TERRORISM RISK INSURANCE PROGRAM REAUTHORIZATION ACT OF 2015; Congressional Record Vol. 161, No. 2
(House of Representatives - January 07, 2015)

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[Pages H59-H71]
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      TERRORISM RISK INSURANCE PROGRAM REAUTHORIZATION ACT OF 2015

  Mr. NEUGEBAUER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 26) to extend the termination date of the Terrorism 
Insurance Program established under the Terrorism Risk Insurance Act of 
2002, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 26

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.

           TITLE I--EXTENSION OF TERRORISM INSURANCE PROGRAM

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

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

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

      TITLE III--BUSINESS RISK MITIGATION AND PRICE STABILIZATION

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

           TITLE I--EXTENSION OF TERRORISM INSURANCE PROGRAM

     SEC. 101. EXTENSION OF TERRORISM INSURANCE PROGRAM.

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

     SEC. 102. FEDERAL SHARE.

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

     SEC. 103. PROGRAM TRIGGER.

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

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

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

       (I) by striking ``2010'' and inserting ``2017''; and
       (II) by striking ``2012'' and inserting ``2019'';

       (ii) in subclause (II)--

       (I) by striking ``2011'' and inserting ``2018'';
       (II) by striking ``2012'' and inserting ``2019''; and
       (III) by striking ``2017'' and inserting ``2024''; and

       (iii) in subclause (III)--

       (I) by striking ``2012'' and inserting ``2019''; and
       (II) by striking ``2017'' and inserting ``2024''.

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

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

     SEC. 106. TECHNICAL AMENDMENTS.

       The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
     note) is amended--
       (1) in section 102--
       (A) in paragraph (3)--
       (i) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively;
       (ii) in the matter preceding clause (i) (as so 
     redesignated), by striking ``An entity has'' and inserting 
     the following:
       ``(A) In general.--An entity has''; and
       (iii) by adding at the end the following new subparagraph:
       ``(B) Rule of construction.--An entity, including any 
     affiliate thereof, does not have `control' over another 
     entity, if, as of the date of enactment of the Terrorism Risk 
     Insurance Program Reauthorization Act of 2015, the entity is 
     acting as an attorney-in-fact, as defined by the Secretary, 
     for the other entity and such other entity is a reciprocal 
     insurer, provided that the entity is not, for reasons other 
     than the attorney-in-fact relationship, defined as having 
     `control' under subparagraph (A).'';
       (B) in paragraph (7)--
       (i) by striking subparagraphs (A) through (F) and inserting 
     the following:
       ``(A) the value of an insurer's direct earned premiums 
     during the immediately preceding calendar year, multiplied by 
     20 percent; and'';
       (ii) by redesignating subparagraph (G) as subparagraph (B); 
     and
       (iii) in subparagraph (B), as so redesignated by clause 
     (ii)--

       (I) by striking ``notwithstanding subparagraphs (A) through 
     (F), for the Transition Period or any Program Year'' and 
     inserting ``notwithstanding subparagraph (A), for any 
     calendar year''; and
       (II) by striking ``Period or Program Year'' and inserting 
     ``calendar year'';

       (C) by striking paragraph (11); and
       (D) by redesignating paragraphs (12) through (16) as 
     paragraphs (11) through (15), respectively; and
       (2) in section 103--
       (A) in subsection (b)(2)--
       (i) in subparagraph (B), by striking ``, purchase,''; and
       (ii) in subparagraph (C), by striking ``, purchase,'';
       (B) in subsection (c), by striking ``Program Year'' and 
     inserting ``calendar year'';
       (C) in subsection (e)--
       (i) in paragraph (1)(A), as previously amended by section 
     102--

       (I) by striking ``the Transition Period and each Program 
     Year through Program Year 4 shall be equal to 90 percent, and 
     during Program Year 5 and each Program Year thereafter'' and 
     inserting ``each calendar year'';

[[Page H60]]

       (II) by striking the comma after ``80 percent''; and
       (III) by striking ``such Transition Period or such Program 
     Year'' and inserting ``such calendar year'';

       (ii) in paragraph (2)(A), by striking ``the period 
     beginning on the first day of the Transition Period and 
     ending on the last day of Program Year 1, or during any 
     Program Year thereafter'' and inserting ``a calendar year''; 
     and
       (iii) in paragraph (3), by striking ``the period beginning 
     on the first day of the Transition Period and ending on the 
     last day of Program Year 1, or during any other Program 
     Year'' and inserting ``any calendar year''; and
       (D) in subsection (g)(2)--
       (i) by striking ``the Transition Period or a Program Year'' 
     each place that term appears and inserting ``the calendar 
     year'';
       (ii) by striking ``such period'' and inserting ``the 
     calendar year''; and
       (iii) by striking ``that period'' and inserting ``the 
     calendar year''.

     SEC. 107. IMPROVING THE CERTIFICATION PROCESS.

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

     SEC. 108. GAO STUDY.

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

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

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

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

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

[[Page H61]]

     SEC. 111. REPORTING OF TERRORISM INSURANCE DATA.

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

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

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

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

     SEC. 201. SHORT TITLE.

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

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

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

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

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

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

     ``SEC. 322. PURPOSE.

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

     ``SEC. 323. MEMBERSHIP.

       ``(a) Eligibility.--
       ``(1) In general.--Any insurance producer licensed in its 
     home State shall, subject to paragraphs (2) and (4), be 
     eligible to become a member of the Association.
       ``(2) Ineligibility for suspension or revocation of 
     license.--Subject to paragraph (3), an insurance producer is 
     not eligible to become a member of the Association if a State 
     insurance regulator has suspended or revoked the insurance 
     license of the insurance producer in that State.
       ``(3) Resumption of eligibility.--Paragraph (2) shall cease 
     to apply to any insurance producer if--
       ``(A) the State insurance regulator reissues or renews the 
     license of the insurance producer in the State in which the 
     license was suspended or revoked, or otherwise terminates or 
     vacates the suspension or revocation; or
       ``(B) the suspension or revocation expires or is 
     subsequently overturned by a court of competent jurisdiction.
       ``(4) Criminal history record check required.--
       ``(A) In general.--An insurance producer who is an 
     individual shall not be eligible to become a member of the 
     Association unless the insurance producer has undergone a 
     criminal history record check that complies with regulations 
     prescribed by the Attorney General of the United States under 
     subparagraph (K).

[[Page H62]]

       ``(B) Criminal history record check requested by home 
     state.--An insurance producer who is licensed in a State and 
     who has undergone a criminal history record check during the 
     2-year period preceding the date of submission of an 
     application to become a member of the Association, in 
     compliance with a requirement to undergo such criminal 
     history record check as a condition for such licensure in the 
     State, shall be deemed to have undergone a criminal history 
     record check for purposes of subparagraph (A).
       ``(C) Criminal history record check requested by 
     association.--
       ``(i) In general.--The Association shall, upon request by 
     an insurance producer licensed in a State, submit 
     fingerprints or other identification information obtained 
     from the insurance producer, and a request for a criminal 
     history record check of the insurance producer, to the 
     Federal Bureau of Investigation.
       ``(ii) Procedures.--The board of directors of the 
     Association (referred to in this subtitle as the `Board') 
     shall prescribe procedures for obtaining and utilizing 
     fingerprints or other identification information and criminal 
     history record information, including the establishment of 
     reasonable fees to defray the expenses of the Association in 
     connection with the performance of a criminal history record 
     check and appropriate safeguards for maintaining 
     confidentiality and security of the information. Any fees 
     charged pursuant to this clause shall be separate and 
     distinct from those charged by the Attorney General pursuant 
     to subparagraph (I).
       ``(D) Form of request.--A submission under subparagraph 
     (C)(i) shall include such fingerprints or other 
     identification information as is required by the Attorney 
     General concerning the person about whom the criminal history 
     record check is requested, and a statement signed by the 
     person authorizing the Attorney General to provide the 
     information to the Association and for the Association to 
     receive the information.
       ``(E) Provision of information by attorney general.--Upon 
     receiving a submission under subparagraph (C)(i) from the 
     Association, the Attorney General shall search all criminal 
     history records of the Federal Bureau of Investigation, 
     including records of the Criminal Justice Information 
     Services Division of the Federal Bureau of Investigation, 
     that the Attorney General determines appropriate for criminal 
     history records corresponding to the fingerprints or other 
     identification information provided under subparagraph (D) 
     and provide all criminal history record information included 
     in the request to the Association.
       ``(F) Limitation on permissible uses of information.--Any 
     information provided to the Association under subparagraph 
     (E) may only--
       ``(i) be used for purposes of determining compliance with 
     membership criteria established by the Association;
       ``(ii) be disclosed to State insurance regulators, or 
     Federal or State law enforcement agencies, in conformance 
     with applicable law; or
       ``(iii) be disclosed, upon request, to the insurance 
     producer to whom the criminal history record information 
     relates.
       ``(G) Penalty for improper use or disclosure.--Whoever 
     knowingly uses any information provided under subparagraph 
     (E) for a purpose not authorized in subparagraph (F), or 
     discloses any such information to anyone not authorized to 
     receive it, shall be fined not more than $50,000 per 
     violation as determined by a court of competent jurisdiction.
       ``(H) Reliance on information.--Neither the Association nor 
     any of its Board members, officers, or employees shall be 
     liable in any action for using information provided under 
     subparagraph (E) as permitted under subparagraph (F) in good 
     faith and in reasonable reliance on its accuracy.
       ``(I) Fees.--The Attorney General may charge a reasonable 
     fee for conducting the search and providing the information 
     under subparagraph (E), and any such fee shall be collected 
     and remitted by the Association to the Attorney General.
       ``(J) Rule of construction.--Nothing in this paragraph 
     shall be construed as--
       ``(i) requiring a State insurance regulator to perform 
     criminal history record checks under this section; or
       ``(ii) limiting any other authority that allows access to 
     criminal history records.
       ``(K) Regulations.--The Attorney General shall prescribe 
     regulations to carry out this paragraph, which shall 
     include--
       ``(i) appropriate protections for ensuring the 
     confidentiality of information provided under subparagraph 
     (E); and
       ``(ii) procedures providing a reasonable opportunity for an 
     insurance producer to contest the accuracy of information 
     regarding the insurance producer provided under subparagraph 
     (E).
       ``(L) Ineligibility for membership.--
       ``(i) In general.--The Association may, under reasonably 
     consistently applied standards, deny membership to an 
     insurance producer on the basis of criminal history record 
     information provided under subparagraph (E), or where the 
     insurance producer has been subject to disciplinary action, 
     as described in paragraph (2).
       ``(ii) Rights of applicants denied membership.--The 
     Association shall notify any insurance producer who is denied 
     membership on the basis of criminal history record 
     information provided under subparagraph (E) of the right of 
     the insurance producer to--

