,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hjcj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #bj1 #bjbf,ms4   
,wat]s introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d ! ,def5se 
,production ,act ( #aiej to limit       
eligibility = assi/ance1 increase       
monet>y p5alties1 e/abli% fraud risk    
managem5t processes1 & = o!r purposes4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,,dpa ,transp>5cy ,act ( #bjbf4  #b4  
,limitation on eligibility = assi/ance  
,title ,,iii ( ! ,def5se ,production    
,act ( #aiej 7#ej ,u4,s4,c4 #deca et    
seq47 is am5d$ by add+ at ! end !       
foll[+3  #cjf4 ,limitation on           
eligibility = assi/ance  7a7 ,9 g5]al ,a
 cov]$ entity is n eligible = assi/ance 
au?oriz$ "u ?is title4  7b7 ,def9itions 
,9 ?is section3  7#a7 ,cov]$ entity ,!  
t]m cov]$ entity means an entity 9 :i* a
 cov]$ individual directly or indirectly
 holds a significant int]e/4 ,= !       
purpose ( det]m9+ :e!r an entity is a   

cov]$ entity1 if securities ( ! entity  
are own$1 controll$1 or held by #b or m 
individuals :o are relat$ z describ$ 9  
p>agraph 7#b71 su* securities %all be   
aggregat$4  7#b7 ,cov]$ individual ,!   
t]m cov]$ individual means--  7,a7 !    
,presid5t1 ! ,vice ,presid5t1 or a memb]
 ( ! ,def5se ,production ,act           
,committee2 &  7,b7 ! sp\se1 *ild1      
son-9-law1 or daught]-9-law ( an        
individual describ$ 9 subp>agraph 7,a74 
7#c7 ,equity int]e/ ,! t]m equity int]e/
 means-- 7,a7 a %>e 9 an entity1 )\t    
reg>d to :e!r ! %>e is--  7i7           
transf]able2 or  7ii7 classifi$ z /ock  
or a simil> classification2  7,b7 a     
capital or pr(it int]e/ 9 a limit$      
liability company or p>tn]%ip2 &  7,c7 a
 w>rant or "r 7o!r ?an a "r to conv]t7  
to pur*ase1 sell1 or subscribe to a %>e 
or int]e/ describ$ 9 subp>agraph 7,a7 or
 7,b71 respectively4  7#d7 ,significant 
int]e/ ,! t]m significant int]e/ means  
own+1 controll+1 or hold+ n less ?an #bj
 p]c5t1 by vote or value1 ( ! out/&+    

am\nt ( any class ( equity int]e/ 9 an  
entity4  4  #c4 ,enhanc$ monet>y        
p5alties ,! ,def5se ,production ,act (  
#aiej 7#ej ,u4,s4,c4 #deja et seq47 is  
am5d$--  7#a7 9 section #ajc1 by /rik+  
#aj1jjj & ins]t+ #ajj1jjj2  7#b7 9      
section #gje1 by /rik+ #aj1jjj ea* place
 x appe>s & ins]t+ #ajj1jjj2 &  7#c7 9  
section #gaj7;f71 by /rik+ #aj1jjj &    
ins]t+ #ajj1jjj4  #d4 ,fraud risk       
managem5t ,section #gbb ( ! ,def5se     
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defg7 is am5d$--  7#a7 9 subsection    
7d7-- 7,a7 9 p>agraph 7#e71 by /rik+ &  
at ! end2  7,b7 9 p>agraph 7#f71 by     
/rik+ ! p]iod at ! end & ins]t+ 2 &2 &  
7,c7 by add+ at ! end ! foll[+ new      
p>agraph3  7#g7 a summ>y ( any /eps tak5
 to r$uce fraud 9 transactions "u ?is   
,act & a fraud risk assessm5t = all     
activities "u und]tak5 "u ?is ,act4  2  
7#b7 by r$esignat+ subsection 7e7 z     
subsection 7f72 &  7#c7 by ins]t+ aft]  
subsection 7d7 ! foll[+ new subsection3 
7e7 ,fraud risk managem5t ,n lat] ?an #a

 ye> aft] ! date ( ! enactm5t ( ?is     
subsection1 ! ,committee %all--  7#a7   
e/abli% & implem5t processes & proc$ures
 consi/5t ) lead+ practices includ$ 9 ! 
publication ( ! ,comptroll] ,g5]al ( !  
,unit$ ,/ates titl$ ,a ,framework =     
,manag+ ,fraud ,risks 9 ,f$]al ,programs
 7,,gao-#ae-eic,,sp2 publi%$ ,july #bh1 
#bjae7 to combat fraud 9 transactions   
und]tak5 "u ?is ,act2  7#b7 tra9        
p]sonnel ab\t ! /&>ds & practices       
e/abli%$ & implem5t$ "u p>agraph 7#a72 &
  7#c7 designate a po9t ( contact )9 !  
,committee to be responsible = manag+   
issues relat+ to fraud1 includ+         
coord9at+ ) ag5cies to review           
fraud-relat$ issues4  4  #e4 ,%ort title
 correction ,! fir/ undesignat$ section 
( ! ! ,def5se ,production ,act ( #aiej  
is am5d$1 effective on ! date ( enactm5t
 ( su* ,act1 by /rik+ cit$ z 8! ,def5se 
& ins]t+ cit$ z ! 8,def5se4