In the House of Representatives, U. S., 

December 10, 2014. 

Resolved, That the bill from the Senate (S. 2244) entitled ‘‘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.’’, do pass with 

the following 

AMENDMENT: 

Strike all after the enacting clause and insert the 

following: 

1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Ter3 rorism Risk Insurance Program Reauthorization Act of 

4 2014’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 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. 
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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. 

1 TITLE I—EXTENSION OF TER2 RORISM INSURANCE PRO3 GRAM 

4 SEC. 101. EXTENSION OF TERRORISM INSURANCE PRO5 GRAM. 

6 Section 108(a) of the Terrorism Risk Insurance Act 

7 of 2002 (15 U.S.C. 6701 note) is amended by striking ‘‘De8 cember 31, 2014’’ and inserting ‘‘December 31, 2020’’. 

9 SEC. 102. FEDERAL SHARE. 

10 Section 103(e)(1)(A) of the Terrorism Risk Insurance 

11 Act of 2002 (15 U.S.C. 6701 note) is amended by inserting 

12 ‘‘and beginning on January 1, 2016, shall decrease by 1 

13 percentage point per calendar year until equal to 80 per14 cent’’ after ‘‘85 percent’’. 

15 SEC. 103. PROGRAM TRIGGER. 

16 Subparagraph (B) of section 103(e)(1) (15 U.S.C. 

17 6701 note) is amended in the matter preceding clause (i)— 

18 (1) by striking ‘‘a certified act’’ and inserting 

19 ‘‘certified acts’’; 
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1 (2) by striking ‘‘such certified act’’ and inserting 

2 ‘‘such certified acts’’; and 

3 (3) by striking ‘‘exceed’’ and all that follows 

4 through clause (ii) and inserting the following: ‘‘ex5 ceed— 

6 ‘‘(i) $100,000,000, with respect to such 

7 insured losses occurring in calendar year 

8 2015; 

9 ‘‘(ii) $120,000,000, with respect to such 

10 insured losses occurring in calendar year 

11 2016; 

12 ‘‘(iii) $140,000,000, with respect to 

13 such insured losses occurring in calendar 

14 year 2017; 

15 ‘‘(iv) $160,000,000, with respect to 

16 such insured losses occurring in calendar 

17 year 2018; 

18 ‘‘(v) $180,000,000, with respect to such 

19 insured losses occurring in calendar year 

20 2019; and 

21 ‘‘(vi) $200,000,000, with respect to 

22 such insured losses occurring in calendar 

23 year 2020 and any calendar year there24 after.’’. 
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1 SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COMPENSA2 TION UNDER THE PROGRAM. 

3 Section 103(e) of the Terrorism Risk Insurance Act of 

4 2002 (15 U.S.C. 6701 note) is amended— 

5 (1) by amending paragraph (6) to read as fol6 lows: 

7 ‘‘(6) INSURANCE MARKETPLACE AGGREGATE RE8 TENTION AMOUNT.— 

9 ‘‘(A) IN GENERAL.—For purposes of para10 graph (7), the insurance marketplace aggregate 

11 retention amount shall be the lesser of— 

12 ‘‘(i) $27,500,000,000, as such amount 

13 is revised pursuant to this paragraph; and 

14 ‘‘(ii) the aggregate amount, for all in15 surers, of insured losses during such cal16 endar year. 

17 ‘‘(B) REVISION OF INSURANCE MARKET18 PLACE AGGREGATE RETENTION AMOUNT.— 

19 ‘‘(i) PHASE-IN.—Beginning in the cal20 endar year that follows the date of enact21 ment of the Terrorism Risk Insurance Pro22 gram Reauthorization Act of 2014, the 

23 amount set forth under subparagraph (A)(i) 

24 shall increase by $2,000,000,000 per cal25 endar year until equal to $37,500,000,000. 
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1 ‘‘(ii) FURTHER REVISION.—Beginning 

2 in the calendar year that follows the cal3 endar year in which the amount set forth 

4 under subparagraph (A)(i) is equal to 

5 $37,500,000,000, the amount under sub6 paragraph (A)(i) shall be revised to be the 

7 amount equal to the annual average of the 

8 sum of insurer deductibles for all insurers 

9 participating in the Program for the prior 

10 3 calendar years, as such sum is determined 

11 by the Secretary under subparagraph (C). 

12 ‘‘(C) RULEMAKING.—Not later than 3 years 

13 after the date of enactment of the Terrorism Risk 

14 Insurance Program Reauthorization Act of 2014, 

15 the Secretary shall— 

16 ‘‘(i) issue final rules for determining 

17 the amount of the sum described under sub18 paragraph (B)(ii); and 

19 ‘‘(ii) provide a timeline for public no20 tification of such determination.’’; and 

21 (2) in paragraph (7)— 

22 (A) in subparagraph (A)— 

23 (i) in the matter preceding clause (i), 

24 by striking ‘‘for each of the periods referred 
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1 to in subparagraphs (A) through (E) of 

2 paragraph (6)’’; and 

3 (ii) in clause (i), by striking ‘‘for such 

4 period’’; 

5 (B) by striking subparagraph (B) and in6 serting the following: 

7 ‘‘(B) [Reserved.]’’; 

8 (C) in subparagraph (C)— 

9 (i) by striking ‘‘occurring during any 

10 of the periods referred to in any of subpara11 graphs (A) through (E) of paragraph (6), 

12 terrorism loss risk-spreading premiums in 

13 an amount equal to 133 percent’’ and in14 serting ‘‘, terrorism loss risk-spreading pre15 miums in an amount equal to 140 percent’’; 

16 and 

17 (ii) by inserting ‘‘as calculated under 

18 subparagraph (A)’’ after ‘‘mandatory 

19 recoupment amount’’; and 

20 (D) in subparagraph (E)(i)— 

21 (i) in subclause (I)— 

22 (I) by striking ‘‘2010’’ and insert23 ing ‘‘2017’’; and 

24 (II) by striking ‘‘2012’’ and in25 serting ‘‘2019’’; 
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1 (ii) in subclause (II)— 

2 (I) by striking ‘‘2011’’ and insert3 ing ‘‘2018’’; 

4 (II) by striking ‘‘2012’’ and in5 serting ‘‘2019’’; and 

6 (III) by striking ‘‘2017’’ and in7 serting ‘‘2024’’; and 

8 (iii) in subclause (III)— 

9 (I) by striking ‘‘2012’’ and insert10 ing ‘‘2019’’; and 

11 (II) by striking ‘‘2017’’ and in12 serting ‘‘2024’’. 

13 SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CON14 SULTATION WITH SECRETARY OF HOMELAND 

15 SECURITY. 

16 (a) IN GENERAL.—Paragraph (1)(A) of section 102 

17 (15 U.S.C. 6701 note) is amended in the matter preceding 

18 clause (i), by striking ‘‘concurrence with the Secretary of 

19 State’’ and inserting ‘‘consultation with the Secretary of 

20 Homeland Security’’. 

21 (b) EFFECTIVE DATE.—The amendment made by sub22 section (a) shall take effect on January 1, 2015. 

23 SEC. 106. TECHNICAL AMENDMENTS. 

24 The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 

25 6701 note) is amended— 
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1 (1) in section 102— 

2 (A) in paragraph (3)— 

3 (i) by redesignating subparagraphs 

4 (A), (B), and (C) as clauses (i), (ii), and 

5 (iii), respectively; 

6 (ii) in the matter preceding clause (i) 

7 (as so redesignated), by striking ‘‘An entity 

8 has’’ and inserting the following: 

9 ‘‘(A) IN GENERAL.—An entity has’’; and 

10 (iii) by adding at the end the following 

11 new subparagraph: 

12 ‘‘(B) RULE OF CONSTRUCTION.—An entity, 

13 including any affiliate thereof, does not have 

14 ‘control’ over another entity, if, as of the date of 

15 enactment of the Terrorism Risk Insurance Pro16 gram Reauthorization Act of 2014, the entity is 

17 acting as an attorney-in-fact, as defined by the 

18 Secretary, for the other entity and such other en19 tity is a reciprocal insurer, provided that the en20 tity is not, for reasons other than the attorney21 in-fact relationship, defined as having ‘control’ 

22 under subparagraph (A).’’; 

23 (B) in paragraph (7)— 

24 (i) by striking subparagraphs (A) 

25 through (F) and inserting the following: 
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1 ‘‘(A) the value of an insurer’s direct earned 

2 premiums during the immediately preceding cal3 endar year, multiplied by 20 percent; and’’; 

4 (ii) by redesignating subparagraph (G) 

5 as subparagraph (B); and 

6 (iii) in subparagraph (B), as so redes7 ignated by clause (ii)— 

8 (I) by striking ‘‘notwithstanding 

9 subparagraphs (A) through (F), for the 

10 Transition Period or any Program 

11 Year’’ and inserting ‘‘notwithstanding 

12 subparagraph (A), for any calendar 

13 year’’; and 

14 (II) by striking ‘‘Period or Pro15 gram Year’’ and inserting ‘‘calendar 

16 year’’; 

17 (C) by striking paragraph (11); and 

18 (D) by redesignating paragraphs (12) 

19 through (16) as paragraphs (11) through (15), 

20 respectively; and 

21 (2) in section 103— 

22 (A) in subsection (b)(2)— 

23 (i) in subparagraph (B), by striking ‘‘, 

24 purchase,’’; and 
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1 (ii) in subparagraph (C), by striking 

2 ‘‘, purchase,’’; 

