[Congressional Record Volume 148, Number 77 (Wednesday, June 12, 2002)]
[Senate]
[Pages S5435-S5441]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  UNANIMOUS CONSENT AGREEMENT--S. 2600

  Mr. REID. I ask unanimous consent that at 10 a.m. tomorrow the Senate 
proceed to the consideration of Calendar No. 410, S. 2600, the 
terrorism insurance bill.
  The PRESIDING OFFICER. Is there objection?
  Mr. McCONNELL. Reserving the right to object.
  The PRESIDING OFFICER. The Senator from Kentucky.
  Mr. McCONNELL. Reserving the right to object, I ultimately will not 
object, but I want to propose that the unanimous consent request be 
amended to read as follows: I ask unanimous consent that at a time 
determined by the majority leader, after consultation with the 
Republican leader, the Senate proceed to the consideration of Calendar 
No. 252, H.R. 3210, and it be considered under the following 
limitations, the only amendments in order be the following: A 
substitute amendment by Senator Gramm and myself, the text of which 
will be printed in the Record upon the granting of the consent; three 
relevant first-degree amendments to the substitute to be offered by 
each leader or their designees, and that no motions to recommit be in 
order; I further ask unanimous consent that, following a vote on or in 
relation to the above-listed first-degree amendments and any debate 
time, there be a vote on or in relation to the substitute amendment; 
finally, I ask unanimous consent that when and if the bill is passed, 
the Senate then insist on its amendment and request a conference with 
the House on the disagreeing votes.
  Mr. REID. Mr. President, it is my understanding----
  The PRESIDING OFFICER. Does the Senator so modify his request?
  Mr. REID. Mr. President, reserving the right to respond to the Chair, 
I would simply say this: We have been through this now for months. I 
have been down here on a number of occasions, trying to get something 
that we believe will expedite this very important legislation. We have 
tried one amendment on each side, two amendments on each side, three 
amendments on each side. I think we finally got to five amendments on 
each side. I think the best thing to do is just get to the bill. It is 
an important piece of legislation and if it is as important as the 
major industries believe it is, we are

[[Page S5436]]

going to complete this bill in a reasonable period of time. So I do not 
consent to the modification.
  The PRESIDING OFFICER. Objection is heard. Is there objection to the 
request from the Senator from Nevada?
  Mr. GRAMM. Reserving the right to object, Mr. President.
  The PRESIDING OFFICER. The Senator from Texas.
  Mr. GRAMM. I am not going to object. I just want to say we are 
bringing up a bill that was not reported by the committee of 
jurisdiction. There has been an effort underway by many of us to try to 
reach a bipartisan consensus, and it may very well be that this is the 
only route we can take. I happen to be one of the people around here 
who believes that we should have passed the bill last year. I was for a 
bill.
  I would like to say today that this is a hard way to do it, and it is 
going to mean we are going to have to do a lot of amendments on the 
floor that we should have done in committee. I hope, therefore, that we 
are not going to find ourselves in a position where we are going to 
have an effort to cloture the bill.
  If the bill had come out of committee, if there were some kind of 
consensus, then I think you could understand that, if people were 
raising extraneous amendments. But I am hoping we are going to have 
time for debate. I think there will be a real possibility that we will 
have to have maybe 10 or 12 or 15 real amendments on the subject, 
amendments on which we will have to work our will. I hope we will not 
have that process cut off with cloture.
  The PRESIDING OFFICER. The Senator from Kentucky.
  Mr. McCONNELL. Further reserving the right to object, let me add to 
what the Senator from Texas has said. Ultimately I will not object, 
either. But both of us believe that we have put together a proposal 
that should have been the base bill. I think I can speak for the 
Senator from Texas and myself: We have some direction from the 
administration now as to what kind of legislation they might ultimately 
sign. I have in my hand a letter addressed to the Republican leader, 
signed by the Secretary of the Treasury, the Director of the Office of 
Management and Budget, the Director of the National Economic Council, 
and the Council of Economic Advisers indicating that a bill that makes 
the victims of terrorist attacks a subject of punitive damages and that 
opens up this whole area for further predatory lawsuits will not be 
signed by the President. They will recommend to the President a veto.
  I share the view of the Senator from Texas that the amendments to 
this bill certainly ought to be germane to the subject. The amendments 
that this Senator is going to offer will certainly be germane to the 
subject. Just so everybody will know what the Senator from Texas and I 
had put together, what we thought would be the best way to go as the 
best bill that will be available to everyone, I ask unanimous consent 
to have two things printed in the Record: First, the letter signed by 
the Secretary of the Treasury, dated June 10.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                   Department of the Treasury,

