I
103D CONGRESS
1ST SESSION
H. R. 1881
To amend title I of the Employee Retirement Income Security Act of 1974
to promote fairness in administration of health insurance and other
claims under employee welfare benefit plans and to improve enforcement
under such title with respect to such plans.
IN THE HOUSE OF REPRESENTATIVES
APRIL 28, 1993
Mr. BERMAN (for himself, Mr. FORD of Michigan, Mr. WILLIAMS, and Mr.
STARK) introduced the following bill; which was referred to the Commit-
tee on Education and Labor
A BILL
To amend title I of the Employee Retirement Income Secu-
rity Act of 1974 to promote fairness in administration
of health insurance and other claims under employee
welfare benefit plans and to improve enforcement under
such title with respect to such plans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Health Insurance
Claims Fairness Act of 1993’’.
SEC. 2. IMPROVEMENTS IN CLAIMS PROCEDURE.
(a) QUALIFIED WELFARE PLAN CLAIM DEFINED.—
Section 3 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1002) is amended by adding at
the end the following new paragraph:
‘‘(42) The term ‘qualified welfare plan claim’ means
a notification of an employee welfare benefit plan of a
claim for benefits under the plan, or a request for coverage
of items or services under the plan, which—
‘‘(A) is in writing or in any other form per-
mitted by the plan, and
‘‘(B) is provided to the plan—
‘‘(i) by the participant, or
‘‘(ii) on behalf of the participant in accord-
ance with the plan by any other person in con-
nection with items or services provided or to be
provided by such other person to the partici-
pant or a beneficiary under the plan.
For purposes of this paragraph, any request for
preauthorization for benefits under the plan shall be treat-
ed as a claim for benefits under the plan.’’.
(b) REVIEW REQUIREMENTS FOR QUALIFIED WEL-
FARE PLAN CLAIMS.—
(1) IN GENERAL.—Section 503 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1133) is amended—
(A) by inserting ‘‘(a) IN GENERAL.—’’
after ‘‘SEC. 503.’’; and
(B) by adding at the end the following new
subsections:
‘‘(b) REVIEW REQUIREMENTS FOR QUALIFIED WEL-
FARE PLAN CLAIMS.—An employee welfare benefit plan
shall not be treated as complying with the requirements
of subsection (a) unless such plan complies with the fol-
lowing requirements:
‘‘(1) TIME LIMIT FOR CONSIDERATION OF COM-
PLETED CLAIMS.—Within 30 days after submission
of a qualified welfare plan claim to the plan in com-
plete form, the plan shall provide to the claimant a
written notice of the plan’s approval or denial of the
claim. Within 5 days after the date of any deter-
mination by the plan to deny the claim, the plan
shall provide the claimant with a written notice set-
ting forth the reasons for the denial, referencing the
policy provision, condition, or exclusion upon which
the denial is based, and including notice of the right
to appeal the denial under paragraph (2). In any
case in which the claim is filed by another person on
behalf of a participant, any notice required to be
provided to the claimant under this paragraph shall
not be treated as so provided until such notice also
is provided to the participant.
‘‘(2) PLAN’S DUTY TO REVIEW DENIALS UPON
TIMELY REQUEST.—The plan shall review its denial
of the claim if—
‘‘(A) within 120 days after receipt of writ-
ten notice from the plan of the denial, a written
request for reconsideration of the claim is filed
with the plan by the claimant (or by the partici-
pant in any case in which the claim was filed
by another person on behalf of the participant),
or
‘‘(B) the claim is a claim for benefits
under the plan other than a request for
preauthorization and involves items or services
the aggregate value or expected aggregate value
of which is reasonably estimated to exceed
$10,000.
‘‘(3) TIME LIMIT FOR REVIEW.—The plan shall
complete any review required under paragraph (2),
and shall provide to the claimant (and to the partici-
pant in any case in which the claim was filed by an-
other person on behalf of the participant) written
notice of the plan’s decision on the claim after re-
consideration pursuant to such review—
‘‘(A) within 30 days after receipt of the re-
quest for reconsideration, in any case described
in paragraph (2)(A), or
‘‘(B) within 30 days after the date of the
initial determination, in any case described in
paragraph (2)(B).
‘‘(4) DE NOVO REVIEWS.—Any review required
under paragraph (2)—
‘‘(A) shall be de novo,
‘‘(B) shall be conducted by an individual
who did not make the initial decision denying
the claim and who is authorized to approve pay-
ment of the claim, and
‘‘(C) shall include review by a qualified
physician if the resolution of any issues involved
requires medical expertise or a determination of
medical necessity.
‘‘(c) TREATMENT OF REQUESTS TO GROUP HEALTH
PLANS FOR PREAUTHORIZATION.—
‘‘(1) IN GENERAL.—This subsection applies in
the case of any qualified welfare plan claim consist-
ing of a request by a participant (or by any other
person on behalf of a participant with respect to
items or services to be provided thereby to the par-
ticipant or a beneficiary) for preauthorization of
items or services which is submitted to a group
health plan prior to receipt of such items or services
and which involves—
‘‘(A) urgent treatment for a life-threaten-
ing illness or condition,
‘‘(B) a high-risk pregnancy, or
‘‘(C) items or services the aggregate value
or expected aggregate value of which is reason-
ably estimated to total at least $20,000.
‘‘(2) SHORTENED TIME LIMIT FOR CONSIDER-
ATION
OF
REQUESTS
FOR
PREAUTHORIZATION.—
Notwithstanding subsection (b)(1), a group health
plan shall approve or deny any qualified welfare plan
claim consisting of a request for preauthorization de-
scribed in paragraph (1) before 10 days (3 days if
the request involves urgent treatment for a life-
threatening illness or condition) after submission of
the claim to the plan, irrespective of the complete-
ness of the claim.
‘‘(3) AUTOMATIC REVIEW.—The plan shall re-
view any determination to deny a request for
preauthorization described in paragraph (1) before 3
days after the date of the initial determination. Any
such review shall be conducted in accordance with
the requirements of subsection (b)(4) as if the re-
quest were a claim to which such subsection applies.
‘‘(4) EXPEDITED EXHAUSTION OF PLAN REM-
EDIES.—Upon completion of the review required
under 
paragraph 
(3), 
the 
request 
for
preauthorization shall be treated as a qualified wel-
fare plan claim with respect to which all remedies
under the plan provided pursuant to this section are
exhausted for purposes of further action under this
part.
