[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1926 Engrossed in Senate (ES)]

113th CONGRESS
  2d Session
                                S. 1926

_______________________________________________________________________

                                 AN ACT


 
To delay the implementation of certain provisions of the Biggert-Waters 
     Flood Insurance Reform Act of 2012 and to reform the National 
 Association of Registered Agents and Brokers, 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. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
          TITLE I--HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Delayed implementation of flood insurance rate increases; 
                            draft affordability framework.
Sec. 104. Affordability study and report.
Sec. 105. Affordability study funding.
Sec. 106. Funds to reimburse homeowners for successful map appeals.
Sec. 107. Flood protection systems.
Sec. 108. Treatment of floodproofed residential basements.
Sec. 109. Designation of flood insurance advocate.
Sec. 110. Exceptions to escrow requirement for flood insurance 
                            payments.
Sec. 111. Monthly installment payments for premiums.
Sec. 112. Accounting for flood mitigation activities in estimates of 
                            premium rates.
Sec. 113. Home improvement fairness.
Sec. 114. Study of voluntary community-based flood insurance options.
Sec. 115. Exemption from fees for certain map change requests.
Sec. 116. Flood mitigation methods for urban buildings.
    TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS

Sec. 201. Short Title.
Sec. 202. Reestablishment of the National Association of Registered 
                            Agents and Brokers.

          TITLE I--HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Homeowner Flood Insurance 
Affordability Act of 2014''.

SEC. 102. DEFINITIONS.

    As used in this title, the following definitions shall apply:
            (1) Adjusted base flood elevation.--For purposes of rating 
        a floodproofed covered structure, the term ``adjusted base 
        flood elevation'' means the base flood elevation for a covered 
        structure on the applicable effective flood insurance rate map, 
        plus 1 foot.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Emergency Management Agency.
            (3) Affordability study.--The term ``affordability study'' 
        means the study required under section 100236 of the Biggert-
        Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 
        126 Stat. 957).
            (4) Applicable flood plain management measures.--The term 
        ``applicable flood plain management measures'' means flood 
        plain management measures adopted by a community under section 
        60.3(c) of title 44, Code of Federal Regulations.
            (5) Covered structure.--The term ``covered structure'' 
        means a residential structure--
                    (A) that is located in a community that has adopted 
                flood plain management measures that are approved by 
                the Federal Emergency Management Agency and that 
                satisfy the requirements for an exception for 
                floodproofed residential basements under section 
                60.6(c) of title 44, Code of Federal Regulations; and
                    (B) that was built in compliance with the 
                applicable flood plain management measures.
            (6) Draft affordability framework.--The term ``draft 
        affordability framework'' means the draft programmatic and 
        regulatory framework required to be prepared by the 
        Administrator and submitted to Congress under section 103(d) 
        addressing the issues of affordability of flood insurance sold 
        under the National Flood Insurance Program, including issues 
        identified in the affordability study.
            (7) Floodproofed elevation.--The term ``floodproofed 
        elevation'' means the height of floodproofing on a covered 
        structure, as identified on the Residential Basement 
        Floodproofing Certificate for the covered structure.
            (8) National flood insurance program.--The term ``National 
        Flood Insurance Program'' means the program established under 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
        seq.).

SEC. 103. DELAYED IMPLEMENTATION OF FLOOD INSURANCE RATE INCREASES; 
              DRAFT AFFORDABILITY FRAMEWORK.