                                    Washington, DC, June 10, 2002.
     Hon. Trent Lott,
     Senate Republican Leader, U.S. Senate, Washington, DC.
       Dear Senator Lott: The War on Terrorism must be fought on 
     many fronts. From an economic perspective, we must minimize 
     the risks and consequences associated with potential acts of 
     terror. No measure is more important to mitigating the 
     economic effects of terrorist events than the passage of 
     terrorism insurance legislation.
       Last November 1, the Administration publicly agreed to 
     bipartisan legislation negotiated with Chairman Sarbanes, 
     Chairman Dodd, Senator Gramm and Senator Enzi. While the 
     House of Representatives quickly responded to this urgent 
     need by passing appropriate legislation, the Senate did not 
     act and has not passed any form of terrorism legislation in 
     the intervening seven months.
       The absence of federal legislation is having a palpable and 
     severe effect on our economy and is costing America's workers 
     their jobs. In the first quarter of this year, commercial 
     real estate construction was down 20 percent. The disruption 
     of terrorism coverage makes it more difficult to operate, 
     acquire, or refinance property, leading to diminished bank 
     lending for new construction projects and lower asset values 
     for existing properties. The Bond Market Association has said 
     that more than $7 billion worth of commercial real estate 
     activity has been suspended or cancelled due to the lack of 
     such insurance. Last week, Moody's Investors Service 
     announced that 14 commercial mortgage-backed transactions 
     could be downgraded due to a lack of such insurance.
       Without such insurance, the economic impact of another 
     terrorist attack would be much larger, including major 
     bankruptcies, layoffs and loan defaults. While we are doing 
     everything we can to stop another attack, we should minimize 
     the widespread economic damage to our economy should such an 
     event occur.
       One important issue for the availability of terrorism 
     insurance is the risk of unfair or excessive litigation 
     against American companies following an attack. Many for-
     profit and charitable entities have been unable to obtain 
     affordable and adequate insurance, in part because of the 
     risk that they will be unfairly sued for the acts of 
     international terrorists.
       To address this risk at least two important provisions are 
     essential. First, provisions for an exclusive federal cause 
     of action and consolidation of all cases arising out of 
     terrorist attacks, like those included in the Air 
     Transportation Safety and System Stabilization Act, are 
     necessary to provide for reasonable and expeditious 
     litigation.
       Second, the victims of terrorism should not have to pay 
     punitive damages. Punitive damages are designed to punish 
     criminal or near-criminal wrongdoing. Of course such 
     sanctions are appropriate for terrorists. But American 
     companies that are attacked by terrorists should not be 
     subject to predatory lawsuits. The availability of punitive 
     damages in terrorism cases would result in inequitable relief 
     for injured parties, threaten bankruptcies for American 
     companies and a loss of jobs for American workers.
       It is also clear that the potential for massive damages 
     imposed on companies that suffer from acts of terror would 
     endanger our economic recovery from a terrorist attack. 
     Indeed, the added risks and legal uncertainty hanging over 
     the economy as a result of last September 11th are major 
     factors inhibiting a business willingness to invest and to 
     create jobs. It makes little economic sense to pass a 
     terrorism insurance bill that leaves our economy exposed to 
     such inappropriate and needless legal uncertainty.
       The bipartisan public agreement reached between the 
     Administration and Chairman Sarbanes, Chairman Dodd, Senator 
     Gramm and Senator Enzi last fall provided these minimum 
     safeguards. We would recommend that the President not sign 
     any legislation that leaves the American economy and victims 
     of terrorist acts subject to predatory lawsuits and punitive 
     damages.
       The American people and our economy have waited seven 
     months since our public agreement on legislation. The process 
     must move forward. Prompt action by the Senate on this 
     vitally important legislation is needed now.
           Sincerely,
     Paul H. O'Neill,
       Secretary of the Treasury.
     Mitchell E. Daniels,
       Director, Office of Management and Budget.
     Lawrence Lindsey,
       Director, National Economic Council.
     R. Glenn Hubbard,
       Director, Council of Economic Advisors.

  Mr. McCONNELL. We would like also to include the bill that Senator 
Gramm and I had hoped would be the base bill that we took up, one that 
we are confident the President would have embraced and signed. I ask 
unanimous consent that be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Terrorism Risk Insurance Act 
     of 2002''.

     SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) property and casualty insurance firms are important 
     financial institutions, the products of which allow 
     mutualization of risk and the efficient use of financial 
     resources and enhance the ability of the economy to maintain 
     stability, while responding to a variety of economic, 
     political, environmental, and other risks with a minimum of 
     disruption;
       (2) the ability of businesses and individuals to obtain 
     property and casualty insurance at reasonable and predictable 
     prices, in order to spread the risk of both routine and 
     catastrophic loss, is critical to economic growth, urban 
     development, and the construction and maintenance of public 
     and private housing, as well as to the promotion of United 
     States exports and foreign trade in an increasingly 
     interconnected world;
       (3) the ability of the insurance industry to cover the 
     unprecedented financial risks presented by potential acts of 
     terrorism in the United States can be a major factor in the 
     recovery from terrorist attacks, while maintaining the 
     stability of the economy;

[[Page S5437]]

       (4) widespread financial market uncertainties have arisen 
     following the terrorist attacks of September 11, 2001, 
     including the absence of information from which financial 
     institutions can make statistically valid estimates of the 
     probability and costs of future terrorist events, and 
     therefore the size, finding, and allocation of the risk of 
     loss caused by such acts of terrorism;
       (5) a decision by property and casualty insurers to deal 
     with such uncertainties, either by terminating property and 
     casualty coverage for losses arising form terrorist events, 
     or by radically escalating premium coverage to compensate for 
     risks of loss that are not readily predictable, could 
     seriously hamper ongoing and planned construction, property 
     acquisition, and other business projects, generate a dramatic 
     increase in rents, and otherwise suppress economic activity 
     and
       (6) the United States Government should provide temporary 
     financial compensation to insured parties, contributing to 
     the stabilization of the United States economy in a time of 
     national crisis, while the financial services industry 
     develops the systems, mechanisms, products, and programs 
     necessary to create a viable financial services market for 
     private terrorism risk insurance.
       (b) Purpose.--The purpose of this Act is to establish a 
     temporary Federal program that provides for a transparent 
     system of shared public and private compensation for insured 
     losses resulting from acts of terrorism, in order to--
       (1) protect consumers by addressing market disruptions and 
     ensure the continued widespread availability and 
     affordability of property and casualty insurance for 
     terrorism risk; and
       (2) allow for a transitional period for the private markets 
     to stabilize, resume pricing of such insurance and build 
     capacity to absorb any future losses, while preserving State 
     insurance regulation and consumer protections.

     SEC. 3. DEFINITIONS.