‘‘(5) DENIAL
OF
PREVIOUSLY
AUTHORIZED
CLAIMS NOT PERMITTED.—In any case in which a
group health plan approves the request of any per-
son for preauthorization described in paragraph
(1)—
‘‘(A) the plan may not subsequently deny
any claim by such person for any items or serv-
ices involved, unless the plan makes a showing
of intentional misrepresentation by such person
of a material fact, and
‘‘(B) if any claim referred to in subpara-
graph (A) is denied in violation of subpara-
graph (A), all remedies under the plan provided
pursuant to this section with respect to such
claim shall be treated as exhausted for purposes
of further action on the claim under this part.
‘‘(d) TIME LIMIT FOR DETERMINATION OF INCOM-
PLETENESS OF CLAIM.—For purposes of this section, a
qualified welfare plan claim shall be treated as filed in
complete form for purposes of subsection (b)(1) as of 10
days (3 days in the case of any such claim which involves
urgent treatment for a life-threatening illness or condition
or a high-risk pregnancy) after the date of the submission
of the claim, unless, within such period, the plan provides
to the claimant (and to the participant in any case in
which the claim was filed by another person on behalf of
the participant) a written notice of any required matter
remaining to be filed in order to complete the claim which
includes any forms necessary to complete the claim. Any
filing of matter requested by the plan pursuant to this
paragraph shall be treated for purposes of this section as
an initial filing of the claim.
‘‘(e) ADDITIONAL NOTICE
AND DISCLOSURE RE-
QUIREMENTS FOR GROUP HEALTH PLANS.—In the case
of a denial by a group health plan of a qualified welfare
plan claim—
‘‘(1) if the denial is based in whole or in part
on a determination that the claim exceeds reim-
bursement rates based on reasonable and customary
charges, the notice provided pursuant to subsection
(a)(1) shall set forth the factual basis for such de-
termination,
‘‘(2) if the denial is based in whole or in part
on exclusion of coverage with respect to items or
services because such items or services are deter-
mined to comprise an experimental treatment or in-
vestigatory procedure, such notice shall set forth the
medical basis for such determination and a descrip-
tion of the process used in making such determina-
tion, and
‘‘(3) if the denial is based in whole or in part
on a determination that the treatment is not medi-
cally necessary, such notice shall set forth the medi-
cal basis for such determination and a description of
the process used in making such determination.
‘‘(f) RECORDS
MAINTENANCE
REQUIREMENTS.—
Each group health plan shall—
‘‘(1) record and maintain data relating to all
qualified welfare plan claims, for which files are
pending, or were pending and are closed, during the
current plan year and the 2 preceding plan years, in
such form and manner as is necessary to enable the
plan to readily retrieve, with respect to each claim,
the claim number, the line of coverage, the date of
loss, and the date of payment,
‘‘(2) construct and maintain, with respect to
each such claim, a file containing in detail such doc-
umentation as is necessary to permit reconstruction
of the plan’s activities in relation to the claim, and
‘‘(3) ensure that each document contained in
each such file indicates the date it was received by
the plan, the date it was processed by the plan, and
the date on which any copy of such document which
has been mailed by the plan was so mailed.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to claims
filed after the date of the enactment of this Act.
(c) PROHIBITION OF WAIVER CLAUSES.—
(1) IN GENERAL.—Section 503(a) of such Act
(as amended by subsection (b)) is further amend-
ed—
(A) by striking ‘‘shall’’;
(B) in paragraph (1), by inserting ‘‘shall’’
after ‘‘(1)’’, and by striking ‘‘and’’ at the end;
(C) in paragraph (2), by inserting ‘‘shall’’
after ‘‘(2)’’, and by striking ‘‘claim.’’ and in-
serting ‘‘claim, and’’; and
(D) by adding after paragraph (2) the fol-
lowing:
‘‘(3) may not require any party to waive any
right under the plan or this Act as a condition for
approval of any qualified welfare plan claim under
the plan, except to the extent otherwise specified in
a formal settlement agreement.
Any waiver described in paragraph (3) shall be null and
void unless such waiver is included in a formal settlement
agreement.’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply with respect to claims
and requests filed after the date of the enactment of
this Act.
(d) QUALIFIED WELFARE PLAN CLAIMS ASSISTANCE
PROGRAM.—
(1) IN GENERAL.—Section 503 of such Act (as
amended by the preceding provisions of this section)
is further amended by adding at the end the follow-
ing new subsection:
‘‘(f) QUALIFIED WELFARE PLAN CLAIMS ASSIST-
ANCE PROGRAM.—The Secretary shall establish by regula-
tion a qualified welfare plan claims assistance program.
Under the program, the Secretary shall make available to
participants and beneficiaries under employee welfare ben-
efit plans ongoing assistance in the resolution of qualified
welfare plan claims. Such assistance shall include, but not
be limited to, reviewing denials of claims, assisting in ap-
peals, contacting employee welfare benefit plans and insur-
ance contractors on behalf of participants and bene-
ficiaries, assisting participants and beneficiaries in obtain-
ing plan documents, and referring of cases for appropriate
enforcement action.’’.
(2) ESTABLISHMENT OF PROGRAM.—The Sec-
retary of Labor shall establish the qualified welfare
plan claims assistance program pursuant to section
503(f) of the Employee Retirement Income Security
Act of 1974 not later than 180 days after the date
of the enactment of this Act.
(e) TREATMENT OF SETTLEMENT AGREEMENT AS
TERMS OF PLAN.—
(1) IN GENERAL.—Section 503(a) of such Act
(as amended by subsection (d)) is further amended
by adding at the end the following new sentence:
‘‘The terms of any settlement agreement entered
into under the procedures established by an em-
ployee welfare benefit plan pursuant to this sub-
section shall be enforceable under this title as if
such terms were terms of the plan.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply with respect to settle-
ment agreements entered into after the date of the
enactment of this Act.
(f) DEFINITION OF GROUP HEALTH PLAN.—
(1) IN GENERAL.—Section 3 of such Act (as
amended by subsection (a)) is further amended by
adding at the end the following new paragraph:
‘‘(43) GROUP HEALTH PLAN.—The term ‘group
health plan’ means an employee welfare benefit plan that
provides health care benefits to participants or bene-
ficiaries directly or through insurance, reimbursement, or
otherwise.’’.
