First, I thank my good friend from Florida for his heartfelt and his always articulate words. We are now going to debate, finally, the reauthorization of the Terrorism Risk Insurance Program. Senator Crapo and I have opening statements,…
First, I thank my good friend from Florida for his heartfelt and his always articulate words. We are now going to debate, finally, the reauthorization of the Terrorism Risk Insurance Program.
Senator Crapo and I have opening statements, but Senator Tester, who has added an extremely important amendment to this legislation, has a markup shortly, so we are going to accede and let him speak about his amendment first, and then we will get on with our opening statements. I thank Senator Tester for his hard work on this issue as well as his ability to compromise to get something done.
Mr. President, I thank my colleagues from Montana and Nebraska for their hard work on not only this legislation but their very important amendment--long overdue. I certainly thank Senators Johnson and Crapo, without whose leadership we couldn't be here to pass this bill. I thank my original cosponsors, Senator Kirk from Illinois who is here, Senator Jack Reed, Senator Heller, Senator Murphy, Senator Johanns, Senator Warner, Senator Blunt, and Senator Menendez, all of whom recognized the importance of having this incredibly important program reauthorized.
As author of the original TRIA legislation, I have watched this evolution closely. I could not be more convinced of the necessity to reauthorize the program for the long haul.
I remember the dark days right after 9/11. I was there. The worst thing was the loss of life--people we had all known. I know people who were lost--a guy I played basketball with in high school, a businessman who helped me on the way up, a firefighter with whom I did blood drives. But there was also the economic worry. People thought southern Manhattan would not come back. People thought businesses would flee New York--that New York's greatest days were behind us. And of course the people of New York, with their resiliency, backed up by everyone in this country--including President Bush, very strongly--did come back. But the uncertainty we faced in the immediate aftermath was that there would be no building in southern Manhattan or Manhattan at all. And we have some history.
One of the things that greatly stood in the way was the private sector did not offer any sufficient coverage to protect against the threat of terrorism. No one knew when there might be another terrorist incident. Insurance companies, knowing how large the losses were, figured it was better not to underwrite insurance than write it for such an astronomical sum that the building would not be even economically feasible.
We have some colleagues who said this should be a private sector endeavor. Well, we have history. The private sector was unable, because of the potential economic losses if, God forbid, there was another terrorist attack, whether it be conventional, nuclear, or chemical, to provide terrorism insurance. When that occurs, banks would not finance buildings, knowing there was no insurance backup, and we would have been in huge trouble. That is why we devised the terrorism insurance bill.
For those who say let the private sector do it, we have an experiment. We have what the scientists would call a controlled experiment. When there was no terrorism insurance after 9/11, the private sector would not offer insurance. We even find to this day, as the existing bill expires, fewer people underwrite terrorism insurance and fewer buildings are financed.
So we can do one of two things: We can sit back and let the market handle this on its own and lose millions--literally millions--of jobs, lose economic stability, safety, prosperity, and growth or we can renew this legislation. We can come up with a smart, responsible, risk- sharing system where the private sector is paying upfront. But if, God forbid, there is another serious incident beyond the capability of the private sector to shoulder, the Federal Government can step in and provide a backstop. That is what we have done.
The TRIA Program is a shining example of the government partnering with the private sector to solve problems that neither can solve on its own.
Let me underline, first, the importance to my city of New York. The redevelopment of downtown Manhattan is booming there. People are flocking to live there and work there. It is the hot area of New York again--not just with financial services but with law and advertising and high-tech. It serves as a reminder of the role the Federal Government can and should play in helping facilitate the stability and growth of cities across the country.
This bill will not lessen the impact of a terrorist attack but will help ensure that our cities throughout the country are less vulnerable to the economic devastation that would follow such a horrific event.
But this bill is hardly just focused on New York City. It not only affects every large city--my good friend from Nebraska spoke--it affects the football stadium and any renovations that might occur there in Lincoln. I have been there for a Nebraska-Oklahoma game. It was an amazing experience. It affects any city that has large gatherings of people and buildings--shopping centers, athletic facilities, colleges. So it affects almost every State. That is one of the reasons we have come together and gotten such broad bipartisan support.
