106 
ticipating employer’, and ‘health insurance issuer’ have 
the meanings provided such terms in section 811, respec-
tively.’’. 
(3) Section 514(b)(6)(A) of such Act (29 
U.S.C. 1144(b)(6)(A)) is amended— 
(A) in clause (i)(II), by striking ‘‘and’’ at 
the end; 
(B) in clause (ii), by inserting ‘‘and which 
does not provide medical care (within the mean-
ing of section 733(a)(2)),’’ after ‘‘arrange-
ment,’’, and by striking ‘‘title.’’ and inserting 
‘‘title, and’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(iii) subject to subparagraph (E), in the case 
of any other employee welfare benefit plan which is 
a multiple employer welfare arrangement and which 
provides medical care (within the meaning of section 
733(a)(2)), any law of any State which regulates in-
surance may apply.’’. 
(4) Section 514(e) of such Act (as redesignated 
by paragraph (2)(C)) is amended— 
(A) by striking ‘‘Nothing’’ and inserting 
‘‘(1) Except as provided in paragraph (2), noth-
ing’’; and
107 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) Nothing in any other provision of law enacted 
on or after the date of the enactment of the Small Busi-
ness Access and Choice for Entrepreneurs Act of 2005 
shall be construed to alter, amend, modify, invalidate, im-
pair, or supersede any provision of this title, except by 
specific cross-reference to the affected section.’’. 
(c) PLAN SPONSOR.—Section 3(16)(B) of such Act 
(29 U.S.C. 102(16)(B)) is amended by adding at the end 
the following new sentence: ‘‘Such term also includes a 
person serving as the sponsor of an association health plan 
under part 8.’’. 
(d) DISCLOSURE OF SOLVENCY PROTECTIONS RE-
LATED TO SELF-INSURED AND FULLY INSURED OPTIONS 
UNDER ASSOCIATION HEALTH PLANS.—Section 102(b) 
of such Act (29 U.S.C. 102(b)) is amended by adding at 
the end the following: ‘‘An association health plan shall 
include in its summary plan description, in connection 
with each benefit option, a description of the form of sol-
vency or guarantee fund protection secured pursuant to 
this Act or applicable State law, if any.’’. 
(e) SAVINGS CLAUSE.—Section 731(c) of such Act is 
amended by inserting ‘‘or part 8’’ after ‘‘this part’’.
108 
(f) REPORT TO THE CONGRESS REGARDING CERTIFI-
CATION
OF
SELF-INSURED
ASSOCIATION
HEALTH 
PLANS.—Not later than January 1, 2010, the Secretary 
of Labor shall report to the Committee on Education and 
the Workforce of the House of Representatives and the 
Committee on Health, Education, Labor, and Pensions of 
the Senate the effect association health plans have had, 
if any, on reducing the number of uninsured individuals. 
(g) CLERICAL AMENDMENT.—The table of contents 
in section 1 of the Employee Retirement Income Security 
Act of 1974 is amended by inserting after the item relat-
ing to section 734 the following new items: 
‘‘PART 8—RULES GOVERNING ASSOCIATION HEALTH PLANS 
‘‘801. Association health plans. 
‘‘802. Certification of association health plans. 
‘‘803. Requirements relating to sponsors and boards of trustees. 
‘‘804. Participation and coverage requirements. 
‘‘805. Other requirements relating to plan documents, contribution rates, and 
benefit options. 
‘‘806. Maintenance of reserves and provisions for solvency for plans providing 
health benefits in addition to health insurance coverage. 
‘‘807. Requirements for application and related requirements. 
‘‘808. Notice requirements for voluntary termination. 
‘‘809. Corrective actions and mandatory termination. 
‘‘810. Trusteeship by the Secretary of insolvent association health plans pro-
viding health benefits in addition to health insurance coverage. 
‘‘811. State assessment authority. 
‘‘812. Special rules for church plans. 
‘‘813. Definitions and rules of construction.’’. 
