[Congressional Record Volume 160, Number 18 (Thursday, January 30, 2014)]
[Senate]
[Pages S619-S627]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT OF 2014--Continued

  Mr. REID. I ask unanimous consent that we resume consideration of S. 
1926.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Under the previous order, there will be 2 minutes of debate equally 
divided prior to a vote on passage of S. 1926.
  Who yields time?
  The Senator from Georgia.
  Mr. ISAKSON. Madam President, I will be brief in our 1 minute just to 
express my thanks to Senator Menendez from New Jersey, as well as 
Senator Landrieu and Senator Vitter and all of those who came together 
to put together a great bill for the people of the United States of 
America for Federal flood insurance. It was a team effort, a bipartisan 
effort, an equally divided effort between Republicans and Democrats.
  I urge everybody to vote for the bill, and I again thank the Senator 
from New Jersey for his cooperation.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. MENENDEZ. Madam President, I urge all of our colleagues to cast a 
``yes'' vote on the final passage of the homeowner flood insurance act.
  I think this has been an excellent week for the Senate. We were able 
to break through what sometimes is partisan gridlock and far too often 
pervades this auspicious Chamber. We have had an honest and open debate 
on this issue that is critical to the American people. We have had a 
respectable debate on good-faith amendments that were germane to the 
bill and lived up to the ideals of the Senate, and now we are poised to 
pass a critical piece of legislation which I believe enjoys 
overwhelming bipartisan support which will provide real relief to 
millions of American families.
  I thank all of our cosponsors and their staffs, including a very 
large list of Republican colleagues who support the bill. I 
particularly thank my lead Republican cosponsor, Senator Isakson, for 
his efforts and the partnership on this issue and many others. I have 
had the pleasure to work with Senator Isakson on a number of issues and 
have come to respect his honesty and his desire to come together and 
get things done, regardless of the issue. I think he is one of the most 
well-respected Members of the Senate. Together, working with our 
colleagues, I think we are poised to give some real relief to families 
and to send a strong message to the House and hope they will follow 
suit.
  The PRESIDING OFFICER. All time has expired.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  Mr. MENENDEZ. Madam President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second? There appears to 
be a sufficient second.
  The bill having been read the third time, the question is, Shall the 
bill, as amended, pass?
  The clerk will call the roll.
  The assistant legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from Ohio (Mr. Brown) is 
necessarily absent.
  The PRESIDING OFFICER (Ms. Heitkamp). Are there any other Senators in 
the Chamber desiring to vote?
  The result was announced--yeas 67, nays 32, as follows:

                      [Rollcall Vote No. 19 Leg.]

                                YEAS--67

     Baldwin
     Baucus
     Begich
     Bennet
     Blumenthal
     Blunt
     Booker
     Boxer
     Burr
     Cantwell
     Cardin
     Casey
     Chambliss
     Cochran
     Collins
     Coons
     Donnelly
     Durbin
     Feinstein
     Franken
     Gillibrand
     Graham
     Hagan
     Harkin
     Heinrich
     Heitkamp
     Hirono
     Hoeven
     Isakson
     Johanns
     Johnson (SD)
     Kaine
     King
     Klobuchar
     Landrieu
     Leahy
     Levin
     Manchin
     Markey
     McCaskill
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murphy
     Murray
     Nelson
     Pryor
     Reed
     Reid
     Rockefeller
     Rubio
     Sanders
     Schatz
     Schumer
     Scott
     Shaheen
     Stabenow
     Tester
     Udall (CO)
     Udall (NM)
     Vitter
     Warner
     Warren
     Whitehouse
     Wicker
     Wyden

                                NAYS--32

     Alexander
     Ayotte
     Barrasso
     Boozman
     Carper
     Coats
     Coburn
     Corker
     Cornyn
     Crapo
     Cruz
     Enzi
     Fischer
     Flake
     Grassley
     Hatch
     Heller
     Inhofe
     Johnson (WI)
     Kirk
     Lee
     McCain
     McConnell
     Moran
     Paul
     Portman
     Risch
     Roberts
     Sessions
     Shelby
     Thune
     Toomey

                             NOT VOTING--1

       
     Brown
       
  The bill (S. 1926), as amended, was passed, as follows:

                                S. 1926

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

[[Page S620]]

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

          TITLE I--HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT

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

    TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS

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

          TITLE I--HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT

     SEC. 101. SHORT TITLE.

