Business Risk Mitigation and Price Stabilization Act of 2015 Public Law 114–1 Business Risk Mitigation and Price Stabilization Act of 2015 1 114–1 Statute Compilation United States House of Representatives Office of the Legislative Counsel text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. GPO Statute Compilations USLM converter, version 20210527.1 2021-10-15 Business Risk Mitigation and Price Stabilization Act of 2015 National Association of Registered Agents and Brokers Reform Act of 2015 Terrorism Risk Insurance Program Reauthorization Act of 2015 11564 114 2015-01-12 Business Risk Mitigation and Price Stabilization Act of 2015 [(Public Law 114–1)] [This law has not been amended] [Currency: This publication is a compilation of the text of Public Law 114-1. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/] [Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
AN ACTTo extend the termination date of the Terrorism Insurance Program established under the Terrorism Risk Insurance Act of 2002, and for other purposes.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. [15 U.S.C. 6701 note] SHORT TITLE AND TABLE OF CONTENTS. (a) Short Title.—This Act may be cited as the “Terrorism Risk Insurance Program Reauthorization Act of 2015”. (b) Table of Contents.—The table of contents for this Act is as follows: Sec. 1. TITLE I— Sec. 101. Sec. 102. Sec. 103. Sec. 104. Sec. 105. Sec. 106. Sec. 107. Sec. 108. Sec. 109. Sec. 110. Sec. 111. Sec. 112. TITLE II— Sec. 201. Sec. 202. TITLE III— Sec. 301. Sec. 302. Sec. 303.
<num style="-uslm-dtd:enum" value="I">TITLE I—</num><heading style="-uslm-dtd:header">EXTENSION OF TERRORISM INSURANCE PROGRAM </heading> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s101" styleType="OLC"> <num style="-uslm-dtd:enum" value="101">SEC. 101. </num><heading style="-uslm-dtd:header">EXTENSION OF TERRORISM INSURANCE PROGRAM. </heading> <content style="-uslm-dtd:text" class="block">Section 108(a) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking “<quotedText style="-uslm-dtd:quote">December 31, 2014</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">December 31, 2020</quotedText>”.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s102" styleType="OLC"> <num style="-uslm-dtd:enum" value="102">SEC. 102. </num><heading style="-uslm-dtd:header">FEDERAL SHARE. </heading> <content style="-uslm-dtd:text" class="block">Section 103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by inserting “<quotedText style="-uslm-dtd:quote">and beginning on January 1, 2016, shall decrease by 1 percentage point per calendar year until equal to 80 percent</quotedText>” after “<quotedText style="-uslm-dtd:quote">85 percent</quotedText>”.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s103" styleType="OLC"> <num style="-uslm-dtd:enum" value="103">SEC. 103. </num><heading style="-uslm-dtd:header">PROGRAM TRIGGER. </heading> <chapeau style="-uslm-dtd:text" class="block">Subparagraph (B) of section 103(e)(1) (15 U.S.C. 6701 note) is amended in the matter preceding clause (i)—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s103/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">a certified act</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">certified acts</quotedText>”;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s103/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">such certified act</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">such certified acts</quotedText>”; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s103/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">exceed</quotedText>” and all that follows through clause (ii) and inserting the following:<quotedContent style="-uslm-dtd:quoted-block" class="inline"><chapeau style="-uslm-dtd:text">“exceed—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">$100,000,000, with respect to such insured losses occurring in calendar year 2015;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">$120,000,000, with respect to such insured losses occurring in calendar year 2016;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">$140,000,000, with respect to such insured losses occurring in calendar year 2017;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="iv">“(iv) </num><content style="-uslm-dtd:text">$160,000,000, with respect to such insured losses occurring in calendar year 2018;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="v">“(v) </num><content style="-uslm-dtd:text">$180,000,000, with respect to such insured losses occurring in calendar year 2019; and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="vi">“(vi) </num><content style="-uslm-dtd:text">$200,000,000, with respect to such insured losses occurring in calendar year 2020 and any calendar year thereafter.”</content> </clause></quotedContent>.</content> </paragraph> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s104" styleType="OLC"> <num style="-uslm-dtd:enum" value="104">SEC. 104. </num><heading style="-uslm-dtd:header">RECOUPMENT OF FEDERAL SHARE OF COMPENSATION UNDER THE PROGRAM. </heading> <chapeau style="-uslm-dtd:text" class="block">Section 103(e) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s104/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">by amending paragraph (6) to read as follows:<quotedContent style="-uslm-dtd:quoted-block"> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Insurance marketplace aggregate retention amount.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">For purposes of paragraph (7), the insurance marketplace aggregate retention amount shall be the lesser of—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">$27,500,000,000, as such amount is revised pursuant to this paragraph; and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the aggregate amount, for all insurers, of insured losses during such calendar year.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Revision of insurance marketplace aggregate retention amount.—</heading> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Phase-in.—</heading><content style="-uslm-dtd:text">Beginning in the calendar year of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, the amount set forth under subparagraph (A)(i) shall increase by $2,000,000,000 per calendar year until equal to $37,500,000,000.</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Further revision.—</heading><content style="-uslm-dtd:text">Beginning in the calendar year that follows the calendar year in which the amount set forth under subparagraph (A)(i) is equal to $37,500,000,000, the amount under subparagraph (A)(i) shall be revised to be the amount equal to the annual average of the sum of insurer deductibles for all insurers participating in the Program for the prior 3 calendar years, as such sum is determined by the Secretary under subparagraph (C).</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Rulemaking.—</heading><chapeau style="-uslm-dtd:text">Not later than 3 years after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, the Secretary shall—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">issue final rules for determining the amount of the sum described under subparagraph (B)(ii); and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">provide a timeline for public notification of such determination.”</content> </clause> </subparagraph> </paragraph></quotedContent>; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s104/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><chapeau style="-uslm-dtd:text">in paragraph (7)—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s104/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><chapeau style="-uslm-dtd:text">in subparagraph (A)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/A/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">in the matter preceding clause (i), by striking “<quotedText style="-uslm-dtd:quote">for each of the periods referred to in subparagraphs (A) through (E) of paragraph (6)</quotedText>”; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/A/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">in clause (i), by striking “<quotedText style="-uslm-dtd:quote">for such period</quotedText>”;</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s104/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">by striking subparagraph (B) and inserting the following:<quotedContent style="-uslm-dtd:quoted-block"> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">[Reserved.]”</content> </subparagraph></quotedContent>;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s104/2/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><chapeau style="-uslm-dtd:text">in subparagraph (C)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/C/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">occurring during any of the periods referred to in any of subparagraphs (A) through (E) of paragraph (6), terrorism loss risk-spreading premiums in an amount equal to 133 percent</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">, terrorism loss risk-spreading premiums in an amount equal to 140 percent</quotedText>”; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/C/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by inserting “<quotedText style="-uslm-dtd:quote">as calculated under subparagraph (A)</quotedText>” after “<quotedText style="-uslm-dtd:quote">mandatory recoupment amount</quotedText>”; and</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s104/2/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><chapeau style="-uslm-dtd:text">in subparagraph (E)(i)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/D/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><chapeau style="-uslm-dtd:text">in subclause (I)—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/i/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2010</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2017</quotedText>”; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/i/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2012</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2019</quotedText>”;</content> </subclause> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/D/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><chapeau style="-uslm-dtd:text">in subclause (II)—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/ii/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2011</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2018</quotedText>”;</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/ii/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2012</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2019</quotedText>”; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/ii/III" styleType="OLC"> <num style="-uslm-dtd:enum" value="III">(III) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2017</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2024</quotedText>”; and</content> </subclause> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s104/2/D/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><chapeau style="-uslm-dtd:text">in subclause (III)—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/iii/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2012</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2019</quotedText>”; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s104/2/D/iii/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">2017</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">2024</quotedText>”.</content> </subclause> </clause> </subparagraph> </paragraph> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s105" styleType="OLC"> <num style="-uslm-dtd:enum" value="105">SEC. 105. </num><heading style="-uslm-dtd:header">CERTIFICATION OF ACTS OF TERRORISM; CONSULTATION WITH SECRETARY OF HOMELAND SECURITY. </heading> <content style="-uslm-dtd:text" class="block">Paragraph (1)(A) of section 102 (15 U.S.C. 6701 note) is amended in the matter preceding clause (i), by striking “<quotedText style="-uslm-dtd:quote">concurrence with the Secretary of State</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">consultation with the Secretary of Homeland Security</quotedText>”.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s106" styleType="OLC"> <num style="-uslm-dtd:enum" value="106">SEC. 106. </num><heading style="-uslm-dtd:header">TECHNICAL AMENDMENTS. </heading> <chapeau style="-uslm-dtd:text" class="block">The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s106/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref><b>]</b> </editorialNote><chapeau style="-uslm-dtd:text">in section 102—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/1/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><chapeau style="-uslm-dtd:text">in paragraph (3)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/1/A/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/1/A/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">in the matter preceding clause (i) (as so redesignated), by striking “<quotedText style="-uslm-dtd:quote">An entity has</quotedText>” and inserting the following:<quotedContent style="-uslm-dtd:quoted-block"> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">An entity has”</content> </subparagraph></quotedContent>; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/1/A/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">by adding at the end the following new subparagraph:<quotedContent style="-uslm-dtd:quoted-block"> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><content style="-uslm-dtd:text">An entity, including any affiliate thereof, does not have ‘<quotedText style="-uslm-dtd:quote">control</quotedText>’ 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 ‘<quotedText style="-uslm-dtd:quote">control</quotedText>’ under subparagraph (A).”