[Congressional Record Volume 168, Number 158 (Thursday, September 29, 2022)]
[Senate]
[Pages S5690-S5691]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 6146. Ms. SMITH submitted an amendment intended to be proposed to 
amendment SA 5499 submitted by Mr. Reed (for himself and Mr. Inhofe) 
and intended to be proposed to the bill H.R. 7900, to authorize 
appropriations for fiscal year 2023 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. __. PARITY FOR REGISTERED INDEX-LINKED ANNUITIES 
                   REGARDING REGISTRATION RULES.

       (a) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the 
     Securities and Exchange Commission.
       (2) Investment company.--The term ``investment company'' 
     has the meaning given the term in section 3 of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-3).
       (3) Market value adjustment.--The term ``market value 
     adjustment'' means, with respect to a registered index-linked 
     annuity--
       (A) an adjustment to the value of that annuity based on 
     calculations using a predetermined formula; or
       (B) a change in interest rates (or other factor, as 
     determined by the Commission) that applies to that annuity 
     after an early withdrawal or contract discontinuance.
       (4) Purchaser.--The term ``purchaser'' means a purchaser of 
     a registered index-linked annuity.
       (5) Registered index-linked annuity.--The term ``registered 
     index-linked annuity'' means an annuity--
       (A) that is deemed to be a security;
       (B) that is required to be registered with the Commission;
       (C) that is issued by an insurance company that is subject 
     to the supervision of the insurance commissioner of the 
     applicable State;
       (D) that is not issued by an investment company; and
       (E) the returns of which--
       (i) are based on the performance of a specified benchmark 
     index or rate; and
       (ii) may be subject to a market value adjustment if amounts 
     are withdrawn before the end of the period during which that 
     market value adjustment applies.
       (6) Security.--The term ``security'' has the meaning given 
     the term in section 2(a) of the Securities Act of 1933 (15 
     U.S.C. 77b(a)).
       (b) Rules.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Commission shall propose, and, not 
     later than 18 months after the date of enactment of this Act, 
     the Commission shall prepare and finalize, new or amended 
     rules, as appropriate, to establish a new form in accordance 
     with paragraph (2) on which an issuer of a registered index-
     linked annuity may register that registered index-linked 
     annuity, subject to conditions the Commission determines 
     appropriate.
       (2) Design of form.--In developing the form to be 
     established under paragraph (1), the Commission shall--
       (A) design the form to ensure that a purchaser using the 
     form receives the information necessary to make knowledgeable 
     decisions, taking into account--
       (i) the availability of information;
       (ii) the knowledge and sophistication of that class of 
     purchasers;
       (iii) the complexity of the registered index-linked 
     annuity; and
       (iv) any other factor the Commission determines 
     appropriate;
       (B) engage in investor testing; and
       (C) incorporate the results of the testing required under 
     subparagraph (B) in the design of the form, with the goal of 
     ensuring that key information is conveyed in terms that a 
     purchaser is able to understand.

[[Page S5691]]

       (c) Treatment if Rules Not Prepared and Finalized in a 
     Timely Manner.--
       (1) In general.--If, as of the date that is 18 months after 
     the date of enactment of this Act, the Commission has failed 
     to prepare and finalize the rules required under subsection 
     (b)(1), any registered index-linked annuity may be registered 
     on the form described in section 239.17b of title 17, Code of 
     Federal Regulations, or any successor regulation.
       (2) Preparation.--A registration described in paragraph (1) 
     shall be prepared pursuant to applicable provisions of the 
     form described in that paragraph.
       (d) Rules of Construction.--Nothing in this section may be 
     construed to--
       (1) limit the authority of the Commission to determine the 
     information to be requested in the form described in 
     subsection (b); or
       (2) preempt any State law, regulation, rule, or order.
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