[DOCID: f:hr333.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-333
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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2761) TO EXTEND THE
TERRORISM INSURANCE PROGRAM OF THE DEPARTMENT OF THE TREASURY, AND FOR
OTHER PURPOSES
_______
September 18, 2007.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Arcuri, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 660]
The Committee on Rules, having had under consideration
House Resolution 660, by a record vote of 8 to 3, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 2761, the
Terrorism Risk Insurance Revision and Extension Act of 2007,
under a structured rule. The rule provides one hour of general
debate equally divided and controlled by the chairman and
ranking minority member of the Committee on Financial Services.
The rule waives all points of order against consideration of
the bill except clauses 9 and 10 of rule XXI. The rule provides
that the amendment in the nature of a substitute recommended by
the Committee on Financial Services now printed in the bill,
modified by the amendment printed in Part A of this report,
shall be considered as adopted. The bill as amended shall be
considered as an original bill for the purpose of amendment and
shall be considered as read. The rule waives all points of
order against provisions in the bill as amended.
The rule makes in order only those further amendments
printed in Part B of this report. The further amendments made
in order may be offered only in the order printed in this
report, may be offered only by a Member designated in this
report, shall be considered as read, shall be debatable for the
time specified in this report equally divided and controlled by
the proponent and an opponent, shall not be subject to
amendment, and shall not be subject to a demand for a division
of the question in the House or in the Committee of the Whole.
All points of order against the further amendments except for
clauses 9 and 10 of rule XXI are waived. The rule provides one
motion to recommit with or without instructions. The rule
provides that the Chair may postpone further consideration of
the bill to a time designated by the Speaker.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
consideration of the bill (except for clauses 9 and 10 of rule
XXI) and against the bill, as amended, the Committee is not
aware of any points of order against consideration of the bill
or against the bill as amended. The waivers of all points of
order are prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 303
Date: September 18, 2007.
Measure: H.R. 2761.
Motion by: Mr. Dreier.
Summary of motion: To grant an open rule.
Results: Defeated 2-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 304
Date: September 18, 2007.
Measure: H.R. 2761.
Motion by: Mr. Dreier.
Summary of motion: That in the matter proposed to be self-
executed by the rule relating to the expedited consideration in
the House of a Joint Resolution, the waiver of all points of
order against the Joint Resolution and against its
consideration not include a waiver of clause 10 of House rule
XXI, relating to ``pay as you go'' enforcement.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--
Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea; Slaughter--
Nay.
Rules Committee record vote No. 305
Date: September 18, 2007.
Measure: H.R. 2761.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Brown-Waite (FL) and Rep.
Buchanan (FL), #4, to extend the Terrorism Risk Insurance Fund
to cover insured losses resulting from natural disasters for
states that have established a reinsurance fund. Natural
disasters include earthquakes and perils resulting from
earthquakes, such as tsunamis and fire; tropical cyclones
having maximum sustained winds of at least 74 miles per hour,
such as typhoons and hurricanes; tornados; volcanic eruptions;
catastrophic windstorms; and any other naturally occurring
catastrophe except flood.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--
Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea; Slaughter--
Nay.
Rules Committee record vote No. 306
Date: September 18, 2007.
Measure: H.R. 2761.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA) #1, to require
that any provision of TRIA that results in costs to the federal
government must be offset by decreases in spending.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--
Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea; Slaughter--
Nay.
Rules Committee record vote No. 307
Date: September 18, 2007.
Measure: H.R. 2761.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #5, to
require companies to pay an annual, non-refundable premium,
determined by the Treasury Secretary based on a percentage of a
company's direct earned premiums, to be eligible for TRIA
participation for that year. Premiums would be kept in a
reserve fund for future use to cover the costs of a certified
TRIA incident exceeding the industry retention level or for any
subsequent federal program enacted to provide financial
assistance for the health care related costs of victims of
certified TRIA incident.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--
Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea; Slaughter--
Nay.
Rules Committee record vote No. 308
Date: September 18, 2007.
Measure: H.R. 2761.
Motion by: Mr. McGovern.
Summary of motion: To report the rule.
Results: Adopted 8-3.
