114 HR 26 ENR: To extend the termination date of the Terrorism Insurance Program established under the Terrorism Risk Insurance Act of 2002, and for other purposes.House Bill26114 HR 26 ENR114hr26enr114 H.R. 26 ENRUnited States House of RepresentativesUnited States Government Publishing Officetext/xmlENPursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.ENRGPO Locator to USLM Converter 3.11.8;Stage2.202201272023-01-051141publicH. R.26One Hundred Fourteenth Congress of the United States of AmericaA T T H E F I R S T S E S S I O NBegun and held at the City of Washington on Tuesday, the sixth day of January, two thousand and fifteenAn ActTo extend the termination date of the Terrorism Insurance Program established under the Terrorism Risk Insurance Act of 2002, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.(a) Short Title.—This Act may be cited as the “Terrorism Risk Insurance Program Reauthorization Act of 2015”.(b) Table of Contents.—The table of contents for this Act is as follows:
Sec. 1. TITLE I—Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. Sec. 106. Sec. 107. Sec. 108. Sec. 109. Sec. 110. Sec. 111. Sec. 112. TITLE II—Sec. 201. Sec. 202. TITLE III—Sec. 301. Sec. 302. Sec. 303. <num value="I">TITLE I—</num><heading>EXTENSION OF TERRORISM INSURANCE PROGRAM</heading>
<section id="d92427e201" identifier="/us/bill/114/hr/26/tI/s101" role="instruction" style="-uslm-lc:I650143"><num value="101">SEC. 101. </num><heading>EXTENSION OF TERRORISM INSURANCE PROGRAM.</heading><content style="-uslm-lc:I650120"> Section 108(a) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>December 31, 2014</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>December 31, 2020</quotedText>”.</content></section>
<section id="d92427e220" identifier="/us/bill/114/hr/26/tI/s102" role="instruction" style="-uslm-lc:I650143"><num value="102">SEC. 102. </num><heading>FEDERAL SHARE.</heading><content style="-uslm-lc:I650120"> Section 103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>and beginning on January 1, 2016, shall decrease by 1 percentage point per calendar year until equal to 80 percent</quotedText>” after “<quotedText>85 percent</quotedText>”.</content></section>
<section id="d92427e236" identifier="/us/bill/114/hr/26/tI/s103" role="instruction" style="-uslm-lc:I650143"><num value="103">SEC. 103. </num><heading>PROGRAM TRIGGER.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> Subparagraph (B) of section 103(e)(1) (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction> in the matter preceding clause (i)—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e248" identifier="/us/bill/114/hr/26/tI/s103/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>a certified act</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>certified acts</quotedText>”;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e259" identifier="/us/bill/114/hr/26/tI/s103/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>such certified act</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>such certified acts</quotedText>”; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e270" identifier="/us/bill/114/hr/26/tI/s103/3" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">(3) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>exceed</quotedText>” and all that follows through clause (ii) and <amendingAction type="insert">inserting</amendingAction> the following: <quotedContent>“exceed—<clause class="indentUp3 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>$100,000,000, with respect to such insured losses occurring in calendar year 2015;</content></clause><clause class="indentUp3 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>$120,000,000, with respect to such insured losses occurring in calendar year 2016;</content></clause><clause class="indentUp3 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>$140,000,000, with respect to such insured losses occurring in calendar year 2017;</content></clause><clause class="indentUp3 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iv">“(iv) </num><content>$160,000,000, with respect to such insured losses occurring in calendar year 2018;</content></clause><clause class="indentUp3 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="v">“(v) </num><content>$180,000,000, with respect to such insured losses occurring in calendar year 2019; and</content></clause><clause class="indentUp3 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="vi">“(vi) </num><content>$200,000,000, with respect to such insured losses occurring in calendar year 2020 and any calendar year thereafter.”</content></clause></quotedContent>.</content></paragraph></section>
<section id="d92427e309" identifier="/us/bill/114/hr/26/tI/s104" role="instruction" style="-uslm-lc:I650143"><num value="104">SEC. 104. </num><heading>RECOUPMENT OF FEDERAL SHARE OF COMPENSATION UNDER THE PROGRAM.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> Section 103(e) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e321" identifier="/us/bill/114/hr/26/tI/s104/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><content>by <amendingAction type="amend">amending</amendingAction> paragraph (6) to read as follows:<quotedContent><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="6">“(6) </num><heading><inline class="smallCaps">Insurance marketplace aggregate retention amount</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>For purposes of paragraph (7), the insurance marketplace aggregate retention amount shall be the lesser of—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>$27,500,000,000, as such amount is revised pursuant to this paragraph; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the aggregate amount, for all insurers, of insured losses during such calendar year.</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Revision of insurance marketplace aggregate retention amount</inline>.—</heading><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><heading><inline class="smallCaps">Phase-in</inline>.—</heading><content>Beginning in the calendar year of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, the amount set forth under subparagraph (A)(i) shall increase by $2,000,000,000 per calendar year until equal to $37,500,000,000.</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading><inline class="smallCaps">Further revision</inline>.—</heading><content>Beginning in the calendar year that follows the calendar year in which the amount set forth under subparagraph (A)(i) is equal to $37,500,000,000, the amount under subparagraph (A)(i) shall be revised to be the amount equal to the annual average of the sum of insurer deductibles for all insurers participating in the Program for the prior 3 calendar years, as such sum is determined by the Secretary under subparagraph (C).</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><heading><inline class="smallCaps">Rulemaking</inline>.—</heading><chapeau>Not later than 3 years after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, the Secretary shall—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>issue final rules for determining the amount of the sum described under subparagraph (B)(ii); and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>provide a timeline for public notification of such determination.”</content></clause></subparagraph></paragraph></quotedContent>; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e393" identifier="/us/bill/114/hr/26/tI/s104/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><chapeau>in paragraph (7)—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e397" identifier="/us/bill/114/hr/26/tI/s104/2/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><chapeau>in subparagraph (A)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e401" identifier="/us/bill/114/hr/26/tI/s104/2/A/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><content>in the matter preceding clause (i), by <amendingAction type="delete">striking</amendingAction> “<quotedText>for each of the periods referred to in subparagraphs (A) through (E) of paragraph (6)</quotedText>”; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e409" identifier="/us/bill/114/hr/26/tI/s104/2/A/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>in clause (i), by <amendingAction type="delete">striking</amendingAction> “<quotedText>for such period</quotedText>”;</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e417" identifier="/us/bill/114/hr/26/tI/s104/2/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><content>by <amendingAction type="delete">striking</amendingAction> subparagraph (B) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent><subparagraph class="indentUp2 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading>[Reserved.]</heading><content>”</content></subparagraph></quotedContent>;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e435" identifier="/us/bill/114/hr/26/tI/s104/2/C" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">(C) </num><chapeau>in subparagraph (C)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e439" identifier="/us/bill/114/hr/26/tI/s104/2/C/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>occurring during any of the periods referred to in any of subparagraphs (A) through (E) of paragraph (6), terrorism loss risk-spreading premiums in an amount equal to 133 percent</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>, terrorism loss risk-spreading premiums in an amount equal to 140 percent</quotedText>”; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e450" identifier="/us/bill/114/hr/26/tI/s104/2/C/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>as calculated under subparagraph (A)</quotedText>” after “<quotedText>mandatory recoupment amount</quotedText>”; and</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e458" identifier="/us/bill/114/hr/26/tI/s104/2/D" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">(D) </num><chapeau>in subparagraph (E)(i)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e462" identifier="/us/bill/114/hr/26/tI/s104/2/D/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><chapeau>in subclause (I)—</chapeau><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e466" identifier="/us/bill/114/hr/26/tI/s104/2/D/i/I" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2010</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2017</quotedText>”; and</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e477" identifier="/us/bill/114/hr/26/tI/s104/2/D/i/II" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="II">(II) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2012</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2019</quotedText>”;</content></subclause></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e488" identifier="/us/bill/114/hr/26/tI/s104/2/D/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><chapeau>in subclause (II)—</chapeau><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e492" identifier="/us/bill/114/hr/26/tI/s104/2/D/ii/I" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2011</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2018</quotedText>”;</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e503" identifier="/us/bill/114/hr/26/tI/s104/2/D/ii/II" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="II">(II) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2012</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2019</quotedText>”; and</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e514" identifier="/us/bill/114/hr/26/tI/s104/2/D/ii/III" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="III">(III) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2017</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2024</quotedText>”; and</content></subclause></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e525" identifier="/us/bill/114/hr/26/tI/s104/2/D/iii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">(iii) </num><chapeau>in subclause (III)—</chapeau><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e529" identifier="/us/bill/114/hr/26/tI/s104/2/D/iii/I" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2012</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2019</quotedText>”; and</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e540" identifier="/us/bill/114/hr/26/tI/s104/2/D/iii/II" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="II">(II) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>2017</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>2024</quotedText>”.</content></subclause></clause></subparagraph></paragraph></section>
<section id="d92427e553" identifier="/us/bill/114/hr/26/tI/s105" role="instruction" style="-uslm-lc:I650143"><num value="105">SEC. 105. </num><heading>CERTIFICATION OF ACTS OF TERRORISM; CONSULTATION WITH SECRETARY OF HOMELAND SECURITY.</heading><content style="-uslm-lc:I650120"> Paragraph (1)(A) of section 102 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction> in the matter preceding clause (i), by <amendingAction type="delete">striking</amendingAction> “<quotedText>concurrence with the Secretary of State</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>consultation with the Secretary of Homeland Security</quotedText>”.</content></section>
