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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 26 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                 H. R. 26

   To extend the termination date of the Terrorism Insurance Program 
  established under the Terrorism Risk Insurance Act of 2002, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 2015

  Mr. Neugebauer (for himself and Mr. Gosar) introduced the following 
bill; which was referred to the Committee on Financial Services, and in 
     addition to the Committee on Agriculture, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
   To extend the termination date of the Terrorism Insurance Program 
  established under the Terrorism Risk Insurance Act of 2002, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Terrorism Risk 
Insurance Program Reauthorization Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
           TITLE I--EXTENSION OF TERRORISM INSURANCE PROGRAM

Sec. 101. Extension of Terrorism Insurance Program.
Sec. 102. Federal share.
Sec. 103. Program trigger.
Sec. 104. Recoupment of Federal share of compensation under the 
                            program.
Sec. 105. Certification of acts of terrorism; consultation with 
                            Secretary of Homeland Security.
Sec. 106. Technical amendments.
Sec. 107. Improving the certification process.
Sec. 108. GAO study.
Sec. 109. Membership of Board of Governors of the Federal Reserve 
                            System.
Sec. 110. Advisory Committee on Risk-Sharing Mechanisms.
Sec. 111. Reporting of terrorism insurance data.
Sec. 112. Annual study of small insurer market competitiveness.
 TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM

Sec. 201. Short title.
Sec. 202. Reestablishment of the National Association of Registered 
                            Agents and Brokers.
      TITLE III--BUSINESS RISK MITIGATION AND PRICE STABILIZATION

Sec. 301. Short title.
Sec. 302. Margin requirements.
Sec. 303. Implementation.

           TITLE I--EXTENSION OF TERRORISM INSURANCE PROGRAM

SEC. 101. EXTENSION OF TERRORISM INSURANCE PROGRAM.

    Section 108(a) of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended by striking ``December 31, 2014'' and 
inserting ``December 31, 2020''.

SEC. 102. FEDERAL SHARE.

    Section 103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note) is amended by inserting ``and beginning on 
January 1, 2016, shall decrease by 1 percentage point per calendar year 
until equal to 80 percent'' after ``85 percent''.

SEC. 103. PROGRAM TRIGGER.

    Subparagraph (B) of section 103(e)(1) (15 U.S.C. 6701 note) is 
amended in the matter preceding clause (i)--
            (1) by striking ``a certified act'' and inserting 
        ``certified acts'';
            (2) by striking ``such certified act'' and inserting ``such 
        certified acts''; and
            (3) by striking ``exceed'' and all that follows through 
        clause (ii) and inserting the following: ``exceed--
                            ``(i) $100,000,000, with respect to such 
                        insured losses occurring in calendar year 2015;
                            ``(ii) $120,000,000, with respect to such 
                        insured losses occurring in calendar year 2016;
                            ``(iii) $140,000,000, with respect to such 
                        insured losses occurring in calendar year 2017;
                            ``(iv) $160,000,000, with respect to such 
                        insured losses occurring in calendar year 2018;
                            ``(v) $180,000,000, with respect to such 
                        insured losses occurring in calendar year 2019; 
                        and
                            ``(vi) $200,000,000, with respect to such 
                        insured losses occurring in calendar year 2020 
                        and any calendar year thereafter.''.

SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COMPENSATION UNDER THE 
              PROGRAM.

    Section 103(e) of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended--
            (1) by amending paragraph (6) to read as follows:
            ``(6) Insurance marketplace aggregate retention amount.--
                    ``(A) In general.--For purposes of paragraph (7), 
                the insurance marketplace aggregate retention amount 
                shall be the lesser of--
                            ``(i) $27,500,000,000, as such amount is 
                        revised pursuant to this paragraph; and
                            ``(ii) the aggregate amount, for all 
                        insurers, of insured losses during such 
                        calendar year.
                    ``(B) Revision of insurance marketplace aggregate 
                retention amount.--
                            ``(i) Phase-in.--Beginning in the calendar 
                        year of enactment of the Terrorism Risk 
                        Insurance Program Reauthorization Act of 2015, 
                        the amount set forth under subparagraph (A)(i) 
                        shall increase by $2,000,000,000 per calendar 
                        year until equal to $37,500,000,000.
                            ``(ii) Further revision.--Beginning in the 
                        calendar year that follows the calendar year in 
                        which the amount set forth under subparagraph 
                        (A)(i) is equal to $37,500,000,000, the amount 
                        under subparagraph (A)(i) shall be revised to 
                        be the amount equal to the annual average of 
                        the sum of insurer deductibles for all insurers 
                        participating in the Program for the prior 3 
                        calendar years, as such sum is determined by 
                        the Secretary under subparagraph (C).
                    ``(C) Rulemaking.--Not later than 3 years after the 
                date of enactment of the Terrorism Risk Insurance 
                Program Reauthorization Act of 2015, the Secretary 
                shall--
                            ``(i) issue final rules for determining the 
                        amount of the sum described under subparagraph 
                        (B)(ii); and
                            ``(ii) provide a timeline for public 
                        notification of such determination.''; and
            (2) in paragraph (7)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``for each of the periods referred to 
                        in subparagraphs (A) through (E) of paragraph 
                        (6)''; and
                            (ii) in clause (i), by striking ``for such 
                        period'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) [Reserved.]'';
                    (C) in subparagraph (C)--
                            (i) by striking ``occurring during any of 
                        the periods referred to in any of subparagraphs 
                        (A) through (E) of paragraph (6), terrorism 
                        loss risk-spreading premiums in an amount equal 
                        to 133 percent'' and inserting ``, terrorism 
                        loss risk-spreading premiums in an amount equal 
                        to 140 percent''; and
                            (ii) by inserting ``as calculated under 
                        subparagraph (A)'' after ``mandatory recoupment 
                        amount''; and
                    (D) in subparagraph (E)(i)--
                            (i) in subclause (I)--
                                    (I) by striking ``2010'' and 
                                inserting ``2017''; and
                                    (II) by striking ``2012'' and 
                                inserting ``2019'';
                            (ii) in subclause (II)--
                                    (I) by striking ``2011'' and 
                                inserting ``2018'';
                                    (II) by striking ``2012'' and 
                                inserting ``2019''; and
                                    (III) by striking ``2017'' and 
                                inserting ``2024''; and
                            (iii) in subclause (III)--
                                    (I) by striking ``2012'' and 
                                inserting ``2019''; and
                                    (II) by striking ``2017'' and 
                                inserting ``2024''.

SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CONSULTATION WITH 
              SECRETARY OF HOMELAND SECURITY.

    Paragraph (1)(A) of section 102 (15 U.S.C. 6701 note) is amended in 
the matter preceding clause (i), by striking ``concurrence with the 
Secretary of State'' and inserting ``consultation with the Secretary of 
Homeland Security''.

SEC. 106. TECHNICAL AMENDMENTS.

    The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is 
amended--
            (1) in section 102--
                    (A) in paragraph (3)--
                            (i) by redesignating subparagraphs (A), 
                        (B), and (C) as clauses (i), (ii), and (iii), 
                        respectively;
                            (ii) in the matter preceding clause (i) (as 
                        so redesignated), by striking ``An entity has'' 
                        and inserting the following:
                    ``(A) In general.--An entity has''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(B) Rule of construction.--An entity, including 
                any affiliate thereof, does not have `control' over 
                another entity, if, as of the date of enactment of the 
                Terrorism Risk Insurance Program Reauthorization Act of 
                2015, the entity is acting as an attorney-in-fact, as 
                defined by the Secretary, for the other entity and such 
                other entity is a reciprocal insurer, provided that the 
                entity is not, for reasons other than the attorney-in-
                fact relationship, defined as having `control' under 
                subparagraph (A).'';
                    (B) in paragraph (7)--
                            (i) by striking subparagraphs (A) through 
                        (F) and inserting the following:
                    ``(A) the value of an insurer's direct earned 
                premiums during the immediately preceding calendar 
                year, multiplied by 20 percent; and'';
                            (ii) by redesignating subparagraph (G) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B), as so 
                        redesignated by clause (ii)--
                                    (I) by striking ``notwithstanding 
                                subparagraphs (A) through (F), for the 
                                Transition Period or any Program Year'' 
                                and inserting ``notwithstanding 
                                subparagraph (A), for any calendar 
                                year''; and
                                    (II) by striking ``Period or 
                                Program Year'' and inserting ``calendar 
                                year'';
                    (C) by striking paragraph (11); and
                    (D) by redesignating paragraphs (12) through (16) 
                as paragraphs (11) through (15), respectively; and
            (2) in section 103--
                    (A) in subsection (b)(2)--
                            (i) in subparagraph (B), by striking ``, 
                        purchase,''; and
                            (ii) in subparagraph (C), by striking ``, 
                        purchase,'';
                    (B) in subsection (c), by striking ``Program Year'' 
                and inserting ``calendar year'';
                    (C) in subsection (e)--
                            (i) in paragraph (1)(A), as previously 
                        amended by section 102--
                                    (I) by striking ``the Transition 
                                Period and each Program Year through 
                                Program Year 4 shall be equal to 90 
                                percent, and during Program Year 5 and 
                                each Program Year thereafter'' and 
                                inserting ``each calendar year'';
                                    (II) by striking the comma after 
                                ``80 percent''; and
                                    (III) by striking ``such Transition 
                                Period or such Program Year'' and 
                                inserting ``such calendar year'';
                            (ii) in paragraph (2)(A), by striking ``the 
                        period beginning on the first day of the 
                        Transition Period and ending on the last day of 
                        Program Year 1, or during any Program Year 
                        thereafter'' and inserting ``a calendar year''; 
                        and
                            (iii) in paragraph (3), by striking ``the 
                        period beginning on the first day of the 
                        Transition Period and ending on the last day of 
                        Program Year 1, or during any other Program 
                        Year'' and inserting ``any calendar year''; and
                    (D) in subsection (g)(2)--
                            (i) by striking ``the Transition Period or 
                        a Program Year'' each place that term appears 
                        and inserting ``the calendar year'';
                            (ii) by striking ``such period'' and 
                        inserting ``the calendar year''; and
                            (iii) by striking ``that period'' and 
                        inserting ``the calendar year''.

SEC. 107. IMPROVING THE CERTIFICATION PROCESS.

    (a) Definitions.--As used in this section--
            (1) the term ``act of terrorism'' has the same meaning as 
        in section 102(1) of the Terrorism Risk Insurance Act of 2002 
        (15 U.S.C. 6701 note);
            (2) the term ``certification process'' means the process by 
        which the Secretary determines whether to certify an act as an 
        act of terrorism under section 102(1) of the Terrorism Risk 
        Insurance Act of 2002 (15 U.S.C. 6701 note); and
            (3) the term ``Secretary'' means the Secretary of the 
        Treasury.
    (b) Study.--Not later than 9 months after the date of enactment of 
this Act, the Secretary shall conduct and complete a study on the 
certification process.
    (c) Required Content.--The study required under subsection (a) 
shall include an examination and analysis of--
            (1) the establishment of a reasonable timeline by which the 
        Secretary must make an accurate determination on whether to 
        certify an act as an act of terrorism;
            (2) the impact that the length of any timeline proposed to 
        be established under paragraph (1) may have on the insurance 
        industry, policyholders, consumers, and taxpayers as a whole;
            (3) the factors the Secretary would evaluate and monitor 
        during the certification process, including the ability of the 
        Secretary to obtain the required information regarding the 
        amount of projected and incurred losses resulting from an act 
        which the Secretary would need in determining whether to 
        certify the act as an act of terrorism;
            (4) the appropriateness, efficiency, and effectiveness of 
        the consultation process required under section 102(1)(A) of 
        the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 
        and any recommendations on changes to the consultation process; 
        and
            (5) the ability of the Secretary to provide guidance and 
        updates to the public regarding any act that may reasonably be 
        certified as an act of terrorism.
    (d) Report.--Upon completion of the study required under subsection 
(a), the Secretary shall submit a report on the results of such study 
to the Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of 
Representatives.
    (e) Rulemaking.--Section 102(1) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) Timing of certification.--Not later than 9 
                months after the report required under section 107 of 
                the Terrorism Risk Insurance Program Reauthorization 
                Act of 2015 is submitted to the appropriate committees 
                of Congress, the Secretary shall issue final rules 
                governing the certification process, including 
                establishing a timeline for which an act is eligible 
                for certification by the Secretary on whether an act is 
                an act of terrorism under this paragraph.''.

SEC. 108. GAO STUDY.