(2) 
CONFORMING
AMENDMENT.—Section
607(1) of such Act (29 U.S.C. 1167(1)) is amended
to read as follows:
‘‘(1) GROUP HEALTH PLAN.—For the definition
of ‘group health plan’, see section 3(43).’’.
(g) DEFINITION OF INSURANCE CONTRACTOR.—Sec-
tion 3 of such Act (as amended by subsection (f)) is fur-
ther amended by adding at the end the following new
paragraph:
‘‘(44) INSURANCE CONTRACTOR.—
‘‘(A) IN GENERAL.—The term ‘insurance con-
tractor’ for an employee welfare benefit plan means
any insurer who has entered into a legally binding
obligation to the plan or plan sponsor to provide
benefits under the plan or to administer claims for
such benefits.
‘‘(B) INSURER.—For purposes of subparagraph
(A), the term ‘insurer’ means any person or legal en-
tity engaged in the business of insurance, including
any insurance company, Lloyds insurer, fraternal
benefit society, medical service plan, hospital service
plan, health maintenance organization, prepaid lim-
ited health care service plan, and dental, optometric,
or other similar health service plan. Such term shall
include any agent, broker, or adjuster engaged by
such a person or entity and any third party adminis-
trator engaged to administer benefit claims under an
employee welfare benefit plan. For purposes of this
title, all entities referred to in this subparagraph
which are not employee benefit plans shall be
deemed to be engaged in the business of insurance.’’.
(h) ADDITIONAL DISCLOSURE REQUIREMENTS FOR
EMPLOYEE WELFARE BENEFIT PLANS.—
(1) IN GENERAL.—Section 104(b)(4) of such
Act (29 U.S.C. 1024(b)(4)) is amended in the first
sentence by striking ‘‘operated.’’ and inserting ‘‘op-
erated, any insurance contract under which benefits
are or were provided, and, in the case of a group
health plan, any fee or reimbursement schedules for
health care providers under the plan.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply with respect to requests
for any fee or reimbursement schedule which are
made after the date of the enactment of this Act.
SEC. 3. EARLY RESOLUTION PROGRAM.
(a) IN GENERAL.—Part 5 of subtitle B of title I of
the Employee Retirement Income Security Act of 1974 is
amended—
(1) by inserting after the heading for part 5 the
following new heading:
‘‘Subpart A—General Provisions’’;
and
(2) by adding at the end the following new sub-
part:
‘‘Subpart B—Early Resolution Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘SEC. 521. ESTABLISHMENT OF THE EARLY RESOLUTION
PROGRAM; CLAIMS RESOLUTION BOARD.
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary
shall establish and maintain an Early Resolution Program
for employee welfare benefit plans, which shall be adminis-
tered in the Department of Labor by a Claims Resolution
Board (hereinafter in this subpart referred to as the
‘Board’).
‘‘(b) IN GENERAL.—The Board shall—
‘‘(1) administer the Early Resolution Program
in accordance with regulations of the Board,
‘‘(2) develop Program policy and procedures,
‘‘(3) maintain a roster of facilitators to act for
the Board in mediation proceedings between parties
conducted under chapter 2, and coordinate the re-
cruitment, 
selection, 
and 
training 
of 
such
facilitators,
‘‘(4) provide meeting sites, maintain records,
and provide facilitators with administrative support
staff,
‘‘(5) establish and maintain attorney referral
panels, and
‘‘(6) monitor and evaluate the Program on an
ongoing basis.
‘‘(c) MEMBERSHIP.—The Board shall consist of
qualified attorneys or other professionals appointed by the
Secretary who have expertise in the area of employee wel-
fare benefits. The members shall serve for contempora-
neous terms of 3 years and may be reappointed for one
additional term. Vacancies for any term shall be filled for
the remainder of such term in the same manner as the
original appointment. Of the members of the Board—
‘‘(1) 2 members shall represent the interests of
employee welfare benefit plans and insurance con-
tractors,
‘‘(2) 2 other members shall represent the inter-
ests of plan participants and beneficiaries, and
‘‘(3) the remaining 2 members shall be experi-
enced in mediation and conciliation procedures.
No member of the Board may otherwise serve as an em-
ployee of the United States, any State, or any political
subdivision of a State. Not more than 3 members shall
be of the same political party. Members of the Board shall
serve without pay, except that each member shall receive
travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5,
United States Code. The Board shall elect one member
to serve as Chairman.
‘‘(d) EXECUTIVE DIRECTOR AND STAFF.—The Sec-
retary shall provide the Board with such administrative
staff and support services as the Secretary considers nec-
essary and appropriate. The administrative staff shall be
headed by an Executive Director appointed by the Board.
The Executive Director shall serve as the chief executive
officer of the Board and in such capacity shall, with the
assistance of such staff, conduct case intake under the
Program and otherwise assist the Board in carrying out
its functions. The Executive Director shall be paid at the
rate equivalent to the maximum rate for GS–14 of the
General Schedule.
‘‘(e) QUORUM.—Four members of the Board shall
constitute a quorum necessary for business, and four af-
firmative votes shall be necessary for action.
‘‘SEC. 522. ELIGIBILITY OF CASES FOR SUBMISSION TO
EARLY RESOLUTION PROGRAM.
‘‘(a) CASE CRITERIA.—A dispute may be submitted
to the Early Resolution Program only if the following re-
quirements are met with respect to such dispute:
‘‘(1) PARTIES.—The dispute consists of an as-
sertion by an individual of one or more claims, based
on alleged coverage as a participant or beneficiary
under an employee welfare benefit plan, against the
plan, one or more insurance contractors for such
plan, or both, and a denial of such claims by such
plan, any such insurance contractor, or both.
‘‘(2) NATURE OF CLAIM.—Each claim consists
of—
‘‘(A) a qualified welfare plan claim; or
‘‘(B) a claim arising out of the failure or
refusal by the plan or by an insurance contrac-
tor for the plan to comply with the claimant’s
request for information or documents the dis-
closure of which is required under this title (in-
cluding any claim of entitlement to disclosure
based on colorable claims to rights to benefits
under the plan).