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

       ``(M) Definition.--For purposes of this paragraph, the term 
     `criminal history record check' means a national background 
     check of criminal history records of the Federal Bureau of 
     Investigation.
       ``(b) Authority To Establish Membership Criteria.--The 
     Association may establish membership criteria that bear a 
     reasonable relationship to the purposes for which the 
     Association was established.
       ``(c) Establishment of Classes and Categories of 
     Membership.--
       ``(1) Classes of membership.--The Association may establish 
     separate classes of membership, with separate criteria, if 
     the Association reasonably determines that performance of 
     different duties requires different levels of education, 
     training, experience, or other qualifications.
       ``(2) Business entities.--The Association shall establish a 
     class of membership and membership criteria for business 
     entities. A business entity that applies for membership shall 
     be required to designate an individual Association member 
     responsible for the compliance of the business entity with 
     Association standards and the insurance laws, standards, and 
     regulations of any State in which the business entity seeks 
     to do business on the basis of Association membership.
       ``(3) Categories.--
       ``(A) Separate categories for insurance producers 
     permitted.--The Association may establish separate categories 
     of membership for insurance producers and for other persons 
     or entities within each class, based on the types of 
     licensing categories that exist under State laws.
       ``(B) Separate treatment for depository institutions 
     prohibited.--No special categories of membership, and no 
     distinct membership criteria, shall be established for 
     members that are depository institutions or for employees, 
     agents, or affiliates of depository institutions.
       ``(d) Membership Criteria.--
       ``(1) In general.--The Association may establish criteria 
     for membership which shall include standards for personal 
     qualifications, education, training, and experience. The 
     Association shall not establish criteria that unfairly limit 
     the ability of a small insurance producer to become a member 
     of the Association, including imposing discriminatory 
     membership fees.
       ``(2) Qualifications.--In establishing criteria under 
     paragraph (1), the Association shall not adopt any 
     qualification less protective to the public than that 
     contained in the National Association of Insurance 
     Commissioners (referred to in this subtitle as the `NAIC') 
     Producer Licensing Model Act in effect as of the date of 
     enactment of the National Association of Registered Agents 
     and Brokers Reform Act of 2015, and shall consider the 
     highest levels of insurance producer qualifications 
     established under the licensing laws of the States.
       ``(3) Assistance from states.--
       ``(A) In general.--The Association may request a State to 
     provide assistance in investigating and evaluating the 
     eligibility of a prospective member for membership in the 
     Association.
       ``(B) Authorization of information sharing.--A submission 
     under subsection (a)(4)(C)(i) made by an insurance producer 
     licensed in a State shall include a statement signed by the 
     person about whom the assistance is requested authorizing--
       ``(i) the State to share information with the Association; 
     and
       ``(ii) the Association to receive the information.
       ``(C) Rule of construction.--Subparagraph (A) shall not be 
     construed as requiring or authorizing any State to adopt new 
     or additional requirements concerning the licensing or 
     evaluation of insurance producers.
       ``(4) Denial of membership.--The Association may, based on 
     reasonably consistently applied standards, deny membership to 
     any State-licensed insurance producer for failure to meet the 
     membership criteria established by the Association.
       ``(e) Effect of Membership.--
       ``(1) Authority of association members.--Membership in the 
     Association shall--
       ``(A) authorize an insurance producer to sell, solicit, or 
     negotiate insurance in any State for which the member pays 
     the licensing fee set by the State for any line or lines of 
     insurance specified in the home State license of the 
     insurance producer, and exercise all such incidental powers 
     as shall be necessary to carry out such activities, including 
     claims adjustments and settlement to the extent permissible 
     under the laws of the State, risk management, employee 
     benefits advice, retirement planning, and any other 
     insurance-related consulting activities;
       ``(B) be the equivalent of a nonresident insurance producer 
     license for purposes of authorizing the insurance producer to 
     engage in the activities described in subparagraph (A) in any 
     State where the member pays the licensing fee; and
       ``(C) be the equivalent of a nonresident insurance producer 
     license for the purpose of subjecting an insurance producer 
     to all laws, regulations, provisions or other action of any 
     State concerning revocation, suspension, or other enforcement 
     action related to the

[[Page H63]]

