10 U.S.C. § 992 — Financial literacy training: financial serv-

Page 903 TITLE 10—ARMED FORCES § 992 107–107, div. A, title V, § 592(b), Dec. 28, 2001, 115 Stat. 1125, directed the Secretary of Defense to submit to committees of Congress a report on the administration of this section during fiscal year 2001 not later than Mar. 31, 2002. § 992. Financial literacy training: financial serv- ices (a) REQUIREMENT FOR FINANCIAL LITERACY TRAINING PROGRAM FOR MEMBERS.—(1) The Sec- retary concerned shall carry out a program to provide comprehensive financial literacy train- ing to members of the armed forces under the jurisdiction of the Secretary on— (A) financial services that are available under law to members; (B) financial services that are routinely of- fered by private sector sources to members; (C) practices relating to the marketing of private sector financial services to members; (D) such other matters relating to financial services available to members, and the mar- keting of financial services to members, as the Secretary considers appropriate; and (E) such other financial practices as the Sec- retary considers appropriate. (2) Training under this subsection shall be pro- vided to a member of the armed forces— (A) as a component of the initial entry training of the member; (B) upon arrival at the first duty station of the member; (C) upon arrival at each subsequent duty sta- tion, in the case of a member in pay grade E–6 or below or in pay grade O–3 or below; (D) when the member vests in the Thrift Savings Plan (TSP) under section 8432(g)(2)(C) of title 5; (E) when the member becomes entitled to re- ceive continuation pay under section 356 of title 37, at which time the training shall in- clude, at a minimum, information on options available to the member regarding the use of continuation pay; (F) at each major life event during the serv- ice of the member, such as— (i) marriage; (ii) divorce; (iii) birth of first child; or (iv) disabling sickness or condition; (G) during leadership training; (H) during pre-deployment training and dur- ing post-deployment training; (I) at transition points in the service of the member, such as— (i) transition from a regular component to a reserve component; (ii) separation from service; or (iii) retirement; and (J) as a component of periodically recurring required training that is provided to the mem- ber at a military installation. (3) The training provided at a military instal- lation under paragraph (2)(J) shall include infor- mation on any financial services marketing practices that are particularly prevalent at that military installation and in the vicinity. (4) The Secretary concerned shall prescribe regulations setting forth any other events and circumstances (in addition to the events and cir- cumstances described in paragraph (2)) upon which the training required by this subsection shall be provided. (b) COUNSELING FOR MEMBERS AND SPOUSES.— (1) The Secretary concerned shall, upon request, provide counseling on financial services to each member of the armed forces, and such member’s spouse, under the jurisdiction of the Secretary. (2)(A) In the case of a military installation at which at least 2,000 members of the armed forces on active duty are assigned, the Secretary con- cerned— (i) shall provide counseling on financial serv- ices under this subsection through a full-time financial services counselor at such installa- tion; (ii) shall provide such counseling at such in- stallation— (I) through members of the armed forces in pay grade E–7 or above, or civilians, who provide such counseling as part of their other duties for the armed forces or the De- partment of Defense; (II) by contract, including contract for services by telephone and by the Internet; or (III) through qualified representatives of nonprofit organizations and agencies under formal agreements with the Department of Defense to provide such counseling; and (iii) may not provide financial services through any individual unless such individual agrees to submit financial disclosures annu- ally to the Secretary. (B) In the case of any military installation not described in subparagraph (A), the Secretary concerned shall provide counseling on financial services under this subsection at such installa- tion in accordance with the requirements estab- lished under subparagraph (A)(ii) and (iii). (3) Each financial services counselor under paragraph (2)(A)(i), and any other individual providing counseling on financial services under paragraph (2), shall be an individual who, by rea- son of education, training, or experience, is qualified to provide helpful counseling to mem- bers of the armed forces and their spouses on fi- nancial services and marketing practices de- scribed in subsection (a)(1). Such individual may be a member of the armed forces or an employee of the Federal Government. (4)(A) The Secretary concerned shall take such action as is necessary to ensure that each