</content> </subparagraph></quotedContent>;</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/1/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><chapeau style="-uslm-dtd:text">in paragraph (7)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/1/B/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking subparagraphs (A) through (F) and inserting the following:<quotedContent style="-uslm-dtd:quoted-block"> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the value of an insurer’s direct earned premiums during the immediately preceding calendar year, multiplied by 20 percent; and”</content> </subparagraph></quotedContent>;</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/1/B/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by redesignating subparagraph (G) as subparagraph (B); and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/1/B/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><chapeau style="-uslm-dtd:text">in subparagraph (B), as so redesignated by clause (ii)—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s106/1/B/iii/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">notwithstanding subparagraphs (A) through (F), for the Transition Period or any Program Year</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">notwithstanding subparagraph (A), for any calendar year</quotedText>”; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s106/1/B/iii/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">Period or Program Year</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">calendar year</quotedText>”;</content> </subclause> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/1/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">by striking paragraph (11); and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/1/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">by redesignating paragraphs (12) through (16) as paragraphs (11) through (15), respectively; and</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s106/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref><b>]</b> </editorialNote><chapeau style="-uslm-dtd:text">in section 103—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><chapeau style="-uslm-dtd:text">in subsection (b)(2)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/A/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">in subparagraph (B), by striking “<quotedText style="-uslm-dtd:quote">, purchase,</quotedText>”; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/A/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">in subparagraph (C), by striking “<quotedText style="-uslm-dtd:quote">, purchase,</quotedText>”;</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">in subsection (c), by striking “<quotedText style="-uslm-dtd:quote">Program Year</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">calendar year</quotedText>”;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/2/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><chapeau style="-uslm-dtd:text">in subsection (e)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/C/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><chapeau style="-uslm-dtd:text">in paragraph (1)(A), as previously amended by section 102—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s106/2/C/i/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">the Transition Period and each Program Year through Program Year 4 shall be equal to 90 percent, and during Program Year 5 and each Program Year thereafter</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">each calendar year</quotedText>”;</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s106/2/C/i/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">by striking the comma after “<quotedText style="-uslm-dtd:quote">80 percent</quotedText>”; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/114/1/tI/s106/2/C/i/III" styleType="OLC"> <num style="-uslm-dtd:enum" value="III">(III) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">such Transition Period or such Program Year</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">such calendar year</quotedText>”;</content> </subclause> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/C/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">in paragraph (2)(A), by striking “<quotedText style="-uslm-dtd:quote">the period beginning on the first day of the Transition Period and ending on the last day of Program Year 1, or during any Program Year thereafter</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">a calendar year</quotedText>”; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/C/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">in paragraph (3), by striking “<quotedText style="-uslm-dtd:quote">the period beginning on the first day of the Transition Period and ending on the last day of Program Year 1, or during any other Program Year</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">any calendar year</quotedText>”; and</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s106/2/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><chapeau style="-uslm-dtd:text">in subsection (g)(2)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/D/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">the Transition Period or a Program Year</quotedText>” each place that term appears and inserting “<quotedText style="-uslm-dtd:quote">the calendar year</quotedText>”;</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/D/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">such period</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">the calendar year</quotedText>”; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/114/1/tI/s106/2/D/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">by striking “<quotedText style="-uslm-dtd:quote">that period</quotedText>” and inserting “<quotedText style="-uslm-dtd:quote">the calendar year</quotedText>”.</content> </clause> </subparagraph> </paragraph> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s107" styleType="OLC"> <num style="-uslm-dtd:enum" value="107">SEC. 107. </num><heading style="-uslm-dtd:header">IMPROVING THE CERTIFICATION PROCESS. </heading> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s107/a" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Definitions.—</heading><chapeau style="-uslm-dtd:text">As used in this section—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/a/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">the term “<quotedText style="-uslm-dtd:quote">act of terrorism</quotedText>” has the same meaning as in section 102(1) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note);</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/a/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">the term “<quotedText style="-uslm-dtd:quote">certification process</quotedText>” 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</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/a/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">the term “<quotedText style="-uslm-dtd:quote">Secretary</quotedText>” means the Secretary of the Treasury.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s107/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Study.—</heading><content style="-uslm-dtd:text">Not later than 9 months after the date of enactment of this Act, the Secretary shall conduct and complete a study on the certification process.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s107/c" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Required Content.—</heading><chapeau style="-uslm-dtd:text">The study required under subsection (a) shall include an examination and analysis of—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/c/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">the establishment of a reasonable timeline by which the Secretary must make an accurate determination on whether to certify an act as an act of terrorism;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/c/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">the impact that the length of any timeline proposed to be established under paragraph (1) may have on the insurance industry, policyholders, consumers, and taxpayers as a whole;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/c/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">the factors the Secretary would evaluate and monitor during the certification process, including the ability of the Secretary to obtain the required information regarding the amount of projected and incurred losses resulting from an act which the Secretary would need in determining whether to certify the act as an act of terrorism;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/c/4" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">(4) </num><content style="-uslm-dtd:text">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</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/c/5" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">(5) </num><content style="-uslm-dtd:text">the ability of the Secretary to provide guidance and updates to the public regarding any act that may reasonably be certified as an act of terrorism.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s107/d" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Report.—</heading><content style="-uslm-dtd:text">Upon completion of the study required under subsection (a), the Secretary shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s107/e" styleType="OLC"> <num style="-uslm-dtd:enum" value="e">(e) </num><heading style="-uslm-dtd:header">Rulemaking.—</heading><chapeau style="-uslm-dtd:text">Section 102(1) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/e/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">by redesignating subparagraph (D) as subparagraph (E); and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s107/e/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">by inserting after subparagraph (C) the following:<quotedContent style="-uslm-dtd:quoted-block"> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Timing of certification.—</heading><content style="-uslm-dtd:text">Not later than 9 months after the report required under section 107 of the Terrorism Risk Insurance Program Reauthorization Act of 2015 is submitted to the appropriate committees of Congress, the Secretary shall issue final rules governing the certification process, including establishing a timeline for which an act is eligible for certification by the Secretary on whether an act is an act of terrorism under this paragraph.”</content> </subparagraph></quotedContent>.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s108" styleType="OLC"> <num style="-uslm-dtd:enum" value="108">SEC. 108. </num><heading style="-uslm-dtd:header">GAO STUDY. </heading> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s108/a" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Study.—</heading><chapeau style="-uslm-dtd:text">Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall complete a study on the viability and effects of the Federal Government—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s108/a/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">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 “<quotedText style="-uslm-dtd:quote">Program</quotedText>”), which shall include a comparison of practices in international markets to assess and collect premiums either before or after terrorism losses are incurred; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s108/a/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">creating a capital reserve fund under the Program and requiring insurers participating in the Program to dedicate capital specifically for terrorism losses before such losses are incurred, which shall include a comparison of practices in international markets to establish reserve funds.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s108/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Required Content.—</heading><chapeau style="-uslm-dtd:text">The study required under subsection (a) shall examine, but shall not be limited to, the following issues:</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s108/b/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Upfront premiums.—</heading><chapeau style="-uslm-dtd:text">With respect to upfront premiums described in subsection (a)(1)—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">how the Federal Government could determine the price of such upfront premiums on insurers that participate in the Program;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">how the Federal Government could collect and manage such upfront premiums;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">how the Federal Government could ensure that such upfront premiums are not spent for purposes other than claims through the Program;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">how the assessment and collection of such upfront premiums could affect take-up rates for terrorism risk coverage in different regions and industries and how it could impact small businesses and consumers in both metropolitan and non-metropolitan areas;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/E" styleType="OLC"> <num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">the effect of collecting such upfront premiums on insurers both large and small;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/F" styleType="OLC"> <num style="-uslm-dtd:enum" value="F">(F) </num><content style="-uslm-dtd:text">the effect of collecting such upfront premiums on the private market for terrorism risk reinsurance; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/1/G" styleType="OLC"> <num style="-uslm-dtd:enum" value="G">(G) </num><content style="-uslm-dtd:text">the size of any Federal Government subsidy insurers may receive through their participation in the Program, taking into account the Program’s current post-event recoupment structure.