     ability of a member to engage in any activity within the 
     scope of authority granted under this subsection and to all 
     State laws, regulations, provisions, and actions preserved 
     under paragraph (5).
       ``(2) Violent crime control and law enforcement act of 
     1994.--Nothing in this subtitle shall be construed to alter, 
     modify, or supercede any requirement established by section 
     1033 of title 18, United States Code.
       ``(3) Agent for remitting fees.--The Association shall act 
     as an agent for any member for purposes of remitting 
     licensing fees to any State pursuant to paragraph (1).
       ``(4) Notification of action.--
       ``(A) In general.--The Association shall notify the States 
     (including State insurance regulators) and the NAIC when an 
     insurance producer has satisfied the membership criteria of 
     this section. The States (including State insurance 
     regulators) shall have 10 business days after the date of the 
     notification in order to provide the Association with 
     evidence that the insurance producer does not satisfy the 
     criteria for membership in the Association.
       ``(B) Ongoing disclosures required.--On an ongoing basis, 
     the Association shall disclose to the States (including State 
     insurance regulators) and the NAIC a list of the States in 
     which each member is authorized to operate. The Association 
     shall immediately notify the States (including State 
     insurance regulators) and the NAIC when a member is newly 
     authorized to operate in one or more States, or is no longer 
     authorized to operate in one or more States on the basis of 
     Association membership.
       ``(5) Preservation of consumer protection and market 
     conduct regulation.--
       ``(A) In general.--No provision of this section shall be 
     construed as altering or affecting the applicability or 
     continuing effectiveness of any law, regulation, provision, 
     or other action of any State, including those described in 
     subparagraph (B), to the extent that the State law, 
     regulation, provision, or other action is not inconsistent 
     with the provisions of this subtitle related to market entry 
     for nonresident insurance producers, and then only to the 
     extent of the inconsistency.
       ``(B) Preserved regulations.--The laws, regulations, 
     provisions, or other actions of any State referred to in 
     subparagraph (A) include laws, regulations, provisions, or 
     other actions that--
       ``(i) regulate market conduct, insurance producer conduct, 
     or unfair trade practices;
       ``(ii) establish consumer protections; or
       ``(iii) require insurance producers to be appointed by a 
     licensed or authorized insurer.
       ``(f) Biennial Renewal.--Membership in the Association 
     shall be renewed on a biennial basis.
       ``(g) Continuing Education.--
       ``(1) In general.--The Association shall establish, as a 
     condition of membership, continuing education requirements 
     which shall be comparable to the continuing education 
     requirements under the licensing laws of a majority of the 
     States.
       ``(2) State continuing education requirements.--A member 
     may not be required to satisfy continuing education 
     requirements imposed under the laws, regulations, provisions, 
     or actions of any State other than the home State of the 
     member.
       ``(3) Reciprocity.--The Association shall not require a 
     member to satisfy continuing education requirements that are 
     equivalent to any continuing education requirements of the 
     home State of the member that have been satisfied by the 
     member during the applicable licensing period.
       ``(4) Limitation on the association.--The Association shall 
     not directly or indirectly offer any continuing education 
     courses for insurance producers.
       ``(h) Probation, Suspension and Revocation.--
       ``(1) Disciplinary action.--The Association may place an 
     insurance producer that is a member of the Association on 
     probation or suspend or revoke the membership of the 
     insurance producer in the Association, or assess monetary 
     fines or penalties, as the Association determines to be 
     appropriate, if--
       ``(A) the insurance producer fails to meet the applicable 
     membership criteria or other standards established by the 
     Association;
       ``(B) the insurance producer has been subject to 
     disciplinary action pursuant to a final adjudicatory 
     proceeding under the jurisdiction of a State insurance 
     regulator;
       ``(C) an insurance license held by the insurance producer 
     has been suspended or revoked by a State insurance regulator; 
     or
       ``(D) the insurance producer has been convicted of a crime 
     that would have resulted in the denial of membership pursuant 
     to subsection (a)(4)(L)(i) at the time of application, and 
     the Association has received a copy of the final disposition 
     from a court of competent jurisdiction.
       ``(2) Violations of association standards.--The Association 
     shall have the power to investigate alleged violations of 
     Association standards.
       ``(3) Reporting.--The Association shall immediately notify 
     the States (including State insurance regulators) and the 
     NAIC when the membership of an insurance producer has been 
     placed on probation or has been suspended, revoked, or 
     otherwise terminated, or when the Association has assessed 
     monetary fines or penalties.
       ``(i) Consumer Complaints.--
       ``(1) In general.--The Association shall--
       ``(A) refer any complaint against a member of the 
     Association from a consumer relating to alleged misconduct or 
     violations of State insurance laws to the State insurance 
     regulator where the consumer resides and, when appropriate, 
     to any additional State insurance regulator, as determined by 
     standards adopted by the Association; and
       ``(B) make any related records and information available to 
     each State insurance regulator to whom the complaint is 
     forwarded.
       ``(2) Telephone and other access.--The Association shall 
     maintain a toll-free number for purposes of this subsection 
     and, as practicable, other alternative means of communication 
     with consumers, such as an Internet webpage.
       ``(3) Final disposition of investigation.--State insurance 
     regulators shall provide the Association with information 
     regarding the final disposition of a complaint referred 
     pursuant to paragraph (1)(A), but nothing shall be construed 
     to compel a State to release confidential investigation 
     reports or other information protected by State law to the 
     Association.
       ``(j) Information Sharing.--The Association may--
       ``(1) share documents, materials, or other information, 
     including confidential and privileged documents, with a 
     State, Federal, or international governmental entity or with 
     the NAIC or other appropriate entity referred to paragraphs 
     (3) and (4), provided that the recipient has the authority 
     and agrees to maintain the confidentiality or privileged 
     status of the document, material, or other information;
       ``(2) limit the sharing of information as required under 
     this subtitle with the NAIC or any other non-governmental 
     entity, in circumstances under which the Association 
     determines that the sharing of such information is 
     unnecessary to further the purposes of this subtitle;
       ``(3) establish a central clearinghouse, or utilize the 
     NAIC or another appropriate entity, as determined by the 
     Association, as a central clearinghouse, for use by the 
     Association and the States (including State insurance 
     regulators), through which members of the Association may 
     disclose their intent to operate in 1 or more States and pay 
     the licensing fees to the appropriate States; and
       ``(4) establish a database, or utilize the NAIC or another 
     appropriate entity, as determined by the Association, as a 
     database, for use by the Association and the States 
     (including State insurance regulators) for the collection of 
     regulatory information concerning the activities of insurance 
     producers.
       ``(k) Effective Date.--The provisions of this section shall 
     take effect on the later of--
       ``(1) the expiration of the 2-year period beginning on the 
     date of enactment of the National Association of Registered 
     Agents and Brokers Reform Act of 2015; and
       ``(2) the date of incorporation of the Association.

     ``SEC. 324. BOARD OF DIRECTORS.

       ``(a) Establishment.--There is established a board of 
     directors of the Association, which shall have authority to 
     govern and supervise all activities of the Association.
       ``(b) Powers.--The Board shall have such of the powers and 
     authority of the Association as may be specified in the 
     bylaws of the Association.
       ``(c) Composition.--
       ``(1) In general.--The Board shall consist of 13 members 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate, in accordance with the 
     procedures established under Senate Resolution 116 of the 
     112th Congress, of whom--
       ``(A) 8 shall be State insurance commissioners appointed in 
     the manner provided in paragraph (2), 1 of whom shall be 
     designated by the President to serve as the chairperson of 
     the Board until the Board elects one such State insurance 
     commissioner Board member to serve as the chairperson of the 
     Board;
       ``(B) 3 shall have demonstrated expertise and experience 
     with property and casualty insurance producer licensing; and
       ``(C) 2 shall have demonstrated expertise and experience 
     with life or health insurance producer licensing.
       ``(2) State insurance regulator representatives.--
       ``(A) Recommendations.--Before making any appointments 
     pursuant to paragraph (1)(A), the President shall request a 
     list of recommended candidates from the States through the 
     NAIC, which shall not be binding on the President. If the 
     NAIC fails to submit a list of recommendations not later than 
     15 business days after the date of the request, the President 
     may make the requisite appointments without considering the 
     views of the NAIC.
       ``(B) Political affiliation.--Not more than 4 Board members 
     appointed under paragraph (1)(A) shall belong to the same 
     political party.
       ``(C) Former state insurance commissioners.--
       ``(i) In general.--If, after offering each currently 
     serving State insurance commissioner an appointment to the 
     Board, fewer than 8 State insurance commissioners have 
     accepted appointment to the Board, the President may appoint 
     the remaining State insurance commissioner Board members, as 
     required under paragraph (1)(A), of the appropriate political 
     party as required under subparagraph (B), from among 
     individuals who are former State insurance commissioners.
       ``(ii) Limitation.--A former State insurance commissioner 
     appointed as described in

[[Page H64]]

     clause (i) may not be employed by or have any present direct 
     or indirect financial interest in any insurer, insurance 
     producer, or other entity in the insurance industry, other 
     than direct or indirect ownership of, or beneficial interest 
     in, an insurance policy or annuity contract written or sold 
     by an insurer.
       ``(D) Service through term.--If a Board member appointed 
     under paragraph (1)(A) ceases to be a State insurance 
     commissioner during the term of the Board member, the Board 
     member shall cease to be a Board member.
       ``(3) Private sector representatives.--In making any 
     appointment pursuant to subparagraph (B) or (C) of paragraph 
     (1), the President may seek recommendations for candidates 
     from groups representing the category of individuals 
     described, which shall not be binding on the President.
       ``(4) State insurance commissioner defined.--For purposes 
     of this subsection, the term `State insurance commissioner' 
     means a person who serves in the position in State 
     government, or on the board, commission, or other body that 
     is the primary insurance regulatory authority for the State.
       ``(d) Terms.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the term of service for each Board member shall be 2 years.
       ``(2) Exceptions.--
       ``(A) 1-year terms.--The term of service shall be 1 year, 
     as designated by the President at the time of the nomination 
     of the subject Board members for--
       ``(i) 4 of the State insurance commissioner Board members 
     initially appointed under paragraph (1)(A), of whom not more 
     than 2 shall belong to the same political party;
       ``(ii) 1 of the Board members initially appointed under 
     paragraph (1)(B); and
       ``(iii) 1 of the Board members initially appointed under 
     paragraph (1)(C).
       ``(B) Expiration of term.--A Board member may continue to 
     serve after the expiration of the term to which the Board 
     member was appointed for the earlier of 2 years or until a 
     successor is appointed.
       ``(C) Mid-term appointments.--A Board member appointed to 
     fill a vacancy occurring before the expiration of the term 
     for which the predecessor of the Board member was appointed 
     shall be appointed only for the remainder of that term.
       ``(3) Successive terms.--Board members may be reappointed 
     to successive terms.
       ``(e) Initial Appointments.--The appointment of initial 
     Board members shall be made no later than 90 days after the 
     date of enactment of the National Association of Registered 
     Agents and Brokers Reform Act of 2015.
       ``(f) Meetings.--
       ``(1) In general.--The Board shall meet--
       ``(A) at the call of the chairperson;
       ``(B) as requested in writing to the chairperson by not 
     fewer than 5 Board members; or
       ``(C) as otherwise provided by the bylaws of the 
     Association.
       ``(2) Quorum required.--A majority of all Board members 
     shall constitute a quorum.
       ``(3) Voting.--Decisions of the Board shall require the 
     approval of a majority of all Board members present at a 
     meeting, a quorum being present.
       ``(4) Initial meeting.--The Board shall hold its first 
     meeting not later than 45 days after the date on which all 
     initial Board members have been appointed.
       ``(g) Restriction on Confidential Information.--Board 
     members appointed pursuant to subparagraphs (B) and (C) of 
     subsection (c)(1) shall not have access to confidential 
     information received by the Association in connection with 
     complaints, investigations, or disciplinary proceedings 
     involving insurance producers.
       ``(h) Ethics and Conflicts of Interest.--The Board shall 
     issue and enforce an ethical conduct code to address 
     permissible and prohibited activities of Board members and 
     Association officers, employees, agents, or consultants. The 
     code shall, at a minimum, include provisions that prohibit 
     any Board member or Association officer, employee, agent or 
     consultant from--
       ``(1) engaging in unethical conduct in the course of 
     performing Association duties;
       ``(2) participating in the making or influencing the making 
     of any Association decision, the outcome of which the Board 
     member, officer, employee, agent, or consultant knows or had 
     reason to know would have a reasonably foreseeable material 
     financial effect, distinguishable from its effect on the 
     public generally, on the person or a member of the immediate 
     family of the person;
       ``(3) accepting any gift from any person or entity other 
     than the Association that is given because of the position 
     held by the person in the Association;
       ``(4) making political contributions to any person or 
     entity on behalf of the Association; and
       ``(5) lobbying or paying a person to lobby on behalf of the 
     Association.
       ``(i) Compensation.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     Board member may receive any compensation from the 
     Association or any other person or entity on account of Board 
     membership.
       ``(2) Travel expenses and per diem.--Board members may be 
     reimbursed only by the Association for travel expenses, 
     including per diem in lieu of subsistence, at rates 
     consistent with rates authorized for employees of Federal 
     agencies under subchapter I of chapter 57 of title 5, United 
     States Code, while away from home or regular places of 
     business in performance of services for the Association.

