(j) REPAYMENT OF LOANS.— 
(1) IN
GENERAL.—Any liquidity loan made 
under this section to a State plan shall be repaid 
solely through premiums charged by such plan in ac-
cordance with subsection (i)(2), unless alternative 
arrangements have been made pursuant to para-
graph (3). The Secretary, in consultation with the 
Commission, shall determine the expected duration 
of each loan and monitor repayment of such loans. 
(2) AMOUNT OF PAYMENT.—To repay a liquid-
ity loan under this section, the State plan shall pay 
to the Fund, from all amounts collected for the cov-
erage layer referred to in subsection (i)(2) during 
the period referred to in such subsection, an amount 
equal to a minimum of 100 percent of the actuari-
ally sound premium determined under subsection 
(j)(1) for such coverage layer, and shall retain the 
remainder of such amount collected to build reserves 
for future events, or such other amount or percent-
age of such amounts as the Secretary, in consulta-
tion with the Commission and State plans, deter-
mines is appropriate. 
(3) OTHER OPTIONS.—A State plan may peti-
tion the Secretary for other repayment terms, in-
cluding repayment from sources such as dedicated 
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State sales taxes or other means, and the Secretary 
may, in consultation with the Commission, agree to 
such other terms. 
(k) REGULATIONS.—The Secretary shall issue any 
regulations necessary to carry out the program under this 
section. 
SEC. 104. TERMINATION. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the Secretary may not— 
(1) provide any new reinsurance coverage under 
section 102 that covers any period after the expira-
tion of the 20-year period beginning on the date of 
the enactment of this Act; or 
(2) make any new liquidity loan under section 
103 having a term to maturity that concludes after 
the expiration of such 20-year period. 
(b) EXTENSION.—If upon the expiration of the period 
under subsection (a) the Secretary, in consultation with 
the Commission, determines that continuation of the pro-
gram for reinsurance coverage under section 102 or for 
liquidity loans under section 103 is necessary or appro-
priate to carry out the purposes this Act because of insuf-
ficient growth of capacity in the private homeowners in-
surance market, the Secretary shall continue to make such 
coverage and loans available and subsection (a) shall be 
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applied by substituting ‘‘25-year period’’ for ‘‘20-year pe-
riod’’ each place such term appears. 
(c) REPEAL.—Effective upon the first date that rein-
surance coverage under section 102 is no longer available 
or in force and that liquidity loans under section 103 are 
no longer available or outstanding, pursuant to subsection 
(a) or (b), this Act (except for this section) is repealed. 
(d) DEFICIT REDUCTION.—The Secretary shall pay 
into the General Fund of the Treasury any amounts re-
maining in the Fund upon the repeal of this Act under 
subsection (c). 
TITLE II—DISASTER READINESS, 
CITIZEN 
AND 
COMMUNITY 
PREPAREDNESS, AND MITIGA-
TION 
SEC. 201. NATIONAL READINESS, PREPAREDNESS, AND 
MITIGATION COMMITTEE. 
(a) ESTABLISHMENT.—There is established a Na-
tional Readiness, Preparedness and Mitigation Committee 
(in this section referred to as the ‘‘Committee’’). 
(b) MEMBERS.—The Committee shall consist of 9 
members appointed by the Secretary of Housing and 
Urban Development or the Secretary’s designee, as fol-
lows: 
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(1) Three individuals from nationally recognized 
organizations representing State or local disaster re-
sponse providers or disaster management profes-
sionals. 
(2) Three individuals representing nationally 
recognized non-profits active in disaster prepared-
ness and response. 
(3) Three individuals representing nationally 
recognized organizations with expertise in contin-
gency planning, residential construction, building 
code development and implementation, and land use 
policy. 
(c) TERMS.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), each member of the Committee 
shall be appointed for a term of 3 years. 
(2) INITIAL MEMBERS.—Of the members ini-
tially appointed to the Committee— 
(A) one member appointed under each of 
paragraphs (1), (2), and (3) of subsection (b) 
shall be appointed for a term of 1 year; 
(B) one member appointed under each of 
paragraphs (1), (2), and (3) of subsection (b) 
shall be appointed for a term of 2 years; and 
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(C) one member appointed under each of 
paragraphs (1), (2), and (3) of subsection (b) 
shall be appointed for a term of 3 years. 
