraph in 2019: Provided further, That not less than
ing for an end to arbitrary detention, $500,000,000 shall be allocated in coordination
this Act have been awarded to such recipi-
torture, and harassment of these com- ent: Provided further, That funds an entity with the Director of the Indian Health Serv-
munities inside and outside China; receives from amounts described in the first ice, to tribes, tribal organizations, urban In-
which was ordered to lie on the table; proviso in this paragraph may also be used dian health organizations, or health service
as follows: for the rent, lease, purchase, acquisition, providers to tribes: Provided further, That the
At the appropriate place, insert the fol- construction, alteration, renovation, or Secretary of Health and Human Services (re-
lowing: equipping of non-federally owned facilities to ferred to in this paragraph as the ‘‘Sec-
improve coronavirus preparedness and re- retary’’) may satisfy the funding thresholds
TITLE ll—
sponse capability at the State and local outlined in the first and third provisos under
DEPARTMENT OF HEALTH AND HUMAN this paragraph in this Act by making awards
level: Provided further, That such amount is
SERVICES through other grant or cooperative agree-
designated by the Congress as being for an
OFFICE OF THE SECRETARY emergency requirement pursuant to section ment mechanisms: Provided further, That the
PUBLIC HEALTH AND SOCIAL SERVICES 251(b)(2)(A)(i) of the Balanced Budget and Governor or designee of each State, locality,
EMERGENCY FUND Emergency Deficit Control Act of 1985. territory, tribe, or tribal organization re-
(INCLUDING TRANSFER OF FUNDS) ceiving funds pursuant to this title shall up-
For an additional amount for ‘‘Public SA 2517. Ms. MCSALLY submitted an date their plans, as applicable, for COVID–19
amendment intended to be proposed to testing and contact tracing submitted to the
Health and Social Services Emergency
amendment SA 2499 proposed by Mr. Secretary pursuant to the Paycheck Protec-
Fund’’, $16,000,000,000, to remain available
MCCONNELL to the bill S. 178, to con- tion Program and Health Care Enhancement
until expended, to prevent, prepare for, and
Act (Public Law 116–139) and submit such up-
respond to coronavirus, domestically or demn gross human rights violations of dates to the Secretary not later than 60 days
internationally, which shall be for necessary ethnic Turkic Muslims in Xinjiang, and after funds appropriated in this paragraph in
expenses for testing, contact tracing, sur- calling for an end to arbitrary deten- this Act have been awarded to such recipi-
veillance, containment, and mitigation to
tion, torture, and harassment of these ent: Provided further, That funds an entity
monitor and suppress COVID–19, including
tests for both active infection and prior ex- communities inside and outside China; receives from amounts described in the first
which was ordered to lie on the table; proviso in this paragraph may also be used
posure, including molecular, antigen, and se-
as follows: for the rent, lease, purchase, acquisition,
rological tests, the manufacturing, procure-
construction, alteration, renovation, or
ment and distribution of tests, testing equip- At the appropriate place, insert the fol-
equipping of non-federally owned facilities to
ment and testing supplies, including per- lowing:
improve coronavirus preparedness and re-
sonal protective equipment needed for ad- TITLE ll— sponse capability at the State and local
ministering tests, the development and vali- DEPARTMENT OF HEALTH AND HUMAN level: Provided further, That such amount is
dation of rapid, molecular point-of-care SERVICES designated by the Congress as being for an
tests, and other tests, support for workforce,
OFFICE OF THE SECRETARY emergency requirement pursuant to section
epidemiology, to scale up academic, commer-
PUBLIC HEALTH AND SOCIAL SERVICES 251(b)(2)(A)(i) of the Balanced Budget and
cial, public health, and hospital laboratories,
EMERGENCY FUND Emergency Deficit Control Act of 1985.