‘‘(3) SUBMISSION AFTER EXHAUSTION OF PLAN
REMEDIES
AND
IN
LIEU
OF
COMMENCEMENT
OF
CIVIL ACTION.—The claimant has received a final
determination regarding the claim under the plan’s
claims procedure under section 503, or has otherwise
exhausted all remedies under the plan provided pur-
suant to section 503, and no action has been com-
menced by the claimant under section 502 asserting
a claim which is asserted by the claimant in the
dispute.
‘‘(b) REPRESENTATION
IN
CASES
OF
INCOM-
PETENCY.—Any claimant who is unable to have a basic
understanding of the Program or its process may be rep-
resented during the proceedings by a legal guardian or
other court-appointed representative.
‘‘(c) NOTICE
OF PROGRAM AVAILABILITY.—Each
employee welfare benefit plan shall provide, as part of its
claims review procedure established pursuant to section
503(a), that claimants taking part in such procedure will
be informed during such procedure of the availability of
the Early Resolution Program.
‘‘SEC. 523. FACILITATORS.
‘‘(a) RECRUITMENT.—The Board shall recruit indi-
viduals to serve as facilitators under the Early Resolution
Program from individuals who have the requisite expertise
for such service.
‘‘(b) CRITERIA.—In selecting individuals to serve as
facilitators, the Board shall consider the following:
‘‘(1) the individual’s experience in dispute reso-
lution.
‘‘(2) the individual’s ability to act impartially;
‘‘(3) the individual’s ability to perform evalua-
tions quickly and to present them in nontechnical
terms; and
‘‘(4) the individual’s experience in employee
benefit law and, to the extent that the individual’s
service will relate to group health plans, the individ-
ual’s expertise pertaining to medical or disability
issues;
‘‘(c) TRAINING OF FACILITATORS.—The Board shall
provide a training program for all new facilitators. The
curriculum shall include the procedures of the Program,
relevant ethical obligations, and skills in mediation and
conciliation necessary for effective alternative dispute res-
olution in the applicable proceedings. A facilitator may
serve only upon completion of such training program.
‘‘(d) ASSIGNMENT OF FACILITATORS TO CASES.—
Upon submission of a claim to mediation proceedings
under chapter 2, the Board shall appoint a facilitator
through a random selection procedure which shall be pre-
scribed in regulations of the Board.
‘‘SEC. 524. COMPENSATION OF FACILITATORS.
‘‘Facilitators serving in the Early Resolution Pro-
gram may, at their election, serve on a pro bono basis or
be compensated at a fixed fee to be established by the
Board. The Board shall provide for additional compensa-
tion for follow up proceedings. Each facilitator shall re-
ceive travel expenses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and 5703 of title
5, United States Code.
‘‘SEC. 525. ROLE OF ATTORNEYS.
‘‘(a) REPRESENTATION.—Parties may participate
pro se or be represented by attorneys throughout the me-
diation proceedings under the Early Resolution Program.
‘‘(b) REFERRALS.—The Board shall maintain attor-
ney referral panels (both fee-paying and pro bono) and
referral information regarding other sources of legal as-
sistance. Such panels shall consist of attorneys who are
experienced in relevant employee benefit law and willing
to represent the parties referred to them.
‘‘CHAPTER 2—MEDIATION OF DISPUTES
‘‘SEC. 531. INITIATION OF PROCEEDINGS.
‘‘(a) FILING OF ELECTION.—The proceedings under
the Early Resolution Program shall be in the form of me-
diation conducted in accordance with this chapter.
‘‘(b) AGREEMENT TO PARTICIPATE.—
‘‘(1) ELECTION
BY
CLAIMANTS.—A claimant
may elect participation in mediation proceedings
under this chapter only by entering into a written
agreement (including an agreement to comply with
the rules of the Program and consent for the Board
to contact the employee welfare benefit plan and any
insurance contractor involved regarding the agree-
ment), by releasing plan records to the Program for
the exclusive use of the facilitator assigned to the
mediation, and by paying to the Board a nonrefund-
able filing fee of $100. Such fee shall be deposited
as miscellaneous receipts in the general fund of the
Treasury and is hereby appropriated solely for pur-
poses of administering this chapter. The fee may be
waived in cases of hardship, under standards which
shall be prescribed by the Board by regulation.
‘‘(2) PARTICIPATION BY PLANS AND INSURANCE
CONTRACTORS.—Each party whose participation in
the mediation proceedings has been elected by a
claimant pursuant to paragraph (1) shall participate
in, and cooperate fully, in the proceedings. The
Board shall provide each such party with a copy of
the participation agreement described in paragraph
(1), together with a written description of mediation
under the Early Resolution Program. Each such
party shall submit such copy of the agreement, to-
gether with such party’s authorized signature sig-
nifying receipt of notice of the agreement, to the
Board, shall include in such submission to the Board
a copy of the written record of the claims procedure
completed by the plan or insurance contractor pur-
suant to section 503 with respect to the dispute and
all relevant plan documents, and shall pay the Board
a nonrefundable filing fee of $100. Such fee shall be
deposited as miscellaneous receipts in the general
fund of the Treasury and is hereby appropriated
solely for purposes of administering this chapter.
The relevant documents shall include all documents
under which the plan is or was administered or oper-
ated, including copies of any insurance contracts
under which benefits are or were provided and, in
the case of a group health plan, any fee or reim-
bursement schedules for health care providers re-
quested by the facilitator.
‘‘SEC. 532. THE MEDIATION PROCEEDINGS.
‘‘(a) IN GENERAL.—A mediation proceeding under
this chapter shall be conducted by facilitators recruited,
trained, and assigned by the Board under section 523 and
in accordance with fair and equitable procedures to be pre-
scribed by the Board which shall be subject to the require-
ments of this chapter.
‘‘(b) ANALYSIS STAGE.—In the commencement of the
mediation proceedings with respect to any dispute, the
facilitator assigned to the dispute shall—
‘‘(1) identify the necessary parties,
‘‘(2) confirm that the case is eligible for medi-
ation under this chapter,
‘‘(3) ensure that each party is informed of
available legal representation, including such services
as may be available free of charge under legal assist-
ance programs,
‘‘(4) set a conference date,
‘‘(5) at the option of the facilitator, request po-
sition papers from the parties of not more than 10
pages in length, if the facilitator determines that
such papers are needed to clarify the parties’ posi-
tions and issues in dispute, and
‘‘(6) analyze the record of the claims procedure
conducted pursuant to section 503 and any position
papers submitted by the parties, with appropriate
legal assistance provided by the Secretary, to deter-
mine if further case development is needed to clarify
the legal and factual issues in dispute, and whether
there is any need for additional information and doc-
uments, and request the parties to present any such
needed information and documents.
