An original bill to establish a nonpartisan commission on natural catastrophe risk management and insurance, and for other purposes.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commission on 
Natural Catastrophe Risk Management and Insurance Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Establishment.
Sec. 4. Membership.
Sec. 5. Duties of the Commission.
Sec. 6. Report.
Sec. 7. Powers of the Commission.
Sec. 8. Commission personnel matters.
Sec. 9. Termination.
Sec. 10. Authorization of appropriations.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) Hurricanes Katrina, Rita, and Wilma, which struck the 
        United States in 2005, caused, by some estimates, in excess of 
        $200,000,000,000 in total economic losses;
            (2) many meteorologists predict that the United States is 
        in a period of increased hurricane activity;
            (3) the Federal Government and State governments have 
        provided billions of dollars to pay for losses from natural 
        catastrophes, including hurricanes, earthquakes, volcanic 
        eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
        and other natural catastrophes;
            (4) many Americans are finding it increasingly difficult to 
        obtain and afford property and casualty insurance coverage;
            (5) some insurers are not renewing insurance policies, are 
        excluding certain risks, such as wind damage, and are 
        increasing rates and deductibles in some markets;
            (6) the inability of property and business owners in 
        vulnerable areas to obtain and afford property and casualty 
        insurance coverage endangers the national economy and public 
        health and safety;
            (7) almost every State in the United States is at risk of a 
        natural catastrophe, including hurricanes, earthquakes, 
        volcanic eruptions, tsunamis, tornados, flooding, wildfires, 
        droughts, and other natural catastrophes;
            (8) building codes and land use regulations play an 
        indispensable role in managing catastrophe risks, by preventing 
        building in high risk areas and ensuring that appropriate 
        mitigation efforts are completed where building has taken 
        place;
            (9) several proposals have been introduced in Congress to 
        address the affordability and availability of natural 
        catastrophe insurance across the United States, but there is no 
        consensus on what, if any, role the Federal Government should 
        play; and
            (10) an efficient and effective approach to assessing 
        natural catastrophe risk management and insurance is to 
        establish a nonpartisan commission to study the management of 
        natural catastrophe risk, and to require such commission to 
        timely report to Congress on its findings.

SEC. 3. ESTABLISHMENT.

    There is established a nonpartisan Commission on Natural 
Catastrophe Risk Management and Insurance (in this Act referred to as 
the ``Commission'').

SEC. 4. MEMBERSHIP.

    (a) Appointment.--The Commission shall be composed of 16 members, 
of whom--
            (1) 2 members shall be appointed by the majority leader of 
        the Senate;
            (2) 2 members shall be appointed by the minority leader of 
        the Senate;
            (3) 2 members shall be appointed by the Speaker of the 
        House of Representatives;
            (4) 2 members shall be appointed by the minority leader of 
        the House of Representatives;
            (5) 2 members shall be appointed by the Chairman of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
            (6) 2 members shall be appointed by the Ranking Member of 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate;
            (7) 2 members shall be appointed by the Chairman of the 
        Committee on Financial Services of the House of 
        Representatives; and
            (8) 2 members shall be appointed by the Ranking Member of 
        the Committee on Financial Services of the House of 
        Representatives.
    (b) Qualification of Members.--
            (1) In general.--Members of the Commission shall be 
        appointed under subsection (a) from among persons who--
                    (A) have expertise in insurance, reinsurance, 
                insurance regulation, policyholder concerns, emergency 
                management, risk management, public finance, financial 
                markets, actuarial analysis, flood mapping and 
                planning, structural engineering, building standards, 
                land use planning, natural catastrophes, meteorology, 
                seismology, environmental issues, or other pertinent 
                qualifications or experience; and
                    (B) are not officers or employees of the United 
                States Government or of any State government.
            (2) Diversity.--In making appointments to the Commission--
                    (A) every effort shall be made to ensure that the 
                members are representative of a broad cross section of 
                perspectives within the United States; and
                    (B) each member of Congress described in subsection 
                (a) shall appoint not more than 1 person from any 
                single primary area of expertise described in paragraph 
                (1)(A) of this subsection.
    (c) Period of Appointment.--
            (1) In general.--Each member of the Commission shall be 
        appointed for the duration of the Commission.
            (2) Vacancies.--A vacancy on the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (d) Quorum.--
            (1) Majority.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number, as determined 
        by the Commission, may hold hearings.
            (2) Approval actions.--All recommendations and reports of 
        the Commission required by this Act shall be approved only by a 
        majority vote of all of the members of the Commission.
    (e) Chairperson.--The Commission shall, by majority vote of all of 
the members, select 1 member to serve as the Chairperson of the 
Commission (in this Act referred to as the ``Chairperson'').
    (f) Meetings.--The Commission shall meet at the call of its 
Chairperson or a majority of the members.