    (a) Delayed Implementation of Flood Insurance Rate Increases.--
            (1) Grandfathered properties.--Beginning on the date of 
        enactment of this Act, the Administrator may not implement 
        section 1308(h) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4015(h)).
            (2) Pre-firm properties.--Beginning on the date of 
        enactment of this Act, the Administrator may not implement--
                    (A) section 1307(g)(1) of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4014(g)(1)); or
                    (B) section 1307(g)(3) of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4014(g)(3)) with 
                respect to any policy described in that section, 
                provided that the decision of the policy holder to 
                permit a lapse in flood insurance coverage was as a 
                result of the property covered by the policy no longer 
                being required to retain such coverage.
            (3) Expiration.--The prohibitions set forth under 
        paragraphs (1) and (2) shall expire 6 months after the later 
        of--
                    (A) the date on which the Administrator proposes 
                the draft affordability framework; or
                    (B) the date on which the Administrator certifies 
                in writing to Congress that the Federal Emergency 
                Management Agency has implemented a flood mapping 
                approach that, when applied, results in technically 
                credible flood hazard data in all areas where Flood 
                Insurance Rate Maps are prepared or updated.
    (b) Property Sale Trigger.--
            (1) In general.--Section 1307(g)(2) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014(g)(2)) is amended to read 
        as follows:
            ``(2) any property purchased after the expiration of the 6-
        month period set forth under section 103(a)(3) of the Homeowner 
        Flood Insurance Affordability Act of 2014;''.
            (2) Protection of subsidy for properties purchased on or 
        before expiration date.--Notwithstanding paragraph (1) or (3) 
        of section 1307(g) of the National Flood Insurance Act of 1968 
        (42 U.S.C. 4014(g)(1) and (3)), the Administrator may not 
        reduce the risk premium rate subsidy for flood insurance for a 
        property purchased on or before the expiration of the 6-month 
        period set forth under subsection (a)(3) of this section based 
        on the fact that--
                    (A) the property was not insured by the flood 
                insurance program as of the date of enactment of the 
                Biggert-Waters Flood Insurance Reform Act of 2012 
                (Public Law 112-141; 126 Stat. 916); or
                    (B) on or before the expiration of that 6-month 
                period, the policy for the property had lapsed in 
                coverage as a result of the deliberate choice of the 
                policy holder, provided that the decision of the policy 
                holder to permit a lapse in coverage was as a result of 
                the property no longer being required to retain such 
                coverage.
    (c) Treatment of Pre-FIRM Properties.--Beginning on the date of 
enactment of this Act and ending upon the expiration of the 6-month 
period set forth under subsection (a)(3), the Administrator shall 
restore the risk premium rate subsidies for flood insurance estimated 
under section 1307(a)(2) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4014(a)(2)) for any property--
            (1) with respect to which the Administrator may not, under 
        subsection (a)(2)(A) of this section, implement section 
        1307(g)(1) of the National Flood Insurance Act of 1968;
            (2) with respect to which the Administrator may not, under 
        subsection (a)(2)(B) of this section, implement section 
        1307(g)(3) of the National Flood Insurance Act of 1968; or
            (3) described in section 1307(g)(2) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014(g)(2)), as in effect on 
        the day before the date of enactment of this Act.
    (d) Draft Affordability Framework.--
            (1) In general.--The Administrator shall prepare a draft 
        affordability framework that proposes to address, via 
        programmatic and regulatory changes, the issues of 
        affordability of flood insurance sold under the National Flood 
        Insurance Program, including issues identified in the 
        affordability study.
            (2) Criteria.--In carrying out the requirements under 
        paragraph (1), the Administrator shall consider the following 
        criteria:
                    (A) Accurate communication to consumers of the 
                flood risk associated with their property.
                    (B) Targeted assistance to flood insurance policy 
                holders based on their financial ability to continue to 
                participate in the National Flood Insurance Program.
                    (C) Individual or community actions to mitigate the 
                risk of flood or lower the cost of flood insurance.
                    (D) The impact of increases in risk premium rates 
                on participation in the National Flood Insurance 
                Program.
                    (E) The impact flood insurance rate map updates 
                have on the affordability of flood insurance.
            (3) Deadline for submission.--Not later than 18 months 
        after the date on which the Administrator submits the 
        affordability study, the Administrator shall submit to the full 
        Committee on Banking, Housing, and Urban Affairs and the full 
        Committee on Appropriations of the Senate and the full 
        Committee on Financial Services and the full Committee on 
        Appropriations of the House of Representatives the draft 
        affordability framework.
    (e) Interagency Agreements.--The Administrator may enter into an 
agreement with another Federal agency to--
            (1) complete the affordability study; or
            (2) prepare the draft affordability framework.
    (f) Clear Communications.--The Administrator shall clearly 
communicate full flood risk determinations to individual property 
owners regardless of whether their premium rates are full actuarial 
rates.
    (g) Rule of Construction.--Nothing in this section shall be 
construed to provide the Administrator with the authority to provide 
assistance to homeowners based on affordability that was not available 
prior to the enactment of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (Public Law 112-141; 126 Stat. 916).
    (h) Disclosure.--
            (1) Change in rates under biggert-waters.--Not later than 
        the date that is 6 months before the date on which any change 
        in risk premium rates for flood insurance coverage under the 
        National Flood Insurance Program resulting from the amendment 
        made by section 100207 of the Biggert-Waters Flood Insurance 
        Reform Act of 2012 (Public Law 112-141; 126 Stat. 919) is 
        implemented, the Administrator shall make publicly available 
        the rate tables and underwriting guidelines that provide the 
        basis for the change.
            (2) Change in rates under this act.--Not later than the 
        date that is 6 months before the date on which any change in 
        risk premium rates for flood insurance coverage under the 
        National Flood Insurance Program resulting from this Act or any 
        amendment made by this Act is implemented, the Administrator 
        shall make publicly available the rate tables and underwriting 
        guidelines that provide the basis for the change.
            (3) Report on policy and claims data.--
                    (A) In general.--Not later than 90 days after the 
                date of enactment of this Act, the Administrator shall 
                submit to Congress a report on the feasibility of--
                            (i) releasing property-level policy and 
                        claims data for flood insurance coverage under 
                        the National Flood Insurance Program; and
                            (ii) establishing guidelines for releasing 
                        property-level policy and claims data for flood 
                        insurance coverage under the National Flood 
                        Insurance Program in accordance with section 
                        552a of title 5, United States Code (commonly 
                        known as the ``Privacy Act of 1974'').
                    (B) Contents.--The report submitted under 
                subparagraph (A) shall include--
                            (i) an analysis and assessment of how 
                        releasing property-level policy and claims data 
                        for flood insurance coverage under the National 
                        Flood Insurance Program will aid policy holders 
                        and insurers to understand how the 
                        Administration determines actuarial premium 
                        rates and assesses flood risks; and
                            (ii) recommendations for protecting 
                        personal information in accordance with section 
                        552a of title 5, United States Code (commonly 
                        known as the ``Privacy Act of 1974'').

SEC. 104. AFFORDABILITY STUDY AND REPORT.

    Notwithstanding the deadline under section 100236(c) of the 
Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 
126 Stat. 957), not later than 2 years after the date of enactment of 
this Act, the Administrator shall submit to the full Committee on 
Banking, Housing, and Urban Affairs and the full Committee on 
Appropriations of the Senate and the full Committee on Financial 
Services and the full Committee on Appropriations of the House of 
Representatives the affordability study and report required under such 
section.

SEC. 105. AFFORDABILITY STUDY FUNDING.

