[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 26 Enrolled Bill (ENR)]
H.R.26
One Hundred Fourteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and fifteen
An Act
To 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. Short title and table of contents.
TITLE I--EXTENSION OF TERRORISM INSURANCE PROGRAM
Sec. 101. Extension of Terrorism Insurance Program.
Sec. 102. Federal share.
Sec. 103. Program trigger.
Sec. 104. Recoupment of Federal share of compensation under the program.
Sec. 105. Certification of acts of terrorism; consultation with
Secretary of Homeland Security.
Sec. 106. Technical amendments.
Sec. 107. Improving the certification process.
Sec. 108. GAO study.
Sec. 109. Membership of Board of Governors of the Federal Reserve
System.
Sec. 110. Advisory Committee on Risk-Sharing Mechanisms.
Sec. 111. Reporting of terrorism insurance data.
Sec. 112. Annual study of small insurer market competitiveness.
TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM
Sec. 201. Short title.
Sec. 202. Reestablishment of the National Association of Registered
Agents and Brokers.
TITLE III--BUSINESS RISK MITIGATION AND PRICE STABILIZATION
Sec. 301. Short title.
Sec. 302. Margin requirements.
Sec. 303. Implementation.
TITLE I--EXTENSION OF TERRORISM INSURANCE PROGRAM
SEC. 101. EXTENSION OF TERRORISM INSURANCE PROGRAM.
Section 108(a) of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note) is amended by striking ``December 31, 2014'' and
inserting ``December 31, 2020''.
SEC. 102. FEDERAL SHARE.
Section 103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002
(15 U.S.C. 6701 note) is amended by inserting ``and beginning on
January 1, 2016, shall decrease by 1 percentage point per calendar year
until equal to 80 percent'' after ``85 percent''.
SEC. 103. PROGRAM TRIGGER.
Subparagraph (B) of section 103(e)(1) (15 U.S.C. 6701 note) is
amended in the matter preceding clause (i)--
(1) by striking ``a certified act'' and inserting ``certified
acts'';
(2) by striking ``such certified act'' and inserting ``such
certified acts''; and
(3) by striking ``exceed'' and all that follows through clause
(ii) and inserting the following: ``exceed--
``(i) $100,000,000, with respect to such insured losses
occurring in calendar year 2015;
``(ii) $120,000,000, with respect to such insured
losses occurring in calendar year 2016;
``(iii) $140,000,000, with respect to such insured
losses occurring in calendar year 2017;
``(iv) $160,000,000, with respect to such insured
losses occurring in calendar year 2018;
``(v) $180,000,000, with respect to such insured losses
occurring in calendar year 2019; and
``(vi) $200,000,000, with respect to such insured
losses occurring in calendar year 2020 and any calendar
year thereafter.''.
SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COMPENSATION UNDER THE
PROGRAM.
Section 103(e) of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note) is amended--
(1) by amending paragraph (6) to read as follows:
``(6) Insurance marketplace aggregate retention amount.--
``(A) In general.--For purposes of paragraph (7), the
insurance marketplace aggregate retention amount shall be the
lesser of--
``(i) $27,500,000,000, as such amount is revised
pursuant to this paragraph; and
``(ii) the aggregate amount, for all insurers, of
insured losses during such calendar year.
``(B) Revision of insurance marketplace aggregate retention
amount.--
``(i) Phase-in.--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.
``(ii) Further revision.--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).
``(C) Rulemaking.--Not later than 3 years after the date of
enactment of the Terrorism Risk Insurance Program
Reauthorization Act of 2015, the Secretary shall--
``(i) issue final rules for determining the amount of
the sum described under subparagraph (B)(ii); and
``(ii) provide a timeline for public notification of
such determination.''; and
(2) in paragraph (7)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking
``for each of the periods referred to in subparagraphs (A)
through (E) of paragraph (6)''; and
(ii) in clause (i), by striking ``for such period'';
(B) by striking subparagraph (B) and inserting the
following:
``(B) [Reserved.]'';
(C) in subparagraph (C)--
(i) by striking ``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'' and inserting ``, terrorism
loss risk-spreading premiums in an amount equal to 140
percent''; and
(ii) by inserting ``as calculated under subparagraph
(A)'' after ``mandatory recoupment amount''; and
(D) in subparagraph (E)(i)--
(i) in subclause (I)--
(I) by striking ``2010'' and inserting ``2017'';
and
(II) by striking ``2012'' and inserting ``2019'';
(ii) in subclause (II)--
(I) by striking ``2011'' and inserting ``2018'';
(II) by striking ``2012'' and inserting ``2019'';
and
(III) by striking ``2017'' and inserting ``2024'';
and
(iii) in subclause (III)--
(I) by striking ``2012'' and inserting ``2019'';
and
(II) by striking ``2017'' and inserting ``2024''.
SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CONSULTATION WITH
SECRETARY OF HOMELAND SECURITY.
