E:\PUBLAW\PUBL290.109

120 STAT. 1317PUBLIC LAW 109–290—SEPT. 29, 2006

Public Law 109–290

109th Congress

An Act

To protect members of the Armed Forces from unscrupulous practices regarding

sales of insurance, financial, and investment products.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) S

HORT

ITLE

.—This Act may be cited as the ‘‘Military Per-

sonnel Financial Services Protection Act’’.

(b) T

ABLE OF

ONTENTS

.—The table of contents for this Act

is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Congressional findings.

Sec. 3. Definitions.

Sec. 4. Prohibition on future sales of periodic payment plans.

Sec. 5. Required disclosures regarding offers or sales of securities on military in-

stallations.

Sec. 6. Method of maintaining broker and dealer registration, disciplinary, and

other data.

Sec. 7. Filing depositories for investment advisers.

Sec. 8. State insurance and securities jurisdiction on military installations.

Sec. 9. Required development of military personnel protection standards regarding

insurance sales; administrative coordination.

Sec. 10. Required disclosures regarding life insurance products.

Sec. 11. Improving life insurance product standards.

Sec. 12. Required reporting of disciplinary actions.

Sec. 13. Reporting barred persons selling insurance or securities.

Sec. 14. Study and reports by Inspector General of the Department of Defense.

SEC. 2. CONGRESSIONAL FINDINGS.

Congress finds that—

(1) members of the Armed Forces perform great sacrifices

in protecting our Nation in the War on Terror;

(2) the brave men and women in uniform deserve to be

offered first-rate financial products in order to provide for their

families and to save and invest for retirement;

(3) members of the Armed Forces are being offered high-

cost securities and life insurance products by some financial

services companies engaging in abusive and misleading sales

practices;

(4) one securities product offered to service members,

known as the ‘‘mutual fund contractual plan’’, largely dis-

appeared from the civilian market in the 1980s, due to excessive

sales charges;

(5) with respect to a mutual fund contractual plan, a 50

percent sales commission is assessed against the first year

of contributions, despite an average commission on other securi-

ties products of less than 6 percent on each sale;

10 USC 992 note.

Military

Personnel

Financial

Services

Protection Act.

10 USC 992 note.

Sept. 29, 2006

[S. 418]

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00001 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1318 PUBLIC LAW 109–290—SEPT. 29, 2006

(6) excessive sales charges allow abusive and misleading

sales practices in connection with mutual fund contractual plan;

(7) certain life insurance products being offered to members

of the Armed Forces are improperly marketed as investment

products, providing minimal death benefits in exchange for

excessive premiums that are front-loaded in the first few years,

making them entirely inappropriate for most military per-

sonnel; and

(8) the need for regulation of the marketing and sale of

securities and life insurance products on military bases neces-

sitates Congressional action.

SEC. 3. DEFINITIONS.

For purposes of this Act, the following definitions shall apply:

(1) L

IFE INSURANCE PRODUCT

.—

(A) I

N GENERAL

.—The term ‘‘life insurance product’’

means any product, including individual and group life

insurance, funding agreements, and annuities, that pro-

vides insurance for which the probabilities of the duration

of human life or the rate of mortality are an element

or condition of insurance.

(B) I

NCLUDED INSURANCE

.—The term ‘‘life insurance

product’’ includes the granting of—

(i) endowment benefits;

(ii) additional benefits in the event of death by

accident or accidental means;

(iii) disability income benefits;

(iv) additional disability benefits that operate to

safeguard the contract from lapse or to provide a spe-

cial surrender value, or special benefit in the event

of total and permanent disability;

(v) benefits that provide payment or reimburse-

ment for long-term home health care, or long-term

care in a nursing home or other related facility;

(vi) burial insurance; and

(vii) optional modes of settlement or proceeds of

life insurance.

XCLUSIONS

.—Such term does not include workers

compensation insurance, medical indemnity health insur-

ance, or property and casualty insurance.

(2) NAIC.—The term ‘‘NAIC’’ means the National Associa-

tion of Insurance Commissioners (or any successor thereto).

SEC. 4. PROHIBITION ON FUTURE SALES OF PERIODIC PAYMENT

PLANS.

