(6) Field demonstrations In carrying out the program, the Administrator shall initiate or cause to be initiated at least 10 field demonstration projects of alternative or innovative treatment technologies at sites at which a response may be undertaken under section 9604 of this title, in fiscal year 1987 and each of the succeeding three fiscal years. If the Administrator determines that 10 field demonstration projects under this subsection cannot be initiated consistent with the criteria set forth in paragraph (7) in any of such fiscal years, the Administrator shall transmit to the appropriate committees of Congress a report explaining the reasons for his inability to conduct such demonstration projects. (7) Criteria In selecting technologies to be demonstrated under this subsection, the Administrator shall, consistent with the protection of human health and the environment, consider each of the following criteria: (A) The potential for contributing to solutions to those waste problems which pose the greatest threat to human health, which cannot be adequately controlled under present technologies, or which otherwise pose significant management difficulties. (B) The availability of technologies which have been sufficiently developed for field demonstration and which are likely to be cost-effective and reliable. (C) The availability and suitability of sites for demonstrating such technologies, taking into account the physical, biological, chemical, and geological characteristics of the sites, the extent and type of contamination found at the site, and the capability to conduct demonstration projects in such a manner as to assure the protection of human health and the environment. (D) The likelihood that the data to be generated from the demonstration project at the site will be applicable to other sites. (8) Technology transfer In carrying out the program, the Administrator shall conduct a technology transfer program including the development, collection, evaluation, coordination, and dissemination of information relating to the utilization of alternative or innovative treatment technologies for response actions. The Administrator shall establish and maintain a central reference library for such information. The information maintained by the Administrator shall be made available to the public, subject to the provisions of section 552 of title 5 and section 1905 of title 18, and to other Government agencies in a manner that will facilitate its dissemination; except, that upon a showing satisfactory to the Administrator by any person that any information or portion thereof obtained under this subsection by the Administrator directly or indirectly from such person, would, if made public, divulge-- (A) trade secrets; or (B) other proprietary information of such person, the Administrator shall not disclose such information and disclosure thereof shall be punishable under section 1905 of title 18. This subsection is not authority to withhold information from Congress or any committee of Congress upon the request of the chairman of such committee. (9) Training The Administrator is authorized and directed to carry out, through the Office of Technology Demonstration, a program of training and an evaluation of training needs for each of the following: (A) Training in the procedures for the handling and removal of hazardous substances for employees who handle hazardous substances. (B) Training in the management of facilities at which hazardous substances are located and in the evaluation of the hazards to human health presented by such facilities for State and local health and environment agency personnel. (10) Definition For purposes of this subsection, the term ``alternative or innovative treatment technologies'' means those technologies, including proprietary or patented methods, which permanently alter the composition of hazardous waste through chemical, biological, or physical means so as to significantly reduce the toxicity, mobility, or volume (or any combination thereof) of the hazardous waste or contaminated materials being treated. The term also includes technologies that characterize or assess the extent of contamination, the chemical and physical character of the contaminants, and the stresses imposed by the contaminants on complex ecosystems at sites. (c) Hazardous substance research The Administrator may conduct and support, through grants, cooperative agreements, and contracts, research with respect to the detection, assessment, and evaluation of the effects on and risks to human health of hazardous substances and detection of hazardous substances in the environment. The Administrator shall coordinate such research with the Secretary of Health and Human Services, acting through the advisory council established under this section, in order to avoid duplication of effort. (d) University hazardous substance research centers (1) Grant program The Administrator shall make grants to institutions of higher learning to establish and operate not fewer than 5 hazardous substance research centers in the United States. In carrying out the program under this subsection, the Administrator should seek to have established and operated 10 hazardous substance research centers in the United States. (2) Responsibilities of centers The responsibilities of each hazardous substance