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mittee on Government Operations; be it further

Resolved, That Paul J. Tierney, assistant counsel of the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, be authorized to appear at the place and before the court named in the subpena ad testificandum before mentioned, but shall not take with him any papers or documents on file in his oflice or under his control or in his possession as assistant counsel of the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations; be it further

Resolved, That Robert Dunne, assistant counsel of the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, be authorized to appear at the place and before the court named in the subpena ad testificandum before mentioned, but shall not take with him any papers or documents on file in his ofiice or under his control or in his possession as assistant counsel of the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations; beit further

Resolved, That Paul Wilner, an employee of the United States General Accounting Oflice, be authorized to appear at the place and before the court named in the subpena ad testificandum before mentioned, but shall not take with him any papers or documents on file in his office or under his control or in his possession as a result of his having been assigned to duty with the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations; be it further

Resolved, That in the event a subpena

ad testificandum is addressed to Carmine S. Bellino, former accountant-consultant to the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, Mr. Bellino be authorized to appear at the place and before the court named in such subpena before mentioned, but shall not take with him any papers or documents on file in his ofl‘ice or under his control or in his possession as a result of his having been accountant-consultant to the Permanent Subcommittee on Investigations of the Committee on Government Operations; beit further

Resolved, That when said court determines that any of the documents, papers, communications, and memorandums called for in the subpena duces tecum have become part of the official transcripts of public proceedings of the Senate by virtue of their inclusion in the official minutes and official transcripts of such proceedings for dissemination to the public upon order of the Senate or pursuant to the rules of the Senate, and, further, that such documents, papers, communications, and memorandums are material and relevant to the issues pending before said court, then the said court, through any of its officers or agents, have full permission to attend with all proper parties at any place under the orders and control of the Senate, and take copies of

such documents, papers, communications and memorandums in posession or control of the aforementioned Ruth Watt, or Jerome E. Alderman, or Paul J. Tierney, or Robert Dunne, or Carmine S. Bellino, or Paul Wilner, which the court has found to be part of the official transcripts of public proceedings of the Senate by virtue of their inclusion in the oflicial minutes and ofiicial transcripts of such proceedings for dissemination to the public upon order of the Senate or pursuant to the rules of the Senate, and which the court has found are material and relevant to the issues pending before said court, excepting any other documents, papers, communications and memorandums which the court or other proper officer thereof shall desire as such matters are within the privileges of the Senate; be it further

Resolved, That Ruth Watt, chief clerk of the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, in response to the aforementioned subpena shall testify to any matter determined by the court to be material and relevant for the purposes of identification of any document or documents, provided said document or documents have previously been made available to the general public, but said Ruth Watt shall respectfully decline to testify concerning any, and all matters that may be based on knowledge acquired by her in her official capacity either by reason of documents and papers appearing in the files of the said subcommittee or by virtue of conversations or communications with any person or persons; be it further

Resolved, That Jerome S. Adlerman, general counsel to the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, in response to the aforementioned subpena shall testify to any matter determined by the court to be material and relevant for the purposes of identification of any document or documents, provided said document or documents have previously been made available to the general public, but said Jerome S. Adlerman shall respectfully decline to testify concerning any and all other matters that may be based on knowledge acquired by him in his omcial capacity either by reason of documents and papers appearing in the files of said subcommittee or by virtue of conversations or communications with any person or persons and he shall respectfully decline to testify concerning any matter or matters within the privilege of the attorney-client relationship existing between said Jerome S. Adlerman and the said subcommittee or any of its members; be it further

Resolved, That Paul J. Tierney, assistant counsel to the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, in response to the aforementioned subpena shall testify to any matter determined by the court to be material and relevant for the purposes of identification of any document or documents, provided said document or documents have previously been made available to the general public, but said Paul