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

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

     ``SEC. 326. POWERS.

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

     ``SEC. 327. REPORT BY THE ASSOCIATION.

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

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

       ``(a) In General.--The Association shall not be deemed to 
     be an insurer or insurance

[[Page H65]]

     producer within the meaning of any State law, rule, 
     regulation, or order regulating or taxing insurers, insurance 
     producers, or other entities engaged in the business of 
     insurance, including provisions imposing premium taxes, 
     regulating insurer solvency or financial condition, 
     establishing guaranty funds and levying assessments, or 
     requiring claims settlement practices.
       ``(b) Liability of Board Members, Officers, and 
     Employees.--No Board member, officer, or employee of the 
     Association shall be personally liable to any person for any 
     action taken or omitted in good faith in any matter within 
     the scope of their responsibilities in connection with the 
     Association.

     ``SEC. 329. PRESIDENTIAL OVERSIGHT.

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

     ``SEC. 330. RELATIONSHIP TO STATE LAW.

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

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

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

     ``SEC. 332. RIGHT OF ACTION.

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

     ``SEC. 333. FEDERAL FUNDING PROHIBITED.

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

     ``SEC. 334. DEFINITIONS.

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

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

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

      TITLE III--BUSINESS RISK MITIGATION AND PRICE STABILIZATION

     SEC. 301. SHORT TITLE.

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

     SEC. 302. MARGIN REQUIREMENTS.

       (a) Commodity Exchange Act Amendment.--Section 4s(e) of the 
     Commodity Exchange Act (7 U.S.C. 6s(e)), as added by section 
     731 of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act, is amended by adding at the end the following 
     new paragraph:
       ``(4) Applicability with respect to counterparties.--The 
     requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), 
     including the initial and variation margin requirements 
     imposed by rules adopted pursuant to paragraphs (2)(A)(ii) 
     and (2)(B)(ii), shall not apply to a swap in which a 
     counterparty qualifies for an exception under section 
     2(h)(7)(A), or an exemption issued under section 4(c)(1) from 
     the requirements of section 2(h)(1)(A)

[[Page H66]]

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

     SEC. 303. IMPLEMENTATION.

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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Neugebauer) and the gentlewoman from New York (Mrs. Carolyn 
B. Maloney) each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. NEUGEBAUER. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to insert extraneous material for the Record on H.R. 26, currently 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. NEUGEBAUER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, for those of you watching at home today, this is not a 
C-SPAN rerun. I stand before you today to discuss the Terrorism Risk 
Insurance Program Reauthorization Act, a bill that passed this House 
417-7 at the end of the previous Congress.
  This bill is a result of long and difficult bicameral and bipartisan 
negotiations. But for whatever reason, the previous Senate decided that 
it was more important to go home a couple of days earlier rather than 
reauthorize the TRIA program. As a result, the program expired at the 
end of the year.
  So, today, the House will act on this important piece of legislation 
once again. Doing so will provide certainty to the terrorism risk 
insurance market and ensure that the American economy remains resilient 
against the threat of terrorism.
  Congress passed the Terrorism Risk Insurance Act of 2002 in the 
aftermath of 9/11. It was intended to provide a 2-year transition 
period in which the market participants could develop resources that 
would enable them to offer private terrorism insurance coverage once 
the program expired. For various reasons, that transition has not taken 
hold.
  Throughout the last 2 years, my subcommittee learned how evolved the 
terrorism risk insurance marketplace has become since the last 
reauthorization. Since the advent of TRIA in 2002, markets have 
stabilized, risk management practices have improved, terrorism risk 
modeling and underwriting has advanced, and the price of terrorism risk 
coverage has actually declined by 70 percent.
  But we have also learned that this evolution of TRIA has failed to 
keep up with marketplace realities. In fact, the program remains 
largely unchanged over the last 12 years. This has hindered the growth 
of private market participation in terrorism risk insurance and 
resulted in a bad deal for the taxpayers.
  The bill before us today is an effort to recognize and to keep pace 
with the market developments of the terrorism risk insurance 
marketplace over the past decade. The bill strengthens taxpayer 
protections without altering the program's fundamental functions, 
brings greater certainty and stability to the terrorism risk market, 
and lays a foundation for a more robust private market for terrorism 
risk.
  With regard to the taxpayer protection, the program's trigger doubles 
from $100 million to $200 million. It also decreases the Federal share 
of insurers' losses from 85 percent to 80 percent and enhances the 
taxpayer repayment requirements. And for the first time, we will have 
meaningful data on the program to increase accountability and 
transparency.
  To provide certainty, the program is extended for 6 years but makes 
no changes for the first year so that the market will have time to 
adjust. It also clarifies it streamlines the terrorism certification 
process so that policyholders are better protected.
  Most importantly, the bill today creates a framework that will allow 
for a more healthy private market terrorism risk over time that slowly 
replaces taxpayer-funded reinsurance with private sector capital.
  Finally, the bill before us today includes some bipartisan reforms 
that will help boost the economy and job opportunities for all 
Americans. These Dodd-Frank fixes will help America's hardworking 
farmers, ranchers, and business owners. They did not cause the 
financial crisis, and they deserve immediate relief.
  I am also proud of the inclusion of the reestablishment of the 
National Association of Registered Agents and Brokers, or NARAB, which 
is an efficient and effective way to enable insurance agents and 
brokers to be licensed on a multistate basis while retaining essential 
State regulatory authority.
  I thank Chairman Hensarling for trusting me to reform this important 
program, and I urge my colleagues to vote ``yes'' on H.R. 26.
  I reserve the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield myself such 
time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 26, the TRIA 
Reauthorization Act of 2015. This bill passed in the last Congress 
overwhelmingly 417-7.
  I first want to thank Speaker Boehner and Leader Pelosi for acting so 
quickly to reauthorize the Terrorism Risk Insurance Act, or TRIA. 
Unfortunately, this critical program expired on January 1, and unless 
Congress swiftly reauthorizes TRIA, our economy will be dangerously 
exposed if we have another terrorist attack.
  In fact, one of the financial rating agencies--Fitch--has said that 
if Congress doesn't reauthorize TRIA by the end of January, they are 
going to start downgrading companies and major construction projects, 
which would hurt the American economy. The other rating agencies have 
made equally strong statements about the importance to reauthorize 
TRIA.
  Already, companies are having trouble getting terrorism insurance, 
and many companies that had terrorism insurance have now lost it 
because there were clauses written into their policies that said if 
TRIA is not there they do not have the insurance coverage.
  I also want to thank very much Chairman Hensarling and Chairman 
Neugebauer, as well as Ranking Member Waters and the Democrats on the 
Financial Services Committee, for their very hard work on this bill, 
which represents a true bipartisan compromise. I especially want to 
thank my colleagues from New York, Peter King and Senator Schumer, who 
have worked very hard on this bill, which is critical to the State of 
New York, and I would say every State in our Union.
  I believe that this compromise will ensure that terrorism insurance 
remains available and at affordable prices. This has always been the 
purpose of TRIA, and I believe that this bill will accomplish that 
goal.
  After the last terrorist attack on our homeland--9/11--insurers 
realized that they couldn't accurately model for terrorism risk--it was 
simply too unpredictable--and the market for terrorism insurance 
completely shut down. Without terrorism insurance, all construction 
stopped in New York City. We couldn't build anything, and thousands and 
thousands of jobs were lost.
  In response, Congress came together in a bipartisan way and passed 
TRIA, which provides a government backstop for terrorism insurance. The 
goal of TRIA was to make terrorism insurance both available and 
affordable, and that is exactly what it has done. This has come at no 
additional expense whatsoever or cost to the taxpayer.
  Initially, the House TRIA bill raised the trigger for the 
government's backstop by a whopping 500 percent from

