[Congressional Record Volume 159, Number 118 (Tuesday, September 10, 2013)]
[House]
[Pages H5443-H5449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


  NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM ACT OF 
                                  2013

  Mr. NEUGEBAUER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1155) to reform the National Association of Registered 
Agents and Brokers, as amended, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1155

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Association of 
     Registered Agents and Brokers Reform Act of 2013''.

     SEC. 2. REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF 
                   REGISTERED AGENTS AND BROKERS.

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

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

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

       ``(a) Establishment.--There is established the National 
     Association of Registered Agents and Brokers (referred to in 
     this subtitle as the `Association').
       ``(b) Status.--The Association shall--
       ``(1) be a nonprofit corporation;
       ``(2) not be an agent or instrumentality of the Federal 
     Government;
       ``(3) be an independent organization that may not be merged 
     with or into any other private or public entity; and
       ``(4) except as otherwise provided in this subtitle, be 
     subject to, and have all the powers conferred upon, a 
     nonprofit corporation by the District of Columbia Nonprofit 
     Corporation Act (D.C. Code, sec. 29-301.01 et seq.) or any 
     successor thereto.

     ``SEC. 322. PURPOSE.

       ``The purpose of the Association shall be to provide a 
     mechanism through which licensing, continuing education, and 
     other nonresident insurance producer qualification 
     requirements and conditions may be adopted and applied on a 
     multi-state basis without affecting the laws, rules, and 
     regulations, and preserving the rights of a State, pertaining 
     to--
       ``(1) licensing, continuing education, and other 
     qualification requirements of insurance producers that are 
     not members of the Association;
       ``(2) resident or nonresident insurance producer 
     appointment requirements;
       ``(3) supervising and disciplining resident and nonresident 
     insurance producers;
       ``(4) establishing licensing fees for resident and 
     nonresident insurance producers so that there is no loss of 
     insurance producer licensing revenue to the State; and
       ``(5) prescribing and enforcing laws and regulations 
     regulating the conduct of resident and nonresident insurance 
     producers.

     ``SEC. 323. MEMBERSHIP.

       ``(a) Eligibility.--
       ``(1) In general.--Any insurance producer licensed in its 
     home State shall, subject to paragraphs (2) and (4), be 
     eligible to become a member of the Association.
       ``(2) Ineligibility for suspension or revocation of 
     license.--Subject to paragraph (3), an insurance producer is 
     not eligible to become a member of the Association if a State 
     insurance regulator has suspended or revoked the insurance 
     license of the insurance producer in that State.
       ``(3) Resumption of eligibility.--Paragraph (2) shall cease 
     to apply to any insurance producer if--
       ``(A) the State insurance regulator reissues or renews the 
     license of the insurance producer in the State in which the 
     license was suspended or revoked, or otherwise terminates or 
     vacates the suspension or revocation; or
       ``(B) the suspension or revocation expires or is 
     subsequently overturned by a court of competent jurisdiction.
       ``(4) Criminal history record check required.--
       ``(A) In general.--An insurance producer who is an 
     individual shall not be eligible to become a member of the 
     Association unless the insurance producer has undergone a 
     criminal history record check that complies with regulations 
     prescribed by the Attorney General of the United States under 
     subparagraph (K).
       ``(B) Criminal history record check requested by home 
     state.--An insurance producer who is licensed in a State and 
     who has undergone a criminal history record check during the 
     2-year period preceding the date of submission of an 
     application to become a member of the Association, in 
     compliance with a requirement to undergo such criminal 
     history record check as a condition for such licensure in the 
     State, shall be deemed to have undergone a criminal history 
     record check for purposes of subparagraph (A).
       ``(C) Criminal history record check requested by 
     association.--
       ``(i) In general.--The Association shall, upon request by 
     an insurance producer licensed in a State, submit 
     fingerprints or other identification information obtained 
     from the insurance producer, and a request for a criminal 
     history record check of the insurance producer, to the 
     Federal Bureau of Investigation.
       ``(ii) Procedures.--The board of directors of the 
     Association (referred to in this subtitle as the `Board') 
     shall prescribe procedures for obtaining and utilizing 
     fingerprints or other identification information and criminal 
     history record information, including the establishment of 
     reasonable fees to defray the expenses of the Association in 
     connection with the performance of a criminal history record 
     check and appropriate safeguards for maintaining 
     confidentiality and security of the information. Any fees 
     charged pursuant to this clause shall be separate and 
     distinct from those charged by the Attorney General pursuant 
     to subparagraph (I).
       ``(D) Form of request.--A submission under subparagraph 
     (C)(i) shall include such fingerprints or other 
     identification information as is required by the Attorney 
     General concerning the person about whom the criminal history 
     record check is requested, and a statement signed by the 
     person authorizing the Attorney General to provide the 
     information to the Association and for the Association to 
     receive the information.
       ``(E) Provision of information by attorney general.--Upon 
     receiving a submission under subparagraph (C)(i) from the 
     Association, the Attorney General shall search all criminal 
     history records of the Federal Bureau of Investigation, 
     including records of the Criminal Justice Information 
     Services Division of the Federal Bureau of Investigation, 
     that the Attorney General determines appropriate for criminal 
     history records corresponding to the fingerprints or other 
     identification information provided under subparagraph (D) 
     and provide all criminal history record information included 
     in the request to the Association.
       ``(F) Limitation on permissible uses of information.--Any 
     information provided to the Association under subparagraph 
     (E) may only--
       ``(i) be used for purposes of determining compliance with 
     membership criteria established by the Association;
       ``(ii) be disclosed to State insurance regulators, or 
     Federal or State law enforcement agencies, in conformance 
     with applicable law; or
       ``(iii) be disclosed, upon request, to the insurance 
     producer to whom the criminal history record information 
     relates.
       ``(G) Penalty for improper use or disclosure.--Whoever 
     knowingly uses any information provided under subparagraph 
     (E) for a purpose not authorized in subparagraph (F), or 
     discloses any such information to anyone not authorized to 
     receive it, shall be fined not more than $50,000 per 
     violation as determined by a court of competent jurisdiction.
       ``(H) Reliance on information.--Neither the Association nor 
     any of its Board members, officers, or employees shall be 
     liable in any action for using information provided under 
     subparagraph (E) as permitted under subparagraph (F) in good 
     faith and in reasonable reliance on its accuracy.
       ``(I) Fees.--The Attorney General may charge a reasonable 
     fee for conducting the search and providing the information 
     under subparagraph (E), and any such fee shall be collected 
     and remitted by the Association to the Attorney General.
       ``(J) Rule of construction.--Nothing in this paragraph 
     shall be construed as--
       ``(i) requiring a State insurance regulator to perform 
     criminal history record checks under this section; or
       ``(ii) limiting any other authority that allows access to 
     criminal history records.
       ``(K) Regulations.--The Attorney General shall prescribe 
     regulations to carry out this paragraph, which shall 
     include--
       ``(i) appropriate protections for ensuring the 
     confidentiality of information provided under subparagraph 
     (E); and
       ``(ii) procedures providing a reasonable opportunity for an 
     insurance producer to contest the accuracy of information 
     regarding the insurance producer provided under subparagraph 
     (E).
       ``(L) Ineligibility for membership.--
       ``(i) In general.--The Association may, under reasonably 
     consistently applied standards, deny membership to an 
     insurance producer on the basis of criminal history record 
     information provided under subparagraph (E), or where the 
     insurance producer has been subject to disciplinary action, 
     as described in paragraph (2).
       ``(ii) Rights of applicants denied membership.--The 
     Association shall notify any insurance producer who is denied 
     membership on the basis of criminal history record 
     information provided under subparagraph (E) of the right of 
     the insurance producer to--