       In this Act, the following definitions shall apply:
       (1) Act of terrorism.--
       (A) Certification.--The term ``act of terrorism'' means any 
     act that is certified by the Secretary, in concurrence with 
     the Secretary of State, and the Attorney General of the 
     United States--
       (i) to be a violent act or an act that is dangerous to--
       (I) human life;
       (II) property; or
       (III) infrastructure;
       (ii) to have resulted in damage within the United States, 
     or outside the United States in the case of an air carrier or 
     vessel described in paragraph (3)(A)(ii); and
       (iii) to have been committed by an individual or 
     individuals acting on behalf of any foreign person or foreign 
     interest, as part of an effort to coerce the civilian 
     population of the United States or to influence the policy or 
     affect the conduct of the United States Government by 
     coercion.
       (B) Limitation.--No act or event shall be certified by the 
     Secretary as an act of terrorism if--
       (i) the act or event is committed in the course of a war 
     declared by the Congress; or
       (ii) losses resulting from the act or event, in the 
     aggregate, do not exceed $5,000,000.
       (C) Determination final.--Any certification of, or 
     determination not to certify, an act of terrorism under this 
     paragraph shall be final, and shall not be subject to 
     judicial review.
       (2) Business interruption coverage.--The term ``business 
     interruption coverage''--
       (A) means coverage of losses for temporary relocation 
     expenses and ongoing expenses, including ordinary wages, 
     where--
       (i) there is physical damage to the business premises of 
     such magnitude that the business cannot open for business;
       (ii) there is physical damage to other property that 
     totally prevents customers or employees from gaining access 
     to the business premises; or
       (iii) the Federal, State, or local government shuts down an 
     area due to physical or environmental damage, thereby 
     preventing customers or employees from gaining access to the 
     business premises; and
       (B) does not include lost profits, other than in the case 
     of a small business concern (as defined in section 3 of the 
     Small Business Act (15 U.S.C. 632) and applicable regulations 
     thereunder) in any case described in clause (i), (ii), or 
     (iii) of subparagraph (A).
       (3) Insured loss.--The term ``insured loss''--
       (A) means any loss resulting from an act of terrorism that 
     is covered by primary property and casualty insurance, 
     including business interruption coverage, issued by a 
     participating insurance company, if such loss--
       (i) occurs within the United States; or
       (ii) occurs to an air carrier (as defined in section 40102 
     of title 49, United States Code) or to a United States flag 
     vessel (or a vessel based principally in the United States, 
     on which United States income tax is paid and whose insurance 
     coverage is subject to regulation in the United States), 
     regardless of where the loss occurs; and
       (B) excludes coverage under any life or health insurance.
       (4) NAIC.--The term ``NAIC'' means the National Association 
     of Insurance Commissioners.
       (5) Participating insurance company.--The term 
     ``participating insurance company'' means any insurance 
     company, including any subsidiary or affiliate thereof--
       (A) that--
       (i) is licensed or admitted to engage in the business of 
     providing primary insurance in any State, and was so licensed 
     or admitted on September 11, 2001; or
       (ii) is not licensed or admitted as described in clause 
     (i), if it is an eligible surplus line carrier listed on the 
     Quarterly Listing of Alien Insurers of the NAIC, or any 
     successor thereto;
       (B) that receives direct premiums for any type of 
     commercial property and casualty insurance coverage or that, 
     not later than 21 days after the date of enactment of this 
     Act, submits written notification to the Secretary of its 
     intent to participate in the Program with regard to personal 
     lines of property and casualty insurance; and
       (C) that meets any other criteria that the Secretary may 
     reasonably prescribe.
       (6) Person.--The term ``person'' means any individual, 
     business or nonprofit entity (including those organized in 
     the form of a partnership, limited liability company, 
     corporation, or association), trust or estate, or a State or 
     political subdivision of a State or other governmental unit.
       (7) Program.--The term ``Program'' means the Terrorism 
     Insured Loss Shared Compensation Program established by this 
     Act.
       (8) Property and casualty insurance.--The term ``property 
     and casualty insurance''--
       (A) means commercial lines of property and casualty 
     insurance;
       (B) includes personal lines of property and casualty 
     insurance, if a notification is made in accordance with 
     paragraph (5)(B); and
       (C) does not include--
       (i) Federal crop insurance issued or reinsured under the 
     Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); or
       (ii) private mortgage insurance, as that term is defined in 
     section 2 of the Homeowners Protection Act of 1998 (12 U.S.C. 
     4901).
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (10) State.--The term ``State'' means any State of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, American Samoa, Guam, and each of the United States 
     Virgin Islands.
       (11) United States.--The term ``United States'' means all 
     States of the United States and includes the territorial seas 
     of the United States.

     SEC. 4. TERRORISM INSURED LOSS SHARED COMPENSATION PROGRAM.

       (a) Establishment of Program.--
       (1) In general.--There is established in the Department of 
     the Treasury the Terrorism Insured Loss Shared Compensation 
     Program.
       (2) Authority of the secretary.--Notwithstanding any other 
     provision of State or Federal law, the Secretary shall 
     administer the Program, and shall pay the Federal share of 
     compensation for insured losses in accordance with subsection 
     (e).
       (b) Conditions for Federal Payments.--No payment may be 
     made by the Secretary under subsection (e), unless--
       (1) a person that suffers an insured loss, or a person 
     acting on behalf of that person, files a claim with a 
     participating insurance company;
       (2) the participating insurance company provides clear and 
     conspicuous disclosure to the policyholder of the premium 
     charged for insured losses covered by the Program and the 
     Federal share of compensation for insured losses under the 
     Program--
       (A) in the case of any policy covering an insured loss that 
     is issued on or after the date of enactment of this Act, in 
     the policy, at the time of offer, purchase, and renewal of 
     the policy; and
       (B) in the case of any policy that is issued before the 
     date of enactment of this Act, not later than 90 days after 
     that date of enactment;
       (3) the participating insurance company processes the claim 
     for the insured loss in accordance with its standard business 
     practices, and any reasonable procedures that the Secretary 
     may prescribe; and
       (4) the participating insurance company submits tot he 
     Secretary, in accordance with such reasonable procedures as 
     the Secretary may establish--
       (A) a claim for payment of the Federal share of 
     compensation for insured losses under the Program;
       (B) written verification and certification--
       (i) of the underlying claim; and
       (ii) of all payments made for insured losses; and
       (C) certification of its compliance with the provisions of 
     this subsection.
       (c) Mandatory Participation; Mandatory Availability.--Each 
     insurance company that meets the definition of a 
     participating insurance company under section 3--
       (1) shall participate in the Program;
       (2) shall make available in all of its property and 
     casualty insurance policies (in all of its participating 
     lines), coverage for insured losses; and
       (3) shall make available property and casualty insurance 
     coverage for insured losses that does not differ materially 
     from the terms, amounts, and other coverage limitations 
     applicable to losses arising from events other than acts of 
     terrorism.
       (d) Participation by Self Insured Entities.--
       (1) Determination by the secretary.--The Secretary may, in 
     consultation with the NAIC, establish procedures to allow 
     participation in the Program by municipalities and other 
     governmental or quasi-governmental entities (and by any other 
     entity, as the Secretary deems appropriate) operating through