research center established under this subsection shall include, but not be limited to, the conduct of research and training relating to the manufacture, use, transportation, disposal, and management of hazardous substances and publication and dissemination of the results of such research. (3) Applications Any institution of higher learning interested in receiving a grant under this subsection shall submit to the Administrator an application in such form and containing such information as the Administrator may require by regulation. (4) Selection criteria The Administrator shall select recipients of grants under this subsection on the basis of the following criteria: (A) The hazardous substance research center shall be located in a State which is representative of the needs of the region in which such State is located for improved hazardous waste management. (B) The grant recipient shall be located in an area which has experienced problems with hazardous substance management. (C) There is available to the grant recipient for carrying out this subsection demonstrated research resources. (D) The capability of the grant recipient to provide leadership in making national and regional contributions to the solution of both long-range and immediate hazardous substance management problems. (E) The grant recipient shall make a commitment to support ongoing hazardous substance research programs with budgeted institutional funds of at least $100,000 per year. (F) The grant recipient shall have an interdisciplinary staff with demonstrated expertise in hazardous substance management and research. (G) The grant recipient shall have a demonstrated ability to disseminate results of hazardous substance research and educational programs through an interdisciplinary continuing education program. (H) The projects which the grant recipient proposes to carry out under the grant are necessary and appropriate. (5) Maintenance of effort No grant may be made under this subsection in any fiscal year unless the recipient of such grant enters into such agreements with the Administrator as the Administrator may require to ensure that such recipient will maintain its aggregate expenditures from all other sources for establishing and operating a regional hazardous substance research center and related research activities at or above the average level of such expenditures in its 2 fiscal years preceding October 17, 1986. (6) Federal share The Federal share of a grant under this subsection shall not exceed 80 percent of the costs of establishing and operating the regional hazardous substance research center and related research activities carried out by the grant recipient. (7) Limitation on use of funds No funds made available to carry out this subsection shall be used for acquisition of real property (including buildings) or construction of any building. (8) Administration through the Office of the Administrator Administrative responsibility for carrying out this subsection shall be in the Office of the Administrator. (9) Equitable distribution of funds The Administrator shall allocate funds made available to carry out this subsection equitably among the regions of the United States. (10) Technology transfer activities Not less than five percent of the funds made available to carry out this subsection for any fiscal year shall be available to carry out technology transfer activities. (e) Report to Congress At the time of the submission of the annual budget request to Congress, the Administrator shall submit to the appropriate committees of the House of Representatives and the Senate and to the advisory council established under subsection (a) of this section, a report on the progress of the research, development, and demonstration program authorized by subsection (b) of this section, including an evaluation of each demonstration project completed in the preceding fiscal year, findings with respect to the efficacy of such demonstrated technologies in achieving permanent and significant reductions in risk from hazardous wastes, the costs of such demonstration projects, and the potential applicability of, and projected costs for, such technologies at other hazardous substance sites. (f) Saving provision Nothing in this section shall be construed to affect the provisions of the Solid Waste Disposal Act [42 U.S.C. 6901 et seq.]. (g) Small business participation The Administrator shall ensure, to the maximum extent practicable, an adequate opportunity for small business participation in the program established by subsection (b) of this section. (Pub. L. 96-510, title III, Sec. 311, as added Pub. L. 99-499, title II, Sec. 209(b), Oct. 17, 1986, 100 Stat. 1708; amended Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.) References in Text The Public Health Service Act, referred to in subsec. (a)(4), is act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title IV of the Public Health Service Act is classified generally to subchapter III (Sec. 281 et seq.) of chapter 6A of this title. For complete classification of this Act to the Code, see Short Title note set out under section 201 of this title and Tables. The Solid Waste Disposal Act, referred to in subsec. (f), is title II of Pub. L. 89-272, Oct. 20, 1965, 79 Stat. 997, as amended generally by Pub. L. 94-580, Sec. 2, Oct. 21, 1976, 90 Stat. 2795, which is classified generally to chapter 82 (Sec. 6901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6901 of this title and Tables. Amendments 1986--Subsec. (b)(3). Pub. L. 99-514 substituted ``Internal Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for purposes of codification was translated as ``title 26'' thus requiring no change in text. Gulf Coast Hazardous Substance Research, Development, and Demonstration Center Section 118(l) of Pub. L. 99-499 provided that: ``(1) Establishment of hazardous substance research, development, and demonstration center.