       ``(I) obtain a copy of all criminal history record 
     information provided to the Association under subparagraph 
     (E) with respect to the insurance producer; and
       ``(II) challenge the denial of membership based on the 
     accuracy and completeness of the information.

       ``(M) Definition.--For purposes of this paragraph, the term 
     `criminal history record check' means a national background 
     check of criminal history records of the Federal Bureau of 
     Investigation.
       ``(b) Authority to Establish Membership Criteria.--The 
     Association may establish membership criteria that bear a 
     reasonable relationship to the purposes for which the 
     Association was established.
       ``(c) Establishment of Classes and Categories of 
     Membership.--
       ``(1) Classes of membership.--The Association may establish 
     separate classes of

[[Page H5444]]

     membership, with separate criteria, if the Association 
     reasonably determines that performance of different duties 
     requires different levels of education, training, experience, 
     or other qualifications.
       ``(2) Business entities.--The Association shall establish a 
     class of membership and membership criteria for business 
     entities. A business entity that applies for membership shall 
     be required to designate an individual Association member 
     responsible for the compliance of the business entity with 
     Association standards and the insurance laws, standards, and 
     regulations of any State in which the business entity seeks 
     to do business on the basis of Association membership.
       ``(3) Categories.--
       ``(A) Separate categories for insurance producers 
     permitted.--The Association may establish separate categories 
     of membership for insurance producers and for other persons 
     or entities within each class, based on the types of 
     licensing categories that exist under State laws.
       ``(B) Separate treatment for depository institutions 
     prohibited.--No special categories of membership, and no 
     distinct membership criteria, shall be established for 
     members that are depository institutions or for employees, 
     agents, or affiliates of depository institutions.
       ``(d) Membership Criteria.--
       ``(1) In general.--The Association may establish criteria 
     for membership which shall include standards for personal 
     qualifications, education, training, and experience. The 
     Association shall not establish criteria that unfairly limit 
     the ability of a small insurance producer to become a member 
     of the Association, including imposing discriminatory 
     membership fees.
       ``(2) Qualifications.--In establishing criteria under 
     paragraph (1), the Association shall not adopt any 
     qualification less protective to the public than that 
     contained in the National Association of Insurance 
     Commissioners (referred to in this subtitle as the `NAIC') 
     Producer Licensing Model Act in effect as of the date of 
     enactment of the National Association of Registered Agents 
     and Brokers Reform Act of 2013, and shall consider the 
     highest levels of insurance producer qualifications 
     established under the licensing laws of the States.
       ``(3) Assistance from states.--
       ``(A) In general.--The Association may request a State to 
     provide assistance in investigating and evaluating the 
     eligibility of a prospective member for membership in the 
     Association.
       ``(B) Authorization of information sharing.--A submission 
     under subsection (a)(4)(C)(i) made by an insurance producer 
     licensed in a State shall include a statement signed by the 
     person about whom the assistance is requested authorizing--
       ``(i) the State to share information with the Association; 
     and
       ``(ii) the Association to receive the information.
       ``(C) Rule of construction.--Subparagraph (A) shall not be 
     construed as requiring or authorizing any State to adopt new 
     or additional requirements concerning the licensing or 
     evaluation of insurance producers.
       ``(4) Denial of membership.--The Association may, based on 
     reasonably consistently applied standards, deny membership to 
     any State-licensed insurance producer for failure to meet the 
     membership criteria established by the Association.
       ``(e) Effect of Membership.--
       ``(1) Authority of association members.--Membership in the 
     Association shall--
       ``(A) authorize an insurance producer to sell, solicit, or 
     negotiate insurance in any State for which the member pays 
     the licensing fee set by the State for any line or lines of 
     insurance specified in the home State license of the 
     insurance producer, and exercise all such incidental powers 
     as shall be necessary to carry out such activities, including 
     claims adjustments and settlement to the extent permissible 
     under the laws of the State, risk management, employee 
     benefits advice, retirement planning, and any other 
     insurance-related consulting activities;
       ``(B) be the equivalent of a nonresident insurance producer 
     license for purposes of authorizing the insurance producer to 
     engage in the activities described in subparagraph (A) in any 
     State where the member pays the licensing fee; and
       ``(C) be the equivalent of a nonresident insurance producer 
     license for the purpose of subjecting an insurance producer 
     to all laws, regulations, provisions or other action of any 
     State concerning revocation, suspension, or other enforcement 
     action related to the ability of a member to engage in any 
     activity within the scope of authority granted under this 
     subsection and to all State laws, regulations, provisions, 
     and actions preserved under paragraph (5).
       ``(2) Violent crime control and law enforcement act of 
     1994.--Nothing in this subtitle shall be construed to alter, 
     modify, or supercede any requirement established by section 
     1033 of title 18, United States Code.
       ``(3) Agent for remitting fees.--The Association shall act 
     as an agent for any member for purposes of remitting 
     licensing fees to any State pursuant to paragraph (1).
       ``(4) Notification of action.--
       ``(A) In general.--The Association shall notify the States 
     (including State insurance regulators) and the NAIC when an 
     insurance producer has satisfied the membership criteria of 
     this section. The States (including State insurance 
     regulators) shall have 10 business days after the date of the 
     notification in order to provide the Association with 
     evidence that the insurance producer does not satisfy the 
     criteria for membership in the Association.
       ``(B) Ongoing disclosures required.--On an ongoing basis, 
     the Association shall disclose to the States (including State 
     insurance regulators) and the NAIC a list of the States in 
     which each member is authorized to operate. The Association 
     shall immediately notify the States (including State 
     insurance regulators) and the NAIC when a member is newly 
     authorized to operate in one or more States, or is no longer 
     authorized to operate in one or more States on the basis of 
     Association membership.
       ``(5) Preservation of consumer protection and market 
     conduct regulation.--
       ``(A) In general.--No provision of this section shall be 
     construed as altering or affecting the applicability or 
     continuing effectiveness of any law, regulation, provision, 
     or other action of any State, including those described in 
     subparagraph (B), to the extent that the State law, 
     regulation, provision, or other action is not inconsistent 
     with the provisions of this subtitle related to market entry 
     for nonresident insurance producers, and then only to the 
     extent of the inconsistency.
       ``(B) Preserved regulations.--The laws, regulations, 
     provisions, or other actions of any State referred to in 
     subparagraph (A) include laws, regulations, provisions, or 
     other actions that--
       ``(i) regulate market conduct, insurance producer conduct, 
     or unfair trade practices;
       ``(ii) establish consumer protections; or
       ``(iii) require insurance producers to be appointed by a 
     licensed or authorized insurer.
       ``(f) Biennial Renewal.--Membership in the Association 
     shall be renewed on a biennial basis.
       ``(g) Continuing Education.--
       ``(1) In general.--The Association shall establish, as a 
     condition of membership, continuing education requirements 
     which shall be comparable to the continuing education 
     requirements under the licensing laws of a majority of the 
     States.
       ``(2) State continuing education requirements.--A member 
     may not be required to satisfy continuing education 
     requirements imposed under the laws, regulations, provisions, 
     or actions of any State other than the home State of the 
     member.
       ``(3) Reciprocity.--The Association shall not require a 
     member to satisfy continuing education requirements that are 
     equivalent to any continuing education requirements of the 
     home State of the member that have been satisfied by the 
     member during the applicable licensing period.
       ``(4) Limitation on the association.--The Association shall 
     not directly or indirectly offer any continuing education 
     courses for insurance producers.
       ``(h) Probation, Suspension and Revocation.--
       ``(1) Disciplinary action.--The Association may place an 
     insurance producer that is a member of the Association on 
     probation or suspend or revoke the membership of the 
     insurance producer in the Association, or assess monetary 
     fines or penalties, as the Association determines to be 
     appropriate, if--
       ``(A) the insurance producer fails to meet the applicable 
     membership criteria or other standards established by the 
     Association;
       ``(B) the insurance producer has been subject to 
     disciplinary action pursuant to a final adjudicatory 
     proceeding under the jurisdiction of a State insurance 
     regulator;
       ``(C) an insurance license held by the insurance producer 
     has been suspended or revoked by a State insurance regulator; 
     or
       ``(D) the insurance producer has been convicted of a crime 
     that would have resulted in the denial of membership pursuant 
     to subsection (a)(4)(L)(i) at the time of application, and 
     the Association has received a copy of the final disposition 
     from a court of competent jurisdiction.
       ``(2) Violations of association standards.--The Association 
     shall have the power to investigate alleged violations of 
     Association standards.
       ``(3) Reporting.--The Association shall immediately notify 
     the States (including State insurance regulators) and the 
     NAIC when the membership of an insurance producer has been 
     placed on probation or has been suspended, revoked, or 
     otherwise terminated, or when the Association has assessed 
     monetary fines or penalties.
       ``(i) Consumer Complaints.--
       ``(1) In general.--The Association shall--
       ``(A) refer any complaint against a member of the 
     Association from a consumer relating to alleged misconduct or 
     violations of State insurance laws to the State insurance 
     regulator where the consumer resides and, when appropriate, 
     to any additional State insurance regulator, as determined by 
     standards adopted by the Association; and
       ``(B) make any related records and information available to 
     each State insurance regulator to whom the complaint is 
     forwarded.
       ``(2) Telephone and other access.--The Association shall 
     maintain a toll-free number for purposes of this subsection 
     and, as practicable, other alternative means of communication 
     with consumers, such as an Internet webpage.
       ``(3) Final disposition of investigation.--State insurance 
     regulators shall provide the Association with information 
     regarding the final disposition of a complaint referred 
     pursuant to paragraph (1)(A), but nothing shall be construed 
     to compel a State to release confidential investigation 
     reports or other