(a) A

MENDMENT

.—Section 27 of the Investment Company Act

of 1940 (15 U.S.C. 80a–27) is amended by adding at the end the

following new subsection:

‘‘(j) T

ERMINATION OF

ALES

.—

‘‘(1) T

ERMINATION

.—Effective 30 days after the date of

enactment of the Military Personnel Financial Services Protec-

tion Act, it shall be unlawful, subject to subsection (i)—

‘‘(A) for any registered investment company to issue

any periodic payment plan certificate; or

‘‘(B) for such company, or any depositor of or under-

writer for any such company, or any other person, to sell

such a certificate.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1319PUBLIC LAW 109–290—SEPT. 29, 2006

‘‘(2) N

O INVALIDATION OF EXISTING CERTIFICATES

.—Para-

graph (1) shall not be construed to alter, invalidate, or otherwise

affect any rights or obligations, including rights of redemption,

under any periodic payment plan certificate issued and sold

before 30 days after such date of enactment.’’.

(b) T

ECHNICAL

MENDMENT

.—Section 27(i)(2)(B) of the Invest-

ment Company Act of 1940 (15 U.S.C. 80a–27(i)(2)(B)) is amended

by striking ‘‘section 26(e)’’ each place that term appears and

inserting ‘‘section 26(f)’’.

EPORT ON

EFUNDS

, S

ALES

RACTICES

AND

EVENUES

ROM

ERIODIC

AYMENT

LANS

.—Not later than 6 months after

the date of enactment of this Act, the Securities and Exchange

Commission shall submit to the Committee on Financial Services

of the House of Representatives and the Committee on Banking,

Housing, and Urban Affairs of the Senate, a report describing—

(1) any measures taken by a broker or dealer registered

with the Securities and Exchange Commission pursuant to

section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C.

78o(b)) to voluntarily refund payments made by military service

members on any periodic payment plan certificate, and the

amounts of such refunds;

(2) after such consultation with the Secretary of Defense,

as the Commission considers appropriate, the sales practices

of such brokers or dealers on military installations over the

5 years preceding the date of submission of the report and

any legislative or regulatory recommendations to improve such

practices; and

(3) the revenues generated by such brokers or dealers in

the sales of periodic payment plan certificates over the 5 years

preceding the date of submission of the report, and the products

marketed by such brokers or dealers to replace the revenue

generated from the sales of periodic payment plan certificates

prohibited under subsection (a).

SEC. 5. REQUIRED DISCLOSURES REGARDING OFFERS OR SALES OF

SECURITIES ON MILITARY INSTALLATIONS.

Section 15A(b) of the Securities Exchange Act of 1934 (15

U.S.C. 78o–3(b)) is amended by inserting immediately after para-

graph (13) the following:

‘‘(14) The rules of the association include provisions gov-

erning the sales, or offers of sales, of securities on the premises

of any military installation to any member of the Armed Forces

or a dependent thereof, which rules require—

‘‘(A) the broker or dealer performing brokerage services

to clearly and conspicuously disclose to potential

investors—

‘‘(i) that the securities offered are not being offered

or provided by the broker or dealer on behalf of the

Federal Government, and that its offer is not sanc-

tioned, recommended, or encouraged by the Federal

Government; and

‘‘(ii) the identity of the registered broker-dealer

offering the securities;

‘‘(B) such broker or dealer to perform an appropriate

suitability determination, including consideration of costs

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1320 PUBLIC LAW 109–290—SEPT. 29, 2006

and knowledge about securities, prior to making a rec-

ommendation of a security to a member of the Armed

Forces or a dependent thereof; and

‘‘(C) that no person receive any referral fee or incentive

compensation in connection with a sale or offer of sale

of securities, unless such person is an associated person

of a registered broker or dealer and is qualified pursuant

to the rules of a self-regulatory organization.’’.

SEC. 6. METHOD OF MAINTAINING BROKER AND DEALER REGISTRA-

TION, DISCIPLINARY, AND OTHER DATA.

Section 15A(i) of the Securities Exchange Act of 1934 (15 U.S.C.