J. Tierney shall respectfully decline to’ testify concerning any and all other matters that may be based on knowledge" acquired by him in his ofiicial capacity either by reason of documents and papers appearing in the files of said subcommittee or by virtue of conversations or communications with any person or persons and he shall respectfully decline to testify concerning any matter or matters within the privilege of the attorneyclient relationship existing between said Paul J. Tierney and the said subcommittee or any of its members: be it further

Resolved, That Robert Dunne, assistant counsel to the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, in response to the aforementioned subpena, shall testify to any matter determined by the court to be material and relevant for the purposes of identification of any document or documents. provided said document or documents have previously been made available to the general public. but said Robert Dunne shall respectfully decline to test-ify concerning any and all other matters that may be based on knowledge acquired by him in his oflicial capacity either by reason of documents and papers appearing in the files of said subcommittee or by virtue of conversations or communications with any person or persons and he shall respectfully decline to testify concerning any matter or matters within the privilege of the attorney-client relationship existing between said Robert Dunne and the said subcommittee or any of its members: be it further

Resolved, That Paul Wilner, who is an employee of the United States General Accounting Office, and who was formerely assigned to duty with the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations, in response to the aforementioned subpena shall testify to any matter determined by the court to be material and relevant for the purposes of identification of any document or documents, provided said document or documents have previously been made available to the general public, but said Paul Wilner shall respectfully decline to testify concerning any and all other matters that may be based on knowledge acquired by him in his ofiicial capacity either by reason of documents and papers appearing in the files of said subcommittee or by virtue of conversations or communications with any person or persons; be it further

Resolved, That in the event a subpoena is addressed to Carmine S. Bellino. former accountant-consultant to the Senate Permanent Subcommittee on Investigations of the Committee on Government .Operations, said Carmine S Bellino in response to such subpoena shall testify to any matter determined by the court to be material and relevant for the purposes of identification of any document or documents, provided said document or documents have previously been made available to the general public, but said Carmine S. Bellino shall re

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(H R. 8723) to amend the Welfare and Pension Plans Disclosure Act with respect to the method of enforcement and to provide certain additional sanctions. and for other purposes

CON'KIZNF! REPORT ON II I. .713

Mr. McNAMARA submitted the following conference report‘

The committee of conference on the dtsagrecing votes of the two Houses on the amendment of the Senate to the bill ‘HR. 8723) to amend the Welfare and Pension Plans Disclosure Act with respcct to the method of enforcement and to provide certain additional sanctions. and for other purposes, hftt'illil met. after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows;

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment insert the following' That this Act may be cited as the "Wellore and Pension Plans Disclosure Act Amendments M1962".

See. 2. The first line of section 3 o/ the Welfare and Pension Plans Disclosure Act is amended by striking out "(a)"

See. 3. Paragraph (1) of section 3 of such Act is amended by striking out the word "to" alter the word "communicdfcd".

Sec. 4. Paragraph (9» 0! section 3 or such Act is amended to read as follows:

"(9i The term ‘Stale’ includes any State of the United States. the District of Columbia. Puerto Rico, the Virgin Islands. American Samoa. Guam. Wake Island, the Canal Zone, and Outer Contincnfnl Shell lands defined in the Outer Continental Shell Lands Act (43 U.S.C. Hill-1343'."

Sec 5. Section 3 of such Act is further amended by striking out paragraph (fl) and adding the following new paragraphs (llLUZLand (13).’

"(11) The term ‘industry or activity a!!ccfing commerce’ means any activity, business, or industry in commerce or in irhich a labor dispute icould hinder or obsfr'ucf commerce or the free now of commerce and includes any activity or industry 'aficcfing commerce‘ within the meaning 0/ the Labor-Management Relations Act. 1947, as amended, or the Railway Labor Act. as amended

"(12) The term ‘Secretary’ means the Secretary of Labor.

