Sec. 103. Powers. 
Sec. 104. Nonprofit entity; restriction on use of moneys; conflicts of interest; 
audits. 
Sec. 105. Federal assistance. 
Sec. 106. Management. 
Sec. 107. Staff; experts and consultants. 
Sec. 108. State matching funds. 
Sec. 109. Federal liability. 
Sec. 110. Authorization of appropriations. 
TITLE II—NATIONAL HOMEOWNERS’ INSURANCE STABILIZATION 
PROGRAM 
Sec. 201. Establishment. 
Sec. 202. Liquidity loans and catastrophic loans for State and regional reinsur-
ance programs. 
Sec. 203. Reports. 
Sec. 204. Funding. 
TITLE III—GENERAL PROVISIONS 
Sec. 301. Qualified reinsurance programs. 
Sec. 302. Definitions. 
Sec. 303. Regulations. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the United States has a history of cata-
strophic natural disasters, including hurricanes, tor-
nadoes, flood, fire, earthquakes, and volcanic erup-
tions; 
(2) although catastrophic natural disasters 
occur infrequently, they will continue to occur and 
are predictable; 
(3) such disasters generate large economic 
losses and a major component of those losses comes 
from damage and destruction to homes; 
(4) for the majority of Americans, their invest-
ment in their home represents their single biggest 
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asset and the protection of that investment is para-
mount to economic and social stability; 
(5) historically, when a natural disaster eclipses 
the ability of the private industry and a State to 
manage the loss, the Federal Government has 
stepped in to provide the funding and services need-
ed for recovery; 
(6) the cost of such Federal ‘‘bail-outs’’ are 
borne by all taxpayers equally, as there is no provi-
sion to repay the money and resources provided, 
which thereby unfairly burdens citizens who live in 
lower risk communities; 
(7) as the risk of catastrophic losses grows, so 
do the risks that any premiums collected by private 
insurers for extending coverage will be insufficient to 
cover future catastrophes (known as timing risk), 
and private insurers, in an effort to protect their 
shareholders and policyholders (in the case of mutu-
ally-owned companies), have thus significantly raised 
premiums and curtailed insurance coverage in States 
exposed to major catastrophes; 
(8) such effects on the insurance industry have 
been harmful to economic activity in States exposed 
to major catastrophes and have placed significant 
burdens on existing residents of such States; 
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(9) Hurricanes Katrina, Rita, and Wilma 
struck the United States in 2005, causing over 
$200,000,000,000 in total economic losses, and in-
sured 
losses 
to 
homeowners 
in 
excess 
of 
$50,000,000,000; 
(10) since 2004, the Congress has appropriated 
more than $58,000,000,000 in disaster relief to the 
States affected by natural catastrophes; 
(11) the Federal Government has provided and 
will continue to provide resources to pay for losses 
from future catastrophes; 
(12) when Federal assistance is provided to the 
States, accountability for Federal funds disbursed is 
paramount; 
(13) the Government Accountability Office or 
other appropriate agencies must have the means in 
place to confirm that Federal funds for catastrophe 
relief have reached the appropriate victims and have 
contributed to the recovery effort as efficiently as 
possible so that taxpayer funds are not wasted and 
citizens are enabled to rebuild and resume produc-
tive activities as quickly as possible; 
(14) States that are recipients of Federal funds 
must be responsible to account for and provide an 
efficient means for distribution of funds to home-
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owners to enable the rapid rebuilding of local econo-
mies after a catastrophic event without unduly bur-
dening taxpayers who live in areas seldom affected 
by natural disasters; 
(15) State insurance and reinsurance programs 
can provide a mechanism for States to exercise that 
responsibility if they appropriately underwrite and 
price risk, and if they pay claims quickly and within 
established contractual terms; and 
(16) State insurers and reinsurers, if appro-
priately backstopped themselves, can absorb cata-
strophic risk borne by private insurers without bear-
ing timing risk, and thus enable all insurers (wheth-
er State-operated or privately owned) to underwrite 
and price insurance without timing risk and in such 
a way to encourage property owners to pay for the 
appropriate insurance to protect themselves and to 
take steps to mitigate against the risks of disaster 
by locally appropriate methods. 
(b) PURPOSES.—The purposes of this Act are to es-
tablish a program to provide a Federal backstop for State- 
sponsored insurance programs to help homeowners pre-
pare for and recover from the damages caused by natural 
catastrophes, to encourage mitigation and prevention for 
such catastrophes, to promote the use of private market 
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capital as a means to insure against such catastrophes, 
to expedite the payment of claims and better assist in the 
financial recovery from such catastrophes. 
TITLE 
I—NATIONAL 
CATAS-
TROPHE RISK CONSORTIUM 
SEC. 101. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE. 
(a) ESTABLISHMENT.—There is established a body 
corporate to be known as the ‘‘National Catastrophe Risk 
Consortium’’ (in this title referred to as the ‘‘Consor-
tium’’). 
(b) STATUS.—The Consortium is not a department, 
agency, or instrumentality of the United States Govern-
ment. 
(c) PRINCIPAL OFFICE.—The principal office and 
place of business of the Consortium shall be in the District 
of Columbia. 
SEC. 102. FUNCTIONS. 
