[Congressional Record Volume 153, Number 171 (Tuesday, November 6, 2007)]
[House]
[Pages H13206-H13208]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                               H.R. 3355

                        Offered By: Mr. Manzullo

       Amendment No. 1: Page 15, line 2, strike ``and''.
       Page 15, line 5, strike the period and insert ``; and''.
       Page 15, after line 5, insert the following new paragraph:
       (6) the qualified resinsurance program and the State 
     authorizing the program are not delinquent, as determined by 
     the Secretary, with respect to any payment due under any loan 
     previously made under this Act or under any other loan 
     provided by any agency or establishment of the Federal 
     Government to the program or the State for assistance in 
     connection with a natural or other major disaster.

                               H.R. 3355

                         Offered By: Ms. Castor

       Amendment No. 2: Page 21, after line 25, insert the 
     following new subparagraphs:
       (C) limit new development and increases in density, 
     intensity, or range of use allowances in zoning and planning 
     programs in coastal and other areas subject to a higher risk 
     of catastrophic financial loss from natural disasters and 
     catastrophic events, as such areas are determined in 
     accordance with standards established by the Secretary, in 
     consultation with the Administrator of the Federal Emergency 
     Management Agency and other appropriate agency heads;
       (D) limit rebuilding of substantially demolished structures 
     after catastrophic events to current density, intensity, use, 
     and structural limits;
       Page 22, line 1, strike ``(C)'' and insert ``(E)''.
       Page 22, line 5, strike ``(D)'' and insert ``(F)''.
       Page 22, line 12, strike ``(E)'' and insert ``(G)''.

                               H.R. 3355

                 Offered By: Mr. Campbell of California

       Amendment No. 3: Page 2, line 5, before ``Homeowners' '' 
     insert ``Business Owners' and' ''.
       Page 6, line 15, before ``homeowners'' and insert 
     ``business owners and''.
       Page 13, lines 5 and 6, strike ``HOMEOWNERS'''.

       Page 13, line 13, before ``homeowners' '' insert ``property 
     and''.
       Page 18, line 9, strike ``personal real''.
       Page 20, line 25, insert ``property and'' after ``all''.

                               H.R. 3355

                        Offered By: Mr. Matheson

       Amendment No. 4: Page 8, line 24, before the period insert 
     the following: ``, and the first such annual report shall 
     include an assessment of the costs to States and regions 
     associated with catastrophe risk and an analysis of the costs 
     and benefits, for States not participating in the Consortium, 
     of such nonparticipation''.

                               H.R. 3355

                         Offered By: Mr. Shays

       Amendment No. 5:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Commission 
     on Natural Catastrophe Risk Management and Insurance Act of 
     2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Establishment.
Sec. 4. Membership.
Sec. 5. Duties of the Commission.
Sec. 6. Timing.
Sec. 7. Powers of the Commission.
Sec. 8. Commission personnel matters.
Sec. 9. Termination.
Sec. 10. Authorization of appropriations.

     SEC. 2. FINDINGS.

        The Congress finds that--
       (1) catastrophic hazards, including tornadoes, earthquakes, 
     volcanoes, landslides, tsunamis, flooding, and hurricanes, 
     directly affect hundreds of millions of people each year;
       (2) during the 1990s, 2,800 natural disasters killed more 
     than 500,000 people and directly affected 1,300,000,000 
     people worldwide;
       (3) property damage from natural catastrophes has 
     dramatically increased in recent decades, roughly doubling 
     every seven years--a 14-fold increase over the past 40 years;
       (4) risk costs have particularly soared in coastal areas, 
     where hurricane frequency and severity has significantly 
     increased, along with home values and building costs;
       (5) increased risk costs are being reflected in increased 
     catastrophe insurance and reinsurance costs;
       (6) an inefficient legal and regulatory environment in some 
     States has further exacerbated insurance cost increases, 
     including through ineffective price controls, restrictions on 
     capital movement, sub-optimal solvency regulation, and 
     duplicative or unnecessary regulation;
       (7) consumers further suffer from temporary rate and 
     availability volatility after major catastrophes while the 
     marketplace adjusts to the losses;
       (8) government catastrophe mitigation requirements have 
     been sub-optimal, sometimes ineffective, and uncoordinated;
       (9) some State efforts to reduce insurance prices in 
     catastrophe-prone areas have sometimes reduced long-term 
     availability and competitive affordability of coverage, as 
     well as subsidized excessive development in environmentally 
     sensitive areas at the expense of taxpayers;
       (10) several proposals have been introduced in the Congress 
     to address the affordability of natural catastrophe 
     insurance, but there is little consensus on the appropriate 
     role of the Federal Government in facilitating the private 
     insurance marketplace while avoiding cross-subsidies; and
       (11) therefore, an efficient and effective approach to 
     assessing natural catastrophe risk management and insurance 
     is to establish a nonpartisan commission to study the 
     management of natural catastrophe risk, and to require such 
     commission to report to the Congress on its findings before 
     the next hurricane season begins.