    (a) Study.--Not later than 2 years after the date of enactment of 
this Act, the Comptroller General of the United States shall complete a 
study on the viability and effects of the Federal Government--
            (1) assessing and collecting upfront premiums on insurers 
        that participate in the Terrorism Insurance Program established 
        under the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
        note) (hereafter in this section referred to as the 
        ``Program''), which shall include a comparison of practices in 
        international markets to assess and collect premiums either 
        before or after terrorism losses are incurred; and
            (2) creating a capital reserve fund under the Program and 
        requiring insurers participating in the Program to dedicate 
        capital specifically for terrorism losses before such losses 
        are incurred, which shall include a comparison of practices in 
        international markets to establish reserve funds.
    (b) Required Content.--The study required under subsection (a) 
shall examine, but shall not be limited to, the following issues:
            (1) Upfront premiums.--With respect to upfront premiums 
        described in subsection (a)(1)--
                    (A) how the Federal Government could determine the 
                price of such upfront premiums on insurers that 
                participate in the Program;
                    (B) how the Federal Government could collect and 
                manage such upfront premiums;
                    (C) how the Federal Government could ensure that 
                such upfront premiums are not spent for purposes other 
                than claims through the Program;
                    (D) how the assessment and collection of such 
                upfront premiums could affect take-up rates for 
                terrorism risk coverage in different regions and 
                industries and how it could impact small businesses and 
                consumers in both metropolitan and non-metropolitan 
                areas;
                    (E) the effect of collecting such upfront premiums 
                on insurers both large and small;
                    (F) the effect of collecting such upfront premiums 
                on the private market for terrorism risk reinsurance; 
                and
                    (G) the size of any Federal Government subsidy 
                insurers may receive through their participation in the 
                Program, taking into account the Program's current 
                post-event recoupment structure.
            (2) Capital reserve fund.--With respect to the capital 
        reserve fund described in subsection (a)(2)--
                    (A) how the creation of a capital reserve fund 
                would affect the Federal Government's fiscal exposure 
                under the Terrorism Risk Insurance Program and the 
                ability of the Program to meet its statutory purposes;
                    (B) how a capital reserve fund would impact 
                insurers and reinsurers, including liquidity, insurance 
                pricing, and capacity to provide terrorism risk 
                coverage;
                    (C) the feasibility of segregating funds 
                attributable to terrorism risk from funds attributable 
                to other insurance lines;
                    (D) how a capital reserve fund would be viewed and 
                treated under current Financial Accounting Standards 
                Board accounting rules and the tax laws; and
                    (E) how a capital reserve fund would affect the 
                States' ability to regulate insurers participating in 
                the Program.
            (3) International practices.--With respect to international 
        markets referred to in paragraphs (1) and (2) of subsection 
        (a), how other countries, if any--
                    (A) have established terrorism insurance 
                structures;
                    (B) charge premiums or otherwise collect funds to 
                pay for the costs of terrorism insurance structures, 
                including risk and administrative costs; and
                    (C) have established capital reserve funds to pay 
                for the costs of terrorism insurance structures.
    (c) Report.--Upon completion of the study required under subsection 
(a), the Comptroller General shall submit a report on the results of 
such study to the Committee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services of the House of 
Representatives.
    (d) Public Availability.--The study and report required under this 
section shall be made available to the public in electronic form and 
shall be published on the website of the Government Accountability 
Office.

SEC. 109. MEMBERSHIP OF BOARD OF GOVERNORS OF THE FEDERAL RESERVE 
              SYSTEM.

    (a) In General.--The first undesignated paragraph of section 10 of 
the Federal Reserve Act (12 U.S.C. 241) is amended by inserting after 
the second sentence the following: ``In selecting members of the Board, 
the President shall appoint at least 1 member with demonstrated primary 
experience working in or supervising community banks having less than 
$10,000,000,000 in total assets.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of enactment of this Act and apply to appointments 
made on and after that effective date, excluding any nomination pending 
in the Senate on that date.

SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS.

    (a) Finding; Rule of Construction.--
            (1) Finding.--Congress finds that it is desirable to 
        encourage the growth of nongovernmental, private market 
        reinsurance capacity for protection against losses arising from 
        acts of terrorism.
            (2) Rule of construction.--Nothing in this Act, any 
        amendment made by this Act, or the Terrorism Risk Insurance Act 
        of 2002 (15 U.S.C. 6701 note) shall prohibit insurers from 
        developing risk-sharing mechanisms to voluntarily reinsure 
        terrorism losses between and among themselves.
    (b) Advisory Committee on Risk-Sharing Mechanisms.--
            (1) Establishment.--The Secretary of the Treasury shall 
        establish and appoint an advisory committee to be known as the 
        ``Advisory Committee on Risk-Sharing Mechanisms'' (referred to 
        in this subsection as the ``Advisory Committee'').
            (2) Duties.--The Advisory Committee shall provide advice, 
        recommendations, and encouragement with respect to the creation 
        and development of the nongovernmental risk-sharing mechanisms 
        described under subsection (a).
            (3) Membership.--The Advisory Committee shall be composed 
        of 9 members who are directors, officers, or other employees of 
        insurers, reinsurers, or capital market participants that are 
        participating or that desire to participate in the 
        nongovernmental risk-sharing mechanisms described under 
        subsection (a), and who are representative of the affected 
        sectors of the insurance industry, including commercial 
        property insurance, commercial casualty insurance, reinsurance, 
        and alternative risk transfer industries.

SEC. 111. REPORTING OF TERRORISM INSURANCE DATA.