‘‘(c) EVALUATION STAGE.—Upon completion of the
procedures described in subsection (b), the mediation pro-
ceedings shall proceed as follows:
‘‘(1) COMMENCEMENT OF CONFERENCE.—The
facilitator shall convene a conference between the
parties. Each party shall be given the opportunity to
make a statement summarizing the facts, issues, and
arguments in support of such party’s position, and
present, or inform the facilitator of, any additional
evidence such party considers to be relevant to the
evaluation.
‘‘(2) 
NEUTRALITY
OF
FACILITATOR.—The
facilitator shall maintain a neutral stance between
the parties.
‘‘(3) PREPARATION
OF
SETTLEMENT
AGREE-
MENT.—If settlement is reached, the facilitator shall
assist in the preparation of a written settlement
agreement (which shall remain confidential at the
option of the parties) and shall ensure that the par-
ties understand the terms of the settlement.
‘‘(4) EVALUATION UPON INITIAL FAILURE TO
REACH SETTLEMENT.—If no settlement is reached,
the facilitator may evaluate for the parties the likely
outcome of further administrative action or litiga-
tion, based on the facilitator’s assessment of the rel-
ative strength of each party’s position. Any such
evaluation by the facilitator shall be treated as a
proceeding communication to which section 536
applies.
‘‘(5) FURTHER PROCEEDINGS.—The facilitator
shall then encourage extension of the proceedings if
it is likely to lead to settlement or a substantial nar-
rowing of the issues.
‘‘SEC. 533. APPLICABLE TIME LIMITS.
‘‘(a) IN
GENERAL.—The mediation proceedings
under this chapter with respect to any dispute shall be
completed within 180 days after the election to partici-
pate, as follows:
‘‘(1) PRESENTATION TO PLANS AND INSURANCE
CONTRACTORS
OF
CLAIMANT’S
SIGNED
AGREE-
MENT.—The Board shall present to each party
whose participation in the mediation proceedings has
been elected by the claimant the agreement signed
by the claimant within 10 days after the date of the
claimant’s signature.
‘‘(2) SUBMISSION OF RECEIPT BY PLANS AND
INSURANCE CONTRACTORS.—Each party whose par-
ticipation in the mediation proceedings has been
elected by the claimant shall submit within 20 days
after receipt of the signed agreement its authorized
signature signifying receipt of the notice of the
agreement.
‘‘(3) 
ASSIGNMENT
OF
FACILITATOR.—The
facilitator shall be assigned to the case within 30
days after the date as of which all necessary author-
ized signatures have been secured.
‘‘(4) COMPLETION OF ANALYSIS STAGE.—The
facilitator shall complete all procedures required in
the analysis stage described in section 532(a) within
45 days after the facilitator’s assignment to the
case.
‘‘(5) 
COMMENCEMENT
OF
EVALUATION
STAGE.—The conference conducted under the eval-
uation stage described in section 532(b) shall com-
mence not later than the earlier of 60 days after the
date of the assignment of the facilitator or 15 days
after completion of the analysis stage described in
section 532(a).
‘‘(b) EXTENSION OF PROCEEDINGS.—The proceed-
ings may be extended for not more than 30 days, but only
at the written request of, or upon the written consent of,
the claimant.
‘‘SEC. 534. LEGAL EFFECT OF PARTICIPATION IN PROCEED-
INGS.
‘‘(a) PROCESS NONBINDING.—Findings and conclu-
sions made in the mediation proceedings under this chap-
ter shall be treated as advisory in nature and nonbinding.
Except as provided in subsection (b), the rights of the par-
ties under subpart A shall not be affected by participation
in the mediation proceedings under this chapter.
‘‘(b) RESOLUTION THROUGH SETTLEMENT AGREE-
MENT.—If a case is settled through participation in the
mediation proceedings under this chapter, the facilitator
shall assist the parties in drawing up an agreement which
shall constitute, upon signature of the parties, a binding
contract between the parties, which shall be enforceable
under section 537, and which shall be enforceable under
this title as if the terms of such agreement were terms
of the plan.
‘‘(c) PRESERVATION OF RIGHTS OF NON-PARTIES.—
The settlement agreement shall not have the effect of
waiving or otherwise affecting any rights to review under
section 502 or any other right under this title or the plan
with respect to any person who is not a party to the settle-
ment agreement.
‘‘SEC. 535. PROCEDURAL RULES.
‘‘(a) INAPPLICABILITY OF FORMAL RULES OF EVI-
DENCE.—Formal rules of evidence shall not apply to medi-
ation proceedings under this chapter. All statements made
and evidence presented in the proceedings shall be admis-
sible in such proceedings. The facilitator shall be the sole
judge of the proper weight to be afforded to each submis-
sion.
‘‘(b) INAPPLICABILITY OF OATH REQUIREMENTS.—
The parties to the mediation proceedings under this chap-
ter shall not be required to make statements or present
evidence under oath.
‘‘SEC. 536. CONFIDENTIALITY.
‘‘(a) FACILITATORS.—Except as provided in sub-
sections (d) and (e), a facilitator in a mediation proceeding
under this chapter shall not voluntarily disclose or through
discovery or compulsory process be required to disclose
any information concerning any proceeding communica-
tion or any communication provided in confidence to the
facilitator, unless—
‘‘(1) all parties to the proceeding and the
facilitator consent in writing, and, if the proceeding
communication was provided by a nonparty partici-
pant, that the participant also consents in writing,
‘‘(2) the proceeding communication has already
been made public,
‘‘(3) the proceeding communication is required
by statute to be made public, but a facilitator may
make such communication public only if no other
person is reasonably available to disclose the commu-
nication, or
‘‘(4) a court determines that such testimony or
disclosure is necessary to—
‘‘(A) prevent a manifest injustice,
‘‘(B) help establish a violation of law, or
‘‘(C) prevent harm to the public health or
safety,
of sufficient magnitude in the particular case to out-
weigh the integrity of the proceedings in general by
reducing the confidence of parties in future cases
that their communications will remain confidential.
