Page:United States Statutes at Large Volume 124.djvu/214

 124 STAT. 188 PUBLIC LAW 111–148—MAR. 23, 2010 issuer in each State, except that nothing in this clause shall prohibit the Secretary from funding the establish- ment of multiple qualified nonprofit health insurance issuers in any State if the funding is sufficient to do so. (B) STATES WITHOUT ISSUERS IN PROGRAM.—If no health insurance issuer applies to be a qualified nonprofit health insurance issuer within a State, the Secretary may use amounts appropriated under this section for the awarding of grants to encourage the establishment of a qualified nonprofit health insurance issuer within the State or the expansion of a qualified nonprofit health insurance issuer from another State to the State. (C) AGREEMENT.— (i) IN GENERAL.—The Secretary shall require any person receiving a loan or grant under the CO–OP program to enter into an agreement with the Secretary which requires such person to meet (and to continue to meet)— (I) any requirement under this section for such person to be treated as a qualified nonprofit health insurance issuer; and (II) any requirements contained in the agree- ment for such person to receive such loan or grant. (ii) RESTRICTIONS ON USE OF FEDERAL FUNDS.— The agreement shall include a requirement that no portion of the funds made available by any loan or grant under this section may be used— (I) for carrying on propaganda, or otherwise attempting, to influence legislation; or (II) for marketing. Nothing in this clause shall be construed to allow a person to take any action prohibited by section 501(c)(29) of the Internal Revenue Code of 1986. (iii) FAILURE TO MEET REQUIREMENTS.—If the Sec- retary determines that a person has failed to meet any requirement described in clause (i) or (ii) and has failed to correct such failure within a reasonable period of time of when the person first knows (or reasonably should have known) of such failure, such person shall repay to the Secretary an amount equal to the sum of— (I) 110 percent of the aggregate amount of loans and grants received under this section; plus (II) interest on the aggregate amount of loans and grants received under this section for the period the loans or grants were outstanding. The Secretary shall notify the Secretary of the Treasury of any determination under this section of a failure that results in the termination of an issuer’s tax-exempt status under section 501(c)(29) of such Code. (D) TIME FOR AWARDING LOANS AND GRANTS.—The Sec- retary shall not later than July 1, 2013, award the loans and grants under the CO–OP program and begin the dis- tribution of amounts awarded under such loans and grants. (3) ADVISORY BOARD.— Establishment. Deadline. Notification. Determination. Payments. Lobbying.