to conduct surveillance and contact tracing,
support development of COVID–19 testing (INCLUDING TRANSFER OF FUNDS)
SA 2518. Mr. BLUNT (for himself,
plans, and other related activities related to For an additional amount for ‘‘Public
COVID–19 testing: Provided, That of the Health and Social Services Emergency
Mrs. CAPITO, and Mrs. HYDE-SMITH)
amount appropriated under this paragraph in Fund’’, $16,000,000,000, to remain available submitted an amendment intended to
this Act, not less than $15,000,000,000 shall be until expended, to prevent, prepare for, and be proposed by him to the bill S. 178, to
for States, localities, territories, tribes, trib- respond to coronavirus, domestically or condemn gross human rights violations
al organizations, urban Indian health organi- internationally, which shall be for necessary of ethnic Turkic Muslims in Xinjiang,
zations, or health service providers to tribes expenses for testing, contact tracing, sur- and calling for an end to arbitrary de-
for necessary expenses for testing, contact veillance, containment, and mitigation to tention, torture, and harassment of
tracing, surveillance, containment, and miti- monitor and suppress COVID–19, including these communities inside and outside
gation, including support for workforce, epi- tests for both active infection and prior ex-
demiology, use by employers, elementary posure, including molecular, antigen, and se-
China; which was ordered to lie on the
and secondary schools, child care facilities, rological tests, the manufacturing, procure- table; as follows:
institutions of higher education, long-term ment and distribution of tests, testing equip- At the appropriate place, insert the fol-
care facilities, or in other settings, scale up ment and testing supplies, including per- lowing:
of testing by public health, academic, com- sonal protective equipment needed for ad- DEPARTMENT OF HEALTH AND HUMAN
mercial, and hospital laboratories, and com- ministering tests, the development and vali- SERVICES
munity-based testing sites, health care fa- dation of rapid, molecular point-of-care NATIONAL INSTITUTES OF HEALTH
cilities, and other entities engaged in tests, and other tests, support for workforce, NATIONAL HEART, LUNG, AND BLOOD INSTITUTE
COVID–19 testing, and other related activi- epidemiology, to scale up academic, commer- For an additional amount for ‘‘National
ties related to COVID–19 testing, contact cial, public health, and hospital laboratories, Heart, Lung, and Blood Institute’’,
tracing, surveillance, containment, and miti- to conduct surveillance and contact tracing, $290,000,000, to remain available until Sep-
gation: Provided further, That the amount support development of COVID–19 testing tember 30, 2024, to prevent, prepare for, and
identified in the preceding proviso shall be plans, and other related activities related to respond to coronavirus, domestically or
allocated to States, localities, and terri- COVID–19 testing: Provided, That of the internationally: Provided, That such amount
tories according to the formula that applied amount appropriated under this paragraph in is designated by the Congress as being for an
to the Public Health Emergency Prepared- this Act, not less than $15,000,000,000 shall be emergency requirement pursuant to section
ness cooperative agreement in fiscal year for States, localities, territories, tribes, trib- 251(b)(2)(A)(i) of the Balanced Budget and
2019: Provided further, That not less than al organizations, urban Indian health organi- Emergency Deficit Control Act of 1985.
$500,000,000 shall be allocated in coordination zations, or health service providers to tribes
NATIONAL INSTITUTE OF DIABETES AND
with the Director of the Indian Health Serv- for necessary expenses for testing, contact
DIGESTIVE AND KIDNEY DISEASES
ice, to tribes, tribal organizations, urban In- tracing, surveillance, containment, and miti-
dian health organizations, or health service gation, including support for workforce, epi- For an additional amount for ‘‘National In-
providers to tribes: Provided further, That the demiology, use by employers, elementary stitute of Diabetes and Digestive and Kidney
Secretary of Health and Human Services (re- and secondary schools, child care facilities, Diseases’’, $200,000,000, to remain available
ferred to in this paragraph as the ‘‘Sec- institutions of higher education, long-term until September 30, 2024, to prevent, prepare
retary’’) may satisfy the funding thresholds care facilities, or in other settings, scale up for, and respond to coronavirus, domestically
outlined in the first and third provisos under of testing by public health, academic, com- or internationally: Provided, That such
this paragraph in this Act by making awards mercial, and hospital laboratories, and com- amount is designated by the Congress as
SSpencer on DSK126QN23PROD with SENATE
through other grant or cooperative agree- munity-based testing sites, health care fa- being for an emergency requirement pursu-
ment mechanisms: Provided further, That the cilities, and other entities engaged in ant to section 251(b)(2)(A)(i) of the Balanced
Governor or designee of each State, locality, COVID–19 testing, and other related activi- Budget and Emergency Deficit Control Act
territory, tribe, or tribal organization re- ties related to COVID–19 testing, contact of 1985.
ceiving funds pursuant to this title shall up- tracing, surveillance, containment, and miti- NATIONAL INSTITUTE OF ALLERGY AND
date their plans, as applicable, for COVID–19 gation: Provided further, That the amount INFECTIOUS DISEASES
testing and contact tracing submitted to the identified in the preceding proviso shall be For an additional amount for ‘‘National In-
Secretary pursuant to the Paycheck Protec- allocated to States, localities, and terri- stitute of Allergy and Infectious Diseases’’,
VerDate Sep 11 2014 08:41 Aug 05, 2020 Jkt 099060 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\CR\FM\A04AU6.047 S04AUPT1
File and source
- File
- CREC_crec-2020-08-04_crec-2020-08-04-pt1-pgs4774.pdf
- Size
- 239,183 bytes
- SHA-256
- da84c97235f037df559edde985f0b74834029ffbde27c71dbb0b453ac07bd26d
- Original
- www.govinfo.gov