Committee Approves TRIA, FSOC Refom Legislation
June 20, 2014 -
The House Financial Services Committee today approved legislation to bring much needed reforms to the Terrorism Risk Insurance Act (TRIA) and much needed transparency and accountability to the Financial Stability Oversight Council (FSOC).
Speaking about the TRIA Reform Act, Chairman Jeb Hensarling (R-TX) said , “I do believe this bill is a reasonable set of changes to improve a needed-but-yet-still-temporary program and prepares stakeholders for the future by realistically assessing the true benefits and costs of TRIA’s current framework.”
“I applaud my colleagues on the Committee for passing the TRIA Reform Act to finally begin the transition to a terrorism risk insurance market that is more accountable to American families and hardworking taxpayers,” said Rep. Randy Neugebauer (R-TX), Chairman of the Financial Services Housing and Insurance Subcommittee and sponsor of the TRIA Reform Act of 2014.
The following is a summary of the bills the committee passed:
H.R. 4871, the TRIA Reform Act of 2014, sponsored by Rep. Randy Neugebauer (R-TX). The bill was approved 32-27.
H.R. 4871 reauthorizes the Terrorism Risk Insurance Act for five years while strengthening vital taxpayer protections and encouraging more robust private market participation without curtailing the program’s fundamental functions.
H.R. 4881, a bill to place a 1-year moratorium on the authority of FSOC to make financial stability determinations, sponsored by Rep. Randy Neugebauer (R-TX). The bill was approved 32-27.
H.R. 4881 would prevent the FSOC from designating any new insurance companies or asset managers as “systemically important” for one year as Congress continues to review the FSOC’s process for deeming bank and non-bank institutions as such.
H.R. 4387, the FSOC Transparency and Accountability Act, sponsored by Rep. Scott Garrett (R-NJ). The bill was approved 32-27
H.R. 4387 improves the FSOC’s transparency and accountability by opening their meetings to non-FSOC members. It also increases the scrutiny of FSOC decisions including systemic designations.