finan- cial services counselor under paragraph (2)(A)(i), and any other individual providing counseling on financial services under paragraphs (2), is free from conflicts of interest relevant to the performance of duty under this section and, in the performance of that duty, is dedicated to furnishing members of the armed forces and their spouses with helpful information and coun- seling on financial services and related mar- keting practices. (B) In carrying out the requirements of sub- paragraph (A), the Secretary concerned shall es- tablish a requirement that each financial serv- ices counselor under paragraph (2)(A)(i), and any other individual providing counseling on finan- cial services under paragraph (2), submit finan- cial disclosures annually to the Secretary. Page 904 TITLE 10—ARMED FORCES § 992 (C) The Secretary concerned shall review all financial disclosures submitted pursuant to sub- paragraph (B) to ensure the counselor, or the in- dividual providing counseling, is free from con- flict as required under this paragraph. (D) If the Secretary concerned determines that a financial services counselor under paragraph (2)(A)(i), or any other individual providing coun- seling on financial services under paragraph (2), is not free from conflict as required under this paragraph, the Secretary shall ensure that the counselor, or the individual providing coun- seling, does not provide such services until such time as the Secretary determines that such con- flict is resolved. (c) LIFE INSURANCE.—In counseling a member of the armed forces, or spouse of a member of the armed forces, under this section regarding life insurance offered by a private sector source, a financial services counselor under subsection (b)(2)(A)(i), or another individual providing counseling on financial services under sub- section (b)(2), shall furnish the member or spouse, as the case may be, with information on the availability of Servicemembers’ Group Life Insurance under subchapter III of chapter 19 of title 38, including information on the amounts of coverage available and the procedures for electing coverage and the amount of coverage. (d) PROVISION OF RETIREMENT INFORMATION.— In each training under subsection (a) and in each meeting to provide counseling under sub- section (b), a member of the armed forces shall be provided with— (1) all forms relating to retirement that are relevant to the member, including with re- spect to the Thrift Savings Plan; and (2) information with respect to how to find additional information. (e) FINANCIAL LITERACY AND PREPAREDNESS SURVEY.—(1) The Director of the Defense Man- power Data Center shall annually include in the status of forces survey a survey of the status of the financial literacy and preparedness of mem- bers of the armed forces. (2) The results of the annual financial literacy and preparedness survey— (A) shall be used by each of the Secretaries concerned as a benchmark to evaluate and up- date training provided under this section; and (B) shall be submitted to the Committees on Armed Services of the Senate and the House of Representatives. (f) FINANCIAL SERVICES DEFINED.—In this sec- tion, the term ‘‘financial services’’ includes the following: (1) Life insurance, casualty insurance, and other insurance. (2) Investments in securities or financial in- struments. (3) Banking, credit, loans, deferred payment plans, and mortgages. (4) Health insurance, budget management, Thrift Savings Plan (TSP), retirement lump sum payments (including rollover options and tax consequences), and Survivor Benefit Plan (SBP). (Added Pub. L. 109–163, div. A, title V, § 578(a)(1), Jan. 6, 2006, 119 Stat. 3274; amended Pub. L. 111–84, div. A, title X, § 1073(a)(8), Oct. 28, 2009, 123 Stat. 2472; Pub. L. 114–92, div. A, title VI, § 661(b)–(e)(1), Nov. 25, 2015, 129 Stat. 857, 858; Pub. L. 118–31, div. A, title V, § 524(a), Dec. 22, 2023, 137 Stat. 253; Pub. L. 118–159, div. A, title V, § 541, Dec. 23, 2024, 138 Stat. 1891.) Editorial Notes AMENDMENTS 2024—Subsec. (a)(2)(C). Pub. L. 118–159, § 541(a)(1), sub- stituted ‘‘grade E–6’’ for ‘‘grade E–4’’. Subsec. (a)(2)(D). Pub. L. 118–159, § 541(a)(2), (3), redes- ignated subpar. (E) as (D) and struck out former sub- par. (D) which read as follows: ‘‘on the date of pro- motion of the member, in the case of a member in pay grade E–5 or below or in pay grade O–4 or below;’’. Subsec. (a)(2)(E) to (J). Pub. L. 118–159, § 541(a)(3), re- designated subpars. (F) to (K) as (E) to (J), respec- tively. Former subpar. (E) redesignated (D). Subsecs. (d) to (f). Pub. L. 118–159, § 541(b), added sub- sec. (d) and redesignated former subsecs. (d) and (e) as (e) and (f), respectively. 2023—Subsec. (b)(2)(A)(i). Pub. L. 118–31, § 524(a)(1)(A), struck out ‘‘and’’ after ‘‘installation;’’. Subsec. (b)(2)(A)(ii). Pub. L. 118–31, § 524(a)(1)(B)(i), (ii), in introductory provisions, substituted ‘‘shall’’ for ‘‘may’’ and ‘‘installation—’’ for ‘‘installation by any means elected by the Secretary from among the fol- lowing:’’. Subsec. (b)(2)(A)(ii)(I). Pub. L. 118–31, § 524(a)(1)(B)(iii), substituted ‘‘through’’ for ‘‘Through’’ and ‘‘Defense;’’ for ‘‘Defense.’’ Subsec. (b)(2)(A)(ii)(II). Pub. L. 118–31, § 524(a)(1)(B)(iv), substituted ‘‘by contract’’ for ‘‘By con- tract’’ and ‘‘Internet; or’’ for ‘‘Internet.’’ Subsec. (b)(2)(A)(ii)(III). Pub. L. 118–31, § 524(a)(1)(B)(v), substituted ‘‘through’’ for ‘‘Through’’ and ‘‘counseling; and’’ for ‘‘counseling.’’ Subsec. (b)(2)(A)(iii). Pub. L. 118–31, § 524(a)(1)(C), added cl. (iii). Subsec. (b)(2)(B). Pub. L. 118–31, § 524(a)(2), substituted ‘‘installation in accordance with the requirements es- tablished under subparagraph (A)(ii) and (iii).’’ for ‘‘in- stallation by any of the means set forth in subpara- graph (A)(ii), as elected by the Secretary concerned.’’ Subsec. (b)(4). Pub. L. 118–31, § 524(a)(3), designated ex- isting provisions as subpar. (A) and added subpars. (B) to (D). 2015—Pub. L. 114–92, § 661(e)(1), substituted ‘‘Financial literacy training: financial services’’ for ‘‘Consumer education: financial services’’ in section catchline. Subsec. (a). Pub. L. 114–92, § 661(b)(1), substituted ‘‘Fi- nancial Literacy Training’’ for ‘‘Consumer Education’’ in heading. Subsec. (a)(1). Pub. L. 114–92, § 661(b)(2), substituted ‘‘financial literacy training’’ for ‘‘education’’ in intro- ductory provisions. Subsec. (a)(2). Pub. L. 114–92, § 661(b)(3), added par. (2) and struck out former par. (2) which read as follows: ‘‘Training under this subsection shall be provided to members as— ‘‘(A) a component of members initial entry orienta- tion training; and ‘‘(B) a component of periodically recurring required training that is provided for the members at military installations.’’ Subsec. (a)(3). Pub. L. 114–92, § 661(b)(4), substituted ‘‘paragraph (2)(J)’’ for ‘‘paragraph (2)(B)’’. Subsec. (a)(4). Pub. L. 114–92, § 661(b)(5), added par. (4). Subsec. (d). Pub. L. 114–92, § 661(c)(2), added subsec. (d). Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 114–92, § 661(c)(1), redesignated subsec. (d) as (e). Subsec. (e)(4). Pub. L. 114–92, § 661(d), added par. (4). 2009—Subsec. (b)(4). Pub. L. 111–84 struck out period after ‘‘under this section’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–163, div. A, title V, § 578(b), Jan. 6, 2006, 119 Stat. 3276, provided that: ‘‘The amendments made by Page 905 TITLE 10—ARMED FORCES § 992 this section [enacting this section] shall take effect on the first day of the first month that begins more than 120 days after the date of the enactment of this Act [Jan. 6, 2006].’’ INCLUSION OF INFORMATION ON FREE CREDIT MONITORING IN ANNUAL FINANCIAL LITERACY BRIEFING Pub. L. 116–92, div. A, title V, § 560A, Dec. 20, 2019, 133 Stat. 1393, provided that: ‘‘The Secretary of each mili- tary department shall ensure that the annual financial literacy education briefing provided to members of the Armed Forces includes information on the availability of free credit monitoring services pursuant to section 605A(k) of the Fair Credit Reporting Act (15 U.S.C. 1681c–1(k)).’’ IMPLEMENTATIONS Pub. L. 114–92, div. A, title VI, § 661(f), Nov. 25, 2015, 129 Stat. 859, provided that: ‘‘Not later than six months after the date of the enactment of this Act [Nov. 25, 2015], the Secretary of the military department con- cerned and the Secretary of the Department in which the Coast Guard is operating shall commence providing financial literacy training under section 992 of title 10, United States Code, as amended by subsections (b), (c), and (d) of this section, to members of the Armed Forces.’’ COUNSELING ON MORTGAGE FORECLOSURES FOR MEM- BERS OF THE ARMED FORCES RETURNING FROM SERV- ICE ABROAD Pub. L. 110–289, div. B, title II, § 2202, July 30, 2008, 122 Stat. 2849, provided that: ‘‘(a) IN GENERAL.—The Secretary of Defense shall de- velop and implement a program to advise members of the Armed Forces (including members of the National Guard and Reserve) who are returning from service on active duty abroad (including service in Operation Iraqi Freedom and Operation Enduring Freedom) on actions to be taken by such members to prevent or forestall mortgage foreclosures. ‘‘(b) ELEMENTS.—The program required by subsection (a) shall include the following: ‘‘(1) Credit counseling. ‘‘(2) Home mortgage counseling. ‘‘(3) Such other counseling and information as the Secretary considers appropriate for purposes of the program. ‘‘(c) TIMING OF PROVISION OF COUNSELING.—Counseling and other information under the program required by subsection (a) shall be provided to a member of the Armed Forces covered by the program as soon as prac- ticable after the return of the member from service as described in subsection (a).’’ MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION Pub. L. 109–290, Sept. 29, 2006, 120 Stat. 1317, provided that: ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS. ‘‘(a) SHORT TITLE.