I
103D CONGRESS
1ST SESSION
H. R. 1272
To amend title I of the Employee Retirement Income Security Act of 1974
to set standards under such title for multiple employer welfare arrange-
ments providing health plan benefits.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 1993
Mr. PETRI (for himself, Mr. MARTINEZ, Mr. GOODLING, Mr. GUNDERSON,
Mr. FAWELL, Mr. BALLENGER, Ms. MOLINARI, Mr. BARRETT of Ne-
braska, Mr. BOEHNER, Mr. GRANDY, Mr. SENSENBRENNER, Mr. OXLEY,
Mrs. MORELLA, Mr. LEWIS of Florida, and Mr. BARTON of Texas)
introduced the following bill; which was referred to the Committee on
Education and Labor
A BILL
To amend title I of the Employee Retirement Income Secu-
rity Act of 1974 to set standards under such title for
multiple employer welfare arrangements providing health
plan benefits.
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 ‘‘Multiple Employer
Health Benefits Protection Act of 1993’’.
SEC. 2. LIMITED EXEMPTION UNDER PREEMPTION RULES
FOR MULTIPLE EMPLOYER PLANS PROVID-
ING HEALTH BENEFITS SUBJECT TO CERTAIN
FEDERAL STANDARDS.
(a) IN GENERAL.—Subtitle B of title I of the Em-
ployee Retirement Income Security Act of 1974 is amend-
ed by adding at the end the following new part:
‘‘Part 7—Multiple Employer Health Plans
‘‘SEC. 701. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) INSURER.—The term ‘insurer’ means an
insurance company, insurance service, or insurance
organization, licensed to engage in the business of
insurance by a State.
‘‘(2) PARTICIPATING
EMPLOYER.—The term
‘participating employer’ means, in connection with a
multiple employer welfare arrangement, any em-
ployer if any of its employees, or any of the depend-
ents of its employees, are or were covered under
such arrangement during the employment of the
employees.
‘‘(3) EXCESS/STOP LOSS COVERAGE.—The term
‘excess/stop loss coverage’ means, in connection with
a multiple employer welfare arrangement, a contract
under which an insurer provides for payment with
respect to claims under the arrangement, relating to
participants or beneficiaries individually or other-
wise, in excess of an amount or amounts specified in
such contract.
‘‘(4) QUALIFIED
ACTUARY.—The term ‘quali-
fied actuary’ means an individual who is a member
of the American Academy of Actuaries or meets
such reasonable standards and qualifications as the
Secretary may provide by regulation.
‘‘(5) SPONSOR.—The term ‘sponsor’ means, in
connection with a multiple employer welfare arrange-
ment, the association or other entity which estab-
lishes or maintains the arrangement.
‘‘(6) STATE LOCATION OF COVERED INDIVID-
UALS.—
‘‘(A) IN GENERAL.—A multiple employer
welfare arrangement shall be treated as cover-
ing individuals located in a State only if the
minimum required number of individuals who
are covered under the arrangement are located
in such State, except that if the minimum re-
quired number of individuals are not located in
any State, such arrangement shall be treated as
covering individuals in any State in which any
covered individual is located.
‘‘(B) MINIMUM REQUIRED NUMBER.—For
purposes of subparagraph (A), the minimum re-
quired number is the greater of—
‘‘(i) 5 percent of the total number of
individuals described in subparagraph (A),
or
‘‘(ii) 50.
‘‘(C) 
LOCATION
OF
INDIVIDUALS
IN
STATE.—For purposes of subparagraph (A), an
individual shall be treated as located in a State
if such individual is employed in such State or
the address of such individual last known by
the arrangement is located in such State.
‘‘(7) STATE INSURANCE COMMISSIONER.—The
term ‘State insurance commissioner’ means the in-
surance commissioner (or similar official) of a State.
‘‘(8) DOMICILE
STATE.—The term ‘domicile
State’ means, in connection with a multiple employer
welfare arrangement, the State in which, according
to the application for an exemption under this part,
most individuals to be covered under the arrange-
ment are located, except that, in any case in which
information contained in the latest annual report of
the arrangement filed under this part indicates that
most individuals covered under the arrangement are
located in a different State, such term means such
different State.
‘‘(9) FULLY INSURED ARRANGEMENT.—A mul-
tiple employer welfare arrangement shall be treated
as fully insured only if one or more insurers, health
maintenance organizations, similar organizations
regulated under State law for solvency, or any com-
bination thereof are liable under one or more insur-
ance policies or contracts for all benefits under the
arrangement (irrespective of any recourse they may
have against other parties).
‘‘(10) MULTIPLE EMPLOYER HEALTH PLAN.—
The term ‘multiple employer health plan’ means a
multiple employer welfare arrangement treated as an
employee welfare benefit plan by reason of an
exemption under this part.
‘‘SEC. 702. EXEMPTED MULTIPLE EMPLOYER PLANS PRO-
VIDING BENEFITS IN THE FORM OF MEDICAL
CARE RELIEVED OF CERTAIN RESTRICTIONS
ON PREEMPTION OF STATE LAW AND TREAT-
ED AS EMPLOYEE WELFARE BENEFIT PLANS.
‘‘(a) IN GENERAL.—Subject to subsection (b), a mul-
tiple employer welfare arrangement which is not fully in-
sured and with respect to which there is in effect an ex-
emption granted by the Secretary under this part (or with
respect to which there is pending a complete application
for such an exemption and the Secretary determines that
provisional protection under this part is appropriate)—
‘‘(1) shall be treated for purposes of subtitle A
and the preceding parts of this subtitle as an em-
ployee welfare benefit plan, irrespective of whether
such arrangement is an employee welfare benefit
plan, and
‘‘(2) 
shall 
be 
exempt 
from 
section
514(b)(6)(A)(ii).
‘‘(b) BENEFITS
MUST
CONSIST
OF
MEDICAL
CARE.—Subsection (a) shall apply to a multiple employer
welfare arrangement only if the benefits provided there-
under consist solely of medical care described in section
607(1) (disregarding such incidental benefits as the
Secretary shall specify by regulation).
‘‘(c) RESTRICTION ON COMMENCEMENT OF NEW AR-
RANGEMENTS.—A multiple employer welfare arrangement
providing benefits which consist of medical care described
in section 607(1) which has not commenced operations as
of January 1, 1994, may commence operations only if an
exemption granted to the arrangement under this part is
in effect (or there is pending with respect to the arrange-
ment a complete application for such an exemption and
the Secretary determines that provisional protection under
this part is appropriate).