78o–3(i)) is amended to read as follows:

‘‘(i) O

BLIGATION

AINTAIN

EGISTRATION

, D

ISCIPLINARY

AND

THER

ATA

.—

‘‘(1) M

AINTENANCE OF SYSTEM TO RESPOND TO INQUIRIES

.—

A registered securities association shall—

‘‘(A) establish and maintain a system for collecting

and retaining registration information;

‘‘(B) establish and maintain a toll-free telephone listing,

and a readily accessible electronic or other process, to

receive and promptly respond to inquiries regarding—

‘‘(i) registration information on its members and

their associated persons; and

‘‘(ii) registration information on the members and

their associated persons of any registered national

securities exchange that uses the system described in

subparagraph (A) for the registration of its members

and their associated persons; and

‘‘(C) adopt rules governing the process for making

inquiries and the type, scope, and presentation of informa-

tion to be provided in response to such inquiries in consulta-

tion with any registered national securities exchange pro-

viding information pursuant to subparagraph (B)(ii).

‘‘(2) R

ECOVERY OF COSTS

.—A registered securities associa-

tion may charge persons making inquiries described in para-

graph (1)(B), other than individual investors, reasonable fees

for responses to such inquiries.

‘‘(3) P

ROCESS FOR DISPUTED INFORMATION

.—Each registered

securities association shall adopt rules establishing an adminis-

trative process for disputing the accuracy of information pro-

vided in response to inquiries under this subsection in consulta-

tion with any registered national securities exchange providing

information pursuant to paragraph (1)(B)(ii).

‘‘(4) L

IMITATION ON LIABILITY

.—A registered securities

association, or an exchange reporting information to such an

association, shall not have any liability to any person for any

actions taken or omitted in good faith under this subsection.

‘‘(5) D

EFINITION

.—For purposes of this subsection, the term

‘registration information’ means the information reported in

connection with the registration or licensing of brokers and

dealers and their associated persons, including disciplinary

actions, regulatory, judicial, and arbitration proceedings, and

other information required by law, or exchange or association

rule, and the source and status of such information.’’.

Regulations.

Communications

and tele-

communications.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00004 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1321PUBLIC LAW 109–290—SEPT. 29, 2006

SEC. 7. FILING DEPOSITORIES FOR INVESTMENT ADVISERS.

(a) I

NVESTMENT

DVISERS

.—Section 204 of the Investment

Advisers Act of 1940 (15 U.S.C. 80b–4) is amended—

(1) by striking ‘‘Every investment’’ and inserting the fol-

lowing:

‘‘(a) I

ENERAL

.—Every investment’’; and

(2) by adding at the end the following:

‘‘(b) F

ILING

EPOSITORIES

.—The Commission may, by rule,

require an investment adviser—

‘‘(1) to file with the Commission any fee, application, report,

or notice required to be filed by this title or the rules issued

under this title through any entity designated by the Commis-

sion for that purpose; and

‘‘(2) to pay the reasonable costs associated with such filing

and the establishment and maintenance of the systems required

by subsection (c).

‘‘(c) A

CCESS TO

ISCIPLINARY AND

THER

NFORMATION

.—

‘‘(1) M

AINTENANCE OF SYSTEM TO RESPOND TO INQUIRIES

.—

‘‘(A) I

N GENERAL

.—The Commission shall require the

entity designated by the Commission under subsection

(b)(1) to establish and maintain a toll-free telephone listing,

or a readily accessible electronic or other process, to receive

and promptly respond to inquiries regarding registration

information (including disciplinary actions, regulatory,

judicial, and arbitration proceedings, and other information

required by law or rule to be reported) involving investment

advisers and persons associated with investment advisers.

‘‘(B) A

PPLICABILITY

.—This subsection shall apply to any

investment adviser (and the persons associated with that

adviser), whether the investment adviser is registered with

the Commission under section 203 or regulated solely by

a State, as described in section 203A.

‘‘(2) R

ECOVERY OF COSTS

.—An entity designated by the

Commission under subsection (b)(1) may charge persons making

inquiries, other than individual investors, reasonable fees for

responses to inquiries described in paragraph (1).

‘‘(3) L

IMITATION ON LIABILITY

.—An entity designated by

the Commission under subsection (b)(1) shall not have any

liability to any person for any actions taken or omitted in

good faith under this subsection.’’.

(b) C

ONFORMING

MENDMENTS

.—

(1) I

NVESTMENT ADVISERS ACT OF

1940.—Section 203A of

the Investment Advisers Act of 1940 (15 U.S.C. 80b–3a) is

amended—

(A) by striking subsection (d); and

(B) by redesignating subsection (e) as subsection (d).

