[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4537 Engrossed in House (EH)]

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115th CONGRESS
  2d Session
                                H. R. 4537

_______________________________________________________________________

                                 AN ACT


 
To preserve the State-based system of insurance regulation and provide 
   greater oversight of and transparency on international insurance 
          standards setting processes, 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.

    This Act may be cited as the ``International Insurance Standards 
Act of 2018''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) The State-based system for insurance regulation in the 
        United States has served American consumers well for more than 
        150 years and has fostered an open and competitive marketplace 
        with a diversity of insurance products to the benefit of 
        policyholders and consumers.
            (2) Protecting policyholders by regulating to ensure an 
        insurer's ability to pay claims has been the hallmark of the 
        successful United States system and should be the paramount 
        objective of domestic prudential regulation and emerging 
        international standards.
            (3) The Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (Public Law 111-203) reaffirmed the State-based 
        insurance regulatory system.

SEC. 3. REQUIREMENT THAT INSURANCE STANDARDS REFLECT UNITED STATES 
              POLICY.

    (a) Requirement.--
            (1) In general.--Parties representing the Federal 
        Government in any international regulatory, standard-setting, 
        or supervisory forum or in any negotiations of any 
        international agreements relating to the prudential aspects of 
        insurance shall not agree to, accede to, accept, or establish 
        any proposed agreement or standard if the proposed agreement or 
        standard fails to recognize the United States system of 
        insurance regulation as satisfying such proposals.
            (2) Inapplicability.--Paragraph (1) shall not apply to any 
        forum or negotiations relating to a covered agreement (as such 
        term is defined in section 313(r) of title 31, United States 
        Code).
    (b) Federal Insurance Office Functions.--Subparagraph (E) of 
section 313(c)(1) of title 31, United States Code, is amended by 
inserting ``Federal Government'' after ``United States''.
    (c) Negotiations.--Nothing in this section shall be construed to 
prevent participation in negotiations of any proposed agreement or 
standard.

SEC. 4. STATE INSURANCE REGULATOR INVOLVEMENT IN INTERNATIONAL STANDARD 
              SETTING.

    In developing international insurance standards pursuant to section 
3, and throughout the negotiations of such standards, parties 
representing the Federal Government shall, on matters related to 
insurance, closely consult, coordinate with, and seek to include in 
such meetings State insurance commissioners or, at the option of the 
State insurance commissioners, designees of the insurance commissioners 
acting at their direction.

SEC. 5. CONSULTATION WITH CONGRESS.

    (a) Requirement.--Parties representing the Federal Government with 
respect to any agreement under section 3 shall provide written notice 
to and consult with the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, and any other relevant committees of 
jurisdiction--
            (1) before initiating negotiations to enter into the 
        agreement, regarding--
                    (A) the intention of the United States to 
                participate in or enter into such negotiations; and
                    (B) the nature and objectives of the negotiations; 
                and
            (2) during negotiations to enter into the agreement, 
        regarding--
                    (A) the nature and objectives of the negotiations;
                    (B) the implementation of the agreement, including 
                how it is consistent with and does not materially 
                differ from or otherwise affect Federal or State laws 
                or regulations;
                    (C) the impact on the competitiveness of United 
                States insurers; and
                    (D) the impact on United States consumers.
    (b) Consultation With Federal Advisory Committee on Insurance.--
Before entering into an agreement under section 3, the Secretary of the 
Treasury shall seek to consult with the Federal Advisory Committee on 
Insurance formed pursuant to section 313(h) of title 31, United States 
Code.

SEC. 6. REPORT TO CONGRESS ON INTERNATIONAL INSURANCE AGREEMENTS.

    Before entering into an agreement under section 3, parties 
representing the Federal Government shall submit to the appropriate 
congressional committees and leadership a report that describes--
            (1) the implementation of the agreement, including how it 
        is consistent with and does not materially differ from or 
        otherwise affect Federal or State laws or regulations;
            (2) the impact on the competitiveness of United States 
        insurers; and
            (3) the impact on United States consumers.

SEC. 7. COVERED AGREEMENTS.

