,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #biea  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #cj1 #bjba,mr4 
,w5/rup 7= himself & ,mr4 ,suozzi7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to direct ! ,secret>y ( !      
,treasury to modify ,treasury           
,regulations relat+ to insurance-d$icat$
 ex*ange-trad$ funds4  #a4              
,insurance-d$icat$ ex*ange-trad$ funds  
7a7 ,9 g5]al ,n lat] ?an ! date :i* is  
#e ye>s aft] ! date ( ! enactm5t ( ?is  
,act1 ! ,secret>y ( ! ,treasury 7or !   
,secret>y's delegate7 %all am5d !       
regulation issu$ by ! ,dep>tm5t ( !     
,treasury relat+ to ,income ,tax2       
,div]sification ,requirem5ts = ,v>iable 
,annuity1 ,end[m5t1 & ,life ,insurance  
,contracts1 #ed ,f$4 ,reg4 #hgbh 7,m>*  
#b1 #aihi71 & make any necess>y         
correspond+ am5dm5ts to o!r regulations1
 9 ord] to facilitate ! use (           
ex*ange-trad$ funds z inve/m5t options  
"u v>iable contracts )9 ! mean+ (       

section #hag7;d7 ( ! ,int]nal ,rev5ue   
,code ( #aihf1 9 accordance )           
subsections 7b7 & 7c7 ( ?is section4    
7b7 ,designate c]ta9 au?oriz$           
p>ticipants & m>ket mak]s z eligible    
inve/ors ,! ,secret>y ( ! ,treasury 7or 
! ,secret>y's delegate7 %all am5d       
,treas4 ,reg4 section #a4hag-e7;f77#c7  
to provide t satisfaction ( !           
requirem5ts 9 ,treas4 ,reg4 section     
#a4hag-e7;f77#b77;i7 ) respect to an    
ex*ange-trad$ fund %all n be prev5t$ by 
reason ( b5eficial int]e/s 9 su* a fund 
be+ held by #a or m au?oriz$ p>ticipants
 or m>ket mak]s4  7c7 ,def9e relevant   
t]ms ,9 am5d+ ,treas4 ,reg4 section     
#a4hag-e7;f77#c7 9 accordance )         
subsections 7b7 ( ?is section1 !        
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 %all provide      
def9itions consi/5t ) ! foll[+3 7#a7    
,ex*ange-trad$ fund ,! t]m ex*ange-trad$
 fund means a regulat$ inve/m5t company1
 p>tn]%ip1 or tru/--  7,a7 t is regi/]$ 
) ! ,securities & ,ex*ange ,commission z

 an op5-end inve/m5t company or a unit  
inve/m5t tru/2  7,b7 ! %>es ( :i* c be  
pur*as$ or r$eem$ directly f ! fund only
 by an au?oriz$ p>ticipant2 &  7,c7 !   
%>es ( :i* are trad$ ?r\gh\t ! day on a 
national /ock ex*ange at m>ket prices t 
may or may n be ! same z ! net asset    
value ( ! %>es4  7#b7 ,au?oriz$         
p>ticipant ,! t]m au?oriz$ p>ticipant   
means a f9ancial in/itution t is a memb]
 or p>ticipant ( a cle>+ ag5cy regi/]$  
"u section #ag;,a7b7 ( ! ,securities    
,ex*ange ,act ( #aicd t ent]s into a    
contractual relation%ip ) an            
ex*ange-trad$ fund pursuant to :i* !    
f9ancial in/itution is p]mitt$ to       
pur*ase & r$eem %>es directly f ! fund &
 to sell su* %>es to ?ird p>ties1 b only
 if ! contractual arrangem5t or         
applicable law precludes ! f9ancial     
in/itution f--  7,a7 pur*as+ ! %>es =   
its own inve/m5t purposes r ?an = !     
exclusive purpose ( creat+ & r$eem+ su* 
%>es on behalf ( ?ird p>ties2 &  7,b7   
sell+ ! %>es to ?ird p>ties :o are n    

m>ket mak]s or o!rwise describ$ 9       
,treas4 ,reg4 section #a4hag-e7;f7 7#a7 
& 7#c74  7#c7 ,m>ket mak] ,! t]m m>ket  
mak] means a f9ancial in/itution t is a 
regi/]$ brok] or deal] "u section       
#ae7;b7 ( ! ,securities ,ex*ange ,act ( 
#aicd t ma9ta9s liquidity = an          
ex*ange-trad$ fund on a national /ock   
ex*ange by be+ always ready to buy &    
sell %>es ( su* fund on ! m>ket1 b only 
if ! f9ancial in/itution is             
contractually or legally preclud$ f     
sell+ or buy+ su* %>es to or f p]sons :o
 are n au?oriz$ p>ticipants or o!rwise  
describ$ 9 ,treas4 ,reg4 section        
#a4hag-e7;f7 7#b7 & 7#c74  7d7          
,effective date ,subsections 7b7 & 7c7  
%all apply to segregat$ asset acc\nt    
inve/m5ts made on or aft] ! date t is #e
 ye>s aft] ! date ( ! enactm5t ( ?is    
,act4