II 

113TH CONGRESS 

1ST SESSION S. 1461 

To establish a National Catastrophe Risks Consortium and a National 

Homeowners’ Insurance Stabilization Program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2013 

Mr. NELSON introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To establish a National Catastrophe Risks Consortium and 

a National Homeowners’ Insurance Stabilization Program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Homeowners’ Defense Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Qualified reinsurance programs. 

Sec. 4. Definitions. 

Sec. 5. Regulations. 


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TITLE I—NATIONAL CATASTROPHE RISK CONSORTIUM 

Sec. 101. Establishment; status; principal office; membership. 

Sec. 102. Functions. 

Sec. 103. Powers. 

Sec. 104. Nonprofit entity; conflicts of interest; audits. 

Sec. 105. Management. 

Sec. 106. Staff; experts and consultants. 

Sec. 107. Federal liability. 

Sec. 108. Authorization of appropriations. 

TITLE II—NATIONAL HOMEOWNERS’ INSURANCE STABILIZATION 

PROGRAM 

Sec. 201. Establishment. 

Sec. 202. Liquidity loans and catastrophic loans for State and regional reinsurance programs. 

Sec. 203. Reports and audits. 

Sec. 204. Funding. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—The Congress finds that— 

3 (1) the United States has a history of cata4 strophic natural disasters, including hurricanes, tor5 nadoes, flood, fire, earthquakes, and volcanic erup6 tions; 

7 (2) although catastrophic natural disasters 

8 occur infrequently, they will continue to occur and 

9 are predictable; 

10 (3) such disasters generate large economic 

11 losses and a major component of those losses comes 

12 from damage and destruction to homes; 

13 (4) for the majority of Americans, their invest14 ment in their home represents their single biggest 

15 asset and the protection of that investment is para16 mount to economic and social stability; 


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1 (5) historically, when a natural disaster eclipses 

2 the ability of the private industry and a State to 

3 manage the loss, the Federal Government has 

4 stepped in to provide the funding and services need5 ed for recovery; 

6 (6) the cost of such Federal ‘‘bail-outs’’ are 

7 borne by all taxpayers equally, as there is no provi8 sion to repay the money and resources provided, 

9 which thereby unfairly burdens citizens who live in 

10 lower risk communities; 

11 (7) as the risk of catastrophic losses grows, so 

12 do the risks that any premiums collected by private 

13 insurers for extending coverage will be insufficient to 

14 cover future catastrophes (known as timing risk), 

15 and private insurers, in an effort to protect their 

16 shareholders and policyholders (in the case of mutu17 ally owned companies), have thus significantly raised 

18 premiums and curtailed insurance coverage in States 

19 exposed to major catastrophes; 

20 (8) such effects on the insurance industry have 

21 been harmful to economic activity in States exposed 

22 to major catastrophes and have placed significant 

23 burdens on existing residents of such States; 

24 (9) Hurricanes Katrina, Rita, and Wilma 

25 struck the United States in 2005, causing over 


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1 $200,000,000,000 in total economic losses, and in2 sured losses to homeowners in excess of 

3 $50,000,000,000; 

4 (10) since 2004, the Congress has appropriated 

5 more than $58,000,000,000 in disaster relief to the 

6 States affected by natural catastrophes; 

7 (11) the Federal Government has provided and 

8 will continue to provide resources to pay for losses 

9 from future catastrophes; 

10 (12) when Federal assistance is provided to the 

11 States, accountability for Federal funds disbursed is 

12 paramount; 

13 (13) the Government Accountability Office or 

14 other appropriate agencies must have the means in 

15 place to confirm that Federal funds for catastrophe 

16 relief have reached the appropriate victims and have 

17 contributed to the recovery effort as efficiently as 

18 possible so that taxpayer funds are not wasted and 

19 citizens are enabled to rebuild and resume produc20 tive activities as quickly as possible; 

21 (14) States that are recipients of Federal funds 

22 must be responsible to account for and provide an 

23 efficient means for distribution of funds to home24 owners to enable the rapid rebuilding of local econo25 mies after a catastrophic event without unduly burVerDate Mar 15 2010 01:18 Aug 09, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1461.IS S1461

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1 dening taxpayers who live in areas seldom affected 

2 by natural disasters; 

3 (15) State insurance and reinsurance programs 

4 can provide a mechanism for States to exercise that 

5 responsibility if they appropriately underwrite and 

6 price risk, and if they pay claims quickly and within 

7 established contractual terms; and 

8 (16) State insurers and reinsurers, if appro9 priately backstopped themselves, can absorb cata10 strophic risk borne by private insurers without bear11 ing timing risk, and thus enable all insurers (wheth12 er State-operated or privately owned) to underwrite 

13 and price insurance without timing risk and in such 

14 a way to encourage property owners to pay for the 

15 appropriate insurance to protect themselves and to 

16 take steps to mitigate against the risks of disaster 

17 by locally appropriate methods. 