"(Hi The term ‘party in interest‘ means any administrator, officer, trustee, custodian, counsel or employee of any employee incl/arc benefit plan or cmployce pension benefit plan, or a person providing benefit plan services to any such plan, or an employer any 0/ whose employees are covered by such a plan or officer or employee or agent of such cmploycr, or an olficcr or agent or employee of an employee organization having members covered by such plan."

Sec 6 Paragraphs (3) and (0 of subsection (b) 0/ section 4 0/ such Act are amended to read as follows.‘

"(3) such plan is administered by an organicalion which is exempt from

taxation under the prorisions 0! sec

tion 501ml 0/ the lnfc"'.cl Rcrcnue

Code 0/ l9$l and is administered as a

corollary to membership in d fraternal

benefit society described in section

501(c)(8) of such Code or by organi

:alions described in sc nuns Suite) '1)

and SOltcHh 0! such Code.‘ Procidcd,

That the proizsions of this paragraph

shall not exempt any plan adminis

lercd by a fraternal benefit society or organization iih:ch rcp'cscnls its members for purposcs of collective bargaining,‘ or

"(4) such plan courrs no! more than twenty-fire participants "

Sec. 7. Subsection ‘a’ of sc. fzon 5 of such Act is O"lt"ldl'd by sf'ik'ng 0a.’ the last sentence thereof and insr'fz'tg in lieu lhcreo! the follow-.0.‘ "Such dcscrtpfion and such report shall contain the information 'cq'..:rcd by sccfions 6 and 7 0/ this Act in such form and dctcil as the Secretary shall by regulations prescribe and copies thereof shall be crecufcd. published, and filed in accordance with the provisions or this Act and the Secretary's regulations thereunder. No regulation shall be issurd under the preceding sentence uhich '(-'l(!'(! any adminisfralor of the oblzccfion lo include in such description or report any X7110" motion rclofice to his plan u'hich is requircd by section 6 or 7. .‘v'ofunfhsfanding the foregoing. l/ the Secretary finds. on the record after girinc interested persons an opportunity to be heard. that spccifc information on plans of ccrfgin kinds or on any class or classes of bencfils described in St't‘llO’f J (l) and t2) which are pro! :dcd by such plans cannot in the normal ":cfhod o! opcrcfian of such plans, he prccfzcdblt asccrfcincd or made aroilnble for publzcchon in the manner or for the period prcsc'nbcd in any provision of this Acf or that the inIormgfion if published 1'; such manner or for such period :could be dupficofire or uninlormafii'e. the Secretary may by regulations prescribe such other manner or such ofhcr pc'md 1i" .":c ,'."..‘i.': ‘ation of such information as he may determine to be necessary and appropriate to carry out the purposes of .‘hzs Ac! "

Sec 8 Stbscctiun (b) of sccfion 6 of such Act is amrndcd by adding of the end thereof the ,lollounng n!!!‘ scnfencc' "Any change in the information required by this subsection shall be rcporfcd to the Secretary within szrty dcts c'fer the change has been cflccfuafcd "

Sec. 9. (at Section Tia) of such Act is amended by inserting c‘fcr the word "plan" the second time it appears the following‘ "i/ if corcrs one hundred or more parficipanls lfouczcr, the Sccrctary. alfcr inwsfigcfion may require the administrator of any plan otherwise covered by the Act lo publish such report when necessary and appropriate to carry out the purposes of the Act", and by striking out "twenty both limes it appears and inserting in lieu lhc'cof "MW"

(b) Seclzon 7(b) 0! such Act is amended by striking out the first sentence 0/ the second paragraph and i".scrling in lieu fhtrcol the ,lollounng: "The amount contributed by each cmployer; the amount contributed by the employees; the amount of benefits paid or otherwise furnished; the number of employees covered; a statement of assets specifying the total amount in each of the following types of assets: cash, Government bonds, non-Government bonds and debentures, common stocks, preferred stocks, common trust funds, real estate loans and mortgages, operated real estate, other real estate, and other assets; a statement of liabilities, receipts, and disbursements of the plan; a detailed statement of the salaries and fees and commissions charged to the plan, to whom paid, in what amount, and for what purposes. The Secretary, when he has determined that an investigation is necessary in accordance with section 9 (d) of this Act, may require the filing of supporting schedules of assets and liabilities.”