SEC. 5. DUTIES OF THE COMMISSION.

    The Commission shall examine the risks posed to the United States 
by natural catastrophes, and means for mitigating those risks and for 
paying for losses caused by natural catastrophes, including assessing--
            (1) the condition of the property and casualty insurance 
        and reinsurance markets prior to and in the aftermath of 
        Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major 
        hurricanes that struck the United States in 2004;
            (2) the current condition of, as well as the outlook for, 
        the availability and affordability of insurance in all regions 
        of the country;
            (3) the current ability of States, communities, and 
        individuals to mitigate their natural catastrophe risks, 
        including the affordability and feasibility of such activities;
            (4) the ongoing exposure of the United States to natural 
        catastrophes, including hurricanes, earthquakes, volcanic 
        eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
        and other natural catastrophes;
            (5) the catastrophic insurance and reinsurance markets and 
        the relevant practices in providing insurance protection to 
        different sectors of the American population;
            (6) implementation of a catastrophic insurance system that 
        can resolve key obstacles currently impeding broader 
        implementation of catastrophic risk management and financing 
        with insurance;
            (7) the financial feasibility and sustainability of a 
        national, regional, or other pooling mechanism designed to 
        provide adequate insurance coverage and increased underwriting 
        capacity to insurers and reinsurers, including private-public 
        partnerships to increase insurance capacity in constrained 
        markets;
            (8) methods to promote public insurance policies to reduce 
        losses caused by natural catastrophes in the uninsured sectors 
        of the American population;
            (9) approaches for implementing a public or private 
        insurance scheme for low-income communities, in order to 
        promote risk reduction and insurance coverage in such 
        communities;
            (10) the impact of Federal and State laws, regulations, and 
        policies (including rate regulation, market access 
        requirements, reinsurance regulations, accounting and tax 
        policies, State residual markets, and State catastrophe funds) 
        on--
                    (A) the affordability and availability of 
                catastrophe insurance;
                    (B) the capacity of the private insurance market to 
                cover losses inflicted by natural catastrophes;
                    (C) the commercial and residential development of 
                high-risk areas; and
                    (D) the costs of natural catastrophes to Federal 
                and State taxpayers;
            (11) the present and long-term financial condition of State 
        residual markets and catastrophe funds in high-risk regions, 
        including the likelihood of insolvency following a natural 
        catastrophe, the concentration of risks within such funds, the 
        reliance on post-event assessments and State funding, and the 
        adequacy of rates;
            (12) the role that innovation in financial services could 
        play in improving the affordability and availability of natural 
        catastrophe insurance, specifically addressing measures that 
        would foster the development of financial products designed to 
        cover natural catastrophe risk, such as risked-linked 
        securities;
            (13) the need for strengthened land use regulations and 
        building codes in States at high risk for natural catastrophes, 
        and methods to strengthen the risk assessment and enforcement 
        of structural mitigation and vulnerability reduction measures, 
        such as zoning and building code compliance;
            (14) the benefits and costs of proposed Federal natural 
        catastrophe insurance programs (including the Federal 
        Government providing reinsurance to State catastrophe funds, 
        private insurers, or other entities), specifically addressing 
        the costs to taxpayers, tax equity considerations, and the 
        record of other government insurance programs (particularly 
        with regard to charging actuarially sound prices);
            (15) the ability of the United States private insurance 
        market--
                    (A) to cover insured losses caused by natural 
                catastrophes, including an estimate of the maximum 
                amount of insured losses that could be sustained during 
                a single year and the probability of natural 
                catastrophes occurring in a single year that would 
                inflict more insured losses than the United States 
                insurance and reinsurance markets could sustain; and
                    (B) to recover after covering substantial insured 
                losses caused by natural catastrophes;
            (16) the impact that demographic trends could have on the 
        amount of insured losses inflicted by future natural 
        catastrophes;
            (17) the appropriate role, if any, for the Federal 
        Government in stabilizing the property and casualty insurance 
        and reinsurance markets; and
            (18) the role of the Federal, State, and local governments 
        in providing incentives for feasible risk mitigation efforts.

SEC. 6. REPORT.

