special Government employee for purposes of sections 202 
and 208 of title 18, United States Code. 
(e) EXPERTS AND CONSULTANTS.—The Commission 
may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, but at a 
rate not in excess of the daily equivalent of the annual 
rate of basic pay payable for level V of the Executive 
Schedule, for each day during which the individual pro-
cured is performing such services for the Commission. 
(f) COMPENSATION.—Each member of the Commis-
sion who is not an officer or employee of the Federal Gov-
ernment shall be compensated at a rate of basic pay pay-
able for level V of the Executive Schedule, for each day 
(including travel time) during which such member is en-
gaged in the performance of the duties of the Commission. 
All members of the Commission who are officers or em-
ployees of the United States shall serve without compensa-
tion in addition to that received for their services as offi-
cers or employees of the United States. 
(g) OBTAINING DATA.—The Commission and the 
Secretary may solicit loss exposure data and such other 
information either deems necessary to carry out its re-
sponsibilities from governmental agencies and bodies and 
organizations that act as statistical agents for the insur-
ance industry. The Commission and the Secretary shall
take such actions as are necessary to ensure that informa-
tion that either deems is confidential or proprietary is dis-
closed only to authorized individuals working for the Com-
mission or the Secretary. No company which refuses to 
provide information requested by the Commission or the 
Secretary may participate in the program for reinsurance 
coverage authorized under this Act, nor may any State 
insurance or reinsurance program participate if any gov-
ernmental agency within that State has refused to provide 
information requested by the Commission or the Sec-
retary. 
(h) FUNDING.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated— 
(A) $1,000,000 for fiscal year 2006 for the 
initial expenses in establishing the Commission 
and the initial activities of the Commission that 
cannot timely be covered by amounts obtained 
pursuant to section 5(a)(3)(C), as determined 
by the Secretary; 
(B) such additional sums as may be nec-
essary to carry out subsequent activities of the 
Commission;
(C) $1,000,000 for fiscal year 2006 for the 
initial expenses of the Secretary in carrying out 
the program authorized under section 2; and 
(D) such additional sums as may be nec-
essary to carry out subsequent activities of the 
Secretary under this Act. 
(2) OFFSET.—The Secretary shall provide, to 
the maximum extent practicable, that an amount 
equal to any amount appropriated under paragraph 
(1) is obtained from purchasers of reinsurance cov-
erage under this Act and deposited in the Fund es-
tablished under section 7. Such amounts shall be ob-
tained by inclusion of a provision for the Secretary’s 
and the Commission’s expenses incorporated into the 
pricing of the contracts for such reinsurance cov-
erage, pursuant to section 5(a)(3)(C). 
(i) TERMINATION.—The Commission shall terminate 
upon the effective date of the repeal under section 11(c). 
SEC. 9. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the National Commission on Catastrophe 
Risks and Insurance Loss Costs established under 
section 8.
(2) COVERED PERILS.—The term ‘‘covered per-
ils’’ means the disaster perils under section 4. 
(3) COVERED PURCHASER.—The term ‘‘covered 
purchaser’’ means, with respect to reinsurance cov-
erage made available under a contract under section 
5, the purchaser of the contract auctioned under 
such section or any subsequent holder or holders of 
the contract. 
(4) DISASTER AREA.—The term ‘‘disaster area’’ 
means a geographical area, with respect to which— 
(A) a covered peril has occurred; and 
(B) a declaration that a major disaster ex-
ists, as a result of the occurrence of such 
peril— 
(i) has been made by the President of 
the United States; and 
(ii) is in effect. 
(5) ELIGIBLE
LOSSES.—The term ‘‘eligible 
losses’’ means losses in excess of the sustained and 
retained losses, as defined by the Secretary after 
consultation with the Commission. 
(6) 
PRICE
GOUGING.—The 
term 
‘‘price 
gouging’’ means the providing of any consumer good 
or service by a supplier for a price that the supplier 
knows or has reason to know is greater, by at least
the percentage set forth in a State law or regulation 
prohibiting such act (notwithstanding any real cost 
increase due to any attendant business risk and 
other reasonable expenses that result from the major 
disaster involved), than the price charged by the 
supplier for such consumer good or service imme-
diately before the disaster. 
(7) QUALIFIED
LINES.—The term ‘‘qualified 
lines’’ means lines of insurance coverage for which 
losses are covered under section 3 by reinsurance 
coverage under this Act. 
(8) REINSURANCE COVERAGE.—The term ‘‘re-
insurance coverage under this Act’’ means coverage 
under contracts made available under section 5 by 
the Secretary. 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(10) STATE.—The term ‘‘State’’ means the 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam, 
the Virgin Islands, American Samoa, and any other 
territory or possession of the United States.
SEC. 10. REGULATIONS. 
The Secretary shall issue any regulations necessary 
to carry out the program for reinsurance coverage under 
this Act. 
SEC. 11. TERMINATION. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the Secretary may not provide any reinsurance cov-
erage under this Act covering any period after the expira-
tion of the 10-year period beginning on the date of the 
enactment of this Act. 
(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 this Act is necessary 
to carry out the purpose of this Act under section 2(b) 
because of insufficient growth of capacity in the private 
homeowners’ insurance market, the Secretary shall con-
tinue to provide reinsurance coverage under this Act until 
the expiration of the 5-year period beginning upon the ex-
piration of the period under subsection (a). 
(c) REPEAL.—Effective upon the date that reinsur-
ance coverage under this Act is no longer available or in 
force pursuant to subsection (a) or (b), this Act (except 
for this section) is repealed. 
(d) DEFICIT REDUCTION.—The Secretary shall cover 
into the General Fund of the Treasury any amounts re-
maining in the Fund under section 7 upon the repeal of 
this Act. 
SEC. 12. ANNUAL STUDY OF COST AND AVAILABILITY OF 
DISASTER INSURANCE AND PROGRAM NEED. 
(a) IN GENERAL.—The Secretary shall, on an annual 
basis, conduct a study and submit to the Congress a report 
on the cost and availability of homeowners’ insurance for 
losses resulting from catastrophic disasters covered by the 
reinsurance program under this Act. 
(b) CONTENTS.—Each annual study under this sec-
tion shall determine and identify, on an aggregate basis— 
(1) for each State or region, the capacity of the 
private homeowners’ insurance market with respect 
to coverage for losses from catastrophic disasters; 
(2) for each State or region, the percentage of 
homeowners who have such coverage, the disasters 
covered, and the average cost of such coverage; 
(3) for each State or region, the progress that 
private reinsurers and capital markets have made in 
providing reinsurance for such homeowners’ insur-
ance; 
(4) for each State or region, the effects of the 
Federal reinsurance program under this Act on the 
availability and affordability of such insurance; and
(5) the appropriate time for termination of the 
Federal reinsurance program under this Act. 
(c) TIMING.—Each annual report under this section 
shall be submitted not later than March 30 of the year 
after the year for which the study was conducted. 
(d) COMMENCEMENT
OF
REPORTING
REQUIRE-
MENT.—The Secretary shall first submit an annual report 
under this section not later than 2 years after the date 
of the enactment of this Act. 
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