    Section 100236(d) of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (Public Law 112-141; 126 Stat. 957) is amended by striking 
``not more than $750,000'' and inserting ``such amounts as may be 
necessary''.

SEC. 106. FUNDS TO REIMBURSE HOMEOWNERS FOR SUCCESSFUL MAP APPEALS.

    (a) In General.--Section 1363(f) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4104(f)) is amended--
            (1) in the first sentence, by inserting after ``as the case 
        may be,'' the following: ``or, in the case of an appeal that is 
        resolved by submission of conflicting data to the Scientific 
        Resolution Panel provided for in section 1363A, the 
        community,''; and
            (2) by striking the second sentence and inserting the 
        following: ``The Administrator may use such amounts from the 
        National Flood Insurance Fund established under section 1310 as 
        may be necessary to carry out this subsection.''.
    (b) Conforming Amendment.--Section 1310(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) for carrying out section 1363(f).''.

SEC. 107. FLOOD PROTECTION SYSTEMS.

    (a) Adequate Progress on Construction of Flood Protection 
Systems.--Section 1307(e) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4014(e)) is amended--
            (1) in the first sentence, by inserting ``or 
        reconstruction'' after ``construction'';
            (2) by striking the second sentence and inserting the 
        following: ``The Administrator shall find that adequate 
        progress on the construction or reconstruction of a flood 
        protection system, based on the present value of the completed 
        flood protection system, has been made only if (1) 100 percent 
        of the cost of the system has been authorized, (2) at least 60 
        percent of the cost of the system has been appropriated, (3) at 
        least 50 percent of the cost of the system has been expended, 
        and (4) the system is at least 50 percent completed.''; and
            (3) by adding at the end the following: ``Notwithstanding 
        any other provision of law, in determining whether a community 
        has made adequate progress on the construction, reconstruction, 
        or improvement of a flood protection system, the Administrator 
        shall consider all sources of funding, including Federal, 
        State, and local funds.''.
    (b) Communities Restoring Disaccredited Flood Protection Systems.--
Section 1307(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4014(f)) is amended by striking the first sentence and inserting the 
following: ``Notwithstanding any other provision of law, this 
subsection shall apply to riverine and coastal levees that are located 
in a community which has been determined by the Administrator of the 
Federal Emergency Management Agency to be in the process of restoring 
flood protection afforded by a flood protection system that had been 
previously accredited on a Flood Insurance Rate Map as providing 100-
year frequency flood protection but no longer does so, and shall apply 
without regard to the level of Federal funding of or participation in 
the construction, reconstruction, or improvement of the flood 
protection system.''.

SEC. 108. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS.

    In implementing section 1308(h) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(h)), the Administrator shall rate a covered 
structure using the elevation difference between the floodproofed 
elevation of the covered structure and the adjusted base flood 
elevation of the covered structure.

SEC. 109. DESIGNATION OF FLOOD INSURANCE ADVOCATE.

    (a) In General.--The Administrator shall designate a Flood 
Insurance Advocate to advocate for the fair treatment of policy holders 
under the National Flood Insurance Program and property owners in the 
mapping of flood hazards, the identification of risks from flood, and 
the implementation of measures to minimize the risk of flood.
    (b) Duties and Responsibilities.--The duties and responsibilities 
of the Flood Insurance Advocate designated under subsection (a) shall 
be to--
            (1) educate property owners and policyholders under the 
        National Flood Insurance Program on--
                    (A) individual flood risks;
                    (B) flood mitigation;
                    (C) measures to reduce flood insurance rates 
                through effective mitigation; and
                    (D) the flood insurance rate map review and 
                amendment process;
            (2) assist policy holders under the National Flood 
        Insurance Program and property owners to understand the 
        procedural requirements related to appealing preliminary flood 
        insurance rate maps and implementing measures to mitigate 
        evolving flood risks;
            (3) assist in the development of regional capacity to 
        respond to individual constituent concerns about flood 
        insurance rate map amendments and revisions;
            (4) coordinate outreach and education with local officials 
        and community leaders in areas impacted by proposed flood 
        insurance rate map amendments and revisions; and
            (5) aid potential policy holders under the National Flood 
        Insurance Program in obtaining and verifying accurate and 
        reliable flood insurance rate information when purchasing or 
        renewing a flood insurance policy.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year such sums as may be necessary to 
carry out the duties and responsibilities of the Flood Insurance 
Advocate.

SEC. 110. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE 
              PAYMENTS.

