S 2877 Introduced – TRIA Reauthorization

Last month Sen Tillis (R,NC) introduced S 2877, the Terrorism Risk Insurance Program Reauthorization Act of 2019. This bill contains essentially the same language adopted by the House in HR 4634 four days after this bill was introduced. The bill does include the language calling for the GAO to conduct a study on cyber terrorism and its coverage under the TRIA program.

Yesterday the bill was reported favorably without amendment or written report by the Senate Banking, Housing, and Urban Affairs Committee. I suspect that the House version of the bill will be taken up in the Senate under the unanimous consent process; maybe before the end of the year. This process will not allow for debate or an actual vote.

Bills Introduced – 11-14-19

Yesterday with both the House and Senate in session there were 75 bills introduced. One of those bills may receive additional coverage in this blog:

S 2877 A bill to reauthorize the Terrorism Risk Insurance Act of 2002, and for other purposes. Sen. Tillis, Thom [R-NC]

HR 4634 Introduced – TRIA Reauthorization

Last week Rep Waters (D,CA) introduced HR 4634, the Terrorism Risk Insurance Program Reauthorization Act of 2019. The bill is a clean, 10-year reauthorization of the TRIA program.

The bill would amend §108(a) of the Terrorism Risk Insurance Act of 2002 (15 USC 6701 note) by substituting ‘2030’ for ‘2020’ in the termination date. Extensions are also provided for the recoupment provisions of §103(e)(7)(E)(i).

Moving Forward

Waters is the Chair of the House Financial Services Committee to which this bill was assigned for consideration. The bill is currently scheduled for markup in Committee tomorrow. With three Committee Republicans on the list of cosponsors of the bill, it is almost certain that the bill will pass in Committee with substantial bipartisan support. The bill would be likely to be considered in the full House under the suspension of the rules process; limited debate, no floor amendments and a super-majority required for passage.

The last reauthorization of the TRIA program (PL 114-1) passed in both the House and the Senate with bipartisan support.

Commentary

The TRIA was designed to protect insurance companies from severe financial upsets from a major, 9/11 scale terrorist attack. The idea was that without this sort of federal protection that insurance companies would be forced to write their policies with terrorism riders that would disallow policies from paying out for terrorist attacks.

The one thing that Congress ought to consider with this bill is adding language that would specifically allow the TRIA to include a cyber-attack of the same magnitude as intended for physical terrorist attacks. This could be done by modifying the following portions of §102, Definitions:

(1) ACT OF TERRORISM.—

(A) CERTIFICATION.—The term ‘act of terrorism’ means any act that is certified by the Secretary, in consultation with the Secretary of Homeland Security, and the Attorney General of the United States—

(i) to be an act of terrorism;

(ii) to be a violent act, or an act that is dangerous to—

(I) human life;

(II) property; or

(III) infrastructure; or

(iii) to be a cyber threat (as defined in 6 USC 1501) that threatens and or effects a large scale disruption of:

(I) of power, fuel or water distribution;

(II) food supply;

(III) financial markets; or

(IV) healthcare; and

 (iv) to have resulted in damage within the United States, or outside of the United States in the case of—

(I) an air carrier or vessel described in paragraph (5)(B); or

(II) the premises of a United States mission; and

(v) to have been committed by an individual or individuals, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

Bills Introduced – 10-11-19

Yesterday with both the House and Senate meeting in proforma session there were 43 bills introduced. One of those bills may receive additional coverage in this blog:

HR 4634 To reauthorize the Terrorism Risk Insurance Act of 2002, and for other purposes. Rep. Waters, Maxine [D-CA-43]

S 2244 – TRIA Reauthorization – Reported in Senate

According to yesterday’s Daily Digest the Senate Banking, Housing and Urban Affairs Committee favorably reported S 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014, with an amendment. This is the first of the five current bills intending to reauthorize the TRIA to be reported by Committee.

Unfortunately, the bill was reported without a written report, so it is not clear exactly what the amendment does to the bill.

This now clears this bill to be taken up any time that Sen Reid (D,NV) decides that it is appropriate to do so.

I mentioned earlier that I thought that the bill recently introduced by Rep. Neugebauer (R,TX), HR 4871, would have the best chance to move forward in the House. It now seems that Sen. Schumer’s bill has a slight edge just because it may come to the floor for a vote first.

Bills Introduced – 06-17-14

Both the Senate and House are in Washington this week and 27 bills were introduced yesterday. Two of those bills may be of specific interest to readers of this blog:

HR 4871 Latest Title: To reauthorize the Terrorism Risk Insurance Act of 2002, and for other purposes. Sponsor: Rep Neugebauer, Randy (R,TX)

S 2478 Latest Title: A bill to authorize the Secretary of Transportation to partner with industry to strengthen the safety culture and safety practices of short line and regional freight railroads. Sponsor: Sen Collins, Susan M. (R,ME)

This now makes 5 bills in the current session that address the reauthorization of the TRIA. I haven’t seen this bill yet, but I suspect that this is the one that will get play in the House since Neugebauer is the Chair of the Housing and Insurance Subcommittee of the House Financial Services Committee.

The Collins bill may be of interest if it contains provisions specific to chemical transportation safety.