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

     SEC. 102. DEFINITIONS.

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

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

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

[[Page S621]]

     Law 112-141; 126 Stat. 919) is implemented, the Administrator 
     shall make publicly available the rate tables and 
     underwriting guidelines that provide the basis for the 
     change.
       (2) Change in rates under this act.--Not later than the 
     date that is 6 months before the date on which any change in 
     risk premium rates for flood insurance coverage under the 
     National Flood Insurance Program resulting from this Act or 
     any amendment made by this Act is implemented, the 
     Administrator shall make publicly available the rate tables 
     and underwriting guidelines that provide the basis for the 
     change.
       (3) Report on policy and claims data.--
       (A) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report on the feasibility of--
       (i) releasing property-level policy and claims data for 
     flood insurance coverage under the National Flood Insurance 
     Program; and
       (ii) establishing guidelines for releasing property-level 
     policy and claims data for flood insurance coverage under the 
     National Flood Insurance Program in accordance with section 
     552a of title 5, United States Code (commonly known as the 
     ``Privacy Act of 1974'').
       (B) Contents.--The report submitted under subparagraph (A) 
     shall include--
       (i) an analysis and assessment of how releasing property-
     level policy and claims data for flood insurance coverage 
     under the National Flood Insurance Program will aid policy 
     holders and insurers to understand how the Administration 
     determines actuarial premium rates and assesses flood risks; 
     and
       (ii) recommendations for protecting personal information in 
     accordance with section 552a of title 5, United States Code 
     (commonly known as the ``Privacy Act of 1974'').

     SEC. 104. AFFORDABILITY STUDY AND REPORT.

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

     SEC. 105. AFFORDABILITY STUDY FUNDING.

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

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

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

     SEC. 107. FLOOD PROTECTION SYSTEMS.

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

     SEC. 108. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS.

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

     SEC. 109. DESIGNATION OF FLOOD INSURANCE ADVOCATE.

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

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

       (a) In General.--Section 102(d)(1) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
       (1) in subparagraph (A), in the second sentence, by 
     striking ``subparagraph (C)'' and inserting ``subparagraph 
     (B)''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by redesignating subclauses (I) and 
     (II) as items (aa) and (bb), respectively, and adjusting the 
     margins accordingly;
       (B) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and adjusting the margins 
     accordingly;
       (C) in the matter preceding subclause (I), as redesignated 
     by subparagraph (B), by striking ``(A) or (B), if--'' and 
     inserting the following: ``(A)--
       ``(i) if--'';
       (D) by striking the period at the end and inserting ``; 
     or''; and
       (E) by adding at the end the following
       ``(ii) in the case of a loan that--

       ``(I) is in a junior or subordinate position to a senior 
     lien secured by the same residential improved real estate or 
     mobile home for which flood insurance is being provided at 
     the time of the origination of the loan;
       ``(II) is secured by residential improved real estate or a 
     mobile home that is part of a condominium, cooperative, or 
     other project development, if the residential improved real 
     estate or mobile home is covered by a flood insurance policy 
     that--

       ``(aa) meets the requirements that the regulated lending 
     institution is required to enforce under subsection (b)(1);
       ``(bb) is provided by the condominium association, 
     cooperative, homeowners association, or other applicable 
     group; and
       ``(cc) the premium for which is paid by the condominium 
     association, cooperative, homeowners association, or other 
     applicable group as a common expense;

       ``(III) is secured by residential improved real estate or a 
     mobile home that is used as collateral for a business 
     purpose;
       ``(IV) is a home equity line of credit;
       ``(V) is a nonperforming loan; or
       ``(VI) has a term of not longer than 12 months.''.

       (b) Applicability.--
       (1) In general.--
       (A) Required application.--The amendments to section 
     102(d)(1) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-
     Waters Flood Insurance Reform Act of 2012 (Public Law 112-
     141; 126 Stat. 920) and by subsection (a) of this section 
     shall apply to any loan that is originated, refinanced, 
     increased, extended, or renewed on or after January 1, 2016.
       (B) Optional application.--
       (i) Definitions.--In this subparagraph--

[[Page S622]]

       (I) the terms ``Federal entity for lending regulation'', 
     ``improved real estate'', ``regulated lending institution'', 
     and ``servicer'' have the meanings given the terms in section 
     3 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
     4003);
       (II) the term ``outstanding loan'' means a loan that--