<section id="d92427e572" identifier="/us/bill/114/hr/26/tI/s106" role="instruction" style="-uslm-lc:I650143"><num value="106">SEC. 106. </num><heading>TECHNICAL AMENDMENTS.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> The Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e584" identifier="/us/bill/114/hr/26/tI/s106/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><chapeau>in section 102—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e588" identifier="/us/bill/114/hr/26/tI/s106/1/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><chapeau>in paragraph (3)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e592" identifier="/us/bill/114/hr/26/tI/s106/1/A/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="redesignate">redesignating</amendingAction> subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e600" identifier="/us/bill/114/hr/26/tI/s106/1/A/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>in the matter preceding clause (i) (as so redesignated), by <amendingAction type="delete">striking</amendingAction> “<quotedText>An entity has</quotedText>” and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent><subparagraph class="indentUp2 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>An entity has”</content></subparagraph></quotedContent>; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e621" identifier="/us/bill/114/hr/26/tI/s106/1/A/iii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent><subparagraph class="indentUp2 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>An entity, including any affiliate thereof, does not have ‘control’ over another entity, if, as of the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, the entity is acting as an attorney-in-fact, as defined by the Secretary, for the other entity and such other entity is a reciprocal insurer, provided that the entity is not, for reasons other than the attorney-in-fact relationship, defined as having ‘control’ under subparagraph (A).”</content></subparagraph></quotedContent>;</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e639" identifier="/us/bill/114/hr/26/tI/s106/1/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><chapeau>in paragraph (7)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e643" identifier="/us/bill/114/hr/26/tI/s106/1/B/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> subparagraphs (A) through (F) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent><subparagraph class="indentUp2 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>the value of an insurer’s direct earned premiums during the immediately preceding calendar year, multiplied by 20 percent; and”</content></subparagraph></quotedContent>;</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e660" identifier="/us/bill/114/hr/26/tI/s106/1/B/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="redesignate">redesignating</amendingAction> subparagraph (G) as subparagraph (B); and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e668" identifier="/us/bill/114/hr/26/tI/s106/1/B/iii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">(iii) </num><chapeau>in subparagraph (B), as so redesignated by clause (ii)—</chapeau><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e672" identifier="/us/bill/114/hr/26/tI/s106/1/B/iii/I" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>notwithstanding subparagraphs (A) through (F), for the Transition Period or any Program Year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>notwithstanding subparagraph (A), for any calendar year</quotedText>”; and</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e683" identifier="/us/bill/114/hr/26/tI/s106/1/B/iii/II" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="II">(II) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>Period or Program Year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>calendar year</quotedText>”;</content></subclause></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e694" identifier="/us/bill/114/hr/26/tI/s106/1/C" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">(C) </num><content>by <amendingAction type="delete">striking</amendingAction> paragraph (11); and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e702" identifier="/us/bill/114/hr/26/tI/s106/1/D" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">(D) </num><content>by <amendingAction type="redesignate">redesignating</amendingAction> paragraphs (12) through (16) as paragraphs (11) through (15), respectively; and</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e710" identifier="/us/bill/114/hr/26/tI/s106/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><chapeau>in section 103—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e714" identifier="/us/bill/114/hr/26/tI/s106/2/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><chapeau>in subsection (b)(2)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e718" identifier="/us/bill/114/hr/26/tI/s106/2/A/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><content>in subparagraph (B), by <amendingAction type="delete">striking</amendingAction> “<quotedText>, purchase,</quotedText>”; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e726" identifier="/us/bill/114/hr/26/tI/s106/2/A/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>, purchase,</quotedText>”;</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e734" identifier="/us/bill/114/hr/26/tI/s106/2/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><content>in subsection (c), by <amendingAction type="delete">striking</amendingAction> “<quotedText>Program Year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>calendar year</quotedText>”;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e745" identifier="/us/bill/114/hr/26/tI/s106/2/C" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">(C) </num><chapeau>in subsection (e)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e749" identifier="/us/bill/114/hr/26/tI/s106/2/C/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><chapeau>in paragraph (1)(A), as previously amended by section 102—</chapeau><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e753" identifier="/us/bill/114/hr/26/tI/s106/2/C/i/I" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="I">(I) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>the Transition Period and each Program Year through Program Year 4 shall be equal to 90 percent, and during Program Year 5 and each Program Year thereafter</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each calendar year</quotedText>”;</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e764" identifier="/us/bill/114/hr/26/tI/s106/2/C/i/II" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="II">(II) </num><content>by <amendingAction type="delete">striking</amendingAction> the comma after “<quotedText>80 percent</quotedText>”; and</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" id="d92427e772" identifier="/us/bill/114/hr/26/tI/s106/2/C/i/III" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="III">(III) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>such Transition Period or such Program Year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>such calendar year</quotedText>”;</content></subclause></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e783" identifier="/us/bill/114/hr/26/tI/s106/2/C/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>in paragraph (2)(A), by <amendingAction type="delete">striking</amendingAction> “<quotedText>the period beginning on the first day of the Transition Period and ending on the last day of Program Year 1, or during any Program Year thereafter</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>a calendar year</quotedText>”; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e794" identifier="/us/bill/114/hr/26/tI/s106/2/C/iii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">(iii) </num><content>in paragraph (3), by <amendingAction type="delete">striking</amendingAction> “<quotedText>the period beginning on the first day of the Transition Period and ending on the last day of Program Year 1, or during any other Program Year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>any calendar year</quotedText>”; and</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e805" identifier="/us/bill/114/hr/26/tI/s106/2/D" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">(D) </num><chapeau>in subsection (g)(2)—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e809" identifier="/us/bill/114/hr/26/tI/s106/2/D/i" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">(i) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>the Transition Period or a Program Year</quotedText>” each place that term appears and <amendingAction type="insert">inserting</amendingAction> “<quotedText>the calendar year</quotedText>”;</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e820" identifier="/us/bill/114/hr/26/tI/s106/2/D/ii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">(ii) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>such period</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>the calendar year</quotedText>”; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" id="d92427e831" identifier="/us/bill/114/hr/26/tI/s106/2/D/iii" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">(iii) </num><content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>that period</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>the calendar year</quotedText>”.</content></clause></subparagraph></paragraph></section>
<section id="d92427e843" identifier="/us/bill/114/hr/26/tI/s107" style="-uslm-lc:I650143"><num value="107">SEC. 107. </num><heading>IMPROVING THE CERTIFICATION PROCESS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e847" identifier="/us/bill/114/hr/26/tI/s107/a" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">(a) </num><heading><inline class="smallCaps">Definitions</inline>.—</heading><chapeau>As used in this section—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e855" identifier="/us/bill/114/hr/26/tI/s107/a/1" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><content>the term “<term>act of terrorism</term>” has the same meaning as in section 102(1) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>);</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e863" identifier="/us/bill/114/hr/26/tI/s107/a/2" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><content>the term “<term>certification process</term>” means the process by which the Secretary determines whether to certify an act as an act of terrorism under section 102(1) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>); and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e871" identifier="/us/bill/114/hr/26/tI/s107/a/3" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">(3) </num><content>the term “<term>Secretary</term>” means the Secretary of the Treasury.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e875" identifier="/us/bill/114/hr/26/tI/s107/b" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">(b) </num><heading><inline class="smallCaps">Study</inline>.—</heading><content>Not later than 9 months after the date of enactment of this Act, the Secretary shall conduct and complete a study on the certification process.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e883" identifier="/us/bill/114/hr/26/tI/s107/c" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="c">(c) </num><heading><inline class="smallCaps">Required Content</inline>.—</heading><chapeau>The study required under subsection (a) shall include an examination and analysis of—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e891" identifier="/us/bill/114/hr/26/tI/s107/c/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><content>the establishment of a reasonable timeline by which the Secretary must make an accurate determination on whether to certify an act as an act of terrorism;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e895" identifier="/us/bill/114/hr/26/tI/s107/c/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><content>the impact that the length of any timeline proposed to be established under paragraph (1) may have on the insurance industry, policyholders, consumers, and taxpayers as a whole;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e899" identifier="/us/bill/114/hr/26/tI/s107/c/3" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">(3) </num><content>the factors the Secretary would evaluate and monitor during the certification process, including the ability of the Secretary to obtain the required information regarding the amount of projected and incurred losses resulting from an act which the Secretary would need in determining whether to certify the act as an act of terrorism;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e903" identifier="/us/bill/114/hr/26/tI/s107/c/4" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">(4) </num><content>the appropriateness, efficiency, and effectiveness of the consultation process required under section 102(1)(A) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) and any recommendations on changes to the consultation process; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e911" identifier="/us/bill/114/hr/26/tI/s107/c/5" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">(5) </num><content>the ability of the Secretary to provide guidance and updates to the public regarding any act that may reasonably be certified as an act of terrorism.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e915" identifier="/us/bill/114/hr/26/tI/s107/d" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="d">(d) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Upon completion of the study required under subsection (a), the Secretary shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e923" identifier="/us/bill/114/hr/26/tI/s107/e" role="instruction" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="e">(e) </num><heading><inline class="smallCaps">Rulemaking</inline>.—</heading><chapeau>Section 102(1) of the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e938" identifier="/us/bill/114/hr/26/tI/s107/e/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><content>by <amendingAction type="redesignate">redesignating</amendingAction> subparagraph (D) as subparagraph (E); and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e946" identifier="/us/bill/114/hr/26/tI/s107/e/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><content>by <amendingAction type="insert">inserting</amendingAction> after subparagraph (C) the following:<quotedContent><subparagraph class="indentUp2 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><heading><inline class="smallCaps">Timing of certification</inline>.—</heading><content>Not later than 9 months after the report required under section 107 of the Terrorism Risk Insurance Program Reauthorization Act of 2015 is submitted to the appropriate committees of Congress, the Secretary shall issue final rules governing the certification process, including establishing a timeline for which an act is eligible for certification by the Secretary on whether an act is an act of terrorism under this paragraph.”</content></subparagraph></quotedContent>.</content></paragraph></subsection></section>