‘‘SEC. 703. EXEMPTION PROCEDURE.
‘‘(a) IN GENERAL.—The Secretary shall grant an ex-
emption described in section 702(a) to a multiple employer
welfare arrangement if—
‘‘(1) an application for such exemption with re-
spect to such arrangement, identified individually or
by class, has been duly filed in complete form with
the Secretary in accordance with this part,
‘‘(2) such application demonstrates compliance
with the requirements of section 704 with respect to
such arrangement, and
‘‘(3) the Secretary finds that such exemption
is—
‘‘(A) administratively feasible,
‘‘(B) not adverse to the interests of the in-
dividuals covered under the arrangement, and
‘‘(C) protective of the rights and benefits
of the individuals covered under the arrange-
ment.
‘‘(b) NOTICE AND HEARING.—Before granting an ex-
emption under this section, the Secretary shall publish no-
tice in the Federal Register of the pendency of the exemp-
tion, shall require that adequate notice be given to inter-
ested persons, including the State insurance commissioner
of each State in which covered individuals under the ar-
rangement are, or are expected to be, located, and shall
afford interested persons opportunity to present views.
The Secretary may not grant an exemption under this sec-
tion unless the Secretary affords an opportunity for a
hearing and makes a determination on the record with re-
spect to the findings required under subsection (a)(3). The
Secretary shall, to the maximum extent practicable, make
a final determination with respect to any application filed
under this section in the case of a newly established ar-
rangement within 90 days after the date which the Sec-
retary determines is the date on which such application
is filed in complete form.
‘‘SEC. 704. ELIGIBILITY REQUIREMENTS.
‘‘(a) APPLICATION FOR EXEMPTION.—
‘‘(1) IN
GENERAL.—An exemption may be
granted by the Secretary under this part only on the
basis of an application filed with the Secretary in
such form and manner as shall be prescribed in reg-
ulations of the Secretary. Any such application shall
be signed by the operating committee and the spon-
sor of the arrangement.
‘‘(2) FILING FEE.—The arrangement shall pay
to the Secretary at the time of filing an application
under this section a filing fee in the amount of
$5,000, which shall be available, to the extent pro-
vided in appropriation Acts, to the Secretary for the
sole purpose of administering the exemption proce-
dures under this part.
‘‘(3) INFORMATION INCLUDED.—An application
filed under this section shall include, in a manner
and form prescribed in regulations of the Secretary,
at least the following information:
‘‘(A) IDENTIFYING
INFORMATION.—The
names and addresses of—
‘‘(i) the sponsor, and
‘‘(ii) the members of the operating
committee of the arrangement.
‘‘(B) STATES IN WHICH ARRANGEMENT IN-
TENDS TO DO BUSINESS.—The States in which
individuals covered under the arrangement are
to be located and the number of such individ-
uals expected to be located in each such State.
‘‘(C) BONDING REQUIREMENTS.—Evidence
provided by the operating committee that the
bonding requirements of section 412 will be met
as of the date of the application.
‘‘(D) PLAN DOCUMENTS.—A copy of the
documents governing the arrangement (includ-
ing any bylaws and trust agreements), the sum-
mary plan description, and other material de-
scribing the benefits and coverage that will be
provided to individuals covered under the ar-
rangement.
‘‘(E) AGREEMENTS WITH SERVICE PROVID-
ERS.—A copy of any agreements between the
arrangement and contract administrators and
other service providers.
‘‘(F) FUNDING REPORT.—A report setting
forth information determined as of a date with-
in the 120-day period ending with the date of
the application, including the following:
‘‘(i) RESERVES.—A statement, cer-
tified by the operating committee of the ar-
rangement, and a statement of actuarial
opinion, signed by a qualified actuary, that
all applicable requirements of section 707
are or will be met in accordance with regu-
lations which the Secretary shall prescribe.
‘‘(ii) ADEQUACY
OF
CONTRIBUTION
RATES.—A statement of actuarial opinion,
signed by a qualified actuary, which sets
forth a description of the extent to which
contribution rates are adequate to provide
for the payment of all obligations and the
maintenance of required reserves under the
arrangement for the 12-month period be-
ginning with such date within such 120-
day period, taking into account the ex-
pected coverage and experience of the ar-
rangement. If the contribution rates are
not fully adequate, the statement of actu-
arial opinion shall indicate the extent to
which the rates are inadequate and the
changes needed to ensure adequacy.
‘‘(iii) 
CURRENT
AND
PROJECTED
VALUE
OF
ASSETS
AND
LIABILITIES.—A
statement of actuarial opinion signed by a
qualified actuary, which sets forth the cur-
rent value of the assets and liabilities accu-
mulated under the arrangement and a pro-
jection of the assets, liabilities, income,
and expenses of the arrangement for the
12-month period referred to in clause (ii).
The income statement shall identify sepa-
rately the arrangement’s administrative ex-
penses and claims.
‘‘(iv) COSTS
OF
COVERAGE
TO
BE
CHARGED
AND
OTHER
EXPENSES.—A
statement of the costs of coverage to be
charged, 
including 
an 
itemization 
of
amounts for administration, reserves, and
other expenses associated with the oper-
ation of the arrangement.
‘‘(v) 
OTHER
INFORMATION.—Any
other information which may be prescribed
in regulations of the Secretary as nec-
essary to carry out the purposes of this
part.
‘‘(b) OTHER REQUIREMENTS.—A complete applica-
tion for an exemption under this part shall include infor-
mation which the Secretary determines to be complete and
accurate and sufficient to demonstrate that the following
requirements are met with respect to the arrangement:
‘‘(1) SPONSOR.—The sponsor is, and has been
(together with its immediate predecessor, if any) for
a continuous period of not less than 3 years before
the date of the application, organized and main-
tained in good faith, with a constitution and bylaws
specifically stating its purpose, as a trade associa-
tion, an industry association, a professional associa-
tion, or a chamber of commerce or other business
group, for substantial purposes other than that of
obtaining or providing medical care described in sec-
tion 607(1), and the applicant demonstrates to the
satisfaction of the Secretary that the sponsor is es-
tablished as a permanent entity which receives the
active support of its members.
