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Statutory Text

SEC. 6601. PROHIBITION ON FALSE STATEMENTS AND REPRESENTATIONS. (a) PROHIBITION.—Part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) is amended by adding at the end the following: ‘‘SEC. 519 ø29 U.S.C. 1149¿. PROHIBITION ON FALSE STATEMENTS AND REPRESENTATIONS. ‘‘No person, in connection with a plan or other arrangement that is multiple employer welfare arrangement described in section 3(40), shall make a false statement or false representation of fact, knowing it to be false, in connection with the marketing or sale of such plan or arrangement, to any employee, any member of an employee organization, any beneficiary, any employer, any employee organization, the Secretary, or any State, or the representative or agent of any such person, State, or the Secretary, concerning— ‘‘(1) the financial condition or solvency of such plan or arrangement; ‘‘(2) the benefits provided by such plan or arrangement; ‘‘(3) the regulatory status of such plan or other arrangement under any Federal or State law governing collective bargaining, labor management relations, or intern union affairs; or ‘‘(4) the regulatory status of such plan or other arrangement regarding exemption from state regulatory authority under this Act. This section shall not apply to any plan or arrangement that does not fall within the meaning of the term ‘multiple employer welfare arrangement’ under section 3(40)(A).’’. (b) CRIMINAL PENALTIES.—Section 501 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1131) is amended— (1) by inserting ‘‘(a)’’ before ‘‘Any person’’; and (2) by adding at the end the following: ‘‘(b) Any person that violates section 519 shall upon conviction be imprisoned not more than 10 years or fined under title 18, United States Code, or both.’’. (c) CONFORMING AMENDMENT.—The table of sections for part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following: ‘‘Sec. 519. Prohibition on false statement and representations.’’.