--The Administrator shall establish a hazardous substance research, development, and demonstration center (hereinafter in this subsection referred to as the `Center') for the purpose of conducting research to aid in more effective hazardous substance response and waste management throughout the Gulf Coast. ``(2) Purposes of the center.--The Center shall carry out a program of research, evaluation, testing, development, and demonstration of alternative or innovative technologies which may be utilized in response actions or in normal handling of hazardous wastes to achieve better protection of human health and the environment. ``(3) Operation of center.--(A) For purposes of operating the Center, the Administrator is authorized to enter into contracts and cooperative agreements with, and make grants to, a university related institute involved with the improvement of waste management. Such institute shall be located in Jefferson County, Texas. ``(B) The Center shall be authorized to make grants, accept contributions, and enter into agreements with universities located in the States of Texas, Louisiana, Mississippi, Alabama, and Florida in order to carry out the purposes of the Center. ``(4) Authorization of appropriations.--There are authorized to be appropriated to the Administrator for purposes of carrying out this subsection for fiscal years beginning after September 30, 1986, not more than $5,000,000.'' Pacific Northwest Hazardous Substance Research, Development, and Demonstration Center Section 118(o) of Pub. L. 99-499 provided that: ``(1) Establishment.--The Administrator shall establish a hazardous substance research, development, and demonstration center (hereinafter in this subsection referred to as the `Center') for the purpose of conducting research to aid in more effective hazardous substance response in the Pacific Northwest. ``(2) Purposes of center.--The Center shall carry out a program of research, evaluation, testing, development, and demonstration of alternative or innovative technologies which may be utilized in response actions to achieve more permanent protection of human health and welfare and the environment. ``(3) Operation of center.-- ``(A) Nonprofit entity.--For the purposes of operating the Center, the Administrator is authorized to enter into contracts and cooperative agreements with, and make grants to, a nonprofit private entity as defined in section 201(i) of Public Law 96-517 [probably means section 201(i) of Title 35, Patents, which was enacted by section 6(a) of Pub. L. 96-517, Dec. 12, 1980, 94 Stat. 3020] which entity shall agree to provide the basic technical and management personnel. Such nonprofit private entity shall also agree to provide at least two permanent research facilities, one of which shall be located in Benton County, Washington, and one of which shall be located in Clallam County, Washington. ``(B) Authorities.--The Center shall be authorized to make grants, accept contributions, and enter into agreements with universities located in the States of Washington, Oregon, Idaho, and Montana in order to carry out the purposes of the Center. ``(4) Hazardous waste research at the hanford site.-- ``(A) Interagency agreements.--The Administrator and the Secretary of Energy are authorized to enter into interagency agreements with one another for the purpose of providing for research, evaluation, testing, development, and demonstration into alternative or innovative technologies to characterize and assess the nature and extent of hazardous waste (including radioactive mixed waste) contamination at the Hanford site, in the State of Washington. ``(B) Funding.--There is authorized to be appropriated to the Secretary of Energy for purposes of carrying out this paragraph for fiscal years beginning after September 30, 1986, not more than $5,000,000. All sums appropriated under this subparagraph shall be provided to the Administrator by the Secretary of Energy, pursuant to the interagency agreement entered into under subparagraph (A), for the purpose of the Administrator entering into contracts and cooperative agreements with, and making grants to, the Center in order to carry out the research, evaluation, testing, development, and demonstration described in paragraph (1). ``(5) Authorization of appropriations.