The new Congress, which convened last Tuesday, took its first step toward the reauthorization of TRIA today when the House passed legislation to extend TRIA by a vote of 416-5, with one lawmaker voting present. H. R. 26, introduced by Representative Randy Neugebauer, is the same bill that was passed by the House last month; however, that bill died in the Senate and the TRIA program expired December 31. The new legislation extends TRIA through 2020 and raises the threshold from $100 million to $200 million in aggregate losses before federal government assistance is triggered. Additionally, the legislation adjusts the insurance companies’ co-payments to 20 percent from the previous 15 percent. The measure also creates an association that would license insurance agents to operate outside their home states under the National Association of Registered Agents and Brokers and includes an exemption for non-financial companies from being required to post collateral on derivatives trades under the Dodd-Frank Act.
The bill now heads to the Senate. Senate leadership hopes to hold a vote on the House-passed measure quickly, possibly in the next few days. If passed, it will become effective upon signature of the President and will likely be made retroactive to January 1, 2015.