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(0) Section 7(b) is further amended by adding at the end thereof the following new sentence: “In the case of reports sworn to, but not certified, the Secretary, when he determines that it may be necessary to investigate the plan in accordance with section 9(d) of this Act, shall, prior to investigation by the Department of Labor, require certification of the report by an independent certified or licensed public accountant.”

Sec. 10. Subparagraph (B) of paragraph (1) of subsection (f) of section 7 of such Act is amended by striking out “summary” and by striking out “broken down by types, such as cash investments in governmental obligations, investments in nongovernmental bonds, and investments in corporate stocks” and inserting in lieu thereof the following: “as required by section 7(b) ”.

Sec. 11. Subparagraph (C) of paragraph (1 ) of subsection (f) of section 7 of such Act is amended by striking out "total fund” and inserting “total funds”, by striking out “by reason of being an ofl‘icer, trustee, or employee of such fund”, and by striking out “listed at their aggregate cost or present value, whichever is lower” and inserting in lieu thereof “valued as provided in subparagraph (3)”.

Sec. 12. Subparagraph (D) of paragraph (1) of subsection (f) of section 7 of such Act is amended by striking out the words “by reason of being an officer, trustee, or employee of such fund”.

Sec. 13. Section 7 of such Act is amended by adding thereto the following new subsections (g) and (h):

“(g) If some or all of the benefits under the plan are provided by an insurance carier or service or other organization, such carrier or organization shall certify to the administrator of such plan, within one hundred and twenty days after the end of each calendar, policy, or other fiscal year, as the case may be, such reasonable information determined by the Secretary to be necessary to enable such administrator to comply with the requirements of this Act.

“(h) The Secretary shall prescribe by general rule simplified reports for plans which he finds that by virtue of their size or otherwise a detailed report would be

unduly burdensome, but the Secretary may revoke such provisions for simplified forms for any plan if the purposes of the Act would be served thereby.”

Sec. 14. Section 8(a) (2) of such Act is amended by striking out “a summary” and inserting in lieu thereof "an adequate summary”.

Sec. 15. (a) Section 9(a) of such Act is amended by striking out "of sections 5 or 8", and inserting before the period the words or both”.

(b) Section 9 of such Act is amended by striking out subsections (d) and (e) and inserting in lieu thereof the following new subsections:

"(d) The Secretary may, after first requiring certification in accordance with section 7 (b) , upon complaint of violation not satisfied by such certification, or on his own motion, when he continues to have reasonable cause to believe investigation may disclose violations of this Act, make such investigations as he deems necessary, and may require or permit any person to file with him a statement in writing, under oath or otherwise, as to all the facts and circumstances concerning the matter to be investigated.

“(e) For the purposes of any investigation provided for in this Act, the provisions of sections 9 and 10 (relating to the attendance of witnesses and the production of books, records, and documents) of the Federal Trade Commission Act of September 16, 1914, as amended (15 U.S.C. 49, 50), are hereby made applicable to the jurisdiction, powers, and duties of the Secretary or any officers designated by him.

"(f) Whenever it shall appear to the Secretary that any person is engaged in any violation of the provisions of this Act, he may in his discretion bring an action in the proper district court of the United States or United States court of any place subject to the jurisdiction of the United States to enjoin such acts or practices, and upon a proper showing a permanent or temporary injunction or restraining order shall be granted.

“(g) The United States district courts and the United States courts of any place subject to the jurisdiction of the United States shall have jurisdiction, for cause shown, to restrain violations of this Act.