—This Act may be cited as the ‘Military Personnel Financial Services Protection Act’. ‘‘(b) TABLE OF CONTENTS.—[Omitted] ‘‘SEC. 2. CONGRESSIONAL FINDINGS. ‘‘Congress finds that— ‘‘(1) members of the Armed Forces perform great sacrifices in protecting our Nation in the War on Ter- ror; ‘‘(2) the brave men and women in uniform deserve to be offered first-rate financial products in order to provide for their families and to save and invest for retirement; ‘‘(3) members of the Armed Forces are being offered high-cost securities and life insurance products by some financial services companies engaging in abu- sive and misleading sales practices; ‘‘(4) one securities product offered to service mem- bers, known as the ‘mutual fund contractual plan’, largely disappeared from the civilian market in the 1980s, due to excessive sales charges; ‘‘(5) with respect to a mutual fund contractual plan, a 50 percent sales commission is assessed against the first year of contributions, despite an average com- mission on other securities products of less than 6 percent on each sale; ‘‘(6) excessive sales charges allow abusive and mis- leading sales practices in connection with mutual fund contractual plan; ‘‘(7) certain life insurance products being offered to members of the Armed Forces are improperly mar- keted as investment products, providing minimal death benefits in exchange for excessive premiums that are front-loaded in the first few years, making them entirely inappropriate for most military per- sonnel; and ‘‘(8) the need for regulation of the marketing and sale of securities and life insurance products on mili- tary bases necessitates Congressional action. ‘‘SEC. 3. DEFINITIONS. ‘‘For purposes of this Act, the following definitions shall apply: ‘‘(1) LIFE INSURANCE PRODUCT.— ‘‘(A) IN GENERAL.—The term ‘life insurance prod- uct’ means any product, including individual and group life insurance, funding agreements, and annu- ities, that provides insurance for which the prob- abilities of the duration of human life or the rate of mortality are an element or condition of insurance. ‘‘(B) INCLUDED INSURANCE.—The term ‘life insur- ance product’ includes the granting of— ‘‘(i) endowment benefits; ‘‘(ii) additional benefits in the event of death by accident or accidental means; ‘‘(iii) disability income benefits; ‘‘(iv) additional disability benefits that operate to safeguard the contract from lapse or to provide a special surrender value, or special benefit in the event of total and permanent disability; ‘‘(v) benefits that provide payment or reim- bursement for long-term home health care, or long-term care in a nursing home or other related facility; ‘‘(vi) burial insurance; and ‘‘(vii) optional modes of settlement or proceeds of life insurance. ‘‘(C) EXCLUSIONS.—Such term does not include workers compensation insurance, medical indem- nity health insurance, or property and casualty in- surance. ‘‘(2) NAIC.—The term ‘NAIC’ means the National Association of Insurance Commissioners (or any suc- cessor thereto). ‘‘SEC. 4. PROHIBITION ON FUTURE SALES OF PERI- ODIC PAYMENT PLANS. ‘‘(a) AMENDMENT.—[Amended section 80a–27 of Title 15, Commerce and Trade.] ‘‘(b) TECHNICAL AMENDMENT.—[Amended section 80a–27 of Title 15.] ‘‘(c) REPORT ON REFUNDS, SALES PRACTICES, AND REV- ENUES FROM PERIODIC PAYMENT PLANS.—Not later than 6 months after the date of enactment of this Act [Sept. 29, 2006], the Securities and Exchange Commission shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Bank- ing, Housing, and Urban Affairs of the Senate, a report describing— ‘‘(1) any measures taken by a broker or dealer reg- istered with the Securities and Exchange Commission pursuant to section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) to voluntarily refund payments made by military service members on any periodic payment plan certificate, and the amounts of such refunds; ‘‘(2) after such consultation with the Secretary of Defense, as the Commission considers appropriate, the sales practices of such brokers or dealers on mili- tary installations over the 5 years preceding the date Page 906 TITLE 10—ARMED FORCES § 992 of submission of the report and any legislative or reg- ulatory recommendations to improve such practices; and ‘‘(3) the revenues generated by such brokers or deal- ers in the sales of periodic payment plan certificates over the 5 years preceding the date of submission of the report, and the products marketed by such bro- kers or dealers to replace the revenue generated from the sales of periodic payment plan certificates pro- hibited under subsection (a). ‘‘SEC. 5. REQUIRED DISCLOSURES REGARDING OF- FERS OR SALES OF SECURITIES ON MILITARY INSTALLATIONS. [Amended section 78o–3 of Title 15.] ‘‘SEC. 6. METHOD OF MAINTAINING BROKER AND DEALER REGISTRATION, DISCIPLINARY, AND OTHER DATA. [Amended section 78o–3 of Title 15.] ‘‘SEC. 7. FILING DEPOSITORIES FOR INVESTMENT ADVISERS. ‘‘(a) INVESTMENT ADVISERS.