       (aa) is outstanding as of January 1, 2016;
       (bb) is not subject to the requirement to escrow premiums 
     and fees for flood insurance under section 102(d)(1) of the 
     Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) 
     as in effect on July 5, 2012; and
       (cc) would, if the loan had been originated, refinanced, 
     increased, extended, or renewed on or after January 1, 2016, 
     be subject to the requirements under section 102(d)(1)(A) of 
     the Flood Disaster Protection Act of 1973, as amended; and

       (III) the term ``section 102(d)(1)(A) of the Flood Disaster 
     Protection Act of 1973, as amended'' means section 
     102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)(A)), as amended by--

       (aa) section 100209(a) of the Biggert-Waters Flood 
     Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat. 
     920); and
       (bb) subsection (a) of this section.
       (ii) Option to escrow flood insurance payments.--Each 
     Federal entity for lending regulation (after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council) shall, by regulation, direct that each 
     regulated lending institution or servicer of an outstanding 
     loan shall offer and make available to a borrower the option 
     to have the borrower's payment of premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968 (42 
     U.S.C. 4001 et seq.), including the escrow of such payments, 
     be treated in the same manner provided under section 
     102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as 
     amended.
       (2) Repeal of 2-year delay on applicability.--Subsection 
     (b) of section 100209 of the Biggert-Waters Flood Insurance 
     Reform Act of 2012 (Public Law 112-141; 126 Stat. 920) is 
     repealed.
       (3) Rule of construction.--Nothing in this section or the 
     amendments made by this section shall be construed to 
     supersede, during the period beginning on July 6, 2012 and 
     ending on December 31, 2015, the requirements under section 
     102(d)(1) of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a(d)(1)), as in effect on July 5, 2012.

     SEC. 111. MONTHLY INSTALLMENT PAYMENTS FOR PREMIUMS.

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

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

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

     SEC. 113. HOME IMPROVEMENT FAIRNESS.

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

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

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

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

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

     SEC. 116. FLOOD MITIGATION METHODS FOR URBAN BUILDINGS.

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

    TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS

     SEC. 201. SHORT TITLE.

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

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

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

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

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

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

     ``SEC. 322. PURPOSE.

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

[[Page S623]]

     ``SEC. 323. MEMBERSHIP.