--There is authorized to be appropriated to the Administrator for purposes of carrying out this subsection (other than paragraph (4)) for fiscal years beginning after September 30, 1986, not more than $5,000,000.'' Congressional Statement of Purpose Section 209(a) of Pub. L. 99-499 provided that: ``The purposes of this section [enacting this section] are as follows: ``(1) To establish a comprehensive and coordinated Federal program of research, development, demonstration, and training for the purpose of promoting the development of alternative and innovative treatment technologies that can be used in response actions under the CERCLA program, to provide incentives for the development and use of such technologies, and to improve the scientific capability to assess, detect and evaluate the effects on and risks to human health from hazardous substances. ``(2) To establish a basic university research and education program within the Department of Health and Human Services and a research, demonstration, and training program within the Environmental Protection Agency. ``(3) To reserve certain funds from the Hazardous Substance Trust Fund to support a basic research program within the Department of Health and Human Services, and an applied and developmental research program within the Environmental Protection Agency. ``(4) To enhance the Environmental Protection Agency's internal research capabilities related to CERCLA activities, including site assessment and technology evaluation. ``(5) To provide incentives for the development of alternative and innovative treatment technologies in a manner that supplements or coordinates with, but does not compete with or duplicate, private sector development of such technologies.'' Termination of Advisory Councils Advisory councils established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a council established by the President or an officer of the Federal Government, such council is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a council established by the Congress, its duration is otherwise provided by law. See sections 3(2) and 14 of Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to Title 5, Government Organization and Employees. Section Referred to in Other Sections This section is referred to in sections 9611, 9619, 9659 of this title; title 10 section 2702. Sec. 9660a. Grant program (1) Grant purposes Grants for the training and education of workers who are or may be engaged in activities related to hazardous waste removal or containment or emergency response may be made under this section. (2) Administration Grants under this section shall be administered by the National Institute of Environmental Health Sciences. (3) Grant recipients Grants shall be awarded to nonprofit organizations which demonstrate experience in implementing and operating worker health and safety training and education programs and demonstrate the ability to reach and involve in training programs target populations of workers who are or will be engaged in hazardous waste removal or containment or emergency response operations. (Pub. L. 99-499, title I, Sec. 126(g), Oct. 17, 1986, 100 Stat. 1692.) Codification Section was enacted as part of the Superfund Amendments and Reauthorization Act of 1986, and not as part of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 which comprises this chapter. Section Referred to in Other Sections This section is referred to in sections 7274d, 9611, 9619 of this title; title 49 section 5115. Sec. 9661. Love Canal property acquisition (a) Acquisition of property in Emergency Declaration Area The Administrator of the Environmental Protection Agency (hereinafter referred to as the ``Administrator'') may make grants not to exceed $2,500,000 to the State of New York (or to any duly constituted public agency or authority thereof) for purposes of acquisition of private property in the Love Canal Emergency Declaration Area. Such acquisition shall include (but shall not be limited to) all private property within the Emergency Declaration Area, including non- owner occupied residential properties, commercial, industrial, public, religious, non-profit, and vacant properties. (b) Procedures for acquisition No property shall be acquired pursuant to this section unless the property owner voluntarily agrees to such acquisition. Compensation for any property acquired pursuant to this section shall be based upon the fair market value of the property as it existed prior to the emergency declaration. Valuation procedures for property acquired with funds provided under this section shall be in accordance with those set forth in the agreement entered into between the New York State Disaster Preparedness Commission and the Love Canal Revitalization Agency on October 9, 1980. (c) State ownership The Administrator shall not provide any funds under this section for the acquisition of any properties pursuant to this section unless a public agency or authority of the State of New York first enters into a cooperative agreement with the Administrator providing assurances deemed adequate by the Administrator that the State or an agency created under the laws of the State shall take title to the properties to be so acquired. (d) Maintenance of property The Administrator shall enter into a cooperative agreement with an appropriate public agency or authority of the State of New York under which the Administrator shall maintain or arrange for the maintenance of all properties within the Emergency Declaration Area that have been acquired by any public agency or authority of the State. Ninety (90) percent of the costs of such maintenance shall be paid by the Administrator. The remaining portion of such costs shall be paid by the State (unless a credit is available under section 9604(c) of