The House of Representatives passed a six-year reauthorization of the Terrorism Risk Insurance Act on Wednesday in a 416-5 vote.
The bill would extend the termination date of the terrorism insurance program established under the original 2002 law.
The bill would also require the president to appoint at least one member of the Federal Reserve Board with "demonstrated primary experience working in or supervising community banks having less than $10 billion in total assets.''
The Republican-led House passed the same bill in the last session of Congress but the legislation did not make it out of the Democratic-led Senate.
Despite requests from credit union trade associations, the bill does not contain parity language for credit unions.
"This reform bill doubles the taxpayer protection trigger, decreases federal share of losses, and encourages greater private sector participation in the terrorism risk insurance market. With the inclusion of NARAB, local insurance agents and brokers in Abilene, Texas and across America may also be licensed on a multi-state basis all while retaining essential state regulatory authority," Rep. Randy Neugebauer (R-Texas), the sponsor of the bill, said.
"Finally, the legislation provides relief for our farmers, ranchers, and small business owners who have been the target of some of Dodd-Frank's most inefficient and ineffective rulemaking," he added.
On Tuesday, President Barack Obama announced his intent to nominate former community banker Allan Landon to the Fed's Board of Governors. Landon was CEO of the Bank of Hawaii.
However, The Bank of Hawaii had $14.5 billion in assets as of the third quarter, which would not meet the requirements of the language in the TRIA reauthorization bill passed by the House.
"ICBA is pleased that the president has announced his intent to nominate someone with community banking experience and supports Allan Landon for a seat on the Federal Reserve Board. Landon's experience as the CEO of a community bank and his broader sector experience will bring a much-needed community bank perspective to the board's deliberations," Camden R. Fine, president/CEO of the ICBA, said.
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