,,ii  #aai? ,,congress  #b;d ,session   
,s4 #chbi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,febru>y #aa1 #bjbf,ms4
 ,w>r5 7= h]self1 ,mr4 ,blum5?al1 ,mr4  
,m>key1 ,mr4 ,m]kley1 & ,mr4 ,wel*7     
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to prev5t          
exploitative private equity practices1 &
 = o!r purposes4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,corporate ,crimes 
,aga9/ ,heal? ,c>e ,act4  #b4 ,unju/    
enri*m5t clawback au?ority & crim9al    
p5alty  7a7 ,unju/ enri*m5t clawback    
,*apt] #ca ( title #ah1 ,unit$ ,/ates   
,code1 is am5d$ by add+ at ! end !      
foll[+3  #fga4 ,unju/ enri*m5t clawback 
& crim9al p5alty  7a7 ,def9itions ,9 ?is
 section1 ! t]ms cov]$ p>ty1 t>get firm1
 & trigg]+ ev5t h ! mean+s giv5 ^? t]ms 
9 section #fgd7;b74  7b7 ,prohibit$     
conduct ,any cov]$ p>ty ^: actions      
contribut$ to a trigg]+ ev5t t results 9
 ! dea? or injury ( a pati5t or pati5ts 
"u ! c>e ( ! t>get firm1 %all be puni%$ 

9 accordance ) sections #fgb & #fgc4    
#fgb4 ,crim9al p5alty ,:oev] violates   
section #fga7;b7 %all be imprison$ = n  
less ?an #a ye> or great] ?an #f ye>s4  
#fgc4 ,civil p5alty  7a7 ,am\nt ( p5alty
 ,:oev] violates section #fga7;b7 %all  
be subject to a civil p5alty 9 an am\nt 
( n m ?an #e times ! am\nt ( any        
clawback au?oriz$ "u section #fgd4  7b7 
,deposit ,any am\nt ( civil p5alty      
collect$ "u ?is section %all be deposit$
 z miscellane\s receipts 9 ! ,treasury (
 ! ,unit$ ,/ates4  #fgd4 ,clawback  7a7 
,9 g5]al  7#a7 ,prohibition ,x %all be  
unlawful = any cov]$ p>ty to acquire f a
 t>get firm cov]$ comp5sation by unju/  
enri*m5t1 & any su* cov]$ p>ty %all be  
subject to ! p5alties describ$ 9        
sections #fgb & #fgc 9 addition to !    
requir$ clawbacks "u ?is section4  7#b7 
,p5alty  7,a7 ,requir$ clawbacks ,if a  
t>get firm exp]i5ces a trigg]+ ev5t1 !  
,attorney ,g5]al or a ,/ate attorney    
g5]al may claw back all or "p ( ! cov]$ 
comp5sation receiv$ by ! cov]$ p>ty t is

 obta9$ f ! t>get firm dur+ ! prec$+ or 
succe$+ #aj ye>s4  7,b7 ,actions to     
recov] requir$ clawbacks  7i7 ,p[]s ( ! 
,attorney ,g5]al  7,i7 ,9 g5]al ,except 
z provid$ 9 clause 7ii71 ! ,attorney    
,g5]al may en=ce ?is section4  7,,ii7   
,au?ority pres]v$ ,no?+ 9 ?is section   
%all be con/ru$ to limit ! au?ority ( ! 
,attorney ,g5]al "u any provision ( law4
  7,,iii7 ,p5alty ,9 an action br\ght by
 ! ,attorney ,g5]al to en=ce ?is section
 & ! regulations promulgat$ "u ?is      
section1 a cov]$ p>ty %all be liable =  
all or "p ( ! cov]$ comp5sation receiv$ 
by ! cov]$ p>ty t is obta9$ f ! t>get   
firm dur+ ! prec$+ or succe$+ #aj ye>s4 
7ii7 ,en=cem5t by ,/ate attorneys g5]al 
7,i7 ,civil action ,if an attorney g5]al
 ( a ,/ate has reason to believe t a    
trigg]+ ev5t has h>m$ ! resid5ts ( t    
,/ate1 ! attorney g5]al ( ! ,/ate may1 z
 p>5s patriae1 br+ a civil action on    
behalf ( ! resid5ts ( ! ,/ate 9 an      
appropriate di/rict c\rt ( ! ,unit$     
,/ates to recov] all or "p ( ! cov]$    