3 (B) in subsection (c), by striking ‘‘Program 

4 Year’’ and inserting ‘‘calendar year’’; 

5 (C) in subsection (e)— 

6 (i) in paragraph (1)(A), as previously 

7 amended by section 102— 

8 (I) by striking ‘‘the Transition 

9 Period and each Program Year through 

10 Program Year 4 shall be equal to 90 

11 percent, and during Program Year 5 

12 and each Program Year thereafter’’ 

13 and inserting ‘‘each calendar year’’; 

14 (II) by striking the comma after 

15 ‘‘80 percent’’; and 

16 (III) by striking ‘‘such Transition 

17 Period or such Program Year’’ and in18 serting ‘‘such calendar year’’; and 

19 (ii) in paragraph (2)(A), by striking 

20 ‘‘the period beginning on the first day of the 

21 Transition Period and ending on the last 

22 day of Program Year 1, or during any Pro23 gram Year thereafter’’ and inserting ‘‘a cal24 endar year’’; and 
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1 (iii) in paragraph (3), by striking ‘‘the 

2 period beginning on the first day of the 

3 Transition Period and ending on the last 

4 day of Program Year 1, or during any other 

5 Program Year’’ and inserting ‘‘any cal6 endar year’’; and 

7 (D) in subsection (g)(2)— 

8 (i) by striking ‘‘the Transition Period 

9 or a Program Year’’ each place that term 

10 appears and inserting ‘‘the calendar year’’; 

11 (ii) by striking ‘‘such period’’ and in12 serting ‘‘the calendar year’’; and 

13 (iii) by striking ‘‘that period’’ and in14 serting ‘‘the calendar year’’. 

15 SEC. 107. IMPROVING THE CERTIFICATION PROCESS. 

16 (a) DEFINITIONS.—As used in this section— 

17 (1) the term ‘‘act of terrorism’’ has the same 

18 meaning as in section 102(1) of the Terrorism Risk 

19 Insurance Act of 2002 (15 U.S.C. 6701 note); 

20 (2) the term ‘‘certification process’’ means the 

21 process by which the Secretary determines whether to 

22 certify an act as an act of terrorism under section 

23 102(1) of the Terrorism Risk Insurance Act of 2002 

24 (15 U.S.C. 6701 note); and 
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1 (3) the term ‘‘Secretary’’ means the Secretary of 

2 the Treasury. 

3 (b) STUDY.—Not later than 9 months after the date 

4 of enactment of this Act, the Secretary shall conduct and 

5 complete a study on the certification process. 

6 (c) REQUIRED CONTENT.—The study required under 

7 subsection (a) shall include an examination and analysis 

8 of— 

9 (1) the establishment of a reasonable timeline by 

10 which the Secretary must make an accurate deter11 mination on whether to certify an act as an act of 

12 terrorism; 

13 (2) the impact that the length of any timeline 

14 proposed to be established under paragraph (1) may 

15 have on the insurance industry, policyholders, con16 sumers, and taxpayers as a whole; 

17 (3) the factors the Secretary would evaluate and 

18 monitor during the certification process, including the 

19 ability of the Secretary to obtain the required infor20 mation regarding the amount of projected and in21 curred losses resulting from an act which the Sec22 retary would need in determining whether to certify 

23 the act as an act of terrorism; 

24 (4) the appropriateness, efficiency, and effective25 ness of the consultation process required under section 
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1 102(1)(A) of the Terrorism Risk Insurance Act of 

2 2002 (15 U.S.C. 6701 note) and any recommenda3 tions on changes to the consultation process; and 

4 (5) the ability of the Secretary to provide guid5 ance and updates to the public regarding any act that 

6 may reasonably be certified as an act of terrorism. 

7 (d) REPORT.—Upon completion of the study required 

8 under subsection (a), the Secretary shall submit a report 

9 on the results of such study to the Committee on Banking, 

10 Housing, and Urban Affairs of the Senate and the Com11 mittee on Financial Services of the House of Representa12 tives. 

13 (e) RULEMAKING.—Section 102(1) of the Terrorism 

14 Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amend15 ed— 

16 (1) by redesignating subparagraph (D) as sub17 paragraph (E); and 

18 (2) by inserting after subparagraph (C) the fol19 lowing: 

20 ‘‘(D) TIMING OF CERTIFICATION.—Not later 

21 than 9 months after the report required under 

22 section 107 of the Terrorism Risk Insurance Pro23 gram Reauthorization Act of 2014 is submitted 

24 to the appropriate committees of Congress, the 

25 Secretary shall issue final rules governing the 
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1 certification process, including establishing a 

2 timeline for which an act is eligible for certifi3 cation by the Secretary on whether an act is an 

4 act of terrorism under this paragraph.’’. 

5 SEC. 108. GAO STUDY. 

6 (a) STUDY.—Not later than 2 years after the date of 

7 enactment of this Act, the Comptroller General of the United 

8 States shall complete a study on the viability and effects 

9 of the Federal Government— 

10 (1) assessing and collecting upfront premiums on 

11 insurers that participate in the Terrorism Insurance 

12 Program established under the Terrorism Risk Insur13 ance Act of 2002 (15 U.S.C. 6701 note) (hereafter in 

14 this section referred to as the ‘‘Program’’), which shall 

15 include a comparison of practices in international 

16 markets to assess and collect premiums either before 

17 or after terrorism losses are incurred; and 

18 (2) creating a capital reserve fund under the 

19 Program and requiring insurers participating in the 

20 Program to dedicate capital specifically for terrorism 

21 losses before such losses are incurred, which shall in22 clude a comparison of practices in international mar23 kets to establish reserve funds. 
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1 (b) REQUIRED CONTENT.—The study required under 

2 subsection (a) shall examine, but shall not be limited to, 

3 the following issues: 

4 (1) UPFRONT PREMIUMS.—With respect to up5 front premiums described in subsection (a)(1)— 

6 (A) how the Federal Government could de7 termine the price of such upfront premiums on 

8 insurers that participate in the Program; 

9 (B) how the Federal Government could col10 lect and manage such upfront premiums; 

11 (C) how the Federal Government could en12 sure that such upfront premiums are not spent 

13 for purposes other than claims through the Pro14 gram; 

15 (D) how the assessment and collection of 

16 such upfront premiums could affect take-up rates 

17 for terrorism risk coverage in different regions 

18 and industries and how it could impact small 

19 businesses and consumers in both metropolitan 

20 and non-metropolitan areas; 

21 (E) the effect of collecting such upfront pre22 miums on insurers both large and small; 

23 (F) the effect of collecting such upfront pre24 miums on the private market for terrorism risk 

25 reinsurance; and 
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1 (G) the size of any Federal Government sub2 sidy insurers may receive through their partici3 pation in the Program, taking into account the 

4 Program’s current post-event recoupment struc5 ture. 

6 (2) CAPITAL RESERVE FUND.—With respect to 

7 the capital reserve fund described in subsection 

8 (a)(2)— 

9 (A) how the creation of a capital reserve 

10 fund would affect the Federal Government’s fis11 cal exposure under the Terrorism Risk Insurance 

12 Program and the ability of the Program to meet 

13 its statutory purposes; 

14 (B) how a capital reserve fund would im15 pact insurers and reinsurers, including liquid16 ity, insurance pricing, and capacity to provide 

17 terrorism risk coverage; 

18 (C) the feasibility of segregating funds at19 tributable to terrorism risk from funds attrib20 utable to other insurance lines; 

21 (D) how a capital reserve fund would be 

22 viewed and treated under current Financial Ac23 counting Standards Board accounting rules and 

24 the tax laws; and 
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1 (E) how a capital reserve fund would affect 

2 the States’ ability to regulate insurers partici3 pating in the Program. 

4 (3) INTERNATIONAL PRACTICES.—With respect to 

5 international markets referred to in paragraphs (1) 

6 and (2) of subsection (a), how other countries, if 

7 any— 

8 (A) have established terrorism insurance 

9 structures; 

10 (B) charge premiums or otherwise collect 

11 funds to pay for the costs of terrorism insurance 

12 structures, including risk and administrative 

13 costs; and 

14 (C) have established capital reserve funds to 

15 pay for the costs of terrorism insurance struc16 tures. 

17 (c) REPORT.—Upon completion of the study required 

18 under subsection (a), the Comptroller General shall submit 

19 a report on the results of such study to the Committee on 

20 Banking, Housing, and Urban Affairs of the Senate and 

21 the Committee on Financial Services of the House of Rep22 resentatives. 

23 (d) PUBLIC AVAILABILITY.—The study and report re24 quired under this section shall be made available to the pub-
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1 lic in electronic form and shall be published on the website 

2 of the Government Accountability Office. 

3 SEC. 109. MEMBERSHIP OF BOARD OF GOVERNORS OF THE 

4 FEDERAL RESERVE SYSTEM. 

5 (a) IN GENERAL.—The first undesignated paragraph 

6 of section 10 of the Federal Reserve Act (12 U.S.C. 241) 

7 is amended by inserting after the second sentence the fol8 lowing: ‘‘In selecting members of the Board, the President 

9 shall appoint at least 1 member with demonstrated primary 

10 experience working in or supervising community banks 

11 having less than $10,000,000,000 in total assets.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by this 

13 section shall take effect on the date of enactment of this Act 

14 and apply to appointments made on and after that effective 

15 date, excluding any nomination pending in the Senate on 

16 that date. 

17 SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECHA18 NISMS. 

19 (a) FINDING; RULE OF CONSTRUCTION.— 

20 (1) FINDING.—Congress finds that it is desirable 

21 to encourage the growth of nongovernmental, private 

22 market reinsurance capacity for protection against 

23 losses arising from acts of terrorism. 