     SEC. 3. ESTABLISHMENT.

       There is established a nonpartisan Commission on Natural 
     Catastrophe Risk Management and Insurance (in this Act 
     referred to as the ``Commission'').

     SEC. 4. MEMBERSHIP.

       (a) Appointment.--The Commission shall be composed of 16 
     members, of whom--
       (1) 2 members shall be appointed by the Majority Leader of 
     the Senate;
       (2) 2 members shall be appointed by the Minority Leader of 
     the Senate;
       (3) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (4) 2 members shall be appointed by the Minority Leader of 
     the House of Representatives;
       (5) 2 members shall be appointed by the Chairman of the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (6) 2 members shall be appointed by the Ranking Member of 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (7) 2 members shall be appointed by the Chairman of the 
     Committee on Financial Services of the House of 
     Representatives; and
       (8) 2 members shall be appointed by the Ranking Member of 
     the Committee on Financial Services of the House of 
     Representatives.
       (b) Qualification of Members.--
       (1) In general.--Members of the Commission shall be 
     appointed under subsection (a) from among persons who--
       (A) have expertise in insurance, reinsurance, insurance 
     regulation, policyholder concerns, emergency management, risk 
     management, public finance, financial markets, actuarial 
     analysis, flood mapping and planning, structural engineering, 
     building standards, land use planning, natural catastrophes, 
     meteorology, seismology, environmental issues, or other 
     pertinent qualifications or experience; and
       (B) are not officers or employees of the United States 
     Government or of any State government.
       (2) Diversity.--In making appointments to the Commission--
       (A) every effort shall be made to ensure that the members 
     are representative of a broad cross section of perspectives 
     within the United States; and
       (B) each member of Congress described in subsection (a) 
     shall appoint not more than 1 person from any single primary 
     area of expertise described in paragraph (1)(A) of this 
     subsection.
       (c) Period of Appointment.--
       (1) In general.--Each member of the Commission shall be 
     appointed for the duration of the Commission.
       (2) Vacancies.--A vacancy on the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (d) Quorum.--
       (1) Majority.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number, as determined 
     by the Commission, may hold hearings.
       (2) Approval actions.--All recommendations and reports of 
     the Commission required by this Act shall be approved only by 
     a two-thirds vote of all of the members of the Commission.
       (e) Chairperson.--The Commission shall, by majority vote of 
     all of the members, select 1 member to serve as the 
     Chairperson of the Commission (in this Act referred to as the 
     ``Chairperson'').
       (f) Meetings.--The Commission shall meet at the call of its 
     Chairperson or a majority of the members.

[[Page H13207]]

     SEC. 5. DUTIES OF THE COMMISSION.