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     self insurance arrangements that were in existence on 
     September 11, 2001, but only if the Secretary makes a 
     determination with regard to participation by any such entity 
     before the occurrence of an act of terrorism in which the 
     entity incurs an insured loss.
       (2) Participation.--If the Secretary makes a determination 
     to allow an entity described in paragraph (1) to participate 
     in the Program, all reports, conditions, requirements, and 
     standards established by this Act for participating insurance 
     companies shall apply to any such entity, as determined to be 
     appropriate by the Secretary.
       (e) Shared Insurance Loss Coverage.--
       (1) Federal share.--
       (A) In general.--Subject to the cap on liability under 
     paragraph (2) and the limitation under paragraph (6), the 
     Federal share of compensation under the Program to be paid by 
     the Secretary for insured losses resulting from an act of 
     terrorism occurring during the period beginning on the date 
     of the enactment of this Act and ending at midnight on 
     December 31, 2003 shall be equal to 90 percent of that 
     portion of the amount of aggregate insured losses that 
     exceeds $10,000,000,000.
       (B) Extension period.--If the Program is extended in 
     accordance with section 6, the Federal share of compensation 
     under the Program to be paid by the Secretary for insured 
     losses resulting from an act of terrorism occurring during 
     the period beginning on January 1, 2004 and ending at 
     midnight on December 31, 2004, shall be equal to 90 percent 
     of that portion of the amount of aggregate insured losses 
     that exceeds $20,000,000,000, subject to the cap on liability 
     in paragraph (2) and the limitation under paragraph (6).
       (C) Pro rata share.--If, during the period described in 
     subparagraph (A) (or during the period described in 
     subparagraph (B), if the Program is extended in accordance 
     with section 6), the aggregate insured losses for that period 
     exceed $10,000,000,000, the Secretary shall determine the pro 
     rata share for each participating insurance company of the 
     Federal share of compensation for insured losses calculated 
     under subparagraph (A).
       (2) Cap on annual liability.--Notwithstanding paragraph 
     (1), or any other provision of Federal or State law, if the 
     aggregate insured losses exceed $100,000,000,000 during 
     any period referred to in subparagraph (A) and (B) of 
     paragraph (1)--
       (A) the Secretary shall not make any payment under this Act 
     for any portion of the amount of such losses that exceeds 
     $100,000,000,000; and
       (B) participating insurance companies shall not be liable 
     for the payment of any portion of the amount that exceeds 
     $100,000,000,000.
       (3) Notice to congress.--The Secretary shall notify the 
     Congress if estimated or actual aggregate insured losses 
     exceed $100,000,000,000 in any period described in paragraph 
     (1), and the Congress shall determine the procedures for and 
     the source of any such excess payments.
       (4) Final netting.--The Secretary shall have sole 
     discretion to determine the time at which claims relating to 
     any insured loss or act of terrorism shall become final.
       (5) Determination final.--Any determination of the 
     Secretary under this subsection shall be final, and shall not 
     be subject to judicial review.
       (6) In-force reinsurance agreements.--For policies covered 
     by reinsurance contracts in force on the date of enactment of 
     this Act, until the in-force reinsurance contract is renewed, 
     amended, or has reached its 1-year anniversary date, any 
     Federal share of compensation due to a participating 
     insurance company for insured losses during the effective 
     period of the Program shall be shared--
       (A) with all reinsurance companies to which the 
     participating insurance company has ceded some share of the 
     insured loss pursuant to an in-force reinsurance contract; 
     and
       (B) in a manner that distributes the Federal share of 
     compensation for insured losses between the participating 
     insurance company and the reinsurance company or companies in 
     the same proportion as the insured losses would have been 
     distributed if the Program did not exist.

     SEC. 5. GENERAL AUTHORITY AND ADMINISTRATION OF CLAIMS.

       (a) General Authority.--The Secretary shall have the powers 
     and authorities necessary to carry out the Program, including 
     authority--
       (1) to investigate and audit all claims under the Program; 
     and
       (2) to prescribe regulations and procedures to implement 
     the Program.
       (b) Interim Rules and Procedures.--The Secretary shall 
     issue interim final rules or procedures specifying the manner 
     in which--
       (1) participating insurance companies may file, verify, and 
     certify claims under the Program;
       (2) the Secretary shall publish or otherwise publicly 
     announce the applicable percentage of insured losses that is 
     the responsibility of participating insurance companies and 
     the percentage that is the responsibility of the Federal 
     Government under the Program;
       (3) the Federal share of compensation for insured losses 
     will be paid under the Program, including payments based on 
     estimates of or actual aggregate insured losses;
       (4) the Secretary may, at any time, seek repayment from or 
     reimburse any participating insurance company, based on 
     estimates of insured losses under the Program, to effectuate 
     the insured loss sharing provisions contained in section 4;
       (5) each participating insurance company that incurs 
     insured losses shall pay its pro rata share of insured 
     losses, in accordance with section 4; and
       (6) the Secretary will determine any final netting of 
     payments for actual insured losses under the Program, 
     including payments owed to the Federal Government from any 
     participating insurance company and any Federal share of 
     compensation for insured losses owed to any participating 
     insurance company, to effectuate the insured loss sharing 
     provisions contained in section 4.
       (c) Subrogation Rights.--The United States shall have the 
     right of subrogation with respect to any payment made by the 
     United States under the Program.
       (d) Contracts for Services.--The Secretary may employ 
     persons or contract for services as may be necessary to 
     implement the Program.
       (e) Civil Penalties.--The Secretary may assess civil money 
     penalties for violations of this Act or any rule, regulation, 
     or order issued by the Secretary under this Act relating to 
     the submission of false or misleading information for 
     purposes of the Program, or any failure to repay any amount 
     required to be reimbursed under regulations or procedures 
     described in section 5(b). The authority granted under this 
     subsection shall continue during any period in which the 
     Secretary's authority under section 6(d) is in effect.

     SEC. 6. TERMINATION OF PROGRAM; DISCRETIONARY EXTENSION.

