there is reason to believe that the act or omis-
sion may bear on the integrity of plan manage-
ment.
‘‘(b) NOTIFICATION UPON TERMINATION
OF EN-
GAGEMENT OF ACCOUNTANT.—
‘‘(1) 
NOTIFICATION
BY
PLAN
ADMINIS-
TRATOR.—Within 5 business days after the termi-
nation of an engagement for auditing services under
section 103(a)(3)(A) with respect to an employee
benefit plan, the administrator of such plan shall—
‘‘(A) notify the Secretary in writing of
such termination, giving the reasons for such
termination, and
‘‘(B) furnish the accountant whose engage-
ment was terminated with a copy of the notifi-
cation sent to the Secretary.
‘‘(2) NOTIFICATION BY ACCOUNTANT.—If the
accountant referred to in paragraph (1)(B) has not
received a copy of the administrator’s notification to
the Secretary as required under paragraph (1)(B),
or if the accountant disagrees with the reasons given
in the notification of termination of the engagement
for auditing services, the accountant shall notify the
Secretary in writing of the termination, giving the
reasons for the termination, within 10 business days
after the termination of the engagement.
‘‘(c) DETERMINATION OF PERIODS REQUIRED FOR
NOTIFICATION.—In determining whether a notification re-
quired under this section with respect to any act or omis-
sion has been made within the required number of busi-
ness days—
‘‘(1) the day on which such act or omission be-
gins shall not be included; and
‘‘(2) Saturdays, Sundays, and legal holidays
shall not be included.
For purposes of this subsection, the term ‘legal holiday’
means any Federal legal holiday and any other day ap-
pointed as a holiday by the State in which the person re-
sponsible for making the notification principally conducts
his business.
‘‘(d) IMMUNITY FOR GOOD FAITH NOTIFICATION.—
Except as provided in this Act, no accountant or plan ad-
ministrator shall be liable to any person for any finding,
conclusion, or statement made in any notification made
pursuant to subsection (a)(2) or (b)(2), or pursuant to any
regulations issued thereunder, if such finding, conclusion,
or statement is made in good faith.’’
(b) CIVIL PENALTY.—
(1) IN GENERAL.—Section 502(c) (29 U.S.C.
1132(c)), as amended by section 2002, is amended
by redesignating paragraph (6) as paragraph (7)
and by inserting after paragraph (5) the following
new paragraph:
‘‘(6)(A) The Secretary may assess a civil penalty of
up to $100,000 against any administrator who fails to
provide the Secretary with any notification as required
under section 111.
‘‘(B) The Secretary may assess a civil penalty of up
to $100,000 against any accountant who knowingly and
willfully fails to provide the Secretary with any notification
as required under section 111.’’
(2) 
CONFORMING
AMENDMENT.—Section
502(a)(6) (29 U.S.C. 1132(a)(6)), as amended by
section 2002, is amended by striking ‘‘or (5)’’ and
inserting ‘‘(5), or (6)’’.
(c) CLERICAL AMENDMENTS.—
(1) Section 514(d) (29 U.S.C. 1144(d)) is
amended by striking ‘‘111’’ and inserting ‘‘112’’.
(2) The table of contents in section 1 is amend-
ed by striking the item relating to section 111 and
inserting the following new items:
‘‘Sec. 111. Direct reporting of certain events.
‘‘Sec. 112. Repeal and effective date.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any irregularity or
termination of engagement described in such amendments
only if the 5-day period described in such amendments in
connection with such irregularity or termination com-
mences at least 90 days after the date of the enactment
of this Act.
SEC. 534. ADDITIONAL REQUIREMENTS FOR QUALIFIED
PUBLIC ACCOUNTANTS.
(a) IN GENERAL.—Section 103(a)(3)(C) (29 U.S.C.
1023(a)(3)(C)), as redesignated by section 2032, is
amended—
(1) by inserting ‘‘(i)’’ after ‘‘(C)’’;
(2) by inserting ‘‘, with respect to any engage-
ment of an accountant under subparagraph (A)’’
after ‘‘means’’;
(3) by redesignating clauses (i), (ii), and (iii) as
subclauses (I), (II), and (III), respectively;
(4) by striking the period at the end of sub-
clause (III) (as so redesignated) and inserting a
comma;
(5) by adding after subclause (III) (as so redes-
ignated), and flush with clause (i), the following:
‘‘but only if such person meets the requirements of clauses
(ii) and (iii) with respect to such engagement.’’; and
(6) by adding at the end the following new
clauses:
‘‘(ii) A person meets the requirements of this clause
with respect to an engagement of such person as an ac-
countant under subparagraph (A) if such person—
‘‘(I) has in operation an appropriate internal
quality control system;
‘‘(II) has undergone a qualified external quality
control review of the person’s accounting and audit-
ing practices, including such practices relevant to
employee benefit plans (if any), during the 3-year
period immediately preceding such engagement; and
‘‘(III) has completed, within the 2-year period
immediately preceding such engagement, at least 80
hours of continuing education or training which con-
tributes to the accountant’s professional proficiency,
at least 20 hours of which have been completed dur-
ing the 1-year period immediately preceding the en-
gagement, and at least 16 hours of which relate to
employee benefit plan matters.
‘‘(iii) A person meets the requirements of this clause
with respect to an engagement of such person as an ac-
countant under subparagraph (A) if such person meets
such additional requirements and qualifications of regula-