‘‘(2) OPERATING
COMMITTEE.—The arrange-
ment is operated, pursuant to a trust agreement, by
an operating committee which has complete fiscal
control over the arrangement and which is respon-
sible for all operations of the arrangement, and the
operating committee has in effect rules of operation
and financial controls, based on a 3-year plan of op-
eration, adequate to carry out the terms of the ar-
rangement and to meet all requirements of this title
applicable to the arrangement. The members of the
committee are individuals selected from individuals
who are the owners, officers, directors, or employees
of the participating employers or who are partners
in the participating employers and actively partici-
pate in the business. No such member is an owner,
officer, director, or employee of, or partner in, a con-
tract administrator or other service provider to the
arrangement, except that officers or employees of a
sponsor which is a service provider (other than a
contract administrator) to the arrangement may be
members of the committee if they constitute not
more than 25 percent of the membership of the com-
mittee and they do not provide services to the ar-
rangement other than on behalf of the sponsor. The
committee has sole authority to approve applications
for participation in the arrangement and to contract
with a service provider to administer the day-to-day
affairs of the arrangement.
‘‘(3) 
CONTENTS
OF
GOVERNING
INSTRU-
MENTS.—The instruments governing the arrange-
ment include a written instrument, meeting the re-
quirements of an instrument required under section
402(a)(1), which—
‘‘(A) provides that the committee serves as
the named fiduciary required for plans under
section 402(a)(1) and serves in the capacity of
a plan administrator (referred to in section
3(16)(A)),
‘‘(B) provides that the sponsor is to serve
as plan sponsor (referred to in section
3(16)(B)),
‘‘(C) incorporates the requirements of sec-
tion 707, and
‘‘(D) provides that, effective upon the
granting of an exemption under this part—
‘‘(i) all participating employers must
be members or affiliated members of the
sponsor, except that, in the case of a spon-
sor which is a professional association or
other individual-based association, if at
least one of the officers, directors, or em-
ployees of an employer, or at least one of
the individuals who are partners in an em-
ployer and who actively participates in the
business, is a member or affiliated member
of the sponsor, participating employers
may also include such employer, and
‘‘(ii) all individuals thereafter com-
mencing coverage under the arrangement
must be—
‘‘(I) active or retired owners, offi-
cers, directors, or employees of, or
partners in, participating employers,
or
‘‘(II) the beneficiaries of individ-
uals described in subclause (I).
‘‘(4) CONTRIBUTION RATES.—The contribution
rates referred to in subsection (a)(3)(F)(ii) are
adequate.
‘‘(5) 
REGULATORY
REQUIREMENTS.—Such
other requirements as the Secretary may prescribe
by regulation as necessary to carry out the purposes
of this part.
‘‘(c) TREATMENT OF PARTY SEEKING EXEMPTION
WHERE PARTY IS SUBJECT TO DISQUALIFICATION.—
‘‘(1) IN GENERAL.—In the case of any applica-
tion for an exemption under this part with respect
to a multiple employer welfare arrangement, if the
Secretary determines that the sponsor of the ar-
rangement or any other person associated with the
arrangement is subject to disqualification under
paragraph (2), the Secretary may deny the exemp-
tion with respect to such arrangement.
‘‘(2) DISQUALIFICATION.—A person is subject
to disqualification under this paragraph if such per-
son—
‘‘(A) has intentionally made a material
misstatement in the application for exemption;
‘‘(B) has obtained or attempted to obtain
an exemption under this part through misrepre-
sentation or fraud;
‘‘(C) has misappropriated or converted to
such person’s own use, or improperly withheld,
money held under a plan or any multiple
employer welfare arrangement;
‘‘(D) is prohibited (or would be prohibited
if the arrangement were a plan) from serving in
any capacity in connection with the arrange-
ment under section 411,
‘‘(E) has failed to appear without reason-
able cause or excuse in response to a subpoena,
examination, warrant, or any other order law-
fully issued by the Secretary compelling such
response,
‘‘(F) has previously been subject to a de-
termination under this part resulting in the de-
nial, suspension, or revocation of an exemption
under this part on similar grounds, or
‘‘(G) has otherwise violated any provision
of this title with respect to a matter which the
Secretary determines of sufficient consequence
to merit disqualification for purposes of this
part.
‘‘(d) FRANCHISE NETWORKS.—In the case of a mul-
tiple employer welfare arrangement established and main-
tained by a franchisor for a franchise network consisting
of its franchisees, such franchisor shall be treated as the
sponsor referred to in the preceding provisions of this sec-
tion, such network shall be treated as an association re-
ferred to in such provisions, and each franchisee shall be
treated as a member (of the association and the sponsor)
referred to in such provisions, if all participating employ-
ers are such franchisees and the requirements of sub-
section (b)(1) with respect to a sponsor are met with
respect to the network.
‘‘(e) CERTAIN COLLECTIVELY BARGAINED ARRANGE-
MENTS.—In applying the preceding provisions of this sec-
tion in the case of a multiple employer welfare arrange-
ment which would be described in section 3(40)(A)(i) but
for the failure to meet any requirement of section
3(40)(C)—
‘‘(1) paragraphs (1) and (2) of subsection (b)
and subparagraphs (A), (B), and (D) of paragraph
(3) of subsection (b) shall be disregarded, and
‘‘(2) the joint board of trustees shall be consid-
ered the operating committee of the arrangement.
‘‘(f) CERTAIN ARRANGEMENTS NOT MEETING SIN-
GLE EMPLOYER REQUIREMENT.—
‘‘(1) IN GENERAL.—In any case in which the
majority of the employees covered under a multiple
employer welfare arrangement are employees of a
single employer (within the meaning of clauses (i)
and (ii) of section 3(40)(B)), if all other employees
covered under the arrangement are employed by em-
ployers who are related to such single employer, sub-
section (b)(3)(D) shall be disregarded.
‘‘(2) RELATED EMPLOYERS.—For purposes of
paragraph (1), employers are ‘related’ if there is
among all such employers a common ownership in-
terest or a substantial commonality of business oper-
ations based on common suppliers or customers.
‘‘SEC. 705. ADDITIONAL REQUIREMENTS APPLICABLE TO
EXEMPTED ARRANGEMENTS.
‘‘(a) NOTICE OF MATERIAL CHANGES.—In the case
of any multiple employer welfare arrangement with respect
to which there is in effect an exemption granted under
this part, descriptions of material changes in any informa-
tion which was required to be submitted with the applica-
tion for the exemption shall be filed in such form and man-
ner as shall be prescribed in regulations of the Secretary.
