TREATMENT OF CERTAIN UNIVERSITY ACCOUNTS.

SEC. 1802. TREATMENT OF CERTAIN UNIVERSITY ACCOUNTS. (a) In General.— For purposes of subsection (s) of section 3121 of the Internal Revenue Code of 1986 (relating to concurrent employment by 2 or more employers)— (1) the following entities shall be deemed to be related corporations that concurrently employ the same individual: (A) a State university which employs health professionals as faculty members at a medical school, and (B) an agency account of a State university which is described in subparagraph (A) and from which there is distributed to such faculty members payments forming a part of the compensation that the State, or such State university, as the case may be, agrees to pay to such faculty members, but only if— (i) such agency account is authorized by State law and receives the funds for such payments from a faculty practice plan described in section 501(c)(3) of such Code and exempt from tax under section 501(a) of such Code, (ii) such payments are distributed by such agency account to such faculty members who render patient care at such medical school, and (iii) such faculty members comprise at least 30 percent of the membership of such faculty practice plan, and (2) remuneration which is disbursed by such agency account to any such faculty member of the medical school described in paragraph (1)(A) shall be deemed to have been actually disbursed by the State, or such State university, as the case may be, as a common paymaster and not to have been actually disbursed by such agency account. (b) Effective Date.— The provisions of subsection (a) shall apply to remuneration paid after December 31, 1996.