[Congressional Record Volume 153, Number 140 (Thursday, September 20, 2007)]
[Extensions of Remarks]
[Pages E1935-E1936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      TERRORISM RISK INSURANCE REVISION AND EXTENSION ACT OF 2007

                                 ______
                                 

                               speech of

                        HON. BENNIE G. THOMPSON

                             of mississippi

                    in the house of representatives

                     Wednesday, September 19, 2007

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 2761) to 
     extend the Terrorism Insurance Program of the Department of 
     the Tresury, and for other purposes;

  Mr. THOMPSON of Mississippi. Mr. Chairman, I rise in support of H.R. 
2761, the Terrorism Risk Insurance Act (TRIA) Revision and Extension, 
as Chairman of the Committee on Homeland Security. This bill 
necessarily reauthorizes TRIA for 15 years--through 2022. At its 
essence, TRIA provides a Federal backstop to the insurance industry by 
providing compensation for a portion of insured losses resulting from 
acts certified by the Federal government as acts of terrorism. 
Importantly, TRIA has no cost to the taxpayer unless there is a 
terrorist attack. This program is not an ongoing subsidy to the 
insurance industry but, instead, an incident-based program that will 
help to ensure the continuity of our livelihoods and commerce in the 
wake of a terrorist incident in the United States.
  Mr. Chairman, history has shown that Al Qaeda and other extremist 
organizations will explicitly direct acts of terror against American 
citizens and property in an effort to inflict economic harm upon this 
country. The Congressional Research Service estimated that insured 
losses from the attacks on the World Trade Center total around $32 
billion. This bill helps build resiliency in our country to respond to 
the known objectives of our adversaries.
  As the Committee with oversight of the Department of Homeland 
Security (DHS), our Committee works diligently to ensure that DHS

[[Page E1936]]

effectively executes and manages its duties. Since its inception, there 
has been an understandable focus on the protection of the United States 
against acts of terror. However, as demonstrated in the wake of 
Hurricane Katrina, I do not believe that there has been an adequate 
focus on recovering from the aftermath of a catastrophic incident by 
the Department. I believe that the extension of TRIA demonstrates our 
nation's necessary commitment to planning for the recovery and 
resumption of economic activity following an act of terrorism. Whereas 
we can never take our eyes off of protection and prevention, we must 
show a commitment to resiliency in the wake of an incident. This bill 
will help our nation begin its climb back to normality should we ever 
again be struck on our shores by terrorists.
  Furthermore, the revision and extension of TRIA represents a vital 
element of homeland security, particularly in its protection of 
critical infrastructure: the effective cooperation between the public 
and private sectors. The Committee on Homeland Security has focused 
extensively on this necessary partnership and the homeland security 
solutions that can be achieved by both sectors working together. This 
necessary partnership will be essential to the successful stabilization 
of the United States economy at a time of national crisis, should one 
occur.
  Last year, I expressed my concern with the TRIA not requiring 
insurers to offer coverage from acts of nuclear, biological, chemical, 
and radiological (NBCR) terrorism. Studies by numerous entities 
concluded that the risk of NBCR terrorism is essentially uninsurable 
unless there is a Federal government backstop. I am pleased that this 
legislation includes acts of NBCR terrorism in TRIA and, therefore, 
provides that federal backstop. This provision will hopefully encourage 
efforts by the insurance industry while providing it with the necessary 
support that it needs.
  I am pleased that the bill incorporates the Secretary of DHS, 
especially relating to the certification of NBCR terrorism. It says 
that where a certified act of terrorism is carried out by means of an 
NBCR weapon or instrumentality, the Secretary of the Treasury will 
certify that act as an act of NBCR terrorism. Importantly, if a 
certified act of terrorism involves any other ``weapon or 
instrumentality,'' then the Secretary of the Treasury will consult with 
the Secretary of Homeland Security, among other officials, to determine 
whether the act of terrorism meets the definition of NBCR terrorism, as 
defined by the bill. This language recognizes the ever-changing threat 
we face as well as the expertise and sophistication of DHS.
  It is important that this extension of TRIA will be for 15 years. 
This long-term extension will enhance economic stability--for example, 
by bringing more stability to the real estate and construction 
industries so that they can move forward with large-scale building 
projects in areas considered at high risk for terrorism. After all, 
TRIA was enacted in 2002 in an attempt to stabilize the economy that 
was badly disrupted by the events of 9/11 and to spur commercial 
development, as well as to prevent an industry-wide catastrophe in the 
event of another terrorist attack. This 15-year extension will create 
the predictability and confidence that the private sector needs to make 
investments that help our national economy.
  This legislation will help our country and its industry spur economic 
development and, importantly, will provide the necessary economic 
security in the aftermath of a terrorist event to get our country 
moving as quickly as possible.
  In closing, let me thank my colleagues on the Financial Services 
Committee for their leadership on this legislation, especially my 
colleagues Chairman Frank as well as Representative Carolyn Maloney of 
New York.
  I encourage my colleagues to support this legislation.

                          ____________________