    Section 104 (15 U.S.C. 6701 note) is amended by adding at the end 
the following new subsection:
    ``(h) Reporting of Terrorism Insurance Data.--
            ``(1) Authority.--During the calendar year beginning on 
        January 1, 2016, and in each calendar year thereafter, the 
        Secretary shall require insurers participating in the Program 
        to submit to the Secretary such information regarding insurance 
        coverage for terrorism losses of such insurers as the Secretary 
        considers appropriate to analyze the effectiveness of the 
        Program, which shall include information regarding--
                    ``(A) lines of insurance with exposure to such 
                losses;
                    ``(B) premiums earned on such coverage;
                    ``(C) geographical location of exposures;
                    ``(D) pricing of such coverage;
                    ``(E) the take-up rate for such coverage;
                    ``(F) the amount of private reinsurance for acts of 
                terrorism purchased; and
                    ``(G) such other matters as the Secretary considers 
                appropriate.
            ``(2) Reports.--Not later than June 30, 2016, and every 
        other June 30 thereafter, the Secretary shall submit a report 
        to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate that includes--
                    ``(A) an analysis of the overall effectiveness of 
                the Program;
                    ``(B) an evaluation of any changes or trends in the 
                data collected under paragraph (1);
                    ``(C) an evaluation of whether any aspects of the 
                Program have the effect of discouraging or impeding 
                insurers from providing commercial property casualty 
                insurance coverage or coverage for acts of terrorism;
                    ``(D) an evaluation of the impact of the Program on 
                workers' compensation insurers; and
                    ``(E) in the case of the data reported in paragraph 
                (1)(B), an updated estimate of the total amount earned 
                since January 1, 2003.
            ``(3) Protection of data.--To the extent possible, the 
        Secretary shall contract with an insurance statistical 
        aggregator to collect the information described in paragraph 
        (1), which shall keep any nonpublic information confidential 
        and provide it to the Secretary in an aggregate form or in such 
        other form or manner that does not permit identification of the 
        insurer submitting such information.
            ``(4) Advance coordination.--Before collecting any data or 
        information under paragraph (1) from an insurer, or affiliate 
        of an insurer, the Secretary shall coordinate with the 
        appropriate State insurance regulatory authorities and any 
        relevant government agency or publicly available sources to 
        determine if the information to be collected is available from, 
        and may be obtained in a timely manner by, individually or 
        collectively, such entities. If the Secretary determines that 
        such data or information is available, and may be obtained in a 
        timely matter, from such entities, the Secretary shall obtain 
        the data or information from such entities. If the Secretary 
        determines that such data or information is not so available, 
        the Secretary may collect such data or information from an 
        insurer and affiliates.
            ``(5) Confidentiality.--
                    ``(A) Retention of privilege.--The submission of 
                any non-publicly available data and information to the 
                Secretary and the sharing of any non-publicly available 
                data with or by the Secretary among other Federal 
                agencies, the State insurance regulatory authorities, 
                or any other entities under this subsection shall not 
                constitute a waiver of, or otherwise affect, any 
                privilege arising under Federal or State law (including 
                the rules of any Federal or State court) to which the 
                data or information is otherwise subject.
                    ``(B) Continued application of prior 
                confidentiality agreements.--Any requirement under 
                Federal or State law to the extent otherwise 
                applicable, or any requirement pursuant to a written 
                agreement in effect between the original source of any 
                non-publicly available data or information and the 
                source of such data or information to the Secretary, 
                regarding the privacy or confidentiality of any data or 
                information in the possession of the source to the 
                Secretary, shall continue to apply to such data or 
                information after the data or information has been 
                provided pursuant to this subsection.
                    ``(C) Information-sharing agreement.--Any data or 
                information obtained by the Secretary under this 
                subsection may be made available to State insurance 
                regulatory authorities, individually or collectively 
                through an information-sharing agreement that--
                            ``(i) shall comply with applicable Federal 
                        law; and
                            ``(ii) shall not constitute a waiver of, or 
                        otherwise affect, any privilege under Federal 
                        or State law (including any privilege referred 
                        to in subparagraph (A) and the rules of any 
                        Federal or State court) to which the data or 
                        information is otherwise subject.
                    ``(D) Agency disclosure requirements.--Section 552 
                of title 5, United States Code, including any 
                exceptions thereunder, shall apply to any data or 
                information submitted under this subsection to the 
                Secretary by an insurer or affiliate of an insurer.''.

SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET COMPETITIVENESS.

    Section 108 (15 U.S.C. 6701 note) is amended by adding at the end 
the following new subsection:
    ``(h) Study of Small Insurer Market Competitiveness.--
            ``(1) In general.--Not later than June 30, 2017, and every 
        other June 30 thereafter, the Secretary shall conduct a study 
        of small insurers (as such term is defined by regulation by the 
        Secretary) participating in the Program, and identify any 
        competitive challenges small insurers face in the terrorism 
        risk insurance marketplace, including--
                    ``(A) changes to the market share, premium volume, 
                and policyholder surplus of small insurers relative to 
                large insurers;
                    ``(B) how the property and casualty insurance 
                market for terrorism risk differs between small and 
                large insurers, and whether such a difference exists 
                within other perils;
                    ``(C) the impact of the Program's mandatory 
                availability requirement under section 103(c) on small 
                insurers;
                    ``(D) the effect of increasing the trigger amount 
                for the Program under section 103(e)(1)(B) on small 
                insurers;
                    ``(E) the availability and cost of private 
                reinsurance for small insurers; and
                    ``(F) the impact that State workers compensation 
                laws have on small insurers and workers compensation 
                carriers in the terrorism risk insurance marketplace.
            ``(2) Report.--The Secretary shall submit a report to the 
        Congress setting forth the findings and conclusions of each 
        study required under paragraph (1).''.

 TITLE II--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM

SEC. 201. SHORT TITLE.

    This title may be cited as the ``National Association of Registered 
Agents and Brokers Reform Act of 2015''.

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

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

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

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

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

``SEC. 322. PURPOSE.

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

``SEC. 323. MEMBERSHIP.