       ``(a) Eligibility.--
       ``(1) In general.--Any insurance producer licensed in its 
     home State shall, subject to paragraphs (2) and (4), be 
     eligible to become a member of the Association.
       ``(2) Ineligibility for suspension or revocation of 
     license.--Subject to paragraph (3), an insurance producer is 
     not eligible to become a member of the Association if a State 
     insurance regulator has suspended or revoked the insurance 
     license of the insurance producer in that State.
       ``(3) Resumption of eligibility.--Paragraph (2) shall cease 
     to apply to any insurance producer if--
       ``(A) the State insurance regulator reissues or renews the 
     license of the insurance producer in the State in which the 
     license was suspended or revoked, or otherwise terminates or 
     vacates the suspension or revocation; or
       ``(B) the suspension or revocation expires or is 
     subsequently overturned by a court of competent jurisdiction.
       ``(4) Criminal history record check required.--
       ``(A) In general.--An insurance producer who is an 
     individual shall not be eligible to become a member of the 
     Association unless the insurance producer has undergone a 
     criminal history record check that complies with regulations 
     prescribed by the Attorney General of the United States under 
     subparagraph (K).
       ``(B) Criminal history record check requested by home 
     state.--An insurance producer who is licensed in a State and 
     who has undergone a criminal history record check during the 
     2-year period preceding the date of submission of an 
     application to become a member of the Association, in 
     compliance with a requirement to undergo such criminal 
     history record check as a condition for such licensure in the 
     State, shall be deemed to have undergone a criminal history 
     record check for purposes of subparagraph (A).
       ``(C) Criminal history record check requested by 
     association.--
       ``(i) In general.--The Association shall, upon request by 
     an insurance producer licensed in a State, submit 
     identification information obtained from the insurance 
     producer, and a request for a criminal history record check 
     of the insurance producer, to the Federal Bureau of 
     Investigation.
       ``(ii) Procedures.--The board of directors of the 
     Association (referred to in this subtitle as the Board) shall 
     prescribe procedures for obtaining and utilizing 
     identification information and criminal history record 
     information, including the establishment of reasonable fees 
     required to perform a criminal history record check and 
     appropriate safeguards for maintaining confidentiality and 
     security of the information.
       ``(D) Form of request.--A submission under subparagraph 
     (C)(i) shall include such identification information as is 
     required by the Attorney General concerning the person about 
     whom the criminal history record check is requested, and a 
     statement signed by the person authorizing the Attorney 
     General to provide the information to the Association and for 
     the Association to receive the information.
       ``(E) Provision of information by attorney general.--Upon 
     receiving a submission under subparagraph (C)(i) from the 
     Association, the Attorney General shall search all criminal 
     history records of the Federal Bureau of Investigation, 
     including records of the Criminal Justice Information 
     Services Division of the Federal Bureau of Investigation, 
     that the Attorney General determines appropriate for criminal 
     history records corresponding to the identification 
     information provided under subparagraph (D) and provide all 
     criminal history record information included in the request 
     to the Association.
       ``(F) Limitation on permissible uses of information.--Any 
     information provided to the Association under subparagraph 
     (E) may only--
       ``(i) be used for purposes of determining compliance with 
     membership criteria established by the Association;
       ``(ii) be disclosed to State insurance regulators, or 
     Federal or State law enforcement agencies, in conformance 
     with applicable law; or
       ``(iii) be disclosed, upon request, to the insurance 
     producer to whom the criminal history record information 
     relates.
       ``(G) Penalty for improper use or disclosure.--Whoever 
     knowingly uses any information provided under subparagraph 
     (E) for a purpose not authorized in subparagraph (F), or 
     discloses any such information to anyone not authorized to 
     receive it, shall be fined under title 18, United States 
     Code, imprisoned for not more than 2 years, or both.
       ``(H) Reliance on information.--Neither the Association nor 
     any of its Board members, officers, or employees shall be 
     liable in any action for using information provided under 
     subparagraph (E) as permitted under subparagraph (F) in good 
     faith and in reasonable reliance on its accuracy.
       ``(I) Fees.--The Attorney General may charge a reasonable 
     fee for conducting the search and providing the information 
     under subparagraph (E), and any such fee shall be collected 
     and remitted by the Association to the Attorney General.
       ``(J) Rule of construction.--Nothing in this paragraph 
     shall be construed as--
       ``(i) requiring a State insurance regulator to perform 
     criminal history record checks under this section; or
       ``(ii) limiting any other authority that allows access to 
     criminal history records.
       ``(K) Regulations.--The Attorney General shall prescribe 
     regulations to carry out this paragraph, which shall 
     include--
       ``(i) appropriate protections for ensuring the 
     confidentiality of information provided under subparagraph 
     (E); and
       ``(ii) procedures providing a reasonable opportunity for an 
     insurance producer to contest the accuracy of information 
     regarding the insurance producer provided under subparagraph 
     (E).
       ``(L) Ineligibility for membership.--
       ``(i) In general.--The Association may, under reasonably 
     consistently applied standards, deny membership to an 
     insurance producer on the basis of criminal history record 
     information provided under subparagraph (E), or where the 
     insurance producer has been subject to disciplinary action, 
     as described in paragraph (2).
       ``(ii) Rights of applicants denied membership.--The 
     Association shall notify any insurance producer who is denied 
     membership on the basis of criminal history record 
     information provided under subparagraph (E) of the right of 
     the insurance producer to--

