Page:United States Statutes at Large Volume 124.djvu/807

 124 STAT. 781 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘SEC. 521. ADMINISTRATIVE SUMMARY CEASE AND DESIST ORDERS AND SUMMARY SEIZURE ORDERS AGAINST MULTIPLE EMPLOYER WELFARE ARRANGEMENTS IN FINANCIALLY HAZARDOUS CONDITION. ‘‘(a) IN GENERAL.—The Secretary may issue a cease and desist (ex parte) order under this title if it appears to the Secretary that the alleged conduct of a multiple employer welfare arrangement described in section 3(40), other than a plan or arrangement described in subsection (g), is fraudulent, or creates an immediate danger to the public safety or welfare, or is causing or can be reasonably expected to cause significant, imminent, and irreparable public injury. ‘‘(b) HEARING.—A person that is adversely affected by the issuance of a cease and desist order under subsection (a) may request a hearing by the Secretary regarding such order. The Sec- retary may require that a proceeding under this section, including all related information and evidence, be conducted in a confidential manner. ‘‘(c) BURDEN OF PROOF.—The burden of proof in any hearing conducted under subsection (b) shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside. ‘‘(d) DETERMINATION.—Based upon the evidence presented at a hearing under subsection (b), the cease and desist order involved may be affirmed, modified, or set aside by the Secretary in whole or in part. ‘‘(e) SEIZURE.—The Secretary may issue a summary seizure order under this title if it appears that a multiple employer welfare arrangement is in a financially hazardous condition. ‘‘(f) REGULATIONS.—The Secretary may promulgate such regula- tions or other guidance as may be necessary or appropriate to carry out this section. ‘‘(g) EXCEPTION.—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) CONFORMING AMENDMENT.—The table of sections for part 5 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, as amended by section 6604, is further amended by adding at the end the following: ‘‘Sec. 521. Administrative summary cease and desist orders and summary seizure orders against health plans in financially hazardous condition.’’. SEC. 6606. MEWA PLAN REGISTRATION WITH DEPARTMENT OF LABOR. Section 101(g) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(g)) is amended— (1) by striking ‘‘Secretary may’’ and inserting ‘‘Secretary shall’’; and (2) by inserting ‘‘to register with the Secretary prior to operating in a State and may, by regulation, require such multiple employer welfare arrangements’’ after ‘‘not group health plans’’. SEC. 6607. PERMITTING EVIDENTIARY PRIVILEGE AND CONFIDENTIAL COMMUNICATIONS. Section 504 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1134) is amended by adding at the end the following: 29 USC 1151.