HR 1424 PCS
(2) in subsection (c), by redesignating para-
graph (9) as paragraph (10), and by inserting after 
paragraph (8) the following new paragraph: 
‘‘(9) SECRETARIAL ENFORCEMENT AUTHORITY 
RELATING TO USE OF GENETIC INFORMATION.— 
‘‘(A) GENERAL RULE.—The Secretary may 
impose a penalty against any plan sponsor of a 
group health plan, or any health insurance 
issuer offering health insurance coverage in 
connection with the plan, for any failure by 
such sponsor or issuer to meet the requirements 
of subsection (a)(1)(F), (b)(3), (c), or (d) of 
section 702 or section 701 or 702(b)(1) with re-
spect to genetic information, in connection with 
the plan. 
‘‘(B) AMOUNT.— 
‘‘(i) IN
GENERAL.—The amount of 
the penalty imposed by subparagraph (A) 
shall be $100 for each day in the non-
compliance period with respect to each par-
ticipant or beneficiary to whom such fail-
ure relates. 
‘‘(ii) NONCOMPLIANCE PERIOD.—For 
purposes of this paragraph, the term ‘non-
VerDate Aug 31 2005 
23:03 Mar 07, 2008
Jkt 069200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H1424.PCS
H1424
mstockstill on PROD1PC66 with BILLS
HR 1424 PCS
compliance period’ means, with respect to 
any failure, the period— 
‘‘(I) beginning on the date such 
failure first occurs; and 
‘‘(II) ending on the date the fail-
ure is corrected. 
‘‘(C) MINIMUM PENALTIES WHERE FAIL-
URE DISCOVERED.—Notwithstanding clauses (i) 
and (ii) of subparagraph (D): 
‘‘(i) IN GENERAL.—In the case of 1 or 
more failures with respect to a participant 
or beneficiary— 
‘‘(I) which are not corrected be-
fore the date on which the plan re-
ceives a notice from the Secretary of 
such violation; and 
‘‘(II) which occurred or continued 
during the period involved; 
the amount of penalty imposed by subpara-
graph (A) by reason of such failures with 
respect to such participant or beneficiary 
shall not be less than $2,500. 
‘‘(ii) 
HIGHER
MINIMUM
PENALTY 
WHERE VIOLATIONS ARE MORE THAN DE 
MINIMIS.—To the extent violations for 
VerDate Aug 31 2005 
23:03 Mar 07, 2008
Jkt 069200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H1424.PCS
H1424
mstockstill on PROD1PC66 with BILLS
HR 1424 PCS
which any person is liable under this para-
graph for any year are more than de mini-
mis, clause (i) shall be applied by sub-
stituting ‘$15,000’ for ‘$2,500’ with re-
spect to such person. 
‘‘(D) LIMITATIONS.— 
‘‘(i) PENALTY NOT TO APPLY WHERE 
FAILURE
NOT
DISCOVERED
EXERCISING 
REASONABLE
DILIGENCE.—No 
penalty 
shall be imposed by subparagraph (A) on 
any failure during any period for which it 
is established to the satisfaction of the 
Secretary that the person otherwise liable 
for such penalty did not know, and exer-
cising reasonable diligence would not have 
known, that such failure existed. 
‘‘(ii) PENALTY
NOT
TO
APPLY
TO 
FAILURES
CORRECTED
WITHIN
CERTAIN 
PERIODS.—No penalty shall be imposed by 
subparagraph (A) on any failure if— 
‘‘(I) such failure was due to rea-
sonable cause and not to willful ne-
glect; and 
‘‘(II) such failure is corrected 
during the 30-day period beginning on 
VerDate Aug 31 2005 
23:03 Mar 07, 2008
Jkt 069200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H1424.PCS
H1424
mstockstill on PROD1PC66 with BILLS