(2) N

ATIONAL SECURITIES MARKETS IMPROVEMENT ACT OF

1996.—Section 306 of the National Securities Markets Improve-

ment Act of 1996 (15 U.S.C. 80b–10, note) is repealed.

SEC. 8. STATE INSURANCE AND SECURITIES JURISDICTION ON MILI-

TARY INSTALLATIONS.

(a) C

LARIFICATION OF

URISDICTION

.—Any provision of law,

regulation, or order of a State with respect to regulating the busi-

ness of insurance or securities shall apply to insurance or securities

activities conducted on Federal land or facilities in the United

Applicability.

10 USC 992 note.

Communication

and tele-

communications.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1322 PUBLIC LAW 109–290—SEPT. 29, 2006

States and abroad, including military installations, except to the

extent that such law, regulation, or order—

(1) directly conflicts with any applicable Federal law, regu-

lation, or authorized directive; or

(2) would not apply if such activity were conducted on

State land.

(b) P

RIMARY

TATE

URISDICTION

.—To the extent that multiple

State laws would otherwise apply pursuant to subsection (a) to

an insurance or securities activity of an individual or entity on

Federal land or facilities, the State having the primary duty to

regulate such activity and the laws of which shall apply to such

activity in the case of a conflict shall be—

(1) the State within which the Federal land or facility

is located; or

(2) if the Federal land or facility is located outside of

the United States, the State in which—

(A) in the case of an individual engaged in the business

of insurance, such individual has been issued a resident

license;

(B) in the case of an entity engaged in the business

of insurance, such entity is domiciled;

or sale (or both) of securities, such individual is registered

or required to be registered to do business or the person

solicited by such individual resides; or

(D) in the case of an entity engaged in the offer or

sale (or both) of securities, such entity is registered or

is required to be registered to do business or the person

solicited by such entity resides.

SEC. 9. REQUIRED DEVELOPMENT OF MILITARY PERSONNEL PROTEC-

TION STANDARDS REGARDING INSURANCE SALES;

ADMINISTRATIVE COORDINATION.

(a) S

TATE

TANDARDS

.—Congress intends that—

(1) the States collectively work with the Secretary of

Defense to ensure implementation of appropriate standards

to protect members of the Armed Forces from dishonest and

predatory insurance sales practices while on a military installa-

tion of the United States (including installations located outside

of the United States); and

(2) each State identify its role in promoting the standards

described in paragraph (1) in a uniform manner, not later

than 12 months after the date of enactment of this Act.

(b) S

TATE

EPORT

.—It is the sense of Congress that the NAIC

should, after consultation with the Secretary of Defense and, not

later than 12 months after the date of enactment of this Act,

conduct a study to determine the extent to which the States have

met the requirement of subsection (a), and report the results of

such study to the Committee on Financial Services of the House

of Representatives and the Committee on Banking, Housing, and

Urban Affairs of the Senate.

DMINISTRATIVE

OORDINATION

; S

ENSE OF

ONGRESS

.—It

is the sense of the Congress that senior representatives of the

Secretary of Defense, the Securities and Exchange Commission,

and the NAIC should meet not less frequently than twice a year

to coordinate their activities to implement this Act and monitor

Deadline.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00006 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1323PUBLIC LAW 109–290—SEPT. 29, 2006

the enforcement of relevant regulations relating to the sale of

financial products on military installations of the United States.

SEC. 10. REQUIRED DISCLOSURES REGARDING LIFE INSURANCE

PRODUCTS.

(a) R

EQUIREMENT

.—Except as provided in subsection (e), no

person may sell, or offer for sale, any life insurance product to

any member of the Armed Forces or a dependent thereof on a

military installation of the United States, unless a disclosure in

accordance with this section is provided to such member or

dependent at the time of the sale or offer.