SEC. 403. CLARIFICATION OF TREATMENT OF SINGLE EM-
PLOYER ARRANGEMENTS. 
Section 3(40)(B) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(40)(B)) is amend-
ed—
109 
(1) in clause (i), by inserting ‘‘for any plan year 
of any such plan, or any fiscal year of any such 
other arrangement,’’ after ‘‘single employer’’, and by 
inserting ‘‘during such year or at any time during 
the preceding 1-year period’’ after ‘‘control group’’; 
(2) in clause (iii)— 
(A) by striking ‘‘common control shall not 
be based on an interest of less than 25 percent’’ 
and inserting ‘‘an interest of greater than 25 
percent may not be required as the minimum 
interest necessary for common control’’; and 
(B) by striking ‘‘similar to’’ and inserting 
‘‘consistent and coextensive with’’; 
(3) by redesignating clauses (iv) and (v) as 
clauses (v) and (vi), respectively; and 
(4) by inserting after clause (iii) the following 
new clause: 
‘‘(iv) in determining, after the application of 
clause (i), whether benefits are provided to employ-
ees of two or more employers, the arrangement shall 
be treated as having only one participating employer 
if, after the application of clause (i), the number of 
individuals who are employees and former employees 
of any one participating employer and who are cov-
ered under the arrangement is greater than 75 per-
110 
cent of the aggregate number of all individuals who 
are employees or former employees of participating 
employers and who are covered under the arrange-
ment;’’. 
SEC. 404. CLARIFICATION OF TREATMENT OF CERTAIN 
COLLECTIVELY 
BARGAINED 
ARRANGE-
MENTS. 
(a) IN GENERAL.—Section 3(40)(A)(i) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(40)(A)(i)) is amended to read as follows: 
‘‘(i)(I) under or pursuant to one or more collec-
tive bargaining agreements which are reached pursu-
ant to collective bargaining described in section 8(d) 
of the National Labor Relations Act (29 U.S.C. 
158(d)) or paragraph Fourth of section 2 of the 
Railway Labor Act (45 U.S.C. 152, paragraph 
Fourth) or which are reached pursuant to labor- 
management negotiations under similar provisions of 
State public employee relations laws, and (II) in ac-
cordance with subparagraphs (C), (D), and (E);’’. 
(b) LIMITATIONS.—Section 3(40) of such Act (29 
U.S.C. 1002(40)) is amended by adding at the end the 
following new subparagraphs: 
‘‘(C) For purposes of subparagraph (A)(i)(II), a plan 
or other arrangement shall be treated as established or
111 
maintained in accordance with this subparagraph only if 
the following requirements are met: 
‘‘(i) The plan or other arrangement, and the 
employee organization or any other entity sponsoring 
the plan or other arrangement, do not— 
‘‘(I) utilize the services of any licensed in-
surance agent or broker for soliciting or enroll-
ing employers or individuals as participating 
employers or covered individuals under the plan 
or other arrangement; or 
‘‘(II) pay any type of compensation to a 
person, other than a full time employee of the 
employee organization (or a member of the or-
ganization to the extent provided in regulations 
prescribed by the Secretary through negotiated 
rulemaking), that is related either to the volume 
or number of employers or individuals solicited 
or enrolled as participating employers or cov-
ered individuals under the plan or other ar-
rangement, or to the dollar amount or size of 
the contributions made by participating employ-
ers or covered individuals to the plan or other 
arrangement; 
except to the extent that the services used by the plan, 
arrangement, organization, or other entity consist solely
112 
of preparation of documents necessary for compliance with 
the reporting and disclosure requirements of part 1 or ad-
ministrative, investment, or consulting services unrelated 
to solicitation or enrollment of covered individuals. 