—[Amended section 80b–4 of Title 15.] ‘‘(b) CONFORMING AMENDMENTS.— ‘‘(1) INVESTMENT ADVISERS ACT OF 1940.—[Amended section 80b–3a of Title 15.] ‘‘(2) NATIONAL SECURITIES MARKETS IMPROVEMENT ACT OF 1996.—[Repealed provisions set out as a note under section 80b–10 of Title 15.] ‘‘SEC. 8. STATE INSURANCE AND SECURITIES JU- RISDICTION ON MILITARY INSTALLATIONS. ‘‘(a) CLARIFICATION OF JURISDICTION.—Any provision of law, regulation, or order of a State with respect to regulating the business of insurance or securities shall apply to insurance or securities activities conducted on Federal land or facilities in the United States and abroad, including military installations, except to the extent that such law, regulation, or order— ‘‘(1) directly conflicts with any applicable Federal law, regulation, or authorized directive; or ‘‘(2) would not apply if such activity were con- ducted on State land. ‘‘(b) PRIMARY STATE JURISDICTION.—To the extent that multiple State laws would otherwise apply pursu- ant to subsection (a) to an insurance or securities ac- tivity of an individual or entity on Federal land or fa- cilities, the State having the primary duty to regulate such activity and the laws of which shall apply to such activity in the case of a conflict shall be— ‘‘(1) the State within which the Federal land or fa- cility is located; or ‘‘(2) if the Federal land or facility is located outside of the United States, the State in which— ‘‘(A) in the case of an individual engaged in the business of insurance, such individual has been issued a resident license; ‘‘(B) in the case of an entity engaged in the busi- ness of insurance, such entity is domiciled; ‘‘(C) in the case of an individual engaged in the offer or sale (or both) of securities, such individual is registered or required to be registered to do busi- ness or the person solicited by such individual re- sides; or ‘‘(D) in the case of an entity engaged in the offer or sale (or both) of securities, such entity is reg- istered or is required to be registered to do business or the person solicited by such entity resides. ‘‘SEC. 9. REQUIRED DEVELOPMENT OF MILITARY PERSONNEL PROTECTION STANDARDS RE- GARDING INSURANCE SALES; ADMINISTRA- TIVE COORDINATION. ‘‘(a) STATE STANDARDS.—Congress intends that— ‘‘(1) the States collectively work with the Sec- retary of Defense to ensure implementation of appro- priate standards to protect members of the Armed Forces from dishonest and predatory insurance sales practices while on a military installation of the United States (including installations located outside of the United States); and ‘‘(2) each State identify its role in promoting the standards described in paragraph (1) in a uniform manner, not later than 12 months after the date of enactment of this Act [Sept. 29, 2006]. ‘‘(b) STATE REPORT.—It is the sense of Congress that the NAIC should, after consultation with the Secretary of Defense and, not later than 12 months after the date of enactment of this Act, conduct a study to determine the extent to which the States have met the require- ment of subsection (a), and report the results of such study to the Committee on Financial Services of the House of Representatives and the Committee on Bank- ing, Housing, and Urban Affairs of the Senate. ‘‘(c) ADMINISTRATIVE COORDINATION; SENSE OF CON- GRESS.—It is the sense of the Congress that senior rep- resentatives of the Secretary of Defense, the Securities and Exchange Commission, and the NAIC should meet not less frequently than twice a year to coordinate their activities to implement this Act and monitor the enforcement of relevant regulations relating to the sale of financial products on military installations of the United States. ‘‘SEC. 10. REQUIRED DISCLOSURES REGARDING LIFE INSURANCE PRODUCTS. ‘‘(a) REQUIREMENT.—Except as provided in subsection (e), no person may sell, or offer for sale, any life insur- ance product to any member of the Armed Forces or a dependent thereof on a military installation of the United States, unless a disclosure in accordance with this section is provided to such member or dependent at the time of the sale or offer. ‘‘(b) DISCLOSURE.—A disclosure in accordance with this section is a written disclosure that— ‘‘(1) states that subsidized life insurance is avail- able to the member of the Armed Forces from the Federal Government under the Servicemembers’ Group Life Insurance program (also referred to as ‘SGLI’), under subchapter III of chapter 19 of title 38, United States Code; ‘‘(2) states the amount of insurance coverage avail- able under the SGLI program, together with the costs to the member of the Armed Forces for such cov- erage; ‘‘(3) states that the life insurance product that is the subject of the disclosure is not offered or provided by the Federal Government, and that the Federal Government has in no way sanctioned, recommended, or encouraged the sale of the life insurance product being offered; ‘‘(4) fully