       (a) Termination of Program.--
       (1)  In general.--The Program shall terminate at midnight 
     on December 31, 2003, unless the Secretary--
       (A) determines, after considering the report and finding 
     required by this section, that the program should be extended 
     for one additional year, until midnight on December 31, 2004; 
     and
       (B) promptly notifies the Congress of such determination 
     and the reasons therefor.
       (2) Determination final.--The determination of the 
     Secretary under paragraph (2) shall be final, and shall not 
     be subject to judicial review.
       (3) Termination after extension.--If the program is 
     extended under paragraph (1), the Program shall terminate at 
     midnight on December 31, 2004.
       (b) Report to Congress.--Not later than 9 months after the 
     date of enactment of this Act the Secretary shall submit a 
     report to Congress--
       (1) regarding--
       (A) the availability of insurance coverage for acts of 
     terrorism;
       (B) the affordability of such coverage, including the 
     effect of such coverage on premiums; and
       (C) the capacity of the insurance industry to absorb future 
     losses resulting from acts of terrorism, taking into account 
     the profitability of the insurance industry; and
       (2) that considers--
       (A) the impact of the program on each of the factors 
     described in paragraph (1); and
       (B) the probable impact on such factors and on the United 
     States economy if the Program terminates at midnight on 
     December 31, 2003.
       (c) Finding Required.--A determination under subsection (a) 
     to extend the program shall be based on a finding by the 
     Secretary that--
       (1) widespread market uncertainties continue to disrupt the 
     ability of insurance companies to price insurance coverage 
     for losses resulting from acts of terrorism, thereby 
     resulting in the continuing unavailability of affordable 
     insurance for consumers; and
       (2) extending the program for an additional year would 
     likely encourage economic stabilization and facilitate a 
     transition to a viable market for private terrorism risk 
     insurance.
       (d) Continuing Authority to Pay or Adjust Compensation.--
     following the termination of the Program under subsection 
     (a), the Secretary may take such actions as may be necessary 
     to ensure payment, reimbursement, or adjustment of 
     compensation for insured losses arising out of any act of 
     terrorism occurring during the period in which the Program 
     was in effect under this Act, in accordance with the 
     provisions of section 4 and regulations promulgated 
     thereunder.
       (e) Repeal; Savings Clause.--This act is repealed at 
     midnight on the final termination date of the Program under 
     section (a), except that such repeal shall not be construed--
       (1) to prevent the Secretary from taking, or causing to be 
     taken, such actions under subsection (d) of this section and 
     sections 4(e)(4), 4(e)(5), 5(a)(1), 5(c), and (e) (as in 
     effect on the day before the date of such repeal), and 
     applicable regulations promulgated thereunder, during any 
     period in which the authority of the Secretary under 
     subsection (d) of this section is in effect; or
       (2) to prevent the availability of funding under section 
     9(b) during any period in which authority of the Secretary 
     under subsection (d) of this section is in effect.
       (f) Sense of the Congress.--It is the sense of the Congress 
     that he Secretary should make any determination under 
     subsection (a) in sufficient time to enable participating 
     insurance companies to include coverage for acts of terrorism 
     in their policies for 2004.
       (g) Study and Report on Scope of the Program.--
       (1) Study.--The Secretary, after consultation with the 
     NAIC, representatives of the

[[Page S5439]]

     insurance industry, and other experts in the insurance field, 
     shall conduct a study of the potential effects of acts of 
     terrorism on the availability of life insurance and other 
     lines of insurance coverage.
       (2) Report.--Not later than 9 months after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     the Congress on the results of the study conducted under 
     paragraph (1).
       (h) Reports Regarding Terrorism Risk Insurance Premiums.--
       (1) Report to the naic.--Beginning 6 months after the date 
     of enactment of this Act, and every 6 months thereafter, each 
     participating insurance company shall submit a report to the 
     NAIC that states the premium rates charged by that 
     participating insurance company during the preceding 6-month 
     period for insured losses covered by the Program, and 
     includes an explanation of and justification for those rates.
       (2) Reports forwarded.--The NAIC shall promptly forward 
     copies of each report submitted under paragraph (1) to the 
     Secretary, the Secretary of commerce, the Chairman of the 
     Federal trade Commission, and the Comptroller General of the 
     United States.
       (3) Agency report to congress.--
       (A) In general.--The Secretary, the Secretary of Commerce 
     and the Chairman of the Federal Trade Commission shall submit 
     joint reports to Congress and the Comptroller General of the 
     United States summarizing and evaluating the reports forward 
     under paragraph (2).
       (B) Timing.--The reports required under subparagraph (A) 
     shall be submitted--
       (i) 9 months after the date of enactment of this Act; and
       (ii) 12 months after the date of submission of the first 
     report under clause (i).
       (4) GAO evaluation and report.--
       (A) Evaluation.--The Comptroller General of the United 
     States shall evaluate each report submitted under paragraph 
     (3), and upon request, the Secretary, the Secretary of 
     Commerce, the Chairman of the Federal Trade Commission, and 
     the NAIC shall provide to the Comptroller all documents, 
     records, and any other information that the Comptroller deems 
     necessary to carry out such evaluation.
       (B) Report to congress.--Not later than 90 days after 
     receipt of each report submitted under paragraph (3), the 
     Comptroller General of the United States shall submit to 
     Congress a report of the evaluation required by 
     subparagraph (A).

     SEC. 7. PRESERVATION OF STATE LAW.

       Nothing in this Act shall affect the jurisdiction or 
     regulatory authority of the insurance commissioner (or any 
     agency or office performing like functions) of any State over 
     any participating insurance company or other person--
       (1) except as specifically provided in this Act; and
       (2) except that--
       (A) the definition of the term ``act of terrorism'' in 
     section 3 shall be the exclusive definition of that term for 
     purposes of compensation for insured losses under this Act, 
     and shall preempt any provision of State law that is 
     inconsistent with that definition, to the extent that such 
     provision of law would otherwise apply to any type of 
     insurance covered by this Act;
       (B) during the period beginning on the date of enactment of 
     this Act and ending at midnight on December 31, 2002, rates 
     for terrorism risk insurance covered by this Act and filed 
     with any State shall not be subject to prior approval or a 
     waiting period, under any law of a State that would otherwise 
     be applicable, except that nothing in this Act affects the 
     ability of any State to invalidate a rate as excessive, 
     inadequate, or unfairly discriminatory; and
       (C) during the period beginning on the date of enactment of 
     this Act and for so long as the Program is in effect, as 
     provided in section 6 (including any period during which the 
     authority of the Secretary under section 6(d) is in effect), 
     books and records of any participating insurance company that 
     are relevant to the Program shall be provided, or caused to 
     be provided, to the Secretary or the designee of the 
     Secretary, upon request by the Secretary or such designee, 
     notwithstanding any provision of the laws of any State 
     prohibiting or limiting such access.

