NU Online News Service, May 24, 9:25 a.m. EDT
The Senate passed a 60-day National Flood Insurance Program extension as part of an agreement between Senate Majority Leader Harry Reid, D-Nev., and Sen. David Vitter, R-La. to move a five-year program extension bill to the Senate floor.
The agreement between Reid and Vitter was the culmination of three days of talks. Earlier this week, Vitter tried to jumpstart action on a long-term extension by seeking to attach it to legislation now being debated on the Senate floor that would extend and amend the Food and Drug Administration's user fee program.
The agreement was reached yesterday, but a snag developed today over language that will be included in the 60-day extension legislation that must be passed before the Senate leaves this week.
Sen. Tom Coburn, R-Okla., demanded language in the extension bill that would immediately phase-out subsidies on flood insurance for second homes and vacation homes.
A provision mandating that "actuarial rates" on these properties be phased in over four years is included in S. 1940, the Senate's five-year extension, according to an industry lobbyist. However, Coburn wanted the start date for that provision be immediate.
The 60-day extension passed by the Senate today includes that provision.
The current NFIP authorization expires May 31.
The House passed a 30-day NFIP extension on May 17 that included incremental reforms that would look into privatization of aspects of the program. The Senate declined to act on it because some members could not support those reforms.
The House passed its long-term reauthorization legislation, H.R. 1309, last July. The House is out this week, but returns next Wednesday, May 30, from its Memorial Day recess.
Industry officials sounded optimistic that a five-year extension may be within sight.
Charles Symington, senior vice president of government affairs for the Independent Insurance Agents and Brokers of America, said, "While we appreciate last week's action by the House, we urge them to quickly pass this new 60 day extension upon their return from Memorial Day recess to avoid an expiration of the program.
"The deal discussed on the Senate floor…could prove to be the path forward on this lengthy reform effort, and the IIABA strongly supports the agreement," he said.
Mike Becker, assistant vice president of federal affairs of the National Association of Professional Insurance Agents called the Reid/Vitter deal "a big step in the right direction."
Matt Gannon, assistant vice president of federal affairs for the National Association of Mutual Insurance Companies, was cautious.
"The deal reached today is another promising development, but it does not ensure that the NFIP will not lapse on May 31," Gannon said.
Gannon said the House needs to accept the 60-day extension, "but their comments last week signal that there is no guarantee that they will."
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