109 HR 4314 RH: Terrorism Risk Insurance Revision Act of 2005
U.S. House of Representatives
2005-12-06
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

IB
Union Calendar No. 180
109th CONGRESS 1st Session
H. R. 4314
[Report No. 109–327]
IN THE HOUSE OF REPRESENTATIVES

November 14, 2005
Mr. Baker (for himself, Mr. Oxley, Mrs. Kelly, Ms. Pryce of Ohio, Mr. Sessions, Mr. Ferguson, Mr. Renzi, Mr. Fossella, and Mr. Davis of Kentucky) introduced the following bill; which was referred to the Committee on Financial Services

December 6, 2005
Additional sponsor: Mr. King of New York

December 6, 2005
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
Strike out all after the enacting clause and insert the part printed in italic
For text of introduced bill, see copy of bill as introduced on November 14, 2005

A BILL
To extend the applicability of the Terrorism Risk Insurance Act of 2002.

1.Short TitleThis Act may be cited as the Terrorism Risk Insurance Revision Act of 2005.
2.Extension of program and program changes
(a)In generalTitle I of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended—
(1)by striking sections 101 through 106 and inserting the following new sections:

101.Congressional findings and purpose
(a)FindingsThe Congress finds that—
(1)the ability of businesses and individuals to obtain property, casualty, group life, and NBCR 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;
(2)property, casualty, and life 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;
(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;
(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 cost of future terrorist events, and therefore the size, funding, and allocation of the risk of loss caused by such acts of terrorism;
(5)a decision by property, casualty, group life, and NBCR insurers to deal with such uncertainties, either by terminating property, casualty, group life and NBCR coverage for losses arising from 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)PurposeThe purpose of this title 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, casualty, group life, and NBCR 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.
102.DefinitionsIn this title, the following definitions shall apply:
(1)Act of terrorism
(A)CertificationThe 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 an act of terrorism;
(ii)to be a violent act or an act that is dangerous to—
(I)human life;
(II)property; or
(III)infrastructure;
(iii)to have resulted in damage within the United States, or outside of the United States in the case of—
(I)an air carrier or vessel described in paragraph (5)(B); or
(II)the premises of a United States mission; and
(iv)to have been committed by an individual or individuals 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)LimitationNo act shall be certified by the Secretary as an act of terrorism if the act is committed as part of the course of a war declared by the Congress, except that this clause shall not apply with respect to any coverage for workers’ compensation or group life insurance.
(C)Determinations finalAny certification of, or determination not to certify, an act as an act of terrorism under this paragraph shall be final, and shall not be subject to judicial review.
(D)NondelegationThe Secretary may not delegate or designate to any other officer, employee, or person, any determination under this paragraph of whether, during the effective period of the Program, an act of terrorism has occurred.
(2)AffiliateThe term affiliate means, with respect to an insurer, any insurer that owns, is owned by, or is under common ownership with another insurer.
(3)Casualty insuranceThe term casualty insurance means—
(A)insurance, including excess insurance and surety insurance, against legal liability for losses caused by the death, injury, or disability of any person or for damage to property, with provision for medical, hospital and surgical benefits to the injured persons; and
(B)for the purposes of this Act, does not include any type of commercial automobile or workers’ compensation insurance.
(4)Covered line of insuranceThe term covered line of insurance means—
(A)commercial property insurance, commercial casualty insurance, workers’ compensation insurance and group life insurance; and
(B)does not include—
(i)Federal crop insurance issued or reinsured under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), or any other type of crop or livestock insurance that is privately issued or reinsured;
(ii)private mortgage insurance (as that term is defined in section 2 of the Homeowners Protection Act of 1998 (12 U.S.C. 4901)) or title insurance;
(iii)financial guaranty insurance issued by monoline financial guaranty insurance corporations;
(iv)insurance for medical malpractice;
(v)health or life insurance, except group life insurance;
(vi)flood insurance provided under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.);
(vii)reinsurance or retrocessional reinsurance; or
(viii)commercial automobile insurance.
(5)Direct earned premiumThe term direct earned premium means a direct earned premium for commercial property, commercial casualty, workers’ compensation, or group life insurance issued by any insurer for insurance against losses occurring at the locations described in subparagraphs (A) and (B) of paragraph (10).
(6)Exempt commercial purchaserThe term exempt commercial purchaser means any person purchasing commercial insurance that meets the following requirements:
(A)The person employs or retains a qualified risk manager to negotiate insurance coverage.
(B)The person meets at least two of the following criteria:
(i)The person possesses a net worth in excess of $20,000,000.
(ii)The person generates annual revenues in excess of $50,000,000.
(iii)The person employs more than 500 full time or full time equivalent employees per individual insured or is a member of affiliated group employing more than 1,000 employees in the aggregate.
(iv)The person pays annual aggregate nationwide insurance premiums in excess of $100,000 for covered lines of insurance.
(v)The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least $30,000,000.
(vi)The person is a municipality with a population in excess of 50,000 persons.
(7)Exempt commercial purchaser certificationThe term exempt commercial purchaser certification means a written certification that the insurer offering a policy to an exempt commercial purchaser has obtained, at least within the previous 12 months, a certification signed by the qualified risk manager, the chief executive officer, or the chief financial officer of the exempt commercial purchaser, certifying with respect to the insurance to which the requirements of section 103(c)(1) apply to that insurer that—
(A)the purchaser has an employee that meets the definition of a qualified risk manager under this section;
(B)the purchaser meets the definition of an exempt commercial purchaser in accordance with this section;
(C)the purchaser is aware that the policy being considered for purchase contains forms and rates that are not subject to State regulatory review or approval;
(D)the purchaser has or has retained the necessary expertise to negotiate its own policy language and rates; and
(E)the purchaser agrees to the use of exempted rates and forms by its insurer or insurers.
(8)Group life insuranceThe term group life insurance means an insurance contract that provides term life insurance coverage, accidental death coverage, or a combination thereof, for a number of individuals under a single contract, on the basis of a group selection of risks, but does not include Corporate Owned Life Insurance or Business Owned Life Insurance, each as defined under the Internal Revenue Code of 1986, or any similar product.
(9)Home StateThe term home State means as follows:
(A)In the case of a policy written for commercial risks that are primarily located in a State, such term means such State.
(B)If subparagraph (A) does not apply, such term means the State where the commercial policyholder has its principal place of business (such as where the policyholder’s headquarters are located, as determined by the predominant physical location in the United States of the officers and senior management of the policyholder).
(10)Insured lossThe term insured loss means any loss resulting from an act of terrorism (including an act of war, in the case of workers’ compensation and group life insurance) that is covered by primary or excess property, casualty, workers’ compensation, or group life insurance issued by an insurer if such loss—
(A)occurs within the United States; or
(B)occurs to an air carrier (as defined in section 40102 of title 49, United States Code), 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, or at the premises of any United States mission.
(11)InsurerThe term insurer means any entity, including any affiliate thereof—
(A)that is—
(i)licensed or admitted to engage in the business of providing primary or excess insurance in any State;
(ii)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;
(iii)approved for the purpose of offering a covered line of insurance by a Federal agency in connection with maritime, energy, or aviation activity;
(iv)a State residual market insurance entity or State workers’ compensation fund; or
(v)any other entity described in section 103(f), to the extent provided in the rules of the Secretary issued under section 103(f);
(B)that receives direct earned premiums for any type of covered line of insurance coverage, other than in the case of entities described in subsections (d) and (f) of section 103; and
(C)that meets any other criteria that the Secretary may reasonably prescribe.
(12)Insurer deductibleThe term insurer deductible means—