discloses any terms and circumstances under which amounts accumulated in a savings fund or savings feature under the life insurance product that is the subject of the disclosure may be diverted to pay, or reduced to offset, premiums due for con- tinuation of coverage under such product; ‘‘(5) states that no person has received any referral fee or incentive compensation in connection with the offer or sale of the life insurance product, unless such person is a licensed agent of the person engaged in the business of insurance that is issuing such prod- uct; ‘‘(6) is made in plain and readily understandable language and in a type font at least as large as the font used for the majority of the solicitation material used with respect to or relating to the life insurance product; and ‘‘(7) with respect to a sale or solicitation on Federal land or facilities located outside of the United States, lists the address and phone number at which con- sumer complaints are received by the State insurance commissioner for the State having the primary juris- diction and duty to regulate the sale of such life in- surance products pursuant to section 8. ‘‘(c) VOIDABILITY.—The sale of a life insurance prod- uct in violation of this section shall be voidable from its inception, at the sole option of the member of the Armed Forces, or dependent thereof, as applicable, to whom the product was sold. ‘‘(d) ENFORCEMENT.—If it is determined by a Federal or State agency, or in a final court proceeding, that Page 907 TITLE 10—ARMED FORCES § 992 any person has intentionally violated, or willfully dis- regarded the provisions of, this section, in addition to any other penalty under applicable Federal or State law, such person shall be prohibited from further en- gaging in the business of insurance with respect to em- ployees of the Federal Government on Federal land, ex- cept— ‘‘(1) with respect to existing policies; and ‘‘(2) to the extent required by the Federal Govern- ment pursuant to previous commitments. ‘‘(e) EXCEPTIONS.—This section shall not apply to any life insurance product specifically contracted by or through the Federal Government. ‘‘SEC. 11. IMPROVING LIFE INSURANCE PRODUCT STANDARDS. ‘‘(a) IN GENERAL.—It is the sense of Congress that the NAIC should, after consultation with the Secretary of Defense, and not later than 6 months after the date of enactment of this Act [Sept. 29, 2006], conduct a study and submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Rep- resentatives on— ‘‘(1) ways of improving the quality of and sale of life insurance products sold on military installations of the United States, which may include— ‘‘(A) limiting such sales authority to persons that are certified as meeting appropriate best practices procedures; and ‘‘(B) creating standards for products specifically designed to meet the particular needs of members of the Armed Forces, regardless of the sales loca- tion; and ‘‘(2) the extent to which life insurance products marketed to members of the Armed Forces comply with otherwise applicable provisions of State law. ‘‘(b) CONDITIONAL GAO REPORT.—If the NAIC does not submit the report as described in subsection (a), the Comptroller General of the United States shall— ‘‘(1) study any proposals that have been made to improve the quality of and sale of life insurance prod- ucts sold on military installations of the United States; and ‘‘(2) not later than 6 months after the expiration of the period referred to in subsection (a), submit a re- port on such proposals to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. ‘‘SEC. 12. REQUIRED REPORTING OF DISCIPLINARY ACTIONS. ‘‘(a) REPORTING BY INSURERS.—Beginning 1 year after the date of enactment of this Act [Sept. 29, 2006], no in- surer may enter into or renew a contractual relation- ship with any other person that sells or solicits the sale of any life insurance product on any military installa- tion of the United States, unless the insurer has imple- mented a system to report to the State insurance com- missioner of the State of domicile of the insurer and the State of residence of that other person— ‘‘(1) any disciplinary action taken by any Federal or State government entity with respect to sales or solicitations of life insurance products on a military installation that the insurer knows, or in the exercise of due diligence should have known, to have been taken; and ‘‘(2) any significant disciplinary action taken by the insurer with respect to sales or solicitations of life insurance products on a military installation of the United States. ‘‘(b) REPORTING BY STATES.—It is the sense of Con- gress that, not later than 1 year after the date of enact- ment of this Act, the States should collectively imple- ment a system to— ‘‘(1) receive reports of disciplinary actions taken against persons that sell or solicit the sale of any life insurance product on any military installation of the United States by insurers or Federal or State govern- ment entities with respect to such sales or solicita- tions; and ‘‘(2) disseminate such information to all other States and to the Secretary of Defense. ‘‘(c) DEFINITION.