‘‘(3) for covering the costs of the Corporation
and administering and operating the insurance pro-
gram; and
‘‘(4) for covering travel expenses of members of
the Disaster Insurance Advisory Commission estab-
lished by section 826.
‘‘(d) MINIMUM CAPITAL REQUIREMENT.—
‘‘(1) IN GENERAL.—The Corporation shall at
all times maintain amounts in the reserve account
equal to or in excess of the applicable minimum cap-
ital level determined under paragraph (2).
‘‘(2) ESTABLISHMENT OF CAPITAL LEVELS.—
The Corporation shall establish a series of minimum
capital levels appropriate to ensure sufficient capital-
ization of the Corporation based on the nature and
extent of the underwriting, investment, and other
risks assumed by the Corporation. The capital levels
shall not be effective unless approved by the Direc-
tor.
‘‘(e) TAX-EXEMPT STATUS.—Any amounts deposited
in the reserve account, including income derived from the
investment of amounts under subsection (c)(2), shall be
exempt from all taxation now or hereafter imposed by the
United States, or by any State, county, municipality, or
local taxing authority.
‘‘SEC. 824. BORROWING AUTHORITY.
‘‘(a) IN GENERAL.—To the extent that the amounts
in the reserve fund are insufficient to pay claims and ex-
penses of the Corporation and maintain amounts in ac-
cordance with the requirements under section 823(d), the
Corporation may issue to the Secretary of the Treasury
notes and other obligations to cover the insufficiency.
‘‘(b) TERMS OF BORROWING.—The Secretary may
purchase obligations issued under subsection (a) only if
the President determines that the financial condition of
the Corporation is adequate to ensure repayment of the
obligations. Such obligations shall have terms and condi-
tions as determined by the Secretary of the Treasury.
‘‘SEC. 825. INITIAL FEDERAL CONTRIBUTION AND PROHIBI-
TION OF ADDITIONAL FEDERAL ASSISTANCE.
‘‘(a) AUTHORIZATION
OF
APPROPRIATIONS.—For
purposes of carrying out this title, there is authorized to
be appropriated to the Corporation an amount equal to
the difference between—
‘‘(1) the sum of any balances remaining, at the
end of September 30, 1995, in the Disaster Relief
appropriation and the Disaster Assistance Direct
Loan Program Account of the Federal Emergency
Management Agency; and
‘‘(2) the amounts determined by the Director to
be necessary to reserve from such appropriation and
in such Account for purposes of providing assistance
pursuant to any major disaster or emergency that
commences or occurs (or is declared or determined
to have commenced or occurred) on or before Sep-
tember 30, 1995.
‘‘(b) PROHIBITION OF FEDERAL ASSISTANCE.—Ex-
cept as provided in subsection (a) and section 824, no
Federal funds may be authorized, appropriated, or used
to fund any activity of the Corporation.
‘‘SEC. 826. DISASTER INSURANCE ADVISORY COMMISSION.
‘‘(a) ESTABLISHMENT.—There is hereby established
a commission to be known as the Disaster Insurance Advi-
sory Commission (in this section referred to as the ‘‘Com-
mission’’).
‘‘(b) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—The Commission shall be
composed of 11 members appointed by the Presi-
dent, in consultation with the Director. Of the mem-
bers of the Commission, not less than 6 shall be in-
dividuals who have been nominated for such appoint-
ment by States that are participants in the Corpora-
tion, except that (to the extent possible) not more
than one such member may be appointed to the
Commission pursuant to the nomination of any sin-
gle State. Each member of the Commission shall
have experience or expertise in at least one of the
areas described in subparagraphs (A) through (D) of
paragraph (2).
‘‘(2) EXPERTISE.—The membership of the
Commission shall, at all times, include—
‘‘(A) not less than 1 individual who has ex-
perience or expertise in actuarial issues relating
to disaster insurance;
‘‘(B) not less than 1 individual who has ex-
perience or expertise in the management of in-
surance companies;
‘‘(C) not less than 1 individual who has ex-
perience or expertise in the regulation of insur-
ance companies; and
‘‘(D) not less than 1 individual who has
experience or expertise in disaster relief.
‘‘(3) TERMS.—
‘‘(A) IN GENERAL.—Each member of the
Commission shall be appointed for a term of 4
years, except as provided in subparagraph (B).
‘‘(B) INITIAL APPOINTEES.—As designated
by the President at the time of appointment, of
the members first appointed to the Commis-
sion—