(A)for the Transition Period, the value of an insurer’s direct earned premiums over the calendar year immediately preceding the date of enactment of this Act, multiplied by 1 percent;
(B)for Program Year 1, the value of an insurer’s direct earned premiums over the calendar year immediately preceding Program Year 1, multiplied by 7 percent;
(C)for Program Year 2, the value of an insurer’s direct earned premiums over the calendar year immediately preceding Program Year 2, multiplied by 10 percent;
(D)for Program Year 3, the value of an insurer’s direct earned premiums over the calendar year immediately preceding Program Year 3, multiplied by 15 percent;
(E)for Program Year 4—
(i)except as provided in clause (ii), the value of an insurer’s direct earned premium for a covered line of insurance over the calendar year immediately preceding Program Year 4, multiplied by—
(I)for workers’ compensation insurance, 16 percent;
(II)for group life insurance, 21.5 percent;
(III)for property insurance, 20 percent; and
(IV)for casualty insurance, 25 percent; and
(ii)with respect to NBCR terrorism coverage, the value of an insurer’s direct earned premium for a covered line of insurance over the calendar year immediately preceding Program Year 4, multiplied by the following percentages which shall be treated as sub-deductibles that apply in lieu of the deductibles set forth in clause (i) for NBCR terrorism losses—
(I)for workers’ compensation insurance, 7.5 percent;
(II)for group life insurance, 7.5 percent;
(III)for property insurance, 7.5 percent; and
(IV)for casualty insurance, 7.5 percent; and
(iii)if, for any covered line of insurance, an insurer incurs insured losses caused by NBCR terrorism, such NBCR insured losses shall be applied against both the deductible set forth in clause (i) and the NBCR terrorism deductible set forth in clause (ii) for that covered line of insurance;
(F)for any Additional Program Years—
(i)except as provided in clause (ii), the value of an insurer’s direct earned premium for a covered line of insurance over the calendar year immediately preceding that year, multiplied by the insurer deductible for each covered line of insurance for the preceding calendar year plus an additional percentage, as follows—
(I)for workers’ compensation insurance, 2.0 percent;
(II)for group life insurance, 2.5 percent;
(III)for property insurance, 2.5 percent; and
(IV)for casualty insurance, 5.0 percent; and
(ii)with respect to NBCR terrorism coverage, the value of an insurer’s direct earned premium for a covered line of insurance over the calendar year immediately preceding that year, multiplied by the NBCR terrorism deductible for the preceding year for that covered line of insurance plus the following additional percentages, all of which shall be treated as subdeductibles that apply in lieu of the deductibles listed in clause (i) for NBCR terrorism insured losses—
(I)for workers’ compensation insurance, 0.75 percent;
(II)for group life insurance, 0.75 percent;
(III)for property insurance, 0.75 percent; and
(IV)for casualty insurance, 0.75 percent; and
(iii)if, for any covered line of insurance, an insurer incurs insured losses caused by NBCR terrorism, such NBCR insured losses shall be applied against both the deductible set forth in clause (i) and the NBCR terrorism deductible set forth in clause (ii) for that covered line of insurance;
(G)notwithstanding subparagraphs (A) through (F), for the Transition Period and any other Program Year or other calendar year, if an insurer has not had a full year of operations during the calendar year immediately preceding such Period or year, such portion of the direct earned premiums of the insurer as the Secretary determines appropriate, subject to appropriate methodologies established by the Secretary for measuring such direct earned premiums; and
(H)if, in any calendar year, aggregate industry insured losses exceed $1,000,000,000, the insurer deductibles for the next calendar year shall be reduced by 0.1 percent for each $1,000,000,000 in insured losses that have occurred during the preceding calendar year, except that no insurer deductible shall be reduced below 5 percent.
(13)NAICThe term NAIC means the National Association of Insurance Commissioners.
(14)OwnershipAn insurer owns another insurer if the insurer, directly or indirectly or acting through one or more other persons, owns 25 percent or more of any class of voting securities of the other insurer.
(15)NBCR terrorismThe term NBCR terrorism means an act of terrorism involving nuclear, biological, chemical, or radioactive reactions, releases, or contaminations, to the extent any insured losses are caused by any such reactions, releases, or contaminations.
(16)PersonThe 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.
(17)ProgramThe term Program means the Terrorism Insurance Program established by this title.
(18)Program years
(A)Transition periodThe term Transition Period means the period beginning on the date of enactment of this Act and ending on December 31, 2002.
(B)Program year 1The term Program Year 1 means the period beginning on January 1, 2003 and ending on December 31, 2003.
(C)Program year 2The term Program Year 2 means the period beginning on January 1, 2004 and ending on December 31, 2004.
(D)Program year 3The term Program Year 3 means the period beginning on January 1, 2005 and ending on December 31, 2005.
(E)Program year 4The term Program Year 4 means the period beginning on January 1, 2006 and ending on December 31, 2006.
(F)Additional program yearsThe term Additional Program Year means any additional one-year period after Program Year 4 during which the Program is in effect, which period shall begin on January 1 and end on December 31 of the same calendar year.
(19)Property insuranceThe term property insurance means—
(A)except as provided in subparagraph (B), insurance on real or personal property of every kind, including excess insurance, against loss or damage from any and all hazard or cause and against loss consequential upon such loss or damage, including business interruption insurance, other than non-contractual legal liability for such loss or damage; and
(B)does not include any type of commercial automobile or workers’ compensation insurance.
(20)Qualified risk managerThe term qualified risk manager means any person who meets all of the following criteria:
(A)The person is an employee of, or third party consultant retained by, the commercial policyholder.
(B)The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance.
(C)The person possesses at least 1 of the following credentials:
(i)A bachelor’s or higher degree in risk management issued by an accredited college or university.
(ii)A designation as a Chartered Property and Casualty Underwriter (in this subparagraph referred to as CPCU) issued by the American Institute for CPCU/Insurance Institute of America.
(iii)A designation as an Associate in Risk Management (ARM) issued by American Institute for CPCU/Insurance Institute of America.
(iv)A designation as a Certified Risk Manager (CRM) issued by the National Alliance for Insurance Education & Research.
(v)A designation as a RIMS Fellow (RS) issued by the Global Risk Management Institute.
(vi)At least 5 years of experience in 1 or more of the following areas of commercial property insurance or commercial casualty insurance:
(I)Risk financing.
(II)Claims administration.
(III)Loss prevention.
(IV)Risk and insurance coverage analysis.
(21)SecretaryThe term Secretary means the Secretary of the Treasury.
(22)StateThe 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, each of the United States Virgin Islands, and any territory or possession of the United States.
(23)United StatesThe term United States means the several States, and includes the territorial sea and the continental shelf of the United States, as those terms are defined in the Violent Crime Control and Law Enforcement Act of 1994 (18 U.S.C. 2280, 2281).
(24)Workers’ compensationThe term workers’ compensation means insurance against loss from liability imposed by law upon employers to compensate employees and their dependents for injury sustained by the employees arising out of and in the course of the employment, irrespective of negligence or of the fault of either party.
(25)Rule of construction for datesWith respect to any reference to a date in this title, such day shall be construed—
(A)to begin at 12:01 a.m. on that date; and
(B)to end at midnight on that date.
103.Terrorism insurance program
(a)Establishment of program
(1)In generalThere is established in the Department of the Treasury the Terrorism Insurance Program.
(2)Authority of the secretaryNotwithstanding 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).
(3)Mandatory participationEach entity that meets the definition of an insurer under this title shall participate in the Program.
(b)Conditions for Federal paymentsNo payment may be made by the Secretary under this section with respect to an insured loss that is covered by an insurer, unless—
(1)the person that suffers the insured loss, or a person acting on behalf of that person, files a claim with the insurer;
(2)the insurer 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 that is issued before the date of enactment of this Act, not later than 90 days after that date of enactment;
(B)in the case of any policy that is issued within 90 days of the date of enactment of this Act, at the time of offer, purchase, and renewal of the policy; and
(C)in the case of any policy that is issued more than 90 days after the date of enactment of this Act, on a separate line item in the policy, at the time of offer, purchase, and renewal of the policy;
(3)the insurer processes the claim for the insured loss in accordance with appropriate business practices, and any reasonable procedures that the Secretary may prescribe; and