24 (2) RULE OF CONSTRUCTION.—Nothing in this 

25 Act, any amendment made by this Act, or the Ter-
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1 rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 

2 note) shall prohibit insurers from developing risk3 sharing mechanisms to voluntarily reinsure terrorism 

4 losses between and among themselves. 

5 (b) ADVISORY COMMITTEE ON RISK-SHARING MECHA6 NISMS.— 

7 (1) ESTABLISHMENT.—The Secretary of the 

8 Treasury shall establish and appoint an advisory 

9 committee to be known as the ‘‘Advisory Committee 

10 on Risk-Sharing Mechanisms’’ (referred to in this 

11 subsection as the ‘‘Advisory Committee’’). 

12 (2) DUTIES.—The Advisory Committee shall pro13 vide advice, recommendations, and encouragement 

14 with respect to the creation and development of the 

15 nongovernmental risk-sharing mechanisms described 

16 under subsection (a). 

17 (3) MEMBERSHIP.—The Advisory Committee 

18 shall be composed of 9 members who are directors, of19 ficers, or other employees of insurers, reinsurers, or 

20 capital market participants that are participating or 

21 that desire to participate in the nongovernmental 

22 risk-sharing mechanisms described under subsection 

23 (a), and who are representative of the affected sectors 

24 of the insurance industry, including commercial 
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1 property insurance, commercial casualty insurance, 

2 reinsurance, and alternative risk transfer industries. 

3 (c) EFFECTIVE DATE.—The provisions of this section 

4 shall take effect on January 1, 2015. 

5 SEC. 111. REPORTING OF TERRORISM INSURANCE DATA. 

6 Section 104 (15 U.S.C. 6701 note) is amended by add7 ing at the end the following new subsection: 

8 ‘‘(h) REPORTING OF TERRORISM INSURANCE DATA.— 

9 ‘‘(1) AUTHORITY.—During the calendar year be10 ginning on January 1, 2016, and in each calendar 

11 year thereafter, the Secretary shall require insurers 

12 participating in the Program to submit to the Sec13 retary such information regarding insurance coverage 

14 for terrorism losses of such insurers as the Secretary 

15 considers appropriate to analyze the effectiveness of 

16 the Program, which shall include information regard17 ing— 

18 ‘‘(A) lines of insurance with exposure to 

19 such losses; 

20 ‘‘(B) premiums earned on such coverage; 

21 ‘‘(C) geographical location of exposures; 

22 ‘‘(D) pricing of such coverage; 

23 ‘‘(E) the take-up rate for such coverage; 

24 ‘‘(F) the amount of private reinsurance for 

25 acts of terrorism purchased; and 
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1 ‘‘(G) such other matters as the Secretary 

2 considers appropriate. 

3 ‘‘(2) REPORTS.—Not later than June 30, 2016, 

4 and every other June 30 thereafter, the Secretary 

5 shall submit a report to the Committee on Financial 

6 Services of the House of Representatives and the Com7 mittee on Banking, Housing, and Urban Affairs of 

8 the Senate that includes— 

9 ‘‘(A) an analysis of the overall effectiveness 

10 of the Program; 

11 ‘‘(B) an evaluation of any changes or trends 

12 in the data collected under paragraph (1); 

13 ‘‘(C) an evaluation of whether any aspects 

14 of the Program have the effect of discouraging or 

15 impeding insurers from providing commercial 

16 property casualty insurance coverage or coverage 

17 for acts of terrorism; 

18 ‘‘(D) an evaluation of the impact of the 

19 Program on workers’ compensation insurers; and 

20 ‘‘(E) in the case of the data reported in 

21 paragraph (1)(B), an updated estimate of the 

22 total amount earned since January 1, 2003. 

23 ‘‘(3) PROTECTION OF DATA.—To the extent pos24 sible, the Secretary shall contract with an insurance 

25 statistical aggregator to collect the information de-
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1 scribed in paragraph (1), which shall keep any non2 public information confidential and provide it to the 

3 Secretary in an aggregate form or in such other form 

4 or manner that does not permit identification of the 

5 insurer submitting such information. 

6 ‘‘(4) ADVANCE COORDINATION.—Before collecting 

7 any data or information under paragraph (1) from 

8 an insurer, or affiliate of an insurer, the Secretary 

9 shall coordinate with the appropriate State insurance 

10 regulatory authorities and any relevant government 

11 agency or publicly available sources to determine if 

12 the information to be collected is available from, and 

13 may be obtained in a timely manner by, individually 

14 or collectively, such entities. If the Secretary deter15 mines that such data or information is available, and 

16 may be obtained in a timely matter, from such enti17 ties, the Secretary shall obtain the data or informa18 tion from such entities. If the Secretary determines 

19 that such data or information is not so available, the 

20 Secretary may collect such data or information from 

21 an insurer and affiliates. 

22 ‘‘(5) CONFIDENTIALITY.— 

23 ‘‘(A) RETENTION OF PRIVILEGE.—The sub24 mission of any non-publicly available data and 

25 information to the Secretary and the sharing of 
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1 any non-publicly available data with or by the 

2 Secretary among other Federal agencies, the 

3 State insurance regulatory authorities, or any 

4 other entities under this subsection shall not con5 stitute a waiver of, or otherwise affect, any 

6 privilege arising under Federal or State law (in7 cluding the rules of any Federal or State court) 

8 to which the data or information is otherwise 

9 subject. 

10 ‘‘(B) CONTINUED APPLICATION OF PRIOR

11 CONFIDENTIALITY AGREEMENTS.—Any require12 ment under Federal or State law to the extent 

13 otherwise applicable, or any requirement pursu14 ant to a written agreement in effect between the 

15 original source of any non-publicly available 

16 data or information and the source of such data 

17 or information to the Secretary, regarding the 

18 privacy or confidentiality of any data or infor19 mation in the possession of the source to the Sec20 retary, shall continue to apply to such data or 

21 information after the data or information has 

22 been provided pursuant to this subsection. 

23 ‘‘(C) INFORMATION-SHARING AGREEMENT.— 

24 Any data or information obtained by the Sec25 retary under this subsection may be made avail-
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1 able to State insurance regulatory authorities, 

2 individually or collectively through an informa3 tion-sharing agreement that— 

4 ‘‘(i) shall comply with applicable Fed5 eral law; and 

6 ‘‘(ii) shall not constitute a waiver of, 

7 or otherwise affect, any privilege under Fed8 eral or State law (including any privilege 

9 referred to in subparagraph (A) and the 

10 rules of any Federal or State court) to 

11 which the data or information is otherwise 

12 subject. 

13 ‘‘(D) AGENCY DISCLOSURE REQUIRE14 MENTS.—Section 552 of title 5, United States 

15 Code, including any exceptions thereunder, shall 

16 apply to any data or information submitted 

17 under this subsection to the Secretary by an in18 surer or affiliate of an insurer.’’. 

19 SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET 

20 COMPETITIVENESS. 

21 Section 108 (15 U.S.C. 6701 note) is amended by add22 ing at the end the following new subsection: 

23 ‘‘(h) STUDY OF SMALL INSURER MARKET COMPETI24 TIVENESS.— 
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1 ‘‘(1) IN GENERAL.—Not later than June 30, 

2 2017, and every other June 30 thereafter, the Sec3 retary shall conduct a study of small insurers (as 

4 such term is defined by regulation by the Secretary) 

5 participating in the Program, and identify any com6 petitive challenges small insurers face in the terrorism 

7 risk insurance marketplace, including— 

8 ‘‘(A) changes to the market share, premium 

9 volume, and policyholder surplus of small insur10 ers relative to large insurers; 

11 ‘‘(B) how the property and casualty insur12 ance market for terrorism risk differs between 

13 small and large insurers, and whether such a 

14 difference exists within other perils; 

15 ‘‘(C) the impact of the Program’s manda16 tory availability requirement under section 

17 103(c) on small insurers; 

18 ‘‘(D) the effect of increasing the trigger 

19 amount for the Program under section 

20 103(e)(1)(B) on small insurers; 

21 ‘‘(E) the availability and cost of private re22 insurance for small insurers; and 

23 ‘‘(F) the impact that State workers com24 pensation laws have on small insurers and work-
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1 ers compensation carriers in the terrorism risk 

2 insurance marketplace. 

3 ‘‘(2) REPORT.—The Secretary shall submit a re4 port to the Congress setting forth the findings and 

5 conclusions of each study required under paragraph 

6 (1).’’. 

7 TITLE II—NATIONAL ASSOCIA8 TION OF REGISTERED 

9 AGENTS AND BROKERS RE10 FORM 

11 SEC. 201. SHORT TITLE. 

12 This title may be cited as the ‘‘National Association 

13 of Registered Agents and Brokers Reform Act of 2014’’. 

14 SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIA15 TION OF REGISTERED AGENTS AND BRO16 KERS. 

17 (a) IN GENERAL.—Subtitle C of title III of the 

18 Gramm-Leach-Bliley Act (15 U.S.C. 6751 et seq.) is amend19 ed to read as follows: 
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1 ‘‘Subtitle C—National Association 

2 of Registered Agents and Brokers 

3 ‘‘SEC. 321. NATIONAL ASSOCIATION OF REGISTERED 

4 AGENTS AND BROKERS. 

5 ‘‘(a) ESTABLISHMENT.—There is established the Na6 tional Association of Registered Agents and Brokers (re7 ferred to in this subtitle as the ‘Association’). 

