that the proposed standard will not result in any 
change in State law; 
(3) with respect to a capital standard under 
subsection (a)(2), the Secretary and the Chairman 
of the Board certify that the proposed international 
capital standard is designed solely to help ensure 
that sufficient funds are available to pay claims to 
an insurer’s policyholders in the event of the liquida-
tion of that entity; and 
(4) a period of 90 calendar days beginning on 
the date on which the copy of the proposed final text 
of the standard is submitted to the covered congres-
sional committees under paragraph (1)(B) has ex-
pired, during which period the Congress may take 
action to approve or reject such final standard. 
(c) JOINT ANALYSIS BY CHAIR OF THE FEDERAL 
RESERVE AND SECRETARY OF THE TREASURY.— 
(1) IN GENERAL.—An analysis under this sub-
section of a proposed final international insurance 
standard shall be an analysis conducted by the Sec-
retary and the Chairman of the Board of Governors 
of the Federal Reserve System, in consultation with 
the State insurance commissioners, of the impact of 
such standard on consumers and markets in the
United States and whether any changes in State law 
will result from such final standard. 
(2) REPORT.—Upon completion of an analysis 
under this subsection of a final international insur-
ance standard, the Secretary and the Board shall 
submit a report on the results of the analysis to the 
covered congressional committees and the Comp-
troller General of the United States. The report 
shall include a statement setting forth the deter-
mination made pursuant to paragraph (1) regarding 
any changes in State law resulting from such final 
standard. 
(3) NOTICE AND COMMENT.— 
(A) NOTICE.—The Secretary and the 
Chairman of the Board of Governors of the 
Federal Reserve System shall provide notice be-
fore the date on which drafting the report is 
commenced and after the date on which the 
draft of the report is completed. 
(B) OPPORTUNITY FOR COMMENT.—There 
shall be an opportunity for public comment for 
a period beginning on the date on which the re-
port is submitted under paragraph (2) and end-
ing on the date that is not fewer than 60 days 
after the date on which the report is submitted.
Nothing in this subparagraph shall affect the 
authority of the Board to issue the rule referred 
to in subsection (a)(2). 
(4) REVIEW
BY
COMPTROLLER
GENERAL.— 
Upon submission of a report pursuant to paragraph 
(2) to the Comptroller General, the Comptroller 
General shall review the report and shall submit a 
report to the Congress setting forth the conclusions 
of the Comptroller General’s review. 
(d) LIMITED EFFECT.—This section may not be con-
strued to establish or expand any authority to implement 
an international insurance standard in the United States 
or for the United States or any representative of the Fed-
eral Government to adopt or enter into any international 
insurance standard. 
(e) TREATMENT
OF STATE LAW.—In accordance 
with the Act of March 9, 1945 (Chapter 20; 59 Stat. 33; 
15 U.S.C. 1011 et seq.), commonly referred to as the 
‘‘McCarran-Ferguson Act’’, this section may not be con-
strued to preempt State law. 
SEC. 5. REPORTS. 
(a) REPORTS AND TESTIMONY BY SECRETARY OF 
THE TREASURY
AND CHAIR
OF
THE FEDERAL RE-
SERVE.—The Secretary and the Chairman of the Board 
of Governors of the Federal Reserve System shall submit
to the covered congressional committees an annual report 
and provide testimony, not less often than every 6 months, 
to the covered congressional committees on the efforts of 
the Secretary and the Chairman with the State insurance 
commissioners with respect to international insurance 
standard-setting organizations and international insur-
ance standards, including— 
(1) a description of the insurance standard-set-
ting issues under discussion at international stand-
ard-setting bodies, including the Financial Stability 
Board and the International Association of Insur-
ance Supervisors; 
(2) a description of the effects that inter-
national insurance standards could have on con-
sumers and insurance markets in the United States; 
(3) a description of any position taken by the 
Secretary and the Board in international insurance 
discussions or on any international insurance stand-
ard; 
(4) a description of the efforts by the Secretary 
and the Board to increase transparency and ac-
countability at the Financial Stability Board with re-
spect to insurance proposals and the International 
Association of Insurance Supervisors, including ef-
forts to provide additional public access to working
groups and committees of the International Associa-
tion of Insurance Supervisors; and 
(5) a description of how the Secretary and the 
Board are meeting the objectives set forth in section 
3, or, if such objectives are not being met, an expla-
nation of the reasons for not meeting such objec-
tives. 