[[Page H5445]]

     information protected by State law to the Association.
       ``(j) Information Sharing.--The Association may--
       ``(1) share documents, materials, or other information, 
     including confidential and privileged documents, with a 
     State, Federal, or international governmental entity or with 
     the NAIC or other appropriate entity referred to paragraphs 
     (3) and (4), provided that the recipient has the authority 
     and agrees to maintain the confidentiality or privileged 
     status of the document, material, or other information;
       ``(2) limit the sharing of information as required under 
     this subtitle with the NAIC or any other non-governmental 
     entity, in circumstances under which the Association 
     determines that the sharing of such information is 
     unnecessary to further the purposes of this subtitle;
       ``(3) establish a central clearinghouse, or utilize the 
     NAIC or another appropriate entity, as determined by the 
     Association, as a central clearinghouse, for use by the 
     Association and the States (including State insurance 
     regulators), through which members of the Association may 
     disclose their intent to operate in 1 or more States and pay 
     the licensing fees to the appropriate States; and
       ``(4) establish a database, or utilize the NAIC or another 
     appropriate entity, as determined by the Association, as a 
     database, for use by the Association and the States 
     (including State insurance regulators) for the collection of 
     regulatory information concerning the activities of insurance 
     producers.
       ``(k) Effective Date.--The provisions of this section shall 
     take effect on the later of--
       ``(1) the expiration of the 2-year period beginning on the 
     date of enactment of the National Association of Registered 
     Agents and Brokers Reform Act of 2013; and
       ``(2) the date of incorporation of the Association.

     ``SEC. 324. BOARD OF DIRECTORS.