    ``(a) Eligibility.--
            ``(1) In general.--Any insurance producer licensed in its 
        home State shall, subject to paragraphs (2) and (4), be 
        eligible to become a member of the Association.
            ``(2) Ineligibility for suspension or revocation of 
        license.--Subject to paragraph (3), an insurance producer is 
        not eligible to become a member of the Association if a State 
        insurance regulator has suspended or revoked the insurance 
        license of the insurance producer in that State.
            ``(3) Resumption of eligibility.--Paragraph (2) shall cease 
        to apply to any insurance producer if--
                    ``(A) the State insurance regulator reissues or 
                renews the license of the insurance producer in the 
                State in which the license was suspended or revoked, or 
                otherwise terminates or vacates the suspension or 
                revocation; or
                    ``(B) the suspension or revocation expires or is 
                subsequently overturned by a court of competent 
                jurisdiction.
            ``(4) Criminal history record check required.--
                    ``(A) In general.--An insurance producer who is an 
                individual shall not be eligible to become a member of 
                the Association unless the insurance producer has 
                undergone a criminal history record check that complies 
                with regulations prescribed by the Attorney General of 
                the United States under subparagraph (K).
                    ``(B) Criminal history record check requested by 
                home state.--An insurance producer who is licensed in a 
                State and who has undergone a criminal history record 
                check during the 2-year period preceding the date of 
                submission of an application to become a member of the 
                Association, in compliance with a requirement to 
                undergo such criminal history record check as a 
                condition for such licensure in the State, shall be 
                deemed to have undergone a criminal history record 
                check for purposes of subparagraph (A).
                    ``(C) Criminal history record check requested by 
                association.--
                            ``(i) In general.--The Association shall, 
                        upon request by an insurance producer licensed 
                        in a State, submit fingerprints or other 
                        identification information obtained from the 
                        insurance producer, and a request for a 
                        criminal history record check of the insurance 
                        producer, to the Federal Bureau of 
                        Investigation.
                            ``(ii) Procedures.--The board of directors 
                        of the Association (referred to in this 
                        subtitle as the `Board') shall prescribe 
                        procedures for obtaining and utilizing 
                        fingerprints or other identification 
                        information and criminal history record 
                        information, including the establishment of 
                        reasonable fees to defray the expenses of the 
                        Association in connection with the performance 
                        of a criminal history record check and 
                        appropriate safeguards for maintaining 
                        confidentiality and security of the 
                        information. Any fees charged pursuant to this 
                        clause shall be separate and distinct from 
                        those charged by the Attorney General pursuant 
                        to subparagraph (I).
                    ``(D) Form of request.--A submission under 
                subparagraph (C)(i) shall include such fingerprints or 
                other identification information as is required by the 
                Attorney General concerning the person about whom the 
                criminal history record check is requested, and a 
                statement signed by the person authorizing the Attorney 
                General to provide the information to the Association 
                and for the Association to receive the information.
                    ``(E) Provision of information by attorney 
                general.--Upon receiving a submission under 
                subparagraph (C)(i) from the Association, the Attorney 
                General shall search all criminal history records of 
                the Federal Bureau of Investigation, including records 
                of the Criminal Justice Information Services Division 
                of the Federal Bureau of Investigation, that the 
                Attorney General determines appropriate for criminal 
                history records corresponding to the fingerprints or 
                other identification information provided under 
                subparagraph (D) and provide all criminal history 
                record information included in the request to the 
                Association.
                    ``(F) Limitation on permissible uses of 
                information.--Any information provided to the 
                Association under subparagraph (E) may only--
                            ``(i) be used for purposes of determining 
                        compliance with membership criteria established 
                        by the Association;
                            ``(ii) be disclosed to State insurance 
                        regulators, or Federal or State law enforcement 
                        agencies, in conformance with applicable law; 
                        or
                            ``(iii) be disclosed, upon request, to the 
                        insurance producer to whom the criminal history 
                        record information relates.
                    ``(G) Penalty for improper use or disclosure.--
                Whoever knowingly uses any information provided under 
                subparagraph (E) for a purpose not authorized in 
                subparagraph (F), or discloses any such information to 
                anyone not authorized to receive it, shall be fined not 
                more than $50,000 per violation as determined by a 
                court of competent jurisdiction.
                    ``(H) Reliance on information.--Neither the 
                Association nor any of its Board members, officers, or 
                employees shall be liable in any action for using 
                information provided under subparagraph (E) as 
                permitted under subparagraph (F) in good faith and in 
                reasonable reliance on its accuracy.
                    ``(I) Fees.--The Attorney General may charge a 
                reasonable fee for conducting the search and providing 
                the information under subparagraph (E), and any such 
                fee shall be collected and remitted by the Association 
                to the Attorney General.
                    ``(J) Rule of construction.--Nothing in this 
                paragraph shall be construed as--
                            ``(i) requiring a State insurance regulator 
                        to perform criminal history record checks under 
                        this section; or
                            ``(ii) limiting any other authority that 
                        allows access to criminal history records.
                    ``(K) Regulations.--The Attorney General shall 
                prescribe regulations to carry out this paragraph, 
                which shall include--
                            ``(i) appropriate protections for ensuring 
                        the confidentiality of information provided 
                        under subparagraph (E); and
                            ``(ii) procedures providing a reasonable 
                        opportunity for an insurance producer to 
                        contest the accuracy of information regarding 
                        the insurance producer provided under 
                        subparagraph (E).
                    ``(L) Ineligibility for membership.--
                            ``(i) In general.--The Association may, 
                        under reasonably consistently applied 
                        standards, deny membership to an insurance 
                        producer on the basis of criminal history 
                        record information provided under subparagraph 
                        (E), or where the insurance producer has been 
                        subject to disciplinary action, as described in 
                        paragraph (2).
                            ``(ii) Rights of applicants denied 
                        membership.--The Association shall notify any 
                        insurance producer who is denied membership on 
                        the basis of criminal history record 
                        information provided under subparagraph (E) of 
                        the right of the insurance producer to--
                                    ``(I) obtain a copy of all criminal 
                                history record information provided to 
                                the Association under subparagraph (E) 
                                with respect to the insurance producer; 
                                and
                                    ``(II) challenge the denial of 
                                membership based on the accuracy and 
                                completeness of the information.
                    ``(M) Definition.--For purposes of this paragraph, 
                the term `criminal history record check' means a 
                national background check of criminal history records 
                of the Federal Bureau of Investigation.
    ``(b) Authority To Establish Membership Criteria.--The Association 
may establish membership criteria that bear a reasonable relationship 
to the purposes for which the Association was established.
    ``(c) Establishment of Classes and Categories of Membership.--
            ``(1) Classes of membership.--The Association may establish 
        separate classes of membership, with separate criteria, if the 
        Association reasonably determines that performance of different 
        duties requires different levels of education, training, 
        experience, or other qualifications.
            ``(2) Business entities.--The Association shall establish a 
        class of membership and membership criteria for business 
        entities. A business entity that applies for membership shall 
        be required to designate an individual Association member 
        responsible for the compliance of the business entity with 
        Association standards and the insurance laws, standards, and 
        regulations of any State in which the business entity seeks to 
        do business on the basis of Association membership.
            ``(3) Categories.--
                    ``(A) Separate categories for insurance producers 
                permitted.--The Association may establish separate 
                categories of membership for insurance producers and 
                for other persons or entities within each class, based 
                on the types of licensing categories that exist under 
                State laws.
                    ``(B) Separate treatment for depository 
                institutions prohibited.--No special categories of 
                membership, and no distinct membership criteria, shall 
                be established for members that are depository 
                institutions or for employees, agents, or affiliates of 
                depository institutions.
    ``(d) Membership Criteria.--
            ``(1) In general.--The Association may establish criteria 
        for membership which shall include standards for personal 
        qualifications, education, training, and experience. The 
        Association shall not establish criteria that unfairly limit 
        the ability of a small insurance producer to become a member of 
        the Association, including imposing discriminatory membership 
        fees.
            ``(2) Qualifications.--In establishing criteria under 
        paragraph (1), the Association shall not adopt any 
        qualification less protective to the public than that contained 
        in the National Association of Insurance Commissioners 
        (referred to in this subtitle as the `NAIC') Producer Licensing 
        Model Act in effect as of the date of enactment of the National 
        Association of Registered Agents and Brokers Reform Act of 