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s108/b/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Capital reserve fund.—</heading><chapeau style="-uslm-dtd:text">With respect to the capital reserve fund described in subsection (a)(2)—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">how the creation of a capital reserve fund would affect the Federal Government’s fiscal exposure under the Terrorism Risk Insurance Program and the ability of the Program to meet its statutory purposes;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">how a capital reserve fund would impact insurers and reinsurers, including liquidity, insurance pricing, and capacity to provide terrorism risk coverage;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/2/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">the feasibility of segregating funds attributable to terrorism risk from funds attributable to other insurance lines;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/2/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">how a capital reserve fund would be viewed and treated under current Financial Accounting Standards Board accounting rules and the tax laws; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/2/E" styleType="OLC"> <num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">how a capital reserve fund would affect the States’ ability to regulate insurers participating in the Program.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s108/b/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">International practices.—</heading><chapeau style="-uslm-dtd:text">With respect to international markets referred to in paragraphs (1) and (2) of subsection (a), how other countries, if any—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/3/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">have established terrorism insurance structures;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/3/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">charge premiums or otherwise collect funds to pay for the costs of terrorism insurance structures, including risk and administrative costs; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tI/s108/b/3/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">have established capital reserve funds to pay for the costs of terrorism insurance structures.</content> </subparagraph> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s108/c" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Report.—</heading><content style="-uslm-dtd:text">Upon completion of the study required under subsection (a), the Comptroller General shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s108/d" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Public Availability.—</heading><content style="-uslm-dtd:text">The study and report required under this section shall be made available to the public in electronic form and shall be published on the website of the Government Accountability Office.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s109" styleType="OLC"> <num style="-uslm-dtd:enum" value="109">SEC. 109. </num><heading style="-uslm-dtd:header">MEMBERSHIP OF BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. </heading> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s109/a" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">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: “<quotedText style="-uslm-dtd:quote">In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets.</quotedText>”.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s109/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t12/s241">12 U.S.C. 241 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Effective date.—</heading><content style="-uslm-dtd:text">The amendment made by this section shall take effect on the date of enactment of this Act and apply to appointments made on and after that effective date, excluding any nomination pending in the Senate on that date.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s110" styleType="OLC"> <num style="-uslm-dtd:enum" value="110">SEC. 110. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS. </heading> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s110/a" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Finding; Rule of Construction.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s110/a/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Finding.—</heading><content style="-uslm-dtd:text">Congress finds that it is desirable to encourage the growth of nongovernmental, private market reinsurance capacity for protection against losses arising from acts of terrorism.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s110/a/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tI/s110/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Advisory Committee on Risk-Sharing Mechanisms.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s110/b/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Establishment.—</heading><content style="-uslm-dtd:text">The Secretary of the Treasury shall establish and appoint an advisory committee to be known as the “<quotedText style="-uslm-dtd:quote">Advisory Committee on Risk-Sharing Mechanisms</quotedText>” (referred to in this subsection as the “<quotedText style="-uslm-dtd:quote">Advisory Committee</quotedText>”).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s110/b/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Duties.—</heading><content style="-uslm-dtd:text">The Advisory Committee shall provide advice, recommendations, and encouragement with respect to the creation and development of the nongovernmental risk-sharing mechanisms described under subsection (a).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tI/s110/b/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Membership.—</heading><content style="-uslm-dtd:text">The Advisory Committee shall be composed of 9 members who are directors, officers, or other employees of insurers, reinsurers, or capital market participants that are participating or that desire to participate in the nongovernmental risk-sharing mechanisms described under subsection (a), and who are representative of the affected sectors of the insurance industry, including commercial property insurance, commercial casualty insurance, reinsurance, and alternative risk transfer industries.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s111" styleType="OLC"> <num style="-uslm-dtd:enum" value="111">SEC. 111. </num><heading style="-uslm-dtd:header">REPORTING OF TERRORISM INSURANCE DATA. </heading> <content style="-uslm-dtd:text" class="block">Section 104 (15 U.S.C. 6701 note) is amended by adding at the end the following new subsection:<quotedContent style="-uslm-dtd:quoted-block"> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Reporting of Terrorism Insurance Data.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Authority.—</heading><chapeau style="-uslm-dtd:text">During the calendar year beginning on January 1, 2016, and in each calendar year thereafter, the Secretary shall require insurers participating in the Program to submit to the Secretary such information regarding insurance coverage for terrorism losses of such insurers as the Secretary considers appropriate to analyze the effectiveness of the Program, which shall include information regarding—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">lines of insurance with exposure to such losses;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">premiums earned on such coverage;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">geographical location of exposures;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">pricing of such coverage;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="E">“(E) </num><content style="-uslm-dtd:text">the take-up rate for such coverage;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="F">“(F) </num><content style="-uslm-dtd:text">the amount of private reinsurance for acts of terrorism purchased; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="G">“(G) </num><content style="-uslm-dtd:text">such other matters as the Secretary considers appropriate.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Reports.—</heading><chapeau style="-uslm-dtd:text">Not later than June 30, 2016, and every other June 30 thereafter, the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that includes—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">an analysis of the overall effectiveness of the Program;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">an evaluation of any changes or trends in the data collected under paragraph (1);</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">an evaluation of whether any aspects of the Program have the effect of discouraging or impeding insurers from providing commercial property casualty insurance coverage or coverage for acts of terrorism;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">an evaluation of the impact of the Program on workers’ compensation insurers; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="E">“(E) </num><content style="-uslm-dtd:text">in the case of the data reported in paragraph (1)(B), an updated estimate of the total amount earned since January 1, 2003.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Protection of data.—</heading><content style="-uslm-dtd:text">To the extent possible, the Secretary shall contract with an insurance statistical aggregator to collect the information described in paragraph (1), which shall keep any nonpublic information confidential and provide it to the Secretary in an aggregate form or in such other form or manner that does not permit identification of the insurer submitting such information.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Advance coordination.—</heading><content style="-uslm-dtd:text">Before collecting any data or information under paragraph (1) from an insurer, or affiliate of an insurer, the Secretary shall coordinate with the appropriate State insurance regulatory authorities and any relevant government agency or publicly available sources to determine if the information to be collected is available from, and may be obtained in a timely manner by, individually or collectively, such entities. If the Secretary determines that such data or information is available, and may be obtained in a timely matter, from such entities, the Secretary shall obtain the data or information from such entities. If the Secretary determines that such data or information is not so available, the Secretary may collect such data or information from an insurer and affiliates.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Confidentiality.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Retention of privilege.—</heading><content style="-uslm-dtd:text">The submission of any non-publicly available data and information to the Secretary and the sharing of any non-publicly available data with or by the Secretary among other Federal agencies, the State insurance regulatory authorities, or any other entities under this subsection shall not constitute a waiver of, or otherwise affect, any privilege arising under Federal or State law (including the rules of any Federal or State court) to which the data or information is otherwise subject.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Continued application of prior confidentiality agreements.—</heading><content style="-uslm-dtd:text">Any requirement under Federal or State law to the extent otherwise applicable, or any requirement pursuant to a written agreement in effect between the original source of any non-publicly available data or information and the source of such data or information to the Secretary, regarding the privacy or confidentiality of any data or information in the possession of the source to the Secretary, shall continue to apply to such data or information after the data or information has been provided pursuant to this subsection.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Information-sharing agreement.—</heading><chapeau style="-uslm-dtd:text">Any data or information obtained by the Secretary under this subsection may be made available to State insurance regulatory authorities, individually or collectively through an information-sharing agreement that—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">shall comply with applicable Federal law; and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">shall not constitute a waiver of, or otherwise affect, any privilege under Federal or State law (including any privilege referred to in subparagraph (A) and the rules of any Federal or State court) to which the data or information is otherwise subject.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Agency disclosure requirements.—</heading><content style="-uslm-dtd:text">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.”</content> </subparagraph> </paragraph> </subsection></quotedContent>.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tI/s112" styleType="OLC"> <num style="-uslm-dtd:enum" value="112">SEC. 112. </num><heading style="-uslm-dtd:header">ANNUAL STUDY OF SMALL INSURER MARKET COMPETITIVENESS. </heading> <content style="-uslm-dtd:text" class="block">Section 108 (15 U.S.C. 6701 note) is amended by adding at the end the following new subsection:<quotedContent style="-uslm-dtd:quoted-block"> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Study of Small Insurer Market Competitiveness.