       ``(a) Establishment.--There is established a board of 
     directors of the Association, which shall have authority to 
     govern and supervise all activities of the Association.
       ``(b) Powers.--The Board shall have such of the powers and 
     authority of the Association as may be specified in the 
     bylaws of the Association.
       ``(c) Composition.--
       ``(1) In general.--The Board shall consist of 13 members 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate, in accordance with the 
     procedures established under Senate Resolution 116 of the 
     112th Congress, of whom--
       ``(A) 8 shall be State insurance commissioners appointed in 
     the manner provided in paragraph (2), 1 of whom shall be 
     designated by the President to serve as the chairperson of 
     the Board until the Board elects one such State insurance 
     commissioner Board member to serve as the chairperson of the 
     Board;
       ``(B) 3 shall have demonstrated expertise and experience 
     with property and casualty insurance producer licensing; and
       ``(C) 2 shall have demonstrated expertise and experience 
     with life or health insurance producer licensing.
       ``(2) State insurance regulator representatives.--
       ``(A) Recommendations.--Before making any appointments 
     pursuant to paragraph (1)(A), the President shall request a 
     list of recommended candidates from the States through the 
     NAIC, which shall not be binding on the President. If the 
     NAIC fails to submit a list of recommendations not later than 
     15 business days after the date of the request, the President 
     may make the requisite appointments without considering the 
     views of the NAIC.
       ``(B) Political affiliation.--Not more than 4 Board members 
     appointed under paragraph (1)(A) shall belong to the same 
     political party.
       ``(C) Former state insurance commissioners.--
       ``(i) In general.--If, after offering each currently 
     serving State insurance commissioner an appointment to the 
     Board, fewer than 8 State insurance commissioners have 
     accepted appointment to the Board, the President may appoint 
     the remaining State insurance commissioner Board members, as 
     required under paragraph (1)(A), of the appropriate political 
     party as required under subparagraph (B), from among 
     individuals who are former State insurance commissioners.
       ``(ii) Limitation.--A former State insurance commissioner 
     appointed as described in clause (i) may not be employed by 
     or have any present direct or indirect financial interest in 
     any insurer, insurance producer, or other entity in the 
     insurance industry, other than direct or indirect ownership 
     of, or beneficial interest in, an insurance policy or annuity 
     contract written or sold by an insurer.
       ``(D) Service through term.--If a Board member appointed 
     under paragraph (1)(A) ceases to be a State insurance 
     commissioner during the term of the Board member, the Board 
     member shall cease to be a Board member.
       ``(3) Private sector representatives.--In making any 
     appointment pursuant to subparagraph (B) or (C) of paragraph 
     (1), the President may seek recommendations for candidates 
     from groups representing the category of individuals 
     described, which shall not be binding on the President.
       ``(4) State insurance commissioner defined.--For purposes 
     of this subsection, the term `State insurance commissioner' 
     means a person who serves in the position in State 
     government, or on the board, commission, or other body that 
     is the primary insurance regulatory authority for the State.
       ``(d) Terms.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the term of service for each Board member shall be 2 years.
       ``(2) Exceptions.--
       ``(A) 1-year terms.--The term of service shall be 1 year, 
     as designated by the President at the time of the nomination 
     of the subject Board members for--
       ``(i) 4 of the State insurance commissioner Board members 
     initially appointed under paragraph (1)(A), of whom not more 
     than 2 shall belong to the same political party;
       ``(ii) 1 of the Board members initially appointed under 
     paragraph (1)(B); and
       ``(iii) 1 of the Board members initially appointed under 
     paragraph (1)(C).
       ``(B) Expiration of term.--A Board member may continue to 
     serve after the expiration of the term to which the Board 
     member was appointed for the earlier of 2 years or until a 
     successor is appointed.
       ``(C) Mid-term appointments.--A Board member appointed to 
     fill a vacancy occurring before the expiration of the term 
     for which the predecessor of the Board member was appointed 
     shall be appointed only for the remainder of that term.
       ``(3) Successive terms.--Board members may be reappointed 
     to successive terms.
       ``(e) Initial Appointments.--The appointment of initial 
     Board members shall be made no later than 90 days after the 
     date of enactment of the National Association of Registered 
     Agents and Brokers Reform Act of 2013.
       ``(f) Meetings.--
       ``(1) In general.--The Board shall meet--
       ``(A) at the call of the chairperson;
       ``(B) as requested in writing to the chairperson by not 
     fewer than 5 Board members; or
       ``(C) as otherwise provided by the bylaws of the 
     Association.
       ``(2) Quorum required.--A majority of all Board members 
     shall constitute a quorum.
       ``(3) Voting.--Decisions of the Board shall require the 
     approval of a majority of all Board members present at a 
     meeting, a quorum being present.
       ``(4) Initial meeting.--The Board shall hold its first 
     meeting not later than 45 days after the date on which all 
     initial Board members have been appointed.
       ``(g) Restriction on Confidential Information.--Board 
     members appointed pursuant to subparagraphs (B) and (C) of 
     subsection (c)(1) shall not have access to confidential 
     information received by the Association in connection with 
     complaints, investigations, or disciplinary proceedings 
     involving insurance producers.
       ``(h) Ethics and Conflicts of Interest.--The Board shall 
     issue and enforce an ethical conduct code to address 
     permissible and prohibited activities of Board members and 
     Association officers, employees, agents, or consultants. The 
     code shall, at a minimum, include provisions that prohibit 
     any Board member or Association officer, employee, agent or 
     consultant from--
       ``(1) engaging in unethical conduct in the course of 
     performing Association duties;
       ``(2) participating in the making or influencing the making 
     of any Association decision, the outcome of which the Board 
     member, officer, employee, agent, or consultant knows or had 
     reason to know would have a reasonably foreseeable material 
     financial effect, distinguishable from its effect on the 
     public generally, on the person or a member of the immediate 
     family of the person;
       ``(3) accepting any gift from any person or entity other 
     than the Association that is given because of the position 
     held by the person in the Association;
       ``(4) making political contributions to any person or 
     entity on behalf of the Association; and
       ``(5) lobbying or paying a person to lobby on behalf of the 
     Association.
       ``(i) Compensation.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     Board member may receive any compensation from the 
     Association or any other person or entity on account of Board 
     membership.
       ``(2) Travel expenses and per diem.--Board members may be 
     reimbursed only by the Association for travel expenses, 
     including per diem in lieu of subsistence, at rates 
     consistent with rates authorized for employees of Federal 
     agencies under subchapter I of chapter 57 of title 5, United 
     States Code, while away from home or regular places of 
     business in performance of services for the Association.

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

       ``(a) Adoption and Amendment of Bylaws and Standards.--
       ``(1) Procedures.--The Association shall adopt procedures 
     for the adoption of bylaws and standards that are similar to 
     procedures under subchapter II of chapter 5 of title 5, 
     United States Code (commonly known as the `Administrative 
     Procedure Act').
       ``(2) Copy required to be filed.--The Board shall submit to 
     the President, through the Department of the Treasury, and 
     the States (including State insurance regulators), and shall 
     publish on the website of the Association, all proposed 
     bylaws and standards of the Association, or any proposed 
     amendment to the bylaws or standards of the Association, 
     accompanied by a concise

