Washington--Congress will extend the Terrorism Risk Insurance Act before it adjourns this fall, but the substance of the bill and its timing remains murky, legislators and staff indicated today.
In comments at a Senate Banking Committee hearing on flood insurance issues Tuesday, Sen. Robert Bennett, R-Utah, said he was "pleased" that Majority Leader Sen. William Frist, R-Tenn., "has placed extension of TRIA on his list of items that need to be addressed before we adjourn."
And, in the House, staff officials of the House Financial Services Committee are signaling that they are drafting legislation extending TRIA, albeit in a different form than suggested by the Treasury Department in its June study of how the federal backstop bill has worked since enactment in 2002.
But the House Financial Services panel staffers are cautioning industry lobbyists that the bill might not be acted on in the House until the week of Nov. 14. Congress is now eyeing Nov. 18 as a potential adjournment date, but most members and congressional staffers believe Congress may extend its fall session into December because so few must-do bills have been acted upon so far this year.
The staff comments to lobbyists were made as the House reconvened after a 10-day recess.
Sen. Bennett's comments were made at the hearing on flood issues as part of his effort to determine when the Senate would act on the issue.
Sen. Bennett and Sen. Chris Dodd, D-Conn., have introduced legislation that would extend the current program for two years while Congress debates at its leisure a more permanent solution to a federal insurance backstop for terrorism risk.
His bill would also extend coverage to group life insurance.
In response to Sen. Bennett's inquiry, the committee chairman, Sen. Richard Shelby, R-Ala., said that "we're coming along" on the issue, but could offer no specific timetable as to when the issue would be taken up. "We're going to address that," he said.
Sen. Elizabeth Dole, R-N.C., noting "the importance" of TRIA, also voiced support at the flood hearing for action this year on the issue.
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