Paragraph (1)(A) of section 102 (15 U.S.C. 6701 note) is amended in
the matter preceding clause (i), by striking ``concurrence with the
Secretary of State'' and inserting ``consultation with the Secretary of
Homeland Security''.
SEC. 106. TECHNICAL AMENDMENTS.
The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is
amended--
(1) in section 102--
(A) in paragraph (3)--
(i) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(ii) in the matter preceding clause (i) (as so
redesignated), by striking ``An entity has'' and inserting
the following:
``(A) In general.--An entity has''; and
(iii) by adding at the end the following new
subparagraph:
``(B) Rule of construction.--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).'';
(B) in paragraph (7)--
(i) by striking subparagraphs (A) through (F) and
inserting the following:
``(A) the value of an insurer's direct earned premiums
during the immediately preceding calendar year, multiplied by
20 percent; and'';
(ii) by redesignating subparagraph (G) as subparagraph
(B); and
(iii) in subparagraph (B), as so redesignated by clause
(ii)--
(I) by striking ``notwithstanding subparagraphs (A)
through (F), for the Transition Period or any Program
Year'' and inserting ``notwithstanding subparagraph
(A), for any calendar year''; and
(II) by striking ``Period or Program Year'' and
inserting ``calendar year'';
(C) by striking paragraph (11); and
(D) by redesignating paragraphs (12) through (16) as
paragraphs (11) through (15), respectively; and
(2) in section 103--
(A) in subsection (b)(2)--
(i) in subparagraph (B), by striking ``, purchase,'';
and
(ii) in subparagraph (C), by striking ``, purchase,'';
(B) in subsection (c), by striking ``Program Year'' and
inserting ``calendar year'';
(C) in subsection (e)--
(i) in paragraph (1)(A), as previously amended by
section 102--
(I) by striking ``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'' and inserting ``each calendar year'';
(II) by striking the comma after ``80 percent'';
and
(III) by striking ``such Transition Period or such
Program Year'' and inserting ``such calendar year'';
(ii) in paragraph (2)(A), by striking ``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'' and inserting ``a calendar
year''; and
(iii) in paragraph (3), by striking ``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'' and inserting ``any calendar year'';
and
(D) in subsection (g)(2)--
(i) by striking ``the Transition Period or a Program
Year'' each place that term appears and inserting ``the
calendar year'';
(ii) by striking ``such period'' and inserting ``the
calendar year''; and
(iii) by striking ``that period'' and inserting ``the
calendar year''.
SEC. 107. IMPROVING THE CERTIFICATION PROCESS.
(a) Definitions.--As used in this section--
(1) the term ``act of terrorism'' has the same meaning as in
section 102(1) of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note);
(2) the term ``certification process'' 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 (15 U.S.C. 6701 note); and
(3) the term ``Secretary'' means the Secretary of the Treasury.
(b) Study.--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.
(c) Required Content.--The study required under subsection (a)
shall include an examination and analysis of--
(1) 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;
(2) 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;
(3) 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;
(4) the appropriateness, efficiency, and effectiveness of the
consultation process required under section 102(1)(A) of the
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) and any
recommendations on changes to the consultation process; and
(5) 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.
(d) Report.--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.
(e) Rulemaking.--Section 102(1) of the Terrorism Risk Insurance Act
of 2002 (15 U.S.C. 6701 note) is amended--
(1) by redesignating subparagraph (D) as subparagraph (E); and
(2) by inserting after subparagraph (C) the following:
``(D) Timing of certification.--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.''.
SEC. 108. GAO STUDY.
(a) Study.--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--
(1) assessing and collecting upfront premiums on insurers that
participate in the Terrorism Insurance Program established under
the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note)
(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
(2) 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.
(b) Required Content.--The study required under subsection (a)
shall examine, but shall not be limited to, the following issues:
(1) Upfront premiums.--With respect to upfront premiums
described in subsection (a)(1)--
(A) how the Federal Government could determine the price of
such upfront premiums on insurers that participate in the
Program;
(B) how the Federal Government could collect and manage
such upfront premiums;
(C) how the Federal Government could ensure that such
upfront premiums are not spent for purposes other than claims
through the Program;
(D) 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;
(E) the effect of collecting such upfront premiums on
insurers both large and small;
(F) the effect of collecting such upfront premiums on the
private market for terrorism risk reinsurance; and
(G) 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.
(2) Capital reserve fund.--With respect to the capital reserve
fund described in subsection (a)(2)--
(A) 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;
(B) how a capital reserve fund would impact insurers and
reinsurers, including liquidity, insurance pricing, and
capacity to provide terrorism risk coverage;
(C) the feasibility of segregating funds attributable to
terrorism risk from funds attributable to other insurance
lines;
(D) how a capital reserve fund would be viewed and treated
under current Financial Accounting Standards Board accounting
rules and the tax laws; and
(E) how a capital reserve fund would affect the States'
ability to regulate insurers participating in the Program.