<section id="d92427e965" identifier="/us/bill/114/hr/26/tI/s108" style="-uslm-lc:I650143"><num value="108">SEC. 108. </num><heading>GAO STUDY.</heading><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e969" identifier="/us/bill/114/hr/26/tI/s108/a" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">(a) </num><heading><inline class="smallCaps">Study</inline>.—</heading><chapeau>Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall complete a study on the viability and effects of the Federal Government—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e977" identifier="/us/bill/114/hr/26/tI/s108/a/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><content>assessing and collecting upfront premiums on insurers that participate in the Terrorism Insurance Program established under the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) (hereafter in this section referred to as the “Program”), which shall include a comparison of practices in international markets to assess and collect premiums either before or after terrorism losses are incurred; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e985" identifier="/us/bill/114/hr/26/tI/s108/a/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><content>creating a capital reserve fund under the Program and requiring insurers participating in the Program to dedicate capital specifically for terrorism losses before such losses are incurred, which shall include a comparison of practices in international markets to establish reserve funds.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e989" identifier="/us/bill/114/hr/26/tI/s108/b" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">(b) </num><heading><inline class="smallCaps">Required Content</inline>.—</heading><chapeau>The study required under subsection (a) shall examine, but shall not be limited to, the following issues:</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e997" identifier="/us/bill/114/hr/26/tI/s108/b/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><heading><inline class="smallCaps">Upfront premiums</inline>.—</heading><chapeau>With respect to upfront premiums described in subsection (a)(1)—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1005" identifier="/us/bill/114/hr/26/tI/s108/b/1/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><content>how the Federal Government could determine the price of such upfront premiums on insurers that participate in the Program;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1009" identifier="/us/bill/114/hr/26/tI/s108/b/1/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><content>how the Federal Government could collect and manage such upfront premiums;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1013" identifier="/us/bill/114/hr/26/tI/s108/b/1/C" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">(C) </num><content>how the Federal Government could ensure that such upfront premiums are not spent for purposes other than claims through the Program;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1017" identifier="/us/bill/114/hr/26/tI/s108/b/1/D" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">(D) </num><content>how the assessment and collection of such upfront premiums could affect take-up rates for terrorism risk coverage in different regions and industries and how it could impact small businesses and consumers in both metropolitan and non-metropolitan areas;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1021" identifier="/us/bill/114/hr/26/tI/s108/b/1/E" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="E">(E) </num><content>the effect of collecting such upfront premiums on insurers both large and small;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1025" identifier="/us/bill/114/hr/26/tI/s108/b/1/F" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="F">(F) </num><content>the effect of collecting such upfront premiums on the private market for terrorism risk reinsurance; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1029" identifier="/us/bill/114/hr/26/tI/s108/b/1/G" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="G">(G) </num><content>the size of any Federal Government subsidy insurers may receive through their participation in the Program, taking into account the Program’s current post-event recoupment structure.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1033" identifier="/us/bill/114/hr/26/tI/s108/b/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><heading><inline class="smallCaps">Capital reserve fund</inline>.—</heading><chapeau>With respect to the capital reserve fund described in subsection (a)(2)—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1041" identifier="/us/bill/114/hr/26/tI/s108/b/2/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><content>how the creation of a capital reserve fund would affect the Federal Government’s fiscal exposure under the Terrorism Risk Insurance Program and the ability of the Program to meet its statutory purposes;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1045" identifier="/us/bill/114/hr/26/tI/s108/b/2/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><content>how a capital reserve fund would impact insurers and reinsurers, including liquidity, insurance pricing, and capacity to provide terrorism risk coverage;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1049" identifier="/us/bill/114/hr/26/tI/s108/b/2/C" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">(C) </num><content>the feasibility of segregating funds attributable to terrorism risk from funds attributable to other insurance lines;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1053" identifier="/us/bill/114/hr/26/tI/s108/b/2/D" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">(D) </num><content>how a capital reserve fund would be viewed and treated under current Financial Accounting Standards Board accounting rules and the tax laws; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1057" identifier="/us/bill/114/hr/26/tI/s108/b/2/E" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="E">(E) </num><content>how a capital reserve fund would affect the States’ ability to regulate insurers participating in the Program.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1061" identifier="/us/bill/114/hr/26/tI/s108/b/3" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">(3) </num><heading><inline class="smallCaps">International practices</inline>.—</heading><chapeau>With respect to international markets referred to in paragraphs (1) and (2) of subsection (a), how other countries, if any—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1069" identifier="/us/bill/114/hr/26/tI/s108/b/3/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><content>have established terrorism insurance structures;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1073" identifier="/us/bill/114/hr/26/tI/s108/b/3/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><content>charge premiums or otherwise collect funds to pay for the costs of terrorism insurance structures, including risk and administrative costs; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1077" identifier="/us/bill/114/hr/26/tI/s108/b/3/C" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">(C) </num><content>have established capital reserve funds to pay for the costs of terrorism insurance structures.</content></subparagraph></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1081" identifier="/us/bill/114/hr/26/tI/s108/c" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="c">(c) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>Upon completion of the study required under subsection (a), the Comptroller General shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1089" identifier="/us/bill/114/hr/26/tI/s108/d" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="d">(d) </num><heading><inline class="smallCaps">Public Availability</inline>.—</heading><content>The study and report required under this section shall be made available to the public in electronic form and shall be published on the website of the Government Accountability Office.</content></subsection></section>
<section id="d92427e1098" identifier="/us/bill/114/hr/26/tI/s109" style="-uslm-lc:I650143"><num value="109">SEC. 109. </num><heading>MEMBERSHIP OF BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.</heading><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1102" identifier="/us/bill/114/hr/26/tI/s109/a" role="instruction" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The first undesignated paragraph of section 10 of the Federal Reserve Act (<ref href="/us/usc/t12/s241">12 U.S.C. 241</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after the second sentence the following: “<quotedText>In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets.</quotedText>”.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1120" identifier="/us/bill/114/hr/26/tI/s109/b" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">(b) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><content>The amendment made by this section shall take effect on the date of enactment of this Act and apply to appointments made on and after that effective date, excluding any nomination pending in the Senate on that date.</content></subsection></section>
<section id="d92427e1129" identifier="/us/bill/114/hr/26/tI/s110" style="-uslm-lc:I650143"><num value="110">SEC. 110. </num><heading>ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1133" identifier="/us/bill/114/hr/26/tI/s110/a" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">(a) </num><heading><inline class="smallCaps">Finding; Rule of Construction</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1140" identifier="/us/bill/114/hr/26/tI/s110/a/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><heading><inline class="smallCaps">Finding</inline>.—</heading><content>Congress finds that it is desirable to encourage the growth of nongovernmental, private market reinsurance capacity for protection against losses arising from acts of terrorism.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1148" identifier="/us/bill/114/hr/26/tI/s110/a/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>Nothing in this Act, any amendment made by this Act, or the Terrorism Risk Insurance Act of 2002 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) shall prohibit insurers from developing risk-sharing mechanisms to voluntarily reinsure terrorism losses between and among themselves.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1160" identifier="/us/bill/114/hr/26/tI/s110/b" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">(b) </num><heading><inline class="smallCaps">Advisory Committee on Risk-Sharing Mechanisms</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1167" identifier="/us/bill/114/hr/26/tI/s110/b/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><content>The Secretary of the Treasury shall establish and appoint an advisory committee to be known as the “Advisory Committee on Risk-Sharing Mechanisms” (referred to in this subsection as the “Advisory Committee”).</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1175" identifier="/us/bill/114/hr/26/tI/s110/b/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><heading><inline class="smallCaps">Duties</inline>.—</heading><content>The Advisory Committee shall provide advice, recommendations, and encouragement with respect to the creation and development of the nongovernmental risk-sharing mechanisms described under subsection (a).</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e1183" identifier="/us/bill/114/hr/26/tI/s110/b/3" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">(3) </num><heading><inline class="smallCaps">Membership</inline>.—</heading><content>The Advisory Committee shall be composed of 9 members who are directors, officers, or other employees of insurers, reinsurers, or capital market participants that are participating or that desire to participate in the nongovernmental risk-sharing mechanisms described under subsection (a), and who are representative of the affected sectors of the insurance industry, including commercial property insurance, commercial casualty insurance, reinsurance, and alternative risk transfer industries.</content></paragraph></subsection></section>
<section id="d92427e1193" identifier="/us/bill/114/hr/26/tI/s111" role="instruction" style="-uslm-lc:I650143"><num value="111">SEC. 111. </num><heading>REPORTING OF TERRORISM INSURANCE DATA.</heading><content class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> Section 104 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="h">“(h) </num><heading><inline class="smallCaps">Reporting of Terrorism Insurance Data</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Authority</inline>.—</heading><chapeau>During the calendar year beginning on January 1, 2016, and in each calendar year thereafter, the Secretary shall require insurers participating in the Program to submit to the Secretary such information regarding insurance coverage for terrorism losses of such insurers as the Secretary considers appropriate to analyze the effectiveness of the Program, which shall include information regarding—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>lines of insurance with exposure to such losses;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>premiums earned on such coverage;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>geographical location of exposures;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><content>pricing of such coverage;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="E">“(E) </num><content>the take-up rate for such coverage;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="F">“(F) </num><content>the amount of private reinsurance for acts of terrorism purchased; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="G">“(G) </num><content>such other matters as the Secretary considers appropriate.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Reports</inline>.—</heading><chapeau>Not later than June 30, 2016, and every other June 30 thereafter, the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that includes—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>an analysis of the overall effectiveness of the Program;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>an evaluation of any changes or trends in the data collected under paragraph (1);</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>an evaluation of whether any aspects of the Program have the effect of discouraging or impeding insurers from providing commercial property casualty insurance coverage or coverage for acts of terrorism;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><content>an evaluation of the impact of the Program on workers’ compensation insurers; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="E">“(E) </num><content>in the case of the data reported in paragraph (1)(B), an updated estimate of the total amount earned since January 1, 2003.