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

       ``(M) Definition.--For purposes of this paragraph, the term 
     criminal history record check means a national background 
     check of criminal history records of the Federal Bureau of 
     Investigation.
       ``(b) Authority To Establish Membership Criteria.--The 
     Association may establish membership criteria that bear a 
     reasonable relationship to the purposes for which the 
     Association was established.
       ``(c) Establishment of Classes and Categories of 
     Membership.--
       ``(1) Classes of membership.--The Association may establish 
     separate classes of membership, with separate criteria, if 
     the Association reasonably determines that performance of 
     different duties requires different levels of education, 
     training, experience, or other qualifications.
       ``(2) Business entities.--The Association shall establish a 
     class of membership and membership criteria for business 
     entities. A business entity that applies for membership shall 
     be required to designate an individual Association member 
     responsible for the compliance of the business entity with 
     Association standards and the insurance laws, rules, and 
     regulations of any State in which the business entity seeks 
     to do business on the basis of Association membership.
       ``(3) Categories.--
       ``(A) Separate categories for insurance producers 
     permitted.--The Association may establish separate categories 
     of membership for insurance producers and for other persons 
     or entities within each class, based on the types of 
     licensing categories that exist under State laws.
       ``(B) Separate treatment for depository institutions 
     prohibited.--No special categories of membership, and no 
     distinct membership criteria, shall be established for 
     members that are depository institutions or for employees, 
     agents, or affiliates of depository institutions.
       ``(d) Membership Criteria.--
       ``(1) In general.--The Association may establish criteria 
     for membership which shall include standards for personal 
     qualifications, education, training, and experience. The 
     Association shall not establish criteria that unfairly limit 
     the ability of a small insurance producer to become a member 
     of the Association, including imposing discriminatory 
     membership fees.
       ``(2) Qualifications.--In establishing criteria under 
     paragraph (1), the Association shall not adopt any 
     qualification less protective to the public than that 
     contained in the National Association of Insurance 
     Commissioners (referred to in this subtitle as the NAIC) 
     Producer Licensing Model Act in effect as of the date of 
     enactment of the National Association of Registered Agents 
     and Brokers Reform Act of 2014, and shall consider the 
     highest levels of insurance producer qualifications 
     established under the licensing laws of the States.
       ``(3) Assistance from states.--
       ``(A) In general.--The Association may request a State to 
     provide assistance in investigating and evaluating the 
     eligibility of a prospective member for membership in the 
     Association.
       ``(B) Authorization of information sharing.--A submission 
     under subsection (a)(4)(C)(i) made by an insurance producer 
     licensed in a State shall include a statement signed by the 
     person about whom the assistance is requested authorizing--
       ``(i) the State to share information with the Association; 
     and
       ``(ii) the Association to receive the information.
       ``(C) Rule of construction.--Subparagraph (A) shall not be 
     construed as requiring or authorizing any State to adopt new 
     or additional requirements concerning the licensing or 
     evaluation of insurance producers.
       ``(4) Denial of membership.--The Association may, based on 
     reasonably consistently applied standards, deny membership to 
     any State-licensed insurance producer for failure to meet the 
     membership criteria established by the Association.
       ``(e) Effect of Membership.--
       ``(1) Authority of association members.--Membership in the 
     Association shall--

[[Page S624]]