        2015, and shall consider the highest levels of insurance 
        producer qualifications established under the licensing laws of 
        the States.
            ``(3) Assistance from states.--
                    ``(A) In general.--The Association may request a 
                State to provide assistance in investigating and 
                evaluating the eligibility of a prospective member for 
                membership in the Association.
                    ``(B) Authorization of information sharing.--A 
                submission under subsection (a)(4)(C)(i) made by an 
                insurance producer licensed in a State shall include a 
                statement signed by the person about whom the 
                assistance is requested authorizing--
                            ``(i) the State to share information with 
                        the Association; and
                            ``(ii) the Association to receive the 
                        information.
                    ``(C) Rule of construction.--Subparagraph (A) shall 
                not be construed as requiring or authorizing any State 
                to adopt new or additional requirements concerning the 
                licensing or evaluation of insurance producers.
            ``(4) Denial of membership.--The Association may, based on 
        reasonably consistently applied standards, deny membership to 
        any State-licensed insurance producer for failure to meet the 
        membership criteria established by the Association.
    ``(e) Effect of Membership.--
            ``(1) Authority of association members.--Membership in the 
        Association shall--
                    ``(A) authorize an insurance producer to sell, 
                solicit, or negotiate insurance in any State for which 
                the member pays the licensing fee set by the State for 
                any line or lines of insurance specified in the home 
                State license of the insurance producer, and exercise 
                all such incidental powers as shall be necessary to 
                carry out such activities, including claims adjustments 
                and settlement to the extent permissible under the laws 
                of the State, risk management, employee benefits 
                advice, retirement planning, and any other insurance-
                related consulting activities;
                    ``(B) be the equivalent of a nonresident insurance 
                producer license for purposes of authorizing the 
                insurance producer to engage in the activities 
                described in subparagraph (A) in any State where the 
                member pays the licensing fee; and
                    ``(C) be the equivalent of a nonresident insurance 
                producer license for the purpose of subjecting an 
                insurance producer to all laws, regulations, provisions 
                or other action of any State concerning revocation, 
                suspension, or other enforcement action related to the 
                ability of a member to engage in any activity within 
                the scope of authority granted under this subsection 
                and to all State laws, regulations, provisions, and 
                actions preserved under paragraph (5).
            ``(2) Violent crime control and law enforcement act of 
        1994.--Nothing in this subtitle shall be construed to alter, 
        modify, or supercede any requirement established by section 
        1033 of title 18, United States Code.
            ``(3) Agent for remitting fees.--The Association shall act 
        as an agent for any member for purposes of remitting licensing 
        fees to any State pursuant to paragraph (1).
            ``(4) Notification of action.--
                    ``(A) In general.--The Association shall notify the 
                States (including State insurance regulators) and the 
                NAIC when an insurance producer has satisfied the 
                membership criteria of this section. The States 
                (including State insurance regulators) shall have 10 
                business days after the date of the notification in 
                order to provide the Association with evidence that the 
                insurance producer does not satisfy the criteria for 
                membership in the Association.
                    ``(B) Ongoing disclosures required.--On an ongoing 
                basis, the Association shall disclose to the States 
                (including State insurance regulators) and the NAIC a 
                list of the States in which each member is authorized 
                to operate. The Association shall immediately notify 
                the States (including State insurance regulators) and 
                the NAIC when a member is newly authorized to operate 
                in one or more States, or is no longer authorized to 
                operate in one or more States on the basis of 
                Association membership.
            ``(5) Preservation of consumer protection and market 
        conduct regulation.--
                    ``(A) In general.--No provision of this section 
                shall be construed as altering or affecting the 
                applicability or continuing effectiveness of any law, 
                regulation, provision, or other action of any State, 
                including those described in subparagraph (B), to the 
                extent that the State law, regulation, provision, or 
                other action is not inconsistent with the provisions of 
                this subtitle related to market entry for nonresident 
                insurance producers, and then only to the extent of the 
                inconsistency.
                    ``(B) Preserved regulations.--The laws, 
                regulations, provisions, or other actions of any State 
                referred to in subparagraph (A) include laws, 
                regulations, provisions, or other actions that--
                            ``(i) regulate market conduct, insurance 
                        producer conduct, or unfair trade practices;
                            ``(ii) establish consumer protections; or
                            ``(iii) require insurance producers to be 
                        appointed by a licensed or authorized insurer.
    ``(f) Biennial Renewal.--Membership in the Association shall be 
renewed on a biennial basis.
    ``(g) Continuing Education.--
            ``(1) In general.--The Association shall establish, as a 
        condition of membership, continuing education requirements 
        which shall be comparable to the continuing education 
        requirements under the licensing laws of a majority of the 
        States.
            ``(2) State continuing education requirements.--A member 
        may not be required to satisfy continuing education 
        requirements imposed under the laws, regulations, provisions, 
        or actions of any State other than the home State of the 
        member.
            ``(3) Reciprocity.--The Association shall not require a 
        member to satisfy continuing education requirements that are 
        equivalent to any continuing education requirements of the home 
        State of the member that have been satisfied by the member 
        during the applicable licensing period.
            ``(4) Limitation on the association.--The Association shall 
        not directly or indirectly offer any continuing education 
        courses for insurance producers.
    ``(h) Probation, Suspension and Revocation.--
            ``(1) Disciplinary action.--The Association may place an 
        insurance producer that is a member of the Association on 
        probation or suspend or revoke the membership of the insurance 
        producer in the Association, or assess monetary fines or 
        penalties, as the Association determines to be appropriate, 
        if--
                    ``(A) the insurance producer fails to meet the 
                applicable membership criteria or other standards 
                established by the Association;
                    ``(B) the insurance producer has been subject to 
                disciplinary action pursuant to a final adjudicatory 
                proceeding under the jurisdiction of a State insurance 
                regulator;
                    ``(C) an insurance license held by the insurance 
                producer has been suspended or revoked by a State 
                insurance regulator; or
                    ``(D) the insurance producer has been convicted of 
                a crime that would have resulted in the denial of 
                membership pursuant to subsection (a)(4)(L)(i) at the 
                time of application, and the Association has received a 
                copy of the final disposition from a court of competent 
                jurisdiction.
            ``(2) Violations of association standards.--The Association 
        shall have the power to investigate alleged violations of 
        Association standards.
            ``(3) Reporting.--The Association shall immediately notify 
        the States (including State insurance regulators) and the NAIC 
        when the membership of an insurance producer has been placed on 
        probation or has been suspended, revoked, or otherwise 
        terminated, or when the Association has assessed monetary fines 
        or penalties.
    ``(i) Consumer Complaints.--
            ``(1) In general.--The Association shall--
                    ``(A) refer any complaint against a member of the 
                Association from a consumer relating to alleged 
                misconduct or violations of State insurance laws to the 
                State insurance regulator where the consumer resides 
                and, when appropriate, to any additional State 
                insurance regulator, as determined by standards adopted 
                by the Association; and
                    ``(B) make any related records and information 
                available to each State insurance regulator to whom the 
                complaint is forwarded.
            ``(2) Telephone and other access.--The Association shall 
        maintain a toll-free number for purposes of this subsection 
        and, as practicable, other alternative means of communication 
        with consumers, such as an Internet webpage.
            ``(3) Final disposition of investigation.--State insurance 
        regulators shall provide the Association with information 
        regarding the final disposition of a complaint referred 
        pursuant to paragraph (1)(A), but nothing shall be construed to 
        compel a State to release confidential investigation reports or 
        other information protected by State law to the Association.
    ``(j) Information Sharing.--The Association may--
            ``(1) share documents, materials, or other information, 
        including confidential and privileged documents, with a State, 
        Federal, or international governmental entity or with the NAIC 
        or other appropriate entity referred to paragraphs (3) and (4), 
        provided that the recipient has the authority and agrees to 
        maintain the confidentiality or privileged status of the 
        document, material, or other information;
            ``(2) limit the sharing of information as required under 
        this subtitle with the NAIC or any other non-governmental 
        entity, in circumstances under which the Association determines 
        that the sharing of such information is unnecessary to further 
        the purposes of this subtitle;
            ``(3) establish a central clearinghouse, or utilize the 
        NAIC or another appropriate entity, as determined by the 
        Association, as a central clearinghouse, for use by the 
        Association and the States (including State insurance 
        regulators), through which members of the Association may 
        disclose their intent to operate in 1 or more States and pay 
        the licensing fees to the appropriate States; and
            ``(4) establish a database, or utilize the NAIC or another 
        appropriate entity, as determined by the Association, as a 
        database, for use by the Association and the States (including 
        State insurance regulators) for the collection of regulatory 
        information concerning the activities of insurance producers.
    ``(k) Effective Date.--The provisions of this section shall take 
effect on the later of--
            ``(1) the expiration of the 2-year period beginning on the 
        date of enactment of the National Association of Registered 
        Agents and Brokers Reform Act of 2015; and
            ``(2) the date of incorporation of the Association.