(4)the insurer submits to the 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 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 availabilityEach entity that meets the definition of an insurer under section 102—
(1)shall make available, in all of its covered lines of insurance policies, 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;
(2)shall make available, in any of its covered lines of insurance policies that exclude coverage for losses resulting from NBCR terrorism, coverage for losses resulting from NBCR terrorism that may differ materially from the terms, amounts, and other coverage limitations applicable to losses arising from events other than NBCR terrorism; and
(3)shall make available, in any life insurance policy, coverage that does not preclude future lawful foreign travel by the person insured, and shall not charge a premium for such coverage that is excessive and not based on a good faith actuarial analysis.
(d)State residual market insurance entities
(1)In generalThe Secretary shall issue regulations, as soon as practicable after the date of enactment of this Act, that apply the provisions of this title to State residual market insurance entities, State workers’ compensation funds, and State workers’ compensation reinsurance pools.
(2)Treatment of certain entitiesFor purposes of the regulations issued pursuant to paragraph (1)—
(A)a State residual market insurance entity that does not share its profits and losses with private sector insurers shall be treated as a separate insurer; and
(B)a State residual market insurance entity that shares its profits and losses with private sector insurers shall not be treated as a separate insurer, and shall report to each private sector insurance participant its share of the insured losses of the entity, which shall be included in each private sector insurer’s insured losses.
(3)Treatment of participation in certain entitiesAny insurer that participates in sharing profits and losses of a State residual market insurance entity shall include in its calculations of premiums any premiums distributed to the insurer by the State residual market insurance entity.
(e)Insured loss shared compensation
(1)Federal share
(A)In generalSubject to subparagraphs (B) and (C), the Federal share of compensation under the Program to be paid by the Secretary for insured losses of an insurer during each Program Year shall be equal to that portion of the amount of such insured losses for each covered line of insurance that exceeds the applicable insurer deductible required to be paid during such Program Year, multiplied by a percentage based on aggregate industry insured losses for a Program Year, which shall be as follows:
(i)80 percent of the aggregate industry insured losses of less than $10,000,000,000;
(ii)85 percent of the aggregate industry insured losses between $10,000,000,000 and $20,000,000,000;
(iii)90 percent of the aggregate industry insured losses between $20,000,000,000 and $40,000,000,000; and
(iv)95 percent of the aggregate industry insured losses above industry losses above $40,000,000,000;and shall be prorated by insurer based on each insurer’s percentage of the aggregate industry insured losses for that Program Year.
(B)Program triggerNo compensation shall be paid by the Secretary under subsection (a) unless the aggregate industry insured losses exceed—
(i)$50,000,000, with respect to insured losses occurring in Program Year 4;
(ii)$100,000,000, with respect to insured losses occurring in the Additional Program Year beginning on January 1, 2007;
(iii)with respect to each Additional Program Year thereafter that coverage is provided under the Program, the amount that is equal to the sum of (I) the dollar amount applicable under this subparagraph for the Program Year preceding such Additional Program Year, and (II) $50,000,000;except that the applicable Program Trigger amount shall be reduced by $10,000,000 for each $1,000,000,000 in insured losses occurring in any preceding year, provided that the Program Trigger shall not be reduced below $50,000,000 for any year.
(C)Prohibition on duplicative compensationThe Federal share of compensation for insured losses under the Program shall be reduced by the amount of compensation provided by the Federal Government to any person under any other Federal program for those insured losses.
(2)TRIA capital reserve funds
(A)EstablishmentAny insurer may establish a TRIA Capital Reserve Fund (in this section referred to as a CRF) in which it may hold funds in a fiduciary capacity on behalf of the Secretary.
(B)FundingAn insurer may fund a CRF by making an election, in advance, to treat some or all of the premiums it has disclosed pursuant to section 103(b)(2) as TRIA program fee charges imposed by the Secretary. Any such premiums for which such an election has been made must be maintained in segregated accounts in a fiduciary capacity on behalf of the Secretary. Such funds may be invested in any otherwise legally permissible manner but all interest, dividends, and capital accumulations also shall be retained in such segregated accounts on behalf of the Secretary.
(C)UseFunds from a CRF shall be collected and used by the Secretary to offset, in whole or in part, the Federal share of compensation provided to all insurers under the Program as provided for in paragraph (1), except that an insurer may first use the funds in a CRF of that insurer to satisfy any one or more of the following:
(i)The applicable insurer deductibles for the insurer.
(ii)The portion of the insurer’s losses that exceed the insurer deductible but are not compensated by the Federal share pursuant to paragraph (1).
(iii)The insurer’s obligations to pay for insured losses if the program trigger established in paragraph (1)(B) is not satisfied.
(iv)Any risk sharing obligations the insurer may have under any agreements made pursuant to or in accordance with paragraph (3).
(D)Termination
(i)Termination of programUpon termination of the Program under section 108(a), and subject to the Secretary’s continuing authority under section 108(b) to adjust claims in satisfaction of the Federal share of compensation under the Program as provided in paragraph (1) of this subsection, 10 percent of each insurer’s CRF funds shall be remitted to the Secretary and the remainder shall be remitted to the insurer. The Secretary shall determine the manner in which the remittance of such income to the insurer shall be made.
(ii)Elimination of Federal share of compensationIf the Program remains in effect but the Federal share of compensation for insured losses under the Program is eliminated from the Program, the CRF funds shall be retained and used for the purposes set forth in subparagraph (C) of this paragraph. At such time as an insurer’s liability for insured losses under the Program terminates, as a consequence of the insurer’s termination of its business or otherwise, the insurer shall remit any remaining CRF funds to the Secretary.
(3)Risk-sharing mechanisms
(A)Finding; rule of constructionCongress finds that it is desirable to encourage the growth of nongovernmental, private market reinsurance capacity for protection against losses arising from acts of terrorism. Therefore, nothing in this title shall prohibit insurers from developing risk-sharing mechanisms (including mutual reinsurance facilities and agreements) to voluntarily reinsure terrorism losses between and among themselves that are not subject to reimbursement under this section 103.
(B)Establishment of advisory committeeThe Secretary shall appoint an Advisory Committee to—
(i)encourage the creation and development of such mechanisms;
(ii)assist the Secretary and be available to administer such mechanisms; and
(iii)develop articles of incorporation, bylaws, and a plan of operation for any long-term reinsurance facility authorized or created in the future.
(C)MembershipThe Advisory Committee shall be composed of nine members who are directors, officers, or other employees of insurers that are participating or that desire to participate in such mechanisms, and who are representative of the affected sectors of the insurance industry. In making these appointments, the Secretary shall solicit major trade associations of the insurance industry to nominate lists of qualified individuals representative of the commercial property insurance, commercial casualty insurance, group life insurance, and reinsurance industries.
(4)Cap on annual liability
(A)In generalNotwithstanding paragraph (1) or any other provision of Federal or State law, if the aggregate insured losses exceed $100,000,000,000 during any Program Year (until such time as the Congress may act otherwise with respect to such losses)—
(i)the Secretary shall not make any payment under this title for any portion of the amount of such losses that exceeds $100,000,000,000; and
(ii)no insurer that has met its insurer deductible shall be liable for the payment of any portion of that amount that exceeds $100,000,000,000.
(B)Insurer shareFor purposes of subparagraph (A), the Secretary shall determine the pro rata share of insured losses to be paid by each insurer that incurs insured losses under the Program.
(5)Notice to congressThe Secretary shall notify the Congress if estimated or actual aggregate insured losses exceed $100,000,000,000 during during any Program Year and the Congress shall determine the procedures for and the source of any payments for such excess insured losses.
(6)Final nettingThe Secretary shall have sole discretion to determine the time at which claims relating to any insured loss or act of terrorism shall become final.
(7)Determinations finalAny determination of the Secretary under this subsection shall be final, unless expressly provided, and shall not be subject to judicial review.