[[Page H5446]]

     general statement of the basis and purpose of such proposal.
       ``(3) Effective date.--Any proposed bylaw or standard of 
     the Association, and any proposed amendment to the bylaws or 
     standards of the Association, shall take effect, after notice 
     under paragraph (2) and opportunity for public comment, on 
     such date as the Association may designate, unless suspended 
     under section 329(c).
       ``(4) Rule of construction.--Nothing in this section shall 
     be construed to subject the Board or the Association to the 
     requirements of subchapter II of chapter 5 of title 5, United 
     States Code (commonly known as the `Administrative Procedure 
     Act').
       ``(b) Disciplinary Action by the Association.--
       ``(1) Specification of charges.--In any proceeding to 
     determine whether membership shall be denied, suspended, 
     revoked, or not renewed, or to determine whether a member of 
     the Association should be placed on probation (referred to in 
     this section as a `disciplinary action') or whether to assess 
     fines or monetary penalties, the Association shall bring 
     specific charges, notify the member of the charges, give the 
     member an opportunity to defend against the charges, and keep 
     a record.
       ``(2) Supporting statement.--A determination to take 
     disciplinary action shall be supported by a statement setting 
     forth--
       ``(A) any act or practice in which the member has been 
     found to have been engaged;
       ``(B) the specific provision of this subtitle or standard 
     of the Association that any such act or practice is deemed to 
     violate; and
       ``(C) the sanction imposed and the reason for the sanction.
       ``(3) Ineligibility of private sector representatives.--
     Board members appointed pursuant to section 324(c)(3) may 
     not--
       ``(A) participate in any disciplinary action or be counted 
     toward establishing a quorum during a disciplinary action; 
     and
       ``(B) have access to confidential information concerning 
     any disciplinary action.

     ``SEC. 326. POWERS.

       ``In addition to all the powers conferred upon a nonprofit 
     corporation by the District of Columbia Nonprofit Corporation 
     Act, the Association shall have the power to--
       ``(1) establish and collect such membership fees as the 
     Association finds necessary to impose to cover the costs of 
     its operations;
       ``(2) adopt, amend, and repeal bylaws, procedures, or 
     standards governing the conduct of Association business and 
     performance of its duties;
       ``(3) establish procedures for providing notice and 
     opportunity for comment pursuant to section 325(a);
       ``(4) enter into and perform such agreements as necessary 
     to carry out the duties of the Association;
       ``(5) hire employees, professionals, or specialists, and 
     elect or appoint officers, and to fix their compensation, 
     define their duties and give them appropriate authority to 
     carry out the purposes of this subtitle, and determine their 
     qualification;
       ``(6) establish personnel policies of the Association and 
     programs relating to, among other things, conflicts of 
     interest, rates of compensation, where applicable, and 
     qualifications of personnel;
       ``(7) borrow money; and
       ``(8) secure funding for such amounts as the Association 
     determines to be necessary and appropriate to organize and 
     begin operations of the Association, which shall be treated 
     as loans to be repaid by the Association with interest at 
     market rate.

     ``SEC. 327. REPORT BY THE ASSOCIATION.

       ``(a) In General.--As soon as practicable after the close 
     of each fiscal year, the Association shall submit to the 
     President, through the Department of the Treasury, and the 
     States (including State insurance regulators), and shall 
     publish on the website of the Association, a written report 
     regarding the conduct of its business, and the exercise of 
     the other rights and powers granted by this subtitle, during 
     such fiscal year.
       ``(b) Financial Statements.--Each report submitted under 
     subsection (a) with respect to any fiscal year shall include 
     audited financial statements setting forth the financial 
     position of the Association at the end of such fiscal year 
     and the results of its operations (including the source and 
     application of its funds) for such fiscal year.

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

       ``(a) In General.--The Association shall not be deemed to 
     be an insurer or insurance producer within the meaning of any 
     State law, rule, regulation, or order regulating or taxing 
     insurers, insurance producers, or other entities engaged in 
     the business of insurance, including provisions imposing 
     premium taxes, regulating insurer solvency or financial 
     condition, establishing guaranty funds and levying 
     assessments, or requiring claims settlement practices.
       ``(b) Liability of Board Members, Officers, and 
     Employees.--No Board member, officer, or employee of the 
     Association shall be personally liable to any person for any 
     action taken or omitted in good faith in any matter within 
     the scope of their responsibilities in connection with the 
     Association.

     ``SEC. 329. PRESIDENTIAL OVERSIGHT.

       ``(a) Removal of Board.--If the President determines that 
     the Association is acting in a manner contrary to the 
     interests of the public or the purposes of this subtitle or 
     has failed to perform its duties under this subtitle, the 
     President may remove the entire existing Board for the 
     remainder of the term to which the Board members were 
     appointed and appoint, in accordance with section 324 and 
     with the advice and consent of the Senate, in accordance with 
     the procedures established under Senate Resolution 116 of the 
     112th Congress, new Board members to fill the vacancies on 
     the Board for the remainder of the terms.
       ``(b) Removal of Board Member.--The President may remove a 
     Board member only for neglect of duty or malfeasance in 
     office.
       ``(c) Suspension of Bylaws and Standards and Prohibition of 
     Actions.--Following notice to the Board, the President, or a 
     person designated by the President for such purpose, may 
     suspend the effectiveness of any bylaw or standard, or 
     prohibit any action, of the Association that the President or 
     the designee determines is contrary to the purposes of this 
     subtitle.

     ``SEC. 330. RELATIONSHIP TO STATE LAW.

       ``(a) Preemption of State Laws.--State laws, regulations, 
     provisions, or other actions purporting to regulate insurance 
     producers shall be preempted to the extent provided in 
     subsection (b).
       ``(b) Prohibited Actions.--
       ``(1) In general.--No State shall--
       ``(A) impede the activities of, take any action against, or 
     apply any provision of law or regulation arbitrarily or 
     discriminatorily to, any insurance producer because that 
     insurance producer or any affiliate plans to become, has 
     applied to become, or is a member of the Association;
       ``(B) impose any requirement upon a member of the 
     Association that it pay fees different from those required to 
     be paid to that State were it not a member of the 
     Association; or
       ``(C) impose any continuing education requirements on any 
     nonresident insurance producer that is a member of the 
     Association.
       ``(2) States other than a home state.--No State, other than 
     the home State of a member of the Association, shall--
       ``(A) impose any licensing, personal or corporate 
     qualifications, education, training, experience, residency, 
     continuing education, or bonding requirement upon a member of 
     the Association that is different from the criteria for 
     membership in the Association or renewal of such membership;
       ``(B) impose any requirement upon a member of the 
     Association that it be licensed, registered, or otherwise 
     qualified to do business or remain in good standing in the 
     State, including any requirement that the insurance producer 
     register as a foreign company with the secretary of state or 
     equivalent State official;
       ``(C) require that a member of the Association submit to a 
     criminal history record check as a condition of doing 
     business in the State; or
       ``(D) impose any licensing, registration, or appointment 
     requirements upon a member of the Association, or require a 
     member of the Association to be authorized to operate as an 
     insurance producer, in order to sell, solicit, or negotiate 
     insurance for commercial property and casualty risks to an 
     insured with risks located in more than one State, if the 
     member is licensed or otherwise authorized to operate in the 
     State where the insured maintains its principal place of 
     business and the contract of insurance insures risks located 
     in that State.
       ``(3) Preservation of state disciplinary authority.--
     Nothing in this section may be construed to prohibit a State 
     from investigating and taking appropriate disciplinary 
     action, including suspension or revocation of authority of an 
     insurance producer to do business in a State, in accordance 
     with State law and that is not inconsistent with the 
     provisions of this section, against a member of the 
     Association as a result of a complaint or for any alleged 
     activity, regardless of whether the activity occurred before 
     or after the insurance producer commenced doing business in 
     the State pursuant to Association membership.