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">Not later than June 30, 2017, and every other June 30 thereafter, the Secretary shall conduct a study of small insurers (as such term is defined by regulation by the Secretary) participating in the Program, and identify any competitive challenges small insurers face in the terrorism risk insurance marketplace, including—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">changes to the market share, premium volume, and policyholder surplus of small insurers relative to large insurers;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">how the property and casualty insurance market for terrorism risk differs between small and large insurers, and whether such a difference exists within other perils;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">the impact of the Program’s mandatory availability requirement under section 103(c) on small insurers;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">the effect of increasing the trigger amount for the Program under section 103(e)(1)(B) on small insurers;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="E">“(E) </num><content style="-uslm-dtd:text">the availability and cost of private reinsurance for small insurers; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="F">“(F) </num><content style="-uslm-dtd:text">the impact that State workers compensation laws have on small insurers and workers compensation carriers in the terrorism risk insurance marketplace.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Report.—</heading><content style="-uslm-dtd:text">The Secretary shall submit a report to the Congress setting forth the findings and conclusions of each study required under paragraph (1).”</content> </paragraph> </subsection></quotedContent>.</content> </section> <num style="-uslm-dtd:enum" value="II">TITLE II—</num><heading style="-uslm-dtd:header">NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM </heading> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tII/s201" styleType="OLC"> <num style="-uslm-dtd:enum" value="201">SEC. 201. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6701">15 U.S.C. 6701 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">SHORT TITLE. </heading> <content style="-uslm-dtd:text" class="block">This title may be cited as the “<shortTitle style="-uslm-dtd:quote">National Association of Registered Agents and Brokers Reform Act of 2015</shortTitle>”.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tII/s202" styleType="OLC"> <num style="-uslm-dtd:enum" value="202">SEC. 202. </num><heading style="-uslm-dtd:header">REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS. </heading> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tII/s202/a" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Subtitle C of title III of the Gramm-Leach-Bliley Act (15 U.S.C. 6751 et seq.) is amended to read as follows:<quotedContent style="-uslm-dtd:quoted-block"> <subtitle style="-uslm-dtd:subtitle"> <num style="-uslm-dtd:enum" value="C">“Subtitle C—</num><heading style="-uslm-dtd:header">National Association of Registered Agents and Brokers </heading> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="321">“SEC. 321. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6751">15 U.S.C. 6751</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Establishment.—</heading><content style="-uslm-dtd:text">There is established the National Association of Registered Agents and Brokers (referred to in this subtitle as the ‘<quotedText style="-uslm-dtd:quote">Association</quotedText>’).</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Status.—</heading><chapeau style="-uslm-dtd:text">The Association shall—</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">be a nonprofit corporation;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">not be an agent or instrumentality of the Federal Government;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">be an independent organization that may not be merged with or into any other private or public entity; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><content style="-uslm-dtd:text">except as otherwise provided in this subtitle, be subject to, and have all the powers conferred upon, a nonprofit corporation by the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-301.01 et seq.) or any successor thereto.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="322">“SEC. 322. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6752">15 U.S.C. 6752</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">PURPOSE </heading> <chapeau style="-uslm-dtd:text" class="block">“The purpose of the Association shall be to provide a mechanism through which licensing, continuing education, and other nonresident insurance producer qualification requirements and conditions may be adopted and applied on a multi-state basis without affecting the laws, rules, and regulations, and preserving the rights of a State, pertaining to—</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">licensing, continuing education, and other qualification requirements of insurance producers that are not members of the Association;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">resident or nonresident insurance producer appointment requirements;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">supervising and disciplining resident and nonresident insurance producers;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><content style="-uslm-dtd:text">establishing licensing fees for resident and nonresident insurance producers so that there is no loss of insurance producer licensing revenue to the State; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">“(5) </num><content style="-uslm-dtd:text">prescribing and enforcing laws and regulations regulating the conduct of resident and nonresident insurance producers.</content> </paragraph> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="323">“SEC. 323. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6753">15 U.S.C. 6753</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">MEMBERSHIP </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Eligibility.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Any insurance producer licensed in its home State shall, subject to paragraphs (2) and (4), be eligible to become a member of the Association.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Ineligibility for suspension or revocation of license.—</heading><content style="-uslm-dtd:text">Subject to paragraph (3), an insurance producer is not eligible to become a member of the Association if a State insurance regulator has suspended or revoked the insurance license of the insurance producer in that State.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Resumption of eligibility.—</heading><chapeau style="-uslm-dtd:text">Paragraph (2) shall cease to apply to any insurance producer if—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the State insurance regulator reissues or renews the license of the insurance producer in the State in which the license was suspended or revoked, or otherwise terminates or vacates the suspension or revocation; or</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the suspension or revocation expires or is subsequently overturned by a court of competent jurisdiction.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Criminal history record check required.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">An insurance producer who is an individual shall not be eligible to become a member of the Association unless the insurance producer has undergone a criminal history record check that complies with regulations prescribed by the Attorney General of the United States under subparagraph (K).</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Criminal history record check requested by home state.—</heading><content style="-uslm-dtd:text">An insurance producer who is licensed in a State and who has undergone a criminal history record check during the 2-year period preceding the date of submission of an application to become a member of the Association, in compliance with a requirement to undergo such criminal history record check as a condition for such licensure in the State, shall be deemed to have undergone a criminal history record check for purposes of subparagraph (A).</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Criminal history record check requested by association.—</heading> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association shall, upon request by an insurance producer licensed in a State, submit fingerprints or other identification information obtained from the insurance producer, and a request for a criminal history record check of the insurance producer, to the Federal Bureau of Investigation.</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Procedures.—</heading><content style="-uslm-dtd:text">The board of directors of the Association (referred to in this subtitle as the ‘<quotedText style="-uslm-dtd:quote">Board</quotedText>’) shall prescribe procedures for obtaining and utilizing fingerprints or other identification information and criminal history record information, including the establishment of reasonable fees to defray the expenses of the Association in connection with the performance of a criminal history record check and appropriate safeguards for maintaining confidentiality and security of the information. Any fees charged pursuant to this clause shall be separate and distinct from those charged by the Attorney General pursuant to subparagraph (I).</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Form of request.—</heading><content style="-uslm-dtd:text">A submission under subparagraph (C)(i) shall include such fingerprints or other identification information as is required by the Attorney General concerning the person about whom the criminal history record check is requested, and a statement signed by the person authorizing the Attorney General to provide the information to the Association and for the Association to receive the information.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="E">“(E) </num><heading style="-uslm-dtd:header">Provision of information by attorney general.—</heading><content style="-uslm-dtd:text">Upon receiving a submission under subparagraph (C)(i) from the Association, the Attorney General shall search all criminal history records of the Federal Bureau of Investigation, including records of the Criminal Justice Information Services Division of the Federal Bureau of Investigation, that the Attorney General determines appropriate for criminal history records corresponding to the fingerprints or other identification information provided under subparagraph (D) and provide all criminal history record information included in the request to the Association.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="F">“(F) </num><heading style="-uslm-dtd:header">Limitation on permissible uses of information.—</heading><chapeau style="-uslm-dtd:text">Any information provided to the Association under subparagraph (E) may only—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">be used for purposes of determining compliance with membership criteria established by the Association;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">be disclosed to State insurance regulators, or Federal or State law enforcement agencies, in conformance with applicable law; or</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">be disclosed, upon request, to the insurance producer to whom the criminal history record information relates.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="G">“(G) </num><heading style="-uslm-dtd:header">Penalty for improper use or disclosure.—</heading><content style="-uslm-dtd:text">Whoever knowingly uses any information provided under subparagraph (E) for a purpose not authorized in subparagraph (F), or discloses any such information to anyone not authorized to receive it, shall be fined not more than $50,000 per violation as determined by a court of competent jurisdiction.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="H">“(H) </num><heading style="-uslm-dtd:header">Reliance on information.—</heading><content style="-uslm-dtd:text">Neither the Association nor any of its Board members, officers, or employees shall be liable in any action for using information provided under subparagraph (E) as permitted under subparagraph (F) in good faith and in reasonable reliance on its accuracy.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">“(I) </num><heading style="-uslm-dtd:header">Fees.—</heading><content style="-uslm-dtd:text">The Attorney General may charge a reasonable fee for conducting the search and providing the information under subparagraph (E), and any such fee shall be collected and remitted by the Association to the Attorney General.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="J">“(J) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><chapeau style="-uslm-dtd:text">Nothing in this paragraph shall be construed as—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">requiring a State insurance regulator to perform criminal history record checks under this section; or</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">limiting any other authority that allows access to criminal history records.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="K">“(K) </num><heading style="-uslm-dtd:header">Regulations.—</heading><chapeau style="-uslm-dtd:text">The Attorney General shall prescribe regulations to carry out this paragraph, which shall include—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">appropriate protections for ensuring the confidentiality of information provided under subparagraph (E); and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">procedures providing a reasonable opportunity for an insurance producer to contest the accuracy of information regarding the insurance producer provided under subparagraph (E).