‘‘(b) PARTIES.—A party to a mediation proceeding
under this chapter shall not voluntarily disclose or through
discovery or compulsory process be required to disclose
any information concerning any proceeding communica-
tion, unless—
‘‘(1) the communication was prepared by the
party seeking disclosure,
‘‘(2) all parties to the proceeding consent in
writing,
‘‘(3) the proceeding communication has already
been made public,
‘‘(4) the proceeding communication is required
by statute to be made public,
‘‘(5) a court determines that such testimony or
disclosure is necessary to—
‘‘(A) prevent a manifest injustice,
‘‘(B) help establish a violation of law, or
‘‘(C) prevent harm to the public health or
safety,
of sufficient magnitude in the particular case to out-
weigh the integrity of the proceedings in general by
reducing the confidence of parties in future cases
that their communications will remain confidential,
‘‘(6) the proceeding communication is relevant
to determining the existence or meaning of an agree-
ment or award that resulted from the proceeding or
to the enforcement of such an agreement or award,
or
‘‘(7) the proceeding communication was pro-
vided to or was available to all parties to the pro-
ceeding.
‘‘(c) INADMISSIBILITY
OF
DISCLOSED
INFORMA-
TION.—Any proceeding communication that is disclosed in
violation of subsection (a) or (b) shall not be admissible
in any proceeding relating to the issues in controversy with
respect to which the communication was made.
‘‘(d) ALTERNATIVE PROCEDURES.—The parties may
agree to alternative confidential procedures for disclosures
by a facilitator. Upon such agreement the parties shall in-
form the facilitator before the commencement of the pro-
ceeding of any modifications to the provisions of sub-
section (a) that will govern the confidentiality of the pro-
ceeding. If the parties do not so inform the facilitator, sub-
section (a) shall apply.
‘‘(e) NOTICE OF DEMANDS FOR DISCLOSURE.—If a
demand for disclosure, by way of discovery request or
other legal process, is made upon a facilitator regarding
a proceeding communication, the facilitator shall make
reasonable efforts to notify the parties and any affected
nonparty participants of the demand. In any case in which
such disclosure would otherwise be in violation of this sec-
tion, the facilitator may perform such disclosure in accord-
ance with such demand only if each party and affected
nonparty participant who receives such notice consents to
such disclosure within 15 calendar days after the date of
the issuance of such notification.
‘‘(f) EXCEPTIONS.—
‘‘(1) 
INFORMATION
OTHERWISE
DISCLOS-
ABLE.—Nothing in this section shall prevent the dis-
covery or admissibility of any evidence that is other-
wise discoverable, merely because the evidence was
presented in the course of a mediation proceeding
under this chapter.
‘‘(2) DOCUMENTATION OF AGREEMENTS OR OR-
DERS.—Subsections (a) and (b) shall have no effect
on the information and data that are necessary to
document an agreement reached or order issued pur-
suant to a mediation proceeding under this chapter.
‘‘(3) RESEARCH OR EDUCATIONAL PURPOSES.—
Subsections (a) and (b) shall not prevent the gather-
ing of information for research or educational pur-
poses so long as the parties and the specific issues
in controversy are not identifiable.
‘‘(4) DISPUTES BETWEEN FACILITATOR AND A
PARTY.—Subsections (a) and (b) shall not prevent
use of a proceeding communication to resolve a dis-
pute between the facilitator in a mediation proceed-
ing under this chapter and a party to or participant
in such proceeding, so long as such proceeding com-
munication is disclosed only to the extent necessary
to resolve such dispute.
‘‘(g) CIVIL REMEDIES.—
‘‘(1) CIVIL PENALTY.—The Secretary may as-
sess a civil penalty against any person who discloses
information in violation of subsection (a) or (b) in
the amount of three times the amount of the claim
involved.
‘‘(2) DISQUALIFICATION FROM SERVICE.—Any
facilitator who discloses information in violation of
subsection (a) shall be disqualified from further
service as a facilitator under this subpart.
‘‘(h) DEFINITIONS.—For purposes of this section—
‘‘(1) PROCEEDING COMMUNICATION.—The term
‘proceeding communication’ means any oral or writ-
ten communication prepared for the purposes of a
mediation proceeding under this chapter, including
any memoranda, notes, or work product of the
facilitator, parties, or nonparty participants, except
that such term does not include a written agreement
to enter into the proceeding or a final written agree-
ment reached as a result of the proceeding.
‘‘(2) IN
CONFIDENCE.—The term ‘in con-
fidence’ means, with respect to information, that the
information is provided—
‘‘(A) with the expressed intent of the
source that it not be disclosed, or
‘‘(B) under circumstances that would cre-
ate the reasonable expectation on behalf of
the source that the information will not be
disclosed.
‘‘SEC. 537. ENFORCEMENT OF SETTLEMENT AGREEMENTS.
‘‘(a) CONFIRMATION; JURISDICTION; PROCEDURE.—
At any time within one year after the date of a settlement
agreement entered into under this chapter any party to
the agreement may apply to the United States district
court in and for the district within which such agreement
was made for an order confirming the agreement. Upon
such application, the court shall grant such an order un-
less the agreement is vacated, modified, or corrected as
prescribed in subsection (b) or (c). Notice of the applica-
tion shall be served upon the adverse party. Upon such
notice, the court shall have jurisdiction of such adverse
party as though such adverse party had appeared gen-
erally in the proceeding. If the adverse party is a resident
of the district within which the award was made, such
service shall be made upon the adverse party or such par-
ty’s attorney as prescribed by law for service of notice of
motion in any action in the same court. If the adverse
party is a nonresident, the notice of the application shall
be served by the marshal of any district within which the
adverse party may be found in like manner as other proc-
ess of the court.
‘‘(b) VACATION; GROUNDS; REHEARING.—The court
may make an order vacating the settlement agreement
upon the application of any party to the agreement if—
‘‘(1) the agreement was procured under duress
or by corruption, fraud, or undue means, or
‘‘(2) there was evident partiality or corruption
in the facilitator who assisted in the making of the
agreement.