8 ‘‘(b) STATUS.—The Association shall— 

9 ‘‘(1) be a nonprofit corporation; 

10 ‘‘(2) not be an agent or instrumentality of the 

11 Federal Government; 

12 ‘‘(3) be an independent organization that may 

13 not be merged with or into any other private or pub14 lic entity; and 

15 ‘‘(4) except as otherwise provided in this subtitle, 

16 be subject to, and have all the powers conferred upon, 

17 a nonprofit corporation by the District of Columbia 

18 Nonprofit Corporation Act (D.C. Code, sec. 29–301.01 

19 et seq.) or any successor thereto. 

20 ‘‘SEC. 322. PURPOSE. 

21 ‘‘The purpose of the Association shall be to provide a 

22 mechanism through which licensing, continuing education, 

23 and other nonresident insurance producer qualification re24 quirements and conditions may be adopted and applied on 

25 a multi-state basis without affecting the laws, rules, and 
28 

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1 regulations, and preserving the rights of a State, pertaining 

2 to— 

3 ‘‘(1) licensing, continuing education, and other 

4 qualification requirements of insurance producers 

5 that are not members of the Association; 

6 ‘‘(2) resident or nonresident insurance producer 

7 appointment requirements; 

8 ‘‘(3) supervising and disciplining resident and 

9 nonresident insurance producers; 

10 ‘‘(4) establishing licensing fees for resident and 

11 nonresident insurance producers so that there is no 

12 loss of insurance producer licensing revenue to the 

13 State; and 

14 ‘‘(5) prescribing and enforcing laws and regula15 tions regulating the conduct of resident and non16 resident insurance producers. 

17 ‘‘SEC. 323. MEMBERSHIP. 

18 ‘‘(a) ELIGIBILITY.— 

19 ‘‘(1) IN GENERAL.—Any insurance producer li20 censed in its home State shall, subject to paragraphs 

21 (2) and (4), be eligible to become a member of the As22 sociation. 

23 ‘‘(2) INELIGIBILITY FOR SUSPENSION OR REV24 OCATION OF LICENSE.—Subject to paragraph (3), an 

25 insurance producer is not eligible to become a member 
29 

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1 of the Association if a State insurance regulator has 

2 suspended or revoked the insurance license of the in3 surance producer in that State. 

4 ‘‘(3) RESUMPTION OF ELIGIBILITY.—Paragraph 

5 (2) shall cease to apply to any insurance producer 

6 if— 

7 ‘‘(A) the State insurance regulator reissues 

8 or renews the license of the insurance producer 

9 in the State in which the license was suspended 

10 or revoked, or otherwise terminates or vacates the 

11 suspension or revocation; or 

12 ‘‘(B) the suspension or revocation expires or 

13 is subsequently overturned by a court of com14 petent jurisdiction. 

15 ‘‘(4) CRIMINAL HISTORY RECORD CHECK RE16 QUIRED.— 

17 ‘‘(A) IN GENERAL.—An insurance producer 

18 who is an individual shall not be eligible to be19 come a member of the Association unless the in20 surance producer has undergone a criminal his21 tory record check that complies with regulations 

22 prescribed by the Attorney General of the United 

23 States under subparagraph (K). 

24 ‘‘(B) CRIMINAL HISTORY RECORD CHECK

25 REQUESTED BY HOME STATE.—An insurance 
30 

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1 producer who is licensed in a State and who has 

2 undergone a criminal history record check dur3 ing the 2-year period preceding the date of sub4 mission of an application to become a member of 

5 the Association, in compliance with a require6 ment to undergo such criminal history record 

7 check as a condition for such licensure in the 

8 State, shall be deemed to have undergone a 

9 criminal history record check for purposes of 

10 subparagraph (A). 

11 ‘‘(C) CRIMINAL HISTORY RECORD CHECK

12 REQUESTED BY ASSOCIATION.— 

13 ‘‘(i) IN GENERAL.—The Association 

14 shall, upon request by an insurance pro15 ducer licensed in a State, submit finger16 prints or other identification information 

17 obtained from the insurance producer, and 

18 a request for a criminal history record check 

19 of the insurance producer, to the Federal 

20 Bureau of Investigation. 

21 ‘‘(ii) PROCEDURES.—The board of di22 rectors of the Association (referred to in this 

23 subtitle as the ‘Board’) shall prescribe pro24 cedures for obtaining and utilizing finger25 prints or other identification information 
31 

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1 and criminal history record information, 

2 including the establishment of reasonable 

3 fees to defray the expenses of the Association 

4 in connection with the performance of a 

5 criminal history record check and appro6 priate safeguards for maintaining confiden7 tiality and security of the information. Any 

8 fees charged pursuant to this clause shall be 

9 separate and distinct from those charged by 

10 the Attorney General pursuant to subpara11 graph (I). 

12 ‘‘(D) FORM OF REQUEST.—A submission 

13 under subparagraph (C)(i) shall include such 

14 fingerprints or other identification information 

15 as is required by the Attorney General con16 cerning the person about whom the criminal his17 tory record check is requested, and a statement 

18 signed by the person authorizing the Attorney 

19 General to provide the information to the Asso20 ciation and for the Association to receive the in21 formation. 

22 ‘‘(E) PROVISION OF INFORMATION BY AT23 TORNEY GENERAL.—Upon receiving a submis24 sion under subparagraph (C)(i) from the Asso25 ciation, the Attorney General shall search all 
32 

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1 criminal history records of the Federal Bureau of 

2 Investigation, including records of the Criminal 

3 Justice Information Services Division of the Fed4 eral Bureau of Investigation, that the Attorney 

5 General determines appropriate for criminal his6 tory records corresponding to the fingerprints or 

7 other identification information provided under 

8 subparagraph (D) and provide all criminal his9 tory record information included in the request 

10 to the Association. 

11 ‘‘(F) LIMITATION ON PERMISSIBLE USES OF

12 INFORMATION.—Any information provided to the 

13 Association under subparagraph (E) may only— 

14 ‘‘(i) be used for purposes of deter15 mining compliance with membership cri16 teria established by the Association; 

17 ‘‘(ii) be disclosed to State insurance 

18 regulators, or Federal or State law enforce19 ment agencies, in conformance with appli20 cable law; or 

21 ‘‘(iii) be disclosed, upon request, to the 

22 insurance producer to whom the criminal 

23 history record information relates. 

24 ‘‘(G) PENALTY FOR IMPROPER USE OR DIS25 CLOSURE.—Whoever knowingly uses any infor-
33 

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1 mation provided under subparagraph (E) for a 

2 purpose not authorized in subparagraph (F), or 

3 discloses any such information to anyone not au4 thorized to receive it, shall be fined not more 

5 than $50,000 per violation as determined by a 

6 court of competent jurisdiction. 

7 ‘‘(H) RELIANCE ON INFORMATION.—Neither 

8 the Association nor any of its Board members, 

9 officers, or employees shall be liable in any ac10 tion for using information provided under sub11 paragraph (E) as permitted under subparagraph 

12 (F) in good faith and in reasonable reliance on 

13 its accuracy. 

14 ‘‘(I) FEES.—The Attorney General may 

15 charge a reasonable fee for conducting the search 

16 and providing the information under subpara17 graph (E), and any such fee shall be collected 

18 and remitted by the Association to the Attorney 

19 General. 

20 ‘‘(J) RULE OF CONSTRUCTION.—Nothing in 

21 this paragraph shall be construed as— 

22 ‘‘(i) requiring a State insurance regu23 lator to perform criminal history record 

24 checks under this section; or 
34 

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1 ‘‘(ii) limiting any other authority that 

2 allows access to criminal history records. 

3 ‘‘(K) REGULATIONS.—The Attorney General 

4 shall prescribe regulations to carry out this 

5 paragraph, which shall include— 

6 ‘‘(i) appropriate protections for ensur7 ing the confidentiality of information pro8 vided under subparagraph (E); and 

9 ‘‘(ii) procedures providing a reasonable 

10 opportunity for an insurance producer to 

11 contest the accuracy of information regard12 ing the insurance producer provided under 

13 subparagraph (E). 

14 ‘‘(L) INELIGIBILITY FOR MEMBERSHIP.— 

15 ‘‘(i) IN GENERAL.—The Association 

16 may, under reasonably consistently applied 

17 standards, deny membership to an insur18 ance producer on the basis of criminal his19 tory record information provided under sub20 paragraph (E), or where the insurance pro21 ducer has been subject to disciplinary ac22 tion, as described in paragraph (2). 

23 ‘‘(ii) RIGHTS OF APPLICANTS DENIED

24 MEMBERSHIP.—The Association shall notify 

25 any insurance producer who is denied mem-
35 

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1 bership on the basis of criminal history 

2 record information provided under subpara3 graph (E) of the right of the insurance pro4 ducer to— 

5 ‘‘(I) obtain a copy of all criminal 

6 history record information provided to 

7 the Association under subparagraph 

8 (E) with respect to the insurance pro9 ducer; and 

10 ‘‘(II) challenge the denial of mem11 bership based on the accuracy and 

12 completeness of the information. 

13 ‘‘(M) DEFINITION.—For purposes of this 

14 paragraph, the term ‘criminal history record 

15 check’ means a national background check of 

16 criminal history records of the Federal Bureau of 

17 Investigation. 

18 ‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI19 TERIA.—The Association may establish membership criteria 

20 that bear a reasonable relationship to the purposes for 

21 which the Association was established. 

22 ‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES

23 OF MEMBERSHIP.— 

24 ‘‘(1) CLASSES OF MEMBERSHIP.—The Associa25 tion may establish separate classes of membership, 
36 

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1 with separate criteria, if the Association reasonably 

2 determines that performance of different duties re3 quires different levels of education, training, experi4 ence, or other qualifications. 