comp5sation receiv$ by ! cov]$ p>ty t is
 obta9$ f ! t>get firm dur+ ! prec$+ or 
succe$+ #aj ye>s4  7,,ii7 ,rights ( !   
,attorney ,g5]al  7aa7 ,notice to       
,attorney ,g5]al 7,,aa7 ,9 g5]al ,except
 z provid$ 9 subitem 7,,cc71 ! attorney 
g5]al ( a ,/ate %all notify ! ,attorney 
,g5]al 9 writ+ t ! attorney g5]al ( !   
,/ate int5ds to br+ a civil action "u   
subclause 7,i7 n lat] ?an #aj days be=e 
initiat+ ! civil action4 7,,bb7 ,cont5ts
 ,! notification requir$ "u subitem     
7,,aa7 ) respect to a civil action %all 
include a copy ( ! compla9t to be fil$  
to initiate ! civil action4 7,,cc7      
,exception ,if x is n feasible = !      
attorney g5]al ( a ,/ate to provide !   
notification requir$ by subitem 7,,aa7  
be=e initiat+ an action "u subclause    
7,i71 ! attorney g5]al ( ! ,/ate %all   
notify ! ,attorney ,g5]al imm$iately ^u 
in/itut+ ! civil action4  7bb7          
,int]v5tion by ! ,attorney ,g5]al ,!    
,attorney ,g5]al may-- 7,,aa7 int]v5e 9 
any action br\ght by ! attorney g5]al ( 

a ,/ate "u subclause 7,i72 & 7,,bb7 ^u  
int]v5+ "u subitem 7,,aa71 be he>d on   
all matt]s aris+ 9 ! civil action & file
 petitions = appeal ( a decision 9 !    
action4  7iii7 ,limitation on ,/ate     
action :ile ,f$]al action is p5d+ ,if ! 
,attorney ,g5]al in/itutes an action "u 
clause 7i7 ) respect to a trigg]+ ev5t1 
a ,/ate may n1 dur+ ! p5d5cy ( t action1
 in/itute an action "u clause 7ii7 aga9/
 any def5dant nam$ 9 ! compla9t 9 !     
action in/itut$ by ! ,attorney ,g5]al   
bas$ on ! same set ( facts giv+ rise to 
! trigg]+ ev5t ) respect to :i* !       
,attorney ,g5]al in/itut$ ! action4     
7iv7 ,affirmative def5se ,x %all be an  
affirmative def5se 9 an action "u ?is   
section if ! applicable cov]$ p>ty %[s  
by cle> & conv9c+ evid5ce t ! cov]$ p>ty
 c\ld n prev5t ! trigg]+ ev5t4  7,c7    
,deposit  7i7 ,9 g5]al ,subject to      
clause 7ii71 any cov]$ comp5sation claw$
 back 9 an action "u ?is section %all be
 deposit$ 9 a fund creat$ by ! ,attorney
 ,g5]al & di/ribut$ by ! ,attorney      

,g5]al1 9 ! int]e/s ( ju/ice-- 7,i7 to  
cov] %ortfalls 9 ! sal>ies1 employee    
b5efit plans1 or o!r b5efits ow$ to     
curr5t or pa/ employees ( ! t>get firm  
negatively affect$ by ! behavior t is ! 
basis ( ! action2 &  7,,ii7 to be put to
 use 9 ! int]e/ ( s]v+ ! heal? c>e ne$s 
( ! h>m$ community4  7ii7 ,bankruptcy z 
a trigg]+ ev5t ,not)/&+ any o!r         
provision ( law1 if ! entry ( an ord] = 
relief "u title #aa or ! comm5cem5t (   
any o!r insolv5cy proce$+ is ! trigg]+  
ev5t t a t>get firm exp]i5ces1 !        
,attorney ,g5]al %all prioritize cov]+  
fund+ %ortfalls 9 any p5sion funds      
b5efitt+ h>m$ curr5t or pa/ employees ( 
! t>get firm4  7b7 ,def9itions ,9 ?is   
section3 7#a7 ,affiliate ,! t]m         
affiliate means-- 7,a7 a p]son t        
directly or indirectly owns1 controls1  
or holds ) p[] to vote1 #e p]c5t or m ( 
! out/&+ vot+ securities ( ano!r entity1
 o!r ?an a p]son t holds su*            
securities-- 7i7 9 a fiduci>y or ag5cy  
capacity )\t sole discretion>y p[] to   

vote su* securities2 or  7ii7 solely to 
secure a debt1 if su* entity has n 9    
fact ex]cis$ su* p[] to vote2  7,b7 a   
corporation #aj p]c5t or m ( ^: out/&+  
vot+ securities are directly or         
indirectly own$1 controll$1 or held )   
p[] to vote1 by ano!r entity 7ref]r$ to 
9 ?is subp>agraph z a cov]$ entity71 or 
by an entity t directly or indirectly   
owns1 controls1 or holds ) p[] to vote1 
#aj p]c5t or m ( ! out/&+ vot+          
securities ( ! cov]$ entity1 o!r ?an an 
entity t holds su* securities-- 7i7 9 a 
fiduci>y or ag5cy capacity )\t sole     
discretion>y p[] to vote su* securities2
 or  7ii7 solely to secure a debt1 if   
su* entity has n 9 fact ex]cis$ su* p[] 
to vote2  7,c7 a p]son ^: bus9ess is    
op]at$ "u a lease or op]at+ agreem5t by 
ano!r entity1 or p]son sub/antially all 
( ^: prop]ty is op]at$ "u an op]at+     
agreem5t ) t o!r entity2 or  7,d7 an    
entity t op]ates ! bus9ess or           
sub/antially all ( ! prop]ty ( ano!r    
entity "u a lease or op]at+ agreem5t4   