``SEC. 324. BOARD OF DIRECTORS.

    ``(a) Establishment.--There is established a board of directors of 
the Association, which shall have authority to govern and supervise all 
activities of the Association.
    ``(b) Powers.--The Board shall have such of the powers and 
authority of the Association as may be specified in the bylaws of the 
Association.
    ``(c) Composition.--
            ``(1) In general.--The Board shall consist of 13 members 
        who shall be appointed by the President, by and with the advice 
        and consent of the Senate, in accordance with the procedures 
        established under Senate Resolution 116 of the 112th Congress, 
        of whom--
                    ``(A) 8 shall be State insurance commissioners 
                appointed in the manner provided in paragraph (2), 1 of 
                whom shall be designated by the President to serve as 
                the chairperson of the Board until the Board elects one 
                such State insurance commissioner Board member to serve 
                as the chairperson of the Board;
                    ``(B) 3 shall have demonstrated expertise and 
                experience with property and casualty insurance 
                producer licensing; and
                    ``(C) 2 shall have demonstrated expertise and 
                experience with life or health insurance producer 
                licensing.
            ``(2) State insurance regulator representatives.--
                    ``(A) Recommendations.--Before making any 
                appointments pursuant to paragraph (1)(A), the 
                President shall request a list of recommended 
                candidates from the States through the NAIC, which 
                shall not be binding on the President. If the NAIC 
                fails to submit a list of recommendations not later 
                than 15 business days after the date of the request, 
                the President may make the requisite appointments 
                without considering the views of the NAIC.
                    ``(B) Political affiliation.--Not more than 4 Board 
                members appointed under paragraph (1)(A) shall belong 
                to the same political party.
                    ``(C) Former state insurance commissioners.--
                            ``(i) In general.--If, after offering each 
                        currently serving State insurance commissioner 
                        an appointment to the Board, fewer than 8 State 
                        insurance commissioners have accepted 
                        appointment to the Board, the President may 
                        appoint the remaining State insurance 
                        commissioner Board members, as required under 
                        paragraph (1)(A), of the appropriate political 
                        party as required under subparagraph (B), from 
                        among individuals who are former State 
                        insurance commissioners.
                            ``(ii) Limitation.--A former State 
                        insurance commissioner appointed as described 
                        in clause (i) may not be employed by or have 
                        any present direct or indirect financial 
                        interest in any insurer, insurance producer, or 
                        other entity in the insurance industry, other 
                        than direct or indirect ownership of, or 
                        beneficial interest in, an insurance policy or 
                        annuity contract written or sold by an insurer.
                    ``(D) Service through term.--If a Board member 
                appointed under paragraph (1)(A) ceases to be a State 
                insurance commissioner during the term of the Board 
                member, the Board member shall cease to be a Board 
                member.
            ``(3) Private sector representatives.--In making any 
        appointment pursuant to subparagraph (B) or (C) of paragraph 
        (1), the President may seek recommendations for candidates from 
        groups representing the category of individuals described, 
        which shall not be binding on the President.
            ``(4) State insurance commissioner defined.--For purposes 
        of this subsection, the term `State insurance commissioner' 
        means a person who serves in the position in State government, 
        or on the board, commission, or other body that is the primary 
        insurance regulatory authority for the State.
    ``(d) Terms.--
            ``(1) In general.--Except as provided under paragraph (2), 
        the term of service for each Board member shall be 2 years.
            ``(2) Exceptions.--
                    ``(A) 1-year terms.--The term of service shall be 1 
                year, as designated by the President at the time of the 
                nomination of the subject Board members for--
                            ``(i) 4 of the State insurance commissioner 
                        Board members initially appointed under 
                        paragraph (1)(A), of whom not more than 2 shall 
                        belong to the same political party;
                            ``(ii) 1 of the Board members initially 
                        appointed under paragraph (1)(B); and
                            ``(iii) 1 of the Board members initially 
                        appointed under paragraph (1)(C).
                    ``(B) Expiration of term.--A Board member may 
                continue to serve after the expiration of the term to 
                which the Board member was appointed for the earlier of 
                2 years or until a successor is appointed.
                    ``(C) Mid-term appointments.--A Board member 
                appointed to fill a vacancy occurring before the 
                expiration of the term for which the predecessor of the 
                Board member was appointed shall be appointed only for 
                the remainder of that term.
            ``(3) Successive terms.--Board members may be reappointed 
        to successive terms.
    ``(e) Initial Appointments.--The appointment of initial Board 
members shall be made no later than 90 days after the date of enactment 
of the National Association of Registered Agents and Brokers Reform Act 
of 2015.
    ``(f) Meetings.--
            ``(1) In general.--The Board shall meet--
                    ``(A) at the call of the chairperson;
                    ``(B) as requested in writing to the chairperson by 
                not fewer than 5 Board members; or
                    ``(C) as otherwise provided by the bylaws of the 
                Association.
            ``(2) Quorum required.--A majority of all Board members 
        shall constitute a quorum.
            ``(3) Voting.--Decisions of the Board shall require the 
        approval of a majority of all Board members present at a 
        meeting, a quorum being present.
            ``(4) Initial meeting.--The Board shall hold its first 
        meeting not later than 45 days after the date on which all 
        initial Board members have been appointed.
    ``(g) Restriction on Confidential Information.--Board members 
appointed pursuant to subparagraphs (B) and (C) of subsection (c)(1) 
shall not have access to confidential information received by the 
Association in connection with complaints, investigations, or 
disciplinary proceedings involving insurance producers.
    ``(h) Ethics and Conflicts of Interest.--The Board shall issue and 
enforce an ethical conduct code to address permissible and prohibited 
activities of Board members and Association officers, employees, 
agents, or consultants. The code shall, at a minimum, include 
provisions that prohibit any Board member or Association officer, 
employee, agent or consultant from--
            ``(1) engaging in unethical conduct in the course of 
        performing Association duties;
            ``(2) participating in the making or influencing the making 
        of any Association decision, the outcome of which the Board 
        member, officer, employee, agent, or consultant knows or had 
        reason to know would have a reasonably foreseeable material 
        financial effect, distinguishable from its effect on the public 
        generally, on the person or a member of the immediate family of 
        the person;
            ``(3) accepting any gift from any person or entity other 
        than the Association that is given because of the position held 
        by the person in the Association;
            ``(4) making political contributions to any person or 
        entity on behalf of the Association; and
            ``(5) lobbying or paying a person to lobby on behalf of the 
        Association.
    ``(i) Compensation.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        Board member may receive any compensation from the Association 
        or any other person or entity on account of Board membership.
            ``(2) Travel expenses and per diem.--Board members may be 
        reimbursed only by the Association for travel expenses, 
        including per diem in lieu of subsistence, at rates consistent 
        with rates authorized for employees of Federal agencies under 
        subchapter I of chapter 57 of title 5, United States Code, 
        while away from home or regular places of business in 
        performance of services for the Association.

