PUBLIC LAW 99-272—APR. 7, 1986 (d)
100 STAT. 323
QUALIFIED REGIONAL POLLUTION CONTROL AUTHORITY DE-
FINED.—For purposes of this section, the term "qualified regional pollution control authority" means an authority which— (1) is a political subdivision created by State law to control air or water pollution, (2) has within its jurisdictional boundaries all or part of at least 2 counties (or equivalent political subdivision), (3) operates air or water pollution control facilities, and (4) was created on September 1, 1969. (e) REPEAL OF SECTION 103(b)(ll).—Paragraph (11) of section 103(b) 26 USC 103. is hereby repealed. SEC. 13210. TREATMENT OF THE NETTING OF GAINS AND LOSSES BY COOPERATIVES. (a) IN GENERAL.—Section 1388 (relating to definitions and special 26 USC 1388. rules applicable to cooperatives) is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection: "(j) SPECIAL RULES FOR THE NETTING OF GAINS AND LOSSES BY
COOPERATIVES.—For purposes of this subchapter, in the case of any organization to which part I of this subchapter applies— 26 USC 1381. "(1) OPTIONAL NETTING OF PATRONAGE GAINS AND LOSSES PER-
MITTED.—The net earnings of such organization may, at its option, be determined by offsetting patronage losses (including any patronage loss carried to such year) which are attributable to 1 or more allocation units (whether such units are functional, divisional, departmental, geographic, or otherwise) against patronage earnings of 1 or more other such allocation units. "(2) CERTAIN NETTING PERMITTED AFTER SECTION 381 TRANS-
ACTIONS.—If such an organization acquires the assets of another such organization in a transaction described in section 381(a), 26 USC 381. the acquiring organization may, in computing its net earnings for taxable years ending after the date of acquisition, offset losses of 1 or more allocation units of the acquiring or acquired organization against earnings of the acquired or acquiring organization, respectively, but only to the extent— "(A) such earnings are properly allocable to periods after the date of acquisition, and "(B) such earnings could have been offset by such losses if such earnings and losses had been derived from allocation units of the same organization. "(3) NOTICE REQUIREMENTS.—
"(A) IN GENERAL.—In the case of any organization which exercises its option under paragraph (1) for any taxable year, such organization shall, on or before the 15th day of the 9th month following the close of such taxable year, provide to its patrons a written notice which— "(i) states that the organization has offset earnings and losses from 1 or more of its allocation units and that such offset may have affected the amount which is being distributed to its patrons, "(ii) states generally the identity of the offsetting allocation units, and "(iii) states briefly what rights, if any, its patrons may have to additional financial information of such organization under terms of its charter, articles of incorporation, or bylaws, or under any provision of law.
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