7#b7 ,*ange 9 control ,! t]m *ange 9    
control means a *ange 9 a legal "r )    
respect to-- 7,a7 ! p[] to vote m ?an   
#ej p] c5tum ( any class ( vot+         
securities ( a corporation t engages 9  
int]/ate comm]ce2 or  7,b7 any less] p] 
c5tum ( any class ( vot+ securities ( a 
corporation t engages 9 int]/ate comm]ce
 t is suffici5t to make ! acquir] ( su* 
an int]e/ a p]son t has ! ability to    
direct ! actions ( t corporation4  7#c7 
,control p]son ,! t]m control p]son--   
7,a7 means-- 7i7 a p]son-- 7,i7 t       
directly or indirectly owns1 controls1  
or holds ) p[] to vote1 includ+ ?r\gh   
coord9ation ) o!r p]sons1 #aj p]c5t or m
 ( ! out/&+ vot+ int]e/s ( a            
corporation2 or  7,,ii7 t op]ates !     
bus9ess or sub/antially all ( ! prop]ty 
( a corporation "u a lease or an op]at+ 
or managem5t agreem5t2  7ii7 a          
corporation1 o!r ?an a t>get firm1 t has
 #aj p]c5t or m ( its out/&+ vot+       
int]e/s directly or indirectly own$1    
controll$1 or held ) p[] to vote by a   

p]son t directly or indirectly owns1    
controls1 or holds ) p[] to vote1       
includ+ ?r\gh coord9ation ) o!r p]sons1 
#aj p]c5t or m ( ! out/&+ vot+ int]e/s (
 ano!r corporation2 or  7iii7 a p]son t 
o!rwise has ! ability to direct !       
actions ( a corporation2 &  7,b7 does n 
include a p]son t-- 7i7 7,i7 is a limit$
 p>tn] ) respect to a controll+ private 
fund t is a p>tn]%ip2  7,,ii7 does n    
p>ticipate 9 ! direction ( ! managem5t  
or policy ( a corporation2 &  7,,iii7 is
 n an insid] ) respect to ! controll+   
private fund describ$ 9 subclause 7,i72 
7ii7 is a p5sion fund or employee welf>e
 b5efit plan1 if nei!r ! fund nor plan  
7z applicable71 nor any b5efici>y or    
affiliate ( ! b5efit or plan1 is an     
insid] ) respect to a controll+ private 
fund2 or  7iii7 holds ! vot+ int]e/s ( a
 corporation solely-- 7,i7 9 a fiduci>y 
or ag5cy capacity )\t sole discretion>y 
p[] to vote ! securities2 or  7,,ii7 to 
secure a debt1 if ! p]son has n-- 7aa7  
ex]cis$ ! p[] to vote2 or  7bb7 ex]cis$ 

any o!r gov]nance rights ) respect to ! 
corporation4  7#d7 ,controll+ private   
fund ,! t]m controll+ private fund means
 a private fund t1 directly or ?r\gh an 
affiliate1 becomes a control p]son )    
respect to a t>get firm ?r\gh ! *ange 9 
control transaction ) respect to ! t>get
 firm4  7#e7 ,corporation ,! t]m        
corporation means-- 7,a7 a jo9t-/ock    
company2  7,b7 a company or p>tn]%ip    
association organiz$ "u a law t makes   
only ! capital subscrib$ or callable up 
to a specifi$ am\nt responsible = !     
debts ( ! association1 includ+ a limit$ 
p>tn]%ip & a limit$ liability company2  
7,c7 a tru/2 &  7,d7 an association hav+
 a p[] or privilege t a private         
corporation1 b n an individual or a     
p>tn]%ip1 possesses4  7#f7 ,cov]$       
comp5sation ,! t]m cov]$ comp5sation    
means-- 7,a7 sal>y2  7,b7 any bonus2    
7,c7 any comp5sation t is grant$1 e>n$1 
or ve/$ bas$ :olly or 9 "p ^u ! atta9m5t
 ( any f9ancial report+ measure or o!r  
p]=mance metric2  7,d7 equity-bas$      

comp5sation2  7,e7 "t- or s]vice-bas$   
aw>ds2  7,f7 aw>ds bas$ on nonf9ancial  
metrics2  7,g7 any monitor+ fees1       
managem5t fees1 advisory fees1 accel]at$
 monitor+ fees1 transaction fees1 or    
fees = s]vices n r5d]$2  7,h7 any pr(its
 realiz$ f ! buy+ or sell+ ( securities 
or assets1 includ+ any real prop]ty2    
7,i7 any sev]ance pay2  7,j7 any gold5  
p>a*ute b5efit2 or  7,k7 any o!r        
transaction simil> to a transaction     
describ$ 9 subp>agraph 7,h7 or 7,i74    
7#g7 ,cov]$ p>ty ,! t]m cov]$ p>ty      
means-- 7,a7 any curr5t or =m] director1
 (fic]1 or control p]son (1 or ag5t =1 a
 private equity firm or t>get firm2     
7,b7 any curr5t or =m] %>ehold] or jo9t 
v5ture p>tn] t p>ticipates 9 ! conduct (
 ! affairs ( a t>get firm2 or  7,c7 any 
private fund4  7#h7 ,employee welf>e    
b5efit plan ,! t]m employee welf>e      
b5efit plan has ! mean+ giv5 ! t]m 9    
section #c ( ! ,employee ,retirem5t     
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajjb74  7#i7 ,insid] ,! t]m  

