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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 26 Enrolled Bill (ENR)]

        H.R.26

                     One Hundred Fourteenth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
           the sixth day of January, two thousand and fifteen

                                 An Act

 
   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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```