We must make sure that every reauthorization of the program provides the certainty lenders and developers need to make the kind of long-term investment our country and large projects need to stimulate job growth and economic growth, and this bill does just that. That is why it was passed out of the banking committee unanimously.
Again, I thank my colleagues, particularly on the other side of the aisle. As Senator Johanns said--and we say it on each bill where there is some bipartisan support--this one has overwhelming support. Maybe this bill can be a model that at least on many issues we can work together.
Time is of the essence. Insurance policies for 2015 are already being written. Each day that goes by without a TRIA Program causes great uncertainty in the market and holds back the potential for more development, more construction, more jobs, and more economic growth.
I will talk about the amendments later, but I urge my colleagues, both here in the Senate and in the House, to move as quickly as possible because our economy is greatly affected by it. It is one of those that ``runs quiet, runs deep.'' It is a quiet policy but a policy that greatly affects lots of things that go on.
Again, I thank my colleagues, Senator Crapo for his good and hard work, as well as Senator Johnson and my cosponsors.
I yield the floor.
Senator Crapo listed some letters and asked that they be put in the Record for some groups supporting our legislation.
We have a very long list, and I ask unanimous consent that list be added to the Record, the supporters of the legislation.
Now I would like to discuss the amendment process to preview it for my colleagues a little bit.
I would also ask unanimous consent that quorum calls be counted equally against both sides.
As was mentioned, I believe by some of my colleagues, the give-and-take on this bill was ideally how things should work. First, a bipartisan group of Senators got together and crafted the legislation. As Senator Crapo noted, there was some push and pull, what should be the balance between government and the private sector, and we did move a little bit more in giving greater responsibility to the private sector. People should note that at the end of the day the private sector will pay back all the money the government would lay out if, God forbid, there is a terrorist incident, but it would be over a period of time of course.
But we had Democrats and Republicans come together and we came up with a bill. The chairman and ranking member agreed that the bill was a good idea, held hearings, and then we moved forward with the legislation.
Then always comes the even greater morass. We do get some bills passed out of this place with bipartisan support and many of them are significant bills, but then we go to the floor and we wonder what is going to happen now. We have the age-old dispute about how many amendments, what type of amendments, should they be relevant. In this case we asked colleagues on both sides of the aisle who would want amendments.
The amendments that came back were reasonable. Most--not all--were related to terrorism insurance. Those that weren't, such as by Senator Tester and Senator Vitter, were in the jurisdiction of the Banking Committee, so they at least had some relationship. We did not get a flurry of amendments from all over the place on issues that naturally divide the parties.
Then we had to do some negotiating, but we allowed--Senator Crapo and Senator Johnson allowed every amendment, that any author who wanted to offer an amendment could. We worked out some compromises on the Tester amendment. Senator Coburn had objections, and a compromise was worked out there. Some were withdrawn, but at the end of the day anyone who wanted an amendment got it. Both sides showed restraint, and I think that is what brought us to this position.
So the good news for my colleagues, we have a very limited number of amendments, and we intend to dispose of the entire bill before lunch this morning.
Let me briefly go over the amendments.
Senator Coburn will offer an amendment on recoupment timing. The Coburn amendment would give the Treasury Secretary the ability to extend the recoupment period of up to 10 years following an attack. The problem is the way Senator Coburn had drafted his amendment, it would create a significant score. He offered in it the Banking Committee and it failed on a bipartisan vote, the majority of both parties, I believe, voting against it. But he wanted to offer it on the floor, and so he will.
There is a point of order, a pay-go point of order that will be raised against the Coburn amendment, and I will raise that because it does break the budget. It doesn't have a pay-for in exchange for it. So Chairman Johnson and I believe the sponsors of the legislation recommend a ``no'' vote on waiving pay-go against the Coburn amendment.
The Tester amendment, as modified by Senator Coburn, I believe will be voice-voted. Senator Tester and Senator Johanns described that adequately, but it is something long overdue that would create a National Association of Registered Agents and Brokers and make the whole brokerage business work more smoothly. It has very broad support in this body.
