,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #aaja  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #ab1 #bjac ,mr4  
,sires introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,f9ancial     
,s]vices1 & 9 addition to ! ,committee  
on ,transportation & ,infra/ructure1 = a
 p]iod to be subsequ5tly det]m9$ by !   
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to      
/r5g!n ,am]ica's f9ancial infra/ructure1
 by requir+ pre-fund+ = cata/rophe      
losses us+ private insurance premium    
doll>s to bett] prep>e & protect        
home[n]s f natural cata/rophes & to     
protect taxpay]s f massive bail\ts1 & to
 provide d$icat$ fund+ f insurance      
premiums to improve cata/rophe          
prep>$ness1 loss prev5tion & mitigation1
 & to improve ! availability &          
af=dability ( private m>ket home[n]s    
insurance cov]age = cata/rophic ev5ts1 &
 = o!r purposes4  #a4 ,%ort title &     
table ( cont5ts  7a7 ,%ort title ,?is   

,act may be cit$ z ! ,home[n]s &        
,taxpay]s ,protection ,act ( #bjac4  7b7
 ,table ( cont5ts ,! table ( cont5ts =  
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title & table ( cont5ts4 ,sec4 #b4      
,f9d+s & purpose4 ,sec4 #c4 ,def9itions4
 ,title ,i--,,taxpay] ,,protection1     
,,pre-,,fund$ ,,cata/rophe ,,recov]y1   
,,& ,,m>ket ,,/abilization ,sec4 #aja4  
,national ,commission on ,natural       
,cata/rophe ,prep>ation & ,protection4  
,sec4 #ajb4 ,pre-fund$ & privately      
f9anc$ cata/rophe recov]y program4 ,sec4
 #ajc4 ,po/-cata/rophe m>ket            
/abilization program = liquidity loans4 
,sec4 #ajd4 ,t]m9ation4 ,title          
,,ii--,,cata/rophe ,,read9ess1 ,,citiz5 
,,& ,,community ,,prep>$ness1 ,,&       
,,mitigation ,sec4 #bja4 ,national      
,read9ess1 ,prep>$ness1 & ,mitigation   
,committee4  #b4 ,f9d+s & purpose  7a7  
,f9d+s ,! ,congress f9ds ! foll[+3  7#a7
 ,! economy ( ! ,unit$ ,/ates1 !        
,am]ican taxpay]s1 & all home[n]s ne$ to
 be bett] prep>$ =1 & m protect$ f1     

major natural cata/rophes4  7#b7 ,tak+  
into consid]ation ! curr5t economic &   
fiscal *all5ges fac+ ! ,unit$ ,/ates1 x 
is m important ?an ev] to =tify our     
,nation's f9ancial infra/ructure to be  
fully prep>$ = major natural cata/rophes
 & to mitigate ! risk ( cata/rophe z mu*
 z possible4  7#c7 ,:5 major cata/rophes
 hit1 ! ,f$]al ,gov]nm5t is call$ ^u to 
provide significant fund+ & s]vices to  
support recov]y4  7#d7 ,! co/s (        
po/-cata/rophe ,f$]al bail\ts are borne 
by all taxpay]s & c create a dis9c5tive 
to fully prep>e = cata/rophes4  7#e7    
,hi/orically1 ! budget = ,f$]al         
,gov]nm5t has assum$ !re w be no natural
 cata/rophes1 & ?is lack ( pre-fund+ =  
cata/rophes contribut$ sub/antially to  
annual budget deficits & gr[+ national  
debt4  7#f7 ,! ,budget ,control ,act (  
#bjaa ends an era ( unbudget$ recov]y   
assi/ance & au?orizes a fix$ level (    
annual fund+ = cata/rophes relief4  7#g7
 ,! am\nt ( future cata/rophe relief    
fund+ is capp$ at ! av]age am\nt sp5t on