18 (b) PURPOSES.—The purposes of this Act are to es19 tablish a program to provide a Federal backstop for State20 sponsored insurance programs to help homeowners pre21 pare for and recover from the damages caused by natural 

22 catastrophes, to encourage mitigation and prevention for 

23 such catastrophes, to promote the use of private market 

24 capital as a means to insure against such catastrophes, 


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1 to expedite the payment of claims and better assist in the 

2 financial recovery from such catastrophes. 

3 SEC. 3. QUALIFIED REINSURANCE PROGRAMS. 

4 (a) IN GENERAL.—For purposes of this Act only, a 

5 program shall be considered to be a qualified reinsurance 

6 program if the program— 

7 (1) is authorized by State law for the purposes 

8 described in this section; 

9 (2) is an entity in which the authorizing State 

10 maintains a material, financial interest; 

11 (3) provides reinsurance or retrocessional cov12 erage to underlying primary insurers or reinsurers 

13 for losses arising from all personal residential lines 

14 of insurance, as defined in the Uniform Property & 

15 Casualty Product Coding Matrix published and 

16 maintained by the National Association of Insurance 

17 Commissioners; 

18 (4) has a governing body, a majority of whose 

19 members are public officials; 

20 (5) provides reinsurance or retrocessional cov21 erage to underlying primary insurers or reinsurers 

22 for losses in excess of such amount that the Sec23 retary has determined represents a catastrophic 

24 event in that particular State; 


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1 (6) is authorized by a State that has in effect 

2 such laws, regulations, or other requirements, as the 

3 Secretary shall by regulation provide, that— 

4 (A) ensure, to the extent that reinsurance 

5 coverage made available under the qualified re6 insurance program results in any cost savings 

7 in providing insurance coverage for risks in 

8 such State, such cost savings are reflected in 

9 premium rates charged to consumers for such 

10 coverage; 

11 (B) require that any new construction, 

12 substantial rehabilitation, and renovation in13 sured or reinsured by the program complies 

14 with applicable State or local government build15 ing, fire, and safety codes; 

16 (C) require State authorized insurance en17 tities within that State to establish an insur18 ance rate structure that takes into account 

19 measures to mitigate insurance losses; 

20 (D) require State authorized insurance and 

21 reinsurance entities within that State to estab22 lish rates at a level that annually produces ex23 pected premiums that shall be sufficient to pay 

24 the expected annualized cost of all claims, loss 


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1 adjustment expenses, and all administrative 

2 costs of reinsurance coverage offered; and 

3 (E) encourage State authorized insurance 

4 and reinsurance entities within that State to es5 tablish rates that do not involve cross-subsidiza6 tion between any separate property and cas7 ualty lines covered under the State authorized 

8 insurance or reinsurance entity; and 

9 (7) complies with such additional organiza10 tional, underwriting, and financial requirements as 

11 the Secretary shall, by regulation, provide to carry 

12 out the purposes of this Act. 

13 (b) TRANSITIONAL MECHANISMS.—For the 5-year 

14 period beginning on the date of enactment of this Act, in 

15 the case of a State that does not have a qualified reinsur16 ance program for the State, a State residual insurance 

17 market entity for such State shall be considered to be a 

18 qualified reinsurance program, but only if such State re19 sidual insurance market entity was in existence before 

20 such date of enactment. 

21 (c) PRECERTIFICATION.—The Secretary shall estab22 lish procedures and standards for State and regional rein23 surance programs and the State residual insurance market 

24 entities described in subsection (b) to apply to the SecVerDate Mar 15 2010 01:18 Aug 09, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1461.IS S1461

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1 retary at any time for certification (and recertification) 

2 as qualified reinsurance programs. 