    (a) In General.--Section 102(d)(1) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
            (1) in subparagraph (A), in the second sentence, by 
        striking ``subparagraph (C)'' and inserting ``subparagraph 
        (B)''; and
            (2) in subparagraph (B)--
                    (A) in clause (ii), by redesignating subclauses (I) 
                and (II) as items (aa) and (bb), respectively, and 
                adjusting the margins accordingly;
                    (B) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and adjusting 
                the margins accordingly;
                    (C) in the matter preceding subclause (I), as 
                redesignated by subparagraph (B), by striking ``(A) or 
                (B), if--'' and inserting the following: ``(A)--
                            ``(i) if--'';
                    (D) by striking the period at the end and inserting 
                ``; or''; and
                    (E) by adding at the end the following
                            ``(ii) in the case of a loan that--
                                    ``(I) is in a junior or subordinate 
                                position to a senior lien secured by 
                                the same residential improved real 
                                estate or mobile home for which flood 
                                insurance is being provided at the time 
                                of the origination of the loan;
                                    ``(II) is secured by residential 
                                improved real estate or a mobile home 
                                that is part of a condominium, 
                                cooperative, or other project 
                                development, if the residential 
                                improved real estate or mobile home is 
                                covered by a flood insurance policy 
                                that--
                                            ``(aa) meets the 
                                        requirements that the regulated 
                                        lending institution is required 
                                        to enforce under subsection 
                                        (b)(1);
                                            ``(bb) is provided by the 
                                        condominium association, 
                                        cooperative, homeowners 
                                        association, or other 
                                        applicable group; and
                                            ``(cc) the premium for 
                                        which is paid by the 
                                        condominium association, 
                                        cooperative, homeowners 
                                        association, or other 
                                        applicable group as a common 
                                        expense;
                                    ``(III) is secured by residential 
                                improved real estate or a mobile home 
                                that is used as collateral for a 
                                business purpose;
                                    ``(IV) is a home equity line of 
                                credit;
                                    ``(V) is a nonperforming loan; or
                                    ``(VI) has a term of not longer 
                                than 12 months.''.
    (b) Applicability.--
            (1) In general.--
                    (A) Required application.--The amendments to 
                section 102(d)(1) of the Flood Disaster Protection Act 
                of 1973 (42 U.S.C. 4012a(d)(1)) made by section 
                100209(a) of the Biggert-Waters Flood Insurance Reform 
                Act of 2012 (Public Law 112-141; 126 Stat. 920) and by 
                subsection (a) of this section shall apply to any loan 
                that is originated, refinanced, increased, extended, or 
                renewed on or after January 1, 2016.
                    (B) Optional application.--
                            (i) Definitions.--In this subparagraph--
                                    (I) the terms ``Federal entity for 
                                lending regulation'', ``improved real 
                                estate'', ``regulated lending 
                                institution'', and ``servicer'' have 
                                the meanings given the terms in section 
                                3 of the Flood Disaster Protection Act 
                                of 1973 (42 U.S.C. 4003);
                                    (II) the term ``outstanding loan'' 
                                means a loan that--
                                            (aa) is outstanding as of 
                                        January 1, 2016;
                                            (bb) is not subject to the 
                                        requirement to escrow premiums 
                                        and fees for flood insurance 
                                        under section 102(d)(1) of the 
                                        Flood Disaster Protection Act 
                                        of 1973 (42 U.S.C. 4012a(d)(1)) 
                                        as in effect on July 5, 2012; 
                                        and
                                            (cc) would, if the loan had 
                                        been originated, refinanced, 
                                        increased, extended, or renewed 
                                        on or after January 1, 2016, be 
                                        subject to the requirements 
                                        under section 102(d)(1)(A) of 
                                        the Flood Disaster Protection 
                                        Act of 1973, as amended; and
                                    (III) the term ``section 
                                102(d)(1)(A) of the Flood Disaster 
                                Protection Act of 1973, as amended'' 
                                means section 102(d)(1)(A) of the Flood 
                                Disaster Protection Act of 1973 (42 
                                U.S.C. 4012a(d)(1)(A)), as amended by--
                                            (aa) section 100209(a) of 
                                        the Biggert-Waters Flood 
                                        Insurance Reform Act of 2012 
                                        (Public Law 112-141; 126 Stat. 
                                        920); and
                                            (bb) subsection (a) of this 
                                        section.
                            (ii) Option to escrow flood insurance 
                        payments.--Each Federal entity for lending 
                        regulation (after consultation and coordination 
                        with the Federal Financial Institutions 
                        Examination Council) shall, by regulation, 
                        direct that each regulated lending institution 
                        or servicer of an outstanding loan shall offer 
                        and make available to a borrower the option to 
                        have the borrower's payment of premiums and 
                        fees for flood insurance under the National 
                        Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
                        seq.), including the escrow of such payments, 
                        be treated in the same manner provided under 
                        section 102(d)(1)(A) of the Flood Disaster 
                        Protection Act of 1973, as amended.
            (2) Repeal of 2-year delay on applicability.--Subsection 
        (b) of section 100209 of the Biggert-Waters Flood Insurance 
        Reform Act of 2012 (Public Law 112-141; 126 Stat. 920) is 
        repealed.
            (3) Rule of construction.--Nothing in this section or the 
        amendments made by this section shall be construed to 
        supersede, during the period beginning on July 6, 2012 and 
        ending on December 31, 2015, the requirements under section 
        102(d)(1) of the Flood Disaster Protection Act of 1973 (42 
        U.S.C. 4012a(d)(1)), as in effect on July 5, 2012.

SEC. 111. MONTHLY INSTALLMENT PAYMENTS FOR PREMIUMS.

    Section 1308(g) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(g)) is amended by striking ``either annually or in more 
frequent installments'' and inserting ``annually, monthly, or in other 
installments that are more frequent than annually''.

SEC. 112. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN ESTIMATES OF 
              PREMIUM RATES.

    Section 1307(a)(1) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4014(a)(1)) is amended by amending subparagraph (A) to read as 
follows:
                    ``(A) based on consideration of--
                            ``(i) the risk involved and accepted 
                        actuarial principles; and
                            ``(ii) the flood mitigation activities that 
                        an owner or lessee has undertaken on a 
                        property, including differences in the risk 
                        involved due to land use measures, 
                        floodproofing, flood forecasting, and similar 
                        measures,''.

SEC. 113. HOME IMPROVEMENT FAIRNESS.

    Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ``30 
percent'' and inserting ``50 percent''.

SEC. 114. STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS.