5 ‘‘(2) BUSINESS ENTITIES.—The Association shall 

6 establish a class of membership and membership cri7 teria for business entities. A business entity that ap8 plies for membership shall be required to designate an 

9 individual Association member responsible for the 

10 compliance of the business entity with Association 

11 standards and the insurance laws, standards, and 

12 regulations of any State in which the business entity 

13 seeks to do business on the basis of Association mem14 bership. 

15 ‘‘(3) CATEGORIES.— 

16 ‘‘(A) SEPARATE CATEGORIES FOR INSUR17 ANCE PRODUCERS PERMITTED.—The Association 

18 may establish separate categories of membership 

19 for insurance producers and for other persons or 

20 entities within each class, based on the types of 

21 licensing categories that exist under State laws. 

22 ‘‘(B) SEPARATE TREATMENT FOR DEPOSI23 TORY INSTITUTIONS PROHIBITED.—No special 

24 categories of membership, and no distinct mem25 bership criteria, shall be established for members 
37 

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1 that are depository institutions or for employees, 

2 agents, or affiliates of depository institutions. 

3 ‘‘(d) MEMBERSHIP CRITERIA.— 

4 ‘‘(1) IN GENERAL.—The Association may estab5 lish criteria for membership which shall include 

6 standards for personal qualifications, education, 

7 training, and experience. The Association shall not es8 tablish criteria that unfairly limit the ability of a 

9 small insurance producer to become a member of the 

10 Association, including imposing discriminatory mem11 bership fees. 

12 ‘‘(2) QUALIFICATIONS.—In establishing criteria 

13 under paragraph (1), the Association shall not adopt 

14 any qualification less protective to the public than 

15 that contained in the National Association of Insur16 ance Commissioners (referred to in this subtitle as the 

17 ‘NAIC’) Producer Licensing Model Act in effect as of 

18 the date of enactment of the National Association of 

19 Registered Agents and Brokers Reform Act of 2014, 

20 and shall consider the highest levels of insurance pro21 ducer qualifications established under the licensing 

22 laws of the States. 

23 ‘‘(3) ASSISTANCE FROM STATES.— 

24 ‘‘(A) IN GENERAL.—The Association may 

25 request a State to provide assistance in inves-
38 

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1 tigating and evaluating the eligibility of a pro2 spective member for membership in the Associa3 tion. 

4 ‘‘(B) AUTHORIZATION OF INFORMATION

5 SHARING.—A submission under subsection 

6 (a)(4)(C)(i) made by an insurance producer li7 censed in a State shall include a statement 

8 signed by the person about whom the assistance 

9 is requested authorizing— 

10 ‘‘(i) the State to share information 

11 with the Association; and 

12 ‘‘(ii) the Association to receive the in13 formation. 

14 ‘‘(C) RULE OF CONSTRUCTION.—Subpara15 graph (A) shall not be construed as requiring or 

16 authorizing any State to adopt new or addi17 tional requirements concerning the licensing or 

18 evaluation of insurance producers. 

19 ‘‘(4) DENIAL OF MEMBERSHIP.—The Association 

20 may, based on reasonably consistently applied stand21 ards, deny membership to any State-licensed insur22 ance producer for failure to meet the membership cri23 teria established by the Association. 

24 ‘‘(e) EFFECT OF MEMBERSHIP.— 
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1 ‘‘(1) AUTHORITY OF ASSOCIATION MEMBERS.— 

2 Membership in the Association shall— 

3 ‘‘(A) authorize an insurance producer to 

4 sell, solicit, or negotiate insurance in any State 

5 for which the member pays the licensing fee set 

6 by the State for any line or lines of insurance 

7 specified in the home State license of the insur8 ance producer, and exercise all such incidental 

9 powers as shall be necessary to carry out such 

10 activities, including claims adjustments and set11 tlement to the extent permissible under the laws 

12 of the State, risk management, employee benefits 

13 advice, retirement planning, and any other in14 surance-related consulting activities; 

15 ‘‘(B) be the equivalent of a nonresident in16 surance producer license for purposes of author17 izing the insurance producer to engage in the ac18 tivities described in subparagraph (A) in any 

19 State where the member pays the licensing fee; 

20 and 

21 ‘‘(C) be the equivalent of a nonresident in22 surance producer license for the purpose of sub23 jecting an insurance producer to all laws, regu24 lations, provisions or other action of any State 

25 concerning revocation, suspension, or other en-
40 

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1 forcement action related to the ability of a mem2 ber to engage in any activity within the scope of 

3 authority granted under this subsection and to 

4 all State laws, regulations, provisions, and ac5 tions preserved under paragraph (5). 

6 ‘‘(2) VIOLENT CRIME CONTROL AND LAW EN7 FORCEMENT ACT OF 1994.—Nothing in this subtitle 

8 shall be construed to alter, modify, or supercede any 

9 requirement established by section 1033 of title 18, 

10 United States Code. 

11 ‘‘(3) AGENT FOR REMITTING FEES.—The Asso12 ciation shall act as an agent for any member for pur13 poses of remitting licensing fees to any State pursu14 ant to paragraph (1). 

15 ‘‘(4) NOTIFICATION OF ACTION.— 

16 ‘‘(A) IN GENERAL.—The Association shall 

17 notify the States (including State insurance reg18 ulators) and the NAIC when an insurance pro19 ducer has satisfied the membership criteria of 

20 this section. The States (including State insur21 ance regulators) shall have 10 business days after 

22 the date of the notification in order to provide 

23 the Association with evidence that the insurance 

24 producer does not satisfy the criteria for mem25 bership in the Association. 
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1 ‘‘(B) ONGOING DISCLOSURES REQUIRED.— 

2 On an ongoing basis, the Association shall dis3 close to the States (including State insurance 

4 regulators) and the NAIC a list of the States in 

5 which each member is authorized to operate. The 

6 Association shall immediately notify the States 

7 (including State insurance regulators) and the 

8 NAIC when a member is newly authorized to op9 erate in one or more States, or is no longer au10 thorized to operate in one or more States on the 

11 basis of Association membership. 

12 ‘‘(5) PRESERVATION OF CONSUMER PROTECTION

13 AND MARKET CONDUCT REGULATION.— 

14 ‘‘(A) IN GENERAL.—No provision of this 

15 section shall be construed as altering or affecting 

16 the applicability or continuing effectiveness of 

17 any law, regulation, provision, or other action of 

18 any State, including those described in subpara19 graph (B), to the extent that the State law, regu20 lation, provision, or other action is not incon21 sistent with the provisions of this subtitle related 

22 to market entry for nonresident insurance pro23 ducers, and then only to the extent of the incon24 sistency. 
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1 ‘‘(B) PRESERVED REGULATIONS.—The laws, 

2 regulations, provisions, or other actions of any 

3 State referred to in subparagraph (A) include 

4 laws, regulations, provisions, or other actions 

5 that— 

6 ‘‘(i) regulate market conduct, insur7 ance producer conduct, or unfair trade 

8 practices; 

9 ‘‘(ii) establish consumer protections; or 

10 ‘‘(iii) require insurance producers to be 

11 appointed by a licensed or authorized in12 surer. 

13 ‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso14 ciation shall be renewed on a biennial basis. 

15 ‘‘(g) CONTINUING EDUCATION.— 

16 ‘‘(1) IN GENERAL.—The Association shall estab17 lish, as a condition of membership, continuing edu18 cation requirements which shall be comparable to the 

19 continuing education requirements under the licens20 ing laws of a majority of the States. 

21 ‘‘(2) STATE CONTINUING EDUCATION REQUIRE22 MENTS.—A member may not be required to satisfy 

23 continuing education requirements imposed under the 

24 laws, regulations, provisions, or actions of any State 

25 other than the home State of the member. 
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1 ‘‘(3) RECIPROCITY.—The Association shall not 

2 require a member to satisfy continuing education re3 quirements that are equivalent to any continuing 

4 education requirements of the home State of the mem5 ber that have been satisfied by the member during the 

6 applicable licensing period. 

7 ‘‘(4) LIMITATION ON THE ASSOCIATION.—The As8 sociation shall not directly or indirectly offer any 

9 continuing education courses for insurance producers. 

10 ‘‘(h) PROBATION, SUSPENSION AND REVOCATION.— 

11 ‘‘(1) DISCIPLINARY ACTION.—The Association 

12 may place an insurance producer that is a member 

13 of the Association on probation or suspend or revoke 

14 the membership of the insurance producer in the Asso15 ciation, or assess monetary fines or penalties, as the 

16 Association determines to be appropriate, if— 

17 ‘‘(A) the insurance producer fails to meet 

18 the applicable membership criteria or other 

19 standards established by the Association; 

20 ‘‘(B) the insurance producer has been sub21 ject to disciplinary action pursuant to a final 

22 adjudicatory proceeding under the jurisdiction of 

23 a State insurance regulator; 
44 

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1 ‘‘(C) an insurance license held by the insur2 ance producer has been suspended or revoked by 

3 a State insurance regulator; or 

4 ‘‘(D) the insurance producer has been con5 victed of a crime that would have resulted in the 

6 denial of membership pursuant to subsection 

7 (a)(4)(L)(i) at the time of application, and the 

8 Association has received a copy of the final dis9 position from a court of competent jurisdiction. 

10 ‘‘(2) VIOLATIONS OF ASSOCIATION STANDARDS.— 

11 The Association shall have the power to investigate al12 leged violations of Association standards. 

13 ‘‘(3) REPORTING.—The Association shall imme14 diately notify the States (including State insurance 

15 regulators) and the NAIC when the membership of an 

16 insurance producer has been placed on probation or 

17 has been suspended, revoked, or otherwise terminated, 

18 or when the Association has assessed monetary fines 

19 or penalties. 

