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# Legislative Bulletin....................................................February 15, 2006

**Contents:**

> **H.Con.Res. 300 ---** Paying tribute to Shirley Horn in recognition
> of her many achievements and contributions to the world of jazz and
> American culture
>
> **S. 2275** --- National Flood Insurance Program Enhanced Borrowing
> Authority Act
>
> **S.Con.Res. 79** --- A concurrent resolution expressing the sense of
> Congress that no United States
>
> assistance should be provided directly to the Palestinian Authority if
> any representative political party
>
> holding a majority of parliamentary seats within the Palestinian
> Authority maintains a position calling
>
> for the destruction of Israel

**H.Con.Res. 300 --- Paying tribute to Shirley Horn in recognition of
her many achievements and contributions to the world of jazz and
American culture ---**

***as introduced* (*Conyers, D-MI*)**

**[Order of Business]{.underline}**: The resolution is scheduled to be
considered on Wednesday, February 15, 2006, under a motion to suspend
the rules and pass the resolution.

**[Summary]{.underline}**: H.Con.Res. 300 resolves that Congress:

-   "notes with deep sorrow the death of Shirley Horn and extends
    heartfelt sympathy to her husband and family; and

-   "recognizes Shirley Horn's many achievements and contributions to
    the world of jazz and American culture and notes the loss to
    American culture with her passing."

**[Additional Information]{.underline}:** According to the resolution,
in 1934, Shirley Horn was born in Washington, D.C., and began playing
her grandmother's piano at age four. By the age of 12, Horn was studying
composition and piano at Howard University, and by 18, she was invited
to attend Juilliard School in New York City. As a jazz musician, Horn
performed with other music icons such as Miles Davis and Quincy Jones.
In 1991, Horn was awarded a Grammy for best jazz vocal performance, and
in 1996, was admitted to the Lionel Hampton Jazz Hall of Fame. Finally,
in 2005, Horn was given the Nation's highest jazz honor when she was
named the 2005 NEA Jazz Master. According to the resolution, "Shirley
Horn's voice and piano had a profound effect on her listeners around the
world." Shirley Horn died on Thursday, October 20, 2005, at a nursing
home outside of Washington, D.C.

**[Committee Action]{.underline}**: On November 16, 2005, the bill was
introduced and referred to the House Committee on Education and the
Workforce, which took no official action.

**[Cost to Taxpayers]{.underline}**: The resolution authorizes no
expenditure.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: No.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: No.

**[RSC Staff Contact]{.underline}**: Joelle Cannon;
<joelle.cannon@mail.house.gov>, (202) 226-9717

> **S. 2275**---**National Flood Insurance Program Enhanced Borrowing
> Authority Act (Shelby, R-AL)**

**[Order of Business:]{.underline}** The bill is expected to be
considered as amended on Wednesday, February 15^th^, under a motion to
suspend the rules and pass the bill.

NOTE: Under the House Republican Conference Rules, no bill that
authorizes more than a 10% increase in authorizations,
appropriations**,** or direct spending in any given year, may be
considered on the suspension calendar. This rule may be waived by a vote
of the elected leadership. As of press time, it was unclear whether this
legislation that increases FEMA's borrowing authority by 11.9% and is
scored by CBO as direct spending, received a waiver from the elected
leadership.

**[Summary]{.underline}**: S. 2275 increases by \$2.2 billion (from
\$18.5 billion to \$20.7 billion), the amount the Federal Emergency
Management Agency (FEMA) may borrow from the U.S. Treasury to carry out
the National Flood Insurance Program (NFIP). This funding is designated
as emergency. The bill contains no other reforms to NFIP.

**[Additional Background]{.underline}**: Under current law, FEMA offers
flood insurance through the NFIP to reduce flood losses. If premiums and
interest income are insufficient to pay claims, FEMA can borrow from the
U.S. Treasury up to a level set in statute. This loan must then be
repaid with interest. Until recently, FEMA could borrow up to \$1.5
billion. However, this past fall, Congress increased that borrowing
authority by \$17 billion to its current level of \$18.5 billion.

[]{.mark}

As a result of losses resulting from Hurricanes Katrina and Rita, there
is projected to be over \$22 billion in total NFIP claims that FEMA is
legally obligated to pay over the next few months. Accordingly, the
limit on FEMA's borrowing authority needs to be increased again (the
current limit expires this week). Upon enactment of this bill, FEMA is
expected to be able to pay NFIP claims through the end of April, at
which point another increase will be required. **Note**: As passed by
the Senate, S. 2275 would have allowed FEMA to pay NFIP claims through
July (\$2.7 billion increase), while H.R. 4320, the version reported by
the Financial Services Committee, would extend such borrowing authority
through August (\$3.5 billion increase).

[]{.mark}

According to FEMA, the total level of claims from Hurricanes Katrina and
Rita have far surpassed the total claims paid over the entire history of
the program. From the program's inception in 1968 to 2004, the total
cost of NFIP claims was \$15 billion---meaning that at \$20.7 billion,
Gulf Coast claims are nearly 150% more than total claims over the entire
36-year history of the program. Given this historical context, CBO
recently testified that "*it is highly unlikely that the program will be
able to repay the amount of borrowing authority out of its income from
premium and fees*."

