To allow States to opt-out of participation in the National Association of Registered Agents and Brokers.

SA 2697. Mr. COBURN (for himself and Mr. McCain) submitted an
amendment intended to be proposed by him to the bill S. 1926, to delay
the implementation of certain provisions of the Biggert-Waters Flood
Insurance Reform Act of 2012 and to reform the National Association of
Registered Agents and Brokers, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of section 330 of subtitle C of title III of the
Gramm-Leach-Bliley Act, as added by section 202(a), insert
the following:
``(c) State Opt-out-rights.--
``(1) In general.--Any State, as described in section
333(9)(A), may elect not to participate in the Association,
and insurance producers doing business in that State shall be
subject to all otherwise applicable insurance-related laws,
rules, and regulations of that State.
``(2) Procedure.--A State, as described in section
333(9)(A), that elects not to participate in the Association
under paragraph (1) shall do so by enacting legislation
indicating such election.
``(3) Effective date of opt-out.--
``(A) In general.--Except as provided in subparagraph (B),
the effective date of an election by a State, as described in
section 333(9)(A), not to participate in the Association
under paragraph (1) is 2 years after the date on which the
State enacts legislation under paragraph (2).
``(B) Immediately effective opt-out.--An election by a
State, as described in section 333(9)(A), not to participate
in the Association under paragraph (1) shall take effect upon
the enactment of legislation under paragraph (2) if such
legislation is enacted not later than 180 days after the date
of enactment of this Act.
``(4) Exclusion of insurance producers.--No insurance
producer, the home State, as described in section 333(9)(A),
of which has made an election not to participate in the
Association under paragraph (1), may become a member of the
Association.
``(5) Notification of opt-out.--A State, as described in
section 333(9)(A), that elects not to participate in the
Association under paragraph (1) shall notify the Board and
the primary insurance regulatory authority of each State of
such election.
``(6) Change in election.--
``(A) Opt-in.--A State, as described in section 333(9)(A),
that has elected not to participate in the Association under
paragraph (1) may elect to participate in the Association by
enacting legislation indicating such election.
``(B) Effective date of opt-in.--An election by a State, as
described in section 333(9)(A), to participate in the
Association under subparagraph (A) shall take effect upon the
enactment of the legislation indicating such election.
``(C) Notification of opt-in.--A State, as described in
section 333(9)(A), that has elected to participate in the
Association under subparagraph (A) shall notify the Board and
the primary insurance regulatory authority of each State of
such election.
In section 334 of subtitle C of title III of the Gramm-
Leach-Bliley Act, as added by section 202(a), strike
paragraph (9) and insert the following:
``(9) State.--The term `State'--
``(A) means any State, the District of Columbia, any
territory of the United States, Puerto Rico, Guam, American
Samoa, the Trust Territory of the Pacific Islands, the Virgin
Islands, and the Northern Mariana Islands; and
``(B) does not include any State (as described in
subparagraph (A)) that has made an election not to
participate in the Association under section 330(c)(1).
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