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

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

``SEC. 326. POWERS.

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

``SEC. 327. REPORT BY THE ASSOCIATION.

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

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

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

``SEC. 329. PRESIDENTIAL OVERSIGHT.

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

``SEC. 330. RELATIONSHIP TO STATE LAW.

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

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

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

``SEC. 332. RIGHT OF ACTION.

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

``SEC. 333. FEDERAL FUNDING PROHIBITED.

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

``SEC. 334. DEFINITIONS.

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

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

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

      TITLE III--BUSINESS RISK MITIGATION AND PRICE STABILIZATION

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Business Risk Mitigation and Price 
Stabilization Act of 2015''.

SEC. 302. MARGIN REQUIREMENTS.

    (a) Commodity Exchange Act Amendment.--Section 4s(e) of the 
Commodity Exchange Act (7 U.S.C. 6s(e)), as added by section 731 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended 
by adding at the end the following new paragraph:
            ``(4) Applicability with respect to counterparties.--The 
        requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including 
        the initial and variation margin requirements imposed by rules 
        adopted pursuant to paragraphs (2)(A)(ii) and (2)(B)(ii), shall 
        not apply to a swap in which a counterparty qualifies for an 
        exception under section 2(h)(7)(A), or an exemption issued 
        under section 4(c)(1) from the requirements of section 
        2(h)(1)(A) for cooperative entities as defined in such 
        exemption, or satisfies the criteria in section 2(h)(7)(D).''.
    (b) Securities Exchange Act Amendment.--Section 15F(e) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-10(e)), as added by 
section 764(a) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, is amended by adding at the end the following new 
paragraph:
            ``(4) Applicability with respect to counterparties.--The 
        requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not 
        apply to a security-based swap in which a counterparty 
        qualifies for an exception under section 3C(g)(1) or satisfies 
        the criteria in section 3C(g)(4).''.

SEC. 303. IMPLEMENTATION.

    The amendments made by this title to the Commodity Exchange Act 
shall be implemented--
            (1) without regard to--
                    (A) chapter 35 of title 44, United States Code; and
                    (B) the notice and comment provisions of section 
                553 of title 5, United States Code;
            (2) through the promulgation of an interim final rule, 
        pursuant to which public comment will be sought before a final 
        rule is issued; and
            (3) such that paragraph (1) shall apply solely to changes 
        to rules and regulations, or proposed rules and regulations, 
        that are limited to and directly a consequence of such 
        amendments.
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