</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="L">“(L) </num><heading style="-uslm-dtd:header">Ineligibility for membership.—</heading> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association may, under reasonably consistently applied standards, deny membership to an insurance producer on the basis of criminal history record information provided under subparagraph (E), or where the insurance producer has been subject to disciplinary action, as described in paragraph (2).</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Rights of applicants denied membership.—</heading><chapeau style="-uslm-dtd:text">The Association shall notify any insurance producer who is denied membership on the basis of criminal history record information provided under subparagraph (E) of the right of the insurance producer to—</chapeau> <subclause style="-uslm-dtd:subclause" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">“(I) </num><content style="-uslm-dtd:text">obtain a copy of all criminal history record information provided to the Association under subparagraph (E) with respect to the insurance producer; and</content> </subclause> <subclause style="-uslm-dtd:subclause" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">“(II) </num><content style="-uslm-dtd:text">challenge the denial of membership based on the accuracy and completeness of the information.</content> </subclause> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="M">“(M) </num><heading style="-uslm-dtd:header">Definition.—</heading><content style="-uslm-dtd:text">For purposes of this paragraph, the term ‘<quotedText style="-uslm-dtd:quote">criminal history record check</quotedText>’ means a national background check of criminal history records of the Federal Bureau of Investigation.</content> </subparagraph> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Authority To Establish Membership Criteria.—</heading><content style="-uslm-dtd:text">The Association may establish membership criteria that bear a reasonable relationship to the purposes for which the Association was established.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">“(c) </num><heading style="-uslm-dtd:header">Establishment of Classes and Categories of Membership.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Classes of membership.—</heading><content style="-uslm-dtd:text">The Association may establish separate classes of membership, with separate criteria, if the Association reasonably determines that performance of different duties requires different levels of education, training, experience, or other qualifications.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Business entities.—</heading><content style="-uslm-dtd:text">The Association shall establish a class of membership and membership criteria for business entities. A business entity that applies for membership shall be required to designate an individual Association member responsible for the compliance of the business entity with Association standards and the insurance laws, standards, and regulations of any State in which the business entity seeks to do business on the basis of Association membership.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Categories.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Separate categories for insurance producers permitted.—</heading><content style="-uslm-dtd:text">The Association may establish separate categories of membership for insurance producers and for other persons or entities within each class, based on the types of licensing categories that exist under State laws.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Separate treatment for depository institutions prohibited.—</heading><content style="-uslm-dtd:text">No special categories of membership, and no distinct membership criteria, shall be established for members that are depository institutions or for employees, agents, or affiliates of depository institutions.</content> </subparagraph> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">“(d) </num><heading style="-uslm-dtd:header">Membership Criteria.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association may establish criteria for membership which shall include standards for personal qualifications, education, training, and experience. The Association shall not establish criteria that unfairly limit the ability of a small insurance producer to become a member of the Association, including imposing discriminatory membership fees.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Qualifications.—</heading><content style="-uslm-dtd:text">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 ‘<quotedText style="-uslm-dtd:quote">NAIC</quotedText>’) Producer Licensing Model Act in effect as of the date of enactment of the National Association of Registered Agents and Brokers Reform Act of 2015, and shall consider the highest levels of insurance producer qualifications established under the licensing laws of the States.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Assistance from states.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association may request a State to provide assistance in investigating and evaluating the eligibility of a prospective member for membership in the Association.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Authorization of information sharing.—</heading><chapeau style="-uslm-dtd:text">A submission under subsection (a)(4)(C)(i) made by an insurance producer licensed in a State shall include a statement signed by the person about whom the assistance is requested authorizing—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">the State to share information with the Association; and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">the Association to receive the information.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><content style="-uslm-dtd:text">Subparagraph (A) shall not be construed as requiring or authorizing any State to adopt new or additional requirements concerning the licensing or evaluation of insurance producers.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Denial of membership.—</heading><content style="-uslm-dtd:text">The Association may, based on reasonably consistently applied standards, deny membership to any State-licensed insurance producer for failure to meet the membership criteria established by the Association.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="e">“(e) </num><heading style="-uslm-dtd:header">Effect of Membership.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Authority of association members.—</heading><chapeau style="-uslm-dtd:text">Membership in the Association shall—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">authorize an insurance producer to sell, solicit, or negotiate insurance in any State for which the member pays the licensing fee set by the State for any line or lines of insurance specified in the home State license of the insurance producer, and exercise all such incidental powers as shall be necessary to carry out such activities, including claims adjustments and settlement to the extent permissible under the laws of the State, risk management, employee benefits advice, retirement planning, and any other insurance-related consulting activities;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">be the equivalent of a nonresident insurance producer license for purposes of authorizing the insurance producer to engage in the activities described in subparagraph (A) in any State where the member pays the licensing fee; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">be the equivalent of a nonresident insurance producer license for the purpose of subjecting an insurance producer to all laws, regulations, provisions or other action of any State concerning revocation, suspension, or other enforcement action related to the ability of a member to engage in any activity within the scope of authority granted under this subsection and to all State laws, regulations, provisions, and actions preserved under paragraph (5).</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Violent crime control and law enforcement act of 1994.—</heading><content style="-uslm-dtd:text">Nothing in this subtitle shall be construed to alter, modify, or supercede any requirement established by section 1033 of title 18, United States Code.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Agent for remitting fees.—</heading><content style="-uslm-dtd:text">The Association shall act as an agent for any member for purposes of remitting licensing fees to any State pursuant to paragraph (1).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Notification of action.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association shall notify the States (including State insurance regulators) and the NAIC when an insurance producer has satisfied the membership criteria of this section. The States (including State insurance regulators) shall have 10 business days after the date of the notification in order to provide the Association with evidence that the insurance producer does not satisfy the criteria for membership in the Association.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Ongoing disclosures required.—</heading><content style="-uslm-dtd:text">On an ongoing basis, the Association shall disclose to the States (including State insurance regulators) and the NAIC a list of the States in which each member is authorized to operate. The Association shall immediately notify the States (including State insurance regulators) and the NAIC when a member is newly authorized to operate in one or more States, or is no longer authorized to operate in one or more States on the basis of Association membership.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Preservation of consumer protection and market conduct regulation.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">No provision of this section shall be construed as altering or affecting the applicability or continuing effectiveness of any law, regulation, provision, or other action of any State, including those described in subparagraph (B), to the extent that the State law, regulation, provision, or other action is not inconsistent with the provisions of this subtitle related to market entry for nonresident insurance producers, and then only to the extent of the inconsistency.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Preserved regulations.—</heading><chapeau style="-uslm-dtd:text">The laws, regulations, provisions, or other actions of any State referred to in subparagraph (A) include laws, regulations, provisions, or other actions that—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">regulate market conduct, insurance producer conduct, or unfair trade practices;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">establish consumer protections; or</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">require insurance producers to be appointed by a licensed or authorized insurer.</content> </clause> </subparagraph> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="f">“(f) </num><heading style="-uslm-dtd:header">Biennial Renewal.—</heading><content style="-uslm-dtd:text">Membership in the Association shall be renewed on a biennial basis.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="g">“(g) </num><heading style="-uslm-dtd:header">Continuing Education.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association shall establish, as a condition of membership, continuing education requirements which shall be comparable to the continuing education requirements under the licensing laws of a majority of the States.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">State continuing education requirements.—</heading><content style="-uslm-dtd:text">A member may not be required to satisfy continuing education requirements imposed under the laws, regulations, provisions, or actions of any State other than the home State of the member.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Reciprocity.—</heading><content style="-uslm-dtd:text">The Association shall not require a member to satisfy continuing education requirements that are equivalent to any continuing education requirements of the home State of the member that have been satisfied by the member during the applicable licensing period.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Limitation on the association.—</heading><content style="-uslm-dtd:text">The Association shall not directly or indirectly offer any continuing education courses for insurance producers.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Probation, Suspension and Revocation.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Disciplinary action.—</heading><chapeau style="-uslm-dtd:text">The Association may place an insurance producer that is a member of the Association on probation or suspend or revoke the membership of the insurance producer in the Association, or assess monetary fines or penalties, as the Association determines to be appropriate, if—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">the insurance producer fails to meet the applicable membership criteria or other standards established by the Association;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the insurance producer has been subject to disciplinary action pursuant to a final adjudicatory proceeding under the jurisdiction of a State insurance regulator;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">an insurance license held by the insurance producer has been suspended or revoked by a State insurance regulator; or</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">the insurance producer has been convicted of a crime that would have resulted in the denial of membership pursuant to subsection (a)(4)(L)(i) at the time of application, and the Association has received a copy of the final disposition from a court of competent jurisdiction.