    (a) Study.--
            (1) Study required.--The Administrator shall conduct a 
        study to assess options, methods, and strategies for making 
        available voluntary community-based flood insurance policies 
        through the National Flood Insurance Program.
            (2) Considerations.--The study conducted under paragraph 
        (1) shall--
                    (A) take into consideration and analyze how 
                voluntary community-based flood insurance policies--
                            (i) would affect communities having varying 
                        economic bases, geographic locations, flood 
                        hazard characteristics or classifications, and 
                        flood management approaches; and
                            (ii) could satisfy the applicable 
                        requirements under section 102 of the Flood 
                        Disaster Protection Act of 1973 (42 U.S.C. 
                        4012a); and
                    (B) evaluate the advisability of making available 
                voluntary community-based flood insurance policies to 
                communities, subdivisions of communities, and areas of 
                residual risk.
            (3) Consultation.--In conducting the study required under 
        paragraph (1), the Administrator may consult with the 
        Comptroller General of the United States, as the Administrator 
        determines is appropriate.
    (b) Report by the Administrator.--
            (1) Report required.--Not later than 18 months after the 
        date of enactment of this Act, the Administrator shall submit 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives a report that contains the results and 
        conclusions of the study conducted under subsection (a).
            (2) Contents.--The report submitted under paragraph (1) 
        shall include recommendations for--
                    (A) the best manner to incorporate voluntary 
                community-based flood insurance policies into the 
                National Flood Insurance Program; and
                    (B) a strategy to implement voluntary community-
                based flood insurance policies that would encourage 
                communities to undertake flood mitigation activities, 
                including the construction, reconstruction, or 
                improvement of levees, dams, or other flood control 
                structures.
    (c) Report by Comptroller General.--Not later than 6 months after 
the date on which the Administrator submits the report required under 
subsection (b), the Comptroller General of the United States shall--
            (1) review the report submitted by the Administrator; and
            (2) submit to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report that contains--
                    (A) an analysis of the report submitted by the 
                Administrator;
                    (B) any comments or recommendations of the 
                Comptroller General relating to the report submitted by 
                the Administrator; and
                    (C) any other recommendations of the Comptroller 
                General relating to community-based flood insurance 
                policies.

SEC. 115. EXEMPTION FROM FEES FOR CERTAIN MAP CHANGE REQUESTS.

    Notwithstanding any other provision of law, a requester shall be 
exempt from submitting a review or processing fee for a request for a 
flood insurance rate map change based on a habitat restoration project 
that is funded in whole or in part with Federal or State funds, 
including dam removal, culvert redesign or installation, or the 
installation of fish passage.

SEC. 116. FLOOD MITIGATION METHODS FOR URBAN BUILDINGS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall issue guidelines for property 
owners that--
            (1) provide alternative methods of mitigation, other than 
        building elevation, to reduce flood risk to urban residential 
        buildings that cannot be elevated due to their structural 
        characteristics, including--
                    (A) types of building materials; and
                    (B) types of floodproofing; and
            (2) inform property owners about how the implementation of 
        mitigation methods described in paragraph (1) may affect risk 
        premium rates for flood insurance coverage under the National 
        Flood Insurance Program.
    (b) Calculation of Risk Premium Rates.--In calculating the risk 
premium rate charged for flood insurance for a property under section 
1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015), the 
Administrator shall take into account the implementation of any 
mitigation method identified by the Administrator in the guidance 
issued under subsection (a) of this section.

    TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``National Association of Registered 
Agents and Brokers Reform Act of 2014''.

SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF REGISTERED 
              AGENTS AND BROKERS.

    (a) In General.--Subtitle C of title III of the Gramm-Leach-Bliley 
Act (15 U.S.C. 6751 et seq.) is amended to read as follows:

  ``Subtitle C--National Association of Registered Agents and Brokers

``SEC. 321. NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS.

    ``(a) Establishment.--There is established the National Association 
of Registered Agents and Brokers (referred to in this subtitle as the 
Association).
    ``(b) Status.--The Association shall--
            ``(1) be a nonprofit corporation;
            ``(2) not be an agent or instrumentality of the Federal 
        Government;
            ``(3) be an independent organization that may not be merged 
        with or into any other private or public entity; and
            ``(4) 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.

``SEC. 322. PURPOSE.

    ``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--
            ``(1) licensing, continuing education, and other 
        qualification requirements of insurance producers that are not 
        members of the Association;
            ``(2) resident or nonresident insurance producer 
        appointment requirements;
            ``(3) supervising and disciplining resident and nonresident 
        insurance producers;
            ``(4) establishing licensing fees for resident and 
        nonresident insurance producers so that there is no loss of 
        insurance producer licensing revenue to the State; and
            ``(5) prescribing and enforcing laws and regulations 
        regulating the conduct of resident and nonresident insurance 
        producers.

``SEC. 323. MEMBERSHIP.