this title). The Administrator is authorized, in his discretion, to provide technical assistance to any public agency or authority of the State of New York in order to implement the recommendations of the habitability and land-use study in order to put the land within the Emergency Declaration Area to its best use. (e) Habitability and land use study The Administrator shall conduct or cause to be conducted a habitability and land-use study. The study shall-- (1) assess the risks associated with inhabiting of the Love Canal Emergency Declaration Area; (2) compare the level of hazardous waste contamination in that Area to that present in other comparable communities; and (3) assess the potential uses of the land within the Emergency Declaration Area, including but not limited to residential, industrial, commercial and recreational, and the risks associated with such potential uses. The Administrator shall publish the findings of such study and shall work with the State of New York to develop recommendations based upon the results of such study. (f) Funding For purposes of section 9611 of this title [and 9631(c) \1\ of this title], the expenditures authorized by this section shall be treated as a cost specified in section 9611(c) of this title. --------------------------------------------------------------------------- \1\ See References in Text note below. --------------------------------------------------------------------------- (g) Response The provisions of this section shall not affect the implementation of other response actions within the Emergency Declaration Area that the Administrator has determined (before October 17, 1986) to be necessary to protect the public health or welfare or the environment. (h) Definitions For purposes of this section: (1) Emergency Declaration Area The terms ``Emergency Declaration Area'' and ``Love Canal Emergency Declaration Area'' mean the Emergency Declaration Area as defined in section 950, paragraph (2) of the General Municipal Law of the State of New York, Chapter 259, Laws of 1980, as in effect on October 17, 1986. (2) Private property As used in subsection (a) of this section, the term ``private property'' means all property which is not owned by a department, agency, or instrumentality of-- (A) the United States, or (B) the State of New York (or any public agency or authority thereof). (Pub. L. 96-510, title III, Sec. 312, as added Pub. L. 99-499, title II, Sec. 213(b), Oct. 17, 1986, 100 Stat. 1727.) References in Text Section 9631 of this title, referred to in subsec. (f), was repealed by Pub. L. 99-499, title V, Sec. 517(c)(1), Oct. 17, 1986, 100 Stat. 1774. Love Canal Property Acquisition; Congressional Findings Section 213(a) of Pub. L. 99-499 provided that: ``(1) The area known as Love Canal located in the city of Niagara Falls and the town of Wheatfield, New York, was the first toxic waste site to receive national attention. As a result of that attention Congress investigated the problems associated with toxic waste sites and enacted CERCLA [Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.)] to deal with these problems. ``(2) Because Love Canal came to the Nation's attention prior to the passage of CERCLA and because the fund under CERCLA was not available to compensate for all of the hardships endured by the citizens in the area, Congress has determined that special provisions are required. These provisions do not affect the lawfulness, implementation, or selection of any other response actions at Love Canal or at any other facilities.'' Coordination of Titles I to IV of Pub. L. 99-499 Any provision of titles I to IV of Pub. L. 99-499, imposing any tax, premium, or fee; establishing any trust fund; or authorizing expenditures from any trust fund, to have no force or effect, see section 531 of Pub. L. 99-499, set out as a note under section 1 of Title 26, Internal Revenue Code. Sec. 9662. Limitation on contract and borrowing authority Any authority provided by this Act, including any amendment made by this Act, to enter into contracts to obligate the United States or to incur indebtedness for the repayment of which the United States is liable shall be effective only to such extent or in such amounts as are provided in appropriation Acts. (Pub. L. 99-499, Sec. 3, Oct. 17, 1986, 100 Stat. 1614.) References in Text This Act, referred to in text, is Pub. L. 99-499, Oct. 17, 1986, 100 Stat. 1613, as amended, known as the Superfund Amendments and Reauthorization Act of 1986. For complete classification of this Act to the Code, see Short Title of 1986 Amendment note set out under section 9601 of this title and Tables. Codification Section was enacted as part of the Superfund Amendments and Reauthorization Act of 1986, and not as part of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 which comprises this chapter. Section Referred to in Other Sections This section is referred to in section 9619 of this title. SUBCHAPTER IV--POLLUTION INSURANCE Sec. 9671. Definitions As used in this subchapter-- (1) Insurance The term ``insurance'' means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under applicable State or Federal law. (2) Pollution liability The term ``pollution liability'' means liability for injuries arising from the release of hazardous substances or pollutants or contaminants. (3) Risk retention