The Secretary may require by regulation prior notice of
material changes with respect to specified matters which
might serve as the basis for suspension or revocation of
the exemption.
‘‘(b) REPORTING REQUIREMENTS.—Under regula-
tions of the Secretary, the requirements of sections 102,
103, and 104 shall apply with respect to any multiple em-
ployer welfare arrangement with respect to which there is
or has been in effect an exemption granted under this part
in the same manner and to the same extent as such re-
quirements apply to employee welfare benefit plans, irre-
spective of whether such exemption continues in effect.
The annual report required under section 103 for any plan
year in the case of any such multiple employer welfare ar-
rangement shall also include information described in sec-
tion 704(a)(3)(F) with respect to the plan year and, not-
withstanding section 104(a)(1)(A), shall be filed not later
than 90 days after the close of the plan year.
‘‘(c) ENGAGEMENT OF QUALIFIED ACTUARY.—The
operating committee of each multiple employer welfare ar-
rangement with respect to which there is or has been in
effect an exemption granted under this part shall engage,
on behalf of all covered individuals, a qualified actuary
who shall be responsible for the preparation of the mate-
rials comprising information necessary to be submitted by
a qualified actuary under this part. The qualified actuary
shall utilize such assumptions and techniques as are nec-
essary to enable such actuary to form an opinion as to
whether the contents of the matters reported under this
part—
‘‘(1) are in the aggregate reasonably related to
the experience of the arrangement and to reasonable
expectations, and
‘‘(2) represent such actuary’s best estimate of
anticipated experience under the arrangement.
The opinion by the qualified actuary shall be made with
respect to, and shall be made a part of, the annual report.
‘‘(d) 
FILING
NOTICE
OF
EXEMPTION
WITH
STATES.—An exemption granted to a multiple employer
welfare arrangement under this part shall not be effective
unless written notice of such exemption is filed with the
State insurance commissioner of each State in which at
least 5 percent of the individuals covered under the ar-
rangement are located. For purposes of this paragraph,
an individual shall be considered to be located in the State
in which a known address of such individual is located or
in which such individual is employed. The Secretary may
by regulation provide in specified cases for the application
of the preceding sentence with lesser percentages in lieu
of such 5 percent amount.
‘‘SEC. 706. DISCLOSURE TO PARTICIPATING EMPLOYERS BY
ARRANGEMENTS PROVIDING MEDICAL CARE.
‘‘(a) IN GENERAL.—A multiple employer welfare ar-
rangement providing benefits consisting of medical care
described in section 607(1) shall issue to each participat-
ing employer—
‘‘(1) a document equivalent to the summary
plan description required of plans under part 1,
‘‘(2) information describing the contribution
rates applicable to participating employers, and
‘‘(3) a statement indicating—
‘‘(A) whether or not the arrangement is
fully insured,
‘‘(B) whether or not there is in effect with
respect to the arrangement an exemption grant-
ed under this part and, if there is in effect such
an exemption, that the arrangement is (or is
treated as) an employee welfare benefit plan
under this title, and
‘‘(C) that the arrangement is not a li-
censed insurer under the laws of any State.
‘‘(b) TIME
FOR DISCLOSURE.—Such information
shall be issued to employers within such reasonable period
of time before becoming participating employers as may
be prescribed in regulations of the Secretary.
‘‘SEC. 707. MAINTENANCE OF RESERVES.
‘‘(a) IN GENERAL.—Each multiple employer welfare
arrangement with respect to which there is or has been
in effect an exemption granted under this part and which
is not fully insured shall establish and maintain reserves,
consisting of—
‘‘(1) a reserve for unearned contributions,
‘‘(2) a reserve for payment of claims reported
and not yet paid and claims incurred but not yet re-
ported, and for expected administrative costs with
respect to such claims, and
‘‘(3) a reserve, in an amount recommended by
the qualified actuary, for any other obligations of
the arrangement.
‘‘(b) MINIMUM AMOUNT FOR CERTAIN RESERVES.—
The total of the reserves described in subsection (a)(2)
shall not be less than an amount equal to 25 percent of
expected incurred claims and expenses for the plan year.
‘‘(c) REQUIRED
MARGIN.—In determining the
amounts of reserves required under this section in connec-
tion with any multiple employer welfare arrangement, the
qualified actuary shall include a margin for error and
other fluctuations taking into account the specific
circumstances of such arrangement.
‘‘(d) ADDITIONAL REQUIREMENTS.—The Secretary
may provide such additional requirements relating to re-
serves and excess/stop loss coverage as the Secretary con-
siders appropriate. Such requirements may be provided,
by regulation or otherwise, with respect to any arrange-
ment or any class of arrangements.
‘‘(e) ADJUSTMENTS FOR EXCESS/STOP LOSS COV-
ERAGE.—The Secretary may provide for adjustments to
the levels of reserves otherwise required under subsections
(a) and (b) with respect to any arrangement or class of
arrangements to take into account excess/stop loss cov-
erage provided with respect to such arrangement or ar-
rangements.
‘‘SEC. 708. CORRECTIVE ACTIONS.
‘‘(a) ACTIONS
TO
AVOID
DEPLETION
OF
RE-
SERVES.—A multiple employer welfare arrangement with
respect to which there is or has been in effect an exemp-
tion granted under this part shall continue to meet the
requirements of section 707, irrespective of whether such
exemption continues in effect. The operating committee of
such arrangement shall determine semiannually whether
the requirements of section 707 are met. In any case in
which the committee determines that there is reason to
believe that there is or will be a failure to meet such re-
quirements, or the Secretary makes such a determination
and so notifies the committee, the committee shall imme-
diately notify the qualified actuary engaged by the ar-
rangement, and such actuary shall, not later than the end
of the next following month, make such recommendations
to the committee for corrective action as the actuary deter-
mines necessary to ensure compliance with section 707.
Not later than 10 days after receiving from the actuary
recommendations for corrective actions, the committee
shall notify the Secretary (in such form and manner as
the Secretary may prescribe by regulation) of such rec-
ommendations of the actuary for corrective action, to-
gether with a description of the actions (if any) that the
committee has taken or plans to take in response to such
recommendations. The committee shall thereafter report
to the Secretary, in such form and frequency as the Sec-
retary may specify to the committee, regarding corrective
action taken by the committee until the requirements of
section 707 are met.