       ``(A) authorize an insurance producer to sell, solicit, or 
     negotiate insurance in any State for which the member pays 
     the licensing fee set by the State for any line or lines of 
     insurance specified in the home State license of the 
     insurance producer, and exercise all such incidental powers 
     as shall be necessary to carry out such activities, including 
     claims adjustments and settlement to the extent permissible 
     under the laws of the State, risk management, employee 
     benefits advice, retirement planning, and any other 
     insurance-related consulting activities;
       ``(B) be the equivalent of a nonresident insurance producer 
     license for purposes of authorizing the insurance producer to 
     engage in the activities described in subparagraph (A) in any 
     State where the member pays the licensing fee; and
       ``(C) be the equivalent of a nonresident insurance producer 
     license for the purpose of subjecting an insurance producer 
     to all laws, regulations, provisions or other action of any 
     State concerning revocation, suspension, or other enforcement 
     action related to the ability of a member to engage in any 
     activity within the scope of authority granted under this 
     subsection and to all State laws, regulations, provisions, 
     and actions preserved under paragraph (5).
       ``(2) Violent crime control and law enforcement act of 
     1994.--Nothing in this subtitle shall be construed to alter, 
     modify, or supercede any requirement established by section 
     1033 of title 18, United States Code.
       ``(3) Agent for remitting fees.--The Association shall act 
     as an agent for any member for purposes of remitting 
     licensing fees to any State pursuant to paragraph (1).
       ``(4) Notification of action.--
       ``(A) In general.--The Association shall notify the States 
     (including State insurance regulators) and the NAIC when an 
     insurance producer has satisfied the membership criteria of 
     this section. The States (including State insurance 
     regulators) shall have 10 business days after the date of the 
     notification in order to provide the Association with 
     evidence that the insurance producer does not satisfy the 
     criteria for membership in the Association.
       ``(B) Ongoing disclosures required.--On an ongoing basis, 
     the Association shall disclose to the States (including State 
     insurance regulators) and the NAIC a list of the States in 
     which each member is authorized to operate. The Association 
     shall immediately notify the States (including State 
     insurance regulators) and the NAIC when a member is newly 
     authorized to operate in one or more States, or is no longer 
     authorized to operate in one or more States on the basis of 
     Association membership.
       ``(5) Preservation of consumer protection and market 
     conduct regulation.--
       ``(A) In general.--No provision of this section shall be 
     construed as altering or affecting the applicability or 
     continuing effectiveness of any law, regulation, provision, 
     or other action of any State, including those described in 
     subparagraph (B), to the extent that the State law, 
     regulation, provision, or other action is not inconsistent 
     with the provisions of this subtitle related to market entry 
     for nonresident insurance producers, and then only to the 
     extent of the inconsistency.
       ``(B) Preserved regulations.--The laws, regulations, 
     provisions, or other actions of any State referred to in 
     subparagraph (A) include laws, regulations, provisions, or 
     other actions that--
       ``(i) regulate market conduct, insurance producer conduct, 
     or unfair trade practices;
       ``(ii) establish consumer protections; or
       ``(iii) require insurance producers to be appointed by a 
     licensed or authorized insurer.
       ``(f) Biennial Renewal.--Membership in the Association 
     shall be renewed on a biennial basis.
       ``(g) Continuing Education.--
       ``(1) In general.--The Association shall establish, as a 
     condition of membership, continuing education requirements 
     which shall be comparable to the continuing education 
     requirements under the licensing laws of a majority of the 
     States.
       ``(2) State continuing education requirements.--A member 
     may not be required to satisfy continuing education 
     requirements imposed under the laws, regulations, provisions, 
     or actions of any State other than the home State of the 
     member.
       ``(3) Reciprocity.--The Association shall not require a 
     member to satisfy continuing education requirements that are 
     equivalent to any continuing education requirements of the 
     home State of the member that have been satisfied by the 
     member during the applicable licensing period.
       ``(4) Limitation on the association.--The Association shall 
     not directly or indirectly offer any continuing education 
     courses for insurance producers.
       ``(h) Probation, Suspension and Revocation.--
       ``(1) Disciplinary action.--The Association may place an 
     insurance producer that is a member of the Association on 
     probation or suspend or revoke the membership of the 
     insurance producer in the Association, or assess monetary 
     fines or penalties, as the Association determines to be 
     appropriate, if--
       ``(A) the insurance producer fails to meet the applicable 
     membership criteria or other standards established by the 
     Association;
       ``(B) the insurance producer has been subject to 
     disciplinary action pursuant to a final adjudicatory 
     proceeding under the jurisdiction of a State insurance 
     regulator;
       ``(C) an insurance license held by the insurance producer 
     has been suspended or revoked by a State insurance regulator; 
     or
       ``(D) the insurance producer has been convicted of a crime 
     that would have resulted in the denial of membership pursuant 
     to subsection (a)(4)(L)(i) at the time of application, and 
     the Association has received a copy of the final disposition 
     from a court of competent jurisdiction.
       ``(2) Violations of association standards.--The Association 
     shall have the power to investigate alleged violations of 
     Association standards.
       ``(3) Reporting.--The Association shall immediately notify 
     the States (including State insurance regulators) and the 
     NAIC when the membership of an insurance producer has been 
     placed on probation or has been suspended, revoked, or 
     otherwise terminated, or when the Association has assessed 
     monetary fines or penalties.
       ``(i) Consumer Complaints.--
       ``(1) In general.--The Association shall--
       ``(A) refer any complaint against a member of the 
     Association from a consumer relating to alleged misconduct or 
     violations of State insurance laws to the State insurance 
     regulator where the consumer resides and, when appropriate, 
     to any additional State insurance regulator, as determined by 
     standards adopted by the Association; and
       ``(B) make any related records and information available to 
     each State insurance regulator to whom the complaint is 
     forwarded.
       ``(2) Telephone and other access.--The Association shall 
     maintain a toll-free number for purposes of this subsection 
     and, as practicable, other alternative means of communication 
     with consumers, such as an Internet webpage.
       ``(3) Final disposition of investigation.--State insurance 
     regulators shall provide the Association with information 
     regarding the final disposition of a complaint referred 
     pursuant to paragraph (1)(A), but nothing shall be construed 
     to compel a State to release confidential investigation 
     reports or other information protected by State law to the 
     Association.
       ``(j) Information Sharing.--The Association may--
       ``(1) share documents, materials, or other information, 
     including confidential and privileged documents, with a 
     State, Federal, or international governmental entity or with 
     the NAIC or other appropriate entity referenced in paragraphs 
     (3) and (4), provided that the recipient has the authority 
     and agrees to maintain the confidentiality or privileged 
     status of the document, material, or other information;
       ``(2) limit the sharing of information as required under 
     this subtitle with the NAIC or any other non-governmental 
     entity, in circumstances under which the Association 
     determines that the sharing of such information is 
     unnecessary to further the purposes of this subtitle;
       ``(3) establish a central clearinghouse, or utilize the 
     NAIC or another appropriate entity, as determined by the 
     Association, as a central clearinghouse, for use by the 
     Association and the States (including State insurance 
     regulators), through which members of the Association may 
     disclose their intent to operate in 1 or more States and pay 
     the licensing fees to the appropriate States; and
       ``(4) establish a database, or utilize the NAIC or another 
     appropriate entity, as determined by the Association, as a 
     database, for use by the Association and the States 
     (including State insurance regulators) for the collection of 
     regulatory information concerning the activities of insurance 
     producers.
       ``(k) Effective Date.--The provisions of this section shall 
     take effect on the later of--
       ``(1) the expiration of the 2-year period beginning on the 
     date of enactment of the National Association of Registered 
     Agents and Brokers Reform Act of 2014; and
       ``(2) the date of incorporation of the Association.