[[Page H67]]

$100 million to $500 million. This would have forced small- and medium-
sized insurers out of the market entirely and would have actually 
reduced the amount of terrorism insurance available to American 
businesses.
  I was strongly opposed to increasing the trigger to $500 million 
because it would make terrorism insurance unavailable and unaffordable 
to businesses all across this country.
  Fortunately, this compromise bill will only raise the trigger for the 
government backstop from $100 million to $200 million. This modest 
increase will ensure that small- and medium-sized insurers are not 
forced out of the market entirely, while also protecting taxpayers, and 
I fully support this compromise approach.
  This bill also slightly increases the amount that the government 
recoups from the industry after TRIA is triggered, which will ensure 
that taxpayers are fully repaid for TRIA if it is needed.
  Importantly, the compromise does not include the so-called 
bifurcation proposal, which would have treated nuclear, biological, 
chemical, and radiological attacks differently from other so-called 
conventional attacks. This made no sense whatsoever, and this 
compromise sensibly drops this proposal entirely. A terrorist attack is 
a terrorist attack.
  Finally, I am pleased that the bill reauthorizes TRIA for a full 6 
years. This will provide much needed certainty to businesses across the 
country as they expand and create more American jobs. Support for 
reauthorization of TRIA is deep and it is strong in the business 
community across this country.
  Mr. Speaker, I enter into the Record a letter from 28 different 
business stakeholders strongly supporting the reauthorization and the 
need for TRIA.

       Dear Representative: American businesses strongly support 
     H.R. 26--the Terrorism Risk Insurance Program Reauthorization 
     Act of 2015. This bill is the same as the TRIA legislation 
     that passed the House by a bipartisan vote of 417-7 on 
     December 10, 2014. Our coalition represents a diverse and 
     broad majority of business stakeholders. We urge you to 
     SUPPORT the bill when it is considered under suspension of 
     the rules this week.
       The Terrorism Risk Insurance Act is vital to the millions 
     of businesses, job creators, and workers across the country 
     reliant on TRIA to secure terrorism insurance and protect our 
     economic growth. Following the attacks of September 11, 2001, 
     Congress created TRIA to address a void in the marketplace, 
     foster economic stability, and provide certainty to for-
     profit and non-profit entities across the country. For the 
     past dozen years, the United States has relied on TRIA as a 
     fiscally responsible terrorism risk management plan to 
     protect taxpayers and our national security and stability.
       It is critical that Congress act immediately to keep our 
     terrorism insurance protection program in place. We urge your 
     support of this important bill.
           Sincerely,
       American Association of Managing General Agents (AAMGA),
       American Gaming Association (AGA),
       American Hotel & Lodging Association (AH&LA),
       American Insurance Association (AIA),
       American Land Title Association (ALTA),
       American Society of Workers Compensation Professionals 
     (AmCOMP),
       Associated Builders and Contractors (ABC),
       California Insurance Wholesalers Association (CIWA),
       CCIM Institute,
       Coalition to Insure Against Terrorism (CIAT),
       Council of Insurance Agents and Brokers (CIAB),
       CRE Finance Council (CREFC),
       Financial Services Roundtable (FSR),
       Independent Insurance Agents & Brokers of America (Big 
     ``I'').
       Institute of Real Estate Management (IREM),
       Mortgage Bankers Association (MBA),
       National Apartment Association (NAA),
       National Association of Home Builders (NAHB),
       National Association of Mutual Insurance Companies (NAMIC),
       National Association of Real Estate Investment Trusts 
     (NAREIT),
       National Association of REALTORS  (NAR),
       National Multifamily Housing Council (NMHC),
       Property Casualty Insurers Association of America (PCI),
       Reinsurance Association of America (RAA),
       Texas Surplus Lines Association (TSLA),
       The Real Estate Roundtable (The Roundtable),
       The Risk and Insurance Management Society (RIMS),
       U.S. Chamber of Commerce.

  Mrs. CAROLYN B. MALONEY of New York. The bill also includes the NARAB 
bill--the National Association of Registered Agents and Brokers--which 
has passed this Congress multiple times, many, many times, and this 
would merely recognize insurance brokers and agents licensed in other 
States across this country, increasing efficiency and saving and 
reducing costs for these businesses.
  I urge my colleagues to vote for TRIA because it is the right thing 
to do for America, and I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Speaker, I enter into the Record an exchange of 
letters between the Financial Services Committee and the House 
Agriculture Committee.

                                         House of Representatives,


                                     Committee on Agriculture,

                                  Washington, DC, January 7, 2015.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairman Hensarling: I am writing concerning H.R. 26, 
     Terrorism Risk Insurance Program Reauthorization Act of 2015.
       As you know, provisions of H.R. 26 are within the 
     jurisdiction of the Committee on Agriculture. In order to 
     expedite floor consideration of the bill, the Committee on 
     Agriculture will forgo action on H.R. 26. Further, the 
     Committee will not oppose the bill's consideration on the 
     suspension calendar. This is also being done with the 
     understanding that it does not in any way prejudice the 
     Committee with respect to the appointment of conferees or its 
     jurisdictional prerogatives on this or similar legislation.
       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.R. 26, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during Floor 
     consideration.
           Sincerely,
                                               K. Michael Conaway,
     Chairman.
                                  ____

                                         House of Representatives,


                              Committee on Financial Services,

                                  Washington, DC, January 7, 2015.
     Hon. K. Michael Conaway,
     Chairman, Committee on Agriculture, Longworth House Office 
         Building, Washington, DC.
       Dear Chairman Conaway: Thank you for your letter of even 
     date herewith regarding H.R. 26, the Terrorism Risk Insurance 
     Program Reauthorization Act of 2015.
       I am most appreciative of your decision to forego 
     consideration of H.R. 26 so that it may move expeditiously to 
     the House floor. I acknowledge that although you are waiving 
     formal consideration of the bill, the Committee on 
     Agriculture is in no way waiving its jurisdiction over any 
     subject matter contained in the bill that falls within its 
     jurisdiction. In addition, if a conference is necessary on 
     this legislation, I will support any request that your 
     committee be represented therein.
       Finally, I shall be pleased to include your letter and this 
     letter in the Congressional Record during floor consideration 
     of H.R. 26.
           Sincerely,
                                                   Jeb Hensarling,
                                                         Chairman.

  Mr. NEUGEBAUER. Mr. Speaker, I yield 3 minutes to the gentleman from 
Texas (Mr. Conaway), my neighbor to the south, our new committee 
chairman for the House Agriculture Committee.
  Mr. CONAWAY. Mr. Speaker, I thank Mr. Neugebauer for yielding.
  I rise today in support of H.R. 26, a bill to extend the expiration 
date of the Terrorism Risk Insurance Act.
  I want to thank my good friend and vice chairman of the Agriculture 
Committee, Randy Neugebauer, for his work in shepherding this bill to 
the floor again.
  I would also like to thank him and Chairman Hensarling for fighting 
hard to include the Business Risk Mitigation and Price Stabilization 
Act as title III of today's bill. The House Committee on Agriculture, 
along with the Financial Services Committee, has made moving this 
legislation a priority.
  Despite the lengthy title, the Business Risk Mitigation and Price 
Stabilization Act is not a complicated bill. It fulfills the promise 
that this body made to our farmers, ranchers, and small businesses when 
Dodd-Frank was drafted and signed into law that end users would not be 
treated as financial firms.

                              {time}  1245

  Yet regulators have narrowly interpreted the exemptions in the black 
letter of the law, forcing some businesses to leave capital idle in 
margin accounts, rather than investing in new production and creating 
jobs.
  Forcing businesses to post margin not only ties up capital, but also 
makes it more expensive for firms to

[[Page H68]]

utilize the risk management tools that they need to protect their 
businesses from uncertainty.
  Today's bill clarifies in statute that Congress meant what it said 
when it exempted end users from margin and clearing requirements. 
Specifically, it ensures that those businesses which are exempt from 
clearing their hedges are also exempt from margining those hedges.
  This well-reasoned legislation has broad bipartisan support. As a 
stand-alone bill, the House overwhelmingly supported it last year in 
June by a vote of 411-12. Since then, we have passed it four more 
times--and if we pass it today, a fifth time--which means we will keep 
doing it until we get it right.
  I am hopeful that with today's vote, we can finally offer farmers, 
ranchers, and businesses the relief we promised them almost 5 years 
ago.
  Again, I thank Chairman Hensarling and Chairman Neugebauer for 
including the Business Risk Mitigation and Price Stabilization Act in 
today's bill, and I urge my colleagues to support H.R. 26.