“(h) Nothing contained in this Act shall be so construed or applied as to authorize the Secretary to regulate. or interfere in the management of, any employee welfare or pension benefit plan, except that the Secretary may inquire into the existence and amount of investments, actuarial assumptions, or accounting practices only when it has been determined that investigation is required in accordance with section 9(d) of this Act.

“(i) The Secretary shall immediately forward to the Attorney General or his representative any information coming to his attention in the course of the administration of this Act which may warrant consideration for criminal prosecution under the provisions of this Act or other Federal law.”

Sec. 16. (a) Such Act is further amended by renumbering sections 10, 11, and 12 as sections 16, 17, and 18 respectively, and by adding the following new sections to the Act:

"Reports Made Public Information

“See. 10. The contents of the descriptions and regular annual reports filed with the Secretary pursuant to this Act shall be public information, and the Secretary, where to do so would protect the interests of participants or beneficiaries of a plan, may publish any such information and data. The Secretary may use the information and data for statistical and research purposes, and compile and publish such studies, analyses, reports, and surveys based thereon as he may deem appropriate.

"Retention of Records

"Sec. 11. Every person required to file any description or report or to certify any information therefor under this Act shall maintain records on the matters of which disclosure is required which will provide in sufficient detail the necessary basic information and data from which the documents thus required may be verified, explained, or clarified, and checked for accuracy and completeness, and shall include vouchers, worksheets, receipts, and applicable resolutions, and shall keep such records available for examination for a period of not less than five years after the filing of the documents based on the information which they contain.

"Reliance on Administrative Interpretations and Forms

“Sec. 12. In any action or proceeding based on any act or omission in alleged violation of this Act, no person shall be subject to any liability or punishment for or on account of the failure of such person to (1) comply with any provision of this Act if he pleads and proves that the act or omission complained of was in good faith, in conformity with, and in reliance on any written interpretation or opinion of the Secretary, or (2) publish and file any information required by any provision of this Act if he pleads and proves that he published and filed such information in good faith, on the description and annual report forms prepared by the Secretary and in conformity with the instructions of the Secretary issued under this Act regarding the filing of such forms. Such a defense, if established, shall be a bar to the action or proceeding, notwithstanding that (A) after such act or omission, such interpretation or opinion is modified or rescinded or is determined by judicial authority to be invalid or of no legal efl‘ect, or (B) after publishing or filing the description and annual reports, such publication or filing is determined by judicial authority not to be in conformity with the requirements of this Act.

"Bonding "Sec. 13. (a) Every administrator, offlcer, and employee of any employee welfare benefit plan or of any employee pension benefit plan subject to this Act who handles funds or other property of such plan shall be bonded as herein prorided; except that, ichere such plan is one under which the only assets from which benefits are paid are the general assets of a union or of an employer, the administrator, officers and employees of Such plan shall be exempt from the bonding requirements of this section. The amount of such bond shall be fixed at the beginning of each calendar, policy. or other fiscal year, as the case may be, which constitutes the reporting year of such plan. Such amount shall be not less than 10 per ccntum of the amount of funds handled, determined as herein prorided, except that any such bond shall be in at least the amount of 81,000 and no such bond shall be required in an amount in excess of $500,000.‘ Prorided. That the Secretary, after due notice and opportunity for hearing to all interested parties, and after consideration of the record. may prescribe an amount in excess of $500,000, which in no event shall exceed 10 per centum of the funds handled. For purposes of fixmy the amount of such bond, the amount of funds handlcd shall be determined by the funds handled by the person, group. or class to be corered by such bond and by their predecessor or predeccssors, if any, dunno the preceding reporting year, or if the plan has no preceding reporting year, the amount of funds to be handled during the current reporting year by such person, group, or class, estimated as proi-ided in regulations of the Secretary. Such bond shall provide protection to the plan against loss by reason of acts of fraud or dishonesty on the part of such administrator, officer, or employee, directly or through (‘Ollfllt‘dllt‘t‘ with others. Any bond shall hate as surety thereon a corporate surety company which is an acceptable surety on Federal bonds under authority granted by the Secretary of the Treasury pursuant to the Act of July 30, 1942' (6 L‘ S C. 6-l3). Any bond shall be in a form or of a type approred by the Secretary, including "Idlt‘ldlldl bonds or schedule or blanket forms of bonds which cover a group or class.