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Protection of data</inline>.—</heading><content>To the extent possible, the Secretary shall contract with an insurance statistical aggregator to collect the information described in paragraph (1), which shall keep any nonpublic information confidential and provide it to the Secretary in an aggregate form or in such other form or manner that does not permit identification of the insurer submitting such information.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Advance coordination</inline>.—</heading><content>Before collecting any data or information under paragraph (1) from an insurer, or affiliate of an insurer, the Secretary shall coordinate with the appropriate State insurance regulatory authorities and any relevant government agency or publicly available sources to determine if the information to be collected is available from, and may be obtained in a timely manner by, individually or collectively, such entities. If the Secretary determines that such data or information is available, and may be obtained in a timely matter, from such entities, the Secretary shall obtain the data or information from such entities. If the Secretary determines that such data or information is not so available, the Secretary may collect such data or information from an insurer and affiliates.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">“(5) </num><heading><inline class="smallCaps">Confidentiality</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">Retention of privilege</inline>.—</heading><content>The submission of any non-publicly available data and information to the Secretary and the sharing of any non-publicly available data with or by the Secretary among other Federal agencies, the State insurance regulatory authorities, or any other entities under this subsection shall not constitute a waiver of, or otherwise affect, any privilege arising under Federal or State law (including the rules of any Federal or State court) to which the data or information is otherwise subject.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Continued application of prior confidentiality agreements</inline>.—</heading><content>Any requirement under Federal or State law to the extent otherwise applicable, or any requirement pursuant to a written agreement in effect between the original source of any non-publicly available data or information and the source of such data or information to the Secretary, regarding the privacy or confidentiality of any data or information in the possession of the source to the Secretary, shall continue to apply to such data or information after the data or information has been provided pursuant to this subsection.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><heading><inline class="smallCaps">Information-sharing agreement</inline>.—</heading><chapeau>Any data or information obtained by the Secretary under this subsection may be made available to State insurance regulatory authorities, individually or collectively through an information-sharing agreement that—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>shall comply with applicable Federal law; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>shall not constitute a waiver of, or otherwise affect, any privilege under Federal or State law (including any privilege referred to in subparagraph (A) and the rules of any Federal or State court) to which the data or information is otherwise subject.</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><heading><inline class="smallCaps">Agency disclosure requirements</inline>.—</heading><content><ref href="/us/usc/t5/s552">Section 552 of title 5, United States Code</ref>, including any exceptions thereunder, shall apply to any data or information submitted under this subsection to the Secretary by an insurer or affiliate of an insurer.”</content></subparagraph></paragraph></subsection></quotedContent>.</content></section>
<section id="d92427e1349" identifier="/us/bill/114/hr/26/tI/s112" role="instruction" style="-uslm-lc:I650143"><num value="112">SEC. 112. </num><heading>ANNUAL STUDY OF SMALL INSURER MARKET COMPETITIVENESS.</heading><content class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> Section 108 (<ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="h">“(h) </num><heading><inline class="smallCaps">Study of Small Insurer Market Competitiveness</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>Not later than June 30, 2017, and every other June 30 thereafter, the Secretary shall conduct a study of small insurers (as such term is defined by regulation by the Secretary) participating in the Program, and identify any competitive challenges small insurers face in the terrorism risk insurance marketplace, including—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>changes to the market share, premium volume, and policyholder surplus of small insurers relative to large insurers;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>how the property and casualty insurance market for terrorism risk differs between small and large insurers, and whether such a difference exists within other perils;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>the impact of the Program’s mandatory availability requirement under section 103(c) on small insurers;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><content>the effect of increasing the trigger amount for the Program under section 103(e)(1)(B) on small insurers;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="E">“(E) </num><content>the availability and cost of private reinsurance for small insurers; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="F">“(F) </num><content>the impact that State workers compensation laws have on small insurers and workers compensation carriers in the terrorism risk insurance marketplace.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Report</inline>.—</heading><content>The Secretary shall submit a report to the Congress setting forth the findings and conclusions of each study required under paragraph (1).”</content></paragraph></subsection></quotedContent>.</content></section>
<num value="II">TITLE II—</num><heading>NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM</heading>
<section id="d92427e1421" identifier="/us/bill/114/hr/26/tII/s201" style="-uslm-lc:I650143"><num value="201">SEC. 201. </num><heading>SHORT TITLE.</heading><content style="-uslm-lc:I650120"> This title may be cited as the “<shortTitle role="title">National Association of Registered Agents and Brokers Reform Act of 2015</shortTitle>”.</content></section>
<section id="d92427e1431" identifier="/us/bill/114/hr/26/tII/s202" style="-uslm-lc:I650143"><num value="202">SEC. 202. </num><heading>REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e1435" identifier="/us/bill/114/hr/26/tII/s202/a" role="instruction" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>Subtitle C of title III of the Gramm-Leach-Bliley Act (<ref href="/us/usc/t15/s6751/etseq">15 U.S.C. 6751 et seq.</ref>) <amendingAction type="amend">is amended</amendingAction> to read as follows:<quotedContent><subtitle style="-uslm-lc:I650178"><num class="bold centered" value="C">“Subtitle C—</num><heading class="bold centered">National Association of Registered Agents and Brokers</heading><section style="-uslm-lc:I650143"><num value="321">“SEC. 321. </num><heading>NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established the National Association of Registered Agents and Brokers (referred to in this subtitle as the ‘Association’).</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Status</inline>.—</heading><chapeau>The Association shall—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><content>be a nonprofit corporation;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><content>not be an agent or instrumentality of the Federal Government;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><content>be an independent organization that may not be merged with or into any other private or public entity; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><content>except as otherwise provided in this subtitle, be subject to, and have all the powers conferred upon, a nonprofit corporation by the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29–301.01 et seq.) or any successor thereto.</content></paragraph></subsection></section>
<section style="-uslm-lc:I650143"><num value="322">“SEC. 322. </num><heading>PURPOSE.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> “The purpose of the Association shall be to provide a mechanism through which licensing, continuing education, and other nonresident insurance producer qualification requirements and conditions may be adopted and applied on a multi-state basis without affecting the laws, rules, and regulations, and preserving the rights of a State, pertaining to—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><content>licensing, continuing education, and other qualification requirements of insurance producers that are not members of the Association;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><content>resident or nonresident insurance producer appointment requirements;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><content>supervising and disciplining resident and nonresident insurance producers;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><content>establishing licensing fees for resident and nonresident insurance producers so that there is no loss of insurance producer licensing revenue to the State; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">“(5) </num><content>prescribing and enforcing laws and regulations regulating the conduct of resident and nonresident insurance producers.</content></paragraph></section>
<section style="-uslm-lc:I650143"><num value="323">“SEC. 323. </num><heading>MEMBERSHIP.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Eligibility</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Any insurance producer licensed in its home State shall, subject to paragraphs (2) and (4), be eligible to become a member of the Association.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Ineligibility for suspension or revocation of license</inline>.—</heading><content>Subject to paragraph (3), an insurance producer is not eligible to become a member of the Association if a State insurance regulator has suspended or revoked the insurance license of the insurance producer in that State.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Resumption of eligibility</inline>.—</heading><chapeau>Paragraph (2) shall cease to apply to any insurance producer if—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>the State insurance regulator reissues or renews the license of the insurance producer in the State in which the license was suspended or revoked, or otherwise terminates or vacates the suspension or revocation; or</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>the suspension or revocation expires or is subsequently overturned by a court of competent jurisdiction.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Criminal history record check required</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>An insurance producer who is an individual shall not be eligible to become a member of the Association unless the insurance producer has undergone a criminal history record check that complies with regulations prescribed by the Attorney General of the United States under subparagraph (K).</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Criminal history record check requested by home state</inline>.—</heading><content>An insurance producer who is licensed in a State and who has undergone a criminal history record check during the 2-year period preceding the date of submission of an application to become a member of the Association, in compliance with a requirement to undergo such criminal history record check as a condition for such licensure in the State, shall be deemed to have undergone a criminal history record check for purposes of subparagraph (A).</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><heading><inline class="smallCaps">Criminal history record check requested by association</inline>.—</heading><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Association shall, upon request by an insurance producer licensed in a State, submit fingerprints or other identification information obtained from the insurance producer, and a request for a criminal history record check of the insurance producer, to the Federal Bureau of Investigation.</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading><inline class="smallCaps">Procedures</inline>.—</heading><content>The board of directors of the Association (referred to in this subtitle as the ‘Board’) shall prescribe procedures for obtaining and utilizing fingerprints or other identification information and criminal history record information, including the establishment of reasonable fees to defray the expenses of the Association in connection with the performance of a criminal history record check and appropriate safeguards for maintaining confidentiality and security of the information. Any fees charged pursuant to this clause shall be separate and distinct from those charged by the Attorney General pursuant to subparagraph (I).</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><heading><inline class="smallCaps">Form of request</inline>.—</heading><content>A submission under subparagraph (C)(i) shall include such fingerprints or other identification information as is required by the Attorney General concerning the person about whom the criminal history record check is requested, and a statement signed by the person authorizing the Attorney General to provide the information to the Association and for the Association to receive the information.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="E">“(E) </num><heading><inline class="smallCaps">Provision of information by attorney general</inline>.—</heading><content>Upon receiving a submission under subparagraph (C)(i) from the Association, the Attorney General shall search all criminal history records of the Federal Bureau of Investigation, including records of the Criminal Justice Information Services Division of the Federal Bureau of Investigation, that the Attorney General determines appropriate for criminal history records corresponding to the fingerprints or other identification information provided under subparagraph (D) and provide all criminal history record information included in the request to the Association.