     ``SEC. 324. BOARD OF DIRECTORS.

       ``(a) Establishment.--There is established a board of 
     directors of the Association, which shall have authority to 
     govern and supervise all activities of the Association.
       ``(b) Powers.--The Board shall have such of the powers and 
     authority of the Association as may be specified in the 
     bylaws of the Association.
       ``(c) Composition.--
       ``(1) In general.--The Board shall consist of 13 members 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate, in accordance with the 
     procedures established under Senate Resolution 116 of the 
     112th Congress, of whom--
       ``(A) 8 shall be State insurance commissioners appointed in 
     the manner provided in paragraph (2), 1 of whom shall be 
     designated by the President to serve as the chairperson of 
     the Board until the Board elects one such State insurance 
     commissioner Board member to serve as the chairperson of the 
     Board;
       ``(B) 3 shall have demonstrated expertise and experience 
     with property and casualty insurance producer licensing; and
       ``(C) 2 shall have demonstrated expertise and experience 
     with life or health insurance producer licensing.
       ``(2) State insurance regulator representatives.--
       ``(A) Recommendations.--Before making any appointments 
     pursuant to paragraph (1)(A), the President shall request a 
     list of recommended candidates from the States through the 
     NAIC, which shall not be binding on the President. If the 
     NAIC fails to

[[Page S625]]