    ``(a) Eligibility.--
            ``(1) In general.--Any insurance producer licensed in its 
        home State shall, subject to paragraphs (2) and (4), be 
        eligible to become a member of the Association.
            ``(2) Ineligibility for suspension or revocation of 
        license.--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.
            ``(3) Resumption of eligibility.--Paragraph (2) shall cease 
        to apply to any insurance producer if--
                    ``(A) 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
                    ``(B) the suspension or revocation expires or is 
                subsequently overturned by a court of competent 
                jurisdiction.
            ``(4) Criminal history record check required.--
                    ``(A) In general.--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).
                    ``(B) Criminal history record check requested by 
                home state.--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).
                    ``(C) Criminal history record check requested by 
                association.--
                            ``(i) In general.--The Association shall, 
                        upon request by an insurance producer licensed 
                        in a State, submit 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.
                            ``(ii) Procedures.--The board of directors 
                        of the Association (referred to in this 
                        subtitle as the Board) shall prescribe 
                        procedures for obtaining and utilizing 
                        identification information and criminal history 
                        record information, including the establishment 
                        of reasonable fees required to perform a 
                        criminal history record check and appropriate 
                        safeguards for maintaining confidentiality and 
                        security of the information.
                    ``(D) Form of request.--A submission under 
                subparagraph (C)(i) shall include such 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.
                    ``(E) Provision of information by attorney 
                general.--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 identification 
                information provided under subparagraph (D) and provide 
                all criminal history record information included in the 
                request to the Association.
                    ``(F) Limitation on permissible uses of 
                information.--Any information provided to the 
                Association under subparagraph (E) may only--
                            ``(i) be used for purposes of determining 
                        compliance with membership criteria established 
                        by the Association;
                            ``(ii) be disclosed to State insurance 
                        regulators, or Federal or State law enforcement 
                        agencies, in conformance with applicable law; 
                        or
                            ``(iii) be disclosed, upon request, to the 
                        insurance producer to whom the criminal history 
                        record information relates.
                    ``(G) Penalty for improper use or disclosure.--
                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 
                under title 18, United States Code, imprisoned for not 
                more than 2 years, or both.
                    ``(H) Reliance on information.--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.
                    ``(I) Fees.--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.
                    ``(J) Rule of construction.--Nothing in this 
                paragraph shall be construed as--
                            ``(i) requiring a State insurance regulator 
                        to perform criminal history record checks under 
                        this section; or
                            ``(ii) limiting any other authority that 
                        allows access to criminal history records.
                    ``(K) Regulations.--The Attorney General shall 
                prescribe regulations to carry out this paragraph, 
                which shall include--
                            ``(i) appropriate protections for ensuring 
                        the confidentiality of information provided 
                        under subparagraph (E); and
                            ``(ii) procedures providing a reasonable 
                        opportunity for an insurance producer to 
                        contest the accuracy of information regarding 
                        the insurance producer provided under 
                        subparagraph (E).
                    ``(L) Ineligibility for membership.--
                            ``(i) In general.--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).
                            ``(ii) Rights of applicants denied 
                        membership.--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--
                                    ``(I) obtain a copy of all criminal 
                                history record information provided to 
                                the Association under subparagraph (E) 
                                with respect to the insurance producer; 
                                and
                                    ``(II) challenge the denial of 
                                membership based on the accuracy and 
                                completeness of the information.
                    ``(M) Definition.--For purposes of this paragraph, 
                the term criminal history record check means a national 
                background check of criminal history records of the 
                Federal Bureau of Investigation.
    ``(b) Authority To Establish Membership Criteria.--The Association 
may establish membership criteria that bear a reasonable relationship 
to the purposes for which the Association was established.
    ``(c) Establishment of Classes and Categories of Membership.--
            ``(1) Classes of membership.--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.
            ``(2) Business entities.--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, rules, and 
        regulations of any State in which the business entity seeks to 
        do business on the basis of Association membership.
            ``(3) Categories.--
                    ``(A) Separate categories for insurance producers 
                permitted.--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.
                    ``(B) Separate treatment for depository 
                institutions prohibited.--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.
    ``(d) Membership Criteria.--
            ``(1) In general.--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.
            ``(2) Qualifications.--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 
        2014, and shall consider the highest levels of insurance 
        producer qualifications established under the licensing laws of 
        the States.
            ``(3) Assistance from states.--
                    ``(A) In general.--The Association may request a 
                State to provide assistance in investigating and 
                evaluating the eligibility of a prospective member for 
                membership in the Association.
                    ``(B) Authorization of information sharing.--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--
                            ``(i) the State to share information with 
                        the Association; and
                            ``(ii) the Association to receive the 
                        information.
                    ``(C) Rule of construction.--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.
            ``(4) Denial of membership.--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.
    ``(e) Effect of Membership.--
            ``(1) Authority of association members.--Membership in the 
        Association shall--
                    ``(A) 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;
                    ``(B) 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
                    ``(C) 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).
            ``(2) Violent crime control and law enforcement act of 
        1994.--Nothing in this subtitle shall be construed to alter, 
        modify, or supercede any requirement established by section 
        1033 of title 18, United States Code.
            ``(3) Agent for remitting fees.--The Association shall act 
        as an agent for any member for purposes of remitting licensing 
        fees to any State pursuant to paragraph (1).
            ``(4) Notification of action.--
                    ``(A) In general.--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.
                    ``(B) Ongoing disclosures required.--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.
            ``(5) Preservation of consumer protection and market 
        conduct regulation.--
                    ``(A) In general.--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.
                    ``(B) Preserved regulations.--The laws, 
                regulations, provisions, or other actions of any State 
                referred to in subparagraph (A) include laws, 
                regulations, provisions, or other actions that--
                            ``(i) regulate market conduct, insurance 
                        producer conduct, or unfair trade practices;
                            ``(ii) establish consumer protections; or
                            ``(iii) require insurance producers to be 
                        appointed by a licensed or authorized insurer.
    ``(f) Biennial Renewal.--Membership in the Association shall be 
renewed on a biennial basis.
    ``(g) Continuing Education.--
            ``(1) In general.--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.
            ``(2) State continuing education requirements.--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.
            ``(3) Reciprocity.--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.
            ``(4) Limitation on the association.--The Association shall 
        not directly or indirectly offer any continuing education 
        courses for insurance producers.
    ``(h) Probation, Suspension and Revocation.--
            ``(1) Disciplinary action.--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--
                    ``(A) the insurance producer fails to meet the 
                applicable membership criteria or other standards 
                established by the Association;
                    ``(B) the insurance producer has been subject to 
                disciplinary action pursuant to a final adjudicatory 
                proceeding under the jurisdiction of a State insurance 
                regulator;
                    ``(C) an insurance license held by the insurance 
                producer has been suspended or revoked by a State 
                insurance regulator; or
                    ``(D) 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.
            ``(2) Violations of association standards.--The Association 
        shall have the power to investigate alleged violations of 
        Association standards.
            ``(3) Reporting.--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.
    ``(i) Consumer Complaints.--
            ``(1) In general.--The Association shall--
                    ``(A) 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
                    ``(B) make any related records and information 
                available to each State insurance regulator to whom the 
                complaint is forwarded.
            ``(2) Telephone and other access.--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.
            ``(3) Final disposition of investigation.--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.
    ``(j) Information Sharing.--The Association may--
            ``(1) 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 referenced in 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;
            ``(2) 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;
            ``(3) 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
            ``(4) 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.
    ``(k) Effective Date.--The provisions of this section shall take 
effect on the later of--
            ``(1) 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 2014; and
            ``(2) the date of incorporation of the Association.