     SEC. 8. SENSE OF THE CONGRESS REGARDING CAPACITY BUILDING.

       It is the sense of the Congress that the insurance industry 
     should build capacity and aggregate risk to provide 
     affordable property and casualty insurance coverage for 
     terrorism risk.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS; PAYMENT AUTHORITY.

       (a) Administrative Expenses.--There are authorized to be 
     appropriated to the Secretary, out of funds in the Treasury 
     not otherwise appropriated, such sums as may be necessary for 
     administrative expenses of the Program, to remain available 
     until expended.
       (b) Payment Authority.--This Act constitutes payment 
     authority in advance of appropriation Acts, and represents 
     the obligation of the Federal Government to provide for the 
     Federal share of compensation for insured losses under the 
     Program.

     SEC. 10. PROCEDURES FOR CIVIL ACTIONS.

       (a) Federal Cause of Action.--
       (1) In general.--There shall exist a Federal cause of 
     action for claims arising out of or resulting from an act of 
     terrorism, which shall be the exclusive cause of action and 
     remedy for such claims, except as provided in subsection (f).
       (2) Preemption of state actions.--All State causes of 
     action of any kind for claims arising out of or resulting 
     from an act of terrorism that are otherwise available under 
     State law, are hereby preempted, except as provided in 
     subsection (f).
       (b) Governing Law.--The substantive law for decision in an 
     action described in subsection (a)(1) shall be derived from 
     the law, including applicable choice of law principles, of 
     the State in which the act of terrorism giving rise to the 
     action occurred, except to the extent that--
       (1) the law, including choice of law principles, of another 
     State is determined to be applicable to the action by the 
     district court hearing the action; or
       (2) otherwise applicable State law (including that 
     determined under paragraph (1), is inconsistent with or 
     otherwise preempted by Federal law.
       (c) Federal Jurisdiction.--
       (1) In general.--Notwithstanding any other provision of 
     law, not later than 90 days after the date of the occurrence 
     of an act of terrorism, the Judicial Panel on Multidistrict 
     Litigation shall assign a single Federal district court to 
     conduct pretrial and trial proceedings in all pending and 
     future civil actions for claims arising out of or resulting 
     from that act of terrorism.
       (2) Selection criteria.--The Judicial Panel on 
     Multidistrict Litigation shall select and assign the district 
     court under paragraph (1) based on the convenience of the 
     parties and the just and efficient conduct of the 
     proceedings.
       (3) Jurisdiction.--The district court assigned by the 
     Judicial Panel on Multidistrict Litigation shall have 
     original and exclusive jurisdiction over all actions under 
     paragraph (1). For purposes of personal jurisdiction, the 
     district court assigned by the Judicial Panel on 
     Multidistrict Litigation shall be deemed to sit in all 
     judicial districts in the United States.
       (4) Transfer of cases filed in other federal courts.--Any 
     civil action for claims arising out of or resulting from an 
     act of terrorism that is filed in a Federal district court 
     other than the Federal district court assigned by the 
     Judicial Panel on Multidistrict Litigation under paragraph 
     (1) shall be transferred to the Federal district court so 
     assigned.
       (5) Removal of cases filed in state courts.--Any civil 
     action for claims arising out of or resulting from an act of 
     terrorism that is filed in a State court shall be removable 
     to the Federal district court assigned by the Judicial Panel 
     on Multidistrict litigation under paragraph (1).
       (d) Approval of Settlements.--Any settlement between the 
     parties of a civil action described in this section for 
     claims arising out of or resulting from an act of terrorism 
     shall be subject to prior approval by the Secretary after 
     consultation by the Secretary with the Attorney General.
       (e) Limitation on Damages.--
       (1) In general.--Punitive or exemplary damages shall not be 
     available for any losses in any action described in 
     subsection (a)(1), including any settlement described in 
     subsection (d), except where--
       (A) punitive or exemplary damages are permitted by 
     applicable State law; and
       (B) the harm to the plaintiff was caused by a criminal act 
     or course of conduct for which the defendant was convicted 
     under Federal or State criminal law, including a conviction 
     based on a guilty plea or plea of nolo contendere.
       (2) Protection of taxpayer funds.--Any amounts awarded in, 
     or granted in settlement of, an action described in 
     subsection (a)(1) that are attributable to punitive or 
     exemplary damages allowable under paragraph (1) of this 
     subsection shall not count as insured losses for purposes of 
     this Act.
       (f) Claims Against Terrorists.--Nothing in this section 
     shall in any way be construed to limit the ability of any 
     plaintiff to seek any form of recovery from any person, 
     government, or other entity that was a participant in, or 
     aider and abettor of, any act of terrorism.
       (g) Effective Period.--This section shall apply only to 
     actions described in subsection (a)(1) arising out of or 
     resulting from acts of terrorism that occur during the 
     effective period of the Program, including any applicable 
     extension period.

  The PRESIDING OFFICER. The Republican leader.
  Mr. LOTT. Reserving the right to object, I will be brief and I will 
not object. I think we should go ahead and get an agreement to proceed 
on this bill because there has been a lot of effort over a long period 
of time to try to work out some substance, some process for considering 
it, the numbers of amendments that would be offered. Having been 
through all of that, I think it is time we just go forward. We could 
not get an agreement to limit amendments anyway. I believe there are 
going to be a lot of amendments that relate to the subject matter that 
will be offered and we will have a good debate.
  I do want to make two observations. There was a bipartisan bill. 
There was a bill, I had the impression, that had been worked out with 
Senator Sarbanes, I thought Senator Dodd, and

[[Page S5440]]

