118 STAT. 611 PUBLIC LAW 108–218—APR. 10, 2004 ‘‘(II) more than 35 percent of such gross receipts consist of premiums. Clause (ii) shall not apply to a company if any employee of the company, or a member of the employee’s family (as defined in section 2032A(e)(2)), is an employee of another company exempt from taxation by reason of this paragraph (or would be so exempt but for this sentence).’’. (b) CONTROLLED GROUP RULE.—Section 501(c)(15)(C) of the Internal Revenue Code of 1986 is amended by inserting ‘‘, except that in applying section 831(b)(2)(B)(ii) for purposes of this subpara graph, subparagraphs (B) and (C) of section 1563(b)(2) shall be disregarded’’ before the period at the end. (c) DEFINITION OF INSURANCE COMPANY FOR SECTION 831.— Section 831 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: ‘‘(c) INSURANCE COMPANY DEFINED.—For purposes of this sec tion, the term ‘insurance company’ has the meaning given to such term by section 816(a)).’’. (d) CONFORMING AMENDMENT.—Clause (i) of section 831(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking ‘‘exceed $350,000 but’’. (e) EFFECTIVE DATE.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2003. (2) TRANSITION RULE FOR COMPANIES IN RECEIVERSHIP OR LIQUIDATION.—In the case of a company or association which— (A) for the taxable year which includes April 1, 2004, meets the requirements of section 501(c)(15)(A) of the Internal Revenue Code of 1986, as in effect for the last taxable year beginning before January 1, 2004, and (B) on April 1, 2004, is in a receivership, liquidation, or similar proceeding under the supervision of a State court, the amendments made by this section shall apply to taxable years beginning after the earlier of the date such proceeding ends or December 31, 2007. SEC. 207. CONFIRMATION OF ANTITRUST STATUS OF GRADUATE MED ICAL RESIDENT MATCHING PROGRAMS. (a) FINDINGS AND PURPOSES.— (1) FINDINGS.—Congress makes the following findings: (A) For over 50 years, most United States medical school seniors and the large majority of graduate medical education programs (popularly known as ‘‘residency pro grams’’) have chosen to use a matching program to match medical students with residency programs to which they have applied. These matching programs have been an integral part of an educational system that has produced the finest physicians and medical researchers in the world. (B) Before such matching programs were instituted, medical students often felt pressure, at an unreasonably early stage of their medical education, to seek admission to, and accept offers from, residency programs. As a result, medical students often made binding commitments before they were in a position to make an informed decision 15 USC 37b. Applicability. 26 USC 501 note. 26 USC 831. 26 USC 501.
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