(3) International practices.--With respect to international
markets referred to in paragraphs (1) and (2) of subsection (a),
how other countries, if any--
(A) have established terrorism insurance structures;
(B) charge premiums or otherwise collect funds to pay for
the costs of terrorism insurance structures, including risk and
administrative costs; and
(C) have established capital reserve funds to pay for the
costs of terrorism insurance structures.
(c) Report.--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.
(d) Public Availability.--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.
SEC. 109. MEMBERSHIP OF BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM.
(a) In General.--The first undesignated paragraph of section 10 of
the Federal Reserve Act (12 U.S.C. 241) is amended by inserting after
the second sentence the following: ``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.''.
(b) Effective Date.--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.
SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS.
(a) Finding; Rule of Construction.--
(1) Finding.--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.
(2) Rule of construction.--Nothing in this Act, any amendment
made by this Act, or the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note) shall prohibit insurers from developing risk-
sharing mechanisms to voluntarily reinsure terrorism losses between
and among themselves.
(b) Advisory Committee on Risk-Sharing Mechanisms.--
(1) Establishment.--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'').
(2) Duties.--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).
(3) Membership.--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.
SEC. 111. REPORTING OF TERRORISM INSURANCE DATA.
Section 104 (15 U.S.C. 6701 note) is amended by adding at the end
the following new subsection:
``(h) Reporting of Terrorism Insurance Data.--
``(1) Authority.--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--
``(A) lines of insurance with exposure to such losses;
``(B) premiums earned on such coverage;
``(C) geographical location of exposures;
``(D) pricing of such coverage;
``(E) the take-up rate for such coverage;
``(F) the amount of private reinsurance for acts of
terrorism purchased; and
``(G) such other matters as the Secretary considers
appropriate.
``(2) Reports.--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--
``(A) an analysis of the overall effectiveness of the
Program;
``(B) an evaluation of any changes or trends in the data
collected under paragraph (1);
``(C) 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;
``(D) an evaluation of the impact of the Program on
workers' compensation insurers; and
``(E) in the case of the data reported in paragraph (1)(B),
an updated estimate of the total amount earned since January 1,
2003.
``(3) Protection of data.--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.
``(4) Advance coordination.--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.
``(5) Confidentiality.--
``(A) Retention of privilege.--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.
``(B) Continued application of prior confidentiality
agreements.--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.
``(C) Information-sharing agreement.--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--
``(i) shall comply with applicable Federal law; and
``(ii) 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.
``(D) Agency disclosure requirements.--Section 552 of title
5, United States Code, 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.''.
SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET COMPETITIVENESS.
Section 108 (15 U.S.C. 6701 note) is amended by adding at the end
the following new subsection:
``(h) Study of Small Insurer Market Competitiveness.--
``(1) In general.--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--
``(A) changes to the market share, premium volume, and
policyholder surplus of small insurers relative to large
insurers;
``(B) 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;
``(C) the impact of the Program's mandatory availability
requirement under section 103(c) on small insurers;
``(D) the effect of increasing the trigger amount for the
Program under section 103(e)(1)(B) on small insurers;
``(E) the availability and cost of private reinsurance for
small insurers; and
``(F) the impact that State workers compensation laws have
on small insurers and workers compensation carriers in the
terrorism risk insurance marketplace.
``(2) Report.--The Secretary shall submit a report to the
Congress setting forth the findings and conclusions of each study
required under paragraph (1).''.
TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM
SEC. 201. SHORT TITLE.
This title may be cited as the ``National Association of Registered
Agents and Brokers Reform Act of 2015''.
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
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.
``(ii) Procedures.--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).
``(D) Form of request.--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.
``(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 fingerprints or other
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 not more than $50,000 per violation as
determined by a court of competent jurisdiction.
``(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, standards, 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 2015, 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 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;
``(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 2015; 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 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.
``(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 2015.
``(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.''.
TITLE III--BUSINESS RISK MITIGATION AND PRICE STABILIZATION
SEC. 301. SHORT TITLE.
This title may be cited as the ``Business Risk Mitigation and Price
Stabilization Act of 2015''.
SEC. 302. MARGIN REQUIREMENTS.
(a) Commodity Exchange Act Amendment.--Section 4s(e) of the
Commodity Exchange Act (7 U.S.C. 6s(e)), as added by section 731 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended
by adding at the end the following new paragraph:
``(4) Applicability with respect to counterparties.--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).''.
(b) Securities Exchange Act Amendment.--Section 15F(e) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-10(e)), as added by
section 764(a) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, is amended by adding at the end the following new
paragraph:
``(4) Applicability with respect to counterparties.--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).''.
SEC. 303. IMPLEMENTATION.
The amendments made by this title to the Commodity Exchange Act
shall be implemented--
(1) without regard to--
(A) chapter 35 of title 44, United States Code; and
(B) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) through the promulgation of an interim final rule, pursuant
to which public comment will be sought before a final rule is
issued; and
(3) 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.