Senator Gramm at the committee level, although it was not reported out, 
that would have had some limits on liability, but all of a sudden it 
disappeared from the committee itself, went to some other venue, and it 
came up with the substance as it is now. I do not think that is the way 
business should be done around here, and every time it is done that 
way, which was the case, in my opinion, on the energy bill and on an 
agriculture bill, you get into a great big fracas and have a lot of 
trouble.
  But I think the issue is important. I am sure there are very strong 
feelings for it and some against it.
  But I emphasize the point that Senator McConnell made a moment ago. 
We need this legislation passed because of the confidence it will 
provide to this sector of the economy. But it will not be signed into 
law without some limits on liabilities. We cannot and we will not--and 
the President will not--allow the plaintiff's lawyers of this country 
to get this kind of access to the Treasury of the United States of 
America. I think everybody needs to understand that.
  We should do this. We are going forward. But in the end we are not 
going to have a bill without limits on liabilities.
  With that, I withdraw my reservation.
  Mr. DASCHLE. Mr. President, in the days and weeks following September 
11, this Senate passed an unprecedented series of measures to help heal 
our wounded nation, protect America from future terrorist attacks, and 
bring to justice those who attacked us.
  Those days were among the most difficult any of us has ever 
experienced in our public lives. They were also some of our proudest 
days as Senators--because we were united. Because we rose to a 
challenge that few of us could have imagined until then.
  Today--nearly 9 months after the terrorist attacks we have not yet 
addressed the growing inability of many businesses to purchase 
adequate, affordable terrorism insurance.
  Democrats have made repeated good-faith offers to reach a bipartisan 
solution to this difficult problem. This Senate could have passed a 
terrorism insurance bill months ago--and it could already be law. The 
only reason it is not is because a small group of Senators in the other 
party are determined to use terrorism re-insurance as cover to push 
through radical changes in our legal system that they know do not have 
sufficient support to pass on their own merits. They are holding 
terrorism insurance, and America's economic security, hostage to try to 
force through an agenda that has nothing to do with September 11th, or 
with the threat of future terrorist attacks.
  Enough is enough. Last Friday, Senator Dodd introduced a good, 
balanced terrorism insurance bill, S-2600. I am now calling up that 
bill to see where the votes fall. We need to stop playing politics with 
this critical issue.
  I want to thank Senator Dodd for the extraordinary patience and 
leadership he has demonstrated on this issue over so many months. I 
also want to thank a number of our other colleagues--especially Senator 
Sarbanes, Senator Schumer and Senator Reid--for their help in producing 
this bill, as well as their many efforts to reach a bipartisan 
agreement on this matter.
  President Bush has asked the Senate repeatedly to pass terrorism 
insurance. So has the commercial real estate industry, the hotel 
industry, and many other industries employing tens of millions of 
Americans. Despite their requests, a small group of Republican Senators 
has refused to let any terrorism insurance bill pass unless it includes 
their extraneous plan to dramatically overhaul major parts of America's 
civil justice system.
  At a time when we are hearing new warnings almost every day about the 
possibility, even the ``inevitability'' of more terrorist attacks--when 
our economy is struggling to shake off a recession, such political 
gamesmanship is inexcusable.
  Before September 11th, terrorist attacks on America seemed 
unimaginable. Now, as a result of September 11th, such acts are 
becoming un-insurable.
  Consider a few facts:
  A recent survey by The Bond Market Association shows that lenders 
have placed on hold or canceled more than $7 billion in commercial 
mortgage loans because of ``the difficulty and expense'' of finding 
terrorism insurance coverage.
  According to a recent study by Moody's, ``virtually all terrorism 
insurance policies have some major gap, including carve-outs for 
certain types of terrorism and 30 day cancellation clauses.'' These 
policy gaps pose significant risks to investors.
  The lack of terrorism insurance for commercial real estate is also 
hurting ``commercial mortgage backed securities'' bonds that are backed 
entirely by mortgages on commercial buildings. Investors in this $270 
billion market include pension funds, insurance companies and other 
institutions.
  Moody's and Fitch recently placed 22 commercial mortgage backed 
securities transactions--backed by more than $9 billion in commercial 
real estate loans, on a ``watch list'' for possible downgrade. In every 
one of the 22 transactions on that list, terrorism insurance for the 
collateral was either inadequate--or due to expire by this Fall.
  In addition, major hotel companies employing thousands of Americans 
have lost--or will soon lose--terrorism coverage. Businesses, museums, 
hospitals, gaming and sports facility owners, and builders all over the 
country are in similar straits.
  While a few insurers have come together to offer very narrow 
coverage, their policies they provide generally exclude coverage for 
nuclear, biological and chemical attacks--the very threats the 
government warns us are most likely to be used by terrorists.
  The growing gap in terrorism coverage threatens the stability of 
America's economy.
  The plain fact is: private insurers, alone, cannot close this gap. 
The potential loss is simply too great for any one company or industry 
to absorb. The federal government must be a partner.
  We've done it before. During World War II, the Government authorized 
a program, administered by private insurers, which insured property 
against ``enemy attack.'' We need a similar effort today. That is what 
this bill is about.
  The Congress is working closely with the President to improve the 
physical security of our nation. We should be no less vigilant in 
defending America's economic security from the catastrophic losses 
associated with terrorism. We must pass a terrorism bill. We cannot 
afford to let this critical measure be held hostage any longer by a 
handful of Senators who want to use it to pass extraneous measures. The 
risks to America's economic security is too great.
  The President has made that clear. The market is making it clear. We 
need to close the terrorism insurance gap now. No more delays. We urge 
our colleagues to join us.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. REID. Mr. President, if I could just say a few words before my 
friend from Connecticut who worked so hard on this legislation makes a 
few remarks, the minority should understand that Senator Daschle has no 
intention of peremptorily moving to invoke cloture. I think there 
should be a reasonable time for people to offer amendments. I also say 
that we also have to work constructively on this legislation.
  The fact is that we have as a result of what is facing this country 
lots of bills, not the least of which is the Defense authorization 
bill. We have to complete that before the July 4th recess. We are going 
to do that.
  There is a lot of work to do. The majority leader has stated publicly 
that this legislation is important. Senator Dodd has spent untold time 
trying to work out an agreement. If everybody believes it as important 
as they say it is, then we should be able to get a bill.
  I respectfully say to my friend, the Republican leader, that they 
have a right to offer all kinds of amendments and any amendment they 
want to dealing with liability, lawyers, and other things. But I hope 
if they lose, they do not cause us to not have a bill.
  This bill is important to the real estate industry, the developers, 
and the people in the construction business. We have hotels, 
businesses, shopping centers, and they have all come to all of us. They 
believe this is important.