    On December 1, 2008, the Commission shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives a final report 
containing--
            (1) a detailed statement of the findings and assessments 
        conducted by the Commission pursuant to section 5; and
            (2) any recommendations for legislative, regulatory, 
        administrative, or other actions at the Federal, State, or 
        local levels that the Commission considers appropriate, in 
        accordance with the requirements of section 5.

SEC. 7. POWERS OF THE COMMISSION.

    (a) Meetings; Hearings.--The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and receive such 
evidence as the Commission considers necessary to carry out the 
purposes of this Act. Members may attend meetings of the Commission and 
vote in person, via telephone conference, or via video conference.
    (b) Authority of Members or Agents of the Commission.--Any member 
or agent of the Commission may, if authorized by the Commission, take 
any action which the Commission is authorized to take by this Act.
    (c) Obtaining Official Data.--
            (1) Authority.--Notwithstanding any provision of section 
        552a of title 5, United States Code, the Commission may secure 
        directly from any department or agency of the United States any 
        information necessary to enable the Commission to carry out 
        this Act.
            (2) Procedure.--Upon request of the Chairperson, the head 
        of such department or agency shall furnish to the Commission 
        the information requested.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (e) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, any administrative support 
services necessary for the Commission to carry out its responsibilities 
under this Act.
    (f) Acceptance of Gifts.--The Commission may accept, hold, 
administer, and utilize gifts, donations, and bequests of property, 
both real and personal, for the purposes of aiding or facilitating the 
work of the Commission. The Commission shall issue internal guidelines 
governing the receipt of donations of services or property.
    (g) Volunteer Services.--Notwithstanding the provisions of section 
1342 of title 31, United States Code, the Commission may accept and 
utilize the services of volunteers serving without compensation. The 
Commission may reimburse such volunteers for local travel and office 
supplies, and for other travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code.
    (h) Federal Property and Administrative Services Act of 1949.--
Subject to the Federal Property and Administrative Services Act of 
1949, the Commission may enter into contracts with Federal and State 
agencies, private firms, institutions, and individuals for the conduct 
of activities necessary to the discharge of its duties and 
responsibilities.
    (i) Limitation on Contracts.--A contract or other legal agreement 
entered into by the Commission may not extend beyond the date of the 
termination of the Commission.

SEC. 8. COMMISSION PERSONNEL MATTERS.

    (a) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (b) Subcommittees.--The Commission may establish subcommittees and 
appoint members of the Commission to such subcommittees as the 
Commission considers appropriate.
    (c) Staff.--Subject to such policies as the Commission may 
prescribe, the Chairperson may appoint and fix the pay of such 
additional personnel as the Chairperson considers appropriate to carry 
out the duties of the Commission. The Commission shall confirm the 
appointment of the executive director by majority vote of all of the 
members of the Commission.
    (d) Applicability of Certain Civil Service Laws.--Staff of the 
Commission may be--
            (1) appointed without regard to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service; and
            (2) paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates, except that an 
        individual so appointed may not receive pay in excess of the 
        annual rate of basic pay prescribed for GS-15 of the General 
        Schedule under section 5332 of that title.
    (e) Experts and Consultants.--In carrying out its objectives, the 
Commission may procure temporary and intermittent services of 
consultants and experts under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for GS-15 of the General 
Schedule under section 5332 of that title.
    (f) Detail of Government Employees.--Upon request of the 
Chairperson, any Federal Government employee may be detailed to the 
Commission to assist in carrying out the duties of the Commission--
            (1) on a reimbursable basis; and
            (2) such detail shall be without interruption or loss of 
        civil service status or privilege.

SEC. 9. TERMINATION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits its report under section 6.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission, such 
sums as may be necessary to carry out this Act, to remain available 
until expended.

Summary: Commission on Natural Catastrophe Risk Management and Insurance Act of 2007 - Establishes the Commission on Natural Catastrophe Risk Management and Insurance to report to Congress on its findings and assessments regarding the risks posed to the United States by natural catastrophes, and means for mitigating those risks and paying for losses caused by such catastrophes.

Requires the Commission to assess: (1) the condition of the property and casualty insurance and reinsurance markets prior to and in the aftermath of Hurricanes Katrina, Rita, and Wilma in 2005, and the four major hurricanes that struck the United States in 2004; (2) the current condition of, as well as the outlook for, the availability and affordability of insurance in all regions of the country; and (3) the current ability of states, communities, and individuals to mitigate their natural catastrophe risks, including the affordability and feasibility of such activities.

Directs the Commission to report its findings and assessments to certain congressional committees on December 1, 2008.