[]{.mark}

Some conservatives may be concerned that as a result of these sizable
claims, the increases in FEMA's borrowing authority (1) may be forgiven
in the future and the funds never repaid and (2) are not being coupled
with other needed reforms to lower the long-term cost of the NFIP. For
instance, Reps. Mike Pence and Jeb Hensarling sent a letter to House
Leadership outlining such concerns and noting that "any long-term
extension must include comprehensive structural reforms" to NFIP.
**INSERT LINK**

Even putting its credit line to the Treasury aside, NFIP is not current
self-supporting. 24% of all NFIP policies are federally subsidized,
costing taxpayers roughly \$1.3 billion annually, with premiums covering
only 40% of the actuarial risk. For the most part, this subsidy applies
to "pre-FIRM" properties, existing before 1975. In addition, NFIP
continues to subsidize property that has experienced repetitive losses
over the years only to have homes rebuilt on the same property. For more
information on the NFIP and opportunities for reform, please visit the
Senate Banking Committee's website:
<http://banking.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=188>

[]{.mark}

**[Committee Action]{.underline}**: On February 10, 2006, S. 2275 passed
the Senate by unanimous consent. It has not been considered by the House
Financial Committee. However, the Committee reported its own version
(H.R. 4320) on February 1^st^ that included a larger increase in FEMA's
borrowing authority.

**[Cost to Taxpayer:]{.underline}** According to CBO, S. 2275 as amended
would increase direct spending by \$2.2 billion over ten years. Although
FEMA is required to repay this funding over time, CBO does not
anticipate this occurring.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: No.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-]{.underline}**

**[Sector Mandates]{.underline}?**: No.

**[Constitutional Authority:]{.underline}** A committee report citing
constitutional authority is unavailable.

S.Con.Res. 79---A concurrent resolution expressing the sense of Congress
that no United States assistance should be provided directly to the
Palestinian Authority if any representative political party holding a
majority of parliamentary seats within the Palestinian Authority
maintains a position calling for the destruction of Israel---*as
received from the Senate* (Senator Thune, R-SD)

**[Order of Business]{.underline}**: The resolution, which the Senate
passed by unanimous consent on February 1, 2006, is scheduled to be
considered on the House floor on Wednesday, February 15^th^, under a
motion to suspend the rules and pass the bill.

**[Summary]{.underline}**: The one-sentence resolution expresses a sense
of Congress that "no United States assistance should be provided
directly to the Palestinian Authority if any representative political
party holding a majority of parliamentary seats within the Palestinian
Authority maintains a position calling for the destruction of Israel."
**[NOTE]{.underline}**: the resolution makes no mention of
**[indirect]{.underline}** U.S. funding to the Palestinian Authority.

**[Additional Background]{.underline}**: On January 26, 2006, the
radical Islamic and terrorist organization Hamas won a significant
majority in the new Palestinian parliament, soundly defeating Yasser
Arafat's governing Fatah party. Hamas won 76 of the 132 parliamentary
seats (Fatah won 43), giving Hamas the right to form the next cabinet
under the Palestinian Authority's president, Mahmoud Abbas, the leader
of Fatah.

Hamas, which emerged in 1987 during the first Palestinian uprising as an
offshoot of Egypt's Muslim Brotherhood, favors the creation of a
Palestinian state on land that now includes Israel. Hamas openly opposes
a two-state solution and continues, even after the elections, to call
for the destruction of Israel. Since the elections, Hamas leaders have
reiterated that they have no plans to pursue peace talks with Israel or
to disarm Hamas' violent activities.

To see a sampling of murders for which Hamas has proudly claimed
responsibility over the last six years, click here and do a search for
"Hamas":

[http://www.mfa.gov.il/mfa/terrorism-%20obstacle%20to%20peace/palestinian%20terror%20since%202000/Victims%20of%20Palestinian%20Violence%20and%20Terrorism%20sinc](http://www.mfa.gov.il/mfa/terrorism- obstacle to peace/palestinian terror since 2000/Victims of Palestinian Violence and Terrorism sinc)

Secretary of State Condoleezza Rice said that "the Hamas victory does
not change the U.S. view that Hamas is a terrorist organization....Hamas
cannot have one foot in the terrorist camp and the other in politics."

*(Source:
<http://usinfo.state.gov/dhr/Archive/2006/Jan/30-192207.html>)*

**[Committee Action]{.underline}**: On February 7, 2006, the
Senate-passed version of S.Con.Res. 79 was referred to the House
International Relations Committee, which took no public action on it.

**[Administration Position]{.underline}**: This resolution was
reportedly written by the State Department.

**[Cost to Taxpayers]{.underline}**: The resolution itself is
non-binding and thus would save no taxpayer dollars.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: No.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: No.

**[RSC Staff Contact]{.underline}**: Paul S. Teller,
<paul.teller@mail.house.gov>, (202) 226-9718

**\###**