"(bi It shall be unlawful for any administrator, otficer, or employee to whom subsection (a) applies, to receive, handle, disburse. or otherwise exercise custody or control of any of the funds or other property of any employee welfare benefit plan or employee pension benefit plan, without being bonded as required by subsection (a) and it shall be unlawful for any administrator, ofllcer. or employee of such plan. or any other person having authority to direct the performance of such functions, to permit such functions. or any of them, to be performed by any such person, with respect to whom the requirements 0/ subsection (a) have not been met.

"(c) It shall be unlawful for any person to procure any bond required by subsection (a) from any surety or other company or through any agent or broker in whose business operations such plan or any party in interest in such plan has any significant control or financial interest, direct or indirect.

"(d) Nothing in any other PFOHSIO" of law shall require any person, required to be bonded as proiidcd in subsection to) because he handles funds or other property of an employee welfare benefit plan or of an employee pension benefit plan, to be bonded insofar as the handling by such person of the funds or other property of such plan is concerned

"ie) The Secretary shall from time to time issue such regulations as may be necessary to carry out the provisions of this section. When, in the opinion of the Secretary, the administrator of a plan otters adequate evidence of the financial responsibility of the plan, or that other bonding arrangements would provide adequate protection of the beneficiaries and participants. he may exempt such plan from the requirements of this St't‘llOYl.

"Adt‘lSUry Council

"Sec H. to) There is hereby established an Adi‘isory Council on Employee Welfare and Pension Benefit Plans (hereinafter referred to as the Council i which shall consist of thirteen members to be appointed in the following manner: One from the insurance field, one from the corporate trust held, two from management, four from labor, and two from other interested groups. all appointed by the Secretary from among persons recommended by organizations in the respective groups: and three representallt‘t'S of the general public appointed by the Secretary.

"(b) It shall be the duty of the Council to advise the Secretary with respect to the carrying out of his functions under this Act, and to submit to the Secretary recommendations with respect thereto. The Council shall meet at least twice each year and at such other times as the Secretary requests. At the beginning of each regular session of the Congress, the Secretary shall transmit to the Senate and House of Representatives each recommendation which he has H'Cfll‘td trom the (‘ouncil during the preceding calendar year and a report (‘ul‘i‘ftllq his actirities under the Act for such preceding calendar year, including full information as to the number of plans and their size, the results of any studies he may hare made of such plans and the Act's operation and such other information and data as he may deem desirable in connection with employee welfare and pension benefit plans

"(c) The Secretary shall furnish to the Council an executive secretary and such secretarial, (‘ll'ftt‘tll. and other St’Tt'lt‘t'S as are deemed necessary to the conduct of its business. The Secretary may call upon other agencies of the Government for statistical data, reports. and other information which will assist the Council in the performance of its duties

"(d) Appointed members of the Couneil shall be paid compensation at the rate of 850 per diem when engaged in the work of the Council, including trarel time, and shall be allowed trarel expenses and per diem in lieu of subsistence as authorized by law (5 USC. TJb-Z) for persons in the Government service employed intermittently and receiving com

pensation on a per diem, when actually employed, basis

"(e)(l) Any member of the Council is hereby exempted tl'llh respect to such appointment, from the operation of sections 281, 283, and 19H of tztle 18 of the United States Code. and section 190 of the lterised Statutes (5 U S C. 99), except as otherwise specified in paragraph (2of this subsection.