        The Commission shall examine and report to the Congress on 
     the natural catastrophe insurance marketplace, including the 
     extent to which insurance costs and availability are affected 
     by the factors described in section 2, which factors the 
     Federal Government can and should address to increase 
     catastrophe insurance availability and competitiveness, and 
     which actions the Federal Government can undertake to achieve 
     this goal without requiring a long-term cross-subsidy from 
     the taxpayers. In developing its report, the Commission shall 
     consider--
       (1) the current condition of, as well as the outlook for, 
     the availability and affordability of insurance and 
     reinsurance for natural catastrophes in all regions of the 
     United States;
       (2) the current ability of States, communities, and 
     individuals to mitigate their natural catastrophe risks, 
     including the affordability and feasibility of such 
     activities;
       (3) the impact of Federal and State laws, regulations, and 
     policies (including rate regulation, market access 
     requirements, reinsurance regulations, accounting and tax 
     policies, State residual markets, and State catastrophe 
     funds) on--
       (A) the affordability and availability of catastrophe 
     insurance;
       (B) the ability of the private insurance market to cover 
     losses inflicted by natural catastrophes;
       (C) the commercial and residential development of high-risk 
     areas; and
       (D) the costs of natural catastrophes to Federal and State 
     taxpayers;
       (4) the benefits and costs of--
       (A) a national, regional, or other pooling mechanism 
     designed to provide adequate insurance coverage and increased 
     underwriting capacity to insurers and reinsurers, including 
     private-public partnerships to increase insurance capacity in 
     constrained markets, including proposed Federal natural 
     catastrophe insurance programs (specifically addressing the 
     costs to taxpayers, tax equity considerations, and the record 
     of other government insurance programs, particularly with 
     regard to charging actuarially sound prices);
       (B) improving Federal and State tax policy to allow 
     insurers or individuals to set aside catastrophe reserves;
       (C) directing existing Federal agencies to begin selling 
     catastrophe insurance to individuals;
       (D) creating a consortium of Federal and State officials to 
     facilitate state catastrophe bonds and reinsurance purchasing 
     as well as providing temporary Federal disaster loans to the 
     States for insurance purposes;
       (E) expanding the Liability Risk Retention Act of 1986 to 
     allow businesses to pool together to buy insurance and set up 
     their own insurance funds;
       (F) providing temporary Federal assistance to low-income 
     individual homeowners whose catastrophe insurance rates have 
     increased beyond a certain level after a major disaster, with 
     the possibility that the assistance would be repaid upon sale 
     of the underlying home;
       (G) providing for limited Federal development and oversight 
     of the sale of catastrophe insurance in high-risk areas 
     during periods of relative unavailability; and
       (H) facilitating further growth of the catastrophe bond 
     marketplace and other competitive alternatives to the 
     traditional insurance and reinsurance marketplace;
       (5) the present and long-term financial condition of State 
     residual markets and catastrophe funds in high-risk regions, 
     including the likelihood of insolvency following a natural 
     catastrophe, the concentration of risks within such funds, 
     the reliance on post-event assessments and State funding, the 
     adequacy of rates, and the degree to which such entities have 
     been actuarially solvent in comparison to comparably sized 
     private insurers;
       (6) the need for strengthened land use regulations and 
     building codes in States at high risk for natural 
     catastrophes, and methods to strengthen the risk assessment 
     and enforcement of structural mitigation and vulnerability 
     reduction measures, such as zoning and building code 
     compliance;
       (7) the ability of the private insurance market in the 
     United States--
       (A) to cover insured losses caused by natural catastrophes, 
     including an estimate of the maximum amount of insured losses 
     that could be sustained during a single year and the 
     probability of natural catastrophes occurring in a single 
     year that would inflict more insured losses than the United 
     States insurance and reinsurance markets could sustain; and
       (B) to recover after covering substantial insured losses 
     caused by natural catastrophes;
       (8) the impact that demographic trends could have on the 
     amount of insured losses inflicted by future natural 
     catastrophes;
       (9) the appropriate role, if any, for the Federal 
     Government in stabilizing the property and casualty insurance 
     and reinsurance markets; and
       (10) the role of the Federal, State, and local governments 
     in providing incentives for feasible risk mitigation efforts.

     SEC. 6. TIMING.

       Before the beginning of the 2008 hurricane season, which 
     for purposes of this section shall be considered to be June 
     1, 2008, the Commission shall submit to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a final report containing--
       (1) a detailed statement of the findings and assessments 
     conducted by the Commission pursuant to section 5; and
       (2) specific and detailed recommendations for legislative, 
     regulatory, administrative, or other actions at the Federal, 
     State, or local levels that the Commission considers 
     appropriate, in accordance with the requirements of section 
     5.

     SEC. 7. POWERS OF THE COMMISSION.