    (a) Preemption of State Insurance Measures.--Subsection (f) of 
section 313 of title 31, United States Code, is amended by striking 
``Director'' each place such term appears and inserting ``Secretary''.
    (b) Definition.--Paragraph (2) of section 313(r) of title 31, 
United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) applies only on a prospective basis.''.
    (c) Consultation; Submission and Layover; Congressional Review.--
Section 314 of title 31, United States Code is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(C), by striking ``laws'' and 
                inserting the following: ``and Federal law, and the 
                nature of any changes in the laws of the United States 
                or the administration of such laws that would be 
                required to carry out a covered agreement''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Access to negotiating texts and other documents.--
        Appropriate congressional committees and staff with proper 
        security clearances shall be given timely access to United 
        States negotiating proposals, consolidated draft texts, and 
        other pertinent documents related to the negotiations, 
        including classified materials.'';
            (2) by redesignating subsection (c) as subsection (d);
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Requirements for Consultations With State Insurance 
Commissioners.--Throughout the negotiations of a covered agreement, 
parties representing the Federal Government shall closely consult and 
coordinate with State insurance commissioners.'';
            (4) in subsection (d), as so redesignated by paragraph 
        (2)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``only if--'' and inserting the following: 
                ``only if, before signing the final
                legal text or otherwise entering into the agreement--
                '';
                    (B) in paragraph (1), by striking ``congressional 
                committees specified in subsection (b)(1)'' and 
                inserting ``appropriate congressional committees and 
                leadership and to congressional committee staff with 
                proper security clearances''; and
                    (C) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2)(A) the 90-day period beginning on the date on which 
        the copy of the final legal text of the agreement is submitted 
        under paragraph (1) to the congressional committees, 
        leadership, and staff has expired; and
            ``(B) the covered agreement has not been prevented from 
        taking effect pursuant to subsection (e).''; and
            (5) by adding at the end the following new subsections:
    ``(e) Period for Review by Congress.--
            ``(1) In general.--During the layover period referred to in 
        subsection (d)(2)(A), the Committees on Banking, Housing, and 
        Urban Affairs and Finance of the Senate and the Committees on 
        Financial Services and Ways of Means of the House of 
        Representatives should, as appropriate, exercise their full 
        oversight responsibility.
            ``(2) Effect of enactment of a joint resolution of 
        disapproval.--Notwithstanding any other provision of law, if a 
        joint resolution of disapproval relating to a covered agreement 
        submitted under subsection (d)(1) is enacted in accordance with 
        subsection (f), the covered agreement shall not enter into 
        force with respect to the United States.
    ``(f) Joint Resolutions of Disapproval.--
            ``(1) Definition.--In this subsection, the term `joint 
        resolution of disapproval' means, with respect to proposed 
        covered agreement, only a joint resolution of either House of 
        Congress--
                    ``(A) that is introduced during the 90-day period 
                referred to in subsection (d)(2)(A) relating to such 
                proposed covered agreement;
                    ``(B) which does not have a preamble;
                    ``(C) the title of which is as follows: `A joint 
                resolution disapproving a certain proposed covered 
                agreement under section 314 of title 31, United States 
                Code.'; and
                    ``(D) the sole matter after the resolving clause of 
                which is the following: `Congress disapproves of the 
                proposed covered agreement submitted to Congress under 
                section 314 (c)(1) of title 31, United States Code, on 
                _______ relating to ________.', with the first blank 
                space being filled with the appropriate date and the 
                second blank space being filled with a short 
                description of the proposed covered agreement.
            ``(2) Introduction.--During the layover period referred to 
        in subsection (d)(2)(A), a joint resolution of disapproval may 
        be introduced--
                    ``(A) in the House of Representatives, by any 
                Member of the House, and
                    ``(B) in the Senate, by any Senator,
        and shall be referred to the appropriate committees.
            ``(3) Rules of house of representatives and senate.--This 
        subsection is enacted by Congress--
                    ``(A) as an exercise of the rulemaking power of the 
                Senate and the House of Representatives, respectively, 
                and as such is deemed a part of the rules of each 
                House, respectively, and supersedes other rules only to 
                the extent that it is inconsistent with such rules; and
                    ``(B) with full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedure of that House) at any time, 
                in the same manner, and to the same extent as in the 
                case of any other rule of that House.
    ``(g) Appropriate Congressional Committees and Leadership 
Defined.--In this section, the term `appropriate congressional 
committees and leadership' means--
            ``(1) the Committees on Banking, Housing, and Urban Affairs 
        and Finance, and the majority and minority leaders, of the 
        Senate; and
            ``(2) the Committees on Financial Services and Ways and 
        Means, and the Speaker, the majority leader, and the minority 
        leader, of the House of Representatives.''.

SEC. 8. INAPPLICABILITY TO TRADE AGREEMENTS.

    This Act and the amendments made by this Act shall not apply to any 
forum or negotiations related to a trade agreement.

            Passed the House of Representatives July 10, 2018.

            Attest:

                                                                 Clerk.
115th CONGRESS

  2d Session

                               H. R. 4537

_______________________________________________________________________

                                 AN ACT

To preserve the State-based system of insurance regulation and provide 
   greater oversight of and transparency on international insurance 
          standards setting processes, and for other purposes.