[[Page S5441]]

  We are going to have a debate. One of the principal participants in 
that debate will be the Presiding Officer, who was an insurance 
commissioner of the third or fourth largest State in United States. He 
certainly has had a view that a lot of us haven't had as to what 
insurance is all about. We look forward to the debate with the Senator 
from Florida, and the debate generally. I hope it is as constructive as 
the debate was on the estate tax. It was a good debate over the last 2 
days. When we have debates like that, it makes this body look good. I 
think people look not at the result as much as how we are treating each 
other. Senators, we should be happy. I am happy with the result we had 
with the estate tax. But the debate was good. People had a chance to 
voice their opinions. I hope we do just as well on this important 
legislation on terrorism insurance.
  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. DODD. Mr. President, I thank the distinguished majority whip, 
Senator Reid, for propounding the unanimous consent request. I thank 
the distinguished Republican leader for agreeing to allow this to go 
forward, and my colleague from Texas, and colleague from Kentucky, who 
have had a longstanding interest in the subject matter, as many Members 
have, including the Presiding Officer. And other Members have come to 
me over time with various ideas and proposals to be included as part of 
the terrorism insurance package.
  Let me say my good friend from Mississippi, the Republican leader, 
raised the issue about where we were. He is right. There was a time not 
so long ago--about 8 or 9 months ago--when we sat down and innocently 
thought that three or four Members sitting together could write 
something and then come to the floor, and people would say, You have 
done a lot of work, go ahead. As oftentimes happens, it is not unique. 
We thought we had put something together. We came to the floor and 
discovered that there were 97 other Members who had some ideas--not all 
97 but a good many had other thoughts about which they felt strongly.
  I don't regret the effort that my colleague from Texas and I made 
with Senator Sarbanes of Maryland. Senator Schumer was involved I think 
to some degree in all of that, and others as well. We made a good faith 
effort. We thought it would work. It didn't.
  December 20, I think, was the date when there was a unanimous consent 
request to bring the matter up. There was an objection expressed at 
that time. From then on, we have tried all sorts of ideas and 
variations that would get us to a unanimous consent where we would have 
a limited number of amendments to be brought up to try to focus on this 
bill. None of that worked.
  We are now in a situation where we had a rule XIV on the bill on June 
7, and this evening we avoided a cloture motion, for which I am 
grateful. That would have delayed consideration of this bill.
  I am not going to debate the merits or demerits of the bill tonight. 
I see my colleague from Maryland, the chairman of the committee, is 
here. He may want to be heard on this as well.
  But this is an important bill. It isn't because I think it is. It is 
important because you hear from almost every major metropolitan area in 
the country now that is feeling the real pinch of a slowdown as a 
result of the inability and an unwillingness, for obvious reasons, of 
banks to lend money to major real estate and construction projects 
without those projects having insurance on terrorism.
  In the absence of getting that, which the industry is unwilling to 
write because they cannot figure out how to cost all of this--that is 
understandable as well from the business standpoint--a lot of these 
projects are not moving. Jobs are being lost, and the economy is 
feeling the effects of it.
  That is a shorthand version of what is going on. It hasn't reached 
such proportion yet that it would stop any kind of economic growth. But 
it certainly, by every estimation, is having a negative impact on our 
economic recovery.
  Now we have put together the proposal. I know there will be 
amendments offered. My hope is they will be relevant amendments so they 
don't use this vehicle to bring up all sorts of extraneous matters.
  We will try to limit the debate to some degree on the bill we are 
proposing and the one which I suspect will finally be adopted. Even if 
some amendments are accepted, it will be substantially different from 
what the other body proposed.
  Even if we complete our work here, there is a monumental amount of 
work to be done to reach agreement with the other body. If we hope to 
get that completed at some point between now and over the August 
break--I hope earlier--we are going to have to finish this bill fairly 
quickly.
  I urge Members who have an interest to come over and be heard. If you 
can limit your time so we can have a good debate--I hope no one intends 
to filibuster on this bill. That would certainly be unwise, in my view.
  We will try to produce a product that will get us to conference and 
further refinement, and resolve the issues so we can send it to the 
President of the United States for his signature; and, sort of cut this 
Gordian knot that sits out there as a real choke point, if you will, in 
the economic flow of our country. That is what this is at this point.
  I thank again my colleagues for not objecting to the unanimous 
consent request that we go to this bill. That is a good sign. I know 
there is still a lot of difference. But I take that as an omen that we 
at least can bring up this matter and try to resolve these differences. 
I look forward to the debate tomorrow. I believe we will be here at 10 
o'clock tomorrow to start debate on bill, and make opening statements, 
if they need to be made, and then engage in, hopefully, a healthy but 
brief debate and discussion on this important matter.
  I see my colleague from Maryland here who may want to express some 
thoughts.
  The PRESIDING OFFICER. The Senator from Maryland.
  Mr. SARBANES. Mr. President, I will be very brief. I join my very 
able colleague from Connecticut in underscoring the importance of this 
legislation and the problem with which it seeks to deal. It is one that 
we have been wrestling with for a number of months.
  I particularly commend the able Senator from Connecticut for his 
leadership on this issue. He has been indefatigable in focusing our 
attention on this matter and repeatedly insisting that we have to come 
to terms with this issue.
  I am pleased that we are now going to be able to actually move 
tomorrow to the legislation and begin this important debate. I will 
defer my comments on the substance of this legislation until tomorrow, 
until that debate begins.

  But Senator Dodd has played a major role, an instrumental role, 
throughout and, obviously, has played a large part in bringing us to 
the point at which we are now, which offers us now the opportunity to 
finally address this issue.
  I understand, under the consent agreement, it is a wide open 
consideration that lies ahead of us. I would urge my colleagues of the 
necessity to show some restraint as we try to do that because we are 
under, obviously, some very significant time pressures.
  But I look forward to that debate and the opportunity to try to 
address this issue on its substance. We have heard, of course, a great 
deal from across the country about this matter.
  I simply want to echo the able Senator from Connecticut in saying 
that I hope we can consider this matter in a very positive and 
constructive way. I know Members have different ideas on how we ought 
to go about it. We hope to be able to consider those in a reasonable 
and proper way and reach some conclusion, hopefully, in the near 
future.
  I thank the Chair and I yield the floor.
  The PRESIDING OFFICER. The Senator from Kansas.

                          ____________________