20 ‘‘(i) CONSUMER COMPLAINTS.— 

21 ‘‘(1) IN GENERAL.—The Association shall— 

22 ‘‘(A) refer any complaint against a member 

23 of the Association from a consumer relating to 

24 alleged misconduct or violations of State insur25 ance laws to the State insurance regulator where 
45 

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1 the consumer resides and, when appropriate, to 

2 any additional State insurance regulator, as de3 termined by standards adopted by the Associa4 tion; and 

5 ‘‘(B) make any related records and infor6 mation available to each State insurance regu7 lator to whom the complaint is forwarded. 

8 ‘‘(2) TELEPHONE AND OTHER ACCESS.—The As9 sociation shall maintain a toll-free number for pur10 poses of this subsection and, as practicable, other al11 ternative means of communication with consumers, 

12 such as an Internet webpage. 

13 ‘‘(3) FINAL DISPOSITION OF INVESTIGATION.— 

14 State insurance regulators shall provide the Associa15 tion with information regarding the final disposition 

16 of a complaint referred pursuant to paragraph 

17 (1)(A), but nothing shall be construed to compel a 

18 State to release confidential investigation reports or 

19 other information protected by State law to the Asso20 ciation. 

21 ‘‘(j) INFORMATION SHARING.—The Association may— 

22 ‘‘(1) share documents, materials, or other infor23 mation, including confidential and privileged docu24 ments, with a State, Federal, or international govern25 mental entity or with the NAIC or other appropriate 
46 

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1 entity referred to paragraphs (3) and (4), provided 

2 that the recipient has the authority and agrees to 

3 maintain the confidentiality or privileged status of 

4 the document, material, or other information; 

5 ‘‘(2) limit the sharing of information as required 

6 under this subtitle with the NAIC or any other non7 governmental entity, in circumstances under which 

8 the Association determines that the sharing of such 

9 information is unnecessary to further the purposes of 

10 this subtitle; 

11 ‘‘(3) establish a central clearinghouse, or utilize 

12 the NAIC or another appropriate entity, as deter13 mined by the Association, as a central clearinghouse, 

14 for use by the Association and the States (including 

15 State insurance regulators), through which members 

16 of the Association may disclose their intent to operate 

17 in 1 or more States and pay the licensing fees to the 

18 appropriate States; and 

19 ‘‘(4) establish a database, or utilize the NAIC or 

20 another appropriate entity, as determined by the As21 sociation, as a database, for use by the Association 

22 and the States (including State insurance regulators) 

23 for the collection of regulatory information concerning 

24 the activities of insurance producers. 
47 

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1 ‘‘(k) EFFECTIVE DATE.—The provisions of this section 

2 shall take effect on the later of— 

3 ‘‘(1) the expiration of the 2-year period begin4 ning on the date of enactment of the National Asso5 ciation of Registered Agents and Brokers Reform Act 

6 of 2014; and 

7 ‘‘(2) the date of incorporation of the Association. 

8 ‘‘SEC. 324. BOARD OF DIRECTORS. 

9 ‘‘(a) ESTABLISHMENT.—There is established a board 

10 of directors of the Association, which shall have authority 

11 to govern and supervise all activities of the Association. 

12 ‘‘(b) POWERS.—The Board shall have such of the pow13 ers and authority of the Association as may be specified 

14 in the bylaws of the Association. 

15 ‘‘(c) COMPOSITION.— 

16 ‘‘(1) IN GENERAL.—The Board shall consist of 13 

17 members who shall be appointed by the President, by 

18 and with the advice and consent of the Senate, in ac19 cordance with the procedures established under Senate 

Resolution 116 of the 112 20 th Congress, of whom— 

21 ‘‘(A) 8 shall be State insurance commis22 sioners appointed in the manner provided in 

23 paragraph (2), 1 of whom shall be designated by 

24 the President to serve as the chairperson of the 

25 Board until the Board elects one such State in-
48 

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1 surance commissioner Board member to serve as 

2 the chairperson of the Board; 

3 ‘‘(B) 3 shall have demonstrated expertise 

4 and experience with property and casualty in5 surance producer licensing; and 

6 ‘‘(C) 2 shall have demonstrated expertise 

7 and experience with life or health insurance pro8 ducer licensing. 

9 ‘‘(2) STATE INSURANCE REGULATOR REPRESENT10 ATIVES.— 

11 ‘‘(A) RECOMMENDATIONS.—Before making 

12 any appointments pursuant to paragraph 

13 (1)(A), the President shall request a list of rec14 ommended candidates from the States through 

15 the NAIC, which shall not be binding on the 

16 President. If the NAIC fails to submit a list of 

17 recommendations not later than 15 business days 

18 after the date of the request, the President may 

19 make the requisite appointments without consid20 ering the views of the NAIC. 

21 ‘‘(B) POLITICAL AFFILIATION.—Not more 

22 than 4 Board members appointed under para23 graph (1)(A) shall belong to the same political 

24 party. 
49 

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1 ‘‘(C) FORMER STATE INSURANCE COMMIS2 SIONERS.— 

3 ‘‘(i) IN GENERAL.—If, after offering 

4 each currently serving State insurance com5 missioner an appointment to the Board, 

6 fewer than 8 State insurance commissioners 

7 have accepted appointment to the Board, 

8 the President may appoint the remaining 

9 State insurance commissioner Board mem10 bers, as required under paragraph (1)(A), of 

11 the appropriate political party as required 

12 under subparagraph (B), from among indi13 viduals who are former State insurance 

14 commissioners. 

15 ‘‘(ii) LIMITATION.—A former State in16 surance commissioner appointed as de17 scribed in clause (i) may not be employed 

18 by or have any present direct or indirect fi19 nancial interest in any insurer, insurance 

20 producer, or other entity in the insurance 

21 industry, other than direct or indirect own22 ership of, or beneficial interest in, an insur23 ance policy or annuity contract written or 

24 sold by an insurer. 
50 

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1 ‘‘(D) SERVICE THROUGH TERM.—If a 

2 Board member appointed under paragraph 

3 (1)(A) ceases to be a State insurance commis4 sioner during the term of the Board member, the 

5 Board member shall cease to be a Board member. 

6 ‘‘(3) PRIVATE SECTOR REPRESENTATIVES.—In 

7 making any appointment pursuant to subparagraph 

8 (B) or (C) of paragraph (1), the President may seek 

9 recommendations for candidates from groups rep10 resenting the category of individuals described, which 

11 shall not be binding on the President. 

12 ‘‘(4) STATE INSURANCE COMMISSIONER DE13 FINED.—For purposes of this subsection, the term 

14 ‘State insurance commissioner’ means a person who 

15 serves in the position in State government, or on the 

16 board, commission, or other body that is the primary 

17 insurance regulatory authority for the State. 

18 ‘‘(d) TERMS.— 

19 ‘‘(1) IN GENERAL.—Except as provided under 

20 paragraph (2), the term of service for each Board 

21 member shall be 2 years. 

22 ‘‘(2) EXCEPTIONS.— 

23 ‘‘(A) 1-YEAR TERMS.—The term of service 

24 shall be 1 year, as designated by the President 
51 

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1 at the time of the nomination of the subject 

2 Board members for— 

3 ‘‘(i) 4 of the State insurance commis4 sioner Board members initially appointed 

5 under paragraph (1)(A), of whom not more 

6 than 2 shall belong to the same political 

7 party; 

8 ‘‘(ii) 1 of the Board members initially 

9 appointed under paragraph (1)(B); and 

10 ‘‘(iii) 1 of the Board members initially 

11 appointed under paragraph (1)(C). 

12 ‘‘(B) EXPIRATION OF TERM.—A Board 

13 member may continue to serve after the expira14 tion of the term to which the Board member was 

15 appointed for the earlier of 2 years or until a 

16 successor is appointed. 

17 ‘‘(C) MID-TERM APPOINTMENTS.—A Board 

18 member appointed to fill a vacancy occurring be19 fore the expiration of the term for which the 

20 predecessor of the Board member was appointed 

21 shall be appointed only for the remainder of that 

22 term. 

23 ‘‘(3) SUCCESSIVE TERMS.—Board members may 

24 be reappointed to successive terms. 
52 

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1 ‘‘(e) INITIAL APPOINTMENTS.—The appointment of 

2 initial Board members shall be made no later than 90 days 

3 after the date of enactment of the National Association of 

4 Registered Agents and Brokers Reform Act of 2014. 

5 ‘‘(f) MEETINGS.— 

6 ‘‘(1) IN GENERAL.—The Board shall meet— 

7 ‘‘(A) at the call of the chairperson; 

8 ‘‘(B) as requested in writing to the chair9 person by not fewer than 5 Board members; or 

10 ‘‘(C) as otherwise provided by the bylaws of 

11 the Association. 

12 ‘‘(2) QUORUM REQUIRED.—A majority of all 

13 Board members shall constitute a quorum. 

14 ‘‘(3) VOTING.—Decisions of the Board shall re15 quire the approval of a majority of all Board mem16 bers present at a meeting, a quorum being present. 

17 ‘‘(4) INITIAL MEETING.—The Board shall hold 

18 its first meeting not later than 45 days after the date 

19 on which all initial Board members have been ap20 pointed. 