‘‘(b) TERMINATION.—
‘‘(1) NOTICE OF TERMINATION.—In any case in
which the operating committee of a multiple em-
ployer welfare arrangement with respect to which
there is or has been in effect an exemption granted
under this part determines that there is reason to
believe that the arrangement will terminate, the
committee shall so inform the Secretary, shall de-
velop a plan for winding up the affairs of the ar-
rangement in connection with such termination in a
manner which will result in timely payment of all
benefits for which the arrangement is obligated, and
shall submit such plan in writing to the Secretary.
Actions required under this paragraph shall be taken
in such form and manner as may be prescribed in
regulations of the Secretary.
‘‘(2) ACTIONS REQUIRED IN CONNECTION WITH
TERMINATION.—In any case in which—
‘‘(A) the Secretary has been notified under
subsection (a) of a failure of a multiple em-
ployer welfare arrangement with respect to
which there is or has been in effect an exemp-
tion granted under this part to meet the re-
quirements of section 707 and has not been no-
tified by the operating committee of the ar-
rangement that corrective action has restored
compliance with such requirements, and
‘‘(B) the Secretary determines that the
continuing failure to meet the requirements of
section 707 can be reasonably expected to result
in a continuing failure to pay benefits for which
the arrangement is obligated,
the operating committee of the arrangement shall, at
the direction of the Secretary, terminate the ar-
rangement and, in the course of the termination,
take such actions as the Secretary may require as
necessary to ensure that the affairs of the arrange-
ment will be, to the maximum extent possible, wound
up in a manner which will result in timely payment
of all benefits for which the arrangement is
obligated.
‘‘SEC. 709. EXPIRATION, SUSPENSION, OR REVOCATION OF
EXEMPTION.
‘‘(a) EXPIRATION AND RENEWAL OF EXEMPTION.—
An exemption granted to a multiple employer welfare ar-
rangement under this part shall expire 3 years after the
date on which the exemption is granted. An exemption
which has expired may be renewed by means of application
for an exemption in accordance with section 704.
‘‘(b) SUSPENSION OR REVOCATION OF EXEMPTION
BY SECRETARY.—The Secretary may suspend or revoke
an exemption granted to a multiple employer welfare
arrangement under this part—
‘‘(1) for any cause that may serve as the basis
for the denial of an initial application for such an
exemption under section 704, or
‘‘(2) if the Secretary finds that—
‘‘(A) the arrangement, or the sponsor
thereof, in the transaction of business while
under the exemption, has used fraudulent, coer-
cive, or dishonest practices, or has dem-
onstrated incompetence, untrustworthiness, or
financial irresponsibility,
‘‘(B) the arrangement, or the sponsor
thereof, is using such methods or practices in
the conduct of its operations, so as to render its
further transaction of operations hazardous or
injurious to participating employers, or covered
individuals,
‘‘(C) the arrangement, or the sponsor
thereof, has refused to be examined in accord-
ance with this part or to produce its accounts,
records, and files for examination in accordance
with this part, or
‘‘(D) any of the officers of the arrange-
ment, or the sponsor thereof, has refused to
give information with respect to the affairs of
the arrangement or the sponsor or to perform
any other legal obligation relating to such an
examination when required by the Secretary in
accordance with this part.
Any such suspension or revocation under this subsection
shall be effective only upon a final decision of the Sec-
retary made after notice and opportunity for a hearing
is provided in accordance with section 710.
‘‘(c) SUSPENSION OR REVOCATION OF EXEMPTION
UNDER COURT PROCEEDINGS.—An exemption granted to
a multiple employer welfare arrangement under this part
may be suspended or revoked by a court of competent ju-
risdiction in an action by the Secretary brought under
paragraph (2), (5), or (6) of section 502(a), except that
the suspension or revocation under this subsection shall
be effective only upon notification of the Secretary of such
suspension or revocation.
‘‘(d) NOTIFICATION
OF PARTICIPATING EMPLOY-
ERS.—All participating employers in a multiple employer
welfare arrangement shall be notified of the expiration,
suspension, or revocation of an exemption granted to such
arrangement under this part, by such persons and in such
form and manner as shall be prescribed in regulations of
the Secretary, not later than 20 days after such expiration
or after receipt of notice of a final decision requiring such
suspension or revocation.
‘‘(e) PUBLICATION OF EXPIRATIONS, SUSPENSIONS,
AND REVOCATIONS.—The Secretary shall publish all expi-
rations of, and all final decisions to suspend or revoke,
exemptions granted under this part.
‘‘SEC. 710. REVIEW OF ACTIONS OF THE SECRETARY.
‘‘(a) IN GENERAL.—Any decision by the Secretary
which involves the denial of an application by a multiple
employer welfare arrangement for an exemption under this
part or the suspension or revocation of such an exemption
shall contain a statement of the specific reason or reasons
supporting the Secretary’s action, including reference to
the specific terms of the exemption and the statutory pro-
vision or provisions relevant to the determination.
‘‘(b) DENIALS OF APPLICATIONS.—In the case of the
denial of an application for an exemption under this part,
the Secretary shall send a copy of the decision to the appli-
cant by certified or registered mail at the address specified
in the records of the Secretary. Such decision shall con-
stitute the final decision of the Secretary unless the ar-
rangement, or any party that would be prejudiced by the
decision, files a written appeal of the denial within 30 days
after the mailing of such decision. The Secretary may af-
firm, modify, or reverse the initial decision. The decision
on appeal shall become final upon the mailing of a copy
by certified or registered mail to the arrangement or party
that filed the appeal.
‘‘(c) SUSPENSIONS
OR REVOCATIONS
OF EXEMP-
TION.—In the case of the suspension or revocation of an
exemption granted under this part, the Secretary shall
send a copy of the decision to the arrangement by certified
or registered mail at its address, as specified in the
records of the Secretary. Upon the request of the arrange-
ment, or any party that would be prejudiced by the sus-
pension or revocation, filed within 15 days of the mailing
of the Secretary’s decision, the Secretary shall schedule
a hearing on such decision by written notice, sent by cer-
tified or registered mail to the arrangement or party
requesting such hearing. Such notice shall set forth—
‘‘(1) a specific date and time for the hearing,
which shall be within the 10-day period commencing
20 days after the date of the mailing of the notice,
and
‘‘(2) a specific place for the hearing, which shall
be in the District of Columbia or in the State and
county thereof (or parish or other similar political
subdivision thereof) in which is located the arrange-
ment’s principal place of business.