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

       ``The Association shall coordinate with the Financial 
     Industry Regulatory Authority in order to ease any 
     administrative burdens that fall on members of the 
     Association that are subject to regulation by the Financial 
     Industry Regulatory Authority, consistent with the 
     requirements of this subtitle and the Federal securities 
     laws.

     ``SEC. 332. RIGHT OF ACTION.

       ``(a) Right of Action.--Any person aggrieved by a decision 
     or action of the Association may, after reasonably exhausting 
     available avenues for resolution within the Association, 
     commence a civil action in an appropriate United States 
     district court, and obtain all appropriate relief.
       ``(b) Association Interpretations.--In any action under 
     subsection (a), the court shall give appropriate weight to 
     the interpretation of the Association of its bylaws and 
     standards and this subtitle.

     ``SEC. 333. FEDERAL FUNDING PROHIBITED.

       ``The Association may not receive, accept, or borrow any 
     amounts from the Federal Government to pay for, or reimburse, 
     the Association for, the costs of establishing or operating 
     the Association.

     ``SEC. 334. DEFINITIONS.

       ``For purposes of this subtitle, the following definitions 
     shall apply:
       ``(1) Business entity.--The term `business entity' means a 
     corporation, association,

[[Page H5447]]

     partnership, limited liability company, limited liability 
     partnership, or other legal entity.
       ``(2) Depository institution.--The term `depository 
     institution' has the meaning as in section 3 of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813).
       ``(3) Home state.--The term `home State' means the State in 
     which the insurance producer maintains its principal place of 
     residence or business and is licensed to act as an insurance 
     producer.
       ``(4) Insurance.--The term `insurance' means any product, 
     other than title insurance or bail bonds, defined or 
     regulated as insurance by the appropriate State insurance 
     regulatory authority.
       ``(5) Insurance producer.--The term `insurance producer' 
     means any insurance agent or broker, excess or surplus lines 
     broker or agent, insurance consultant, limited insurance 
     representative, and any other individual or entity that 
     sells, solicits, or negotiates policies of insurance or 
     offers advice, counsel, opinions or services related to 
     insurance.
       ``(6) Insurer.--The term `insurer' has the meaning as in 
     section 313(e)(2)(B) of title 31, United States Code.
       ``(7) Principal place of business.--The term `principal 
     place of business' means the State in which an insurance 
     producer maintains the headquarters of the insurance producer 
     and, in the case of a business entity, where high-level 
     officers of the entity direct, control, and coordinate the 
     business activities of the business entity.
       ``(8) Principal place of residence.--The term `principal 
     place of residence' means the State in which an insurance 
     producer resides for the greatest number of days during a 
     calendar year.
       ``(9) State.--The term `State' includes any State, the 
     District of Columbia, any territory of the United States, and 
     Puerto Rico, Guam, American Samoa, the Trust Territory of the 
     Pacific Islands, the Virgin Islands, and the Northern Mariana 
     Islands.
       ``(10) State law.--
       ``(A) In general.--The term `State law' includes all laws, 
     decisions, rules, regulations, or other State action having 
     the effect of law, of any State.
       ``(B) Laws applicable in the district of columbia.--A law 
     of the United States applicable only to or within the 
     District of Columbia shall be treated as a State law rather 
     than a law of the United States.''.
       (b) Technical Amendment.--The table of contents for the 
     Gramm-Leach-Bliley Act is amended by striking the items 
     relating to subtitle C of title III and inserting the 
     following new items:

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

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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Neugebauer) and the gentleman from Georgia (Mr. David Scott) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. NEUGEBAUER. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days in which to revise and extend their remarks and 
submit extraneous materials for the Record on H.R. 1155, as amended, 
currently under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. NEUGEBAUER. Mr. Speaker, I yield myself such time as I may 
consume.
  Thank you for the opportunity to speak on this important piece of 
insurance regulatory reform legislation today.
  The most serious regulatory challenges facing insurance agents and 
brokers are redundant, costly, and sometimes contradictory requirements 
that arise when they seek licenses on a multistate basis. It has become 
clear that the main cause of these problems is the failure of many 
States to issue licenses on a truly reciprocal basis.
  On average, multistate agents sell insurance in eight States. That 
means eight different applications, eight different procedures for 
admittance, eight separate background checks, and a multitude of 
inconsistent standards and duplicative processes. These requirements 
are not only costly and inefficient, but they hinder the ability of 
insurance agents and brokers to effectively address the needs of their 
consumers.
  Congress recognized the need to reform the insurance industry's 
licensing system back in 1999 when it incorporated the National 
Association of Registered Agents and Brokers subtitle into the Gramm-
Leach-Bliley Act. The Gramm-Leach-Bliley Act did not provide for the 
immediate establishment of NARAB and instead included a series of 
provisions to encourage States to simplify the licensing process.
  Unfortunately, the original NARAB that was passed in 1999 did not 
work. National nonresident licensing reciprocity has not been achieved, 
and the burden on insurance agents and brokers and the impact this 
burden directly has on consumers remains. Despite the best efforts of 
many stakeholders at making State-level improvements, it has become 
clear that true licensing reciprocity can be achieved only through 
additional congressional action.
  The bill we are considering today, H.R. 1155, the NARAB Reform Act--
or as it is commonly referred, NARAB II--modifies the original NARAB 
provisions in Gramm-Leach-Bliley and immediately establishes NARAB as a 
private, nonprofit entity managed by a board composed of eight 
insurance regulators and five marketplace representatives. NARAB II 
provides for nonresident insurance agent and broker licensing while 
preserving the rights of States to supervise and discipline insurance 
agents and brokers. Overall, this legislation would benefit 
policyholders by increasing marketplace competition and consumer 
choice, and by enabling insurance producers to more quickly and 
responsively serve the needs of their consumers.
  I'd like to thank my colleague from Georgia (Mr. David Scott) who 
introduced this piece of legislation with me earlier this year.
  This bill has almost 90 bipartisan cosponsors and is supported by 
groups such as the Independent Insurance Agents and Brokers of America, 
the National Association of Insurance Commissioners, the National 
Association of Insurance and Financial Advisors, the Council of 
Insurance Agents and Brokers, and major insurance company trades. The 
legislation has passed this Chamber by voice vote twice before, and the 
Senate Banking Committee unanimously approved an identical companion 
legislation.
  I ask that my colleagues support this practical and needed insurance 
regulatory reform by voting for the NARAB Reform Act.
  With that, I reserve the balance of my time.