     submit a list of recommendations not later than 15 business 
     days after the date of the request, the President may make 
     the requisite appointments without considering the views of 
     the NAIC.
       ``(B) Political affiliation.--Not more than 4 Board members 
     appointed under paragraph (1)(A) shall belong to the same 
     political party.
       ``(C) Former state insurance commissioners.--
       ``(i) In general.--If, after offering each currently 
     serving State insurance commissioner an appointment to the 
     Board, fewer than 8 State insurance commissioners have 
     accepted appointment to the Board, the President may appoint 
     the remaining State insurance commissioner Board members, as 
     required under paragraph (1)(A), of the appropriate political 
     party as required under subparagraph (B), from among 
     individuals who are former State insurance commissioners.
       ``(ii) Limitation.--A former State insurance commissioner 
     appointed as described in clause (i) may not be employed by 
     or have any present direct or indirect financial interest in 
     any insurer, insurance producer, or other entity in the 
     insurance industry, other than direct or indirect ownership 
     of, or beneficial interest in, an insurance policy or annuity 
     contract written or sold by an insurer.
       ``(D) Service through term.--If a Board member appointed 
     under paragraph (1)(A) ceases to be a State insurance 
     commissioner during the term of the Board member, the Board 
     member shall cease to be a Board member.
       ``(3) Private sector representatives.--In making any 
     appointment pursuant to subparagraphs (B) and (C) of 
     paragraph (1), the President may seek recommendations for 
     candidates from groups representing the category of 
     individuals described, which shall not be binding on the 
     President.
       ``(4) State insurance commissioner defined.--For purposes 
     of this subsection, the term State insurance commissioner 
     means a person who serves in the position in State 
     government, or on the board, commission, or other body that 
     is the primary insurance regulatory authority for the State.
       ``(d) Terms.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the term of service for each Board member shall be 2 years.
       ``(2) Exceptions.--
       ``(A) 1-year terms.--The term of service shall be 1 year, 
     as designated by the President at the time of the nomination 
     of the subject Board members for--
       ``(i) 4 of the State insurance commissioner Board members 
     initially appointed under paragraph (1)(A), of whom not more 
     than 2 shall belong to the same political party;
       ``(ii) 1 of the Board members initially appointed under 
     paragraph (1)(B); and
       ``(iii) 1 of the Board members initially appointed under 
     paragraph (1)(C).
       ``(B) Expiration of term.--A Board member may continue to 
     serve after the expiration of the term to which the Board 
     member was appointed for the earlier of 2 years or until a 
     successor is appointed.
       ``(C) Mid-term appointments.--A Board member appointed to 
     fill a vacancy occurring before the expiration of the term 
     for which the predecessor of the Board member was appointed 
     shall be appointed only for the remainder of that term.
       ``(3) Successive terms.--Board members may be reappointed 
     to successive terms.
       ``(e) Initial Appointments.--The appointment of initial 
     Board members shall be made no later than 90 days after the 
     date of enactment of the National Association of Registered 
     Agents and Brokers Reform Act of 2014.
       ``(f) Meetings.--
       ``(1) In general.--The Board shall meet--
       ``(A) at the call of the chairperson;
       ``(B) as requested in writing to the chairperson by not 
     fewer than 5 Board members; or
       ``(C) as otherwise provided by the bylaws of the 
     Association.
       ``(2) Quorum required.--A majority of all Board members 
     shall constitute a quorum.
       ``(3) Voting.--Decisions of the Board shall require the 
     approval of a majority of all Board members present at a 
     meeting, a quorum being present.
       ``(4) Initial meeting.--The Board shall hold its first 
     meeting not later than 45 days after the date on which all 
     initial Board members have been appointed.
       ``(g) Restriction on Confidential Information.--Board 
     members appointed pursuant to subparagraphs (B) and (C) of 
     subsection (c)(1) shall not have access to confidential 
     information received by the Association in connection with 
     complaints, investigations, or disciplinary proceedings 
     involving insurance producers.
       ``(h) Ethics and Conflicts of Interest.--The Board shall 
     issue and enforce an ethical conduct code to address 
     permissible and prohibited activities of Board members and 
     Association officers, employees, agents, or consultants. The 
     code shall, at a minimum, include provisions that prohibit 
     any Board member or Association officer, employee, agent or 
     consultant from--
       ``(1) engaging in unethical conduct in the course of 
     performing Association duties;
       ``(2) participating in the making or influencing the making 
     of any Association decision, the outcome of which the Board 
     member, officer, employee, agent, or consultant knows or had 
     reason to know would have a reasonably foreseeable material 
     financial effect, distinguishable from its effect on the 
     public generally, on the person or a member of the immediate 
     family of the person;
       ``(3) accepting any gift from any person or entity other 
     than the Association that is given because of the position 
     held by the person in the Association;
       ``(4) making political contributions to any person or 
     entity on behalf of the Association; and
       ``(5) lobbying or paying a person to lobby on behalf of the 
     Association.
       ``(i) Compensation.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     Board member may receive any compensation from the 
     Association or any other person or entity on account of Board 
     membership.
       ``(2) Travel expenses and per diem.--Board members may be 
     reimbursed only by the Association for travel expenses, 
     including per diem in lieu of subsistence, at rates 
     consistent with rates authorized for employees of Federal 
     agencies under subchapter I of chapter 57 of title 5, United 
     States Code, while away from home or regular places of 
     business in performance of services for the Association.

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

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

     ``SEC. 326. POWERS.

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

[[Page S626]]

     ``SEC. 327. REPORT BY THE ASSOCIATION.

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

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

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

     ``SEC. 329. PRESIDENTIAL OVERSIGHT.

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

     ``SEC. 330. RELATIONSHIP TO STATE LAW.

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

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

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

     ``SEC. 332. RIGHT OF ACTION.

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

     ``SEC. 333. FEDERAL FUNDING PROHIBITED.

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

     ``SEC. 334. DEFINITIONS.

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

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

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

[[Page S627]]

  Mr. COCHRAN. Madam President, I move to reconsider the vote.
  Mr. CARDIN. I move to lay that motion upon the table.
  The motion to lay upon the table was agreed to.

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