District Court for the District of Columbia. Original exclu-
sive jurisdiction is hereby conferred upon such Court to
hear and determine such action without regard to the
amount in controversy.
‘‘Subtitle B—National Disaster In-
surance Corporation and Disas-
ter Insurance Advisory Commis-
sion
‘‘SEC. 821. NATIONAL DISASTER INSURANCE CORPORA-
TION.
‘‘(a) ESTABLISHMENT.—There is authorized to be es-
tablished a body corporate to be known as the National
Disaster Insurance Corporation, which shall be subject to
the provisions of this title. The Corporation shall not be
an agency or establishment of the Federal Government.
The principal office of the Corporation shall be located in
the District of Columbia or the metropolitan area thereof.
‘‘(b) FUNCTION.—The purpose of the Corporation
shall be to carry out the insurance program under subtitle
A.
‘‘(c) GOVERNANCE.—
‘‘(1) BOARD OF DIRECTORS.—The Corporation
shall be under the direction of a board of directors
who shall be elected by the participants in the Cor-
poration. Members of the board shall not be consid-
ered, by reason of such membership, to be employees
of the Federal Government.
‘‘(2) INITIAL BOARD.—Except as otherwise pro-
vided by the Corporation pursuant to section
822(2)—
‘‘(A) the board shall be composed of 7
members, selected by a majority of the partici-
pants in the Corporation through an election (i)
that shall take place at the initial organiza-
tional meeting of the Corporation held pursuant
to subsection (e)(1), and (ii) in which each of
the participants shall have 1 vote; and
‘‘(B) the term of each member of the
board shall be 5 years.
‘‘(d) PARTICIPANTS.—A State shall be considered as
a participant in the Corporation for purposes of this title
only if the State complies with the following requirements:
‘‘(1) INITIAL CONTRIBUTION.—The State has
made a payment to the Corporation (or to the Direc-
tor pursuant to subsection (e)(2)) in an amount
equal to 1 percent of the aggregate amount of Fed-
eral financial assistance provided, during fiscal years
1986 through 1995, to the State (or to or on behalf
of persons or property located in the State) for dis-
aster relief relating to a major disaster or emergency
declared under this Act, as determined by the Direc-
tor. For purposes of this paragraph, the term ‘Fed-
eral financial assistance’ shall include any grant,
payment, subsidy, or loan provided by any agency
of the Federal Government, and the amount of as-
sistance provided under a loan shall be considered
to be an amount equal to the principal obligation
under the loan.
‘‘(2) PAYMENT
OF
PREMIUM
CHARGES.—The
State has paid any premium charges assessed for
such State pursuant to section 804, in accordance
with the requirements established by the Corpora-
tion for payment of such charges.
For purposes of the organizational meeting under
subsection (e)(1), any State that complies with paragraph
(1) of this subsection shall be considered as a participant.
‘‘(e) INITIAL ORGANIZATION.—
‘‘(1) ORGANIZATIONAL MEETING.—The Direc-
tor shall call an organizational meeting for the Cor-
poration to be held not later than August 31, 1995,
at which the participants shall elect the initial mem-
bers of the board of directors and shall take such
other actions as may be necessary to establish the
Corporation in accordance with this title. The Direc-
tor shall notify each State of the meeting and the
purposes of the meeting and shall organize and chair
the meeting.
‘‘(2) COLLECTION
OF
INITIAL
CONTRIBU-
TIONS.—Before the organization of the Corporation
pursuant to paragraph (1), the Director shall collect
payments under subsection (d)(1) on behalf of the
Corporation.
‘‘(f) OWNERSHIP.—The Corporation shall be pri-
vately owned by the participants in the insurance pro-
gram. Obligations and indebtedness of the Corporation
shall not be considered obligations and indebtedness of the
Federal Government or guaranteed by the Federal Gov-
ernment.
‘‘(g) OFFICERS AND EMPLOYEES.—The Corporation
may appoint and hire officers and employees at the discre-
tion of the Corporation, but may not pay any officer or
employee at a rate exceeding the rate of basic pay payable
for level IV of the Executive Schedule. Any such officers
and employees shall not be considered officers or employ-
ees of the Federal Government and shall not be subject
to the provisions of title 5, United States Code.
‘‘(h) POWERS.—The Corporation shall have the
power—
‘‘(1) to adopt, alter, and use a corporate seal;
‘‘(2) to make and enforce contracts and agree-
ments appropriate to carry out this title;
‘‘(3) to settle, adjust, compromise, and release
claims against the corporation;
‘‘(4) to sue and be sued;
‘‘(5) to acquire, hold, and own, and deal with
and dispose of real and personal property to the ex-
tent appropriate to carry out this title;
‘‘(6) to have succession until dissolved by Act of
Congress; and
‘‘(7) to exercise all other lawful powers nec-
essary or appropriate to carry out this title.
‘‘SEC. 822. STRUCTURE AND OPERATIONS.
‘‘After consultation with the Director and other ap-
propriate Federal agencies, the Corporation shall establish
appropriate guidelines for the structure and operation of
the Corporation and the insurance program, which—
‘‘(1) shall include standards relating to the va-
cancies, bylaws, and powers of the board;
‘‘(2) may include provisions, applicable only
after October 1, 1996, establishing the composition
of the board and the terms of office of the members
of the board other than as provided for in section
821(c)(2); and
‘‘(3) shall include a minimum capital require-
ment pursuant to section 823(d).
‘‘SEC. 823. RESERVE ACCOUNT.
‘‘(a) ESTABLISHMENT.—The Corporation shall estab-
lish and manage a reserve account for the operation of
the insurance program.
‘‘(b) CREDITS.—The reserve account of the Corpora-
tion shall be credited with—
‘‘(1) any premium charges under section 804
collected by the Corporation;
‘‘(2) any amounts appropriated for the Cor-
poration pursuant to section 825(a); and
‘‘(3) any interest earned on investments of the
Corporation pursuant to subsection (c)(2).
‘‘(c) USE.—Amounts in the reserve account of the
Corporation shall be available—
‘‘(1) for payment of qualifying claims under the
insurance program of participants, consistent with
the terms and conditions established under section
802(a);
‘‘(2) to the extent that the Corporation deter-
mines that such amounts are in excess of current
needs and the amount required to be held in the re-
serve account pursuant to subsection (d), for invest-
ment as the Corporation considers appropriate;