Vote by Members: McGovern--Yea; Hastings (FL)--Yea;
Cardoza--Yea; Welch--Yea; Castor--Yea; Arcuri--Yea; Sutton--
Yea; Dreier--Nay; Diaz-Balart--Nay; Sessions--Nay; Slaughter--
Yea.
SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED
The amendment would ensure that the bill complies with the
new PAYGO requirements. It would require the enactment of a
joint resolution to permit Federal compensation under the
Terrorism Risk Insurance Act of 2002. The joint resolution,
approving a certification by the Secretary of Treasury (in
concurrence with the Secretaries of State and Homeland
Security, and the Attorney General) that there has been an act
of terrorism, would be considered by Congress under fast-track
procedures.
SUMMARY OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. Frank (MA): Manager's Amendment. The manager's amendment
clarifies the certification process for acts of NBCR (nuclear,
biological, chemical, or radiological) terrorism, applies the
reset mechanism to the NBCR deductible, and provides that the
Consumer Price Index will be used to adjust for inflation the
dollar amounts used in TRIA. The amendment also makes technical
and conforming changes. (10 minutes)
2. Pearce (NM): The amendment raises the deductible set at
5% above $1,000,000,000 by 1% each program year, rather than by
.5% as the bill is written. (10 minutes)
PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, at the end of section 102(1),
add the following new subparagraph:
``(F) Compensation subject to further
congressional action.--Notwithstanding any
certification of an act under this paragraph as
an act of terrorism or an act of NBCR
terrorism, Federal compensation under the
Program shall be subject to the provisions of
section 103(h).
``(G) Submission of certification under this
paragraph.--Upon any certification under
subparagraph (A), the Secretary shall submit
such certification to the Congress.''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in section 103(a)(2), before
``shall pay'' insert ``, subject only to subsection (h)(1),''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in section 103(b), redesignate
paragraphs (1) through (4) as paragraphs (2) through (5),
respectively.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in section 103(b), after
``unless--'' insert the following new paragraph:
``(1) there is enacted a joint resolution for payment
of Federal compensation with respect to the act of
terrorism that resulted in the insured loss;''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in the matter in section
103(e)(1)(A) that precedes clause (i), after ``paid by the
Secretary'' insert ``, subject to subsection (h)(1),''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in the matter in section
103(e)(1)(B)(i) that precedes subclause (II), after ``paid by
the Secretary'' insert ``, subject to subsection (h)(1),''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in section 103(e)(1)(C), after
``paid'' insert ``, pursuant to subsection (h)(1),''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in section 103(e)(1)(D), after
``paid'' insert ``, pursuant to subsection (h)(1),''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, strike subparagraph (A) of
section 103(e)(3) and insert the following:
``(A) Limitation.--Notwithstanding any other
provision of Federal or State law, including
any State workers' compensation or other
compulsory insurance law, an insurer's
financial responsibility for insured losses
from acts of terrorism shall be limited as
follows:
``(i) Federal compensation not
provided.--In any case of an act of
terrorism with respect to which there
has not been enacted a joint resolution
for payment of Federal compensation
described in subsection (h)(2), an
insurer's financial responsibility for
insured losses from such act of
terrorism shall be limited to its
applicable insurer deductible.
``(ii) Federal compensation
provided.--In any case of an act of
terrorism with respect to which there
has been enacted a joint resolution for
payment of Federal compensation
described in subsection (h)(2), an
insurer's financial responsibility for
insured losses from such act of
terrorism shall be limited to--
``(I) its applicable insurer
deductible; and
``(II) its applicable share
of insured losses that exceed
its applicable insurer
deductible, subject to the
requirements of paragraph
(2).''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in section 103(e)(3)(B), strike
``Notwithstanding'' and insert ``In the case of any act of
terrorism with respect to which there has been enacted a joint
resolution for payment of Federal compensation described in
subsection (h)(2) and notwithstanding''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, at the end of section 103(e)(3)
add the following new subparagraph:
``(E) Federal court jurisdiction and venue in
cases of no federal compensation.--In the case
of any act of terrorism with respect to which
there has not been enacted a joint resolution
for payment of Federal compensation described
in subsection (h)(2)--
``(i) all claims relating to or
arising out of an insurer's financial
responsibility for insured losses from
such act of terrorism shall be within
the original and exclusive jurisdiction
of the district courts of the United
States, in accordance with the
procedures established in clause (iii);
``(ii) all pending State court
actions that relate to or arise out of
an insurer's financial responsibility
for insured losses from such act of
terrorism shall be removed to a
district court of the United States in
accordance with clause (iii); and
``(iii) not later than 90 days after
the Secretary's certification of such
act of terrorism, the Judicial Panel on
Multidistrict Litigation shall
designate one district court or, if
necessary, multiple district courts of
the United States that shall have
original and exclusive jurisdiction
over all actions for any claim relating
to or arising out of an insurer's
financial responsibility for insured
losses from such act of terrorism.''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, in the first sentence of
section 103(e)(4)(F), after ``to the effect that'' insert the
following: ``, in the case of any act of terrorism with respect
to which there has been enacted a joint resolution for payment
of Federal compensation described in subsection (h)(2),''.