(8)Full recoupment of Federal shareThe Secretary shall collect, for repayment of the Federal financial assistance provided in connection with all acts of terrorism (or acts of war, in the case of workers’ compensation and group life insurance), terrorism loss risk-spreading premiums in an amount equal to the total amount paid by the Secretary in accordance with this section.
(9)Policy surcharge for terrorism loss risk-spreading premiums
(A)Policyholder premiumAny amount established by the Secretary as a terrorism loss risk-spreading premium shall—
(i)be imposed as a policyholder premium surcharge on all covered lines of insurance policies in force after the date of such establishment;
(ii)begin with such period of coverage during the year as the Secretary determines appropriate; and
(iii)be based on a percentage of the premium amount charged for covered lines of insurance coverage under the policy.
(B)CollectionThe Secretary shall provide for insurers to collect terrorism loss risk-spreading premiums and remit such amounts collected to the Secretary.
(C)Percentage limitationA terrorism loss risk-spreading premium may not exceed, on an annual basis, the amount equal to 3 percent of the premium charged for covered lines of insurance coverage under the policy.
(D)Adjustment for urban and smaller commercial and rural areas and different lines of insurance
(i)AdjustmentsIn determining the method and manner of imposing terrorism loss risk-spreading premiums, including the amount of such premiums, the Secretary shall take into consideration—
(I)the economic impact on commercial centers of urban areas, including the effect on commercial rents and commercial insurance premiums, particularly rents and premiums charged to small businesses, and the availability of lease space and commercial insurance within urban areas;
(II)the risk factors related to rural areas and smaller commercial centers, including the potential exposure to loss and the likely magnitude of such loss, as well as any resulting cross-subsidization that might result; and
(III)the various exposures to terrorism risk for different lines of insurance.
(ii)Recoupment of adjustmentsAny recoupment amounts not collected by the Secretary because of adjustments under this subparagraph shall be recouped through additional terrorism loss risk-spreading premiums.
(E)Timing of premiumsThe Secretary may adjust the timing of terrorism loss risk-spreading premiums to provide for equivalent application of the provisions of this title to policies that are not based on a calendar year, or to apply such provisions on a daily, monthly, or quarterly basis, as appropriate.
(F)Replenishment of tria capital reserve fundsAfter any funds expended directly from the United States Treasury are fully repaid, the balance of the amounts collected under this paragraph shall be used to fully replenish all insurer CRFs used by the Secretary in accordance with the provisions of paragraph (2)(C) that were not used by the insurer to satisfy its obligations in accordance with clauses (i) through (iv) of paragraph (2)(C).
(f)Captive insurers and other self-insurance arrangementsThe Secretary may, in consultation with the NAIC or the appropriate State regulatory authority, apply the provisions of this title, as appropriate, to other classes or types of captive insurers and other self-insurance arrangements by municipalities and other entities (such as workers’ compensation self-insurance programs and State workers’ compensation reinsurance pools), but only if such application is determined before the occurrence of an act of terrorism in which such an entity incurs an insured loss and all of the provisions of this title are applied comparably to such entities.
(g)Reinsurance to cover exposure
(1)Obtaining coverageThis title may not be construed to limit or prevent insurers from obtaining reinsurance coverage for insurer deductibles or insured losses retained by insurers pursuant to this section, nor shall the obtaining of such coverage affect the calculation of such deductibles or retentions.
(2)Limitation on financial assistanceThe amount of financial assistance provided pursuant to this section, including amounts from a CRF used pursuant to subsection (e)(2)(C), shall not be reduced by reinsurance paid or payable to an insurer from other sources, except that recoveries from such other sources, taken together with financial assistance for the Transition Period or a Program Year provided pursuant to this section, may not exceed the aggregate amount of the insurer’s insured losses for such period. If such recoveries and financial assistance for the Transition Period or a Program Year exceed such aggregate amount of insured losses for that period and there is no agreement between the insurer and any reinsurer to the contrary, an amount in excess of such aggregate insured losses shall be returned to the Secretary.
(h)Personal lines study
(1)In generalThe Comptroller General of the United States, after consultation with the NAIC, representatives of the insurance industry, and other experts in the insurance field, including a cross-section of insurers, independent insurance agents and brokers, and policyholders, shall conduct a study concerning the exposure of personal lines (including homeowners insurance) to terrorism risk, the coverage currently available, and potential policy responses.
(2)ReportNot later than September 1, 2006, the Comptroller General shall submit a report to the Congress on the results of the study conducted under subparagraph (1), together with specific policy recommendations.
(i)Study of risks stemming from nuclear, biological, chemical and radioactive events
(1)In generalThe Comptroller General of the United States, after consultation with the NAIC, representatives of the insurance industry, including a cross-section of insurers, independent insurance agents and brokers, and policyholders, and other experts in the insurance field, shall conduct a study concerning the risk of potential terrorist acts stemming from the use of nuclear, biological, chemical, and radioactive weapons.
(2)ReportNot later than September 1, 2006, the Comptroller General shall submit a report to the Congress on the results of the study conducted under paragraph (1), together with specific policy recommendations.
(j)Study of need for Federal natural disaster catastrophe program
(1)In generalThe Comptroller General of the United States, after consultation with the NAIC, representatives of the insurance industry, including a cross-section of insurers, independent insurance agents and brokers, and policyholders, and other experts in the insurance field, shall conduct a study concerning the need for a Federal program that provides for a system of shared public and private compensation for insured losses resulting from natural disaster.
(2)IssuesThe study under this section shall include an analysis of whether, and in what manner, such a Federal program should incorporate any or all of the following concepts: tax-free capital reserves; voluntary mutual reinsurance pools; a distinction between sophisticated and non-sophisticated commercial purchasers for the purposes of exemption from regulation; or Federal support for the purchase of reinsurance by State disaster insurance programs.
(3)ReportNot later than September 1, 2006, the Comptroller General shall submit a report to the Congress on the results of the study conducted under this subsection together with specific policy recommendations.
104.General authority and administration of claims
(a)General authorityThe 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 effectively administer and implement the Program, and to ensure that all insurers and self-insured entities that participate in the Program are treated comparably under the Program.
(b)Interim rules and proceduresThe Secretary may issue interim final rules or procedures specifying the manner in which—
(1)insurers may file and certify claims under the Program;
(2)the Federal share of compensation for insured losses will be paid under the Program, including payments based on estimates of or actual insured losses;
(3)the Secretary may, at any time, seek repayment from or reimburse any insurer, based on estimates of insured losses under the Program, to effectuate the insured loss sharing provisions in section 103; and
(4)the Secretary will determine any final netting of payments under the Program, including payments owed to the Federal Government from any insurer and any Federal share of compensation for insured losses owed to any insurer, to effectuate the insured loss sharing provisions in section 103.
(c)ConsultationThe Secretary shall consult with the NAIC, as the Secretary determines appropriate, concerning the Program.
(d)Contracts for servicesThe Secretary may employ persons or contract for services as may be necessary to implement the Program.
(e)Civil penalties
(1)In generalThe Secretary may assess a civil monetary penalty in an amount not exceeding the amount under paragraph (2) against any insurer that the Secretary determines, on the record after opportunity for a hearing——
(A)has failed to charge, collect, or remit terrorism loss risk-spreading premiums under section 103(e) in accordance with the requirements of, or regulations issued under, this title;
(B)has intentionally provided to the Secretary erroneous information regarding premium or loss amounts;
(C)submits to the Secretary fraudulent claims under the Program for insured losses;
(D)has failed to provide the disclosures required under subsection (f); or
(E)has otherwise failed to comply with the provisions of, or the regulations issued under, this title.