"(2) The exemption wanted by paragraph (1) of this subsmnmn shall not extend—

"1.4) to the receipt or payment of salary in connection itith the appointee's Government serr:ce from on’, source other than the prirate employer of the appointee at the time of his appointment, or

"lBl during the period of we’: a; ' pointment, to the prosecution. or participation in the :" warn-n 5;, any person so appointed, of on; elm"; against the Government :nzi-lczng any matter With which sac’: pc'so". during such period, is or arcs dircctl', c nnected by reason of such app nnfrnent

"Administration

"Sec. 15. la) The provisions of the .4.‘ministratice Procedure Act shall be or. plicable to this Act.

"(bi No employee of the Dcpc'f'nrnt of Labor shall administer or cnrrrre this Act with respect to any employee ' reamzation of which he is a ":c'nbe' or e":ployer urbanization in which he has an interest.

"let .\’0 more than 1'60 ""zplowr's shall be employed by the Department of Lab-i " to administer or enforce this Act ‘or the first two years after the enactment of the Welfare and Pension Plans Ducloszxe Act Amendments of 1962.

"(d) Not more than fun millzon too hundred thousand dollars per year is authorized to be appropriated '-»' the administration and en’ "cement of this Act. for the first two we’: after the enactrnent of the Welfare and PF'HZ‘I'! Plans Disclosure Act Amendments of 1962."

(b) Subsection lb) of ."2/ "'f‘.'l(7-'l rcnumbered as section 16 ‘ii. this Act. is amended by inserting after "or this section" the following: "and section 13".

(c) The table of contents of the fi'st section of such Act is amended by striking out the last three lines and inserting in lieu thereof the following‘

"Sec 10 Rep-"1' "13d! public '.".'O"".:f‘.i -.

‘Sec ll Rr.'c"..".:"'. o’ 'e" "21'

“Sec l.’ Reliance on 6d"il"-‘--'.";I'~‘.( '.-.:¢-. pretations and ' ""2:

"See I] Bonding

"SN 1‘ Advisory (‘Hum-z.‘

“Sec )5 Administration

"See. 16 Eject oft-:her :e-..i

"Soc. 17 separability o' prorinons

"SM ll l'fectire date’

Sec. 17. la) (":cptc' ll of rztie l! Unitfl‘l States (‘ode as amended :5

amended by adding a new secfzci': captioned and reading as will vas "i 66‘. Theft or embezzlement " 'n e".ployee benefit plan "Any person who embezzlrs steals or unlawfully and willfully chst'acts or concerts to his own use or to the use of another, any of the moneys, funds, securities, premiums, credits, property, or other assets of any employee welfare benefit plan or employee pension benefit plan, or of any fund connected therewith, shall be fined not more than $10,000, or imprisoned not more than five years, or both.

“As used in this section, the term ‘any employee welfare benefit plan or employee pension benefit plan’ means any such plan subject to the provisions of the Welfare and Pension Plans Disclosure Act.”

(b) The analysis of chapter 31, title 18, United States Code, immediately preceding section 641 thereof, is amended by adding at the end thereof the folowing new item:

"664. Theft or embezzlement from employee benefit plan.”

(c) Chapter 47 of title 18, United States Code, as amended, is amended by adding a new section captioned and reading as follows:

Ҥ 1027. False statements and concealment of facts in relation to documents required by the Welfare and Pension Plans Disclosure Act

“Whoever, in any document required by the Welfare and Pension Plans Disclosure Act (as amended from time to time) to be published, or kept as part of the records of any employee welfare benefit plan or employee pension benefit plan, or certified to the administrator of any such plan, makes any false statement or representation of fact, knowing it to be false, or knowingly conceals, covers up, or fails to disclose any fact the disclosure of which is required by such Act or is necessary to verify, ea:plain, clarify or check for accuracy and completeness any report required by such Act to be published or any information required by such Act to be certified, shall be fined not more than $10,000, or imprisoned not more than five years, or both.”

