‘‘SEC. 328. RISK TRANSFER. 
‘‘(a) IN GENERAL.—Not later than 90 days after the 
date of enactment of this section, the Administrator of the 
Federal Emergency Management Agency shall solicit pro-
posals and may secure contracts from private entities pro-
viding insurance, reinsurance, or capital market invest-
ments to transfer a portion of the risk of assistance pro-
vided under any or all of sections 403, 404, 406, 407, 408, 
and 428, and of title V. 
‘‘(b) TREATMENT OF FUNDS.—The Administrator 
shall deposit any funds collected as the result of transfer 
of risk arrangements into the Disaster Relief Fund and 
such funds are available for any purpose for which such 
Fund may be used. 
‘‘(c) REPORT.—Not later than 18 months after the 
date of enactment of this section, the Administrator shall 
submit to Congress a report that— 
‘‘(1) provides a description of the proposals de-
scribed in subsection (a) that the Administrator re-
ceived; 
‘‘(2) assesses the proposals described in para-
graph (1) with respect to the capacity of private re-
insurance, capital, and financial markets to assist 
communities in managing the full range of financial 
risks associated with major disasters; 
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‘‘(3) assesses whether the rates and terms of 
the proposals described in paragraph (1) are— 
‘‘(A) reasonable and appropriate; and 
‘‘(B) in an amount sufficient to ensure the 
Disaster Relief Fund has the resources nec-
essary to respond to major disasters; 
‘‘(4) identifies the proposals, if any, that con-
tain rates and terms that satisfy the requirements of 
subparagraphs (A) and (B) of paragraph (3); and 
‘‘(5) describes the extent to which the proposals 
described in paragraph (4) would minimize the likeli-
hood that the Disaster Relief Fund would require 
emergency supplemental appropriations. 
‘‘(d) AUTHORITY TO IMPLEMENT.— 
‘‘(1) IN GENERAL.—The Administrator may an-
nually transfer a portion of the risk of the payments 
that may be made pursuant to this section to private 
insurance, reinsurance, or the capital markets, or 
any combination thereof, pursuant to the rates and 
terms of any proposals described in subsection 
(c)(4), if the Administrator determines that transfer-
ring such a portion is in the public interest. 
‘‘(2) APPLICABILITY OF FEDERAL ACQUISITION 
REGULATION.—Any transfer of risk pursuant to 
paragraph (1) may be entered into without regard to 
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the provisions of chapter 1 of title 48, Code of Fed-
eral Regulations. 
‘‘(3) EXPIRATION OF AUTHORITY.—The author-
ity described in paragraph (1) expires 5 years after 
the date on which the Administrator first transfers 
a portion of risk pursuant to such paragraph. 
‘‘(4) MULTIYEAR CONTRACTS.—Nothing in this 
subsection may be construed to prevent or prohibit 
the Administrator from entering into contracts hav-
ing a duration longer than 1 year. 
‘‘(e) REPORT.—Not later than 6 months after the 
date on which the Administrator identifies a proposal that 
contains rates and terms that satisfy the requirements of 
subparagraphs (A) and (B) of subsection (c)(3), the Ad-
ministrator shall submit to Congress a report detailing— 
‘‘(1) whether the Administrator adopted the 
proposal; and 
‘‘(2) the reasons the Administrator adopted or 
did not adopt such proposal.’’. 
Æ 
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