(2)AmountThe amount under this paragraph is the greater of $1,000,000 and, in the case of any failure to pay, charge, collect, or remit amounts in accordance with this title or the regulations issued under this title, such amount in dispute.
(3)Recovery of amount in disputeA penalty under this subsection for any failure to pay, charge, collect, or remit amounts in accordance with this title or the regulations under this title shall be in addition to any such amounts recovered by the Secretary.
(f)Submission of premium information
(1)In generalThe Secretary shall annually compile information on the terrorism risk insurance premium rates of insurers for the preceding year.
(2)Access to informationTo the extent that such information is not otherwise available to the Secretary, the Secretary may require each insurer to submit to the NAIC terrorism risk insurance premium rates, as necessary to carry out paragraph (1), and the NAIC shall make such information available to the Secretary.
(3)Availability to congressThe Secretary shall make information compiled under this subsection available to the Congress, upon request.
(g)Funding
(1)Federal paymentsThere are hereby appropriated, out of funds in the Treasury not otherwise appropriated, such sums as may be necessary to pay the Federal share of compensation for insured losses under the Program to the extent such Federal share exceeds funds collected by the Secretary pursuant to section 103(e)(2).
(2)Administrative expensesThere are hereby appropriated, out of funds in the Treasury not otherwise appropriated, such sums as may be necessary to pay reasonable costs of administering the Program.
105.Establishment of Commission on Terrorism Risk Insurance
(a)In generalThere is hereby established the Commission on Terrorism Risk Insurance (in this section referred to as the Commission).
(b)Membership
(1)The Commission shall consist of 11 members, as follows:
(A)The Secretary of the Treasury or his designee.
(B)One State insurance commissioner designated by the members of the NAIC.
(C)Nine members appointed by the President, who shall be—
(i)a representative of group life insurers;
(ii)a representative of property and casualty insurers with direct written premium of $1,000,000,000 or less;
(iii)a representative of property and casualty insurers with direct written premium of more than $1,000,000,000;
(iv)a representative of multiline insurers;
(v)a representative of independent insurance agents;
(vi)a representative of insurance brokers;
(vii)a policyholder representative;
(viii)a representative of the survivors of the victims of the attacks of September 11, 2001; and
(ix)a representative of the reinsurance industry.
(2)SecretaryThe Program Director of the Terrorism Risk Insurance Act shall serve as Secretary of the Commission. The Secretary of the Commission shall determine the manner in which the Commission shall operate, including funding and staffing.
(c)Duties
(1)In generalThe Commission shall identify and make recommendations regarding—
(A)possible actions to encourage, facilitate, and sustain provision by the private insurance industry in the United States of affordable coverage for losses due to an act or acts of terrorism;
(B)possible actions or mechanisms to sustain or supplement the ability of the insurance industry in the United States to cover losses resulting from acts of terrorism in the event that—
(i)such losses jeopardize the capital and surplus of the insurance industry in the United States as a whole; or
(ii)other consequences from such acts occur, as determined by the Commission, that may significantly affect the ability of the insurance industry in the United States to independently cover such losses; and
(C)significantly reducing the expected Federal role over time in any continuing Federal terrorism risk insurance program.
(2)EvaluationsIn identifying and making the recommendations required under paragraph (1), the Commission shall specifically evaluate the utility and viability of TRIA Capital Reserve Funds made available under section 103(e)(2), any risk sharing mechanism created or made available under section 103(e)(3), a Federally created or mandated reinsurance facility, empowering such a facility to issue pre-event financing bonds, post-event financing bonds, assessments, single or multiple pooling arrangements, and other risk sharing arrangements to accomplish, in whole or in part, the specified objectives, taking into consideration the studies and reports to the Congress pursuant to subsections (h) and (i) of section 103.
(3)ReportNot later than December 31, 2006, the Commission shall submit a report to Congress evaluating and making recommendations regarding whether there is a need for a Federal terrorism risk insurance program and, if so, shall make a specific, detailed recommendation for the replacement of the Program, including specific, detailed recommendations for the creation of a terrorism reinsurance facility or facilities or single or multiple pooling arrangements, or both.
(d)Effect on existing programFor purposes of section 108(a), the Secretary shall make a determination not later than January 31, 2007, of whether the Commission has satisfied its obligations under subsection (c)(3).
106.Preservation provisions
(a)State lawNothing in this title shall affect the jurisdiction or regulatory authority of the insurance commissioner (or any agency or office performing like functions) of any State over any insurer or other person—
(1)except as specifically provided in this title; and
(2)except that—
(A)the definition of the term act of terrorism in section 102 shall be the exclusive definition of that term for purposes of compensation for insured losses under this title, 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 title; and
(B)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 108, including authority in subsection 108(b), books and records of any insurer that are relevant to the Program shall be provided, or caused to be provided, to the Secretary, upon request by the Secretary, notwithstanding any provision of the laws of any State prohibiting or limiting such access; and
(3)except that with respect to coverage required to be made available under section 103(c)—
(A)no laws or regulations of a State imposing a diligent search requirement for the placement of a surplus lines policy shall apply in connection with the purchase of such insurance by an exempt commercial policyholder; and
(B)no laws or regulations of a State, except of the home State, imposing a diligent search requirement for the placement of a surplus lines policy shall apply with respect to the placement of a multi-State surplus lines commercial insurance policy, provided the contract of insurance insures risks in the home State.
(b)Streamlined rate and form filingThe Congress intends that, by December 31, 2007, all States, with respect to submission of a commercial property insurance policy or commercial casualty insurance policy that includes coverage for acts of terrorism—
(1)implement and fully utilize the System for Electronic Rate and Form Filing (in this section referred to as SERFF), developed by the NAIC, without deviation to provide a single point for electronic filing of property insurance and casualty insurance forms for review;
(2)update SERFF to provide a single coordinated checklist for inputting the required information used by various States for filing reviews and designating to which States the information will be submitted;
(3)allow the option of filing of self-certified commercial property insurance and commercial casualty insurance forms through a substantially nationwide coordinated electronic filing system that—
(A)includes a review checklist with uniform nomenclature clearly establishing what is required under the laws of such State for a compliant filing of such forms;
(B)uses a single input system and transmittal document that allows the filer to submit such form for review without required format deviations to any combination of the States participating in the system;
(C)does not require prior approval for such self-certified form filing;
(D)keeps such filings confidential until they are implemented, deemed implemented, or disapproved; and
(E)only allows disapproval of such filings in writing based on specific standards that are published in statute, rule, or regulation.
(c)Streamlined surplus lines placementThe Congress intends that, by December 31, 2007, all States streamline their surplus lines diligent search rules with respect to the placement of surplus lines policies in any covered line of insurance that includes coverage for acts of terrorism by providing for—
(1)automatic export for exempt commercial purchasers, under which a surplus lines broker seeking to obtain, provide, or place insurance in a State for an insured that qualifies as an exempt commercial purchaser may procure surplus lines insurance from or place surplus lines insurance with any nonadmitted insurer without making a diligent search to determine whether the full amount or type of insurance sought by the exempt commercial purchaser can be obtained from admitted insurers in such State.
(2)home State regulation of diligent search requirements, that provides that, except as provided in paragraph (1), only the home State may impose a diligent search requirement for the placement of a multi-State surplus lines commercial insurance policy, provided the contract of insurance insures risks in the Home State.
(d)Existing reinsurance agreementsNothing in this title shall be construed to alter, amend, or expand the terms of coverage under any reinsurance agreement in effect on the date of enactment of this Act. The terms and conditions of such an agreement shall be determined by the language of that agreement.; and
(2)in section 108—
(A)by striking subsection (a) and inserting the following new subsection:

(a)Termination of program
(1)In generalExcept as provided in paragraph (2), the Program shall terminate on December 31, 2008.
(2)Failure of commission to submit reportIf the Secretary determines pursuant to section 105(d) that the Commission on Terrorism Risk Insurance established under section 105 has not satisfied its obligations under section 105(c)(3), the Program shall terminate on December 31, 2007.; and
(B)in subsection (c)(1), by striking paragraph (4), (5), (6), (7), or (8) of.
(b)ApplicabilityThe amendments made by subsection (a) shall apply beginning on January 1, 2006. The provisions of the Terrorism Risk Insurance Act of 2002, as in effect on the day before the date of the enactment of this Act, shall apply through the end of December 31, 2005.

December 6, 2005
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed


		V
		112th CONGRESS
		1st Session
		H. R. 730
		IN THE HOUSE OF REPRESENTATIVES

			February 15, 2011
			Mr. Filner introduced
			 the following bill; which was referred to the
			 Committee on the
			 Judiciary

		A BILL
		For the relief of Fernando Javier
		  Cervantes.

		1.Waiver of grounds for removal
			 of, denial of admission to, Fernando Javier Cervantes
			(a)In
			 GeneralNotwithstanding
			 sections 212(a) and 237(a) of the Immigration and
			 Nationality Act, Fernando Javier Cervantes may not be removed or
			 deported from the United States, or denied admission to the United States, by
			 reason of any act of his that is a ground for removal or denial of admission
			 and is reflected in the records of the Immigration and Naturalization Service
			 of the Department of Justice, or the Visa Office of the Department of State, on
			 the date of the enactment of this Act.
			(b)Rescission of
			 Outstanding Order of Removal or DeportationThe Attorney General shall rescind any
			 outstanding order of removal or deportation, or any finding of deportability or
			 removability, that has been entered against Fernando Javier Cervantes by reason
			 of any act described in subsection (a).
			(c)Permanent
			 Residence StatusNotwithstanding any order terminating the
			 status of Fernando Javier Cervantes as an alien lawfully admitted for permanent
			 residence, for purposes of the Immigration and
			 Nationality Act he shall be considered lawfully admitted for
			 permanent residence as of the date on which such status first was granted, and
			 such status shall be considered not to have changed between such date and the
			 date of the enactment of this Act.
			(d)Establishment of
			 Good Moral CharacterNotwithstanding section 101(f) of the
			 Immigration and Nationality Act, any
			 act described in subsection (a) may not be considered in determining whether
			 Fernando Javier Cervantes is, or during any period has been, a person of good
			 moral character for purposes of the Immigration
			 and Nationality Act.


		II
		111th CONGRESS
		1st Session
		S. 1027
		IN THE SENATE OF THE UNITED STATES

			May 13, 2009
			Ms. Stabenow (for
			 herself, Mr. Bunning,
			 Mr. Brown, Ms.
			 Snowe, and Mr. Feingold)
			 introduced the following bill; which was read twice and referred to the
			 Committee on
			 Finance

		A BILL
		To amend title VII of the Tariff Act of 1930 to clarify
		  that fundamental exchange-rate misalignment by any foreign nation is actionable
		  under United States countervailing and antidumping duty laws, and for other
		  purposes.

		1.Short titleThis Act may be cited as the
			 Currency Reform for Fair Trade Act of
			 2009.
		2.FindingsCongress makes the following
			 findings:
			(1)The strength,
			 vitality, and stability of the United States economy and, more broadly, the
			 openness and effectiveness of the global trading system are critically
			 dependent upon an international monetary regime of orderly and flexible
			 exchange rates.
			(2)Increasingly in
			 recent years, a number of foreign governments have undervalued their currencies
			 by means of protracted, large-scale intervention directly or indirectly through
			 surrogates in foreign exchange markets, and this fundamental misalignment has
			 substantially contributed to distortions in trade flows, unsustainable current
			 account imbalances, and serious competitive problems for countries like the
			 United States that permit their currencies to fluctuate in response to changes
			 in market forces.
			(3)This exchange
			 depreciation serves as a subsidy for, and facilitates dumping of, exports from
			 countries that engage in this mercantilist practice.
			(4)It is consistent
			 with the agreements of the World Trade Organization and the International
			 Monetary Fund that United States trade law be amended to clarify and make
			 explicit that fundamental undervaluation by an exporting country of its
			 currency is actionable as a countervailable export subsidy and alternatively
			 can be offset by antidumping duties when injury to producers and workers in the
			 United States is caused by such subsidized and dumped imports.
			3.Fundamental and
			 actionable misalignment of a currency
			(a)In
			 generalSubtitle D of title
			 VII of the Tariff Act of 1930 (19 U.S.C. 1677 et seq.) is amended by inserting
			 after section 771B the following new section:

					771C.Fundamental and
				actionable misalignment of a currency
						(a)Fundamental and
				actionable undervaluation of a currencyFor purposes of
				subsection (c), the currency of an exporting country is fundamentally and
				actionably undervalued if—
							(1)the real effective
				exchange rate of the exporting country’s currency is undervalued by at least 5
				percent, on average, during an 18-month period that represents the most recent
				18 months for which the information required under subsection (c) is reasonably
				available, but that does not include any time later than the final month in the
				period of investigation or the period of review, as applicable;
							(2)during part or all
				of the 18-month period, the government of the exporting country has engaged
				directly or indirectly through surrogates in protracted, large-scale
				intervention in foreign exchange markets, and that intervention has involved
				the direct transfer of funds or the potential direct transfer of funds or
				liabilities;
							(3)during part or all
				of the 18-month period, the exporting country has experienced a significant and
				prolonged global current account surplus;
							(4)during part or all
				of the 18-month period, the exporting country has experienced a significant and
				prolonged bilateral current account surplus with the United States; and
							(5)during part or all
				of the 18-month period, the foreign exchange reserves held or controlled by the
				government of the exporting country have exceeded the amount necessary to repay
				its external debt obligations falling due within the coming 12 months, except
				that the requirement of this paragraph shall not be satisfied and no
				fundamental and actionable undervaluation shall be found as to the currency of
				an exporting country if the exporting country during any part of the 18-month
				period has been allowed under article XII or article XVIII, section B of the
				GATT 1994 (as defined in section 2(1)(B) of the Uruguay Round Agreements Act
				(19 U.S.C. 3501(1)(B)) to impose restrictions to safeguard its balance of
				payments.
							(b)Fundamental and
				actionable overvaluation of a currencyFor purposes of subsection
				(c), the currency of an exporting country is fundamentally and actionably
				overvalued if—
							(1)the real effective
				exchange rate of the exporting country’s currency is overvalued by at least 5
				percent, on average, during an 18-month period that represents the most recent
				18 months for which the information required under subsection (c) is reasonably
				available, but that does not include any time later than the final month in the
				period of investigation or the period of review, as applicable;
							(2)during part or all
				of the 18-month period, the government of the exporting country has engaged
				directly or indirectly through surrogates in protracted, large-scale
				intervention in foreign exchange markets, and that intervention has involved
				the direct transfer of funds or the potential direct transfer of funds or
				liabilities;
							(3)during part or all
				of the 18-month period, the exporting country has experienced a significant and
				prolonged global current account deficit;
							(4)during part or all
				of the 18-month period, the exporting country has experienced a significant and
				prolonged bilateral current account deficit with the United States; and
							(5)during part or all of the 18-month period,
				the foreign exchange reserves held or controlled by the government of the
				exporting country have been less than the amount necessary to repay its
				external debt obligations falling due within the coming 12 months, except that
				the requirement of this paragraph shall not be satisfied and no fundamental and
				actionable overvaluation shall be found as to the currency of an exporting
				country if the exporting country during any part of the 18-month period has
				been allowed under article XII or article XVIII, section B of the GATT 1994 (as
				defined in section 2(1)(B) of the Uruguay Round Agreements Act (19 U.S.C.
				3501(1)(B)) to impose restrictions to safeguard its balance of payments.
							(c)Identification
				of fundamental and actionable misalignment of a currencyIn calculating under subsection (a) or (b)
				whether the currency of an exporting country was fundamentally and actionably
				misaligned during the applicable 18-month period described in such subsection,
				the administering authority shall—
							(1)measure the level
				of any such misalignment as the simple average of the results yielded from
				application of the macroeconomic-balance approach and the
				equilibrium-real-exchange-rate approach;
							(2)rely upon data
				that are publicly available, reliable, and compiled and maintained by the
				International Monetary Fund or the World Bank or, if the International Monetary
				Fund or the World Bank cannot provide such data, by other international
				organizations or by national governments;
							(3)for the purposes
				of the initiation and the preliminary and final determinations of an
				investigation and for purposes of the preliminary and final results of a
				review, rely upon data for an 18-month period that represents the most recent
				18 months for which the information needed under this subsection is reasonably
				available at the time, but that does not include any time later than the final
				month in the period of investigation or the period of review, as
				applicable;
							(4)use
				inflation-adjusted, trade-weighted exchange rates;
							(5)implement the
				macroeconomic-balance approach and the equilibrium-real-exchange-rate approach
				using the methodologies described in the guidelines of the International
				Monetary Fund’s Consultative Group on Exchange Rate Issues, whenever possible;
				and
							(6)in the event that
				the guidelines of the International Monetary Fund’s Consultative Group on
				Exchange Rate Issues are not available, employ generally accepted economic and
				econometric techniques to implement the macroeconomic-balance approach and the
				equilibrium-real-exchange-rate approach.
							(d)Identification
				of undervaluation or overvaluation of a currency during the period of
				investigation or the period of reviewIf fundamental and
				actionable misalignment within the meaning of subsection (a) or (b) is
				identified under subsection (c) as to an exporting country’s currency for the
				applicable 18-month period described in subsection (a) or (b), the
				administering authority shall—
							(1)calculate for the
				period of investigation or the period of review, as applicable, the level of
				undervaluation or overvaluation, as the case may be, of the real effective
				exchange rate of the exporting country’s currency in accordance with the
				procedures, methodologies, and standards set forth in subsection (c);
							(2)calculate for the
				period of investigation or the period of review, as applicable, using the
				results from each approach described in subsection (c)(1), the level of
				undervaluation or overvaluation, as the case may be, of the real exchange rate
				between the exporting country and the United States, deriving such level from
				each level of undervaluation or overvaluation, as the case may be, of the real
				effective exchange rate determined under paragraph (1) by allocating
				appreciations or depreciations, as the case may be, in the bilateral real
				exchange rates of the exporting country to its trading partners on the basis of
				the overall current account balances of such trading partners; and
							(3)take the simple
				average of each level of undervaluation or overvaluation, as the case may be,
				calculated under paragraph (2) to measure the level of undervaluation or
				overvaluation, as the case may be, of the bilateral real exchange rate between
				the exporting country and the United States.
							(e)Consideration of
				undervaluation of a currency in countervailing and antidumping duty
				proceedingsIf the administering authority determines under
				subsection (d) that the currency of an exporting country was undervalued in
				relation to the United States dollar during the period of investigation or the
				period of review, as applicable—
							(1)in a countervailing
				duty proceeding, the administering authority shall include in the net
				countervailable subsidy the amount that reflects the level of undervaluation
				determined under subsection (d)(3) in the bilateral real exchange rate between
				the currency of the exporting country and the United States dollar; and
							(2)in an antidumping
				duty proceeding, the administering authority shall adjust the export price and
				constructed export price downward by the amount that reflects the level of
				undervaluation determined under subsection (d)(3) in the bilateral real
				exchange rate between the currency of the exporting country and the United
				States dollar.
							(f)Consideration of
				overvaluation of a currency in antidumping duty proceedingsIf the administering authority determines
				under subsection (d) that the currency of an exporting country was overvalued
				in relation to the United States dollar during the period of investigation or
				the period of review, as applicable, the administering authority shall adjust
				the export price and constructed export price upward by the amount that
				reflects the level of overvaluation determined under subsection (d)(3) in the
				bilateral real exchange rate between the currency of the exporting country and
				the United States dollar.
						(g)Type of
				economyAny determination
				with respect to the currency of an exporting country by the administering
				authority under this section shall be made regardless of whether the exporting
				country has a market economy, a nonmarket economy, or a combination
				thereof.
						(h)DefinitionsIn this section:
							(1)Protracted,
				large-scale intervention in foreign exchange markets
								(A)In
				generalThe term protracted, large-scale intervention in
				foreign exchange markets means involvement in foreign exchange markets
				by the government of an exporting country, either directly or indirectly
				through surrogates, in such a way as to contribute significantly to fundamental
				and actionable misalignment of the currency of the exporting country within the
				meaning of subsection (a) or (b). Such involvement may include one or more of
				the following:
									(i)Governmental
				purchases, sales, or other exchanges of currencies in foreign exchange
				markets.
									(ii)Requirement by
				law or policy of the government of the exporting country that some or all of
				the foreign currency earnings by an exporter or producer in the exporting
				country be converted into the currency of the exporting country.
									(iii)Any other
				practice by the government of the exporting country that has the effect of
				causing fundamental and actionable misalignment of the exchange rate of the
				exporting country’s currency and that involves the direct transfer of funds or
				the potential direct transfer of funds or liabilities.
									(B)Rule of
				constructionFundamental and actionable misalignment of the
				currency of an exporting country within the meaning of subsection (a) or (b)
				shall be attributed to the protracted, large-scale intervention in foreign
				exchange markets by the government of the exporting country unless it is
				determined that such intervention was not a significant cause of the
				fundamental and actionable misalignment.
								(2)Macroeconomic-balance
				approachThe term macroeconomic-balance approach
				means a methodology under which the level of undervaluation or overvaluation of
				the real effective exchange rate of the exporting country’s currency is defined
				as the change in the real effective exchange rate needed to achieve equilibrium
				in the exporting country’s balance of payments.
							(3)Equilibrium-real-exchange-rate
				approachThe term equilibrium-real-exchange-rate
				approach means a methodology under which the level of undervaluation or
				overvaluation of the real effective exchange rate of the exporting country’s
				currency is defined as the difference between the observed real effective
				exchange rate and the real effective exchange rate predicted by an econometric
				model.
							.
			(b)Clerical
			 amendmentThe table of contents of title VII of the Tariff Act of
			 1930 is amended by inserting after the item relating to section 771B the
			 following new item:

						Sec. 771C. Fundamental and actionable
				misalignment of a
				currency.

					.
			4.Clarifications
			 regarding definition of countervailable subsidy
			(a)Financial
			 contributionSection 771(5)(D) of the Tariff Act of 1930 (19
			 U.S.C. 1677(5)(D)) is amended by adding at the end the following new flush
			 sentence:

					A
				fundamentally and actionably undervalued currency (as determined under section
				771C) constitutes a financial contribution under clause
				(i)..
			(b)Benefit
			 conferredSection 771(5)(E) of the Tariff Act of 1930 (19 U.S.C.
			 1677(5)(E)) is amended—
				(1)in clause (iii),
			 by striking and at the end;
				(2)in clause (iv), by
			 striking the period at the end and inserting , and; and
				(3)by inserting after
			 clause (iv) the following new clause:

						(v)in the case of a fundamentally and
				actionably undervalued currency (as determined under section 771C), if the
				exporter or producer receives or is entitled to receive more of the exporting
				country’s currency in exchange for the United States dollars paid for the
				subject merchandise than if the exporting country’s currency were not
				fundamentally and actionably
				undervalued.
						.
				(c)SpecificitySection
			 771(5A)(B) of the Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended by
			 adding at the end the following new sentence: For purposes of this
			 subparagraph, a fundamentally and actionably undervalued currency (as
			 determined under section 771C) constitutes an export subsidy..
			5.Clarifications
			 regarding dumping
			(a)Adjustments for
			 export price and constructed export priceSection 772(c) of the Tariff Act of 1930
			 (19 U.S.C. 1677a(c)) is amended—
				(1)in paragraph
			 (1)—
					(A)in subparagraph
			 (B) by striking and at the end; and
					(B)by adding at the
			 end the following new subparagraph:

							(D)the amount that
				reflects the level of overvaluation in the bilateral real exchange rate between
				the exporting country and the United States (as determined under section 771C),
				and
							;
				and
					(2)in paragraph
			 (2)—
					(A)in subparagraph (A)
			 by striking and at the end;
					(B)in subparagraph
			 (B), by striking the period at the end and inserting , and;
			 and
					(C)by adding at the
			 end the following new subparagraph:

							(C)the amount that
				reflects the level of undervaluation in the bilateral real exchange rate
				between the exporting country and the United States (as determined under
				section
				771C).
							.
					(b)Amendments to
			 definition of nonmarket economy countrySection 771(18)(B) of the
			 Tariff Act of 1930 (19 U.S.C. 1677(18)(B)) is amended—
				(1)in clause (v), by
			 striking and at the end;
				(2)by
			 redesignating clause (vi) as clause (vii); and
				(3)by inserting after
			 clause (v) the following new clause:

						(vi)whether in the
				view of the administering authority the currency of the foreign country is
				fundamentally and actionably undervalued or fundamentally and actionably
				overvalued (as determined under section 771C),
				and
						.
				6.Application to
			 goods from Canada and MexicoPursuant to article 1902 of the North
			 American Free Trade Agreement and section 408 of the North American Free Trade
			 Agreement Implementation Act of 1993 (19 U.S.C. 3438), the amendments made by
			 this Act shall apply with respect to goods from Canada and Mexico.
		7.Effective
			 dateThe amendments made by
			 this Act apply with respect to countervailing and antidumping duty proceedings
			 initiated under title VII of the Tariff Act of 1930 before, on, or after the
			 date of enactment of this Act.