‘‘(c) MODIFICATION
OR CORRECTION; GROUNDS;
ORDER.—The court may make an order modifying or cor-
recting the settlement agreement upon the application of
any party to the agreement if—
‘‘(1) there was a material miscalculation of fig-
ures or a material mistake in the description of any
person, thing, or property referred to in the agree-
ment,
‘‘(2) the agreement relates to a matter not sub-
mitted in the conference proceedings, unless it is a
matter not affecting the merits of the agreement
upon the matter submitted, or
‘‘(3) the agreement is imperfect in matter of
form not affecting the merits of the controversy.
The order may modify and correct the agreement, so as
to effect the intent thereof and promote justice between
the parties.
‘‘(d) NOTICE OF MOTIONS TO VACATE OR MODIFY;
SERVICE; STAY OF PROCEEDINGS.—Notice of a motion to
vacate, modify, or correct a settlement agreement made
under this subpart must be served upon the adverse party
or the party’s attorney within 90 days after the settlement
agreement is made. If the adverse party is a resident of
the district within which the agreement is made, such
service shall be made upon the adverse party or the party’s
attorney as prescribed by law for service of notice of mo-
tion in an action in the same court. If the adverse party
is a nonresident, the notice of the application shall be
served by the marshal of any district within which the ad-
verse party may be found in like manner as other process
of the court. For the purposes of the motion any judge
who may make an order to stay the proceedings in an ac-
tion brought in the same court may make an order, to
be served with the notice of motion, staying the proceed-
ings of the adverse party to enforce the agreement.
‘‘(e) PAPERS FILED WITH ORDER
ON MOTIONS;
JUDGMENT; DOCKETING; FORCE
AND
EFFECT; EN-
FORCEMENT.—
‘‘(1) FILING OF PAPERS.—The party moving
for an order confirming, modifying, or correcting a
settlement agreement made under this chapter shall,
at the time such order is filed with the clerk for the
entry of judgment thereon, also file the following
papers with the clerk:
‘‘(A) the agreement, and
‘‘(B) each notice, affidavit, or other paper
used upon an application to confirm, modify, or
correct the agreement, and a copy of each order
of the court upon such an application.
‘‘(2) DOCKETING
OF
JUDGMENT.—The judg-
ment shall be docketed as if it were rendered in an
action.
‘‘(3) FORCE
AND
EFFECT; ENFORCEMENT.—
The judgment so entered shall have the same force
and effect, in all respects, as a judgment in an ac-
tion, and shall be subject to all the provisions of law
relating to such a judgment. Such judgment, includ-
ing the terms of the agreement (as confirmed, modi-
fied, or corrected), may be enforced as if it had been
rendered in an action in the court in which it is
entered.
‘‘(f) APPEALS.—An appeal may be taken from an
order confirming or denying confirmation of a settlement
agreement made under this chapter or modifying, correct-
ing, or vacating such an agreement.’’.
(b) SCOPE OF COURT ENFORCEMENT IN CASES OF
MEDIATION.—Section 502(a) of such Act (29 U.S.C.
1132(a)) is amended by adding at the end the following
new flush sentences:
‘‘The applicability of this subsection to any qualified wel-
fare plan claim shall not be affected by participation in
mediation proceedings under chapter 2 of subpart B re-
garding such claim except to the extent otherwise required
under the terms of any settlement agreement entered into
in such proceedings.’’.
(c) MANDATORY COMPLIANCE WITH REQUESTS FOR
INFORMATION
BY FACILITATORS
IN MEDIATION PRO-
CEEDINGS.—Section 502 of such Act (29 U.S.C. 1132)
is amended—
(1) in subsection (a)(5), by striking ‘‘or’’ at the
end;
(2) in subsection (a)(6), by striking the period
at the end and inserting ‘‘; or’’;
(3) by inserting after subsection (a)(6) the fol-
lowing new paragraph:
‘‘(7) by the Claims Resolution Board to collect
any civil penalty under subsection (c)(4).’’; and
(4) by inserting at the end of subsection (c) the
following new paragraph:
‘‘(4) The Claims Resolution Board may assess a civil
penalty against any party to any mediation proceeding
under chapter 2 of subpart B of this part of up to $1,000
a day from the date of such party’s failure or refusal to
supply relevant plan documents as required under section
531(b)(2) or such additional information or documents as
are requested by the facilitator pursuant to section
532(b)(6).’’.
(d) ENFORCEMENT OF CIVIL REMEDIES FOR VIOLA-
TIONS OF CONFIDENTIALITY.—Section 502(a) of such Act
(29 U.S.C. 1132(a)) is amended—
(1) in paragraph (2), by inserting ‘‘or section
536(g)(2)’’ after ‘‘section 409’’; and
(2) in paragraph (6), by inserting ‘‘or section
536(g)(1)’’ after ‘‘(l)’’.
(e) CLERICAL AMENDMENT.—The table of contents
in section 1 of such Act is amended—
(1) by inserting before the item relating to sec-
tion 501 the following:
‘‘Subpart A—General Provisions’’;
and
(2) by inserting before the items relating to
part 6 the following new items:
‘‘Subpart B—Early Resolution Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘Sec. 521. Establishment of the Early Resolution Program; Claims Resolution
Board.
‘‘Sec. 522. Eligibility of cases for submission to Early Resolution Program.
‘‘Sec. 523. Facilitators.
‘‘Sec. 524. Compensation of facilitators.
‘‘Sec. 525. Role of attorneys.
‘‘CHAPTER 2—MEDIATION OF DISPUTES
‘‘Sec. 531. Initiation of proceedings.
‘‘Sec. 532. The mediation proceedings.
‘‘Sec. 533. Applicable time limits.
‘‘Sec. 534. Legal effect of participation in proceedings.
‘‘Sec. 535. Procedural rules.
‘‘Sec. 536. Confidentiality.
‘‘Sec. 537. Enforcement of settlement agreements.’’.
(f) EFFECTIVE DATE AND RELATED RULES.—
(1) IN
GENERAL.—The Claims Resolution
Board shall issue the initial regulations necessary to
carry out the amendments made by this section not
later than 1 year after the date on which a quorum
of the initial members of the Board are appointed.
The amendments made by this section shall apply
with respect to disputes submitted to the Board
after such 1-year period.
(2) APPOINTMENT OF INITIAL MEMBERS.—The
Secretary of Labor shall appoint the initial members
of the Claims Resolution Board not later than 180
days after the date of the enactment of this Act.