                                         House of Representatives,


                                     Committee on Agriculture,

                                  Washington, DC, January 7, 2014.
       Mr. Speaker: I am pleased to see the inclusion H.R. 634, 
     Business Risk Mitigation and Price Stability Act, from the 
     113th Congress as Title III of the Terrorism Risk Insurance 
     Program Reauthorization Act. This language, which was also 
     included as Subtitle of Title III of H.R. 4413, Customer 
     Protection and End-User Relief Act, from the 113th Congress 
     provides an important protection to end-users from costly 
     margining requirements that will divert much needed capital 
     away from job creation.
       In support of this title, I would like to request that the 
     pertinent portions of the Committee on Agriculture report to 
     accompany H.R. 4413 be included in the appropriate place in 
     the Congressional Record.
           Sincerely,
                                               K. Michael Conaway,
     Chairman.
                                  ____


                        Title 3--End User Relief


        SUBTITLE A--END-USER EXEMPTION FROM MARGIN REQUIREMENTS

     Section 311--End-user margin requirements
       Section 311 amends Section 4s(e) of the Commodity Exchange 
     Act (CEA) as added by Section 731 of the Dodd-Frank Act to 
     provide an explicit exemption from margin requirements for 
     swap transactions involving end-users that qualify for the 
     clearing exception under 2(h)(7)(A).
       ``End-users'' are thousands of companies across the United 
     States who utilize derivatives to hedge risks associated with 
     their day-to-day operations, such as fluctuations in the 
     prices of raw materials. Because these businesses do not pose 
     systemic risk, Congress intended that the Dodd-Frank Act 
     provide certain exemptions for end-users to ensure they were 
     not unduly burdened by new margin and capital requirements 
     associated with their derivatives trades that would hamper 
     their ability to expand and create jobs.
       Indeed, Title VII of the Dodd-Frank Act includes an 
     exemption for non-financial end-users from centrally clearing 
     their derivatives trades. This exemption permits end-users to 
     continue trading directly with a counterparty, (also known as 
     trading ``bilaterally,'' or over-the-counter (OTC)) which 
     means their swaps are negotiated privately between two 
     parties and they are not executed and cleared using an 
     exchange or clearinghouse. Generally, it is common for non-
     financial end-users, such as manufacturers, to avoid posting 
     cash margin for their OTC derivative trades. End-users 
     generally will not post margin because they are able to 
     negotiate such terms with their counterparties due to the 
     strength of their own balance sheet or by posting non-cash 
     collateral, such as physical property. End-users typically 
     seek to preserve their cash and liquid assets for 
     reinvestment in their businesses. In recognition of this 
     common practice, the Dodd-Frank Act included an exemption 
     from margin requirements for end-users for OTC trades.
       Section 731 of the Dodd-Frank Act (and Section 764 with 
     respect to security-based swaps) requires margin requirements 
     be applied to swap dealers and major swap participants for 
     swaps that are not centrally cleared. For swap dealers and 
     major swap participants that are banks, the prudential 
     banking regulators (such as the Federal Reserve or Federal 
     Deposit Insurance Corporation) are required to set the margin 
     requirements. For swap dealers and major swap participants 
     that are not banks, the CFTC is required to set the margin 
     requirements. Both the CFTC and the banking regulators have 
     issued their own rule proposals establishing margin 
     requirements pursuant to Section 731.
       Following the enactment of the Dodd-Frank Act in July of 
     2010, uncertainty arose regarding whether this provision 
     permitted the regulators to impose margin requirements on 
     swap dealers when they trade with end-users, which could then 
     result in either a direct or indirect margin requirement on 
     end-users. Subsequently, Senators Blanche Lincoln and Chris 
     Dodd sent a letter to then-Chairmen Barney Frank and Collin 
     Peterson on June 30, 2010, to set forth and clarify 
     congressional intent, stating:
       The legislation does not authorize the regulators to impose 
     margin on end-users, those exempt entities that use swaps to 
     hedge or mitigate commercial risk. If regulators raise the 
     costs of end-user transactions, they may create more risk. It 
     is imperative that the regulators do not unnecessarily divert 
     working capital from our economy into margin accounts, in a 
     way that would discourage hedging by end-users or impair 
     economic growth.
       In addition, statements in the legislative history of 
     section 731 (and Section 764) suggests that Congress did not 
     intend, in enacting this section, to impose margin 
     requirements on nonfinancial end-users engaged in hedging 
     activities, even in cases where they entered into swaps with 
     swap entities.
       In the CFTC's proposed rule on margin, it does not require 
     margin for uncleared swaps when non-bank swap dealers 
     transact with non-financial end-users. However, the 
     prudential banking regulators proposed rules would require 
     margin be posted by non-financial end-users above certain 
     established thresholds when they trade with swap dealers that 
     are banks. Many of end-users' transactions occur with swap 
     dealers that are banks, so the banking regulators' proposed 
     rule is most relevant, and therefore of most concern, to end-
     users.
       By the prudential banking regulators' own terms, their 
     proposal to require margin stems directly from what they view 
     to be a legal obligation under Title VII. The plain language 
     of section 731 provides that the Agencies adopt rules for 
     covered swap entities imposing margin requirements on all 
     non-cleared swaps. Despite clear congressional intent, those 
     sections do not, by their terms, exclude a swap with a 
     counterparty that is a commercial end-user. By providing an 
     explicit exemption under Title VII through enactment of this 
     provision, the prudential regulators will no longer have a 
     perceived legal obligation and the congressional intent they 
     acknowledge in their proposed rule will be implemented.
       The Committee notes that in September of 2013, the 
     International Organization of Securities Commissions (IOSCO) 
     and the Bank of International Settlements published their 
     final recommendations for margin requirements for uncleared 
     derivatives. Representatives from a number of U.S. 
     regulators, including the CFTC and the Board of Governors of 
     the Federal Reserve participated in the development of those 
     margin requirements, which are intended to set baseline 
     international standards for margin requirements. It is the 
     intent of the Committee that any margin requirements 
     promulgated under the authority provided in Section 4s of the 
     Commodity Exchange Act should be generally consistent with 
     the international margin standards established by IOSCO.
       On March 14, 2013, at a hearing entitled ``Examining 
     Legislative Improvements to Title VII of the Dodd-Frank 
     Act,'' the following testimony was provided to the Committee 
     with respect to provisions included in Section 311:
       In approving the Dodd-Frank Act, Congress made clear that 
     end-users were not to be subject to margin requirements. 
     Nonetheless, regulations proposed by the Prudential Banking 
     Regulators could require end-users to post margin. This stems 
     directly from what they view to be a legal obligation under 
     Title VII. While the regulations proposed by the CFTC are 
     preferable, they do not provide end-users with the certainty 
     that legislation offers. According to a Coalition for 
     Derivatives End-Users survey, a 3% initial margin requirement 
     could reduce capital spending by as much as $5.1 to $6.7 
     billion among S&P 500 companies alone and cost 100,000 to 
     130,000 jobs. To shed some light on Honeywell's potential 
     exposure to margin requirements, we had approximately $2 
     billion of hedging contracts outstanding at year-end that 
     would be defined as a swap under Dodd-Frank. Applying 3% 
     initial margin and 10% variation margin implies a potential 
     margin requirement of $260 million. Cash deposited in a 
     margin account cannot be productively deployed in our 
     businesses and therefore detracts from Honeywell's financial 
     performance and ability to promote economic growth and 
     protect American jobs.--Mr. James E. Colby, Assistant 
     Treasurer, Honeywell International Inc.
       On May 21, 2013, at a hearing entitled ``The Future of the 
     CFTC: Market Perspectives,'' Mr. Stephen O'Connor, Chairman, 
     ISDA, provided the following testimony with respect to 
     provisions included in Section 311:
       Perhaps most importantly, we do not believe that initial 
     margin will contribute to the shared goal of reducing 
     systemic risk and increasing systemic resilience. When robust 
     variation margin practices are employed, the additional step 
     of imposing initial margin imposes an extremely high cost on 
     both market participants and on systemic resilience with very 
     little countervailing benefit. The Lehman and AIG situations 
     highlight the importance of variation margin. AIG did not 
     follow sound variation margin practices, which resulted in 
     dangerous levels of credit risk building up, ultimately 
     leading to its bailout. Lehman, on the other hand, posted 
     daily variation margin, and while its failure caused shocks 
     in many markets, the variation margin prevented outsized 
     losses in the OTC derivatives markets. While industry and 
     regulators agree on a robust variation margin regime 
     including all

[[Page H69]]

     appropriate products and counterparties, the further step of 
     moving to mandatory IM [initial margin] does not stand up to 
     any rigorous cost-benefit analysis.
       Based on the extensive background that accompanies the 
     statutory change provided explicitly in Section 311, the 
     Committee intends that initial and variation margin 
     requirements cannot be imposed on uncleared swaps entered 
     into by cooperative entities if they similarly qualify for 
     the CFTC's cooperative exemption with respect to cleared 
     swaps. Cooperative entities did not cause the financial 
     crisis and should not be required to incur substantial new 
     costs associated with posting initial and variation margin to 
     counterparties. In the end, these costs will be borne by 
     their members in the form of higher prices and more limited 
     access to credit, especially in underserved markets, such as 
     in rural America. Therefore, the Committee's clear intent 
     when drafting Section 311 was to prohibit the CFTC and 
     prudential regulators, including the Farm Credit 
     Administration, from imposing margin requirements on 
     cooperative entities.