group The term ``risk retention group'' means any corporation or other limited liability association taxable as a corporation, or as an insurance company, formed under the laws of any State-- (A) whose primary activity consists of assuming and spreading all, or any portion, of the pollution liability of its group members; (B) which is organized for the primary purpose of conducting the activity described under subparagraph (A); (C) which is chartered or licensed as an insurance company and authorized to engage in the business of insurance under the laws of any State; and (D) which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person. (4) Purchasing group The term ``purchasing group'' means any group of persons which has as one of its purposes the purchase of pollution liability insurance on a group basis. (5) State The term ``State'' means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Marianas, and any other territory or possession over which the United States has jurisdiction. (Pub. L. 96-510, title IV, Sec. 401, as added Pub. L. 99-499, title II, Sec. 210(a), formerly Sec. 210, Oct. 17, 1986, 100 Stat. 1716; renumbered Sec. 210(a), Pub. L. 99-563, Sec. 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) State Powers and Authorities Under Risk Retention Amendments of 1986 Section 210(b) of Pub. L. 99-499, as added by Pub. L. 99-563, Sec. 11(c)(1), Oct. 27, 1986, 100 Stat. 3177, provided that: ``For purposes of subsection (a) of this section [enacting this subchapter], the powers and authorities of States addressed by the Risk Retention Amendments of 1986 [Pub. L. 99-563, see Short Title of 1986 Amendment note set out under section 3901 of Title 15, Commerce and Trade] are in addition to those of this Act [see Short Title of 1986 Amendment note set out under section 9601 of this title].'' Sec. 9672. State laws; scope of subchapter (a) State laws Nothing in this subchapter shall be construed to affect either the tort law or the law governing the interpretation of insurance contracts of any State. The definitions of pollution liability and pollution liability insurance under any State law shall not be applied for the purposes of this subchapter, including recognition or qualification of risk retention groups or purchasing groups. (b) Scope of subchapter The authority to offer or to provide insurance under this subchapter shall be limited to coverage of pollution liability risks and this subchapter does not authorize a risk retention group or purchasing group to provide coverage of any other line of insurance. (Pub. L. 96-510, title IV, Sec. 402, as added Pub. L. 99-499, title II, Sec. 210(a), formerly Sec. 210, Oct. 17, 1986, 100 Stat. 1716; renumbered Sec. 210(a), Pub. L. 99-563, Sec. 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) Sec. 9673. Risk retention groups (a) Exemption Except as provided in this section, a risk retention group shall be exempt from the following: (1) A State law, rule, or order which makes unlawful, or regulates, directly or indirectly, the operation of a risk retention group. (2) A State law, rule, or order which requires or permits a risk retention group to participate in any insurance insolvency guaranty association to which an insurer licensed in the State is required to belong. (3) A State law, rule, or order which requires any insurance policy issued to a risk retention group or any member of the group to be countersigned by an insurance agent or broker residing in the State. (4) A State law, rule, or order which otherwise discriminates against a risk retention group or any of its members. (b) Exceptions (1) State laws generally applicable Nothing in subsection (a) of this section shall be construed to affect the applicability of State laws generally applicable to persons or corporations. The State in which a risk retention group is chartered may regulate the formation and operation of the group. (2) State regulations not subject to exemption Subsection (a) of this section shall not apply to any State law which requires a risk retention group to do any of the following: (A) Comply with the unfair claim settlement practices law of the State. (B) Pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on admitted insurers and surplus line insurers, brokers, or policyholders under the laws of the State. (C) Participate, on a nondiscriminatory basis, in any mechanism established or authorized under the law of the State for the equitable apportionment among insurers of pollution liability insurance losses and expenses incurred on policies written through such mechanism. (D) Submit to the appropriate authority reports and other information required of licensed insurers under the laws of a State relating solely to pollution liability insurance losses and expenses. (E) Register with and designate the State insurance commissioner as its agent solely for the purpose of receiving service of legal documents or process. (F) Furnish, upon request, such commissioner a copy of any financial report submitted by the risk retention group to the commissioner of the chartering or licensing jurisdiction. (G) Submit to an examination by the State insurance commissioner in any State in which the group is doing business to determine the group's financial condition, if-- (i) the commissioner has reason to believe the risk retention group