(b) D

ISCLOSURE

.—A disclosure in accordance with this section

is a written disclosure that—

(1) states that subsidized life insurance is available to

the member of the Armed Forces from the Federal Government

under the Servicemembers’ Group Life Insurance program (also

referred to as ‘‘SGLI’’), under subchapter III of chapter 19

of title 38, United States Code;

(2) states the amount of insurance coverage available under

the SGLI program, together with the costs to the member

of the Armed Forces for such coverage;

(3) states that the life insurance product that is the subject

of the disclosure is not offered or provided by the Federal

Government, and that the Federal Government has in no way

sanctioned, recommended, or encouraged the sale of the life

insurance product being offered;

(4) fully discloses any terms and circumstances under which

amounts accumulated in a savings fund or savings feature

under the life insurance product that is the subject of the

disclosure may be diverted to pay, or reduced to offset, pre-

miums due for continuation of coverage under such product;

(5) states that no person has received any referral fee

or incentive compensation in connection with the offer or sale

of the life insurance product, unless such person is a licensed

agent of the person engaged in the business of insurance that

is issuing such product;

(6) is made in plain and readily understandable language

and in a type font at least as large as the font used for

the majority of the solicitation material used with respect to

or relating to the life insurance product; and

(7) with respect to a sale or solicitation on Federal land

or facilities located outside of the United States, lists the

address and phone number at which consumer complaints are

received by the State insurance commissioner for the State

having the primary jurisdiction and duty to regulate the sale

of such life insurance products pursuant to section 8.

OIDABILITY

.—The sale of a life insurance product in viola-

tion of this section shall be voidable from its inception, at the

sole option of the member of the Armed Forces, or dependent

thereof, as applicable, to whom the product was sold.

(d) E

NFORCEMENT

.—If it is determined by a Federal or State

agency, or in a final court proceeding, that any person has inten-

tionally violated, or willfully disregarded the provisions of, this

section, in addition to any other penalty under applicable Federal

or State law, such person shall be prohibited from further engaging

in the business of insurance with respect to employees of the Federal

Government on Federal land, except—

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00007 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1324 PUBLIC LAW 109–290—SEPT. 29, 2006

(1) with respect to existing policies; and

(2) to the extent required by the Federal Government

pursuant to previous commitments.

(e) E

XCEPTIONS

.—This section shall not apply to any life insur-

ance product specifically contracted by or through the Federal

Government.

SEC. 11. IMPROVING LIFE INSURANCE PRODUCT STANDARDS.

(a) I

ENERAL

.—It is the sense of Congress that the NAIC

should, after consultation with the Secretary of Defense, and not

later than 6 months after the date of enactment of this Act, conduct

a study and submit a report to the Committee on Banking, Housing,

and Urban Affairs of the Senate and the Committee on Financial

Services of the House of Representatives on—

(1) ways of improving the quality of and sale of life insur-

ance products sold on military installations of the United

States, which may include—

(A) limiting such sales authority to persons that are

certified as meeting appropriate best practices procedures;

and

(B) creating standards for products specifically

designed to meet the particular needs of members of the

Armed Forces, regardless of the sales location; and

(2) the extent to which life insurance products marketed

to members of the Armed Forces comply with otherwise

applicable provisions of State law.

(b) C

ONDITIONAL

GAO R

EPORT

.—If the NAIC does not submit

the report as described in subsection (a), the Comptroller General

of the United States shall—

(1) study any proposals that have been made to improve

the quality of and sale of life insurance products sold on military

installations of the United States; and

(2) not later than 6 months after the expiration of the

period referred to in subsection (a), submit a report on such

proposals to the Committee on Banking, Housing, and Urban

Affairs of the Senate and the Committee on Financial Services

of the House of Representatives.

SEC. 12. REQUIRED REPORTING OF DISCIPLINARY ACTIONS.

(a) R

EPORTING BY

NSURERS

.—Beginning 1 year after the date

of enactment of this Act, no insurer may enter into or renew

a contractual relationship with any other person that sells or solicits

the sale of any life insurance product on any military installation

of the United States, unless the insurer has implemented a system

to report to the State insurance commissioner of the State of

domicile of the insurer and the State of residence of that other

person—

(1) any disciplinary action taken by any Federal or State

government entity with respect to sales or solicitations of life

insurance products on a military installation that the insurer

knows, or in the exercise of due diligence should have known,

to have been taken; and

(2) any significant disciplinary action taken by the insurer

with respect to sales or solicitations of life insurance products

on a military installation of the United States.

(b) R

EPORTING BY

TATES

.—It is the sense of Congress that,

not later than 1 year after the date of enactment of this Act,

the States should collectively implement a system to—

Effective date.

10 USC 992 note.

Deadline.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00008 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1325PUBLIC LAW 109–290—SEPT. 29, 2006

(1) receive reports of disciplinary actions taken against

persons that sell or solicit the sale of any life insurance product

on any military installation of the United States by insurers

or Federal or State government entities with respect to such

sales or solicitations; and

(2) disseminate such information to all other States and

to the Secretary of Defense.