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="F">“(F) </num><heading><inline class="smallCaps">Limitation on permissible uses of information</inline>.—</heading><chapeau>Any information provided to the Association under subparagraph (E) may only—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>be used for purposes of determining compliance with membership criteria established by the Association;</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>be disclosed to State insurance regulators, or Federal or State law enforcement agencies, in conformance with applicable law; or</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>be disclosed, upon request, to the insurance producer to whom the criminal history record information relates.</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="G">“(G) </num><heading><inline class="smallCaps">Penalty for improper use or disclosure</inline>.—</heading><content>Whoever knowingly uses any information provided under subparagraph (E) for a purpose not authorized in subparagraph (F), or discloses any such information to anyone not authorized to receive it, shall be fined not more than $50,000 per violation as determined by a court of competent jurisdiction.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="H">“(H) </num><heading><inline class="smallCaps">Reliance on information</inline>.—</heading><content>Neither the Association nor any of its Board members, officers, or employees shall be liable in any action for using information provided under subparagraph (E) as permitted under subparagraph (F) in good faith and in reasonable reliance on its accuracy.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="I">“(I) </num><heading><inline class="smallCaps">Fees</inline>.—</heading><content>The Attorney General may charge a reasonable fee for conducting the search and providing the information under subparagraph (E), and any such fee shall be collected and remitted by the Association to the Attorney General.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="J">“(J) </num><heading><inline class="smallCaps">Rule of construction</inline>.—</heading><chapeau>Nothing in this paragraph shall be construed as—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>requiring a State insurance regulator to perform criminal history record checks under this section; or</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>limiting any other authority that allows access to criminal history records.</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="K">“(K) </num><heading><inline class="smallCaps">Regulations</inline>.—</heading><chapeau>The Attorney General shall prescribe regulations to carry out this paragraph, which shall include—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>appropriate protections for ensuring the confidentiality of information provided under subparagraph (E); and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>procedures providing a reasonable opportunity for an insurance producer to contest the accuracy of information regarding the insurance producer provided under subparagraph (E).</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="L">“(L) </num><heading><inline class="smallCaps">Ineligibility for membership</inline>.—</heading><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Association may, under reasonably consistently applied standards, deny membership to an insurance producer on the basis of criminal history record information provided under subparagraph (E), or where the insurance producer has been subject to disciplinary action, as described in paragraph (2).</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading><inline class="smallCaps">Rights of applicants denied membership</inline>.—</heading><chapeau>The Association shall notify any insurance producer who is denied membership on the basis of criminal history record information provided under subparagraph (E) of the right of the insurance producer to—</chapeau><subclause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="I">“(I) </num><content>obtain a copy of all criminal history record information provided to the Association under subparagraph (E) with respect to the insurance producer; and</content></subclause><subclause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650128"><num style="-uslm-lc:emspace2" value="II">“(II) </num><content>challenge the denial of membership based on the accuracy and completeness of the information.</content></subclause></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="M">“(M) </num><heading><inline class="smallCaps">Definition</inline>.—</heading><content>For purposes of this paragraph, the term ‘<term>criminal history record check</term>’ means a national background check of criminal history records of the Federal Bureau of Investigation.</content></subparagraph></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Authority To Establish Membership Criteria</inline>.—</heading><content>The Association may establish membership criteria that bear a reasonable relationship to the purposes for which the Association was established.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="c">“(c) </num><heading><inline class="smallCaps">Establishment of Classes and Categories of Membership</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Classes of membership</inline>.—</heading><content>The Association may establish separate classes of membership, with separate criteria, if the Association reasonably determines that performance of different duties requires different levels of education, training, experience, or other qualifications.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Business entities</inline>.—</heading><content>The Association shall establish a class of membership and membership criteria for business entities. A business entity that applies for membership shall be required to designate an individual Association member responsible for the compliance of the business entity with Association standards and the insurance laws, standards, and regulations of any State in which the business entity seeks to do business on the basis of Association membership.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Categories</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">Separate categories for insurance producers permitted</inline>.—</heading><content>The Association may establish separate categories of membership for insurance producers and for other persons or entities within each class, based on the types of licensing categories that exist under State laws.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Separate treatment for depository institutions prohibited</inline>.—</heading><content>No special categories of membership, and no distinct membership criteria, shall be established for members that are depository institutions or for employees, agents, or affiliates of depository institutions.</content></subparagraph></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="d">“(d) </num><heading><inline class="smallCaps">Membership Criteria</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Association may establish criteria for membership which shall include standards for personal qualifications, education, training, and experience. The Association shall not establish criteria that unfairly limit the ability of a small insurance producer to become a member of the Association, including imposing discriminatory membership fees.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Qualifications</inline>.—</heading><content>In establishing criteria under paragraph (1), the Association shall not adopt any qualification less protective to the public than that contained in the National Association of Insurance Commissioners (referred to in this subtitle as the ‘NAIC’) Producer Licensing Model Act in effect as of the date of enactment of the National Association of Registered Agents and Brokers Reform Act of 2015, and shall consider the highest levels of insurance producer qualifications established under the licensing laws of the States.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Assistance from states</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Association may request a State to provide assistance in investigating and evaluating the eligibility of a prospective member for membership in the Association.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Authorization of information sharing</inline>.—</heading><chapeau>A submission under subsection (a)(4)(C)(i) made by an insurance producer licensed in a State shall include a statement signed by the person about whom the assistance is requested authorizing—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>the State to share information with the Association; and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>the Association to receive the information.</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>Subparagraph (A) shall not be construed as requiring or authorizing any State to adopt new or additional requirements concerning the licensing or evaluation of insurance producers.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Denial of membership</inline>.—</heading><content>The Association may, based on reasonably consistently applied standards, deny membership to any State-licensed insurance producer for failure to meet the membership criteria established by the Association.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="e">“(e) </num><heading><inline class="smallCaps">Effect of Membership</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Authority of association members</inline>.—</heading><chapeau>Membership in the Association shall—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>authorize an insurance producer to sell, solicit, or negotiate insurance in any State for which the member pays the licensing fee set by the State for any line or lines of insurance specified in the home State license of the insurance producer, and exercise all such incidental powers as shall be necessary to carry out such activities, including claims adjustments and settlement to the extent permissible under the laws of the State, risk management, employee benefits advice, retirement planning, and any other insurance-related consulting activities;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>be the equivalent of a nonresident insurance producer license for purposes of authorizing the insurance producer to engage in the activities described in subparagraph (A) in any State where the member pays the licensing fee; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>be the equivalent of a nonresident insurance producer license for the purpose of subjecting an insurance producer to all laws, regulations, provisions or other action of any State concerning revocation, suspension, or other enforcement action related to the ability of a member to engage in any activity within the scope of authority granted under this subsection and to all State laws, regulations, provisions, and actions preserved under paragraph (5).</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Violent crime control and law enforcement act of 1994</inline>.—</heading><content>Nothing in this subtitle shall be construed to alter, modify, or supercede any requirement established by <ref href="/us/usc/t18/s1033">section 1033 of title 18, United States Code</ref>.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Agent for remitting fees</inline>.—</heading><content>The Association shall act as an agent for any member for purposes of remitting licensing fees to any State pursuant to paragraph (1).</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Notification of action</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Association shall notify the States (including State insurance regulators) and the NAIC when an insurance producer has satisfied the membership criteria of this section. The States (including State insurance regulators) shall have 10 business days after the date of the notification in order to provide the Association with evidence that the insurance producer does not satisfy the criteria for membership in the Association.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Ongoing disclosures required</inline>.—</heading><content>On an ongoing basis, the Association shall disclose to the States (including State insurance regulators) and the NAIC a list of the States in which each member is authorized to operate. The Association shall immediately notify the States (including State insurance regulators) and the NAIC when a member is newly authorized to operate in one or more States, or is no longer authorized to operate in one or more States on the basis of Association membership.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">“(5) </num><heading><inline class="smallCaps">Preservation of consumer protection and market conduct regulation</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>No provision of this section shall be construed as altering or affecting the applicability or continuing effectiveness of any law, regulation, provision, or other action of any State, including those described in subparagraph (B), to the extent that the State law, regulation, provision, or other action is not inconsistent with the provisions of this subtitle related to market entry for nonresident insurance producers, and then only to the extent of the inconsistency.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Preserved regulations</inline>.—</heading><chapeau>The laws, regulations, provisions, or other actions of any State referred to in subparagraph (A) include laws, regulations, provisions, or other actions that—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>regulate market conduct, insurance producer conduct, or unfair trade practices;</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>establish consumer protections; or</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>require insurance producers to be appointed by a licensed or authorized insurer.</content></clause></subparagraph></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="f">“(f) </num><heading><inline class="smallCaps">Biennial Renewal</inline>.—</heading><content>Membership in the Association shall be renewed on a biennial basis.