(3) VACANCIES.—A member appointed to fill an 
unexpired term shall serve the remainder of that 
term. 
(4) TERMINATION.—In the event that the Com-
mittee terminates, all appointments shall terminate. 
(d) PROHIBITION OF COMPENSATION; REIMBURSE-
MENT.—Members of the Committee shall receive no com-
pensation by reason of their service on the Committee, but 
shall be reimbursed as provided by rules and by-laws es-
tablished by the National Commission on Natural Catas-
trophe Preparation and Protection established under sec-
tion 101. 
(e) DUTIES.—The members of the Committee shall 
administer the program under subsection (f) and conduct 
oversight of the program and activities under such pro-
gram. 
(f) READINESS, PREPAREDNESS, AND MITIGATION 
GRANT PROGRAM.— 
(1) ALLOCATION OF AMOUNT.—Beginning upon 
the expiration of the 12-month period that begins on 
the date of the enactment of this Act, the Secretary 
shall ensure that, to the extent provided in appro-
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priation Acts, approximately 35 percent of the an-
nual net investment income of the Fund under sec. 
102(g), but not less than $15,000,000, and not 
more than 20 percent of the premium charged for 
reinsurance coverage under section 102 in any given 
year, shall be used for grants to States, units of 
local government, nonprofit organizations, and other 
appropriate public and private entities to develop, 
enhance, or maintain programs and initiatives to im-
prove and maintain disaster response, citizen pre-
paredness and protection, and prevention and miti-
gation of losses from natural catastrophes. 
(2) PROGRAM ELEMENTS.—The amounts made 
available under paragraph (1) shall be allocated for 
each of the following purposes in equal amounts: 
(A) DISASTER
RESPONSE
READINESS.— 
For disaster response readiness programs, 
which shall include national initiatives that de-
velop, enhance, or maintain the capacity of a 
public safety agency or other organization to be 
better prepared, equipped, and trained to re-
spond to natural catastrophes. 
(B) CITIZEN AND COMMUNITY PREPARED-
NESS.—For citizen and community prepared-
ness, which shall include programs and initia-
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tives, such as those offered by the American 
Red Cross, to improve education and training 
to ensure that citizens and organizations in 
their community are better prepared for natural 
catastrophes. 
(C) PREVENTION AND MITIGATION.—For 
prevention and mitigation of loss from natural 
catastrophes, which shall include methods to re-
duce loss of life and property, including appro-
priate measures to— 
(i) encourage awareness of the risk 
factors and what steps can be taken to 
eliminate or reduce them; 
(ii) identify location of risks, by giving 
careful consideration to the natural risks 
for the location of the property before al-
lowing construction and considerations if 
structures are allowed; and 
(iii) provide for construction relative 
to the risk and hazards, including— 
(I) establishment and adoption of 
State mandated building codes appro-
priate for the risk; 
(II) adequate enforcement of the 
risk-appropriate building codes, in-
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cluding inspections of homes to iden-
tify areas to strengthen such homes 
and reduce exposure to natural catas-
trophes; 
(III) use of building materials 
that prevent or significantly lessen po-
tential damage from the natural ca-
tastrophes; 
(IV) use of building methods that 
prevent or significantly lessen poten-
tial damage from the natural catas-
trophes; and 
(V) focusing on prevention and 
mitigation for any substantially dam-
aged structure, with an emphasis on 
how structures can be retrofitted to 
make them compliant with building 
codes. 
(g) CONTINUOUS
IMPROVEMENT, COORDINATION 
AND INTEGRATION.—The National Commission on Nat-
ural Catastrophe Preparation and Protection established 
under section 101 shall work with eligible State plans and 
the Committee to continuously improve, coordinate, and 
integrate disaster readiness, citizen and community pre-
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paredness, and loss prevention and mitigation at the local, 
State, regional, and national levels. 
Æ 
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