``SEC. 324. BOARD OF DIRECTORS.

    ``(a) Establishment.--There is established a board of directors of 
the Association, which shall have authority to govern and supervise all 
activities of the Association.
    ``(b) Powers.--The Board shall have such of the powers and 
authority of the Association as may be specified in the bylaws of the 
Association.
    ``(c) Composition.--
            ``(1) In general.--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--
                    ``(A) 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;
                    ``(B) 3 shall have demonstrated expertise and 
                experience with property and casualty insurance 
                producer licensing; and
                    ``(C) 2 shall have demonstrated expertise and 
                experience with life or health insurance producer 
                licensing.
            ``(2) State insurance regulator representatives.--
                    ``(A) Recommendations.--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.
                    ``(B) Political affiliation.--Not more than 4 Board 
                members appointed under paragraph (1)(A) shall belong 
                to the same political party.
                    ``(C) Former state insurance commissioners.--
                            ``(i) In general.--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.
                            ``(ii) Limitation.--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.
                    ``(D) Service through term.--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.
            ``(3) Private sector representatives.--In making any 
        appointment pursuant to subparagraphs (B) and (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.
            ``(4) State insurance commissioner defined.--For purposes 
        of this subsection, the term State insurance commissioner 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.
    ``(d) Terms.--
            ``(1) In general.--Except as provided under paragraph (2), 
        the term of service for each Board member shall be 2 years.
            ``(2) Exceptions.--
                    ``(A) 1-year terms.--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--
                            ``(i) 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;
                            ``(ii) 1 of the Board members initially 
                        appointed under paragraph (1)(B); and
                            ``(iii) 1 of the Board members initially 
                        appointed under paragraph (1)(C).
                    ``(B) Expiration of term.--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.
                    ``(C) Mid-term appointments.--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.
            ``(3) Successive terms.--Board members may be reappointed 
        to successive terms.
    ``(e) Initial Appointments.--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 2014.
    ``(f) Meetings.--
            ``(1) In general.--The Board shall meet--
                    ``(A) at the call of the chairperson;
                    ``(B) as requested in writing to the chairperson by 
                not fewer than 5 Board members; or
                    ``(C) as otherwise provided by the bylaws of the 
                Association.
            ``(2) Quorum required.--A majority of all Board members 
        shall constitute a quorum.
            ``(3) Voting.--Decisions of the Board shall require the 
        approval of a majority of all Board members present at a 
        meeting, a quorum being present.
            ``(4) Initial meeting.--The Board shall hold its first 
        meeting not later than 45 days after the date on which all 
        initial Board members have been appointed.
    ``(g) Restriction on Confidential Information.--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.
    ``(h) Ethics and Conflicts of Interest.--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--
            ``(1) engaging in unethical conduct in the course of 
        performing Association duties;
            ``(2) 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;
            ``(3) 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;
            ``(4) making political contributions to any person or 
        entity on behalf of the Association; and
            ``(5) lobbying or paying a person to lobby on behalf of the 
        Association.
    ``(i) Compensation.--
            ``(1) In general.--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.
            ``(2) Travel expenses and per diem.--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 
        subchapter I of chapter 57 of title 5, United States Code, 
        while away from home or regular places of business in 
        performance of services for the Association.

``SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY ACTIONS.

    ``(a) Adoption and Amendment of Bylaws and Standards.--
            ``(1) Procedures.--The Association shall adopt procedures 
        for the adoption of bylaws and standards that are similar to 
        procedures under subchapter II of chapter 5 of title 5, United 
        States Code (commonly known as the Administrative Procedure 
        Act).
            ``(2) Copy required to be filed.--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.
            ``(3) Effective date.--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).
            ``(4) Rule of construction.--Nothing in this section shall 
        be construed to subject the Board or the Association to the 
        requirements of subchapter II of chapter 5 of title 5, United 
        States Code (commonly known as the Administrative Procedure 
        Act).
    ``(b) Disciplinary Action by the Association.--
            ``(1) Specification of charges.--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.
            ``(2) Supporting statement.--A determination to take 
        disciplinary action shall be supported by a statement setting 
        forth--
                    ``(A) any act or practice in which the member has 
                been found to have been engaged;
                    ``(B) the specific provision of this subtitle or 
                standard of the Association that any such act or 
                practice is deemed to violate; and
                    ``(C) the sanction imposed and the reason for the 
                sanction.
            ``(3) Ineligibility of private sector representatives.--
        Board members appointed pursuant to section 324(c)(3) may not--
                    ``(A) participate in any disciplinary action or be 
                counted toward establishing a quorum during a 
                disciplinary action; and
                    ``(B) have access to confidential information 
                concerning any disciplinary action.