The decision as affirmed or modified in such hearing shall
constitute the final decision of the Secretary, unless such
decision is reversed in such hearing.’’.
(b) CONFORMING AMENDMENT TO DEFINITION OF
PLAN SPONSOR.—Section 3(16)(B) of such Act (29
U.S.C. 1002(16)(B)) is amended by adding at the end the
following new sentence: ‘‘Such term also includes the spon-
sor (as defined in section 701(5)) of a multiple employer
welfare arrangement, or a multiple employer health plan
(as defined in section 701(10)), with respect to which
there is or has been in effect an exemption granted under
part 7.’’.
(c) ALTERNATIVE MEANS
OF DISTRIBUTION
OF
SUMMARY PLAN DESCRIPTIONS.—Section 110 of such
Act (29 U.S.C. 1030) is amended by adding at the end
the following new subsection:
‘‘(c) The Secretary shall prescribe, as an alternative
method for distributing summary plan descriptions in
order to meet the requirements of section 104(b)(1) in the
case of multiple employer welfare arrangements providing
benefits consisting of medical care described in section
607(1), a means of distribution of such descriptions by
participating employers.’’.
(d) 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 608 the following new items:
‘‘PART 7—MULTIPLE EMPLOYER HEALTH PLANS
‘‘Sec. 701. Definitions.
‘‘Sec. 702. Exempted multiple employer welfare arrangements treated as em-
ployee welfare benefit plans and exempt from certain restric-
tions on preemption.
‘‘Sec. 703. Exemption procedure.
‘‘Sec. 704. Eligibility requirements.
‘‘Sec. 705. Additional requirements applicable to exempted arrangements.
‘‘Sec. 706. Disclosure to participating employers by arrangements providing
medical care.
‘‘Sec. 707. Maintenance of reserves.
‘‘Sec. 708. Corrective actions.
‘‘Sec. 709. Expiration, suspension, or revocation of exemption.
‘‘Sec. 710. Review of actions of the Secretary.’’.
SEC. 3. CLARIFICATION OF SCOPE OF PREEMPTION RULES.
(a) IN GENERAL.—Section 514(b)(6)(A)(ii) of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1144(b)(6)(A)(ii)) is amended by inserting ‘‘, but
only, in the case of an arrangement which provides medi-
cal care described in section 607(1) and with respect to
which an exemption under part 7 is not in effect,’’ before
‘‘to the extent not inconsistent with the preceding sections
of this title’’.
(b) CROSS-REFERENCE.—Section 514(b)(6) of such
Act (29 U.S.C. 1144(b)(6)) is amended by adding at the
end the following new subparagraph:
‘‘(E) For additional rules relating to exemption from
subparagraph (A)(ii) of multiple employer welfare ar-
rangements providing medical care, see part 7.’’.
SEC. 4. 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—
(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 ‘‘common con-
trol’’;
(2) in clause (iii), by striking ‘‘common control
shall not be based on an interest of less than 25 per-
cent’’ and inserting ‘‘an interest of greater than 25
percent may not be required as the minimum inter-
est necessary for common control’’, and by striking
‘‘and’’ at the end,
(3) by redesignating clause (iv) as clause (v),
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 1 participating employer
if, at the time the determination under clause (i) is
made, the number of individuals who are employees
and former employees of any one participating em-
ployer and who are covered under the arrangement
is greater than 95 percent of the aggregate number
of all individuals who are employees or former em-
ployees of participating employers and who are
covered under the arrangement.’’.
SEC. 5. CLARIFICATION OF TREATMENT OF CERTAIN COL-
LECTIVELY BARGAINED ARRANGEMENTS.
(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) under or pursuant to one or more collective
bargaining agreements,’’.
(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) Clause (i) of subparagraph (A) shall
apply only if—
‘‘(i) the plan or other arrangement,
and the employee organization or any other
entity sponsoring the plan or other ar-
rangement, do not—
‘‘(I) utilize the services of any li-
censed insurance agent or broker for
soliciting or enrolling employers or in-
dividuals as participating employers or
covered individuals under the plan or
other arrangement, or
‘‘(II) pay a commission or any
other type of compensation to a per-
son that is related either to the vol-
ume or number of employers or indi-
viduals solicited or enrolled as partici-
pating employers or covered individ-
uals under the plan or other arrange-
ment, or to the dollar amount or size
of the contributions made by partici-
pating employers or covered individ-
uals to the plan or other arrangement,
‘‘(ii) not less than 85 percent of the
covered individuals under the plan or other
arrangement are individuals who—
‘‘(I) are employed within a bar-
gaining unit covered by at least one of
the collective bargaining agreements
with a participating employer (or are
covered on the basis of an individual’s
employment in such a bargaining
unit), or
‘‘(II) are present or former em-
ployees of the sponsoring employee or-
ganization, of an employer who is or
was a party to at least one of the col-
lective bargaining agreements, or of
the plan or other arrangement or a
related plan or arrangement (or are
covered on the basis of such present
or former employment),
‘‘(iii) the plan or other arrangement
does not provide benefits to individuals
(other than individuals described in clause
(ii)(II)) who work outside the standard
metropolitan statistical area in which the
sponsoring 
employee 
organization 
rep-
resents employees (or to individuals (other
than 
individuals 
described 
in 
clause
(ii)(II)) on the basis of such work by oth-
ers), except that in the case of a sponsor-
ing employee organization that represents
employees who work outside of any stand-
ard metropolitan statistical area, this
clause shall be applied by reference to the
State in which the sponsoring organization
represents employees,
‘‘(iv) 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 in regulations of the Sec-
retary—
‘‘(I) that the plan or other ar-
rangement meets the requirements of
clauses (i), (ii), and (iii), and
‘‘(II) if, for any year, 10 percent
or more of the covered individuals
under the plan are individuals not de-
scribed in subclause (I) or (II) of
clause (ii), the total number of cov-
ered individuals and the total number
of covered individuals not so de-
scribed.
‘‘(D)(i) Clause (i) of subparagraph (A)
shall not apply to a plan or other arrangement
that is established or maintained pursuant to
one or more collective bargaining agreements
which the National Labor Relations Boards de-
termines to have been negotiated or otherwise
agreed to in a manner or through conduct
which violates section 8(a)(2) of the National
Labor Relations Act (29 U.S.C. 158(a)(2)).
