As ordered reported by the Senate Committee on Banking, Housing, and Urban Affairs on June 6, 2013
S. 534 would establish the National Association of Registered Agents and Brokers (NARAB) and authorize it to license producers of insurance (mostly agents and brokers) to operate in multiple states. Under current law, each state establishes requirements for licensing insurance producers within that state; producers must comply with the requirements of each state where they are licensed to operate. Under the bill, insurance producers that join the NARAB would be able to obtain a license to act as a producer in any state other than their home state by meeting the NARAB’s eligibility requirements and paying certain fees.
CBO estimates that enacting S. 534 would increase revenues by $490 million and increase direct spending by $483 million; taken together, those effects would reduce the deficit by $7 million over the 2014-2023 period. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues. Implementing S. 534 would not have a significant net effect on discretionary spending.
S. 534 contains intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA). CBO estimates that the costs to state, local, and tribal governments of complying with the mandates would be less than $1 million in 2016 and each year thereafter. Those costs would not exceed the annual threshold for intergovernmental mandates established in UMRA ($75 million in 2013, adjusted annually for inflation). S. 534 contains no new private-sector mandates as defined in UMRA.