``SEC. 326. POWERS.

    ``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--
            ``(1) establish and collect such membership fees as the 
        Association finds necessary to impose to cover the costs of its 
        operations;
            ``(2) adopt, amend, and repeal bylaws, procedures, or 
        standards governing the conduct of Association business and 
        performance of its duties;
            ``(3) establish procedures for providing notice and 
        opportunity for comment pursuant to section 325(a);
            ``(4) enter into and perform such agreements as necessary 
        to carry out the duties of the Association;
            ``(5) 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;
            ``(6) 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;
            ``(7) borrow money; and
            ``(8) 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.

``SEC. 327. REPORT BY THE ASSOCIATION.

    ``(a) In General.--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.
    ``(b) Financial Statements.--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.

``SEC. 328. LIABILITY OF THE ASSOCIATION AND THE BOARD MEMBERS, 
              OFFICERS, AND EMPLOYEES OF THE ASSOCIATION.

    ``(a) In General.--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.
    ``(b) Liability of Board Members, Officers, and Employees.--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.

``SEC. 329. PRESIDENTIAL OVERSIGHT.

    ``(a) Removal of Board.--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.
    ``(b) Removal of Board Member.--The President may remove a Board 
member only for neglect of duty or malfeasance in office.
    ``(c) Suspension of Bylaws and Standards and Prohibition of 
Actions.--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.

``SEC. 330. RELATIONSHIP TO STATE LAW.

    ``(a) Preemption of State Laws.--State laws, regulations, 
provisions, or other actions purporting to regulate insurance producers 
shall be preempted to the extent provided in subsection (b).
    ``(b) Prohibited Actions.--
            ``(1) In general.--No State shall--
                    ``(A) 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;
                    ``(B) 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
                    ``(C) impose any continuing education requirements 
                on any nonresident insurance producer that is a member 
                of the Association.
            ``(2) States other than a home state.--No State, other than 
        the home State of a member of the Association, shall--
                    ``(A) 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;
                    ``(B) 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;
                    ``(C) require that a member of the Association 
                submit to a criminal history record check as a 
                condition of doing business in the State; or
                    ``(D) 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.
            ``(3) Preservation of state disciplinary authority.--
        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.

``SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY REGULATORY AUTHORITY.

    ``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.

``SEC. 332. RIGHT OF ACTION.

    ``(a) Right of Action.--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.
    ``(b) Association Interpretations.--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.

``SEC. 333. FEDERAL FUNDING PROHIBITED.

    ``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.

``SEC. 334. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) Business entity.--The term business entity means a 
        corporation, association, partnership, limited liability 
        company, limited liability partnership, or other legal entity.
            ``(2) Depository institution.--The term depository 
        institution has the meaning as in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813).
            ``(3) Home state.--The term home State 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.
            ``(4) Insurance.--The term insurance means any product, 
        other than title insurance or bail bonds, defined or regulated 
        as insurance by the appropriate State insurance regulatory 
        authority.
            ``(5) Insurance producer.--The term insurance producer 
        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.
            ``(6) Insurer.--The term insurer has the meaning as in 
        section 313(e)(2)(B) of title 31, United States Code.
            ``(7) Principal place of business.--The term principal 
        place of business 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.
            ``(8) Principal place of residence.--The term principal 
        place of residence means the State in which an insurance 
        producer resides for the greatest number of days during a 
        calendar year.
            ``(9) State.--The term State 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.
            ``(10) State law.--
                    ``(A) In general.--The term State law includes all 
                laws, decisions, rules, regulations, or other State 
                action having the effect of law, of any State.
                    ``(B) Laws applicable in the district of 
                columbia.--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.''.
    (b) Technical Amendment.--The table of contents for the Gramm-
Leach-Bliley Act is amended by striking the items relating to subtitle 
C of title III and inserting the following new items:

  ``Subtitle C--National Association of Registered Agents and Brokers

``Sec. 321. National Association of Registered Agents and Brokers.
``Sec. 322. Purpose.
``Sec. 323. Membership.
``Sec. 324. Board of directors.
``Sec. 325. Bylaws, standards, and disciplinary actions.
``Sec. 326. Powers.
``Sec. 327. Report by the Association.
``Sec. 328. Liability of the Association and the Board members, 
                            officers, and employees of the Association.
``Sec. 329. Presidential oversight.
``Sec. 330. Relationship to State law.
``Sec. 331. Coordination with Financial Industry Regulatory Authority.
``Sec. 332. Right of action.
``Sec. 333. Federal funding prohibited.
``Sec. 334. Definitions.''.

            Passed the Senate January 30, 2014.

            Attest:

                                                             Secretary.
113th CONGRESS

  2d Session

                                S. 1926

_______________________________________________________________________

                                 AN ACT

To delay the implementation of certain provisions of the Biggert-Waters 
     Flood Insurance Reform Act of 2012 and to reform the National 
 Association of Registered Agents and Brokers, and for other purposes.