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, flood-
ing, and hurricanes, directly affect hundreds of mil-
lions of people each year; 
(2) during the 1990s, 2,800 natural disasters 
killed more than 500,000 people and directly af-
fected 1,300,000,000 people worldwide; 
(3) property damage from natural catastrophes 
has dramatically increased in recent decades, rough-
ly 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 environ-
ment in some States has further exacerbated insur-
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ance cost increases, including through ineffective 
price controls, restrictions on capital movement, sub- 
optimal solvency regulation, and duplicative or un-
necessary regulation; 
(7) consumers further suffer from temporary 
rate and availability volatility after major catas-
trophes while the marketplace adjusts to the losses; 
(8) government catastrophe mitigation require-
ments have been sub-optimal, sometimes ineffective, 
and uncoordinated; 
(9) some State efforts to reduce insurance 
prices in catastrophe-prone areas have sometimes re-
duced long-term availability and competitive afford-
ability 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 ap-
proach to assessing natural catastrophe risk man-
agement and insurance is to establish a nonpartisan 
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commission to study the management of natural ca-
tastrophe 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 com-
posed of 16 members, of whom— 
(1) 2 members shall be appointed by the Major-
ity Leader of the Senate; 
(2) 2 members shall be appointed by the Minor-
ity Leader of the Senate; 
(3) 2 members shall be appointed by the Speak-
er of the House of Representatives; 
(4) 2 members shall be appointed by the Minor-
ity Leader of the House of Representatives; 
(5) 2 members shall be appointed by the Chair-
man of the Committee on Banking, Housing, and 
Urban Affairs of the Senate; 
(6) 2 members shall be appointed by the Rank-
ing Member of the Committee on Banking, Housing, 
and Urban Affairs of the Senate; 
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(7) 2 members shall be appointed by the Chair-
man of the Committee on Financial Services of the 
House of Representatives; and 
(8) 2 members shall be appointed by the Rank-
ing 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, reinsur-
ance, insurance regulation, policyholder con-
cerns, emergency management, risk manage-
ment, public finance, financial markets, actu-
arial analysis, flood mapping and planning, 
structural engineering, building standards, land 
use planning, natural catastrophes, meteor-
ology, 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 gov-
ernment. 
(2) DIVERSITY.—In making appointments to 
the Commission— 
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(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 exper-
tise described in paragraph (1)(A) of this sub-
section. 
(c) PERIOD OF APPOINTMENT.— 
(1) IN GENERAL.—Each member of the Com-
mission 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. 
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(e) CHAIRPERSON.—The Commission shall, by ma-
jority 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. 
SEC. 5. DUTIES OF THE COMMISSION. 
The Commission shall examine and report to the Con-
gress on the natural catastrophe insurance marketplace, 
including the extent to which insurance costs and avail-
ability are affected by the factors described in section 2, 
which factors the Federal Government can and should ad-
dress to increase catastrophe insurance availability and 
competitiveness, and which actions the Federal Govern-
ment can undertake to achieve this goal without requiring 
a long-term cross-subsidy from the taxpayers. In devel-
oping its report, the Commission shall consider— 
(1) the current condition of, as well as the out-
look for, the availability and affordability of insur-
ance 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; 
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(G) providing for limited Federal develop-
ment and oversight of the sale of catastrophe 
insurance in high-risk areas during periods of 
relative unavailability; and 
(H) facilitating further growth of the ca-
tastrophe bond marketplace and other competi-
tive alternatives to the traditional insurance 
and reinsurance marketplace; 
(5) the present and long-term financial condi-
tion of State residual markets and catastrophe funds 
in high-risk regions, including the likelihood of insol-
vency following a natural catastrophe, the concentra-
tion 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 regula-
tions and building codes in States at high risk for 
natural catastrophes, and methods to strengthen the 
risk assessment and enforcement of structural miti-
gation and vulnerability reduction measures, such as 
zoning and building code compliance; 
(7) the ability of the private insurance market 
in the United States— 
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(A) to cover insured losses caused by nat-
ural catastrophes, including an estimate of the 
maximum amount of insured losses that could 
be sustained during a single year and the prob-
ability of natural catastrophes occurring in a 
single year that would inflict more insured 
losses than the United States insurance and re-
insurance 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 fu-
ture 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 Com-
mittee on Financial Services of the House of Representa-
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tives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a final report containing— 
(1) a detailed statement of the findings and as-
sessments conducted by the Commission pursuant to 
section 5; and 
(2) specific and detailed recommendations for 
legislative, regulatory, administrative, or other ac-
tions 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 Commis-
sion 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 provi-
sion of section 552a of title 5, United States Code, 
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the Commission may secure directly from any de-
partment or agency of the United States any infor-
mation necessary to enable the Commission to carry 
out this Act. 
(2) PROCEDURE.—Upon request of the Chair-
person, the head of such department or agency shall 
furnish to the Commission the information re-
quested. 
(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 Gen-
eral Services shall provide to the Commission, on a reim-
bursable basis, any administrative support services nec-
essary 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 pur-
poses of aiding or facilitating the work of the Commission. 
The Commission shall issue internal guidelines governing 
the receipt of donations of services or property. 
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(g) VOLUNTEER SERVICES.—Notwithstanding the 
provisions of section 1342 of title 31, United States Code, 
the Commission may accept and utilize the services of vol-
unteers 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 Commis-
sion. 
SEC. 8. COMMISSION PERSONNEL MATTERS. 
(a) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
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(e) EXPERTS AND CONSULTANTS.—In carrying out 
its objectives, the Commission may procure temporary and 
intermittent services of consultants and experts under sec-
tion 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 Gen-
eral Schedule under section 5332 of that title. 
(f) DETAIL OF GOVERNMENT EMPLOYEES.—Upon 
request of the Chairperson, any Federal Government em-
ployee may be detailed to the Commission to assist in car-
rying out the duties of the Commission— 
(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 Com-
mission, such sums as may be necessary to carry out this 
Act, to remain available until expended. 
Æ 
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