WASHINGTON--Sen. Chris Dodd, D-Conn., said today he wants prompt action on a permanent solution to insuring terrorism risk, rather than merely extending the temporary federal reinsurance backstop due to expire next year.
Sen. Dodd made his comments as he joined with Sen. Richard Shelby, R-Ala., outgoing chairman of the Senate Banking Committee, to say they would work on a bipartisan basis in dealing with the issues before the committee. Sen. Dodd will take the chairman's gavel when Democrats assume control over the U.S. Senate early next year.
For his part, Sen. Shelby said he would like the Senate to act on legislation reforming the National Flood Insurance Plan during the lame-duck session ahead.
Regarding the Terrorism Risk Insurance Act, which expires at the end of 2007, Sen. Dodd said he does not favor further extension of the existing program.
"It's an issue we'd like to see if we can get something done early--if we go with some sort of a permanent proposal," said Sen. Dodd, whose state is home to many insurers. "I don't want to go through another extension."
Concerning Senate action on flood program reform legislation, Sen. Shelby said he hoped for the work on the bill to be completed in this Congress, although both he and Sen. Dodd said the priority for lame-duck action will be appropriations bills.
"I will be working with him," Sen. Dodd said of Sen. Shelby at the briefing, which followed a breakfast meeting between the two. "I think the voters last week said they wanted not only a change in direction, but a change in tone."
Both pointed out that they had worked together as Democrats in the House, and later in the Senate, before Sen. Shelby became a Republican. Sen. Dodd has been in the Senate for 26 years. "He is an old colleague," said Sen. Shelby.
They described their morning meeting and the press briefing "as reaching out to each other," although Sen. Shelby made clear that the chairman of the panel "will set the agenda," a critical prerogative to be enjoyed by Democrats next year.
In comments before the joint briefing, Sen. Dodd said he doubted that the defeat of Rep. Nancy Johnson, R-Tenn.--a senior Republican and a strong advocate for the insurance industry in Congress--will hurt the industry.
"Industry constituents are national," Sen. Dodd said. "Insurance is an important piece of our marketplace--a critical element."
In general, the committee's activities will focus on improving "security and prosperity," said Sen. Dodd.
On the flood insurance program, legislation reforming the NFIP passed the committee some months ago, and is awaiting floor action, Sen. Shelby noted.
He said that Louisiana Sens. Mary Landrieu, a Democrat, and David Vitter, a Republican, "have some problems with the bill," but that "I would like to work it out, get it through the Senate and then into conference."
He continued, "We think we can get this done this year."
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