,,ii ,calendar ,no4 #dch #aacth ,,congress #b;d ,session ,s4 #bbdd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #aj1 #bjad,mr4 ,schumer 7for himself1 ,mr4 ,kirk1 ,mr4 ,reed1 ,mr4 ,heller1 ,mr4 ,murphy1 ,mr4 ,johanns1 ,mr4 ,warner1 ,mr4 ,blunt1 ,mr4 ,menendez1 ,mr4 ,crapo1 ,mr4 ,johnson of ,south ,dakota1 ,mrs4 ,gillibrand1 ,mr4 ,isakson1 ,mr4 ,tester1 ,mr4 ,merkley1 ,mr4 ,blumenthal1 ,mr4 ,booker1 ,ms4 ,mikulski1 ,mr4 ,donnelly1 ,mr4 ,chambliss1 ,mr4 ,markey1 ,ms4 ,klobuchar1 ,mr4 ,cardin1 ,mr4 ,durbin1 and ,mr4 ,franken7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,june #bc1 #bjad,reported by ,mr4 ,johnson of ,south ,dakota1 with amendments,omit the part struck through and insert the part printed in italic ,a ,,bill ,to extend the termination date of the ,terrorism ,insurance ,program established under the ,terrorism ,risk ,insurance ,act of #bjjb1 and for other purposes4 #a4 ,short ,title ,this ,act may be cited as the ,terrorism ,risk ,insurance ,program ,reauthorization ,act of #bjad4 #b4 ,extension of ,terrorism ,insurance ,program ,section #ajh7;a7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjba4 #c4 ,federal share ,section #ajc7;e77#a77;,a7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 is amended by inserting and beginning in the calendar year that follows the date of enactment of the ,terrorism ,risk ,insurance ,program ,reauthorization ,act of #bjadon ,january #a1 #bjaf1 shall decrease by #a percent#a percentage point per calendar year until equal to #hj percent after #he percent4 #d4 ,recoupment of ,federal share of compensation under the program ,section #ajc7;e7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 in paragraph 7#f71 in the matter preceding subparagraph 7,a71 by striking shall be and all that follows through subparagraph 7,e7 and inserting shall be #bg1ejj1jjj1jjj and beginning in the calendar year that follows the date of enactment of the ,terrorism ,risk ,insurance ,program ,reauthorization ,act of #bjad shall increase by #b1jjj1jjj1jjj per calendar year until equal to #cg1ejj1jjj1jjj42 and 8shall be the lesser of-- 7,a7 #bg1ejj1jjj1jjj1 as such amount is adjusted pursuant to this paragraph2 and 7,b7 the aggregate amount1 for all insurers1 of insured losses during such calendar year1 provided that beginning in the calendar year that follows the date of enactment of the ,terrorism ,risk ,insurance ,program ,reauthorization ,act of #bjad1 the amount set forth under subparagraph 7,a7 shall increase by #b1jjj1jjj1jjj per calendar year until equal to #cg1ejj1jjj1jjj4 2 7#b7 in paragraph 7#g7-- 7,a7 in subparagraph 7,a7-- 7i7 in the matter preceding clause 7i71 by striking for each of the periods referred to in subparagraphs 7,a7 through 7,e7 of paragraph #f7f72 and 7ii7 in clause 7i71 by striking for such period2 7,b7 in subparagraph 7,b7-- 7i7 by striking for any period referred to in any of subparagraphs 7,a7 through 7,e7 of paragraph 7#f72 and 7ii7 by striking for such period2 7,b7 by striking subparagraph 7,b7 and inserting the following3 7,b7 ,reserved4 2 7,c7 in subparagraph 7,c71 by striking occurring during any of the periods referred to in any of subparagraphs 7,a7 through 7,e7 of paragraph 7#f72 and 7,c7 in subparagraph 7,c7-- 7i7 by striking occurring during any of the periods referred to in any of subparagraphs 7,a7 through 7,e7 of paragraph 7#f71 terrorism loss risk-spreading premiums in an amount equal to #acc percent and inserting 1 terrorism loss risk-spreading premiums in an amount equal to #ace4e percent2 and 7ii7 by inserting as calculated under subparagraph 7,a7 after mandatory recoupment amount2 and 7,d7 in subparagraph 7,e77i7-- 7i7 in subclause 7,i7-- 7,i7 by striking #bjaj and inserting #bjag2 and 7,,ii7 by striking #bjab and inserting #bjai2 7ii7 in subclause 7,,ii7-- 7,i7 by striking #bjaa and inserting #bjah2 7,,ii7 by striking #bjab and inserting #bjai2 and 7,,iii7 by striking #bjag and inserting #bjbd2 and 7iii7 in subclause 7,,iii7-- 7,i7 by striking #bjab and inserting #bjai2 and 7,,ii7 by striking #bjag and inserting #bjbd4 #e4 ,technical amendments ,the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 in section #ajb-- 7,a7 in paragraph 7#c7-- 7i7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as clauses 7i71 7ii71 and 7iii71 respectively2 7ii7 in the matter preceding clause 7i7 7as so redesignated71 by striking ,an entity has and inserting the following3 7,a7 ,in general ,an entity has 2 and 7iii7 by adding at the end the following new subparagraph3 7,b7 ,rule of construction ,an entity1 including any affiliate thereof1 does not have control over another entity1 if1 as of the date of enactment of the ,terrorism ,risk ,insurance ,program ,reauthorization ,act of #bjad1 the entity is acting as an attorney-in-fact1 as defined by the ,secretary1 for the other entity and such other entity is a reciprocal insurer1 provided that the entity is not1 for reasons other than the attorney-in-fact relationship1 defined as having control under subparagraph 7,a74 2 7,,ab7 in paragraph 7#g7-- 7i7 by striking subparagraphs 7,a7 through 7,f7 and inserting the following3 7,a7 the value of an insurer's direct earned premiums during the immediately preceding calendar year1 multiplied by #bj percent2 and 2 7ii7 by redesignating subparagraph 7,g7 as subparagraph 7,b72 and 7iii7 in subparagraph 7,b71 as so redesignated by clause 7ii7-- 7,i7 by striking notwithstanding subparagraphs 7,a7 through 7,f71 for the ,transition ,period or any ,program ,year and inserting notwithstanding subparagraph 7,a71 for any calendar year2 and 7,,ii7 by striking ,period or ,program ,year and inserting calendar year2 7,,bc7 by striking paragraph 7#aa72 and 7,,cd7 by redesignating paragraphs 7#ab7 through 7#af7 as paragraphs 7#aa7 through 7#ae71 respectively2 and 7#b7 in section #ajc-- 7,a7 in subsection 7c71 by striking ,program ,year and inserting calendar year2 7,b7 in subsection 7e7-- 7i7 in paragraph 7#a7-- 7,i7 in subparagraph 7,a71 as previously amended by section #c-- 7aa7 by striking the ,transition ,period and each ,program ,year through ,program ,year #d shall be equal to #ij percent1 and during ,program ,year #e and each ,program ,year thereafter and inserting each calendar year2 7bb7 by striking the comma after #hj percent2 and 7cc7 by striking such ,transition ,period or such ,program ,year and inserting such calendar year2 and 7,,ii7 in subparagraph 7,b71 by striking exceed and all that follows through clause 7ii7 and inserting exceed #ajj1jjj1jjj with respect to such insured losses occurring in the calendar year42 7ii7 in paragraph 7#b77;,a71 by striking the period beginning on the first day of the ,transition ,period and ending on the last day of ,program ,year #a1 or during any ,program ,year thereafter and inserting a calendar year2 and 7iii7 in paragraph 7#c71 by striking the period beginning on the first day of the ,transition ,period and ending on the last day of ,program ,year #a1 or during any other ,program ,year and inserting any calendar year2 and 7,c7 in subsection 7g77#b7-- 7i7 by striking the ,transition ,period or a ,program ,year each place that term appears and inserting the calendar year2 7ii7 by striking such period and inserting the calendar year2 and 7iii7 by striking that period and inserting the calendar year4 #f4 ,improving the certification process 7a7 ,definitions ,as used in this section-- 7#a7 the term act of terrorism has the same meaning as in section #ajb7a7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note72 7#b7 the term certification process means the process by which the ,secretary determines whether to certify an act as an act of terrorism under section #ajb7a7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note72 and 7#c7 the term ,secretary means the ,secretary of the ,treasury4 7b7 ,study ,not later than #i months after the date of enactment of this ,act1 the ,secretary shall conduct and complete a study on the certification process4 7c7 ,required content ,the study required under