—As used in this section, the term ‘insurer’ means a person engaged in the business of in- surance. ‘‘SEC. 13. REPORTING BARRED PERSONS SELLING INSURANCE OR SECURITIES. ‘‘(a) ESTABLISHMENT.—The Secretary of Defense shall maintain a list of the name, address, and other appro- priate information relating to persons engaged in the business of securities or insurance that have been barred or otherwise limited in any manner that is not generally applicable to all such type of persons, from any or all military installations of the United States, or that have engaged in any transaction that is prohib- ited by this Act. ‘‘(b) NOTICE AND ACCESS.—The Secretary of Defense shall ensure that— ‘‘(1) the appropriate Federal and State agencies re- sponsible for securities and insurance regulation are promptly notified upon the inclusion in or removal from the list required by subsection (a) of a person under the jurisdiction of one or more of such agen- cies; and ‘‘(2) the list is kept current and easily accessible— ‘‘(A) for use by such agencies; and ‘‘(B) for purposes of enforcing or considering any such bar or limitation by the appropriate Federal personnel, including commanders of military in- stallations. ‘‘(c) REGULATIONS.— ‘‘(1) IN GENERAL.—The Secretary of Defense shall issue regulations in accordance with this subsection to provide for the establishment and maintenance of the list required by this section, including appro- priate due process considerations. ‘‘(2) TIMING.— ‘‘(A) PROPOSED REGULATIONS.—Not later than the expiration of the 60-day period beginning on the date of enactment of this Act [Sept. 29, 2006], the Secretary of Defense shall prepare and submit to the appropriate Committees of Congress a copy of the regulations required by this subsection that are proposed to be published for comment. The Sec- retary may not publish such regulations for com- ment in the Federal Register until the expiration of the 15-day period beginning on the date of such sub- mission to the appropriate Committees of Congress. ‘‘(B) FINAL REGULATIONS.—Not later than 90 days after the date of enactment of this Act, the Sec- retary of Defense shall submit to the appropriate Committees of Congress a copy of the regulations under this section to be published in final form. ‘‘(C) EFFECTIVE DATE.—Final regulations under this paragraph shall become effective 30 days after the date of their submission to the appropriate Committees of Congress under subparagraph (B). ‘‘(d) DEFINITION.—For purposes of this section, the term ‘appropriate Committees of Congress’ means— ‘‘(1) the Committee on Financial Services and the Committee on Armed Services of the House of Rep- resentatives; and ‘‘(2) the Committee on Banking, Housing, and Urban Affairs and the Committee on Armed Services of the Senate. ‘‘SEC. 14. STUDY AND REPORTS BY INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE. ‘‘(a) STUDY.—The Inspector General of the Depart- ment of Defense shall conduct a study on the impact of Department of Defense Instruction 1344.07 (as in effect on the date of enactment of this Act [Sept. 29, 2006]) and the reforms included in this Act on the quality and suitability of sales of securities and insurance products marketed or otherwise offered to members of the Armed Forces. ‘‘(b) REPORTS.—Not later than 12 months after the date of enactment of this Act, the Inspector General of the Department of Defense shall submit an initial re- port on the results of the study conducted under sub- Page 908 TITLE 10—ARMED FORCES § 993 section (a) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Fi- nancial Services of the House of Representatives, and shall submit followup reports to those committees on December 31, 2008 and December 31, 2010.’’ REQUIREMENT FOR REGULATIONS ON POLICIES AND PRO- CEDURES ON PERSONAL COMMERCIAL SOLICITATIONS ON DEPARTMENT OF DEFENSE INSTALLATIONS Pub. L. 109–163, div. A, title V, § 577(a), Jan. 6, 2006, 119 Stat. 3274, provided that: ‘‘As soon as practicable after the date of the enactment of this Act [Jan. 6, 2006], and not later than March 31, 2006, the Secretary of Defense shall prescribe regulations, or modify existing regula- tions, on the policies and procedures relating to per- sonal commercial solicitations, including the sale of life insurance and securities, on Department of Defense installations.’’ § 993. Notification of permanent reduction of siz- able numbers of members of the armed forces (a) NOTIFICATION.—The Secretary of Defense or the Secretary of the military department con- cerned shall notify Congress under subsection (b) of a plan to reduce more than 1,000 members of the armed forces assigned at a military in- stallation. In calculating the number of mem- bers to be reduced, the Secretary shall take into consideration both direct reductions and indi- rect reductions. (b) NOTICE REQUIREMENTS.