Title I, SEC. 1397. IMPOSITION AND COLLECTION OF PERIODIC ASSESSMENTS ON 
SELF-INSURED CORPORATE ALLIANCE PLANS. 
      (a) Imposition of Assessments. Upon a determination that additional 
    receipts to the Fund are necessary in order to enable the Fund to repay 
    amounts borrowed by the Fund under section 1396(c)(3) while maintaining a 
    balance sufficient to ensure the solvency of the Fund, the Secretary may 
    impose assessments under this section. The Secretary shall prescribe from 
    time to time such schedules of assessment rates and bases for the 
    application of such rates as may be necessary to provide for such 
    repayments. 

      (b) Uniformity of Assessments. The assessment rates prescribed by the 
    Secretary for any period shall be uniform for all plans, except that the 
    Secretary may vary the amount of such assessments by category, or waive the 
    application of such assessments by category, taking into account 
    differences in the financial solvency of, and financial reserves maintained 
    by, plans in each category. 

      (c) Limitation on Amount of Assessment. The total amount assessed against 
    a corporate alliance health plan under this section during a year may not 
    exceed 2 percent of the total premiums paid to the plan with respect to 
    corporate alliance eligible individuals enrolled with the plan during the 
    year. 

      (d) Payment of Assessments. 

        (1) Obligation to pay. The designated payor of each plan shall pay the 
      assessments imposed by the Secretary of Labor under this section with 
      respect to that plan when they are due. Assessments under this section 
      are payable at the time, and on an estimated, advance, or other basis, as 
      determined by the Secretary. Assessments shall continue to accrue until 
      the plan's assets are distributed pursuant to a termination procedure or 
      the Secretary is appointed to serve as trustee of the plan under section 
      1395. 

        (2) Late payment charges and interest. 

          (A) Late payment charges. If any assessment is not paid when it is 
        due, the Secretary may assess a late payment charge of not more than 
        100 percent of the assessment payment which was not timely paid. 

          (B) Waivers. Subparagraph (A) shall not apply to any assessment 
        payment made within 60 days after the date on which payment is due, if 
        before such date, the designated payor obtains a waiver from the 
        Secretary of Labor based upon a showing of substantial hardship arising 
        from the timely payment of the assessment. The Secretary may grant a 
        waiver under this subparagraph upon application made by the designated 
        payor, but the Secretary may not grant a waiver if it appears that the 
        designated payor will be unable to pay the assessment within 60 days 
        after the date on which it is due. 

          (C) Interest. If any assessment is not paid by the last date 
        prescribed for a payment, interest on the amount of such assessment at 
        the rate imposed under section 6601(a) of the Internal Revenue Code of 
        1986 shall be paid for the period from such last date to the date paid. 

      (e) Civil Action upon Nonpayment. If any designated payor fails to pay an 
    assessment when due, the Secretary of Labor may bring a civil action in any 
    district court of the United States within the jurisdiction of which the 
    plan assets are located, the plan is administered, or in which a defendant 
    resides or is found, for the recovery of the amount of the unpaid 
    assessment, any late payment charge, and interest, and process may be 
    served in any other district. The district courts of the United States 
    shall have jurisdiction over actions brought under this subsection by the 
    Secretary without regard to the amount in controversy. 

      (f) Guarantee Held Harmless. The Secretary of Labor shall not cease to 
    guarantee benefits on account of the failure of a designated payor to pay 
    any assessment when due. 

      (g) Designated Payor Defined. 

        (1) In general. For purposes of this section, the term ``designated 
      payor'' means 

          (A) the employer or plan administrator in any case in which the 
        eligible sponsor of the corporate alliance health plan is described in 
        subparagraph (A) or (D) of section 1311(b)(1); and 

          (B) the contributing employers or the plan administrator in any case 
        in which the eligible sponsor of the corporate alliance health plan is 
        described in subparagraph (B) or (C) of section 1311(b)(1). 

        (2) Controlled groups. If an employer is a member of a controlled 
      group, each member of such group shall be jointly and severally liable 
      for any assessments required to be paid by such employer. For purposes of 
      the preceding sentence, the term ``controlled group'' means any group 
      treated as a single employer under subsection (b), (c), (m), or (o) of 
      section 414 of the Internal Revenue Code of 1986.