                                    Congress of the United States,


                                     House of Representatives,

                                Washington, DC, September 9, 2013.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairman Hensarling, I am writing concerning H.R. 
     1155, the ``National Association of Registered Agents and 
     Brokers Reform Act,'' which was referred to your Committee.
       As you know, H.R. 1155, contains provisions within the 
     Committee on the Judiciary's Rule X jurisdiction. As a result 
     of your having consulted with the Committee and in order to 
     expedite the House's consideration of H.R. 1155, the 
     Committee on the Judiciary will not assert its jurisdictional 
     claim over this bill by seeking a sequential referral. 
     However, this is conditional on our mutual understanding and 
     agreement that doing so will in no way diminish or alter the 
     jurisdiction of the Committee on the Judiciary with respect 
     to the appointment of conferees or to any future 
     jurisdictional claim over the subject matters contained in 
     the bill or similar legislation.
       I would appreciate your response to this letter confirming 
     this understanding, and would request that you include a copy 
     of this letter and your response in the Congressional Record 
     during the floor consideration of this bill. Thank you in 
     advance for your cooperation.
           Sincerely,
                                                     Bob Goodlatte
     Chairman.
                                  ____

                                         House of Representatives,


                              Committee on Financial Services,

                                Washington, DC, September 9, 2013.
     Hon. Bob Goodlatte,
     Chairman, Committee on the Judiciary, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Goodlatte: Thank you for your letter of even 
     date herewith regarding

[[Page H5448]]

     H.R. 1155, the National Association of Registered Agents and 
     Brokers Reform Act.
       I am most appreciative of your decision not to assert 
     jurisdiction over H.R. 1155 so that it may be considered 
     under suspension of the Rules this week on the House floor. I 
     acknowledge that although you are waiving formal 
     consideration of the bill, the Committee on the Judiciary is 
     in no way waiving its Rule X jurisdiction over any subject 
     matter contained in the bill. In addition, if a conference is 
     necessary on this legislation, I will support any request 
     that your committee be represented therein.
       Finally, I shall be pleased to include your letter and this 
     letter in the Congressional Record during floor consideration 
     of H.R. 1155.
           Sincerely,
                                                   Jeb Hensarling,
                                                         Chairman.

  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I yield myself such time as 
I may consume.
  First of all, Mr. Speaker, I want to just say I join many people 
across this Nation and around the world who are prayerful and who are 
hopeful that this breakthrough--this window of opportunity that we have 
dealing with the Syrian situation--works.
  Now, Mr. Speaker, I can't tell you what a great joy this is for me. I 
have worked on this bill for the past 6 years. We have been dealing 
with many areas to fix our financial system to make it work. We have a 
very complex and complicated financial system. There is no industry 
that has the challenges that are being faced today as the insurance 
industry.

                              {time}  1230

  And the economy, its demands are rapidly changing because of advances 
in technology, mobility, the narrowing and making the world much 
smaller.
  Essentially, what we have here is a long overdue fix to help these 
small business owners, because that's what our insurance agents are. 
H.R. 1155, the National Association of Registered Agents and Brokers 
Reform Act, or what we affectionately call NARAB, as my distinguished 
colleague from Texas (Mr. Neugebauer) has just stated, is very dear to 
us.
  Many of us in the Financial Services Committee have spent years 
toiling on this issue. So have many in the Senate. As my colleague, Mr. 
Neugebauer has said, we passed one House in 1999, but look what has 
happened. We've had terrorist strikes. We've had all kinds of things 
that have happened. We've had an economy almost on the verge of 
depression. Standing there in the middle of this storm dealing with the 
wants and the needs of the American people in all the areas--property 
damage, health, car insurance, you name it--has been our agents.
  I want to just briefly take you through exactly what we are proposing 
here. H.R. 1155, first of all, creates a streamlined agent and broker 
licensing system. That's very important. That strengthens the 
competitive insurance market while maintaining those ever important 
consumer protection items. It strengthens the business, it strengthens 
the competitive insurance market--it doesn't weaken it--and at the same 
time strengthens and protects our consumers.
  NARAB will allow agents and brokers to more efficiently operate on a 
multistate basis. Now, that's so important. Business is no longer 
conducted around the corner or down the street or just in the next 
town; it is all over the country. And our insurance agents and brokers 
need the flexibility and the smoothness in our system to be able to 
negotiate in the best interest of not just the insurance industry but, 
most importantly, for the benefit of consumers who move from State to 
State to city to city.
  Next, NARAB would allow our agents and brokers to also address the 
increasing concern and greater importance of our technological and 
mobile-connected world. As we know, we are all connected.
  Next, our NARAB Reform Act will be a one-stop licensing compliance 
mechanism for insurance agents and brokers operating out of their home 
States. Each will have a home State. But NARAB will work as a one-place 
clearinghouse to satisfy that, while at the same time preserving the 
longstanding authority of States to supervise and discipline the 
insurance producers.
  Nothing is being taken from State control in this bill. As a matter 
of fact, it strengthens State controls. That is why all of the State 
insurance commissioners support this legislation.
  Through a nonprofit board for insurance agents and brokers to obtain 
approval to operate on a multistate basis, the NARAB Reform Act deals 
only with marketplace entry and will not impact the day-to-day State 
regulation of insurance agencies. We sat down, we brought the State 
insurance agencies in and the commissioners to work with us so that we 
could have a joint understanding on this bill.
  NARAB will be governed by a board dominated by State regulators--
again, dominated by State regulators--and would establish standards for 
the membership that exceed the existing requirements of any State. 
Again, exceeds the requirements of any State. A prospective NARAB 
member will be required to be fully licensed in his or her home State 
and satisfy rigorous membership criteria. An approved NARAB member 
could utilize the association to obtain the regulatory approval 
necessary to operate in any other selected jurisdiction.
  This is a crucial piece of legislation, an excellently drafted piece 
of legislation. For those of us who are concerned about small 
government, it is very important to note that NARAB would not--would 
not--be a part of a report to any Federal agency and would not have any 
kind of Federal regulatory power. We are out of the business. Once we 
pass this bill, it is in the hands, where it belongs, of the State and 
local level.
  The legislation is supported by nearly the entire insurance industry, 
including all the major agents and brokers associations, as well as the 
major insurers associations. Additionally, the National Association of 
Insurance Commissioners, NAIC, which represents all State insurance 
commissioners, has formally--formally--endorsed this version of the 
legislation.
  The State-based reform benefits our consumers first, and that is at 
the head of the line of our concerns. It benefits our consumers through 
increased competition among agents and brokers and leads to greater 
consumer choice at lower prices. That is what the consumer is looking 
for.
  This bill also will assist in an important sector of our economy--
small businesses--by streamlining nonresident licensing regulation. The 
House has twice recognized the need for this commonsense reform by 
passing nearly this identical legislation, as I said before, subsequent 
to suspension rules.
  Once again, we ask for your support.
  With that, Mr. Speaker, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Speaker, I yield 2 minutes to the gentleman from 
New Jersey (Mr. Garrett), the chairman of our Capital Markets 
Subcommittee.
  Mr. GARRETT. Mr. Speaker, I thank the gentleman from Texas for his 
leadership on this legislation today.
  I rise in support of H.R. 1155, which is the National Association of 
Registered Agents and Brokers Reform Act.
  This bill is, as we like to say, a commonsense step that will create 
a clearinghouse, if you will, for insurance agents and brokers alike to 
obtain approval to operate on a multistate basis.
  Under current law, an insurance agent who has clients in more than 
one State has to obtain licenses in each and every one of those States. 
The regulatory process, as you can imagine, varies from State to 
State. Obtaining and maintaining a license is both time-consuming and 
very expensive.