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Violations of association standards.—</heading><content style="-uslm-dtd:text">The Association shall have the power to investigate alleged violations of Association standards.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Reporting.—</heading><content style="-uslm-dtd:text">The Association shall immediately notify the States (including State insurance regulators) and the NAIC when the membership of an insurance producer has been placed on probation or has been suspended, revoked, or otherwise terminated, or when the Association has assessed monetary fines or penalties.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Consumer Complaints.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">The Association shall—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">refer any complaint against a member of the Association from a consumer relating to alleged misconduct or violations of State insurance laws to the State insurance regulator where the consumer resides and, when appropriate, to any additional State insurance regulator, as determined by standards adopted by the Association; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">make any related records and information available to each State insurance regulator to whom the complaint is forwarded.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Telephone and other access.—</heading><content style="-uslm-dtd:text">The Association shall maintain a toll-free number for purposes of this subsection and, as practicable, other alternative means of communication with consumers, such as an Internet webpage.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Final disposition of investigation.—</heading><content style="-uslm-dtd:text">State insurance regulators shall provide the Association with information regarding the final disposition of a complaint referred pursuant to paragraph (1)(A), but nothing shall be construed to compel a State to release confidential investigation reports or other information protected by State law to the Association.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="j">“(j) </num><heading style="-uslm-dtd:header">Information Sharing.—</heading><chapeau style="-uslm-dtd:text">The Association may—</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">share documents, materials, or other information, including confidential and privileged documents, with a State, Federal, or international governmental entity or with the NAIC or other appropriate entity referred to paragraphs (3) and (4), provided that the recipient has the authority and agrees to maintain the confidentiality or privileged status of the document, material, or other information;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">limit the sharing of information as required under this subtitle with the NAIC or any other non-governmental entity, in circumstances under which the Association determines that the sharing of such information is unnecessary to further the purposes of this subtitle;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">establish a central clearinghouse, or utilize the NAIC or another appropriate entity, as determined by the Association, as a central clearinghouse, for use by the Association and the States (including State insurance regulators), through which members of the Association may disclose their intent to operate in 1 or more States and pay the licensing fees to the appropriate States; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><content style="-uslm-dtd:text">establish a database, or utilize the NAIC or another appropriate entity, as determined by the Association, as a database, for use by the Association and the States (including State insurance regulators) for the collection of regulatory information concerning the activities of insurance producers.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="k">“(k) </num><heading style="-uslm-dtd:header">Effective Date.—</heading><chapeau style="-uslm-dtd:text">The provisions of this section shall take effect on the later of—</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">the expiration of the 2-year period beginning on the date of enactment of the National Association of Registered Agents and Brokers Reform Act of 2015; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">the date of incorporation of the Association.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="324">“SEC. 324. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6754">15 U.S.C. 6754</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">BOARD OF DIRECTORS </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Establishment.—</heading><content style="-uslm-dtd:text">There is established a board of directors of the Association, which shall have authority to govern and supervise all activities of the Association.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Powers.—</heading><content style="-uslm-dtd:text">The Board shall have such of the powers and authority of the Association as may be specified in the bylaws of the Association.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">“(c) </num><heading style="-uslm-dtd:header">Composition.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">The Board shall consist of 13 members who shall be appointed by the President, by and with the advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, of whom—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">8 shall be State insurance commissioners appointed in the manner provided in paragraph (2), 1 of whom shall be designated by the President to serve as the chairperson of the Board until the Board elects one such State insurance commissioner Board member to serve as the chairperson of the Board;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">3 shall have demonstrated expertise and experience with property and casualty insurance producer licensing; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">2 shall have demonstrated expertise and experience with life or health insurance producer licensing.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">State insurance regulator representatives.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">Recommendations.—</heading><content style="-uslm-dtd:text">Before making any appointments pursuant to paragraph (1)(A), the President shall request a list of recommended candidates from the States through the NAIC, which shall not be binding on the President. If the NAIC fails to submit a list of recommendations not later than 15 business days after the date of the request, the President may make the requisite appointments without considering the views of the NAIC.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Political affiliation.—</heading><content style="-uslm-dtd:text">Not more than 4 Board members appointed under paragraph (1)(A) shall belong to the same political party.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Former state insurance commissioners.—</heading> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">If, after offering each currently serving State insurance commissioner an appointment to the Board, fewer than 8 State insurance commissioners have accepted appointment to the Board, the President may appoint the remaining State insurance commissioner Board members, as required under paragraph (1)(A), of the appropriate political party as required under subparagraph (B), from among individuals who are former State insurance commissioners.</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><heading style="-uslm-dtd:header">Limitation.—</heading><content style="-uslm-dtd:text">A former State insurance commissioner appointed as described in clause (i) may not be employed by or have any present direct or indirect financial interest in any insurer, insurance producer, or other entity in the insurance industry, other than direct or indirect ownership of, or beneficial interest in, an insurance policy or annuity contract written or sold by an insurer.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><heading style="-uslm-dtd:header">Service through term.—</heading><content style="-uslm-dtd:text">If a Board member appointed under paragraph (1)(A) ceases to be a State insurance commissioner during the term of the Board member, the Board member shall cease to be a Board member.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Private sector representatives.—</heading><content style="-uslm-dtd:text">In making any appointment pursuant to subparagraph (B) or (C) of paragraph (1), the President may seek recommendations for candidates from groups representing the category of individuals described, which shall not be binding on the President.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">State insurance commissioner defined.—</heading><content style="-uslm-dtd:text">For purposes of this subsection, the term ‘<quotedText style="-uslm-dtd:quote">State insurance commissioner</quotedText>’ means a person who serves in the position in State government, or on the board, commission, or other body that is the primary insurance regulatory authority for the State.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">“(d) </num><heading style="-uslm-dtd:header">Terms.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Except as provided under paragraph (2), the term of service for each Board member shall be 2 years.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Exceptions.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header"> <inline style="-uslm-dtd:enum-in-header">1-year</inline> terms.—</heading><chapeau style="-uslm-dtd:text">The term of service shall be 1 year, as designated by the President at the time of the nomination of the subject Board members for—</chapeau> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><content style="-uslm-dtd:text">4 of the State insurance commissioner Board members initially appointed under paragraph (1)(A), of whom not more than 2 shall belong to the same political party;</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">“(ii) </num><content style="-uslm-dtd:text">1 of the Board members initially appointed under paragraph (1)(B); and</content> </clause> <clause style="-uslm-dtd:clause" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">“(iii) </num><content style="-uslm-dtd:text">1 of the Board members initially appointed under paragraph (1)(C).</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Expiration of term.—</heading><content style="-uslm-dtd:text">A Board member may continue to serve after the expiration of the term to which the Board member was appointed for the earlier of 2 years or until a successor is appointed.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><heading style="-uslm-dtd:header">Mid-term appointments.—</heading><content style="-uslm-dtd:text">A Board member appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of the Board member was appointed shall be appointed only for the remainder of that term.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Successive terms.—</heading><content style="-uslm-dtd:text">Board members may be reappointed to successive terms.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="e">“(e) </num><heading style="-uslm-dtd:header">Initial Appointments.—</heading><content style="-uslm-dtd:text">The appointment of initial Board members shall be made no later than 90 days after the date of enactment of the National Association of Registered Agents and Brokers Reform Act of 2015.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="f">“(f) </num><heading style="-uslm-dtd:header">Meetings.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">The Board shall meet—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">at the call of the chairperson;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">as requested in writing to the chairperson by not fewer than 5 Board members; or</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">as otherwise provided by the bylaws of the Association.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Quorum required.—</heading><content style="-uslm-dtd:text">A majority of all Board members shall constitute a quorum.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Voting.—</heading><content style="-uslm-dtd:text">Decisions of the Board shall require the approval of a majority of all Board members present at a meeting, a quorum being present.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Initial meeting.—</heading><content style="-uslm-dtd:text">The Board shall hold its first meeting not later than 45 days after the date on which all initial Board members have been appointed.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="g">“(g) </num><heading style="-uslm-dtd:header">Restriction on Confidential Information.—</heading><content style="-uslm-dtd:text">Board members appointed pursuant to subparagraphs (B) and (C) of subsection (c)(1) shall not have access to confidential information received by the Association in connection with complaints, investigations, or disciplinary proceedings involving insurance producers.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="h">“(h) </num><heading style="-uslm-dtd:header">Ethics and Conflicts of Interest.