‘‘(ii) As of the end of the preceding plan year, 
the number of covered individuals under the plan or 
other arrangement who are neither— 
‘‘(I) employed within a bargaining unit 
covered by any of the collective bargaining 
agreements with a participating employer (nor 
covered on the basis of an individual’s employ-
ment in such a bargaining unit); nor 
‘‘(II) present employees (or former employ-
ees who were covered while employed) of the 
sponsoring employee organization, of an em-
ployer who is or was a party to any of the col-
lective bargaining agreements, or of the plan or 
other arrangement or a related plan or arrange-
ment (nor covered on the basis of such present 
or former employment); 
does not exceed 15 percent of the total number of 
individuals who are covered under the plan or ar-
rangement and who are present or former employees 
who are or were covered under the plan or arrange-
ment pursuant to a collective bargaining agreement
113 
with a participating employer. The requirements of 
the preceding provisions of this clause shall be treat-
ed as satisfied if, as of the end of the preceding plan 
year, such covered individuals are comprised solely 
of individuals who were covered individuals under 
the plan or other arrangement as of the date of the 
enactment of the Small Business Access and Choice 
for Entrepreneurs Act of 2003 and, as of the end of 
the preceding plan year, the number of such covered 
individuals does not exceed 25 percent of the total 
number of present and former employees enrolled 
under the plan or other arrangement. 
‘‘(iii) The employee organization or other entity 
sponsoring the plan or other arrangement certifies 
to the Secretary each year, in a form and manner 
which shall be prescribed by the Secretary through 
negotiated rulemaking that the plan or other ar-
rangement meets the requirements of clauses (i) and 
(ii). 
‘‘(D) For purposes of subparagraph (A)(i)(II), a plan 
or arrangement shall be treated as established or main-
tained in accordance with this subparagraph only if— 
‘‘(i) all of the benefits provided under the plan 
or arrangement consist of health insurance coverage; 
or
114 
‘‘(ii)(I) the plan or arrangement is a multiem-
ployer plan; and 
‘‘(II) the requirements of clause (B) of the pro-
viso to clause (5) of section 302(c) of the Labor 
Management Relations Act, 1947 (29 U.S.C. 
186(c)) are met with respect to such plan or other 
arrangement. 
‘‘(E) For purposes of subparagraph (A)(i)(II), a plan 
or arrangement shall be treated as established or main-
tained in accordance with this subparagraph only if— 
‘‘(i) the plan or arrangement is in effect as of 
the date of the enactment of the Small Business Ac-
cess and Choice for Entrepreneurs Act of 2005; or 
‘‘(ii) the employee organization or other entity 
sponsoring the plan or arrangement— 
‘‘(I) has been in existence for at least 3 
years; or 
‘‘(II) demonstrates to the satisfaction of 
the Secretary that the requirements of subpara-
graphs (C) and (D) are met with respect to the 
plan or other arrangement.’’. 
(c) CONFORMING AMENDMENTS TO DEFINITIONS OF 
PARTICIPANT AND BENEFICIARY.—Section 3(7) of such 
Act (29 U.S.C. 1002(7)) is amended by adding at the end 
the following new sentence: ‘‘Such term includes an indi-
115 
vidual who is a covered individual described in paragraph 
(40)(C)(ii).’’. 
SEC. 405. ENFORCEMENT PROVISIONS. 
(a) CRIMINAL PENALTIES FOR CERTAIN WILLFUL 
MISREPRESENTATIONS.—Section 501 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1131) 
is amended— 
(1) by inserting ‘‘(a)’’ after ‘‘Sec. 501.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) Any person who willfully falsely represents, to 
any employee, any employee’s beneficiary, any employer, 
the Secretary, or any State, a plan or other arrangement 
established or maintained for the purpose of offering or 
providing any benefit described in section 3(1) to employ-
ees or their beneficiaries as— 
‘‘(1) being an association health plan which has 
been certified under part 8; 
‘‘(2) having been established or maintained 
under or pursuant to one or more collective bar-
gaining agreements which are reached pursuant to 
collective bargaining described in section 8(d) of the 
National Labor Relations Act (29 U.S.C. 158(d)) or 
paragraph Fourth of section 2 of the Railway Labor 
Act (45 U.S.C. 152, paragraph Fourth) or which are