‘‘(ii)(I) Whenever a State insurance com-
missioner has reason to believe that this sub-
paragraph is applicable to part or all of a plan
or other arrangement, the State insurance com-
missioner may file a petition with the National
Labor Relations Board for a determination
under clause (i), along with sworn written testi-
mony supporting the petition.
‘‘(II) The Board shall give any such peti-
tion priority over all other petitions and cases,
other than other petitions under subclause (I)
or cases given priority under section 10 of the
National Labor Relations Act (29 U.S.C. 160).
‘‘(III) The Board shall determine, upon
the petition and any response, whether, on the
facts before it, the plan or other arrangement
was negotiated, created, or otherwise agreed to
in a manner or through conduct which violates
section 8(a)(2) of the National Labor Relations
Act (29 U.S.C. 158(a)(2)). Such determination
shall constitute a final determination for pur-
poses of this subparagraph and shall be binding
in all Federal or State actions with respect to
the status of the plan or other arrangement
under this subparagraph.
‘‘(IV) A person aggrieved by the deter-
mination of the Board under subclause (III)
may obtain review of the determination in any
United States court of appeals in the circuit in
which the collective bargaining at issue oc-
curred. Commencement of proceedings under
this subclause shall not, unless specifically or-
dered by the court, operate as a stay of any
State administrative or judicial action or pro-
ceeding related to the status of the plan or
other arrangement, except that in no case may
the court stay, before the completion of the re-
view, an order which prohibits the enrollment of
new individuals into coverage under a plan or
arrangement.’’.
SEC. 6. EMPLOYEE LEASING HEALTHCARE ARRANGE-
MENTS.
(a) EMPLOYEE LEASING HEALTHCARE ARRANGE-
MENT 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:
‘‘(43) EMPLOYEE LEASING HEALTHCARE ARRANGE-
MENT.—
‘‘(A) IN
GENERAL.—Subject to subparagraph
(B), the term ‘employee leasing healthcare arrange-
ment’ means any labor leasing arrangement, staff
leasing arrangement, extended employee staffing or
supply arrangement, or other arrangement under
which—
‘‘(i) one business or other entity (herein-
after in this paragraph referred to as the ‘les-
see’), under a lease or other arrangement en-
tered into with any other business or other en-
tity (hereinafter in this paragraph referred to
as the ‘lessor’), receives from the lessor the
services of individuals to be performed under
such lease or other arrangement, and
‘‘(ii) benefits consisting of medical care de-
scribed in section 607(1) are provided to such
individuals or such individuals and their de-
pendents as participants and beneficiaries.
‘‘(B) EXCEPTION.—Such term does not include
an arrangement described in subparagraph (A) if,
under such arrangement, the lessor retains, both le-
gally and in fact, a complete right of direction and
control within the scope of employment over the in-
dividuals whose services are supplied under such
lease or other arrangement, and such individuals
perform a specified function for the lessee which is
separate and divisible from the primary business or
operations of the lessee.’’.
(b) 
TREATMENT
OF
EMPLOYEE
LEASING
HEALTHCARE ARRANGEMENTS AS MULTIPLE EMPLOYER
WELFARE ARRANGEMENTS.—Section 3(40) of such Act
(29 U.S.C. 1002(40)) (as amended by the preceding provi-
sions of this Act) is further amended by adding at the
end the following new subparagraph:
‘‘(E) The term ‘multiple employer welfare arrange-
ment’ includes any employee leasing healthcare arrange-
ment, except that such term does not include any employee
leasing healthcare arrangement which is a multiple em-
ployer health plan (as defined in section 701(10)).’’.
(c) SPECIAL
RULES
FOR
EMPLOYEE
LEASING
HEALTHCARE ARRANGEMENTS.—
(1) IN GENERAL.—Part 7 of subtitle B of title
I of such Act (as added by the preceding provisions
of this Act) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 711. SPECIAL RULES FOR EMPLOYEE LEASING
HEALTHCARE ARRANGEMENTS.
‘‘(a) IN GENERAL.—The requirements of paragraphs
(1), (2), and (3) of section 704(b) shall be treated as satis-
fied in the case of a multiple employer welfare arrange-
ment that is an employee leasing healthcare arrangement
if the application for exemption includes information
which the Secretary determines to be complete and accu-
rate and sufficient to demonstrate that the following
requirements are met with respect to the arrangement:
‘‘(1) 3-YEAR TENURE.—The lessor has been in
operation for not less than 3 years.
‘‘(2) SOLICITATION
RESTRICTIONS.—Employee
leasing services provided under the arrangement are
not solicited, advertised, or marketed through li-
censed insurance agents or brokers acting in such
capacity.
‘‘(3) CREATION
OF
EMPLOYMENT
RELATION-
SHIP.—
‘‘(A) DISCLOSURE
STATEMENT.—Written
notice is provided to each applicant for employ-
ment subject to coverage under the arrange-
ment, at the time of application for employment
and before commencing coverage under the ar-
rangement, stating that the employer is the les-
sor under the arrangement.
‘‘(B) INFORMED
CONSENT.—Each such
applicant signs a written statement consenting
to the employment relationship with the lessor.
‘‘(C) INFORMED
RECRUITMENT
OF
LES-
SEE’S EMPLOYEES.—In any case in which the
lessor offers employment to an employee of a
lessee under the arrangement, the lessor in-
forms each employee in writing that his or her
acceptance of employment with the lessor is vol-
untary and that refusal of such offer will not be
deemed to be resignation from or abandonment
of current employment.
‘‘(4) REQUISITE
EMPLOYER-EMPLOYEE
RELA-
TIONSHIP UNDER ARRANGEMENT.—Under the em-
ployer-employee relationship with the employees of
the lessor—
‘‘(A) the lessor retains the ultimate author-
ity to hire, terminate, and reassign such em-
ployees,
‘‘(B) the lessor is responsible for the pay-
ment of wages, payroll-related taxes, and em-
ployee benefits, without regard to payment by
the lessee to the lessor for its services,
‘‘(C) the lessor maintains the right of di-
rection and control over its employees, except to
the extent that the lessee is responsible for su-
pervision of the work performed consistent with
the lessee’s responsibility for its product or
service, and
‘‘(D) in accordance with section 301(a) of
the Labor Management Relations Act, 1947 (29
U.S.C. 185(a)), the lessor retains in the ab-
sence of an applicable collective bargaining
agreement, the right to enter into arbitration
and to decide employee grievances, and
‘‘(E) no owner, officer, or director of, or
partner in, a lessee is an employee of the lessor,
and not more than 10 percent of the individuals
covered under the arrangement consist of own-
ers, officers, or directors of, or partners in,
such a lessee (or any combination thereof).