—</heading><chapeau style="-uslm-dtd:text">The Board shall issue and enforce an ethical conduct code to address permissible and prohibited activities of Board members and Association officers, employees, agents, or consultants. The code shall, at a minimum, include provisions that prohibit any Board member or Association officer, employee, agent or consultant from—</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">engaging in unethical conduct in the course of performing Association duties;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">participating in the making or influencing the making of any Association decision, the outcome of which the Board member, officer, employee, agent, or consultant knows or had reason to know would have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the person or a member of the immediate family of the person;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">accepting any gift from any person or entity other than the Association that is given because of the position held by the person in the Association;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><content style="-uslm-dtd:text">making political contributions to any person or entity on behalf of the Association; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">“(5) </num><content style="-uslm-dtd:text">lobbying or paying a person to lobby on behalf of the Association.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">“(i) </num><heading style="-uslm-dtd:header">Compensation.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">Except as provided in paragraph (2), no Board member may receive any compensation from the Association or any other person or entity on account of Board membership.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Travel expenses and per diem.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="325">“SEC. 325. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6755">15 U.S.C. 6755</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">BYLAWS, STANDARDS, AND DISCIPLINARY ACTIONS </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Adoption and Amendment of Bylaws and Standards.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Procedures.—</heading><content style="-uslm-dtd:text">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 ‘<quotedText style="-uslm-dtd:quote">Administrative Procedure Act</quotedText>’).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Copy required to be filed.—</heading><content style="-uslm-dtd:text">The Board shall submit to the President, through the Department of the Treasury, and the States (including State insurance regulators), and shall publish on the website of the Association, all proposed bylaws and standards of the Association, or any proposed amendment to the bylaws or standards of the Association, accompanied by a concise general statement of the basis and purpose of such proposal.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Effective Date.—</heading><content style="-uslm-dtd:text">Any proposed bylaw or standard of the Association, and any proposed amendment to the bylaws or standards of the Association, shall take effect, after notice under paragraph (2) and opportunity for public comment, on such date as the Association may designate, unless suspended under section 329(c).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><content style="-uslm-dtd:text">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 ‘<quotedText style="-uslm-dtd:quote">Administrative Procedure Act</quotedText>’).</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Disciplinary Action by the Association.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Specification of charges.—</heading><content style="-uslm-dtd:text">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 ‘<quotedText style="-uslm-dtd:quote">disciplinary action</quotedText>’) or whether to assess fines or monetary penalties, the Association shall bring specific charges, notify the member of the charges, give the member an opportunity to defend against the charges, and keep a record.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Supporting statement.—</heading><chapeau style="-uslm-dtd:text">A determination to take disciplinary action shall be supported by a statement setting forth—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">any act or practice in which the member has been found to have been engaged;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">the specific provision of this subtitle or standard of the Association that any such act or practice is deemed to violate; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">the sanction imposed and the reason for the sanction.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Ineligibility of private sector representatives.—</heading><chapeau style="-uslm-dtd:text">Board members appointed pursuant to section 324(c)(3) may not—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">participate in any disciplinary action or be counted toward establishing a quorum during a disciplinary action; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">have access to confidential information concerning any disciplinary action.</content> </subparagraph> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="326">“SEC. 326. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6756">15 U.S.C. 6756</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">POWERS </heading> <chapeau style="-uslm-dtd:text" class="block">“In addition to all the powers conferred upon a nonprofit corporation by the District of Columbia Nonprofit Corporation Act, the Association shall have the power to—</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><content style="-uslm-dtd:text">establish and collect such membership fees as the Association finds necessary to impose to cover the costs of its operations;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><content style="-uslm-dtd:text">adopt, amend, and repeal bylaws, procedures, or standards governing the conduct of Association business and performance of its duties;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><content style="-uslm-dtd:text">establish procedures for providing notice and opportunity for comment pursuant to section 325(a);</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><content style="-uslm-dtd:text">enter into and perform such agreements as necessary to carry out the duties of the Association;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">“(5) </num><content style="-uslm-dtd:text">hire employees, professionals, or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of this subtitle, and determine their qualification;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="6">“(6) </num><content style="-uslm-dtd:text">establish personnel policies of the Association and programs relating to, among other things, conflicts of interest, rates of compensation, where applicable, and qualifications of personnel;</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="7">“(7) </num><content style="-uslm-dtd:text">borrow money; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="8">“(8) </num><content style="-uslm-dtd:text">secure funding for such amounts as the Association determines to be necessary and appropriate to organize and begin operations of the Association, which shall be treated as loans to be repaid by the Association with interest at market rate.</content> </paragraph> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="327">“SEC. 327. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6757">15 U.S.C. 6757</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">REPORT BY THE ASSOCIATION </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">As soon as practicable after the close of each fiscal year, the Association shall submit to the President, through the Department of the Treasury, and the States (including State insurance regulators), and shall publish on the website of the Association, a written report regarding the conduct of its business, and the exercise of the other rights and powers granted by this subtitle, during such fiscal year.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Financial Statements.—</heading><content style="-uslm-dtd:text">Each report submitted under subsection (a) with respect to any fiscal year shall include audited financial statements setting forth the financial position of the Association at the end of such fiscal year and the results of its operations (including the source and application of its funds) for such fiscal year.</content> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="328">“SEC. 328. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6758">15 U.S.C. 6758</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">LIABILITY OF THE ASSOCIATION AND THE BOARD MEMBERS, OFFICERS, AND EMPLOYEES OF THE ASSOCIATION </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Association shall not be deemed to be an insurer or insurance producer within the meaning of any State law, rule, regulation, or order regulating or taxing insurers, insurance producers, or other entities engaged in the business of insurance, including provisions imposing premium taxes, regulating insurer solvency or financial condition, establishing guaranty funds and levying assessments, or requiring claims settlement practices.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Liability of Board Members, Officers, and Employees.—</heading><content style="-uslm-dtd:text">No Board member, officer, or employee of the Association shall be personally liable to any person for any action taken or omitted in good faith in any matter within the scope of their responsibilities in connection with the Association.</content> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="329">“SEC. 329. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6759">15 U.S.C. 6759</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">PRESIDENTIAL OVERSIGHT </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Removal of Board.—</heading><content style="-uslm-dtd:text">If the President determines that the Association is acting in a manner contrary to the interests of the public or the purposes of this subtitle or has failed to perform its duties under this subtitle, the President may remove the entire existing Board for the remainder of the term to which the Board members were appointed and appoint, in accordance with section 324 and with the advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, new Board members to fill the vacancies on the Board for the remainder of the terms.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Removal of Board Member.—</heading><content style="-uslm-dtd:text">The President may remove a Board member only for neglect of duty or malfeasance in office.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">“(c) </num><heading style="-uslm-dtd:header">Suspension of Bylaws and Standards and Prohibition of Actions.—</heading><content style="-uslm-dtd:text">Following notice to the Board, the President, or a person designated by the President for such purpose, may suspend the effectiveness of any bylaw or standard, or prohibit any action, of the Association that the President or the designee determines is contrary to the purposes of this subtitle.</content> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="330">“SEC. 330. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6760">15 U.S.C. 6760</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">RELATIONSHIP TO STATE LAW </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Preemption of State Laws.—</heading><content style="-uslm-dtd:text">State laws, regulations, provisions, or other actions purporting to regulate insurance producers shall be preempted to the extent provided in subsection (b).</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Prohibited Actions.—</heading> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">No State shall—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">impede the activities of, take any action against, or apply any provision of law or regulation arbitrarily or discriminatorily to, any insurance producer because that insurance producer or any affiliate plans to become, has applied to become, or is a member of the Association;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">impose any requirement upon a member of the Association that it pay fees different from those required to be paid to that State were it not a member of the Association; or</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">impose any continuing education requirements on any nonresident insurance producer that is a member of the Association.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">States other than a home state.—</heading><chapeau style="-uslm-dtd:text">No State, other than the home State of a member of the Association, shall—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><content style="-uslm-dtd:text">impose any licensing, personal or corporate qualifications, education, training, experience, residency, continuing education, or bonding requirement upon a member of the Association that is different from the criteria for membership in the Association or renewal of such membership;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><content style="-uslm-dtd:text">impose any requirement upon a member of the Association that it be licensed, registered, or otherwise qualified to do business or remain in good standing in the State, including any requirement that the insurance producer register as a foreign company with the secretary of state or equivalent State official;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">“(C) </num><content style="-uslm-dtd:text">require that a member of the Association submit to a criminal history record check as a condition of doing business in the State; or</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">“(D) </num><content style="-uslm-dtd:text">impose any licensing, registration, or appointment requirements upon a member of the Association, or require a member of the Association to be authorized to operate as an insurance producer, in order to sell, solicit, or negotiate insurance for commercial property and casualty risks to an insured with risks located in more than one State, if the member is licensed or otherwise authorized to operate in the State where the insured maintains its principal place of business and the contract of insurance insures risks located in that State.