21 ‘‘(g) RESTRICTION ON CONFIDENTIAL INFORMATION.— 

22 Board members appointed pursuant to subparagraphs (B) 

23 and (C) of subsection (c)(1) shall not have access to con24 fidential information received by the Association in connec-
53 

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1 tion with complaints, investigations, or disciplinary pro2 ceedings involving insurance producers. 

3 ‘‘(h) ETHICS AND CONFLICTS OF INTEREST.—The 

4 Board shall issue and enforce an ethical conduct code to 

5 address permissible and prohibited activities of Board 

6 members and Association officers, employees, agents, or con7 sultants. The code shall, at a minimum, include provisions 

8 that prohibit any Board member or Association officer, em9 ployee, agent or consultant from— 

10 ‘‘(1) engaging in unethical conduct in the course 

11 of performing Association duties; 

12 ‘‘(2) participating in the making or influencing 

13 the making of any Association decision, the outcome 

14 of which the Board member, officer, employee, agent, 

15 or consultant knows or had reason to know would 

16 have a reasonably foreseeable material financial effect, 

17 distinguishable from its effect on the public generally, 

18 on the person or a member of the immediate family 

19 of the person; 

20 ‘‘(3) accepting any gift from any person or enti21 ty other than the Association that is given because of 

22 the position held by the person in the Association; 

23 ‘‘(4) making political contributions to any per24 son or entity on behalf of the Association; and 
54 

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1 ‘‘(5) lobbying or paying a person to lobby on be2 half of the Association. 

3 ‘‘(i) COMPENSATION.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), no Board member may receive any com6 pensation from the Association or any other person or 

7 entity on account of Board membership. 

8 ‘‘(2) TRAVEL EXPENSES AND PER DIEM.—Board 

9 members may be reimbursed only by the Association 

10 for travel expenses, including per diem in lieu of sub11 sistence, at rates consistent with rates authorized for 

12 employees of Federal agencies under subchapter I of 

13 chapter 57 of title 5, United States Code, while away 

14 from home or regular places of business in perform15 ance of services for the Association. 

16 ‘‘SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY AC17 TIONS. 

18 ‘‘(a) ADOPTION AND AMENDMENT OF BYLAWS AND

19 STANDARDS.— 

20 ‘‘(1) PROCEDURES.—The Association shall adopt 

21 procedures for the adoption of bylaws and standards 

22 that are similar to procedures under subchapter II of 

23 chapter 5 of title 5, United States Code (commonly 

24 known as the ‘Administrative Procedure Act’). 
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1 ‘‘(2) COPY REQUIRED TO BE FILED.—The Board 

2 shall submit to the President, through the Department 

3 of the Treasury, and the States (including State in4 surance regulators), and shall publish on the website 

5 of the Association, all proposed bylaws and standards 

6 of the Association, or any proposed amendment to the 

7 bylaws or standards of the Association, accompanied 

8 by a concise general statement of the basis and pur9 pose of such proposal. 

10 ‘‘(3) EFFECTIVE DATE.—Any proposed bylaw or 

11 standard of the Association, and any proposed 

12 amendment to the bylaws or standards of the Associa13 tion, shall take effect, after notice under paragraph 

14 (2) and opportunity for public comment, on such date 

15 as the Association may designate, unless suspended 

16 under section 329(c). 

17 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 

18 section shall be construed to subject the Board or the 

19 Association to the requirements of subchapter II of 

20 chapter 5 of title 5, United States Code (commonly 

21 known as the ‘Administrative Procedure Act’). 

22 ‘‘(b) DISCIPLINARY ACTION BY THE ASSOCIATION.— 

23 ‘‘(1) SPECIFICATION OF CHARGES.—In any pro24 ceeding to determine whether membership shall be de25 nied, suspended, revoked, or not renewed, or to deter-
56 

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1 mine whether a member of the Association should be 

2 placed on probation (referred to in this section as a 

3 ‘disciplinary action’) or whether to assess fines or 

4 monetary penalties, the Association shall bring spe5 cific charges, notify the member of the charges, give 

6 the member an opportunity to defend against the 

7 charges, and keep a record. 

8 ‘‘(2) SUPPORTING STATEMENT.—A determina9 tion to take disciplinary action shall be supported by 

10 a statement setting forth— 

11 ‘‘(A) any act or practice in which the mem12 ber has been found to have been engaged; 

13 ‘‘(B) the specific provision of this subtitle or 

14 standard of the Association that any such act or 

15 practice is deemed to violate; and 

16 ‘‘(C) the sanction imposed and the reason 

17 for the sanction. 

18 ‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REP19 RESENTATIVES.—Board members appointed pursuant 

20 to section 324(c)(3) may not— 

21 ‘‘(A) participate in any disciplinary action 

22 or be counted toward establishing a quorum dur23 ing a disciplinary action; and 

24 ‘‘(B) have access to confidential information 

25 concerning any disciplinary action. 
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1 ‘‘SEC. 326. POWERS. 

2 ‘‘In addition to all the powers conferred upon a non3 profit corporation by the District of Columbia Nonprofit 

4 Corporation Act, the Association shall have the power to— 

5 ‘‘(1) establish and collect such membership fees 

6 as the Association finds necessary to impose to cover 

7 the costs of its operations; 

8 ‘‘(2) adopt, amend, and repeal bylaws, proce9 dures, or standards governing the conduct of Associa10 tion business and performance of its duties; 

11 ‘‘(3) establish procedures for providing notice 

12 and opportunity for comment pursuant to section 

13 325(a); 

14 ‘‘(4) enter into and perform such agreements as 

15 necessary to carry out the duties of the Association; 

16 ‘‘(5) hire employees, professionals, or specialists, 

17 and elect or appoint officers, and to fix their com18 pensation, define their duties and give them appro19 priate authority to carry out the purposes of this sub20 title, and determine their qualification; 

21 ‘‘(6) establish personnel policies of the Associa22 tion and programs relating to, among other things, 

23 conflicts of interest, rates of compensation, where ap24 plicable, and qualifications of personnel; 

25 ‘‘(7) borrow money; and 
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1 ‘‘(8) secure funding for such amounts as the As2 sociation determines to be necessary and appropriate 

3 to organize and begin operations of the Association, 

4 which shall be treated as loans to be repaid by the As5 sociation with interest at market rate. 

6 ‘‘SEC. 327. REPORT BY THE ASSOCIATION. 

7 ‘‘(a) IN GENERAL.—As soon as practicable after the 

8 close of each fiscal year, the Association shall submit to the 

9 President, through the Department of the Treasury, and the 

10 States (including State insurance regulators), and shall 

11 publish on the website of the Association, a written report 

12 regarding the conduct of its business, and the exercise of 

13 the other rights and powers granted by this subtitle, during 

14 such fiscal year. 

15 ‘‘(b) FINANCIAL STATEMENTS.—Each report submitted 

16 under subsection (a) with respect to any fiscal year shall 

17 include audited financial statements setting forth the finan18 cial position of the Association at the end of such fiscal year 

19 and the results of its operations (including the source and 

20 application of its funds) for such fiscal year. 

21 ‘‘SEC. 328. LIABILITY OF THE ASSOCIATION AND THE 

22 BOARD MEMBERS, OFFICERS, AND EMPLOY23 EES OF THE ASSOCIATION. 

24 ‘‘(a) IN GENERAL.—The Association shall not be 

25 deemed to be an insurer or insurance producer within the 
59 

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1 meaning of any State law, rule, regulation, or order regu2 lating or taxing insurers, insurance producers, or other en3 tities engaged in the business of insurance, including provi4 sions imposing premium taxes, regulating insurer solvency 

5 or financial condition, establishing guaranty funds and lev6 ying assessments, or requiring claims settlement practices. 

7 ‘‘(b) LIABILITY OF BOARD MEMBERS, OFFICERS, AND

8 EMPLOYEES.—No Board member, officer, or employee of the 

9 Association shall be personally liable to any person for any 

10 action taken or omitted in good faith in any matter within 

11 the scope of their responsibilities in connection with the As12 sociation. 

13 ‘‘SEC. 329. PRESIDENTIAL OVERSIGHT. 

14 ‘‘(a) REMOVAL OF BOARD.—If the President deter15 mines that the Association is acting in a manner contrary 

16 to the interests of the public or the purposes of this subtitle 

17 or has failed to perform its duties under this subtitle, the 

18 President may remove the entire existing Board for the re19 mainder of the term to which the Board members were ap20 pointed and appoint, in accordance with section 324 and 

21 with the advice and consent of the Senate, in accordance 

22 with the procedures established under Senate Resolution 

116 of the 112 23 th Congress, new Board members to fill the 

24 vacancies on the Board for the remainder of the terms. 
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1 ‘‘(b) REMOVAL OF BOARD MEMBER.—The President 

2 may remove a Board member only for neglect of duty or 

3 malfeasance in office. 

4 ‘‘(c) SUSPENSION OF BYLAWS AND STANDARDS AND

5 PROHIBITION OF ACTIONS.—Following notice to the Board, 

6 the President, or a person designated by the President for 

7 such purpose, may suspend the effectiveness of any bylaw 

8 or standard, or prohibit any action, of the Association that 

9 the President or the designee determines is contrary to the 

10 purposes of this subtitle. 

11 ‘‘SEC. 330. RELATIONSHIP TO STATE LAW. 

12 ‘‘(a) PREEMPTION OF STATE LAWS.—State laws, regu13 lations, provisions, or other actions purporting to regulate 

14 insurance producers shall be preempted to the extent pro15 vided in subsection (b). 