is in a financially impaired condition; and (ii) the commissioner of the jurisdiction in which the group is chartered has not begun or has refused to initiate an examination of the group. (H) Comply with a lawful order issued in a delinquency proceeding commenced by the State insurance commissioner if the commissioner of the jurisdiction in which the group is chartered has failed to initiate such a proceeding after notice of a finding of financial impairment under subparagraph (G). (c) Application of exemptions The exemptions specified in subsection (a) of this section apply to-- (1) pollution liability insurance coverage provided by a risk retention group for-- (A) such group; or (B) any person who is a member of such group; (2) the sale of pollution liability insurance coverage for a risk retention group; and (3) the provision of insurance related services or management services for a risk retention group or any member of such a group. (d) Agents or brokers A State may require that a person acting, or offering to act, as an agent or broker for a risk retention group obtain a license from that State, except that a State may not impose any qualification or requirement which discriminates against a nonresident agent or broker. (Pub. L. 96-510, title IV, Sec. 403, as added Pub. L. 99-499, title II, Sec. 210(a), formerly Sec. 210, Oct. 17, 1986, 100 Stat. 1717; renumbered Sec. 210(a), Pub. L. 99-563, Sec. 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) Sec. 9674. Purchasing groups (a) Exemption Except as provided in this section, a purchasing group is exempt from the following: (1) A State law, rule, or order which prohibits the establishment of a purchasing group. (2) A State law, rule, or order which makes it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its member, advantages, based on their loss and expense experience, not afforded to other persons with respect to rates, policy forms, coverages, or other matters. (3) A State law, rule, or order which prohibits a purchasing group or its members from purchasing insurance on the group basis described in paragraph (2) of this subsection. (4) A State law, rule, or order which prohibits a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time. (5) A State law, rule, or order which requires that a purchasing group must have a minimum number of members, common ownership or affiliation, or a certain legal form. (6) A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis. (7) A State law, rule, or order which requires that any insurance policy issued to a purchasing group or any members of the group be countersigned by an insurance agent or broker residing in that State. (8) A State law, rule, or order which otherwise discriminate \1\ against a purchasing group or any of its members. --------------------------------------------------------------------------- \1\ So in original. Probably should be ``discriminates''. --------------------------------------------------------------------------- (b) Application of exemptions The exemptions specified in subsection (a) of this section apply to the following: (1) Pollution liability insurance, and comprehensive general liability insurance which includes this coverage, provided to-- (A) a purchasing group; or (B) any person who is a member of a purchasing group. (2) The sale of any one of the following to a purchasing group or a member of the group: (A) Pollution liability insurance and comprehensive general liability coverage. (B) Insurance related services. (C) Management services. (c) Agents or brokers A State may require that a person acting, or offering to act, as an agent or broker for a purchasing group obtain a license from that State, except that a State may not impose any qualification or requirement which discriminates against a nonresident agent or broker. (Pub. L. 96-510, title IV, Sec. 404, as added Pub. L. 99-499, title II, Sec. 210(a), formerly Sec. 210, Oct. 17, 1986, 100 Stat. 1718; renumbered Sec. 210(a), Pub. L. 99-563, Sec. 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) Sec. 9675. Applicability of securities laws (a) Ownership interests The ownership interests of members of a risk retention group shall be considered to be-- (1) exempted securities for purposes of section 77e of title 15 and for purposes of section 78l of title 15; and (2) securities for purposes of the provisions of section 77q of title 15 and the provisions of section 78j of title 15. (b) Investment Company Act A risk retention group shall not be considered to be an investment company for purposes of the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.). (c) Blue sky law The ownership interests of members in a risk retention group shall not be considered securities for purposes of any State blue sky law. (Pub. L. 96-510, title IV, Sec. 405, as added Pub. L. 99-499, title II, Sec. 210(a), formerly Sec. 210, Oct. 17, 1986, 100 Stat. 1719; renumbered Sec. 210(a), Pub. L. 99-563, Sec. 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) References in Text The Investment Company Act of 1940, referred to in subsec. (b), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended, which is classified generally to subchapter I (Sec. 80a-1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a-51 of Title 15 and Tables.

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