—No irrevocable ac- tion may be taken to effect or implement a re- duction described under subsection (a) until— (1) the Secretary of Defense or the Secretary of the military department concerned— (A) submits to Congress a notice of the proposed reduction and the number of mili- tary and civilian personnel assignments af- fected, including reductions in base oper- ations support services and personnel to occur because of the proposed reduction; and (B) includes in the notice a justification for the reduction and an evaluation of the costs and benefits of the reduction and of the local economic, strategic, and operational consequences of the reduction; and (2) a period of 90 days expires following the day on which the notice is submitted to Con- gress. (c) EXCEPTIONS.— (1) BASE CLOSURE PROCESS.—Subsections (a) and (b) do not apply in the case of the realign- ment of a military installation pursuant to a base closure law. (2) NATIONAL SECURITY OR EMERGENCY.—Sub- sections (a) and (b) do not apply if the Presi- dent certifies to Congress that the reduction in military personnel at a military installa- tion must be implemented for reasons of na- tional security or a military emergency. (d) DEFINITIONS.—In this section: (1) The term ‘‘indirect reduction’’ means subsequent planned reductions or relocations in base operations support services and per- sonnel able to occur due to the direct reduc- tions. (2) The term ‘‘military installation’’ means a base, camp, post, station, yard, center, homeport facility for any ship, or other activ- ity under the jurisdiction of the Department of Defense, including any leased facility, which is located within any of the several States, the District of Columbia, the Common- wealth of Puerto Rico, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or Guam. Such term does not include any facility used pri- marily for civil works, rivers and harbors projects, or flood control projects. (Added Pub. L. 112–81, div. B, title XXVIII, § 2864(a), Dec. 31, 2011, 125 Stat. 1702; amended Pub. L. 112–239, div. B, title XXVIII, § 2851, Jan. 2, 2013, 126 Stat. 2159.) Editorial Notes AMENDMENTS 2013—Subsec. (a). Pub. L. 112–239, § 2851(a), inserted at end ‘‘In calculating the number of members to be re- duced, the Secretary shall take into consideration both direct reductions and indirect reductions.’’ Subsec. (b)(1) to (3). Pub. L. 112–239, § 2851(b), added pars. (1) and (2) and struck out former pars. (1) to (3), which read as follows: ‘‘(1) the Secretary of Defense or the Secretary of the military department concerned notifies the Commit- tees on Armed Services of the Senate and the House of Representatives of the proposed reduction and the number of personnel assignments affected; ‘‘(2) submits a justification for the reduction and an evaluation of the local strategic and operational im- pact of such reduction; and ‘‘(3) a period of 21 days has expired following submis- sion of the notice and evaluation required under this subsection, or if sooner, a period of 14 days has expired following the date on which an electronic version of the notice and justification has been submitted to such committees.’’ Subsec. (d). Pub. L. 112–239, § 2851(c), added subsec. (d). Statutory Notes and Related Subsidiaries SPECIAL OPERATIONS FORCE STRUCTURE Pub. L. 118–31, div. A, title X, § 1075, Dec. 22, 2023, 137 Stat. 410, provided that: ‘‘(a) REPORT.—Not later than 90 days after the date of the enactment of this Act [Dec. 22, 2023], the Secretary of Defense shall submit to the congressional defense committees [Committees on Armed Services and Ap- propriations of the Senate and the House of Represent- atives] a report containing an assessment of the opti- mal force structure for special operations forces. Such report shall include— ‘‘(1) a description of the role of special operations forces in implementing the most recent national de- fense strategy under section 113(g) of title 10, United States Code; ‘‘(2) a detailed accounting of the demand for special operations forces by the geographic combatant com- mands; ‘‘(3) an assessment of current and projected capa- bilities and capacities of the general purpose forces of the United States Armed Forces, including forces that enable special operations, that could affect force structure capability and capacity requirements of special operations forces; ‘‘(4) an assessment of the size, composition, and or- ganizational structure of the special operations com- mand headquarters of each of the Armed Forces and subordinate headquarters elements; ‘‘(5) an assessment of the adequacy of special oper- ations force structure for meeting the goals of the National Military Strategy under section 153(b) of title 10, United States Code; ‘‘(6) a description of the role of special operations forces in supporting the Joint Concept for Competing; and