insid] means any-- 7,a7 director ( a    
corporation2  7,b7 (fic] ( a            
corporation2  7,c7 manag+ ag5t ( a      
corporation2  7,d7 control p]son )      
respect to a corporation2  7,e7         
affiliate ( a corporation2  7,f7 g5]al  
p>tn] ( a corporation t is a p>tn]%ip2  
7,g7 consultant or contractor reta9$ by 
a corporation2  7,h7 affiliate1         
relative1 or ag5t ( a p]son describ$ 9  
any ( subp>agraphs 7,a7 ?r\gh 7,f72 or  
7,i7 affiliate1 relative1 or ag5t ( a   
p]son describ$ 9 subp>agraph 7,h74      
7#aj7 ,int]e/ cov]age ,! t]m int]e/     
cov]age means ! rev5ue ( ! t>get firm   
less ! exp5ses ( ! t>get firm1 exclud+  
tax & int]e/1 dur+ ! mo/ rec5t fiscal   
ye> ( ! t>get firm4  7#aa7 ,p5sion fund 
,! t]m p5sion fund has ! mean+ giv5 !   
t]m p5sion plan 9 section #c ( !        
,employee ,retirem5t ,security ,act (   
#aigd 7#bi ,u4,s4,c4 #ajjb74  7#ab7     
,private fund ,! t]m private fund means 
a corporation t-- 7,a7 w\ld be consid]$ 
an inve/m5t company "u section #c ( !   

,inve/m5t ,company ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;a-#c7 b = ! application ( 
p>agraph 7#a7 or 7#g7 ( subsection 7c7 (
 t section2  7,b7 is n a v5ture capital 
fund1 z def9$ 9 section #bge4bjc7l7-#a (
 title #ag1 ,code ( ,f$]al ,regulations1
 z 9 effect on ! date ( enactm5t ( ?is  
,act2 &  7,c7 is n an in/itution select$
 "u section #ajg ( ! ,community         
,developm5t ,bank+ & ,f9ancial          
,in/itutions ,act ( #aiid 7#ab ,u4,s4,c4
 #dgjf74  7#ac7 ,relative ,! t]m        
relative means an individual relat$ by  
aff9ity or consangu9ity )9 ! ?ird degree
 z det]m9$ by ! common law1 or          
individual 9 a /ep or adoptive          
relation%ip )9 su* ?ird degree4  7#ad7  
,security ,! t]m security has ! mean+   
giv5 ! t]m 9 section #b7;a7 ( !         
,securities ,act ( #aicc 7#ae ,u4,s4,c4 
#gg;b7a774  7#ae7 ,t>get firm ,! t]m    
t>get firm means a heal? c>e corporation
 t is acquir$ 9 a *ange 9 control       
transaction4  7#af7 ,trigg]+ ev5t ,! t]m
 trigg]+ ev5t means-- 7,a7 any "t at :i*

 a t>get firm is beh9d on sal>y paym5ts 
great] ?an #be p]c5t ( ! total work=ce (
 ! t>get firm = a p]iod ( m ?an #ij     
days2  7,b7 closure ( ! t>get firm2     
7,c7 if ! t>get firm is beh9d on r5t    
paym5ts = a p]iod ( m ?an #ij days2     
7,d7 if ! t>get firm defaults on a loan 
= a p]iod ( m ?an #ij days2 or  7,e7 !  
entry ( an ord] = relief "u title #aa on
 behalf ( ! t>get firm or ! comm5cem5t (
 any o!r insolv5cy proce$+4  7#ag7      
,unju/ enri*m5t ,! t]m unju/ enri*m5t   
means ! acquisition ( cov]$ comp5sation 
by a cov]$ p>ty f ! t>get firm dur+ !   
#aj-ye> p]iod prec$+ or succe$+ a       
trigg]+ ev5t if any ( ! foll[+ aggravat+
 circum/ances are e/abli%$3 7,a7 ,!     
cov]$ comp5sation 0 obta9$ ?r\gh a      
divid5d recapitalization1 a             
sale-leaseback ( real e/ate or equipm5t1
 or a relat$ p]son transaction1 z set =?
 9 section #bbi4djd ( title #ag1 ,code (
 ,f$]al ,regulations4  7,b7 ,! cov]$    
p>ty has be5 implicat$ 9 any :ite-coll> 
crime1 z def9$ 9 section #ija ( title ,i