(d) The analysis of chapter 47, title 18, United States Code, immediately preceding section 1001, is amended by adding at the end thereof the following new Item:

"1027. False statements and concealment of facts in relation to documents required by the Welfare and Pension Plans Disclosure Act."

(6) Chapter 95 of title 18, United States Code, as amended, is amended by adding a new section captioned and reading as Iollows:

“§1954. Ofier, acceptance, or solicitation to influence operations of employee benefit plan "(a) Whoever being—“(1) an administrator, officer, trustee, custodian, counsel, agent, or employee of any employee welfare benefit plan or employee pension benefit plan; or

“(2) an officer, counsel, agent, or employee of an employer or an employer any of whose employees are covered by such plan; or

"(3) an officer, counsel, agent, or employee of an employee organization any of whose members are covered by such plan; or

“(4) a person who, or an officer, counsel, agent, or employee of an organization which, provides benefit plan services to such plan

receives or agrees to receive or solicits any fee, kickback, commission, gift, loan, money, or thing of value because of or with intent to be influenced with respect to, any of his actions, decisions, or other duties relating to any question or matter concerning such plan or any person who directly or indirectly gives or offers, or promises to give or offer, any fee, kickback, commission, gift, loan, money, or thing of value prohibited by this section, shall be fined not more than $10,000 or imprisoned not more than three years, or both: Provided, That this section shall not prohibit the payment to or acceptance by any person of bona fide salary, compensation, or other payments made for goods or facilities actually furnished or for services actually performed in the regular course of his duties as such person, administrator, officer, trustee, custodian, counsel, agent, or employee of such plan, employer, employee organization, or organization providing benefit plan services to such plan.

"As used in this section, the term (a) ‘any employee welfare benefit plan’ or ‘employee pension benefit plan’ means any such plan subject to the provisions of the Welfare and Pension Plans Disclosure Act, as amended, and (b) ‘employee organization’ and ‘administrator’ as defined respectively in sections 3(3) and 5(b) (1) and (2) of the Welfare and Pension Plans Disclosure Act, as amended.

“(b) Whenever in the judgment of a United States attorney the testimony of any witness, or the production of books, papers, or other evidence by any witness, in any case or proceeding before any grand jury or court of the United States involving any violation of this section, or any conspiracy to violate such section, is necessary to the public interest, he, upon the approval of the Attorney General, shall make application to the court that the witness shall be instructed to testify or produce evidence subject to the provisions of this subsection, and upon order of the court such witness shall not be e1:cused from testifying or from producing books, papers, or other evidence on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture. But no such witness shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, nor shall testimony so compelled be used as evidence in any criminal proceeding (except prosecution described in the next sentence) against him in any court. No witness shall be exempt under this subsection from prosecution for perjury or contempt committed while giving testi

mony or producing evidence under com

pulsion as provided in this subsection."

(f) The analysis of chapter 95, title 18, United States Code, immediately preceding section 1951 thereof, is amended by adding at the end thereof the following new item:

"1954. Ofler, acceptance, or solicitation to influence operations of employee benefit plan."

Sec. 18. The Welfare and Pension Plans Disclosure Act is further amended by substituting the term "Secretary” for the term “Secretary of Labor” wherever the latter term appears in such Act.

Sec. 19. The amendments made by this Act shall take effect ninety days after the enactment of this Act, except that section 13 of the Welfare and Pension Plans Disclosure Act shall take effect one hundred eighty days after such date of enactment.

And the Senate agree to the same.

PAT McNAMARA,

WAYNE MORsE,

J. RANDOLPH,

BEN A. SMITH,

CLAIBORNE PELL,

Q. BURDICK,

WINsTON L. PROUTY.
Managers on the Part of the Senate.

ADAM C. POWELL,

JAMEs ROOsEvELT,

JOHN H. DENT,

NEAL SMITH. Managers on the Part of the House.

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