In the nature of a substitute.

SA 3229. Ms. STABENOW (for Ms. Collins) proposed an amendment to the
bill S. 2270, to clarify the application of certain leverage and risk-
based requirements under the Dodd-Frank Wall Street Reform and Consumer
Protection Act; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Insurance Capital Standards
Clarification Act of 2014''.

SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE AND RISK-
BASED CAPITAL REQUIREMENTS.

Section 171 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5371) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Business of insurance.--The term `business of
insurance' has the same meaning as in section 1002(3).
``(5) Person regulated by a state insurance regulator.--The
term `person regulated by a State insurance regulator' has
the same meaning as in section 1002(22).
``(6) Regulated foreign subsidiary and regulated foreign
affiliate.--The terms `regulated foreign subsidiary' and
`regulated foreign affiliate' mean a person engaged in the
business of insurance in a foreign country that is regulated
by a foreign insurance regulatory authority that is a member
of the International Association of Insurance Supervisors or
other comparable foreign insurance regulatory authority as
determined by the Board of Governors following consultation
with the State insurance regulators, including the lead State
insurance commissioner (or similar State official) of the
insurance holding company system as determined by the
procedures within the Financial Analysis Handbook adopted by
the National Association of Insurance Commissioners, where
the person, or its principal United States insurance
affiliate, has its principal place of business or is
domiciled, but only to the extent that--
``(A) such person acts in its capacity as a regulated
insurance entity; and
``(B) the Board of Governors does not determine that the
capital requirements in a specific foreign jurisdiction are
inadequate.
``(7) Capacity as a regulated insurance entity.--The term
`capacity as a regulated insurance entity'--
``(A) includes any action or activity undertaken by a
person regulated by a State insurance regulator or a
regulated foreign subsidiary or regulated foreign affiliate
of such person, as those actions relate to the provision of
insurance, or other activities necessary to engage in the
business of insurance; and
``(B) does not include any action or activity, including
any financial activity, that is not regulated by a State
insurance regulator or a foreign agency or authority and
subject to State insurance capital requirements or, in the
case of a regulated foreign subsidiary or regulated foreign
affiliate, capital requirements imposed by a foreign
insurance regulatory authority.''; and
(2) by adding at the end the following new subsection:
``(c) Clarification.--
``(1) In general.--In establishing the minimum leverage
capital requirements and minimum risk-based capital
requirements on a consolidated basis for a depository
institution holding company or a nonbank financial company
supervised by the Board of Governors as required under
paragraphs (1) and (2) of subsection (b), the appropriate
Federal banking agencies shall not be required to include,
for any purpose of this section (including in any
determination of consolidation), a person regulated by a
State insurance regulator or a regulated foreign subsidiary
or a regulated foreign affiliate of such person engaged in
the business of insurance, to the extent that such person
acts in its capacity as a regulated insurance entity.
``(2) Rule of construction on board's authority.--This
subsection shall not be construed to prohibit, modify, limit,
or otherwise supersede any other provision of Federal law
that provides the Board of Governors authority to issue
regulations and orders relating to capital requirements for
depository institution holding companies or nonbank financial
companies supervised by the Board of Governors.
``(3) Rule of construction on accounting principles.--
``(A) In general.--A depository institution holding company
or nonbank financial company supervised by the Board of
Governors of the Federal Reserve that is also a person
regulated by a State insurance regulator that is engaged in
the business of insurance that files financial statements
with a State insurance regulator or the National Association
of Insurance Commissioners utilizing only Statutory
Accounting Principles in accordance with State law, shall not
be required by the Board under the authority of this section
or the authority of the Home Owners' Loan Act to prepare such
financial statements in accordance with Generally Accepted
Accounting Principles.
``(B) Preservation of authority.--Nothing in subparagraph
(A) shall limit the authority of the Board under any other
applicable provision of law to conduct any regulatory or
supervisory activity of a depository institution holding
company or non-bank financial company supervised by the Board
of Governors, including the collection or reporting of any
information on an entity or group-wide basis. Nothing in this
paragraph shall excuse the Board from its obligations to
comply with section 161(a) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5361(a)) and
section 10(b)(2) of the Home Owners' Loan Act (12 U.S.C.
1467a(b)(2)), as appropriate.''.
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