(b) REPORTS AND TESTIMONY BY STATE INSURANCE 
COMMISSIONERS.—The State insurance commissioners 
may provide testimony or reports to the Congress on the 
issues described in subsection (a). 
(c) REPORT
ON TRANSPARENCY.—Not later than 
180 days after the date of enactment of this Act, the 
Chairman of the Board of Governors of the Federal Re-
serve System and the Secretary shall submit to the Con-
gress a report and provide testimony to the Congress on 
the efforts of the Chairman and the Secretary pursuant 
to subsection (a)(4) of this section to increase trans-
parency at meetings of the International Association of In-
surance Supervisors. 
(d) GAO REPORT ON TRANSPARENCY OF OUTSIDE 
ORGANIZATIONS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Comptroller 
General of the United States shall submit to the cov-
ered congressional committees a report, and provide 
testimony to such committees, identifying and ana-
lyzing the transparency and accountability of any or-
ganization acting as a designee of, or at the direc-
tion of, the head of a State insurance department on 
issues related to international insurance standards, 
which is not employed directly by the State. 
(2) CONTENT.—The report and testimony re-
quired under this section shall include a description 
and analysis of— 
(A) the role, involvement, or relationship, 
of any organization identified pursuant to para-
graph (1), of, with, or to the State insurance 
departments’ activities as authorized by, di-
rected by, or otherwise referred to in this Act, 
including a description and analysis regarding 
such organization’s participation in policy and 
decision-making deliberations and activities re-
lated to international insurance standards; 
(B) any financial support provided by such 
organization to any State insurance department 
personnel in furtherance of their activities re-
lated to international insurance standards, the 
nature and amount of such support, and any 
understandings between the organization and
the State regarding travel protocols and State 
laws governing State officials’ receipt of, bene-
fitting from, or being subsidized by, outside 
funds; 
(C) the budget, including revenues and ex-
penses, of any organization identified pursuant 
to paragraph (1) relating to participation in 
international insurance discussions on issues be-
fore, involving, or relating to the International 
Association of Insurance Supervisors, the Fi-
nancial Stability Board, or any other inter-
national forum of financial regulators or super-
visors that considers such issues, and how the 
organization collects money to fund such activi-
ties; 
(D) whether each such budget of such an 
organization is developed under a process com-
parable in its transparency and accountability 
to the process under which budgets are devel-
oped and appropriated for State departments of 
insurance and Federal executive branch regu-
latory agencies, including— 
(i) an identification of any bodies 
independent of the organization that set
standards for and/or oversee that organiza-
tion’s budgeting process; and 
(ii) a description of the extent to 
which and how the organization, in fund-
ing its operations, uses or benefits from its 
members’ ability to compel entities subject 
to its members’ regulatory authority to use 
the services of the organization or any of 
its affiliates; and 
(E) the extent to which the work product 
of any organization identified pursuant to para-
graph (1) has the effect of establishing any self- 
executing national standards, and in what way, 
and whether such standards are developed 
under processes comparable in their trans-
parency and accountability to the process under 
which national standards are developed by the 
Congress or Federal executive branch agencies. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System, 
or the designee of the Board. 
(2) COVERED CONGRESSIONAL COMMITTEES.— 
The term ‘‘covered congressional committees’’ means
the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing and Urban Affairs of the Senate. 
(3) INTERNATIONAL INSURANCE STANDARD.— 
The term ‘‘international insurance standard’’ means 
any international insurance supervisory standard de-
veloped by an international standards setting organi-
zation, or regulatory or supervisory forum, in which 
the United States participates, including the Com-
mon Framework for the Supervision of Internation-
ally Active Insurance Groups, the Financial Stability 
Board, and the International Association of Insur-
ance Supervisors. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury, or the Secretary’s 
designee. 