 ( ! ,omnibus ,crime ,control & ,safe   
,/reets ,act ( #aifh 7#cd ,u4,s4,c4     
#ajbea71 committ$ 9 ! c\rse ( ! curr5t  
or =m] employm5t ( ! cov]$ p>ty4  7,c7  
,! cov]$ p>ty has *>g$ ! t>get firm     
accel]at$ monitor+ fees or fees =       
s]vices n r5d]$4  7,d7 ,at ! "t ( !     
issuance ( ! cov]$ comp5sation1 or z !  
result ( ! issuance ( ! cov]$           
comp5sation1 ! t>get firm _h an int]e/  
cov]age 9 excess ( #ajj p]c5t4  4  7b7  
,te*nical & con=m+ am5dm5t ,! table (   
sections = *apt] #ca ( title #ah1 ,unit$
 ,/ates ,code1 is am5d$ by add+ at ! end
 ! foll[+3  #fga4 ,unju/ enri*m5t       
clawback & crim9al p5alty4#fgb4 ,crim9al
 p5alty4#fgc4 ,civil p5alty4#fgd4       
,clawback4  4  #c4 ,prohibit+ paym5ts f 
,f$]al heal? c>e programs to entities t 
sell assets to or use assets z collat]al
 = a loan ) a real e/ate inve/m5t tru/  
,section #aabh7;a7 ( ! ,social ,security
 ,act 7#db ,u4,s4,c4 #acbj;a-#g7;a77 is 
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#e7 ,sell+ assets to or us+ 

assets z collat]al = a loan ) a real    
e/ate inve/m5t tru/  7,a7 ,9 g5]al ,any 
individual or entity t1 on or aft] !    
date ( enactm5t ( ?is p>agraph1 sells   
any assets to1 or newly pl$ges any      
assets z collat]al = a loan )1 a real   
e/ate inve/m5t tru/ 7z def9$ 9 section  
#hef7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf74  7,b7 ,cl>ification ,subp>agraph
 7,a7 %all n apply 9 ! case :]e an      
individual or entity agre$ to pl$ge an  
asset z collat]al = a loan ) a real     
e/ate inve/m5t tru/ prior to ! date (   
enactm5t ( ?is p>agraph1 includ+ )      
respect to any future agreem5t betwe5 ! 
individual or entity & ! real e/ate     
inve/m5t tru/ reg>d+ t same asset4  4   
#d4 ,repeal ( special rule = taxable    
,,reit subsidi>ies ) int]e/s 9 c]ta9    
heal? c>e prop]ty  7a7 ,9 g5]al ,section
 #hef7;d77#h77;,b7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$-- 7#a7 by /rik+  
or a qualifi$ heal? c>e prop]ty 7z def9$
 9 subsection 7e77#f77;,d77i771 &  7#b7 
by /rik+ qualifi$ heal? c>e prop]ty or4 

7b7 ,con=m+ am5dm5ts ,section           
#hef7;d77#i7 ( su* ,code is am5d$-- 7#a7
 9 subp>agraph 7,a7-- 7,a7 by /rik+ or a
 qualifi$ heal? c>e prop]ty 7z def9$ 9  
subsection 7e77#f77;,d77i771  7,b7 by   
/rik+ or qualifi$ heal? c>e prop]ty1 &  
7,c7 by /rik+ or qualifi$ heal? c>e     
prop]ties1 &  7#b7 9 subp>agraph 7,b7-- 
7,a7 by /rik+ or qualifi$ heal? c>e     
prop]ty 7z s def9$71 &  7,b7 by /rik+ or
 qualifi$ heal? c>e prop]ty ea* place x 
appe>s 9 clauses 7i71 7ii71 &           
7iii77,,ii74  7c7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4  #e4 ,elim9ation ( 
qualifi$ ,,reit divid5ds f qualifi$     
bus9ess income  7a7 ,9 g5]al ,p>agraph  
7#a7 ( section #aii;,a7b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#a7 ,9 g5]al ,! t]m comb9$   
qualifi$ bus9ess income am\nt means1 )  
respect to any taxable ye>1 an am\nt    
equal to ! sum ( ! am\nts det]m9$ "u    
p>agraph 7#b7 = ea* qualifi$ trade or   

bus9ess c>ri$ on by ! taxpay]4  4  7b7  
,con=m+ am5dm5ts  7#a7 ,section         
#aii;,a7c77#a7 ( su* ,code is am5d$ by  
/rik+ ! la/ s5t5ce4  7#b7 ,section      
#aii;,a7e7 ( su* ,code is am5d$ by /rik+
 p>agraph 7#c7 & by r$esignat+ p>agraph 
7#d7 z p>agraph 7#c74  7c7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4  #f4     
,m&atory report+ ) respect to c]ta9     
heal?-relat$ own]%ip in=mation ,"p ,a ( 
title ,,xi ( ! ,social ,security ,act   
7#db ,u4,s4,c4 #acja et seq47 is am5d$  
by add+ at ! end ! foll[+ new section3  
#aaej;,d4 ,m&atory report+ ) respect to 
c]ta9 heal?-relat$ own]%ip in=mation    
7a7 ,m&atory report+ ) respect c]ta9    
heal?-,relat$ own]%ip in=mation  7#a7   
,report+ ,n lat] ?an ,janu>y #a1 #bjbg  
7or 9 ! case ( a specifi$ entity =m$    
aft] ,janu>y #a1 #bjbg1 )9 #fj days (   
becom+ a specifi$ entity71 & ea* ye>    
!reaft]1 ea* specifi$ entity 7z def9$ 9 
subsection 7e77#h77 %all submit to !    