16 ‘‘(b) PROHIBITED ACTIONS.— 

17 ‘‘(1) IN GENERAL.—No State shall— 

18 ‘‘(A) impede the activities of, take any ac19 tion against, or apply any provision of law or 

20 regulation arbitrarily or discriminatorily to, 

21 any insurance producer because that insurance 

22 producer or any affiliate plans to become, has 

23 applied to become, or is a member of the Associa24 tion; 
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1 ‘‘(B) impose any requirement upon a mem2 ber of the Association that it pay fees different 

3 from those required to be paid to that State were 

4 it not a member of the Association; or 

5 ‘‘(C) impose any continuing education re6 quirements on any nonresident insurance pro7 ducer that is a member of the Association. 

8 ‘‘(2) STATES OTHER THAN A HOME STATE.—No 

9 State, other than the home State of a member of the 

10 Association, shall— 

11 ‘‘(A) impose any licensing, personal or cor12 porate qualifications, education, training, expe13 rience, residency, continuing education, or bond14 ing requirement upon a member of the Associa15 tion that is different from the criteria for mem16 bership in the Association or renewal of such 

17 membership; 

18 ‘‘(B) impose any requirement upon a mem19 ber of the Association that it be licensed, reg20 istered, or otherwise qualified to do business or 

21 remain in good standing in the State, including 

22 any requirement that the insurance producer 

23 register as a foreign company with the secretary 

24 of state or equivalent State official; 
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1 ‘‘(C) require that a member of the Associa2 tion submit to a criminal history record check as 

3 a condition of doing business in the State; or 

4 ‘‘(D) impose any licensing, registration, or 

5 appointment requirements upon a member of the 

6 Association, or require a member of the Associa7 tion to be authorized to operate as an insurance 

8 producer, in order to sell, solicit, or negotiate in9 surance for commercial property and casualty 

10 risks to an insured with risks located in more 

11 than one State, if the member is licensed or oth12 erwise authorized to operate in the State where 

13 the insured maintains its principal place of 

14 business and the contract of insurance insures 

15 risks located in that State. 

16 ‘‘(3) PRESERVATION OF STATE DISCIPLINARY AU17 THORITY.—Nothing in this section may be construed 

18 to prohibit a State from investigating and taking ap19 propriate disciplinary action, including suspension 

20 or revocation of authority of an insurance producer 

21 to do business in a State, in accordance with State 

22 law and that is not inconsistent with the provisions 

23 of this section, against a member of the Association 

24 as a result of a complaint or for any alleged activity, 

25 regardless of whether the activity occurred before or 
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1 after the insurance producer commenced doing busi2 ness in the State pursuant to Association member3 ship. 

4 ‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY 

5 REGULATORY AUTHORITY. 

6 ‘‘The Association shall coordinate with the Financial 

7 Industry Regulatory Authority in order to ease any admin8 istrative burdens that fall on members of the Association 

9 that are subject to regulation by the Financial Industry 

10 Regulatory Authority, consistent with the requirements of 

11 this subtitle and the Federal securities laws. 

12 ‘‘SEC. 332. RIGHT OF ACTION. 

13 ‘‘(a) RIGHT OF ACTION.—Any person aggrieved by a 

14 decision or action of the Association may, after reasonably 

15 exhausting available avenues for resolution within the Asso16 ciation, commence a civil action in an appropriate United 

17 States district court, and obtain all appropriate relief. 

18 ‘‘(b) ASSOCIATION INTERPRETATIONS.—In any action 

19 under subsection (a), the court shall give appropriate 

20 weight to the interpretation of the Association of its bylaws 

21 and standards and this subtitle. 

22 ‘‘SEC. 333. FEDERAL FUNDING PROHIBITED. 

23 ‘‘The Association may not receive, accept, or borrow 

24 any amounts from the Federal Government to pay for, or 
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1 reimburse, the Association for, the costs of establishing or 

2 operating the Association. 

3 ‘‘SEC. 334. DEFINITIONS. 

4 ‘‘For purposes of this subtitle, the following definitions 

5 shall apply: 

6 ‘‘(1) BUSINESS ENTITY.—The term ‘business en7 tity’ means a corporation, association, partnership, 

8 limited liability company, limited liability partner9 ship, or other legal entity. 

10 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de11 pository institution’ has the meaning as in section 3 

12 of the Federal Deposit Insurance Act (12 U.S.C. 

13 1813). 

14 ‘‘(3) HOME STATE.—The term ‘home State’ 

15 means the State in which the insurance producer 

16 maintains its principal place of residence or business 

17 and is licensed to act as an insurance producer. 

18 ‘‘(4) INSURANCE.—The term ‘insurance’ means 

19 any product, other than title insurance or bail bonds, 

20 defined or regulated as insurance by the appropriate 

21 State insurance regulatory authority. 

22 ‘‘(5) INSURANCE PRODUCER.—The term ‘insur23 ance producer’ means any insurance agent or broker, 

24 excess or surplus lines broker or agent, insurance con25 sultant, limited insurance representative, and any 
65 

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1 other individual or entity that sells, solicits, or nego2 tiates policies of insurance or offers advice, counsel, 

3 opinions or services related to insurance. 

4 ‘‘(6) INSURER.—The term ‘insurer’ has the 

5 meaning as in section 313(e)(2)(B) of title 31, United 

6 States Code. 

7 ‘‘(7) PRINCIPAL PLACE OF BUSINESS.—The term 

8 ‘principal place of business’ means the State in which 

9 an insurance producer maintains the headquarters of 

10 the insurance producer and, in the case of a business 

11 entity, where high-level officers of the entity direct, 

12 control, and coordinate the business activities of the 

13 business entity. 

14 ‘‘(8) PRINCIPAL PLACE OF RESIDENCE.—The 

15 term ‘principal place of residence’ means the State in 

16 which an insurance producer resides for the greatest 

17 number of days during a calendar year. 

18 ‘‘(9) STATE.—The term ‘State’ includes any 

19 State, the District of Columbia, any territory of the 

20 United States, and Puerto Rico, Guam, American 

21 Samoa, the Trust Territory of the Pacific Islands, the 

22 Virgin Islands, and the Northern Mariana Islands. 

23 ‘‘(10) STATE LAW.— 

24 ‘‘(A) IN GENERAL.—The term ‘State law’ 

25 includes all laws, decisions, rules, regulations, or 
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1 other State action having the effect of law, of 

2 any State. 

3 ‘‘(B) LAWS APPLICABLE IN THE DISTRICT

4 OF COLUMBIA.—A law of the United States ap5 plicable only to or within the District of Colum6 bia shall be treated as a State law rather than 

7 a law of the United States.’’. 

8 (b) TECHNICAL AMENDMENT.—The table of contents 

9 for the Gramm-Leach-Bliley Act is amended by striking the 

10 items relating to subtitle C of title III and inserting the 

11 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.’’. 

12 TITLE III—BUSINESS RISK MITI13 GATION AND PRICE STA14 BILIZATION 

15 SEC. 301. SHORT TITLE. 

16 This title may be cited as the ‘‘Business Risk Mitiga17 tion and Price Stabilization Act of 2014’’. 
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1 SEC. 302. MARGIN REQUIREMENTS. 

2 (a) COMMODITY EXCHANGE ACT AMENDMENT.—Sec3 tion 4s(e) of the Commodity Exchange Act (7 U.S.C. 6s(e)), 

4 as added by section 731 of the Dodd-Frank Wall Street Re5 form and Consumer Protection Act, is amended by adding 

6 at the end the following new paragraph: 

7 ‘‘(4) APPLICABILITY WITH RESPECT TO

8 COUNTERPARTIES.—The requirements of paragraphs 

9 (2)(A)(ii) and (2)(B)(ii), including the initial and 

10 variation margin requirements imposed by rules 

11 adopted pursuant to paragraphs (2)(A)(ii) and 

12 (2)(B)(ii), shall not apply to a swap in which a 

13 counterparty qualifies for an exception under section 

14 2(h)(7)(A), or an exemption issued under section 

15 4(c)(1) from the requirements of section 2(h)(1)(A) for 

16 cooperative entities as defined in such exemption, or 

17 satisfies the criteria in section 2(h)(7)(D).’’. 

18 (b) SECURITIES EXCHANGE ACT AMENDMENT.—Sec19 tion 15F(e) of the Securities Exchange Act of 1934 (15 

20 U.S.C. 78o–10(e)), as added by section 764(a) of the Dodd21 Frank Wall Street Reform and Consumer Protection Act, 

22 is amended by adding at the end the following new para23 graph: 

24 ‘‘(4) APPLICABILITY WITH RESPECT TO

25 COUNTERPARTIES.—The requirements of paragraphs 

26 (2)(A)(ii) and (2)(B)(ii) shall not apply to a secu-
68 

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1 rity-based swap in which a counterparty qualifies for 

2 an exception under section 3C(g)(1) or satisfies the 

3 criteria in section 3C(g)(4).’’. 

4 SEC. 303. IMPLEMENTATION. 

5 The amendments made by this title to the Commodity 

6 Exchange Act shall be implemented— 

7 (1) without regard to— 

8 (A) chapter 35 of title 44, United States 

9 Code; and 

10 (B) the notice and comment provisions of 

11 section 553 of title 5, United States Code; 

12 (2) through the promulgation of an interim final 

13 rule, pursuant to which public comment will be 

14 sought before a final rule is issued; and 

15 (3) such that paragraph (1) shall apply solely to 

16 changes to rules and regulations, or proposed rules 

17 and regulations, that are limited to and directly a 

18 consequence of such amendments. 

Attest: 

Clerk. 

113TH CONGRESS 

2D SESSION S. 2244 

AMENDMENT