Senator Vitter will offer an amendment that would require the President to nominate at least one individual with primary experience working in or supervising community banks on the Federal Reserve Board of Governors. I am sure he will come to the floor to explain his amendment. We expect this amendment, which we will all agree to, will be approved by voice vote, and Chairman Johnson has recommended a voice vote to the Members on our side.
Finally, there is a Flake amendment that would create an advisory committee on risk-sharing mechanisms. Again, I think Senator Flake will come down at some point and explain his amendment. There will be a recorded vote on this at least as planned now, and I will be supportive and I know Chairman Johnson again has recommended a ``yes'' vote on the Flake amendment.
With that, I note the absence of a quorum.
Once again I thank the chair and the ranking member of the banking committee, Tim Johnson and Mike Crapo, for their great work.
I say to my colleagues, this is a very good example of much cooperation--bipartisan cooperation, Democrat and Republican--a 22-to-0 unanimous vote out of the committee. It is also cooperation between private industry and the government. Industry, insurance, and others knew they had to shoulder a greater share of the load as we move on after 9/11 but that only government could be the backstop at the end of the day.
Again, this is an economic development issue above anything else. It is not out of whose pocket what money comes. If the greatest problem America faces is good-paying jobs--well, if we were not to renew terrorism insurance, we would lose many good-paying jobs.
This amendment will allow those jobs to continue and grow. People will
not build major edifices, major complexes--whether they be skyscrapers in Chicago or New York, whether they be football stadiums in Idaho or South Carolina or major shopping centers in South Dakota--unless they know there is a backstop, because insurers will not insure if they think terrorism could just totally wipe them out. And that means we wouldn't get financing for these projects.
It is an outstanding piece of legislation. My hope, in conclusion, is that the House would pass our bill. We know there are some concerns in the House, but there is a bipartisan coalition of Democrats and Republicans who really favor the approach we have taken. I know there are some in the House who don't believe government should be involved here, but that is, with all due respect, a purist view.
We have cut back on some of the government's obligations. Mike Crapo and many of our colleagues from the other side of the aisle made that happen. But at the same time, without the government backstop, we would do real harm to our economy.
I hope we can get a very large vote in the Senate--bipartisan-- because if we do, it should importune the House to perhaps pass our legislation.
I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I wish to make a couple points on the Coburn amendment, and then I will raise a point of order.
The current bill, S. 2244, is budget neutral, as the past TRIA bills have been. On the other hand, CBO has said Senator Coburn's amendment is not fully paid for, violating the Senate's PAYGO rule.
Basically, the amendment--even though I know the sponsor does not intend it that way--is a killer amendment. CBO has said the amendment would cause S. 2244 to increase the Federal deficit in both the 5-year and 10-year budget windows.
Senator Coburn offered this amendment in committee. It was roundly defeated by a bipartisan vote of 16 to 6 against it.
I appreciate Senator Coburn's effort to provide more flexibility to the timeframe for recoupment by the government in case of a terrorist attack, but in fact the banking committee, led by Senator Johnson, and my office have worked with CBO for a number of months to determine whether there could be more flexibility in the recoupment process. Unfortunately, CBO has yet to identify a way to provide more flexibility in the recoupment period while still ensuring the program remains budget neutral as it is now.
It is also important to note that if recoupment by the government poses any unforeseen challenge after a future attack, nothing would stop the Treasury Secretary from asking the Congress then to provide that flexibility.
The bottom line is that TRIA is too important to allow this amendment and nonreauthorization of the program because it is not budget neutral. We don't want to give anybody an excuse.
I am hopeful Senator Coburn will support TRIA's final passage, even if his amendment isn't agreed to, as he did in committee. But for those of us whose priority is to reauthorize this program, I urge my colleagues to vote to sustain the budget point of order and oppose the amendment.
Mr. President, I raise a point of order that the pending amendment violates section 201 of S. Con. Res. 21, the concurrent resolution on the budget for the fiscal year 2008.
Mr. President, I yield back all time.
I ask for a voice vote.
This is a good amendment and will be supported by Chairman Johnson and myself.
I yield back all time.
I yield back all time.
Mr. President, I yield back all time and ask for the yeas and nays.