,secret>y1 9 a =m & mann] specifi$ by ! 
,secret>y1 a report conta9+ ! foll[+    
in=mation1 subject to p>agraph          
7#c77;,b73 7,a7 ,data on m]g]s1         
acquisitions1 *anges 9 own]%ip1 *anges 9
 control1 transactions to =m new        
affiliations1 *anges 9 p>tn]%ips1 jo9t  
v5tures1 &_/or managem5t s]vices        
agreem5ts1 to :i* su* specifi$ entity is
 a p>ty = ! previ\s #a-ye> p]iod1       
includ+-- 7i7 ! prim>y reason ! report+ 
entity complet$ ! acquisition2 &  7ii7 a
 description ( h[ ! acquir] obta9$      
control ( ! acquiree1 & ! p]c5tage (    
own]%ip acquir$ 7i4e41 vot+ equity      
int]e/s74  7,b7 ,z applicable1 ! "n1    
address1 tax or heal? plan id5tification
 numb]s 7includ+1 )\t limitation1 ! tax 
id5tification numb]1 ,national          
,association ( ,insurance ,commission]s 
id5tification numb]1 ,/ate insurance    
id5tification numb]1 ,m$ic>e provid]    
numb]1 & ! /&>d unique heal? id5tifi] 7z
 describ$ 9 section #aagc7;b777 ( all   
heal? c>e provid]s )9 ! specifi$ entity 

t furni% items or s]vices4  7,c7 ,!     
bus9ess /ructure ( any controll+ entity1
 includ+ ! bus9ess type & ! tax         
id5tification numb] ( su* entity1 o!r   
affiliates "u common control1           
subsidi>ies1 & managem5t s]vices        
entities ( su* specifi$ entity1 z ( !   
date ( ! submission ( su* report4  7,d7 
,in=mation reg>d+-- 7i7 ! debt-to-e>n+s 
ratio ( ! specifi$ entity2  7ii7 ! am\nt
 ( debt incurr$-- 7,i7 by ea* hospital  
or sep>ate entity )9 ! heal? sy/em2 &   
7,,ii7 by ! entire specifi$ entity2     
7iii7 real e/ate leases & pur*ases =    
prop]ty us$1 or int5d$ to be us$1 to    
furni% or o!rwise support ! provision ( 
heal? c>e s]vices1 includ+ exp5ditures  
on r5ts & ma9t5ance1 prop]ty taxes paid1
 & ! "n ( ! company leas$ f2  7iv7      
details ( o!r companies' rev5ue %>+     
arrangem5t2  7v7 fees *>g$ or divid5ds  
paid to inve/ors2  7vi7 9 ! case ( a    
non-pr(it hospital1 a subsidi>y ( a     
non-pr(it hospital1 or a #eja7;c77#c7   
entity t %>es common own]%ip ) a        

non-pr(it hospital1 capital ga9s        
inve/m5ts 7disaggregat$ by ! type (     
inve/m5t7 & any taxes paid on su* ga9s f
 su* inve/m5ts2 &  7vii7 in=mation )    
respect to any controll+ entity ( su*   
specifi$ entity4  7,e7 ,! value (       
quality paym5ts receiv$ = p]=mance "u   
any value-bas$ or o!r p]=mance-bas$     
program su* z ! %>$ sav+s program "u    
section #ahii4  7,f7 ,any o!r in=mation 
) respect to own]%ip or control ( a     
specifi$ entity1 z det]m9$ by !         
,secret>y4  7,g7 ,any *anges to ! heal? 
c>e provid]s )9 ! specifi$ entity t     
furni% items or s]vices dur+ ! previ\s  
#a-ye> p]iod1 id5tifi$ by ! ,national   
,provid] id5tifi] describ$ 9 section    
#aagc7;b74  7,h7 ,! domicile & bus9ess  
regi/ration in=mation = any controll+   
entity or subsidi>y ( su* controll+     
entity t is domicil$ outside ( ! ,unit$ 
,/ates4  7#b7 ,avoid+ duplicate report+ 
,if a specifi$ entity is own$ or        
controll$ by an entity describ$ 9       
subp>agraph 7,g7 ( subsection 7e77#h71  