In the matter proposed to be inserted by the amendment made
by section 3(a)(1) of the bill, after the period at the end of
section 103(e)(4)(F) insert the following: ``All policies for
property and casualty insurance and group life insurance shall
be deemed to contain, and insurers shall be permitted to
include in their policies, a provision to the effect that, in
the case of insured losses resulting from any act of terrorism
with respect to which there has not been enacted a joint
resolution for payment of Federal compensation described in
subsection (h)(2), no insurer shall be obligated to pay for any
portion of any such insured losses that exceeds its applicable
insurer deductible.''.
Page 56, line 5, strike the closing quotation mark and the
semicolon at the end.
Page 56, after line 5, insert the following new subsection:
``(h) Privileged Procedure for Joint Resolution for Payment
of Federal Compensation.--
``(1) In general.--The Secretary shall pay the
Federal share of compensation under the Program for
insured losses resulting from an act of terrorism only
if there is enacted a joint resolution for payment of
Federal compensation with respect to such act of
terrorism.
``(2) Joint resolution.--For purposes of this
subsection, the term `joint resolution for payment of
Federal compensation' means a joint resolution that--
``(A) does not have a preamble;
``(B) the matter after the resolving clause
of which is as follows: `That the Congress
approves of the certification by the Secretary
of the Treasury under section 102(1)(A) of the
Terrorism Risk Insurance Act of 2002.'; and
``(C) the title of which is as follows: `To
permit Federal compensation under the Terrorism
Risk Insurance Act of 2002'.
``(3) Introduction and referral.--Upon receipt of a
submission under section 102(1)(G), the joint
resolution described in this subsection shall be
introduced by the majority leader of each House or his
designee (by request). In the case in which a House is
not in session, such joint resolution shall be so
introduced upon convening the first day of session
after the date of receipt of the certification. Upon
introduction, the joint resolution shall be referred to
the appropriate calendar in each House.
``(4) Consideration in the house of
representatives.--
``(A) Proceeding to consideration.--Upon
referral to the appropriate calendar, it shall
be in order to move to proceed to consider the
joint resolution in the House. Such a motion
shall be in order only at a time designated by
the Speaker in the legislative schedule within
two legislative days. The previous question
shall be considered as ordered on the motion to
its adoption without intervening motion. A
motion to reconsider the vote by which the
motion is disposed of shall not be in order.
``(B) Consideration.--The joint resolution
shall be considered as read. All points of
order against the joint resolution and against
its consideration are waived. The previous
question shall be considered as ordered on the
joint resolution to its passage without
intervening motion except one hour of debate
equally divided and controlled by a proponent
and an opponent and one motion to limit debate
on the joint resolution. A motion to reconsider
the vote on passage of the joint resolution
shall not be in order.
``(5) Consideration in the senate.--
``(A) Proceeding.--Upon introduction, the
joint resolution shall be placed on the
Calendar of Business, General Orders. A motion
to proceed to the consideration of the joint
resolution shall be in order at any time. The
motion is privileged and not debatable. A
motion to proceed to consideration of the joint
resolution may be made even though a previous
motion to the same effect has been disagreed
to. An amendment to the motion shall not be in
order, nor shall it be in order to move to
reconsider the vote by which the motion is
agreed to.