 natural cata/rophes dur+ ! previ\s #aj 
ye>s ) ! high & l[ ye>s remov$4  7#h7   
,by remov+ ! high & l[ ye>s1 ! law n[   
caps cata/rophes sp5d+ at a level t is  
less ?an #fj p]c5t ( ! am\nt sp5t on    
cata/rophe relief dur+ ! previ\s #aj    
ye>s4  7#i7 ,responsibly manag+         
,gov]nm5t sp5d+ is a top congressional  
priority1 especially 9 light ( !        
unprec$5t$ fiscal *all5ges fac+ !       
,nation4  7#aj7 ,natural cata/rophes w  
cont9ue to occur1 & ! exposure to       
cata/rophe risk is gr[+4 ,sci5ti/s w>n t
 future cata/rophes w inevitably cause  
losses f> 9 excess ( prior ev5ts1 & ^!  
losses c\ld exce$ ! limit$ capacity 9 ! 
private m>ket to cov] claims & rema9    
viable to insure prop]ties aft] massive 
cata/rophic ev5ts4  7#aa7 ,9 #bjaa1 !   
e>?quake c5t]$ 9 ,virg9ia t %ook ! ,ea/ 
,coa/ & ! extreme wea!r & deadly sup]   
tornadoes t ripp$ across ! c\ntry       
provid$ p[]ful rem9d]s t natural        
cata/rophes c /rike unexpect$ly1 sev]ely
 damag+ areas n ?\ght to be at high     

risk1 & no region is immune f ! ?reat ( 
natural cata/rophe4  7#ab7 ,9 #bjab1 !  
deva/ation caus$ by ,sup]/orm ,s&y      
demon/rat$ yet aga9 ! ne$ = a me*anism  
to ensure t privately fund$ monies w be 
available if ne$$ foll[+                
mega-cata/rophes4  7#ac7 ,to            
successfully transition to a m limit$ & 
t>get$ ,f$]al role 9 po/-ev5t cata/rophe
 fund+1 communities mu/ be bett] prep>$ 
= future cata/rophes1 ! risk ( damage   
mu/ be mitigat$1 & individuals mu/ h    
great] access to private m>ket          
protection aga9/ cata/rophe risk4  7#ad7
 ,! private insurance m>ket alone does n
 h suffici5t capacity to effici5tly     
address ! tim+ risk pres5t$ by major    
natural cata/rophes1 & !re is no        
gu>antee t ! level ( capacity t does    
exi/ w cont9ue to be available f "o ye> 
to ! next or t consum]s h ! res\rces to 
adju/ to significant price sw+s 9 ! co/ 
( ! capital = available capacity4  7#ae7
 ,disruptions 9 insurance availability &
 af=dability w cont9ue to h>m economic  

activity 9 ,/ates expos$ to major       
cata/rophes & place significant burd5s  
on resid5ts ( ^! ,/ates4  7#af7         
,consum]s 9 _m areas ar\nd ! c\ntry _c  
f9d home[n]s insurance 9 ! private      
m>ket1 & af=dability & availability     
*all5ges w gr[ dramatically :5 future   
major cata/rophes /rike4  7#ag7         
,hurricane ,katr9a1 ,sup]/orm ,s&y1 &   
o!r rec5t cata/rophes confirm t !       
economic h>m f natural cata/rophes has a
 disproportionate impact ^u ! poor &    
middle class because areas mo/ frequ5tly
 & adv]sely impact$ by cata/rophic      
hurricanes h disproportionately high    
rates ( pov]ty & h\s+ /ock valu$ well   
bel[ ,/ate av]ages4  7#ah7 ,a new       
public-private p>tn]%ip approa* to deal 
m effectively ) major natural           
cata/rophes w\ld m effici5tly lev]age ! 
public sector & e/abli% a limit$1 less  
exp5sive1 m focus$ role = gov]nm5t :ile 
also maximiz+ ! capabilities ( ! private
 sector4  7#ai7 ,a privately fund$      
back/op c provide m protection at l[]   

co/ = consum]s :ile also /r5g!n+        
,am]ica's f9ancial infra/ructure to deal
 ) natural cata/rophes by increas+      
capacity & provid+ m m>ket /ability aft]
 a cata/rophe4  7#bj7 ,co/ sav+s c l[]  
premiums = consum]s & be us$ to enc\rage
 bett] prev5tion & mitigation 9 lieu (  
po/-ev5t bail\ts4  7#ba7 ,a f9ancial    
back/op c be /ructur$ to be fully fund$ 
to protect taxpay]s f bail\ts &         
insurance policyhold]s f subsidies ^u   
:i* ! curr5t sy/em relies4  7#bb7 ,a    
public-private p>tn]%ip model1 ) an     
appropriately /ructur$ back/op1 c       
protect aga9/ ! tim+ risk pres5t$ by    
major natural cata/rophes1 spread risk m
 broadly1 & enable private direct       
insur]s to und]write & price insurance =
 l>ge-scale cata/rophes m effici5tly & )
 less risk ( insolv5cy or f9ancial      
di/ress :ile mak+ insurance m available 
& af=dable = consum]s4  7#bc7 ,a        
public-private p>tn]%ip model c be      
/ructur$ to include & enc\rage          
p>ticipation by private m>ket re9sur]s4 