only ! entity describ$ 9 su* subp>agraph
 7,g7 %all be requir$ to submit reports 
"u ?is subsection ) respect to su*      
entity & any specifi$ entity own$ or    
controll$ by ! entity4  7#c7            
,availability ( in=mation & public      
report+  7,a7 ,9 g5]al ,n lat] ?an      
,janu>y #a1 #bjbh1 & annually !reaft]1  
subject to subp>agraph 7,b71 ! ,secret>y
 %all po/ on a publicly available       
website ( ! ,dep>tm5t ( ,heal? & ,human 
,s]vices ! in=mation report$ "u ?is     
subsection ) respect to ! previ\s #a-ye>
 p]iod = :i* ! in=mation 0 collect$4    
7,b7 ,requirem5t ,9 mak+ in=mation      
report$ "u ?is subsection publicly      
available "u subp>agraph 7,a71 !        
,secret>y %all d s 9 a mann] t does n   
disclose ! social security numb] ( any  
individual provid] ( s]vices or suppli]4
  7b7 ,audits ,! ,secret>y %all conduct 
an annual audit consi/+ ( a r&om sample 
( specifi$ entities to v]ify compliance 
) ! requirem5ts ( ?is section & !       
accuracy ( in=mation submitt$ pursuant  

to ?is section4  7c7 ,p5alty = failure  
,to report ,if a specifi$ entity fails  
to provide a complete report "u         
subsection 7a71 or submits a report     
conta9+ false in=mation1 su* entity %all
 be subject to a civil monet>y p5alty ( 
n m ?an #e1jjj1jjj = ea* su* report n   
provid$ or conta9+ false in=mation4 ,su*
 p5alty %all be impos$ & collect$ 9 !   
same mann] z civil money p5alties "u    
subsection 7a7 ( section #aabh;,a are   
impos$ & collect$ "u t section4  7d7    
,inapplicability ( pap]work r$uction act
 ,*apt] #ce ( title #dd1 ,unit$ ,/ates  
,code1 %all n apply to collections (    
in=mation made "u ?is section4  7e7     
,def9itions ,9 ?is section3 7#a7        
,control ,! t]m control means ! direct  
or indirect p[] ?r\gh own]%ip1          
contractual agreem5t1 or o!rwise-- 7,a7 
to vote m ?an #e p]c5t ( any class (    
vot+ securities ( a specifi$ entity2 or 
7,b7 to direct ! actions ( ! specifi$   
entity4  7#b7 ,controll+ entity  7,a7 ,9
 g5]al ,! t]m controll+ entity means1 ) 

respect to any specifi$ entity1 a p>5t  
company or o!r entity t owns or controls
 ! specifi$ entity ?r\gh own]%ip1       
contractual agreem5t1 or o!rwise4  7,b7 
,inclusion ( ,r,e,i,ts ,su* t]m         
includes1 ) respect to a specifi$       
entity1 a real e/ate inve/m5t tru/ 7z   
def9$ 9 section #hef ( ! ,int]nal       
,rev5ue ,code ( #aihf7 t owns prop]ty   
:]e ! specifi$ entity furni%es heal? c>e
 items or s]vices4  7#c7 ,heal? plan ,! 
t]m heal? plan has ! mean+ giv5 su* t]m 
9 section #aabh;,c7c74  7#d7 ,heal?     
sy/em ,! t]m heal? sy/em means a gr\p ( 
heal? c>e organizations 7su* z physician
 practices1 hospitals1 skill$ nurs+     
facilities7 t are jo9tly own$ or manag$4
  7#e7 ,hospital ,! t]m hospital has !  
mean+ giv5 su* t]m 9 section #ahfa7;e74 
7#f7 ,indep5d5t free/&+ em]g5cy dep>tm5t
 ,! t]m indep5d5t free/&+ em]g5cy       
dep>tm5t has ! mean+ giv5 su* t]m 9     
section #bgii;,a-#a7;a77#c77;,d7 ( !    
,public ,heal? ,s]vice ,act4  7#g7      
,private fund ,! t]m private fund means 

a corporation t-- 7,a7 w\ld be consid]$ 
an inve/m5t company "u section #c ( !   
,inve/m5t ,company ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;a-#c7 b = ! application ( 
p>agraph 7#a7 or 7#g7 ( subsection 7c7 (
 su* section #c2  7,b7 is n a v5ture    
capital fund1 z def9$ 9 section         
#bge4bjc7l7-#a ( title #ag1 ,code (     
,f$]al ,regulations1 z 9 effect on !    
date ( enactm5t ( ?is section2 &  7,c7  
is n an in/itution select$ "u section   
#ajg ( ! ,community ,developm5t ,bank+ &
 ,f9ancial ,in/itutions ,act ( #aiid    
7#ab ,u4,s4,c4 #dgjf74  7#h7 ,specifi$  
entity ,! t]m specifi$ entity means--   
7,a7 a hospital or heal? sy/em2  7,b7 a 
physician-own$ physician practice 7o!r  
?an a practice describ$ 9 subp>agraph   
7,c77 t is enroll$ 9 ! ,m$ic>e program  
"u title ,,xviii "u section #ahff7;j72  
7,c7 a physician practice own$1         
controll$1 "u common control1 or "u     
managem5t agreem5t by a hospital1 heal? 
sy/em1 a heal? plan1 a private fund1 a  
v5ture capital fund1 a public or private