subsection 7a7 shall include an examination and analysis of-- 7#a7 the establishment of a reasonable timeline by which the ,secretary must make an accurate determination on whether to certify an act as an act of terrorism2 7#b7 the impact that the length of any timeline proposed to be established under paragraph 7#a7 may have on the insurance industry1 policyholders1 consumers1 and taxpayers as a whole2 7#c7 the factors the ,secretary would evaluate and monitor during the certification process1 including the ability of the ,secretary to obtain the required information regarding the amount of projected and incurred losses resulting from an act which the ,secretary would need in determining whether to certify the act as an act of terrorism2 7#d7 the appropriateness1 efficiency1 and effectiveness of the consultation process required under section #ajb7a77;,a7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 and any recommendations on changes to the consultation process2 and 7#e7 the ability of the ,secretary to provide guidance and updates to the public regarding any act that may reasonably be certified as an act of terrorism4 7d7 ,report ,upon completion of the study required under subsection 7a71 the ,secretary shall submit a report on the results of such study to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7e7 ,rulemaking ,section #ajb7a7 of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 by redesignating subparagraph 7,d7 as subparagraph 7,e72 and 7#b7 by inserting after subparagraph 7,c7 the following3 7,d7 ,timing of certification ,not later than #i months after the report required under section #f of the ,terrorism ,risk ,insurance ,program ,reauthorization ,act of #bjad is submitted to the appropriate committees of ,congress1 the ,secretary shall issue final rules governing the certification process1 including any timeline applicable to any certification by the ,secretary on whether an act is an act of terrorism under this paragraph4 4 #g4 ,,gao study on upfront premiums 7a7 ,study ,not later than #b years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall complete a study on the viability and effects of the ,federal ,government assessing and collecting upfront premiums on insurers that participate in the ,terrorism ,insurance ,program established under the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 7hereafter in this section referred to as the ,program74 7b7 ,required content ,the study required under subsection 7a7 shall examine1 but shall not be limited to1 the following issues3 7#a7 ,how the ,federal ,government could determine the price of such upfront premiums on insurers that participate in the ,program4 7#b7 ,how the ,federal ,government could collect and manage such upfront premiums4 7#c7 ,how the ,federal ,government could ensure that such upfront premiums are not spent for purposes other than claims through the ,program4 7#d7 ,how the assessment and collection of such upfront premiums could affect take-up rates for terrorism risk coverage in different regions and industries and how it could impact small businesses and consumers in both metropolitan and non-metropolitan areas4 7#e7 ,the effect of collecting such upfront premiums on insurers both large and small4 7#f7 ,the effect of collecting such upfront premiums on the private market for terrorism risk reinsurance4 7#g7 ,the size of any ,federal ,government subsidy insurers may receive through their participation in the ,program1 taking into account the ,program's current post-event recoupment structure4 7c7 ,report ,upon completion of the study required under subsection 7a71 the ,comptroller ,general shall submit a report on the results of such study to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7d7 ,public availability ,the study and report required under this section shall be made available to the public in electronic form and shall be published on the website of the ,government ,accountability ,office4 ,june #bc1 #bjad,reported with amendments