3 (d) REINSURANCE TO COVER EXPOSURE.—This sec4 tion may not be construed to limit or prevent any insurer 

5 from obtaining reinsurance coverage for insured losses re6 tained by insurers pursuant to this section, nor shall the 

7 obtaining of such coverage affect the calculation of the 

8 amount of any loan under this Act. 

9 SEC. 4. DEFINITIONS. 

10 For purposes of this Act, the following definitions 

11 shall apply: 

12 (1) CEILING COVERAGE LEVEL.—The term 

13 ‘‘ceiling coverage level’’ means, with respect to a 

14 qualified reinsurance program, the maximum liabil15 ity, under law, that could be incurred at any time 

16 by the qualified reinsurance program. 

17 (2) COMMISSION.—The term ‘‘Commission’’ 

18 means the National Commission on Natural Catas19 trophe Preparation and Protection established under 

20 title II. 

21 (3) CONSORTIUM.—The term ‘‘Consortium’’ 

22 means the National Catastrophic Risk Consortium 

23 established under title I. 


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1 (4) INSURED LOSS.—The term ‘‘insured loss’’ 

2 means any loss insured by a qualified reinsurance 

3 program. 

4 (5) QUALIFIED REINSURANCE PROGRAM.—The 

5 term ‘‘qualified reinsurance program’’ means a State 

6 or regional program that meets the requirements of 

7 section 3. 

8 (6) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of the Treasury. 

10 (7) STATE.—The term ‘‘State’’ includes the 

11 several States, the District of Columbia, the Com12 monwealth of Puerto Rico, Guam, the Common13 wealth of the Northern Mariana Islands, the United 

14 States Virgin Islands, and American Samoa. 

15 SEC. 5. REGULATIONS. 

16 The Secretary shall issue such regulations as may be 

17 necessary to carry out this Act. 

18 TITLE I—NATIONAL CATAS19 TROPHE RISK CONSORTIUM 

20 SEC. 101. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE; 

21 MEMBERSHIP. 

22 (a) ESTABLISHMENT.—There is established an entity 

23 to be known as the ‘‘National Catastrophe Risk Consor24 tium’’. 


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1 (b) STATUS.—The Consortium is not a department, 

2 agency, or instrumentality of the United States Govern3 ment. 

4 (c) PRINCIPAL OFFICE.—The principal office and 

5 place of business of the Consortium shall be such location 

6 within the United States determined by the Board of Di7 rectors to be the most advantageous for carrying out the 

8 purpose and functions of the Consortium. 

9 (d) MEMBERSHIP.—Any State that has established a 

10 reinsurance fund or has authorized the operation of a 

11 State residual insurance market entity shall be eligible to 

12 participate in the Consortium. 

13 SEC. 102. FUNCTIONS. 

14 The Consortium shall— 

15 (1) work with all States, particularly those par16 ticipating in the Consortium, to gather and maintain 

17 an inventory of catastrophe risk obligations held by 

18 State reinsurance funds and State residual insur19 ance market entities; 

20 (2) at the discretion of the affected members 

21 and on a conduit basis, issue securities and other fi22 nancial instruments linked to the catastrophe risks 

23 insured or reinsured through members of the Con24 sortium in the capital markets; 


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1 (3) coordinate reinsurance contracts between 

2 participating, qualified reinsurance funds and pri3 vate parties; 

4 (4) act as a centralized repository of State risk 

5 information that can be accessed by private-market 

6 participants seeking to participate in the trans7 actions described in paragraphs (2) and (3) of this 

8 section; 

9 (5) use a catastrophe risk database to perform 

10 research and analysis that encourages standardiza11 tion of the risk-linked securities market; 

12 (6) perform any other functions, other than as13 suming risk or incurring debt, that are deemed nec14 essary to aid in the transfer of catastrophe risk from 

15 participating States to private parties; and 

16 (7) submit annual reports to Congress describ17 ing the activities of the Consortium for the pre18 ceding year. 

19 SEC. 103. POWERS. 

20 The Consortium— 

21 (1) may make and perform such contracts and 

22 other agreements with any individual or other pri23 vate or public entity however designated and wher24 ever situated, as may be necessary for carrying out 

25 the functions of the Consortium; and 


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1 (2) shall have such other powers, other than the 

2 power to assume risk or incur debt, as may be nec3 essary and incident to carrying out this Act. 

4 SEC. 104. NONPROFIT ENTITY; CONFLICTS OF INTEREST; 

5 AUDITS. 

6 (a) NONPROFIT ENTITY.—The Consortium shall be 

7 a nonprofit entity and no part of the net earnings of the 

8 Consortium shall inure to the benefit of any member, 

9 founder, contributor, or individual. 