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield 3 minutes 
to the gentleman from the great State of Georgia (Mr. Scott).
  Mr. DAVID SCOTT of Georgia. Mr. Speaker, I certainly want to 
recognize and appreciate the gentlewoman from Manhattan for the 
excellent leadership job that she is doing on this.
  Mr. Speaker, this bill, TRIA, is so important. It is very important 
to note that it hasn't cost the taxpayers anything, and it has been 
very successful where needed; but, Mr. Speaker, this bill contains 
another very important piece: we affectionately call it NARAB, which is 
the National Association of Registered Agents and Brokers--just think 
if TRIA and the NARAB portion of this bill had been in place in 1999, 
before we had the terrorism risk, before we had the terrorist strikes 
of 9/11, and other terrorist attacks.
  But in the middle of all of that, even with the downturn of the 
economic calamity, standing in the middle of this storm were our 
insurance agents, the lifeline of the American people. What NARAB is 
doing here is making sure that we streamline the process and make sure 
that our insurance agents are able to operate across State lines.
  Mr. Speaker, we all realize that insurance is a State-licensed, 
State-authorized operation. NARAB does not interfere with that. As a 
matter of fact, all 50 of the insurance agents of our States have all 
agreed with NARAB.
  This is an important bill because our insurance agents, our small 
businesses, are the lifeline in tragedy and distress. We live in a 
highly mobile society now. It is very important for our agents to be 
able to go across State lines with one licensing procedure that is held 
to the highest standard while at the same time being licensed in their 
own State.
  We have had great cooperation from all of our insurance agents, 
including the insurance agents' association. Our financial advisers and 
our brokers all agree.
  The other thing, Mr. Speaker, is that many of us on the Financial 
Services Committee have been working on this measure for 10 years. For 
10 years, we have been toiling in the vineyards on this and so have 
others in the Senate.
  Now is the time to give our insurance agents the respect and the 
nobility of purpose of their very fine profession and at the same time 
reach our primary goal, which is to give the American insurance 
consumers the choice, the competition, and the benefits that they need.
  Mr. NEUGEBAUER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I want to thank the gentleman from Georgia for his 
tireless efforts on NARAB. I think we are going to get it done this 
time. I know he has worked on it a number of years. He and I have 
worked together to try to get this done. It is a commonsense piece of 
legislation, and I am hopeful that this will be the time to get it 
passed.
  I am now pleased to yield 3 minutes to the gentleman from New York 
(Mr. King), who has been a tireless advocate for the TRIA program.
  Mr. KING of New York. Mr. Speaker, I thank Chairman Neugebauer for 
yielding and for all his efforts on this. I also appreciate the fact 
that he said my efforts were tireless. Chairman Hensarling, at times, 
thought they were tiresome.
  I want to thank the chairman for putting a good spin on it, but very 
seriously, I want to thank him for his efforts. This is a bill where a 
number of us started off from different positions, from different 
perspectives. In true legislative form, we came together.
  This bill that we passed in December was a solid bill. Unfortunately, 
it was not taken up by the Senate, but it is essential that we pass it 
today because, as my good friend Mrs. Maloney said, this could have a 
devastating effect on the construction industry and on the American 
economy if it is not renewed as quickly as possible. This has to be 
reauthorized. It is absolutely essential.
  I want to thank Chairman Hensarling again for his efforts throughout 
this. Again, it has been a long process, but we stayed at it, and I 
thank him for that. Obviously, I thank Mrs. Maloney and the ranking 
member, Ms. Waters. Also, Mr. Capuano has been a fighter on this from 
the start. Again, we came together.
  This is a bill that, as I have said a number of times, was absolutely 
essential after September 11, when terrorism risk insurance could not 
be obtained. It even became more obvious as time went on how essential 
it was, how we desperately need it, and we have to preserve it.
  Also, not one Federal dollar has been expended on it; yet billions of 
dollars in revenue, construction projects, jobs, and expansion of the 
economy has resulted because of it.
  We are voting today, in a way, on a bill which, as Mrs. Maloney said, 
is going to go on for another 6 years. That gives it permanence and 
stability. It gives the construction industry, the real estate 
industry, and the people on the ground who want those construction jobs 
the ability to go forward. It lets municipalities know there is going 
to be construction going ahead in their jurisdictions. It is a plus-
plus all the way.
  The changes that were made, the reforms that were made, I didn't 
believe they had to be done, but the fact is they are done, and they 
are not going to change the overall impact. They are not going to have 
any meaningful determinative effect whatsoever.
  Again, I am proud to support this bill in all its aspects. Mr. Scott 
from Georgia had a great concern about the insurers. I share that also. 
I think it is important that be in this bill. I know that was a bit of 
an obstacle in the Senate, but it shouldn't be. It had overwhelming 
support in the House. I know the great majority of the Members in the 
Senate support it.
  Now, we pass this on suspension today, sending a strong signal how we 
support this bill in its entirety. From my conversations--and I think 
Mrs. Maloney has had the same conversations--we feel confident that the 
Senate is going to pass it.
  When they do, it will be a victory for the American people, a victory 
for American business, a victory for American labor, and a victory for 
the American people to show that we have fought all the way back from 
the horrors of 9/11, and we are going to make sure that never again are 
we put in that position as far as the damage it can have on our 
economy.
  I would end this by saying that when we saw the attack in Paris 
today, we realized what can happen with a terrorist attack, how it can 
happen at any moment, and why it is essential this be reauthorized.
  Again, I thank the chairman for his efforts and patience over the 
last several years.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I do want to 
comment that it has been reported in the press that the Senate has 
announced they will bring up this bill next week, which is very, very 
important to move it forward.
  I yield 3 minutes to the gentleman from the great State of 
Massachusetts (Mr. Capuano), who has been a fighter, advocate, and an 
effective spokesperson.
  Mr. CAPUANO. I thank the gentlewoman for yielding.
  Mr. Speaker, I, too, want to add my words congratulating everybody 
for finally getting this done, but I also want to be real clear. I wish 
we could have done this a year ago, so we could have been working on 
things that we have some differences on that need to be done.
  Where we are today on this bill could have easily been reached in a 
bipartisan manner with 400-plus Members voting for it over a year ago. 
I am only aware of two outside groups--both

[[Page H70]]

think tanks, not in business, not in labor--that opposed this bill; yet 
we let them run the agenda here because people couldn't get off the 
dime.
  For me, that is a huge mistake. We are here to make agreements, to 
make compromise, to get things done. For instance, we are sitting here 
today with Fannie and Freddie not resolved after all these years 
because we can't get off the dime of a few ideological disagreements 
that clearly are not going to be settled, the way they are going.
  There is plenty of room for compromise, plenty of room to get 
together and talk about it and get something done for the American 
people and the American economy.
  That is just one example. We have to get beyond the outside 
ideological groups telling us what we can and cannot do. Even if we 
agree with them, we have to understand we are elected to lead, to 
argue, and then to compromise.
  We are here today, finally. Thank you. Let's not get bogged down any 
further in this new Congress. We will have our differences, and we will 
have some differences that cannot be resolved. This was never one of 
them. I think there is plenty of room on Fannie and Freddie. I think 
there are issues on insurance.
  I think there are plenty of issues we can and should work on. We both 
have our outside groups to deal with. We both have to turn to them with 
loving attention and tell you: ``We love you, we agree with you, but I 
was elected to move the ball forward.''
  That is what we are doing here today, and I congratulate those people 
that have finally done it, including the two people leading this bill, 
both the chairman and the ranking member of the committee, and other 
members of this committee that have worked on this for so long.
  I can't honestly say that I am looking forward to doing this again in 
6 years, but I hope that when we get there, we can do it a little bit 
more quickly than we did this time.
  Mr. NEUGEBAUER. I thank the gentleman from Massachusetts. I want to 
tell him how much I enjoyed working with him. He was the ranking Member 
of the Housing and Insurance Subcommittee, and we had an opportunity to 
work together. It was a pleasure to do.
  Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman 
from Indiana (Mr. Stutzman), a distinguished member of the Financial 
Services Committee.
  Mr. STUTZMAN. Mr. Speaker, I rise today in support of the Terrorism 
Risk Program Reauthorization Act of 2015.
  Mr. Speaker, as we have all recently seen, terrorism and violence 
continues to be a threat not only to our friends on the other side of 
the globe, but also to our homeland. The rise of ISIS has demonstrated 
that the American people and our interests are constant targets.
  Because these dangers continue to grow, it is our job to make sure we 
are taking the necessary steps to protect ourselves. The terror attacks 
on September 11, 2001, not only brought a devastating loss of innocent 
human life, they also wreaked havoc on our economy, costing insurers 
tens of billions of dollars, taking years to recover.
  We have to take the necessary steps to protect and prevent any 
physical harm to America and make sure we are doing what we can to 
protect our economic interests. That is what today's legislation is all 
about.
  When first passed in 2002, TRIA provided much-needed stability to 
ease any economic pain of another attack. Today's reauthorization will 
continue to provide a necessary backstop and the financial security 
that will allow major commercial and real estate projects so vital to 
the economy to move forward.
  Reauthorizing this legislation is an opportunity for both parties to 
stand together in a bipartisan fashion and strengthen our national 
security.
  I would like to thank Chairman Hensarling, Representative Neugebauer, 
and the rest of the members of the Financial Services Committee for 
their hard work on this issue. It has taken time to get to this point, 
but I believe this is a good way for us to start this Congress, working 
together to pass a bill that is in the best interest of our national 
security.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield 3 minutes 
to the gentleman from the great State of Maryland (Mr. Hoyer), the 
distinguished minority leader.
  (Mr. HOYER asked and was given permission to revise and extend his 
remarks.)
  Mr. HOYER. Mr. Speaker, I thank the gentlewoman from New York for 
yielding. I appreciate her work. I also appreciate the work of Mr. 
Neugebauer for bringing this bill to the floor.
  This bill could have been--should have been, as Mr. Capuano said--
passed a long time ago with an overwhelming vote. I brought this up on 
regular conferences and colloquies that I had with Mr. Cantor and more 
recently with Mr. McCarthy, but it is always timely to do the right 
thing. Today, we are doing the right thing, and I rise in strong 
support of the passage of this bill.
  Reauthorizing the Terrorism Risk Program Reauthorization Act will 
provide much-needed certainty to businesses and insurers, certainty 
that will help our economy and prevent harm to job creation. I believe 
Congress has the responsibility to reauthorize the TRIA program, and I 
encourage all of my colleagues to join me in voting to do so today.