(5) STATE INSURANCE COMMISSIONERS.—The 
term ‘‘State insurance commissioners’’ means the 
heads of the State insurance departments or their 
designees acting at their direction. 
SEC. 7. TREATMENT OF COVERED AGREEMENTS. 
Section 314 of title 31, United States Code is amend-
ed— 
(1) in subsection (c)—
(A) by redesignating paragraphs (1) and 
(2) as paragraphs (2) and (3), respectively; and 
(B) by inserting before paragraph (2), as 
so redesignated, the following new paragraph: 
‘‘(1) the Secretary of the Treasury and the 
United States Trade Representative have caused to 
be published in the Federal Register, and made 
available for public comment for a period of not 
fewer than 30 days (which period may run concur-
rently with the 90-day period for the covered agree-
ment referred to in paragraph (3)), the proposed 
text of the covered agreement;’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(d) CONSULTATION WITH STATE INSURANCE COM-
MISSIONERS.—In any negotiations regarding a con-
templated covered agreement, the Secretary and the 
United States Trade Representative shall consult with and 
directly include State insurance commissioners. 
‘‘(e) PROHIBITION ON REGULATORY AUTHORITY.— 
In accordance with subsections (k) and (l) of section 313, 
a covered agreement shall not be used to establish or pro-
vide the Federal Insurance Office or the Treasury with 
any general supervisory or regulatory authority over the
business of insurance or with the authority to participate 
in a supervisory college or similar process. 
‘‘(f) TREATMENT UNDER OTHER LAW.—A covered 
agreement shall not be considered an international insur-
ance standard for purposes of the Transparent Insurance 
Standards Act of 2016 and shall not be subject to such 
Act.’’. 
SEC. 8. DUTIES OF INDEPENDENT MEMBER OF FINANCIAL 
STABILITY OVERSIGHT COUNCIL. 
Subsection (a) of section 112 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 
5322(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(3) DUTIES OF INDEPENDENT MEMBER.—To 
assist the Council with its responsibilities to monitor 
international insurance developments, advise Con-
gress, and make recommendations, the Independent 
Member of the Council shall have the authority to— 
‘‘(A) regularly consult with international 
insurance supervisors and international finan-
cial stability counterparts; 
‘‘(B) consult with, advise, and assist the 
Secretary of the Treasury with respect to rep-
resenting the Federal Government of the 
United States, as appropriate, in the Inter-
national Association of Insurance Supervisors 
(including to become a non-voting member 
thereof), particularly on matters of systemic 
risk, and to consult with the Board of Gov-
ernors of the Federal Reserve System and the 
States concerning such matters; 
‘‘(C) attend the Financial Stability Board 
of The Group of Twenty and join with other 
members from the United States, including on 
matters related to insurance and financial sta-
bility, and provide for the attendance and par-
ticipation at such Board, on matters related to 
insurance and financial stability, of State insur-
ance commissioners; and 
‘‘(D) attend, with the United States dele-
gation, the Organization for Economic Coopera-
tion and Development and observe and partici-
pate at the Insurance and Private Pensions 
Committee of such Organization on matters re-
lated to insurance and financial stability.’’. 
SEC. 9. STATE INSURANCE REGULATOR INVOLVEMENT IN 
INTERNATIONAL STANDARD SETTING. 
Parties representing the United States at the Finan-
cial Stability Board of the Group of Twenty on matters, 
and in meetings, related to insurance and financial sta-
bility shall consult with, and seek to include in such meet-
ings, the State insurance commissioners. 
SEC. 10. RULE OF CONSTRUCTION. 
Nothing in this Act or the amendments made by this 
Act may be construed to support or endorse the domestic 
capital standard for insurers referred to in section 4(a)(2) 
or any such domestic capital standards established by the 
Board. 
SEC. 11. SECURITIES AND EXCHANGE COMMISSION RE-
SERVE FUND. 
Clause (i) of section 4(i)(2)(B) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78d(i)(2)(B)(i)) is amend-
ed by inserting before the semicolon the following: ‘‘, ex-
cept that for fiscal year 2017, the amount deposited may 
not exceed $43,000,000’’. 
Passed the House of Representatives December 7, 
2016. 
Attest: 
Clerk.