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="g">“(g) </num><heading><inline class="smallCaps">Continuing Education</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The Association shall establish, as a condition of membership, continuing education requirements which shall be comparable to the continuing education requirements under the licensing laws of a majority of the States.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">State continuing education requirements</inline>.—</heading><content>A member may not be required to satisfy continuing education requirements imposed under the laws, regulations, provisions, or actions of any State other than the home State of the member.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Reciprocity</inline>.—</heading><content>The Association shall not require a member to satisfy continuing education requirements that are equivalent to any continuing education requirements of the home State of the member that have been satisfied by the member during the applicable licensing period.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Limitation on the association</inline>.—</heading><content>The Association shall not directly or indirectly offer any continuing education courses for insurance producers.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="h">“(h) </num><heading><inline class="smallCaps">Probation, Suspension and Revocation</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Disciplinary action</inline>.—</heading><chapeau>The Association may place an insurance producer that is a member of the Association on probation or suspend or revoke the membership of the insurance producer in the Association, or assess monetary fines or penalties, as the Association determines to be appropriate, if—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>the insurance producer fails to meet the applicable membership criteria or other standards established by the Association;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>the insurance producer has been subject to disciplinary action pursuant to a final adjudicatory proceeding under the jurisdiction of a State insurance regulator;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>an insurance license held by the insurance producer has been suspended or revoked by a State insurance regulator; or</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><content>the insurance producer has been convicted of a crime that would have resulted in the denial of membership pursuant to subsection (a)(4)(L)(i) at the time of application, and the Association has received a copy of the final disposition from a court of competent jurisdiction.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Violations of association standards</inline>.—</heading><content>The Association shall have the power to investigate alleged violations of Association standards.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Reporting</inline>.—</heading><content>The Association shall immediately notify the States (including State insurance regulators) and the NAIC when the membership of an insurance producer has been placed on probation or has been suspended, revoked, or otherwise terminated, or when the Association has assessed monetary fines or penalties.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="i">“(i) </num><heading><inline class="smallCaps">Consumer Complaints</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Association shall—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>refer any complaint against a member of the Association from a consumer relating to alleged misconduct or violations of State insurance laws to the State insurance regulator where the consumer resides and, when appropriate, to any additional State insurance regulator, as determined by standards adopted by the Association; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>make any related records and information available to each State insurance regulator to whom the complaint is forwarded.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Telephone and other access</inline>.—</heading><content>The Association shall maintain a toll-free number for purposes of this subsection and, as practicable, other alternative means of communication with consumers, such as an Internet webpage.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Final disposition of investigation</inline>.—</heading><content>State insurance regulators shall provide the Association with information regarding the final disposition of a complaint referred pursuant to paragraph (1)(A), but nothing shall be construed to compel a State to release confidential investigation reports or other information protected by State law to the Association.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="j">“(j) </num><heading><inline class="smallCaps">Information Sharing</inline>.—</heading><chapeau>The Association may—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><content>share documents, materials, or other information, including confidential and privileged documents, with a State, Federal, or international governmental entity or with the NAIC or other appropriate entity referred to paragraphs (3) and (4), provided that the recipient has the authority and agrees to maintain the confidentiality or privileged status of the document, material, or other information;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><content>limit the sharing of information as required under this subtitle with the NAIC or any other non-governmental entity, in circumstances under which the Association determines that the sharing of such information is unnecessary to further the purposes of this subtitle;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><content>establish a central clearinghouse, or utilize the NAIC or another appropriate entity, as determined by the Association, as a central clearinghouse, for use by the Association and the States (including State insurance regulators), through which members of the Association may disclose their intent to operate in 1 or more States and pay the licensing fees to the appropriate States; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><content>establish a database, or utilize the NAIC or another appropriate entity, as determined by the Association, as a database, for use by the Association and the States (including State insurance regulators) for the collection of regulatory information concerning the activities of insurance producers.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="k">“(k) </num><heading><inline class="smallCaps">Effective Date</inline>.—</heading><chapeau>The provisions of this section shall take effect on the later of—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><content>the expiration of the 2-year period beginning on the date of enactment of the National Association of Registered Agents and Brokers Reform Act of 2015; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><content>the date of incorporation of the Association.</content></paragraph></subsection></section>
<section style="-uslm-lc:I650143"><num value="324">“SEC. 324. </num><heading>BOARD OF DIRECTORS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Establishment</inline>.—</heading><content>There is established a board of directors of the Association, which shall have authority to govern and supervise all activities of the Association.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Powers</inline>.—</heading><content>The Board shall have such of the powers and authority of the Association as may be specified in the bylaws of the Association.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="c">“(c) </num><heading><inline class="smallCaps">Composition</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Board shall consist of 13 members who shall be appointed by the President, by and with the advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, of whom—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>8 shall be State insurance commissioners appointed in the manner provided in paragraph (2), 1 of whom shall be designated by the President to serve as the chairperson of the Board until the Board elects one such State insurance commissioner Board member to serve as the chairperson of the Board;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>3 shall have demonstrated expertise and experience with property and casualty insurance producer licensing; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>2 shall have demonstrated expertise and experience with life or health insurance producer licensing.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">State insurance regulator representatives</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">Recommendations</inline>.—</heading><content>Before making any appointments pursuant to paragraph (1)(A), the President shall request a list of recommended candidates from the States through the NAIC, which shall not be binding on the President. If the NAIC fails to submit a list of recommendations not later than 15 business days after the date of the request, the President may make the requisite appointments without considering the views of the NAIC.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Political affiliation</inline>.—</heading><content>Not more than 4 Board members appointed under paragraph (1)(A) shall belong to the same political party.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><heading><inline class="smallCaps">Former state insurance commissioners</inline>.—</heading><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>If, after offering each currently serving State insurance commissioner an appointment to the Board, fewer than 8 State insurance commissioners have accepted appointment to the Board, the President may appoint the remaining State insurance commissioner Board members, as required under paragraph (1)(A), of the appropriate political party as required under subparagraph (B), from among individuals who are former State insurance commissioners.</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><heading><inline class="smallCaps">Limitation</inline>.—</heading><content>A former State insurance commissioner appointed as described in clause (i) may not be employed by or have any present direct or indirect financial interest in any insurer, insurance producer, or other entity in the insurance industry, other than direct or indirect ownership of, or beneficial interest in, an insurance policy or annuity contract written or sold by an insurer.</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><heading><inline class="smallCaps">Service through term</inline>.—</heading><content>If a Board member appointed under paragraph (1)(A) ceases to be a State insurance commissioner during the term of the Board member, the Board member shall cease to be a Board member.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Private sector representatives</inline>.—</heading><content>In making any appointment pursuant to subparagraph (B) or (C) of paragraph (1), the President may seek recommendations for candidates from groups representing the category of individuals described, which shall not be binding on the President.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">State insurance commissioner defined</inline>.—</heading><content>For purposes of this subsection, the term ‘<term>State insurance commissioner</term>’ means a person who serves in the position in State government, or on the board, commission, or other body that is the primary insurance regulatory authority for the State.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="d">“(d) </num><heading><inline class="smallCaps">Terms</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided under paragraph (2), the term of service for each Board member shall be 2 years.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Exceptions</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">1-year</inline><inline class="smallCaps"> terms</inline>.—</heading><chapeau>The term of service shall be 1 year, as designated by the President at the time of the nomination of the subject Board members for—</chapeau><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="i">“(i) </num><content>4 of the State insurance commissioner Board members initially appointed under paragraph (1)(A), of whom not more than 2 shall belong to the same political party;</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="ii">“(ii) </num><content>1 of the Board members initially appointed under paragraph (1)(B); and</content></clause><clause class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650126"><num style="-uslm-lc:emspace2" value="iii">“(iii) </num><content>1 of the Board members initially appointed under paragraph (1)(C).</content></clause></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Expiration of term</inline>.—</heading><content>A Board member may continue to serve after the expiration of the term to which the Board member was appointed for the earlier of 2 years or until a successor is appointed.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><heading><inline class="smallCaps">Mid-term appointments</inline>.—</heading><content>A Board member appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of the Board member was appointed shall be appointed only for the remainder of that term.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Successive terms</inline>.—</heading><content>Board members may be reappointed to successive terms.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="e">“(e) </num><heading><inline class="smallCaps">Initial Appointments</inline>.—</heading><content>The appointment of initial Board members shall be made no later than 90 days after the date of enactment of the National Association of Registered Agents and Brokers Reform Act of 2015.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="f">“(f) </num><heading><inline class="smallCaps">Meetings</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>The Board shall meet—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>at the call of the chairperson;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>as requested in writing to the chairperson by not fewer than 5 Board members; or</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>as otherwise provided by the bylaws of the Association.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Quorum required</inline>.