``(B) Debate.--Debate on the joint
resolution, and all debatable motions and
appeals in connection therewith, shall be
limited to not more than ten hours. The time
shall be equally divided between and controlled
by, the majority leader and the minority leader
or their designees.
``(C) Debatable motions and appeals.--Debate
on any debatable motion or appeal in relation
to the joint resolution shall be limited to not
more than one hour from the time allotted for
debate, equally divided and controlled by the
majority leader and the minority leader or
their designees.
``(D) Motion to limit debate.--A motion to
further limit debate is not debatable.
``(E) Motion to recommit.--Any motion to
commit or recommit the joint resolution shall
not be in order.
``(F) Final passage.--The Chair shall put the
question on final passage of the joint
resolution no later than 72 hours from the time
the measure is introduced.
``(6) Amendments prohibited.--No amendment to, or
motion to strike a provision from, a joint resolution
considered under this subsection shall be in order in
either the Senate or the House of Representatives.
``(7) Consideration by the other house.--In the case
of a joint resolution described in this subsection, if
before passage by one House of a joint resolution of
that House, that House receives such joint resolution
from the other House, then--
``(A) the procedure in that House shall be
the same as if no joint resolution had been
received from the other House; but
``(B) the vote on final passage shall be on
the joint resolution of the other House.
``(8) House and senate rulemaking.--This subsection
is enacted by the Congress as an exercise of the
rulemaking power of the House of Representatives and
Senate, respectively, and as such is deemed a part of
the rules of each House, respectively, and such
procedures supersede other rules only to the extent
that they are inconsistent with such rules; and with
full recognition of the constitutional right of either
House to change the rules (so far as relating to the
procedures of that House) at any time, in the same
manner, and to the same extent as any other rule of
that House.'';
In the matter proposed to be inserted by the amendment made
by section 4(1) of the bill, in section 106A(b)(1), strike
``section 106(b)(2)'' and insert section ``106(b)(3)''.
PART B--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 10 Minutes
Strike section 102(1)(C) of the Terrorism Risk Insurance Act
of 2002, as proposed to be amended by section 3(a)(1) of the
bill, and insert the following:
``(C) Certification of act of nbcr
terrorism.--Where a certified act of terrorism
is carried out by means of a nuclear,
biological, chemical, or radiological weapon or
similar instrumentality, the Secretary shall
further certify such act of terrorism as an act
of NBCR terrorism. If a certified act of
terrorism involves any other weapon or
instrumentality, the Secretary, in concurrence
with the Secretary of State, the Secretary of
Homeland Security, and the Attorney General of
the United States, shall determine whether the
act of terrorism meets the definition of NBCR
terrorism in this section. If such
determination is that the act does meet such
definition, the Secretary shall further certify
that such act as an act of NBCR terrorism.
Nothing in this subparagraph shall prohibit the
Secretary from determining that a single act of
terrorism resulted in both NBCR and non-NBCR
insured losses.''.
In section 102(11)(I)(ii)(II) of the Terrorism Risk Insurance
Act of 2002, as proposed to be amended by section 3(a)(1) of
the bill, strike ``and'' at the end.
In section 102(11)(J)(i) of the Terrorism Risk Insurance Act
of 2002, as proposed to be amended by section 3(a)(1) of the
bill, add ``and'' at the end.
In section 102(11)(J) of the Terrorism Risk Insurance Act of
2002, as proposed to be amended by section 3(a)(1) of the bill,
strike the period at the end and insert ``; and''.