 corporation1 or any subsidi>ies or     
entities "u common control !re(2  7,d7  
an ambulatory surgical c5t] meet+ !     
/&>ds specifi$ "u section               
#ahcb7;a77#b77;,f77i72  7,e7 an         
indep5d5t free/&+ em]g5cy dep>tm5t2     
7,f7 a behavioral heal? treatm5t        
facility1 a hospice program 7z def9$ 9  
section #ahfa7;dd77#b771 a home heal?   
ag5cy1 a provid] ( s]vices or r5al      
dialysis facility t furni%es r5al       
dialysis s]vices1 or an assi/$ liv+     
facility2  7,g7 any entity t owns or    
controls #a or m specifi$ entities2 &   
7,h7 any o!r entity specifi$ by !       
,secret>y t furni%es heal? c>e items &  
s]vices4  7#i7 ,v5ture capital fund ,!  
t]m v5ture capital fund has ! mean+ giv5
 su* t]m 9 section #bge4bjc7l7-#a (     
title #ag1 ,code ( ,f$]al ,regulations4 
4  #g4 ,report on moral injury 9 heal?  
c>e  7a7 ,9 g5]al ,n lat] ?an #c ye>s   
aft] ! date ( enactm5t ( ?is ,act1 !    
,inspector ,g5]al ( ! ,dep>tm5t ( ,heal?
 & ,human ,s]vices %all-- 7#a7 conduct a

 /udy t evaluates pr(it-driv5 practices1
 includ+ co/-cutt+ practices &          
rev5ue-enhanc+ practices1 9 heal? c>e   
deliv]y2 &  7#b7 submit to ,congress a  
report describ+ ! results ( su* /udy4   
7b7 ,inclusions ,! /udy conduct$ "u     
subsection 7a77#a7 %all include-- 7#a7  
an evaluation ( pr(it-driv5 &           
rev5ue-maximization practices 9 heal?   
c>e deliv]y1 includ+-- 7,a7 ov]bill+ or 
up-cod+2  7,b7 inflat$ pati5t sev]ity or
 pati5t risk scores2  7,c7 executive &  
provid] comp5sation design$ to increase 
rev5ue or pr(its1 su* z bonuses bas$ on 
productivity1 relative value units1 or  
s]vice volume2  7,d7 r$uctions 9 /aff & 
sub/itution ( pati5t c>e /aff )         
te*nology2  7,e7 *anges 9 ! mix (       
s]vices provid$ 9 ord] to maximize      
rev5ue2  7,f7 ef=ts by private heal?    
insur]s t are design$ to re/rict1 delay1
 d5y1 or disc\rage heal? c>e access     
s]vices1 su* z prior au?orization or    
utilization review me*anisms2 &  7,g7   
ef=ts by private heal? insur]s1 private 

equity firms1 & o!r corporate entities  
to evade ,/ate corporate practice (     
m$ic9e laws2  7#b7 an evaluation ( !    
impact ( su* practices on-- 7,a7 !      
quality1 safety1 & outcomes ( pati5t    
c>e2  7,b7 ! well-be+ ( p]sonnel provid+
 heal? c>e s]vices2  7,c7 ! ,m$ic>e     
program "u title ,,xviii ( ! ,social    
,security ,act 7#db ,u4,s4,c4 #acie et  
seq472  7,d7 ! ,m$icaid program "u title
 ,,xix ( su* ,act 7#db ,u4,s4,c4 #acif  
et seq472  7,e7 heal? c>e furni%$ "u !  
laws adm9i/]$ by ! ,secret>y ( ,vet]ans 
,affairs2  7,f7 ! heal? insurance       
program c>ri$ out "u *apt] #hi ( title  
#e1 ,unit$ ,/ates ,code2  7,g7 qualifi$ 
heal? plans (f]$ ?r\gh ,am]ican ,heal?  
,b5efit ,ex*anges e/abli%$ "u section   
#acaa or #acba ( ! ,pati5t ,protection &
 ,af=dable ,c>e ,act 7#db ,u4,s4,c4     
#ahjca1 #ahjda72 &  7,h7 gr\p heal?     
plans & gr\p & individual heal?         
insurance cov]age1 includ+ manag$ c>e   
plans2  7#c7 an e/imate ( ! f9ancial    
returns accru+ to p>ties t b5efit f su* 

practices1 includ+ inve/ors & o!r       
entities2 &  7#d7 an evaluation ( !     
adequacy ( ,f$]al policies design$ to   
prev5t & p5alize heal? c>e fraud &      
abuse1 giv5 heal? c>e consolidation &   
integration1 includ+ ! transp>5cy (     
heal? c>e entities' f9ancial practices1 
! en=cem5t res\rces ( ,f$]al ag5cies1 & 
! adequacy ( f9ancial & o!r p5alties z  
det]r5ts4