The Consortium shall— 
(1) work with all States participating in the 
Consortium to gather and maintain an inventory of 
catastrophe risk obligations held by participating 
States’ reinsurance funds, risk pools, or primary in-
surance corporations; 
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tangible, in furtherance of the purposes of this Act; 
and 
(9) shall have such other powers as may be nec-
essary and incident to carrying out this Act. 
SEC. 104. NONPROFIT ENTITY; RESTRICTION ON USE OF 
MONEYS; CONFLICTS OF INTEREST; AUDITS. 
(a) NONPROFIT ENTITY.—The Consortium shall be 
a nonprofit Consortium and shall have no capital stock. 
(b) RESTRICTION.—No part of the Consortium’s rev-
enue, earnings, or other income or property shall inure 
to the benefit of any of its directors, officers, or employees, 
and such revenue, earnings, or other income or property 
shall only be used for carrying out the purposes and func-
tions of this Act. 
(c) CONFLICTS OF INTEREST.—No director, officer, 
or employee of the Consortium shall in any manner, di-
rectly or indirectly, participate in the deliberation upon or 
the determination of any question affecting his or her per-
sonal interests or the interests of any Consortium, part-
nership, or organization in which he or she is directly or 
indirectly interested. 
(d) AUDITS.— 
(1) AUDITS BY INDEPENDENT CERTIFIED PUB-
LIC ACCOUNTANTS.— 
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(A) IN
GENERAL.—The Consortium’s fi-
nancial statements shall be audited annually in 
accordance with generally accepted auditing 
standards by independent certified public ac-
countants that are certified by a regulatory au-
thority of a State or other political subdivision 
of the United States. The audits shall be con-
ducted at the place or places where the ac-
counts of the Consortium are normally kept. All 
books, accounts, financial records, reports, files, 
and all other papers, things, or property belong-
ing to or in use by the Consortium and nec-
essary to facilitate the audit shall be made 
available to the person or persons conducting 
the audits, and full facilities for verifying trans-
actions with the balances or securities held by 
depositories, fiscal agents, and custodians shall 
be afforded to such person or persons. 
(B) REPORTING REQUIREMENTS.—The re-
port of each annual audit described in subpara-
graph (A) shall be included in the annual report 
submitted in accordance with section 102(7). 
(2) AUDIT AND EXAMINATION OF BOOKS.—The 
Consortium shall ensure that the Consortium, or any 
duly authorized representative of the Consortium, 
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has access for the purpose of audit and examination 
to any books, documents, papers, and records of any 
recipient of assistance from the Consortium that are 
pertinent to such assistance. 
SEC. 105. FEDERAL ASSISTANCE. 
(a) IN GENERAL.—In order to carry out the func-
tions described in section 102, the Consortium shall be 
eligible to receive discretionary grants, contracts, gifts, 
contributions, or technical assistance from any Federal de-
partment or agency, to the extent permitted by law. 
(b) AGREEMENT.—In order to receive any assistance 
described in this section, the Consortium shall enter into 
an agreement with the Federal department or agency pro-
viding such assistance, under which the Consortium agrees 
to use such assistance to provide funding and technical 
assistance only for activities which the Board of Directors 
of the Consortium determines are consistent with the func-
tions described in section 102. 
SEC. 106. MANAGEMENT. 
(a) BOARD OF DIRECTORS; MEMBERSHIP; DESIGNA-
TION OF CHAIR.— 
(1) BOARD OF DIRECTORS.—The management 
of the Consortium shall be vested in a board of di-
rectors (referred to in this title as the ‘‘Board’’) 
composed of not less than 3 members. 
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(2) CHAIR.—The Secretary of Treasury, or his 
designee, shall serve as the Chair of the Board. 
(3) MEMBERSHIP.—The members of the Board 
shall include— 
(A) the Secretaries of Homeland Security 
and Commerce, or their designees; and 
(B) a member from each State partici-
pating in the Consortium, who shall be ap-
pointed by such State. 
(b) COMPENSATION, ACTUAL, NECESSARY, 
AND 
TRANSPORTATION EXPENSES.— 
(1) 
NONGOVERNMENT
EMPLOYEES.—Each 
member of the Board who is not otherwise employed 
by the Federal Government shall be entitled to re-
ceive the daily equivalent of the annual rate of basic 
pay payable for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code, 
as in effect from time to time, for each day (includ-
ing travel time) during which such member is en-
gaged in the actual performance of duties of the 
Consortium. 
(2) GOVERNMENT EMPLOYEES.—A member of 
the Consortium who is an officer or employee of the 
Federal Government shall serve without additional 
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pay (or benefits in the nature of compensation) for 
service as a member of the Consortium. 
(3) TRAVEL EXPENSES.—Members of the Con-
sortium shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sub-
chapter I of chapter 57 of title 5, United States 
Code. 
(c) QUORUM.—A majority of the Board shall con-
stitute a quorum. 
(d) EXECUTIVE DIRECTION.—The Board shall ap-
point an executive director of the Consortium on such 
terms as the Board may determine. 
SEC. 107. STAFF; EXPERTS AND CONSULTANTS. 
(a) STAFF.— 
(1) APPOINTMENT.—The Chair of the Consor-
tium may appoint and terminate such other staff as 
are necessary to enable the Consortium to perform 
its duties. 
(2) COMPENSATION.—The Chair of the Consor-
tium may fix the compensation of the executive di-
rector and other staff. 
(b) EXPERTS AND CONSULTANTS.—The Board shall 
procure the services of experts and consultants as the 
Board considers appropriate. 
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