—</heading><content>A majority of all Board members shall constitute a quorum.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Voting</inline>.—</heading><content>Decisions of the Board shall require the approval of a majority of all Board members present at a meeting, a quorum being present.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Initial meeting</inline>.—</heading><content>The Board shall hold its first meeting not later than 45 days after the date on which all initial Board members have been appointed.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="g">“(g) </num><heading><inline class="smallCaps">Restriction on Confidential Information</inline>.—</heading><content>Board members appointed pursuant to subparagraphs (B) and (C) of subsection (c)(1) shall not have access to confidential information received by the Association in connection with complaints, investigations, or disciplinary proceedings involving insurance producers.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="h">“(h) </num><heading><inline class="smallCaps">Ethics and Conflicts of Interest</inline>.—</heading><chapeau>The Board shall issue and enforce an ethical conduct code to address permissible and prohibited activities of Board members and Association officers, employees, agents, or consultants. The code shall, at a minimum, include provisions that prohibit any Board member or Association officer, employee, agent or consultant from—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><content>engaging in unethical conduct in the course of performing Association duties;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><content>participating in the making or influencing the making of any Association decision, the outcome of which the Board member, officer, employee, agent, or consultant knows or had reason to know would have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the person or a member of the immediate family of the person;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><content>accepting any gift from any person or entity other than the Association that is given because of the position held by the person in the Association;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><content>making political contributions to any person or entity on behalf of the Association; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">“(5) </num><content>lobbying or paying a person to lobby on behalf of the Association.</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="i">“(i) </num><heading><inline class="smallCaps">Compensation</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>Except as provided in paragraph (2), no Board member may receive any compensation from the Association or any other person or entity on account of Board membership.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Travel expenses and per diem</inline>.—</heading><content>Board members may be reimbursed only by the Association for travel expenses, including per diem in lieu of subsistence, at rates consistent with rates authorized for employees of Federal agencies under <ref href="/us/usc/t5/ch57/schI">subchapter I of chapter 57 of title 5, United States Code</ref>, while away from home or regular places of business in performance of services for the Association.</content></paragraph></subsection></section>
<section style="-uslm-lc:I650143"><num value="325">“SEC. 325. </num><heading>BYLAWS, STANDARDS, AND DISCIPLINARY ACTIONS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Adoption and Amendment of Bylaws and Standards</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Procedures</inline>.—</heading><content>The Association shall adopt procedures for the adoption of bylaws and standards that are similar to procedures under <ref href="/us/usc/t5/ch5/schII">subchapter II of chapter 5 of title 5, United States Code</ref> (commonly known as the ‘Administrative Procedure Act’).</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Copy required to be filed</inline>.—</heading><content>The Board shall submit to the President, through the Department of the Treasury, and the States (including State insurance regulators), and shall publish on the website of the Association, all proposed bylaws and standards of the Association, or any proposed amendment to the bylaws or standards of the Association, accompanied by a concise general statement of the basis and purpose of such proposal.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Effective date</inline>.—</heading><content>Any proposed bylaw or standard of the Association, and any proposed amendment to the bylaws or standards of the Association, shall take effect, after notice under paragraph (2) and opportunity for public comment, on such date as the Association may designate, unless suspended under section 329(c).</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Rule of construction</inline>.—</heading><content>Nothing in this section shall be construed to subject the Board or the Association to the requirements of <ref href="/us/usc/t5/ch5/schII">subchapter II of chapter 5 of title 5, United States Code</ref> (commonly known as the ‘Administrative Procedure Act’).</content></paragraph></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Disciplinary Action by the Association</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Specification of charges</inline>.—</heading><content>In any proceeding to determine whether membership shall be denied, suspended, revoked, or not renewed, or to determine whether a member of the Association should be placed on probation (referred to in this section as a ‘disciplinary action’) or whether to assess fines or monetary penalties, the Association shall bring specific charges, notify the member of the charges, give the member an opportunity to defend against the charges, and keep a record.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Supporting statement</inline>.—</heading><chapeau>A determination to take disciplinary action shall be supported by a statement setting forth—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>any act or practice in which the member has been found to have been engaged;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>the specific provision of this subtitle or standard of the Association that any such act or practice is deemed to violate; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>the sanction imposed and the reason for the sanction.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Ineligibility of private sector representatives</inline>.—</heading><chapeau>Board members appointed pursuant to section 324(c)(3) may not—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>participate in any disciplinary action or be counted toward establishing a quorum during a disciplinary action; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>have access to confidential information concerning any disciplinary action.</content></subparagraph></paragraph></subsection></section>
<section style="-uslm-lc:I650143"><num value="326">“SEC. 326. </num><heading>POWERS.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> “In addition to all the powers conferred upon a nonprofit corporation by the District of Columbia Nonprofit Corporation Act, the Association shall have the power to—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><content>establish and collect such membership fees as the Association finds necessary to impose to cover the costs of its operations;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><content>adopt, amend, and repeal bylaws, procedures, or standards governing the conduct of Association business and performance of its duties;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><content>establish procedures for providing notice and opportunity for comment pursuant to section 325(a);</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><content>enter into and perform such agreements as necessary to carry out the duties of the Association;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">“(5) </num><content>hire employees, professionals, or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of this subtitle, and determine their qualification;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="6">“(6) </num><content>establish personnel policies of the Association and programs relating to, among other things, conflicts of interest, rates of compensation, where applicable, and qualifications of personnel;</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="7">“(7) </num><content>borrow money; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="8">“(8) </num><content>secure funding for such amounts as the Association determines to be necessary and appropriate to organize and begin operations of the Association, which shall be treated as loans to be repaid by the Association with interest at market rate.</content></paragraph></section>
<section style="-uslm-lc:I650143"><num value="327">“SEC. 327. </num><heading>REPORT BY THE ASSOCIATION.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>As soon as practicable after the close of each fiscal year, the Association shall submit to the President, through the Department of the Treasury, and the States (including State insurance regulators), and shall publish on the website of the Association, a written report regarding the conduct of its business, and the exercise of the other rights and powers granted by this subtitle, during such fiscal year.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Financial Statements</inline>.—</heading><content>Each report submitted under subsection (a) with respect to any fiscal year shall include audited financial statements setting forth the financial position of the Association at the end of such fiscal year and the results of its operations (including the source and application of its funds) for such fiscal year.</content></subsection></section>
<section style="-uslm-lc:I650143"><num value="328">“SEC. 328. </num><heading>LIABILITY OF THE ASSOCIATION AND THE BOARD MEMBERS, OFFICERS, AND EMPLOYEES OF THE ASSOCIATION.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">In General</inline>.—</heading><content>The Association shall not be deemed to be an insurer or insurance producer within the meaning of any State law, rule, regulation, or order regulating or taxing insurers, insurance producers, or other entities engaged in the business of insurance, including provisions imposing premium taxes, regulating insurer solvency or financial condition, establishing guaranty funds and levying assessments, or requiring claims settlement practices.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Liability of Board Members, Officers, and Employees</inline>.—</heading><content>No Board member, officer, or employee of the Association shall be personally liable to any person for any action taken or omitted in good faith in any matter within the scope of their responsibilities in connection with the Association.</content></subsection></section>
<section style="-uslm-lc:I650143"><num value="329">“SEC. 329. </num><heading>PRESIDENTIAL OVERSIGHT.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Removal of Board</inline>.—</heading><content>If the President determines that the Association is acting in a manner contrary to the interests of the public or the purposes of this subtitle or has failed to perform its duties under this subtitle, the President may remove the entire existing Board for the remainder of the term to which the Board members were appointed and appoint, in accordance with section 324 and with the advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, new Board members to fill the vacancies on the Board for the remainder of the terms.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Removal of Board Member</inline>.—</heading><content>The President may remove a Board member only for neglect of duty or malfeasance in office.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="c">“(c) </num><heading><inline class="smallCaps">Suspension of Bylaws and Standards and Prohibition of Actions</inline>.—</heading><content>Following notice to the Board, the President, or a person designated by the President for such purpose, may suspend the effectiveness of any bylaw or standard, or prohibit any action, of the Association that the President or the designee determines is contrary to the purposes of this subtitle.</content></subsection></section>
<section style="-uslm-lc:I650143"><num value="330">“SEC. 330. </num><heading>RELATIONSHIP TO STATE LAW.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Preemption of State Laws</inline>.—</heading><content>State laws, regulations, provisions, or other actions purporting to regulate insurance producers shall be preempted to the extent provided in subsection (b).</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Prohibited Actions</inline>.—</heading><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">In general</inline>.—</heading><chapeau>No State shall—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>impede the activities of, take any action against, or apply any provision of law or regulation arbitrarily or discriminatorily to, any insurance producer because that insurance producer or any affiliate plans to become, has applied to become, or is a member of the Association;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>impose any requirement upon a member of the Association that it pay fees different from those required to be paid to that State were it not a member of the Association; or</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>impose any continuing education requirements on any nonresident insurance producer that is a member of the Association.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">States other than a home state</inline>.—</heading><chapeau>No State, other than the home State of a member of the Association, shall—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><content>impose any licensing, personal or corporate qualifications, education, training, experience, residency, continuing education, or bonding requirement upon a member of the Association that is different from the criteria for membership in the Association or renewal of such membership;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><content>impose any requirement upon a member of the Association that it be licensed, registered, or otherwise qualified to do business or remain in good standing in the State, including any requirement that the insurance producer register as a foreign company with the secretary of state or equivalent State official;</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="C">“(C) </num><content>require that a member of the Association submit to a criminal history record check as a condition of doing business in the State; or</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="D">“(D) </num><content>impose any licensing, registration, or appointment requirements upon a member of the Association, or require a member of the Association to be authorized to operate as an insurance producer, in order to sell, solicit, or negotiate insurance for commercial property and casualty risks to an insured with risks located in more than one State, if the member is licensed or otherwise authorized to operate in the State where the insured maintains its principal place of business and the contract of insurance insures risks located in that State.</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Preservation of state disciplinary authority</inline>.—</heading><content>Nothing in this section may be construed to prohibit a State from investigating and taking appropriate disciplinary action, including suspension or revocation of authority of an insurance producer to do business in a State, in accordance with State law and that is not inconsistent with the provisions of this section, against a member of the Association as a result of a complaint or for any alleged activity, regardless of whether the activity occurred before or after the insurance producer commenced doing business in the State pursuant to Association membership.</content></paragraph></subsection></section>