EFINITION

.—As used in this section, the term ‘‘insurer’’

means a person engaged in the business of insurance.

SEC. 13. REPORTING BARRED PERSONS SELLING INSURANCE OR SECU-

RITIES.

(a) E

STABLISHMENT

.—The Secretary of Defense shall maintain

a list of the name, address, and other appropriate information

relating to persons engaged in the business of securities or insur-

ance that have been barred or otherwise limited in any manner

that is not generally applicable to all such type of persons, from

any or all military installations of the United States, or that have

engaged in any transaction that is prohibited by this Act.

(b) N

OTICE AND

CCESS

.—The Secretary of Defense shall ensure

that—

(1) the appropriate Federal and State agencies responsible

for securities and insurance regulation are promptly notified

upon the inclusion in or removal from the list required by

subsection (a) of a person under the jurisdiction of one or

more of such agencies; and

(2) the list is kept current and easily accessible—

(A) for use by such agencies; and

(B) for purposes of enforcing or considering any such

bar or limitation by the appropriate Federal personnel,

including commanders of military installations.

EGULATIONS

.—

(1) I

N GENERAL

.—The Secretary of Defense shall issue regu-

lations in accordance with this subsection to provide for the

establishment and maintenance of the list required by this

section, including appropriate due process considerations.

(2) T

IMING

.—

(A) P

ROPOSED REGULATIONS

.—Not later than the

expiration of the 60-day period beginning on the date of

enactment of this Act, the Secretary of Defense shall pre-

pare and submit to the appropriate Committees of Congress

a copy of the regulations required by this subsection that

are proposed to be published for comment. The Secretary

may not publish such regulations for comment in the Fed-

eral Register until the expiration of the 15-day period

beginning on the date of such submission to the appropriate

Committees of Congress.

(B) F

INAL REGULATIONS

.—Not later than 90 days after

the date of enactment of this Act, the Secretary of Defense

shall submit to the appropriate Committees of Congress

a copy of the regulations under this section to be published

in final form.

FFECTIVE DATE

.—Final regulations under this

paragraph shall become effective 30 days after the date

of their submission to the appropriate Committees of Con-

gress under subparagraph (B).

Deadline.

Federal Register,

publication.

Deadline.

Records.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00009 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290

120 STAT. 1326 PUBLIC LAW 109–290—SEPT. 29, 2006

LEGISLATIVE HISTORY—S. 418 (H.R. 458):

SENATE REPORTS: No. 109–282 (Comm. on Banking, Housing, and Urban

Affairs).

CONGRESSIONAL RECORD, Vol. 152 (2006):

July 19, considered and passed Senate.

Sept. 20, 21, considered and passed House.

(d) D

EFINITION

.—For purposes of this section, the term ‘‘appro-

priate Committees of Congress’’ means—

(1) the Committee on Financial Services and the Committee

on Armed Services of the House of Representatives; and

(2) the Committee on Banking, Housing, and Urban Affairs

and the Committee on Armed Services of the Senate.

SEC. 14. STUDY AND REPORTS BY INSPECTOR GENERAL OF THE

DEPARTMENT OF DEFENSE.

(a) S

TUDY

.—The Inspector General of the Department of

Defense shall conduct a study on the impact of Department of

Defense Instruction 1344.07 (as in effect on the date of enactment

of this Act) and the reforms included in this Act on the quality

and suitability of sales of securities and insurance products mar-

keted or otherwise offered to members of the Armed Forces.

(b) R

EPORTS

.—Not later than 12 months after the date of enact-

ment of this Act, the Inspector General of the Department of

Defense shall submit an initial report on the results of the study

conducted under subsection (a) to the Committee on Banking,

Housing, and Urban Affairs of the Senate and the Committee

on Financial Services of the House of Representatives, and shall

submit followup reports to those committees on December 31, 2008

and December 31, 2010.

Approved September 29, 2006.

10 USC 992 note.

VerDate 14-DEC-2004 12:31 Oct 13, 2006 Jkt 059139 PO 00290 Frm 00010 Fmt 6580 Sfmt 6580 E:\PUBLAW\PUBL290.109 APPS06 PsN: PUBL290