At the end of section 102(11) of the Terrorism Risk Insurance
Act of 2002, as proposed to be amended by section 3(a)(1) of
the bill, add the following:
``(K) for the fifth additional Program Year
and any Additional Program year thereafter,
notwithstanding subparagraph (I)(i), if
aggregate industry insured losses resulting
from a certified act of NBCR terrorism exceed
$1,000,000,000, for any insurer that sustains
insured losses resulting from such act of NBCR
terrorism, the value of such insurer's direct
earned premiums over the calendar year
immediately preceding the Program Year,
multiplied by a percentage, which--
``(i) for the fifth additional
Program Year shall be 5 percent; and
``(ii) for each additional Program
Year thereafter, shall be 50 basis
points greater than the percentage
applicable to the preceding additional
Program Year, except that if an act of
NBCR terrorism occurs during the fifth
additional Program Year or any
additional Program Year thereafter that
results in aggregate industry insured
losses exceeding $1,000,000,000, the
percentage for the succeeding
additional Program Year shall be 5
percent and the increase under this
clause shall apply to additional
Program Years thereafter;
except that for purposes of determining under
this subparagraph whether aggregate industry
insured losses exceed $1,000,000,000, the
Secretary may combine insured losses resulting
from two or more certified acts of NBCR
terrorism occurring during such Program Year in
the same geographic area (with such area
determined by the Secretary), in which case
such insurer shall be permitted to combine
insured losses resulting from such acts of NBCR
terrorism for purposes of satisfying its
insurer deductible under this subparagraph; and
except that the insurer deductible under this
subparagraph shall apply only with respect to
compensation of insured losses resulting from
such certified act, or combined certified acts,
and that for purposes of compensation of any
other insured losses occurring in the same
Program Year, the insurer deductible determined
under subparagraph (I)(i) shall apply.''.
In section 102(13) of the Terrorism Risk Insurance Act of
2002, as proposed to be amended by section 3(a)(1) of the bill,
strike ``involves nuclear, biological'' and all that follows
and insert ``involves or triggers nuclear, biological,
chemical, or radiological reactions, releases, or
contaminations, but only if any aggregate industry insured
losses that result from such reactions, releases, or
contaminations exceed the amount set forth in paragraph
(1)(B)(ii).''.
In section 103(c)(4)(A)(iii)(II)(aa) of the Terrorism Risk
Insurance Act of 2002, as proposed to be amended by section
3(a)(1) of the bill, strike ``unlawful'' and insert
``fraudulent''.
In section 103(c)(4)(A)(iii)(II)(bb) of the Terrorism Risk
Insurance Act of 2002, as proposed to be amended by section
3(a)(1) of the bill, after ``insured person is'' insert
``substantially''.
In section 103(e)(1)(B)(ii) of the Terrorism Risk Insurance
Act of 2002, as proposed to be amended by section 3(a)(1) of
the bill, insert ``result from any such reactions, releases, or
contaminations and that'' after ``such insured losses that'' .
In section 103(e)(1)(B)(ii)(I) of the Terrorism Risk
Insurance Act of 2002, as proposed to be amended by section
3(a)(1) of the bill, strike ``exceeds'' and insert ``exceed''.
In section 103(h)(1) of the Terrorism Risk Insurance Act of
2002, in the matter preceding subparagraph (A), as proposed to
be amended by section 3(a)(1) of the bill, strike ``an
appropriate index'' and all that follows through the colon and
insert ``the Consumer Price Index for All Urban Consumers (CPI-
U), as published by the Bureau of Labor Statistics of the
Department of Labor, during the 12-month period preceding such
program year, each of the dollar amounts set forth in this
title (as such amount may have been previously adjusted),
including the following amounts:''.
Strike subparagraph (B) of section 103(h)(1) of the Terrorism
Risk Insurance Act of 2002, as proposed to be amended by
section 3(a)(1) of the bill, and insert the following:
``(B) The dollar amounts in subparagraphs (J)
and (K) of section 102(11) (relating to an
insurer deductible threshold based on the
amount of aggregate industry insured
losses).''.
In section 3 of the bill, redesignate subsection (c) as
subsection (d).
In section 3 of the bill, after subsection (b) insert the
following new subsection:
(c) Regulations on Certification of an Act of NBCR
Terrorism.--The Secretary of the Treasury shall issue the
regulations to carry out subparagraph (C) of section 102(1) of
the Terrorism Risk Insurance Act of 2002, as amended by
subsection (a)(1) of this section, not later than the
expiration of the 180-day period beginning upon the date of the
enactment of this Act.
----------
2. An Amendment To Be Offered by Representative Pearce of New Mexico,
or His Designee, Debatable for 10 Minutes
In the matter proposed to be added by the amendment made by
section 3(a)(1) of the bill, in section 102(11)(J)(ii), strike
``50 basis points'' and insert ``100 basis points''.
<all>