109 HR 3433 IH: Parent-Child Privilege Act of 2005
U.S. House of Representatives
2005-07-26
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I
109th CONGRESS 1st Session
H. R. 3433
IN THE HOUSE OF REPRESENTATIVES

July 26, 2005
Mr. Andrews introduced the following bill; which was referred to the Committee on the Judiciary

A BILL
To amend the Federal Rules of Evidence to establish a parent-child privilege.

1.Short titleThis Act may be cited as the Parent-Child Privilege Act of 2005.
2.Parent-Child Privilege
(a)In generalArticle V of the Federal Rules of Evidence is amended by adding at the end the following:
Rule 502. Parent-Child Privilege
(a)DefinitionsFor purposes of this rule, the following definitions apply:
(1)The term child means the son, daughter, stepchild, or foster child of a parent or the ward of a legal guardian or of any other person who serves as the child’s parent. A person who meets this definition is a child for purposes of this rule, irrespective of whether or not that person has attained the age of majority in the place in which that person resides.
(2)The term confidential communication means a communication between a parent and the parent’s child, made privately or solely in the presence of other members of the child’s family or an attorney, physician, psychologist, psychotherapist, social worker, clergy member, or other third party who has a confidential relationship with the parent or the child, which is not intended for further disclosure except to other members of the child’s family or household or to other persons in furtherance of the purposes of the communication.
(3)The term parent means a birth parent, adoptive parent, stepparent, foster parent, or legal guardian of a child, or any other person that a court has recognized as having acquired the right to act as a parent of that child.
(b)Adverse testimonial privilegeIn any civil or criminal proceeding governed by these rules, and subject to the exceptions set forth in subdivision (d) of this rule—
(1)a parent shall not be compelled to give testimony as a witness adverse to a person who is, at the time of the proceeding, a child of that parent; and
(2)a child shall not be compelled to give testimony as a witness adverse to a person who is, at the time of the proceeding, a parent of that child;unless the parent or child who is the witness voluntarily and knowingly waives the privilege to refrain from giving such adverse testimony.
(c)Confidential communications privilege
(1)In any civil or criminal proceeding governed by these rules, and subject to the exceptions set forth in subdivision (d) of this rule—
(A)a parent shall not be compelled to divulge any confidential communication made between that parent and the child during the course of their parent-child relationship; and
(B)a child shall not be compelled to divulge any confidential communication made between that child and the parent during the course of their parent-child relationship;unless both the child and the parent or parents of the child who are privy to the confidential communication voluntarily and knowingly waive the privilege against the disclosure of the communication in the proceeding.
(2)The privilege set forth in this subdivision applies even if, at the time of the proceeding, the parent or child who made or received the confidential communication is deceased or the parent-child relationship has terminated.
(d)ExceptionsThe privileges set forth in subdivisions (c) and (d) of this rule shall be inapplicable and unenforceable—
(1)in any civil action or proceeding by the child against the parent, or the parent against the child;
(2)in any civil action or proceeding in which the child’s parents are opposing parties;
(3)in any civil action or proceeding contesting the estate of the child or of the child’s parent;
(4)in any action or proceeding in which the custody, dependency, deprivation, abandonment, support or nonsupport, abuse, or neglect of the child, or the termination of parental rights with respect to the child, is at issue;
(5)in any action or proceeding to commit the child or a parent of the child because of alleged mental or physical incapacity;
(6)in any action or proceeding to place the person or the property of the child or of a parent of the child in the custody or control of another because of alleged mental or physical capacity; and
(7)in any criminal or juvenile action or proceeding in which the child or a parent of the child is charged with an offense against the person or the property of the child, a parent of the child or any member of the family or household of the parent or the child.
(e)Appointment of a representative for a child below the age of majorityWhen a child who appears to be the subject of a privilege set forth in subdivision (b) or (c) of this rule is below the age of majority at the time of the proceeding in which the privilege is or could be asserted, the court may appoint a guardian, attorney, or other legal representative to represent the child’s interests with respect to the privilege. If it is in furtherance of the child’s best interests, the child’s representative may waive the privilege under subdivision (b) or consent on behalf of the child to the waiver of the privilege under subdivision (c).
(f)Non-effect of this rule on other evidentiary privilegesThis rule shall not affect the applicability or enforceability of other recognized evidentiary privileges that, pursuant to rule 501, may be applicable and enforceable in any proceeding governed by these rules..
(b)Clerical amendmentThe table of contents for the Federal Rules of Evidence is amended by after the item relating to rule 501 the following new item:

Rule 502. Parent-child privilege.
(c)Effect of amendmentsThe amendments made by this Act shall apply with respect to communications made before, on, or after the date of the enactment of this Act.


116 HR 6473 IH: Patriot Retention Act
U.S. House of Representatives
2020-04-07
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I116th CONGRESS2d SessionH. R. 6473IN THE HOUSE OF REPRESENTATIVESApril 7, 2020Mr. Wenstrup introduced the following bill; which was referred to the Committee on Armed ServicesA BILLTo amend title 10, United States Code, to authorize certain retired members of the Armed Forces to be placed in the Ready Reserve and to receive retired pay and the pay and allowances for duty that member performs.1.Short titleThis Act may be cited as the Patriot Retention Act.2.Authority to place certain retired members of the Armed Forces in the Ready Reserve; pay(a)Placement of certain members in the Ready ReserveSection 10145 of such title is amended by adding at the end the following new subsection:(e)(1)Under such regulations as the Secretary concerned may prescribe, a retired member of a regular component entitled to retired pay may be placed in the Ready Reserve if the Secretary concerned—(A)determines that the retired member has more than 20 years of creditable service in that regular component; and(B)makes a special finding that the member possesses a skill in which the Ready Reserve of the armed force concerned has a critical shortage of personnel.(2)The authority of the Secretary concerned under paragraph (1) may not be delegated—(A)to a civilian officer or employee of the military department concerned below the level of Assistant Secretary; or(B)to a member of the armed forces below the level of the lieutenant general or vice admiral in an armed force with responsibility for military personnel policy in that armed force..(b)Pay for duties performed in the Ready Reserve in addition to retired paySection 12316 of title 10, United States Code, is amended—(1)by adding at the end the following new subsection:(c)A member placed in the Ready Reserve pursuant to section 10145(e) of this title may receive—(1)retired pay; and(2)the pay and allowances authorized by law for duty that member performs.; and(2)in subsection (a), by striking subsection (b) and inserting subsections (b) and (c).


		II
		111th CONGRESS
		1st Session
		S. 2540
		IN THE SENATE OF THE UNITED STATES

			October 30, 2009
			Mr. Burr introduced the
			 following bill; which was read twice and referred to the
			 Committee on
			 Finance

		A BILL
		To extend the temporary suspension of duty on
		  2,7-Naphthalenedisulfonic acid,
		  5-[[4-chloro-6-[(3-sulfophenyl)amino]-1,3,5-triazin-2-yl]amino]-4-hydroxy-3-[[4-[[2-(sulfooxy)ethyl]sulfonyl]phenyl]azo]-,
		  sodium salt.

		1.2,7-Naphthalenedisulfonic
			 acid,
			 5-[[4-chloro-6-[(3-sulfophenyl)amino]-1,3,5-triazin-2-yl]amino]-4-hydroxy-3-[[4-[[2-(sulfooxy)ethyl]sulfonyl]phenyl]azo]-,
			 sodium salt
			(a)In
			 generalHeading 9902.24.99 of the Harmonized Tariff Schedule of
			 the United States (relating to 2,7-Naphthalenedisulfonic acid,
			 5-[[4-chloro-6-[(3-sulfophenyl)amino]-1,3,5-triazin-2-yl]amino]-4-hydroxy-3-[[4-[[2-(sulfooxy)ethyl]sulfonyl]phenyl]azo]-,
			 sodium salt) is amended by striking 12/31/2009 and inserting
			 12/31/2011.
			(b)Effective
			 dateThe amendment made by subsection (a) applies to goods
			 entered, or withdrawn from warehouse for consumption, on or after the 15th day
			 after the date of the enactment of this Act.