       (a) Meetings; Hearings.--The Commission may hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the Commission 
     considers necessary to carry out the purposes of this Act. 
     Members may attend meetings of the Commission and vote in 
     person, via telephone conference, or via video conference.
       (b) Authority of Members or Agents of the Commission.--Any 
     member or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take by this Act.
       (c) Obtaining Official Data.--
       (1) Authority.--Notwithstanding any provision of section 
     552a of title 5, United States Code, the Commission may 
     secure directly from any department or agency of the United 
     States any information necessary to enable the Commission to 
     carry out this Act.
       (2) Procedure.--Upon request of the Chairperson, the head 
     of such department or agency shall furnish to the Commission 
     the information requested.
       (d) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (e) Administrative Support Services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission, on a reimbursable basis, any 
     administrative support services necessary for the Commission 
     to carry out its responsibilities under this Act.
       (f) Acceptance of Gifts.--The Commission may accept, hold, 
     administer, and utilize gifts, donations, and bequests of 
     property, both real and personal, for the purposes of aiding 
     or facilitating the work of the Commission. The Commission 
     shall issue internal guidelines governing the receipt of 
     donations of services or property.
       (g) Volunteer Services.--Notwithstanding the provisions of 
     section 1342 of title 31, United States Code, the Commission 
     may accept and utilize the services of volunteers serving 
     without compensation. The Commission may reimburse such 
     volunteers for local travel and office supplies, and for 
     other travel expenses, including per diem in lieu of 
     subsistence, as authorized by section 5703 of title 5, United 
     States Code.
       (h) Federal Property and Administrative Services Act of 
     1949.--Subject to the Federal Property and Administrative 
     Services Act of 1949, the Commission may enter into contracts 
     with Federal and State agencies, private firms, institutions, 
     and individuals for the conduct of activities necessary to 
     the discharge of its duties and responsibilities.
       (i) Limitation on Contracts.--A contract or other legal 
     agreement entered into by the Commission may not extend 
     beyond the date of the termination of the Commission.

     SEC. 8. COMMISSION PERSONNEL MATTERS.

       (a) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (b) Subcommittees.--The Commission may establish 
     subcommittees and appoint members of the Commission to such 
     subcommittees as the Commission considers appropriate.
       (c) Staff.--Subject to such policies as the Commission may 
     prescribe, the Chairperson may appoint and fix the pay of 
     such additional personnel as the Chairperson considers 
     appropriate to carry out the duties of the Commission. The 
     Commission shall confirm the appointment of the executive 
     director by majority vote of all of the members of the 
     Commission.
       (d) Applicability of Certain Civil Service Laws.--Staff of 
     the Commission may be--
       (1) appointed without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service; and
       (2) paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that an 
     individual so appointed may not receive pay in excess of the 
     annual rate of basic pay prescribed for GS-15 of the General 
     Schedule under section 5332 of that title.
       (e) Experts and Consultants.--In carrying out its 
     objectives, the Commission may procure temporary and 
     intermittent services of consultants and experts under 
     section 3109(b) of title 5, United States Code, at rates for 
     individuals which do not exceed the daily equivalent of the 
     annual rate of basic pay prescribed for GS-15 of the General 
     Schedule under section 5332 of that title.
       (f) Detail of Government Employees.--Upon request of the 
     Chairperson, any Federal Government employee may be detailed 
     to the Commission to assist in carrying out the duties of the 
     Commission--

[[Page H13208]]

       (1) on a reimbursable basis; and
       (2) such detail shall be without interruption or loss of 
     civil service status or privilege.

     SEC. 9. TERMINATION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits its report under section 6.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission, 
     such sums as may be necessary to carry out this Act, to 
     remain available until expended.

                               H.R. 3355

                         Offered By: Mr. Roskam

       Amendment No. 6: Page 21, strike lines 21 through 25.
       Page 22, line 1, strike ``(C)'' and insert ``(B)''.
       Page 22, line 5, strike ``(D)'' and insert ``(C)''.
       Page 22, line 12, strike ``(E)'' and insert ``(D)''.
       Page 22, line 17, strike ``and''.
       Page 22, after line 17, insert the following new paragraph:
       (7) develops, maintains, and enforces best practices in 
     building codes that the Secretary deems adequate to address 
     the natural disaster exposures of the State, taking into 
     consideration the geography, catastrophe risk, and building 
     patterns in the State; and
       Page 22, line 18, strike ``(7)'' and insert ``(8)''.