                              {time}  1300

  This program expired at the end of 2014, and Congress must take 
action on TRIA without delay. I would reiterate that this program as 
incorporated in this piece of legislation has had well over 250 votes 
for at least the last year and a half, but it is never too late to do 
the right thing. The longer Congress waits, the worse the effects will 
be on our economy and job creation.
  I want to thank Ranking Member Waters. I want to thank Ranking Member 
Velazquez for her work on this as well and, as I said, the leadership 
on the majority side that finally got us to a point where we could make 
an agreement last year.
  We passed a bill last year. I regret that the Senate didn't pass it, 
but I applaud the majority's bringing it to the floor as one of the 
first pieces of business that we do. All sides deserve, therefore, 
credit for their efforts to help restore certainty to businesses and 
protect against the slowdown in job growth that would result from not 
reauthorizing TRIA.
  So, today we do the right thing; we do it in a bipartisan fashion. 
Let's hope we can continue to do this.
  Mr. NEUGEBAUER. Mr. Speaker, it is now my pleasure to yield 1 minute 
to the gentleman from New Hampshire (Mr. Guinta), a distinguished 
member of the Financial Services Committee.
  Mr. GUINTA. Mr. Speaker, I rise in strong support of H.R. 26, the 
Terrorism Risk Insurance Program Reauthorization Act of 2015. As the 
recent tragic events in Boston have shown, terrorism is still alive, 
and we must be ever vigilant in the fight against it.
  This overwhelmingly bipartisan piece of legislation will ensure 
market stability for Main Street, businesses, construction projects, 
public events, and more by maintaining their ability to access 
terrorism insurance to keep job-creating businesses and projects moving 
forward with certainty.
  TRIA is an important piece of legislation for protecting taxpayers by 
requiring insurers to step up and manage more of their own risk. I urge 
my colleagues to vote ``yes,'' and I ask that the Senate bring up this 
bill immediately.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield 2\1/2\ 
minutes to my good friend from the great State of New York (Ms. 
Velazquez), who is the ranking member on the Small Business Committee.
  (Ms. VELAZQUEZ asked and was given permission to revise and extend 
her remarks.)
  Ms. VELAZQUEZ. Mr. Speaker, I want to take this opportunity to thank 
the gentlelady from New York for yielding.
  Today, I call on my colleagues to reauthorize the Terrorism Risk 
Insurance Program, a public-private partnership that is vital to 
continued economic development across the country.
  Following the tragic events of 9/11, terrorism became uninsurable, 
the marketplace evaporated, and rates skyrocketed. Many businesses were 
impacted, causing job losses and hindering the recovery effort. To 
address the growing problem, Congress swiftly

[[Page H71]]

passed the Terrorism Risk Insurance Act, creating a Federal backstop 
and restoring coverage.
  Today I can say without a doubt, our efforts were successful. I have 
witnessed firsthand how this program has substantially helped New York 
City recover and prosper over the past 12 years. The program has also 
tripled the number of small businesses nationwide that have terrorism 
protection. As a direct result of TRIA, over 60 percent of small firms 
carry some form of coverage.
  Some stakeholders have already reported disruptions since TRIA lapsed 
last week, especially in high-risk cities such as New York. It should 
be noted that the lapse is not only affecting insurance coverage, but 
also the financing efforts of many job-creating construction projects.
  Is this bill perfect? No, but it will restore certainty to the 
marketplace and prevent a rate spike that could force two-thirds of 
small businesses out of the market.
  Mr. Speaker, acts of terrorism remain too risky to cover for the vast 
majority of carriers, especially for the small- and medium-sized firms 
that dominate the insurance industry. As a result, the Terrorism Risk 
Insurance Program, which has not cost taxpayers $1, continues to be a 
vital component of our economic growth and national security.
  Mr. Speaker, I urge my colleagues to support this bill.
  Mr. NEUGEBAUER. Mr. Speaker, I reserve the balance of my time.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I yield myself such 
time as I may consume.
  Mr. Speaker, we had other speakers scheduled from New York, but they 
are not on the floor now, so I would just like to say, in closing, that 
this is critically important legislation.
  I can speak from personal experience, having represented New York 
during and after 9/11, that after 9/11 you could not even build a hot 
dog stand. All construction stopped. No one could get any insurance. 
The only insurance available was from Lloyds of London, and it was 
incredibly expensive and people could not afford it. We lost thousands 
and thousands of jobs.
  And it happened also, when we came together and started to rebuild 
not only in New York but the Pentagon and Pennsylvania, I would say, of 
all the programs that this body put forward--and there were many, and I 
thank my colleagues on both sides of the aisle for their support--I 
truly believe that this particular one was certainly the most important 
in helping New York rebuild and rebound.
  I want to add that it did not cost our taxpayers one single dime. It 
is an innovative way to get building and construction happening across 
this country. So it is tremendously important to the economy. It is an 
important bill, and I am so pleased that it has been a bipartisan 
effort.
  This body passed the bill. It stalled in the Senate, but we do need 
to reauthorize it as swiftly and as quickly as possible. I hope it is 
an example of how this body can work together on legislation that is 
critical to this country to rebuild and expand the jobs and our economy 
and to help strengthen our country in other ways.
  So again I thank the leadership on both sides of the aisle for moving 
so swiftly to bring it to the floor and, really, to Mr. Neugebauer, who 
was the point person in many ways in the compromise legislation that 
moved forward.
  I urge my colleagues to vote for it. It is the right thing to do for 
America.
  Mr. Speaker, I yield back the balance of my time.
  Mr. NEUGEBAUER. Mr. Speaker, I yield myself as much time as I may 
consume.
  Mr. Speaker, in closing, I think what you can see by the comments 
today is that we have a bipartisan piece of legislation. It is a piece 
of legislation that passed overwhelmingly in the House in the 113th 
Congress. Unfortunately, it was not taken up by the Senate.
  This is a win-win bill. It does a number of really good things for 
the country; and, more importantly, for the taxpayers, it begins to 
bring reform in a program that originally was meant to be a temporary 
program but somehow has become a permanent program, beginning to 
stairstep-up the private market participation and stairstep-down the 
taxpayers' participation. It increases the trigger; it increases the 
amount of recovery that the taxpayers would be able to recover in the 
case of an event.

  Another thing you heard many people talk about is this end-user 
provision that is going to help farmers and ranchers and small 
businesses not have to put up additional capital so they can use that 
capital to create jobs for America.
  Another provision in this bill is the NARAB II, which is a small 
business provision allowing your local insurance agent, maybe he or she 
can sell insurance in multiple States by being a member of NARAB and 
being able to not have to get a license in each individual State, but 
if they are licensed and meet the qualifications in that State, that is 
recognized by other States.
  So this is a great bipartisan effort. It has been, as mentioned, a 
long process, and so I urge my colleagues to support H.R. 26.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Neugebauer) that the House suspend the rules 
and pass the bill, H.R. 26.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. NEUGEBAUER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________