(3) TREATMENT
OF
CERTAIN
COLLECTIVELY
BARGAINED PLANS.—The amendments made by this
section shall not apply with respect to an employee
welfare benefit plan if—
(A) such plan is in effect on the date of
the enactment of this Act,
(B) such plan is, as of such date, main-
tained pursuant to one or more collective bar-
gaining agreements between one or more em-
ployee organizations and one or more employ-
ers, and
(C) the terms of such agreements include,
as of such date, and continue to include there-
after, a provision explicitly providing procedures
for resolution of claims disputes by arbitration,
mediation, or both between participants and
beneficiaries and the plan and (if any) insur-
ance contractors for the plan.
SEC. 4. IMPROVEMENTS IN ENFORCEMENT.
(a) RECOVERY OF DAMAGES FOR FAILURE TO PRO-
VIDE BENEFITS AS REQUIRED UNDER AN EMPLOYEE
WELFARE BENEFIT PLAN.—
(1) IN GENERAL.—Section 502(c) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1132(c)) (as amended by the preceding provi-
sions of this Act) is further amended by adding at
the end the following new paragraph:
‘‘(5)(A) In any case in which a qualified welfare plan
claim is denied in violation of the terms of the plan or
of this title or in which any provision of this title is vio-
lated with respect to the administration of the plan in con-
nection with such a claim or the processing of such a claim
thereunder, the named fiduciary under the plan and any
insurance contractor for the plan administering such claim
shall be jointly and severally liable to any participant, ben-
eficiary, employer, employee organization, or plan ag-
grieved by such failure or violation for actual damages (in-
cluding compensatory and consequential damages proxi-
mately caused by such failure or violation), except that,
subject to subparagraph (B), damages for such failure or
violation shall not include punitive damages.
‘‘(B) In any case in which a failure or violation de-
scribed in subparagraph (A) constitutes fraud, each party
liable under subparagraph (A) may, in the court’s discre-
tion, be liable to the plaintiff for punitive or exemplary
damages in addition to damages described in subpara-
graph (A).
‘‘(C) A named fiduciary under a multiemployer plan
shall not be liable under this paragraph.
‘‘(D) The remedies provided under this paragraph
shall be in addition to remedies otherwise provided under
this section.’’.
(2) STANDING OF EMPLOYERS, EMPLOYEE OR-
GANIZATIONS, AND PLANS IN ACTIONS FOR FAILURE
TO MEET REQUIREMENTS WITH RESPECT TO BENE-
FIT CLAIMS.—
(A) IN GENERAL.—Section 502(a) of such
Act (29 U.S.C. 1132(a)) (as amended by sec-
tion 3(c)) is further amended—
(i) in subsection (a)(6), by striking
‘‘or’’ at the end;
(ii) in subsection (a)(7), by striking
the period and inserting ‘‘; or’’; and
(iii) by inserting after subsection
(a)(7) the following new paragraph:
‘‘(8) by an employer, an employee organization,
or a plan for the relief provided under subsection
(c)(5).’’.
(B) CONFORMING
AMENDMENT.—Section
502(e)(1) of such Act (29 U.S.C. 1132(e)(1)) is
amended by striking ‘‘subsection (a)(1)(B) of
this section’’ each place it appears and inserting
‘‘paragraph (1)(A) (with respect to relief under
subsection (c)(5)), paragraph (1)(B), or para-
graph (7) of subsection (a)’’.
(b) ACTIONS FOR VIOLATIONS OF STATUTORY RE-
QUIREMENTS.—Section 502(a)(1)(B) of such Act (29
U.S.C. 1132(a)(1)(B)) is amended by inserting ‘‘or the
provisions of this title’’ after ‘‘plan’’ each place it appears.
(c) ACTIONS BY PLANS AGAINST FIDUCIARIES.—Sec-
tion 502(a)(2) of such Act (29 U.S.C. 1132(a)(2)) is
amended by striking ‘‘beneficiary or fiduciary’’ and insert-
ing ‘‘beneficiary, fiduciary, or plan’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to failures occurring
or commencing on or after the date of the enactment of
this Act.
SEC. 5. ATTORNEY’S FEES AND COSTS OF ACTION.
(a) IN GENERAL.—Section 502(g) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1132(g)) is amended—
(1) in paragraph (1), by inserting ‘‘or (3)’’
after ‘‘paragraph (2)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) In any action or settlement proceeding under
this title with respect to an employee welfare benefit plan
by a participant or beneficiary under such plan in which
the participant or beneficiary prevails or substantially pre-
vails, the participant or beneficiary shall be entitled to rea-
sonable attorney’s fees and other costs of the action, in-
cluding reasonable expert witness fees, to be paid by the
opposing party. Fees to which the participant or bene-
ficiary is entitled under this paragraph shall be at gen-
erally prevailing hourly rates.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to failures occur-
ring or commencing on or after the date of the enactment
of this Act.
SEC. 6. CLARIFICATION OF ABILITY OF STATES TO REGU-
LATE THE BUSINESS OF INSURANCE.
(a) IN GENERAL.—Section 514(b) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1144(b)) is amended by adding at the end the following
new paragraph:
‘‘(9) Subsection (a) shall not apply to any provision
of State law to the extent that such provision—
‘‘(A) provides for the establishment or mainte-
nance of any program making available to partici-
pants and beneficiaries ongoing assistance in the
resolution of qualified welfare plan claims under
group health plans, or
‘‘(B) provides for the licensing or regulation of
insurance contractors or provides sanctions against
insurance contractors for unfair claims settlement
practices.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to violations occur-
ring on or after the date of the enactment of this Act.
SEC. 7. STUDY OF PREEMPTION PROVISIONS.
(a) STUDY.—The Secretary of Labor (or the Sec-
retary’s delegate) shall conduct a study on the effects of
the provisions of section 514 of the Employee Retirement
Income Security Act of 1974 which provide for the pre-
emption of State laws relating to employee benefit plans.
(b) REPORT.—Not later than one year after the date
of the enactment of this Act, the Secretary of Labor shall
submit to the Committee on Education and Labor of the
House of Representatives and the Committee on Labor
and Human Resources of the Senate the results of the
study conducted under subsection (a), together with any
recommendations for legislative reforms which the Sec-
retary finds necessary.
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