                               H.R. 3355

                    Offered By: Mr. Price of Georgia

       Amendment No. 7: Page 24, line 7, strike ``section 301'' 
     and insert ``section 301 and has been certified by the 
     Secretary of the Treasury that it does not significantly 
     reduce or displace private sector competition''.

                               H.R. 3355

                    Offered By: Mr. Price of Georgia

       Amendment No. 8: Page 18, after line 14, insert the 
     following new subsection:

       (g) Limiting Federal Loans to Only Catastrophic Events.--
     Notwithstanding subsections (d) and (e), the Secretary shall 
     not make any subsidized loans under this section unless it 
     determines that a natural disaster, or series of natural 
     disasters, has occurred causing homeowners insurance losses 
     that either--
       (1) exceed the capacity of the insurance industry for that 
     region; or
       (2) exceed the amount equal to such losses projected to 
     incur from a natural disaster event or events having losses 
     of a magnitude such that the event or events occur once every 
     100 years in the United States for homeowners insurance with 
     respect to the covered peril.

                               H.R. 3355

                    Offered By: Mr. Price of Georgia

       Amendment No. 9: Page 24, after line 14, insert the 
     following new section:

     SEC. 303. REQUIREMENT OF OFFSETS.

       (a) In General.--No amounts made available by this Act, 
     authorization of appropriations made by this Act, or any 
     other provision of this Act that results in costs to the 
     Federal Government shall be effective except to the extent 
     that this Act provides for offsetting decreases in spending 
     of the Federal Government, such that the net effect of this 
     Act does not either increase the Federal deficit or reduce 
     the Federal surplus.
       (b) Definitions.--In this subsection, the terms ``deficit'' 
     and ``surplus'' have the meanings given such terms in the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 621 et seq.).
       Page 24, line 15, strike ``SEC. 303.'' and insert ``SEC. 
     304.''

                               H.R. 3355

                         Offered By: Mr. Roskam

       Amendment No. 10: Page 17, line 2, strike ``and'' and 
     insert a comma.
       Page 17, line 8, before the period insert the following: 
     ``, and that the qualified reinsurance program has retained 
     sufficient losses in excess of the amount of losses that 
     would result from a single event of a catastrophic peril 
     covered by the program of such magnitude that it has a one 
     percent chance of being equaled or exceeded in any year, as 
     determined by the Secretary''.

                               H.R. 3355

                         Offered By: Mr. Putnam

       Amendment No. 11: Page 20, line 12, after the period insert 
     the following: ``No Federal funds of any kind or from any 
     source (including any disaster or other financial assistance, 
     loan proceeds, and any other assistance or subsidy) may be 
     used to repay any loan made under this title.''

                               H.R. 3355

              Offered By: Ms. Ginny Brown-Waite of Florida

       Amendment No. 12: Page 22, line 11, strike ``and''.
       Page 22, after line 17 insert the following new 
     subparagraph:
       (F) prohibit price gouging in any disaster area located 
     within the State; and
       Page 24, after line 3 insert the following new paragraph:
       (3) Price gouging.--The term ``price gouging'' means the 
     providing of any consumer good or service by a supplier 
     related to repair or restoration of property damaged from a 
     catastrophe for a price that the supplier knows or has reason 
     to know is greater, by at least the percentage set forth in a 
     State law or regulation prohibiting such act (not 
     withstanding any real cost increase due to any attendant 
     business risk and other reasonable expenses that result from 
     the major catastrophe involved), than the price charged by 
     the supplier for such consumer good or service immediately 
     before the disaster.
       Page 24, line 4, redesignate paragraph (3) as paragraph 
     (4).
       Page 24, line 8, redesignate paragraph (4) as paragraph 
     (5).
       Page 24, line 10, redesignate paragraph (5) as paragraph 
     (6).

                               H.R. 3355

                         Offered By: Mr. Roskam

       Amendment No. 13: Page 17, line 2, strike ``and'' and 
     insert a comma.
       Page 17, line 8, before the period insert the following: 
     ``, and that the qualified reinsurance program has retained 
     losses in excess of the amount of losses that would result 
     from a single event of a catastrophic peril covered by the 
     program of such magnitude that it has a one percent chance of 
     being equaled or exceeded in any year, as determined by the 
     Secretary''.