10 (b) CONFLICTS OF INTEREST.—No director, officer, 

11 or employee of the Consortium shall in any manner, di12 rectly or indirectly, participate in the deliberation upon or 

13 the determination of any question affecting his or her per14 sonal interests or the interests of any Consortium, part15 nership, or organization in which he or she is directly or 

16 indirectly interested. 

17 (c) AUDITS.— 

18 (1) ANNUAL AUDIT.—The financial statements 

19 of the Consortium shall be audited annually in ac20 cordance with generally accepted auditing standards 

21 by independent certified public accountants. 

22 (2) REPORTS.—The report of each annual audit 

23 pursuant to paragraph (1) shall be included in the 

24 annual report submitted in accordance with section 

25 102(7). 


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1 SEC. 105. MANAGEMENT. 

2 (a) BOARD OF DIRECTORS; MEMBERSHIP; DESIGNA3 TION OF CHAIRPERSON.— 

4 (1) BOARD OF DIRECTORS.—The management 

5 of the Consortium shall be vested in a board of di6 rectors (referred to in this title as the ‘‘Board’’) 

7 composed of not fewer than 3 members. 

8 (2) CHAIRPERSON.—The Secretary, or the des9 ignee of the Secretary, shall serve as the chairperson 

10 of the Board. 

11 (3) MEMBERSHIP.—The members of the Board 

12 shall include— 

13 (A) the Secretary of Homeland Security 

14 and the Secretary of Commerce, or the des15 ignees of such Secretaries, respectively, but only 

16 during such times as there are fewer than 2 

17 States participating in the Consortium; and 

18 (B) a member from each State partici19 pating in the Consortium, who shall be ap20 pointed by such State. 

21 (b) BYLAWS.—The Board may prescribe, amend, and 

22 repeal such bylaws as may be necessary for carrying out 

23 the functions of the Consortium. 

24 (c) COMPENSATION, ACTUAL, NECESSARY, AND

25 TRANSPORTATION EXPENSES.— 


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1 (1) NON-FEDERAL EMPLOYEES.—A member of 

2 the Board who is not otherwise employed by the 

3 Federal Government shall be entitled to receive the 

4 daily equivalent of the annual rate of basic pay pay5 able for level IV of the Executive Schedule under 

6 section 5315 of title 5, United States Code, as in ef7 fect from time to time, for each day (including travel 

8 time) during which such member is engaged in the 

9 actual performance of duties of the Consortium. 

10 (2) FEDERAL EMPLOYEES.—A member of the 

11 Board who is an officer or employee of the Federal 

12 Government shall serve without additional pay (or 

13 benefits in the nature of compensation) for service 

14 as a member of the Consortium. 

15 (3) TRAVEL EXPENSES.—Members of the Con16 sortium shall be entitled to receive travel expenses, 

17 including per diem in lieu of subsistence, equivalent 

18 to those set forth in subchapter I of chapter 57 of 

19 title 5, United States Code. 

20 (d) QUORUM.—A majority of the Board shall con21 stitute a quorum. 

22 (e) EXECUTIVE DIRECTOR.—The Board shall ap23 point an executive director of the Consortium, on such 

24 terms as the Board may determine. 


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1 SEC. 106. STAFF; EXPERTS AND CONSULTANTS. 

2 (a) STAFF.— 

3 (1) APPOINTMENT.—The Board of the Consor4 tium may appoint and terminate such other staff as 

5 are necessary to enable the Consortium to perform 

6 its duties. 

7 (2) COMPENSATION.—The Board of the Con8 sortium may fix the compensation of the executive 

9 director and other staff. 

10 (b) EXPERTS AND CONSULTANTS.—The Board shall 

11 procure the services of experts and consultants as the 

12 Board considers appropriate. 

13 SEC. 107. FEDERAL LIABILITY. 

14 The Federal Government and the Consortium shall 

15 not bear any liabilities arising from the actions of the Con16 sortium. Participating States shall retain all catastrophe 

17 risk until the completion of a transaction described in 

18 paragraphs (2) and (3) of section 102. 

19 SEC. 108. AUTHORIZATION OF APPROPRIATIONS. 

20 There are authorized to be appropriated to carry out 

21 this title $20,000,000 for each of fiscal years 2013 

22 through 2018. 