  Having to complete this process over and over and over again 
basically compounds the difficulty and often proves daunting, quite 
honestly, to smaller agents who are just trying to do their job and to 
serve their clients and meet their needs.
  What we have here is the NARAB clearinghouse. This would allow the 
agents to complete the process only twice--once in their home State and 
then once again for NARAB. Then they would be eligible to sell 
basically in all the States.
  Here is an important point: NARAB is supported by all the 
stakeholders, including, as the gentleman just said, by the State 
insurance regulators. It does so because it brings much-needed 
efficiency to a multistate licensing process.
  While doing this, the legislation would also preserve--and to me this 
is very important--State-based insurance

[[Page H5449]]

regulation and also consumer protections.
  Finally, this legislation would not--as was just pointed out--create 
a brand new Federal insurance regulator in its place. By law, NARAB 
would not be a regulator or a part of any Federal agency. It would have 
no regulatory authority.
  With 56--56--different approaches to life insurance, this bipartisan 
bill would reduce needless red tape and complexity that is out there, 
and it would help insurance agents better serve their clients.
  I urge this House to adopt this legislation today.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I reserve the balance of my 
time.
  Mr. NEUGEBAUER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Tennessee (Mr. Fincher).
  Mr. FINCHER. Mr. Speaker, I rise today as a cosponsor in support of 
H.R. 1155, the National Association of Registered Agents and Brokers 
Reform Act of 2013.
  As mentioned, this important legislation strikes the appropriate 
balance between easing the licensing requirements for insurance agents 
and preserving State authority to supervise and discipline insurance 
producers for their actions.
  Through this legislation, I hope all consumers, especially the 
citizens of Tennessee, will benefit from a more competitive insurance 
market. NARAB is supported by all insurance industry stakeholders, 
including State insurance regulators, regional and national insurance 
companies, and trade associations.
  H.R. 1155 is seen as the most effective, efficient way to enable 
insurance agents and brokers to be licensed on a multistate basis while 
retaining State regulatory authority.
  While today's legislation speaks to insurance agents and brokers, 
similar issues exist for claims adjusters. To address these issues when 
consumers present a claim, I have introduced the CLAIM Act, H.R. 2156, 
to streamline the licensing requirements for insurance adjusters 
operating outside their home States.
  My bill would preserve State authority to supervise and discipline 
adjusters for their actions, while streamlining State licensing 
regulations.
  As we join together today to support H.R. 1155, I call upon my 
colleagues to similarly support and enact the CLAIM Act to ensure 
consumers receive the same excellent service when they need their 
insurance.
  I thank the gentleman from Texas (Mr. Neugebauer) for his hard work 
on this very well-thought-out legislation. I hope it will help the 
citizens of this country receive excellent insurance products and 
services.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I reserve the balance of my 
time.
  Mr. NEUGEBAUER. Mr. Speaker, I yield 1 minute to the gentleman from 
Florida (Mr. Radel).
  Mr. RADEL. Mr. Speaker, I rise in support of this bill introduced by 
my colleague Representative Neugebauer.
  This bill reduces costs for homeowners and renters not only in my 
home State of Florida, but for everyone throughout the entire country.
  Today, insurance brokers and agents face hurdles when they try to 
work across State lines. What this bill does is make it easier and less 
expensive for them to get licensed in multiple States. The best part 
about this is ultimately it saves you, the consumer, money.
  This legislation streamlines the Federal role in real estate 
licensing while allowing States to continue setting standards for the 
work that best fits their States because, after all, we know what's 
best for our States and our communities.
  Lowering costs for insurance agents and brokers means more options 
and lower prices for consumers. I am glad to support this bipartisan 
legislation.
  I encourage all of my colleagues to vote for the NARAB Reform Act.
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I reserve the balance of my 
time.
  Mr. NEUGEBAUER. Mr. Speaker, I reserve the balance of my time.
  Mr. DAVID SCOTT of Georgia. If the gentleman has no more speakers, I 
will close and then yield back the balance of my time.
  I just want to say what a distinguished pleasure it has been to work 
with the gentleman from Texas, my good friend on both the Financial 
Services Committee and the Ag Committee. We do a lot of great work 
together. It is a great pleasure.
  I commend this bill to the full House of Representatives and hope we 
have a unanimous vote.
  Mr. Speaker, I yield back the balance of my time.

                              {time}  1245

  Mr. NEUGEBAUER. I yield myself the balance of my time.
  I also want to thank the gentleman from Georgia. He has worked 
tirelessly on this issue.
  Mr. Speaker, what I think is nice about this issue is that it's 
bipartisan. It's a good piece of legislation in that it doesn't expand 
government, and it doesn't cost the taxpayers any money. Ultimately, I 
think it's going to bring better choices for consumers and, I hope, for 
our small business people across the country. For example, in my 
congressional district, it is closer to three or four other States than 
it is to some of the cities that are within my State, for example, from 
Walipp to within a hundred miles of Colorado and within 100 miles of 
Oklahoma and Colorado and these other States. Basically, we have a lot 
of insurance agencies and agents who now will have the ability to do 
business in multiple States in a less cumbersome way, so I encourage 
all of my colleagues to support this bill.
  With that, Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Neugebauer) that the House suspend the rules 
and pass the bill, H.R. 1155, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. NEUGEBAUER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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