<section style="-uslm-lc:I650143"><num value="331">“SEC. 331. </num><heading>COORDINATION WITH FINANCIAL INDUSTRY REGULATORY AUTHORITY.</heading><content class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> “The Association shall coordinate with the Financial Industry Regulatory Authority in order to ease any administrative burdens that fall on members of the Association that are subject to regulation by the Financial Industry Regulatory Authority, consistent with the requirements of this subtitle and the Federal securities laws.</content></section>
<section style="-uslm-lc:I650143"><num value="332">“SEC. 332. </num><heading>RIGHT OF ACTION.</heading><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">“(a) </num><heading><inline class="smallCaps">Right of Action</inline>.—</heading><content>Any person aggrieved by a decision or action of the Association may, after reasonably exhausting available avenues for resolution within the Association, commence a civil action in an appropriate United States district court, and obtain all appropriate relief.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">“(b) </num><heading><inline class="smallCaps">Association Interpretations</inline>.—</heading><content>In any action under subsection (a), the court shall give appropriate weight to the interpretation of the Association of its bylaws and standards and this subtitle.</content></subsection></section>
<section style="-uslm-lc:I650143"><num value="333">“SEC. 333. </num><heading>FEDERAL FUNDING PROHIBITED.</heading><content class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> “The Association may not receive, accept, or borrow any amounts from the Federal Government to pay for, or reimburse, the Association for, the costs of establishing or operating the Association.</content></section>
<section style="-uslm-lc:I650143"><num value="334">“SEC. 334. </num><heading>DEFINITIONS.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> “For purposes of this subtitle, the following definitions shall apply:</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">“(1) </num><heading><inline class="smallCaps">Business entity</inline>.—</heading><content>The term ‘<term>business entity</term>’ means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">“(2) </num><heading><inline class="smallCaps">Depository institution</inline>.—</heading><content>The term ‘<term>depository institution</term>’ has the meaning as in section 3 of the Federal Deposit Insurance Act (<ref href="/us/usc/t12/s1813">12 U.S.C. 1813</ref>).</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">“(3) </num><heading><inline class="smallCaps">Home state</inline>.—</heading><content>The term ‘<term>home State</term>’ means the State in which the insurance producer maintains its principal place of residence or business and is licensed to act as an insurance producer.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Insurance</inline>.—</heading><content>The term ‘<term>insurance</term>’ means any product, other than title insurance or bail bonds, defined or regulated as insurance by the appropriate State insurance regulatory authority.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="5">“(5) </num><heading><inline class="smallCaps">Insurance producer</inline>.—</heading><content>The term ‘<term>insurance producer</term>’ means any insurance agent or broker, excess or surplus lines broker or agent, insurance consultant, limited insurance representative, and any other individual or entity that sells, solicits, or negotiates policies of insurance or offers advice, counsel, opinions or services related to insurance.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="6">“(6) </num><heading><inline class="smallCaps">Insurer</inline>.—</heading><content>The term ‘<term>insurer</term>’ has the meaning as in <ref href="/us/usc/t31/s313/e/2/B">section 313(e)(2)(B) of title 31, United States Code</ref>.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="7">“(7) </num><heading><inline class="smallCaps">Principal place of business</inline>.—</heading><content>The term ‘<term>principal place of business</term>’ means the State in which an insurance producer maintains the headquarters of the insurance producer and, in the case of a business entity, where high-level officers of the entity direct, control, and coordinate the business activities of the business entity.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="8">“(8) </num><heading><inline class="smallCaps">Principal place of residence</inline>.—</heading><content>The term ‘<term>principal place of residence</term>’ means the State in which an insurance producer resides for the greatest number of days during a calendar year.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="9">“(9) </num><heading><inline class="smallCaps">State</inline>.—</heading><content>The term ‘<term>State</term>’ includes any State, the District of Columbia, any territory of the United States, and Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="10">“(10) </num><heading><inline class="smallCaps">State law</inline>.—</heading><subparagraph class="indentUp1 firstIndent1 fontsize10" role="definitions" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">“(A) </num><heading><inline class="smallCaps">In general</inline>.—</heading><content>The term ‘<term>State law</term>’ includes all laws, decisions, rules, regulations, or other State action having the effect of law, of any State.</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">“(B) </num><heading><inline class="smallCaps">Laws applicable in the district of columbia</inline>.—</heading><content>A law of the United States applicable only to or within the District of Columbia shall be treated as a State law rather than a law of the United States.”</content></subparagraph></paragraph></section>
</subtitle></quotedContent>.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e2891" identifier="/us/bill/114/hr/26/tII/s202/b" role="instruction" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">(b) </num><heading><inline class="smallCaps">Technical Amendment</inline>.—</heading><content>The table of contents for the Gramm-Leach-Bliley Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> the items relating to subtitle C of title III and <amendingAction type="insert">inserting</amendingAction> the following new items:<quotedContent><toc>
<referenceItem role="subtitle" style="-uslm-lc:I651174">
<designator>“Subtitle C—</designator>
<label>National Association of Registered Agents and Brokers</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 321. </designator>
<label>National Association of Registered Agents and Brokers.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 322. </designator>
<label>Purpose.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 323. </designator>
<label>Membership.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 324. </designator>
<label>Board of directors.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 325. </designator>
<label>Bylaws, standards, and disciplinary actions.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 326. </designator>
<label>Powers.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 327. </designator>
<label>Report by the Association.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 328. </designator>
<label>Liability of the Association and the Board members, officers, and employees of the Association.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 329. </designator>
<label>Presidential oversight.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 330. </designator>
<label>Relationship to State law.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 331. </designator>
<label>Coordination with financial industry regulatory authority.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 332. </designator>
<label>Right of action.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 333. </designator>
<label>Federal funding prohibited.</label>
</referenceItem><referenceItem role="section" style="-uslm-lc:I651142">
<designator>“Sec. 334. </designator>
<label>Definitions.”.</label>
</referenceItem></toc>
</quotedContent></content></subsection></section>
<num value="III">TITLE III—</num><heading>BUSINESS RISK MITIGATION AND PRICE STABILIZATION</heading>
<section id="d92427e2996" identifier="/us/bill/114/hr/26/tIII/s301" style="-uslm-lc:I650143"><num value="301">SEC. 301. </num><heading>SHORT TITLE.</heading><content style="-uslm-lc:I650120"> This title may be cited as the “<shortTitle role="title">Business Risk Mitigation and Price Stabilization Act of 2015</shortTitle>”.</content></section>
<section id="d92427e3006" identifier="/us/bill/114/hr/26/tIII/s302" style="-uslm-lc:I650143"><num value="302">SEC. 302. </num><heading>MARGIN REQUIREMENTS.</heading><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e3010" identifier="/us/bill/114/hr/26/tIII/s302/a" role="instruction" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="a">(a) </num><heading><inline class="smallCaps">Commodity Exchange Act Amendment</inline>.—</heading><content>Section 4s(e) of the Commodity Exchange Act (<ref href="/us/usc/t7/s6s/e">7 U.S.C. 6s(e)</ref>), as added by section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Applicability with respect to counterparties</inline>.—</heading><content>The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including the initial and variation margin requirements imposed by rules adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall not apply to a swap in which a counterparty qualifies for an exception under section 2(h)(7)(A), or an exemption issued under section 4(c)(1) from the requirements of section 2(h)(1)(A) for cooperative entities as defined in such exemption, or satisfies the criteria in section 2(h)(7)(D).”</content></paragraph></quotedContent>.</content></subsection><subsection class="indentUp0 firstIndent1 fontsize10" id="d92427e3038" identifier="/us/bill/114/hr/26/tIII/s302/b" role="instruction" style="-uslm-lc:I650120"><num style="-uslm-lc:emspace2" value="b">(b) </num><heading><inline class="smallCaps">Securities Exchange Act Amendment</inline>.—</heading><content>Section 15F(e) of the Securities Exchange Act of 1934 (<ref href="/us/usc/t15/s78o–10/e">15 U.S.C. 78o–10(e)</ref>), as added by section 764(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent><paragraph class="indentUp1 firstIndent1 fontsize10" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="4">“(4) </num><heading><inline class="smallCaps">Applicability with respect to counterparties</inline>.—</heading><content>The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap in which a counterparty qualifies for an exception under section 3C(g)(1) or satisfies the criteria in section 3C(g)(4).”</content></paragraph></quotedContent>.</content></subsection></section>
<section id="d92427e3067" identifier="/us/bill/114/hr/26/tIII/s303" style="-uslm-lc:I650143"><num value="303">SEC. 303. </num><heading>IMPLEMENTATION.</heading><chapeau class="indentUp0 firstIndent1 fontsize10" style="-uslm-lc:I650120"> The amendments made by this title to the Commodity Exchange Act shall be implemented—</chapeau><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e3073" identifier="/us/bill/114/hr/26/tIII/s303/1" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="1">(1) </num><chapeau>without regard to—</chapeau><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e3077" identifier="/us/bill/114/hr/26/tIII/s303/1/A" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="A">(A) </num><content><ref href="/us/usc/t44/ch35">chapter 35 of title 44, United States Code</ref>; and</content></subparagraph><subparagraph class="indentUp1 firstIndent1 fontsize10" id="d92427e3084" identifier="/us/bill/114/hr/26/tIII/s303/1/B" style="-uslm-lc:I650124"><num style="-uslm-lc:emspace2" value="B">(B) </num><content>the notice and comment provisions of <ref href="/us/usc/t5/s553">section 553 of title 5, United States Code</ref>;</content></subparagraph></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e3092" identifier="/us/bill/114/hr/26/tIII/s303/2" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="2">(2) </num><content>through the promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and</content></paragraph><paragraph class="indentUp1 firstIndent1 fontsize10" id="d92427e3096" identifier="/us/bill/114/hr/26/tIII/s303/3" style="-uslm-lc:I650122"><num style="-uslm-lc:emspace2" value="3">(3) </num><content>such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules and regulations, that are limited to and directly a consequence of such amendments.</content></paragraph></section>
Speaker of the House of Representatives.Vice President of the United States and President of the Senate.