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) LESSOR.—The term ‘lessor’ means the
business or other entity from which services of indi-
viduals are obtained under an employee leasing
healthcare arrangement.
‘‘(2) LESSEE.—The term ‘lessee’ means a busi-
ness or other entity which receives the services of in-
dividuals provided under an employee leasing
healthcare arrangement.’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1 of such Act (as amended by the
preceding provisions of this Act) is further amended
by inserting after the item relating to section 710
the following new item:
‘‘Sec. 711. Employee leasing healthcare arrangements.’’.
SEC. 7. ENFORCEMENT PROVISIONS RELATING TO MUL-
TIPLE EMPLOYER WELFARE ARRANGEMENTS
AND EMPLOYEE LEASING HEALTHCARE AR-
RANGEMENTS.
(a) ENFORCEMENT
OF FILING REQUIREMENTS.—
Section 502 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1132) is amended—
(1) in subsection (a)(6), by striking ‘‘subsection
(c)(2) or (i) or (l)’’ and inserting ‘‘paragraph (2) or
(4) of subsection (c) or subsection (i) or (l)’’; and
(2) by adding at the end of subsection (c) the
following new paragraph:
‘‘(4) The Secretary may assess a civil penalty against
any person of up to $1,000 a day from the date of such
person’s failure or refusal to file the information required
to be filed with the Secretary under section 101(e).’’.
(b) ACTIONS BY STATES IN FEDERAL COURT.—Sec-
tion 502(a) of such Act (29 U.S.C. 1132(a)) is amended—
(1) in paragraph (5), by striking ‘‘or’’ at the
end;
(2) in paragraph (6), by striking the period and
inserting ‘‘, or’’; and
(3) by adding at the end the following:
‘‘(7) by a State official having authority under
the law of such State to enforce the laws of such
State regulating insurance, to enjoin any act or
practice which violates any provision of part 7 which
such State has the power to enforce under part 7.’’.
(c) CRIMINAL PENALTIES FOR CERTAIN WILLFUL
MISREPRESENTATIONS.—Section 501 of such Act (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, either willfully or with willful
blindness, falsely represents, to any employee, any employ-
ee’s beneficiary, any employer, the Secretary, or any State,
an arrangement established or maintained for the purpose
of offering or providing any benefit described in section
3(1) to employees or their beneficiaries as being a multiple
employer welfare arrangement granted an exemption
under part 7, as being an employee leasing healthcare ar-
rangement under such an exemption, or as having been
established or maintained under or pursuant to a collective
bargaining agreement shall, upon conviction, be impris-
oned not more than five years, be fined under title 18,
United States Code, or both.’’.
(d) CEASE ACTIVITIES ORDERS.—Section 502 of
such Act (29 U.S.C. 1132) is amended by adding at the
end the following new subsection:
‘‘(m)(1) Subject to paragraph (2), upon application
by the Secretary showing the operation, promotion, or
marketing of a multiple employer welfare arrangement
providing benefits consisting of medical care described in
section 607(1) that—
‘‘(A) is not licensed, registered, or otherwise ap-
proved under the insurance laws of the States in
which the arrangement offers or provides benefits, or
‘‘(B) is not operating in accordance with the
terms of an exemption granted by the Secretary
under part 7,
a district court of the United States shall enter an order
requiring that the arrangement cease activities.
‘‘(2) Paragraph (1) shall not apply in the case of a
multiple employer welfare arrangement if the arrangement
shows that it—
‘‘(A) is fully insured, within the meaning of
section 701(9),
‘‘(B) is licensed, registered, or otherwise ap-
proved in each State in which it offers or provides
benefits, except to the extent that such State does
not require licensing, registration, or approval of
fully insured multiple employer welfare arrange-
ments, and
‘‘(C) with respect to each such State, is operat-
ing in accordance with applicable State insurance
laws that are not superseded under section 514.
‘‘(3) The court may grant such additional equitable
or remedial relief, including any relief available under this
title, as it deems necessary to protect the interests of the
public and of persons having claims for benefits against
the arrangement.’’.
(e) RESPONSIBILITY
FOR CLAIMS PROCEDURE.—
Section 503 of such Act (29 U.S.C. 1133) is amended by
adding at the end (after and below paragraph (2)) the fol-
lowing new sentence: ‘‘The terms of each multiple em-
ployer welfare arrangement to which this section applies
and which provides benefits consisting of medical care de-
scribed in section 607(1) shall require the operating com-
mittee or the named fiduciary (as applicable) to ensure
that the requirements of this section are met in connection
with claims filed under the arrangement.’’.
SEC. 8. FILING REQUIREMENTS FOR HEALTH BENEFIT
MULTIPLE EMPLOYER WELFARE ARRANGE-
MENTS.
Section 101 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1021) is amended—
(1) by redesignating subsection (e) as sub-
section (f); and
(2) by inserting after subsection (d) the follow-
ing new subsection:
‘‘(e)(1) Each multiple employer welfare arrangement
shall file with the Secretary a registration statement de-
scribed in paragraph (2) within 60 days before commenc-
ing operations (in the case of an arrangement commencing
operations on or after January 1, 1994) and no later than
February 15 of each year (in the case of an arrangement
in operation since the beginning of such year), unless, as
of the date by which such filing otherwise must be made,
such arrangement provides no benefits consisting of medi-
cal care described in section 607(1).
‘‘(2) Each registration statement—
‘‘(A) shall be filed in such form, and contain
such information concerning the multiple employer
welfare arrangement and any persons involved in its
operation (including whether the arrangement is
fully insured), as shall be provided in regulations
which shall be prescribed by the Secretary, and
‘‘(B) if the arrangement is not fully insured,
shall contain a certification that copies of such reg-
istration statement have been transmitted by cer-
tified mail to—
‘‘(i) in the case of an arrangement with re-
spect to which an exemption under part 7 is in
effect, the State insurance commissioner of the
domicile State of such arrangement, or
‘‘(ii) in the case of an arrangement which
is not so exempt, the State insurance commis-
sioner of each State in which the arrangement
is located.
‘‘(3) The person or persons responsible for filing the
annual registration statement are—