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1 TITLE II—NATIONAL HOME2 OWNERS’ INSURANCE STA3 BILIZATION PROGRAM 

4 SEC. 201. ESTABLISHMENT. 

5 The Secretary shall carry out a program under this 

6 title to make liquidity loans and catastrophic loans under 

7 section 202 to qualified reinsurance programs to ensure 

8 the solvency of such programs, to improve the availability 

9 and affordability of homeowners’ insurance, to provide in10 centive for risk transfer to the private capital and reinsur11 ance markets, and to spread the risk of catastrophic finan12 cial loss resulting from natural disasters and catastrophic 

13 events. 

14 SEC. 202. LIQUIDITY LOANS AND CATASTROPHIC LOANS 

15 FOR STATE AND REGIONAL REINSURANCE 

16 PROGRAMS. 

17 (a) CONTRACTS.—The Secretary may enter into a 

18 contract with a qualified reinsurance program to carry out 

19 this title, as the Secretary may deem appropriate. The 

20 contract shall include, at a minimum, the conditions for 

21 loan eligibility set forth in this section. 

22 (b) CONDITIONS FOR LOAN ELIGIBILITY.—A loan 

23 under this section may be made only to a qualified reinsur24 ance program and only if— 

25 (1) before the loan is made— 


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1 (A) the State or regional reinsurance pro2 gram submits to the Secretary a report setting 

3 forth, in such form and including such informa4 tion as the Secretary shall require, how the pro5 gram plans to repay the loan; and 

6 (B) based upon the report of the program, 

7 the Secretary determines that the program can 

8 meet its repayment obligation under the loan 

9 and certifies that the program can meet such 

10 obligation; 

11 (2) the program cannot access capital in the 

12 private market, including through catastrophe bonds 

13 and other securities sold through the facility created 

14 in title I of this Act, as determined by the Secretary, 

15 and a loan may be made to such a qualified reinsur16 ance program only to the extent that such program 

17 cannot access capital in the private market; 

18 (3) the Secretary determines that an event has 

19 resulted in insured losses in a State with a qualified 

20 reinsurance program; 

21 (4) the loan complies with the requirements 

22 under subsection (d) and or (e), as applicable; and 

23 (5) the loan is afforded the full faith and credit 

24 of the State and the State demonstrates to the Sec25 retary that it has the ability to repay the loans. 


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1 (c) MANDATORY ASSISTANCE FOR QUALIFIED REIN2 SURANCE PROGRAMS.—The Secretary shall, upon the re3 quest of a qualified reinsurance program and subject to 

4 subsection (b), make a loan under subsection (d) or (e) 

5 for such program in the amount requested by such pro6 gram (subject to the limitations under subsections (d)(2) 

7 and (e)(2), respectively). 

8 (d) LIQUIDITY LOANS.—A loan under this subsection 

9 for a qualified reinsurance program shall be subject to the 

10 following requirements: 

11 (1) PRECONDITIONS.—The Secretary shall have 

12 determined that the qualified reinsurance program— 

13 (A) has a capital liquidity shortage, in ac14 cordance with regulations that the Secretary 

15 shall establish; and 

16 (B) cannot access capital markets at effec17 tive rates of interest lower than those provided 

18 in paragraph (3). 

19 (2) AMOUNT.—The principal amount of the 

20 loan may not exceed the ceiling coverage level for the 

21 qualified reinsurance program. 

22 (3) RATE OF INTEREST.—The loan shall bear 

23 interest at an annual rate 3 percentage points high24 er than marketable obligations of the Treasury hav25 ing the same term to maturity as the loan and 


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1 issued during the most recently completed month, as 

2 determined by the Secretary, or such higher rate as 

3 may be necessary to ensure that the amounts of in4 terest paid under such loans exceed the sum of the 

5 costs (as such term is defined in section 502 of the 

6 Federal Credit Reform Act of 1990 (2 U.S.C. 

7 661a)) of such loans, the administrative costs in8 volved in carrying out a program under this title for 

9 such loans, and any incidental effects on govern10 mental receipts and outlays. 

11 (4) TERM.—The loan shall have a term to ma12 turity of not less than 5 years and not more than 

13 10 years. 

