[Congressional Record Volume 148, Number 60 (Monday, May 13, 2002)]
[Senate]
[Pages S4250-S4251]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          TERRORISM INSURANCE

  Mr. DODD. Mr. President, I note the presence of the distinguished 
Senator from Nevada who has spoken to me on numerous occasions about 
the efforts to get a bill passed dealing with terrorism insurance. In 
his State, and I think particularly Las Vegas, major construction 
efforts have been slowed down tremendously because of the inability to 
acquire terrorism insurance. We have been very close since last fall in 
coming to an agreement to bring up a bill and to allow a series of 
amendments to be offered, debated, disposed of, and then to move on to 
reconcile the differences with the House-passed bill so that we might 
eliminate this roadblock that is causing a slowdown in economic growth 
in this country.
  I hope my colleagues on the other side--I have worked very closely 
with Senator Gramm of Texas, with the minority leader, the Republican 
leader, Trent Lott, to try to come up with a framework that can work. 
On this side of the aisle, Senator Daschle, our Democratic leader, 
along with Senator Schumer and others who have been interested in the 
subject matter, we have received unanimous consent--my colleague from 
Nevada can correct me if I am wrong on this side to move forward with a 
proposal allowing for a series but limited number of amendments, to a 
defined period of time to be considered and then final passage of a 
bill. There have been objections filed on the other side so we have not 
been able to proceed.

  Let there be no doubt, there is 100-percent agreement on this side of 
the aisle to move to the terrorism insurance bill. Every day we wait, a 
day delayed is a job lost, a project gets stalled and the economy 
suffers. This is a serious issue. We ought to be able to get to a bill, 
consider amendments, let there be a decision by this body whether to 
support or reject amendments, get to final passage and try to resolve 
this issue.
  To those who call my office on an hourly basis wondering whether we 
will get a terrorism insurance bill, let me be as clear as I possibly 
can: There is no objection on this side of the aisle; there is on the 
other.
  My hope is we can resolve the objections. This has gone on week after 
week after week. There is no reason we cannot define amendments, allow 
for their consideration, allow for their disposition, and get to the 
third reading and final passage of a bill. My hope is that will happen 
this week so we can resolve the differences with the House and send a 
bill to the President for his signature.
  Mr. REID. Will the Senator yield?
  Mr. DODD. I am happy to yield.
  Mr. REID. I say to my friend, he is absolutely right. We have worked 
hard under the direction and guidance of the Senator from Connecticut 
and gotten everyone to sign off on a package we can bring to the floor. 
The other side wanted two amendments and then four amendments; and we 
have agreed. It seems to me we cannot let the perfect be the enemy of 
the good. It needs to be done.
  I am sure the Senator would agree, if someone has a problem, propose 
floor amendments, we will debate and vote and move on. This has become 
serious. The Senator from Connecticut has had developers in his office, 
the people who lend money and want to lend money, people in the 
construction business, in addition to the specialized construction 
business, in addition to developers. I can go through a list of others 
who have been to see us who are extremely concerned about our country, 
in addition to their businesses.
  I have heard on a number of occasions the majority leader 
acknowledging the work of the Senator on this issue, and I join with 
him. We need to nudge this forward a bit more and get this matter 
resolved. Time is wasting. In another 10 days we will be taking a week 
break to go home for the Memorial recess, and then the Fourth of July. 
In the meantime, there are construction projects not going forward.
  Mr. DODD. I thank the Senator for his comments. He is exactly right. 
In

[[Page S4251]]

addition to the organizations he mentioned, this means jobs. Business 
cannot get lending from the banks because the banks will not lend money 
without terrorism insurance. There is no proposal that allows us to 
bridge the gap since September 11.
  It is very difficult to get this insurance because it is very 
difficult to price. Prior to the events of September 11 we had some 
acts of terrorism, but they were isolated and limited. What happened on 
September 11 has changed so many aspects of this country, including the 
question of how to calculate the cost of terrorism insurance. Banks do 
not want to lend money. This is a practical matter. I wish it were 
otherwise. They do not want to lend money when the terrorism insurance 
will not be written, and it will not get written because people do not 
know how to price or cost it.
  The idea was to frame some proposal to allow a bridge for a couple of 
years while the pricing of this product could be calculated, and to get 
the Federal Government out of it altogether but have us presently 
involved as a backstop should some catastrophic event occur. We would 
have a backstop so it would not wipe people out.
  I am told today that if we have an event such as September 11 again, 
the insurance that exists today could only deal with about 20 percent 
of the cost of what happened on that day. Knowing that, we begin to 
understand why banks are not lending the money; why, then, developers, 
contractors, and so forth, are not going forward with their projects; 
and why people are being laid off. We have a ripple effect. That is the 
reason we need this bill.
  I am not suggesting this is a perfect bill. But we do believe this 
proposal provides that gap for 23-36 months to allow for the pricing 
and free market factors to take over the costing out of terrorism 
insurance. In the absence of that happening, we get further delays. All 
the insurance contracts are being rewritten this year.
  It is a major economic issue, one that cries out for an answer. I 
urge my colleagues on the other side not to hold this up any longer and 
not object to moving forward. If Members have a proposal, come forward 
and we will accommodate that amendment and vote on it one way or the 
other but don't stop the bill from moving forward altogether.
  That is what is happening today and what has gone on for several 
months. It is causing great economic damage to the country. Talk to any 
major financial institution, talk to any major insurance company in 
this country, and they will say the same thing. The Republican 
objections to going forward on this bill are costing this country 
dearly. We need them to lift those objections, consider this bill, up 
or down, vote it up or down, but move on. Quit objecting to moving 
forward.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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