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Preservation of state disciplinary authority.—</heading><content style="-uslm-dtd:text">Nothing in this section may be construed to prohibit a State from investigating and taking appropriate disciplinary action, including suspension or revocation of authority of an insurance producer to do business in a State, in accordance with State law and that is not inconsistent with the provisions of this section, against a member of the Association as a result of a complaint or for any alleged activity, regardless of whether the activity occurred before or after the insurance producer commenced doing business in the State pursuant to Association membership.</content> </paragraph> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="331">“SEC. 331. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6761">15 U.S.C. 6761</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">COORDINATION WITH FINANCIAL INDUSTRY REGULATORY AUTHORITY </heading> <content style="-uslm-dtd:text" class="block">“The Association shall coordinate with the Financial Industry Regulatory Authority in order to ease any administrative burdens that fall on members of the Association that are subject to regulation by the Financial Industry Regulatory Authority, consistent with the requirements of this subtitle and the Federal securities laws.</content> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="332">“SEC. 332. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6762">15 U.S.C. 6762</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">RIGHT OF ACTION </heading> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">“(a) </num><heading style="-uslm-dtd:header">Right of Action.—</heading><content style="-uslm-dtd:text">Any person aggrieved by a decision or action of the Association may, after reasonably exhausting available avenues for resolution within the Association, commence a civil action in an appropriate United States district court, and obtain all appropriate relief.</content> </subsection> <subsection style="-uslm-dtd:subsection" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">“(b) </num><heading style="-uslm-dtd:header">Association Interpretations.—</heading><content style="-uslm-dtd:text">In any action under subsection (a), the court shall give appropriate weight to the interpretation of the Association of its bylaws and standards and this subtitle.</content> </subsection> </section> <section style="-uslm-dtd:section" styleType="OLC"> <num style="-uslm-dtd:enum" value="333">“SEC. 333. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6763">15 U.S.C. 6763</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">FEDERAL FUNDING PROHIBITED </heading> <content style="-uslm-dtd:text" class="block">“The Association may not receive, accept, or borrow any amounts from the Federal Government to pay for, or reimburse, the Association for, the costs of establishing or operating the Association.</content> </section> <section style="-uslm-dtd:section" styleType="OLC" role="definitions"> <num style="-uslm-dtd:enum" value="334">“SEC. 334. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t15/s6764">15 U.S.C. 6764</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">DEFINITIONS </heading> <chapeau style="-uslm-dtd:text" class="block">“For purposes of this subtitle, the following definitions shall apply:</chapeau> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">“(1) </num><heading style="-uslm-dtd:header">Business entity.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">business entity</term>’ means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">“(2) </num><heading style="-uslm-dtd:header">Depository institution.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">depository institution</term>’ has the meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">“(3) </num><heading style="-uslm-dtd:header">Home state.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">home State</term>’ means the State in which the insurance producer maintains its principal place of residence or business and is licensed to act as an insurance producer.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Insurance.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">insurance</term>’ means any product, other than title insurance or bail bonds, defined or regulated as insurance by the appropriate State insurance regulatory authority.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">“(5) </num><heading style="-uslm-dtd:header">Insurance producer.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">insurance producer</term>’ means any insurance agent or broker, excess or surplus lines broker or agent, insurance consultant, limited insurance representative, and any other individual or entity that sells, solicits, or negotiates policies of insurance or offers advice, counsel, opinions or services related to insurance.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="6">“(6) </num><heading style="-uslm-dtd:header">Insurer.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">insurer</term>’ has the meaning as in section 313(e)(2)(B) of title 31, United States Code.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="7">“(7) </num><heading style="-uslm-dtd:header">Principal place of business.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">principal place of business</term>’ means the State in which an insurance producer maintains the headquarters of the insurance producer and, in the case of a business entity, where high-level officers of the entity direct, control, and coordinate the business activities of the business entity.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="8">“(8) </num><heading style="-uslm-dtd:header">Principal place of residence.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">principal place of residence</term>’ means the State in which an insurance producer resides for the greatest number of days during a calendar year.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="9">“(9) </num><heading style="-uslm-dtd:header">State.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">State</term>’ includes any State, the District of Columbia, any territory of the United States, and Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="10">“(10) </num><heading style="-uslm-dtd:header">State law.—</heading> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">“(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The term ‘<term style="-uslm-dtd:quote">State law</term>’ includes all laws, decisions, rules, regulations, or other State action having the effect of law, of any State.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">“(B) </num><heading style="-uslm-dtd:header">Laws applicable in the district of columbia.—</heading><content style="-uslm-dtd:text">A law of the United States applicable only to or within the District of Columbia shall be treated as a State law rather than a law of the United States.”</content> </subparagraph> </paragraph> </section> </subtitle></quotedContent>.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tII/s202/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Technical Amendment.—</heading><content style="-uslm-dtd:text">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:<quotedContent style="-uslm-dtd:quoted-block"> <toc style="-uslm-dtd:toc"> <referenceItem style="-uslm-dtd:toc-entry" role="subtitle" class="centered"><designator>“Subtitle C—</designator><label>National Association of Registered Agents and Brokers</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 321.</designator><label> National Association of Registered Agents and Brokers.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 322.</designator><label> Purpose.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 323.</designator><label> Membership.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 324.</designator><label> Board of directors.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 325.</designator><label> Bylaws, standards, and disciplinary actions.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 326.</designator><label> Powers.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 327.</designator><label> Report by the Association.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 328.</designator><label> Liability of the Association and the Board members, officers, and employees of the Association.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 329.</designator><label> Presidential oversight.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 330.</designator><label> Relationship to State law.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 331.</designator><label> Coordination with financial industry regulatory authority.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 332.</designator><label> Right of action.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 333.</designator><label> Federal funding prohibited.</label></referenceItem> <referenceItem style="-uslm-dtd:toc-entry" role="section"><designator>“Sec. 334.</designator><label> Definitions.”</label></referenceItem> </toc></quotedContent>.</content> </subsection> </section> <num style="-uslm-dtd:enum" value="III">TITLE III—</num><heading style="-uslm-dtd:header">BUSINESS RISK MITIGATION AND PRICE STABILIZATION </heading> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tIII/s301" styleType="OLC"> <num style="-uslm-dtd:enum" value="301">SEC. 301. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t7/s1">7 U.S.C. 1 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">SHORT TITLE. </heading> <content style="-uslm-dtd:text" class="block">This title may be cited as the “<shortTitle style="-uslm-dtd:quote">Business Risk Mitigation and Price Stabilization Act of 2015</shortTitle>”.</content> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tIII/s302" styleType="OLC"> <num style="-uslm-dtd:enum" value="302">SEC. 302. </num><heading style="-uslm-dtd:header">MARGIN REQUIREMENTS. </heading> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tIII/s302/a" styleType="OLC"> <num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">Commodity Exchange Act Amendment.—</heading><content style="-uslm-dtd:text">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:<quotedContent style="-uslm-dtd:quoted-block"> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Applicability with respect to counterparties.—</heading><content style="-uslm-dtd:text">The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including the initial and variation margin requirements imposed by rules adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall not apply to a swap in which a counterparty qualifies for an exception under section 2(h)(7)(A), or an exemption issued under section 4(c)(1) from the requirements of section 2(h)(1)(A) for cooperative entities as defined in such exemption, or satisfies the criteria in section 2(h)(7)(D).”</content> </paragraph></quotedContent>.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/114/1/tIII/s302/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Securities Exchange Act Amendment.—</heading><content style="-uslm-dtd:text">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:<quotedContent style="-uslm-dtd:quoted-block"> <paragraph style="-uslm-dtd:paragraph" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">“(4) </num><heading style="-uslm-dtd:header">Applicability with respect to counterparties.—</heading><content style="-uslm-dtd:text">The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap in which a counterparty qualifies for an exception under section 3C(g)(1) or satisfies the criteria in section 3C(g)(4).”</content> </paragraph></quotedContent>.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/114/1/tIII/s303" styleType="OLC"> <num style="-uslm-dtd:enum" value="303">SEC. 303. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t7/s65">7 U.S.C. 65 note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">IMPLEMENTATION. </heading> <chapeau style="-uslm-dtd:text" class="block">The amendments made by this title to the Commodity Exchange Act shall be implemented—</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tIII/s303/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><chapeau style="-uslm-dtd:text">without regard to—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tIII/s303/1/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">chapter 35 of title 44, United States Code; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/114/1/tIII/s303/1/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">the notice and comment provisions of section 553 of title 5, United States Code;</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tIII/s303/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">through the promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/114/1/tIII/s303/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><content style="-uslm-dtd:text">such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules and regulations, that are limited to and directly a consequence of such amendments.</content> </paragraph> </section>