14 (e) CATASTROPHIC LOANS.—A loan under this sub15 section for a qualified reinsurance program shall be sub16 ject to the following requirements: 

17 (1) PRECONDITIONS.—The Secretary shall have 

18 determined that an event has resulted in insured 

19 losses in a State with a qualified reinsurance pro20 gram and that such insured losses in such State are 

21 in excess of 150 percent of the aggregate amount of 

22 direct written premium for privately issued property 

23 and casualty insurance, for risks located in that 

24 State, over the calendar year preceding such event, 


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1 in accordance with regulations that the Secretary 

2 shall establish. 

3 (2) AMOUNT.—The principal amount of the 

4 loan made pursuant to an event referred to in para5 graph (1) may not exceed the amount by which the 

6 insured losses sustained as a result of such event ex7 ceed the ceiling coverage level for the qualified rein8 surance program. 

9 (3) RATE OF INTEREST.—The loan shall bear 

10 interest at an annual rate 0.20 percentage points 

11 higher than marketable obligations of the United 

12 States Treasury having a term to maturity of not 

13 less than 10 years and issued during the most re14 cently completed month, as determined by the Sec15 retary, or such higher rate as may be necessary to 

16 ensure that the amounts of interest paid under such 

17 loans exceed the sum of the costs (as such term is 

18 defined in section 502 of the Federal Credit Reform 

19 Act of 1990 (2 U.S.C. 661a)) of such loans, the ad20 ministrative costs involved in carrying out a program 

21 under this title for such loans, and any incidental ef22 fects on governmental receipts and outlays. 

23 (4) TERM.—The loan shall have a term to ma24 turity of not less than 10 years. 


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1 (f) USE OF FUNDS.—Amounts from a loan under this 

2 section shall only be used to provide reinsurance or 

3 retrocessional coverage to underlying primary insurers or 

4 reinsurers for losses arising from all personal real property 

5 or homeowners’ lines of insurance, as defined in the Uni6 form Property & Casualty Product Coding Matrix pub7 lished and maintained by the National Association of In8 surance Commissioners. Such amounts shall not be used 

9 for any other purpose. 

10 SEC. 203. REPORTS AND AUDITS. 

11 The Secretary shall submit a report to the President 

12 and the Congress annually that identifies and describes 

13 any loans made under this title during such year and any 

14 repayments during such year of loans made under this 

15 title, and describes actions taken to ensure accountability 

16 of loan funds. The Secretary shall provide for regular au17 dits to be conducted for each loan made under this title, 

18 and shall make the results of such audits publicly avail19 able. 

20 SEC. 204. FUNDING. 

21 (a) PROGRAM FEE.— 

22 (1) IN GENERAL.—The Secretary may establish 

23 and collect, from qualified reinsurance programs 

24 that are precertified pursuant to section 3(c), a rea25 sonable fee, as may be necessary to offset the exVerDate Mar 15 2010 01:18 Aug 09, 2013 Jkt 029200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S1461.IS S1461

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1 penses of the Secretary in connection with carrying 

2 out the responsibilities of the Secretary under this 

3 title, including— 

4 (A) costs of developing, implementing, and 

5 carrying out the program under this title; and 

6 (B) costs of providing for precertification 

7 pursuant to section 3(c) of State and regional 

8 reinsurance programs as qualified reinsurance 

9 programs. 

10 (2) ADJUSTMENT.—The Secretary may, from 

11 time to time, adjust the fee under paragraph (1) as 

12 appropriate based on expenses of the Secretary re13 ferred to in such paragraph. 

14 (3) USE.—Any fees collected pursuant to this 

15 subsection shall be credited as offsetting collections 

16 of the Department of the Treasury and shall be 

17 available to the Secretary only for expenses referred 

18 to in paragraph (1). 

19 (b) COSTS OF LOANS; ADMINISTRATIVE COSTS.—To 

20 the extent that amounts of negative credit subsidy are re21 ceived by the Secretary in any fiscal year pursuant to 

22 loans made under this title, such amounts shall be avail23 able for costs (as such term is defined in section 502 of 

24 the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 


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1 of such loans and for costs of carrying out the program 

2 under this title for such loans. 

3 (c) FULL TAXPAYER REPAYMENT.—The Secretary 

4 shall require the full repayment of all loans made under 

5 this title. If the Secretary determines at any time that 

6 such full repayment will not made, or is likely not to be 

7 made, the Secretary shall promptly submit a report to the 

8 Congress explaining why such full repayment will not be 

9 made or is likely not to be made. 

Æ 


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