7#bd7 ,inc5tives & requirem5ts c be     
creat$ to improve prev5tion & mitigation
 measures at ! ,/ate & local levels1    
includ+ /rong build+ codes1 effective   
retr(its = exi/+ homes1 & s5sible l& use
 policies to prohibit fur!r developm5t 9
 environm5tally s5sitive areas t are    
highly expos$ to cata/rophe4  7#be7 ,= !
 majority ( ,am]icans1 _! home is _!    
s+le bigge/ asset & protect+ t inve/m5t 
is important to ! economic heal? (      
millions ( ,am]icans1 to social         
/ability2 & to ! heal? ( ! bank+ sy/em &
 broad] economy4  7#bf7 ,! f9ancial     
crisis ( #bjjh & rec5t fiscal *all5ges  
confirm ! value ( tak+ action 9 advance 
to /r5g!n ,am]ica's f9ancial            
infra/ructure ?r\gh a privately fund$   
back/op r ?an wait+ = a future crisis or
 collapse to take em]g5cy action 9 ! =m 
( bail\ts4  7#bg7 ,x is 9 ! be/ int]e/s 
( ! ,nation to take responsible action  
n[ to beg9 to build a f9ancial back/op t
 w help protect a recov]+ ,am]ican      
economy & mitigate ! economic or        

f9ancial %ock t c\ld result f a major   
cata/rophic ev5t4  7b7 ,purposes ,!     
purposes ( ?is ,act are--  7#a7 to bett]
 prep>e & protect home[n]s & taxpay]s f 
major natural cata/rophe2  7#b7 to      
e/abli% a fully fund$ program =         
cata/rophe losses to /r5g!n ! f9ancial  
infra/ructure ( ! ,unit$ ,/ates2  7#c7  
to protect taxpay]s f bail\ts &         
subsidies relat$ to ! f9anc+ (          
po/-cata/rophe cata/rophe relief2  7#d7 
to develop a public-private p>tn]%ip t  
maximizes & supplem5ts private m>ket    
capacity1 increases ! spread ( risk1 &  
increases m>ket /ability2  7#e7 to r$uce
 ! size ( ,/ate gov]nm5t insurance      
exposure2  7#f7 to make private m>ket   
home[n]s insurance m available &        
af=dable2  7#g7 to improve em]g5cy      
prep>$ness2  7#h7 to enc\rage           
individuals & communities to adopt      
mitigation & prev5tion measures t r$uce 
losses f su* cata/rophes2 &  7#i7 to    
=tify ! ,nation's capacity to assi/ 9 ! 
f9ancial recov]y f major cata/rophes4   

#c4 ,def9itions ,= purposes ( ?is ,act1 
! foll[+ def9itions %all apply3  7#a7   
,actu>ially s\nd ,! t]m actu>ially s\nd 
means1 ) respect to premiums1 t premiums
 are det]m9$ accord+ to pr9ciples (     
actu>ial sci5ce to be adequate1 b n     
excessive1 9 ! aggregate to pay curr5t &
 future obligations1 includ+ ! expect$  
annualiz$ co/ ( all claims1 loss        
adju/m5t exp5ses1 & all adm9i/rative    
co/s4  7#b7 ,cov]$ ev5t ,! t]m cov]$    
ev5t means ! occurr5ce ( "o or m ( !    
ev5ts specifi$ 9 section #ajb7;c7 t     
causes a loss or s]ies ( losses4  7#c7  
,cov]$ /ate ,! t]m cov]$ ,/ates means1 )
 respect to a ,/ate plan1 a ,/ate cov]$ 
by ! plan4  7#d7 ,eligible /ate plan ,! 
t]m eligible ,/ate plan means a ,/ate   
plan or multi-,/ate plan t meets !      
requirem5ts ( section #ajb7;d74  7#e7   
,em]g5cy response provid]s ,! t]m       
em]g5cy response provid]s has ! mean+   
giv5 su* t]m 9 section #b ( ! ,homel&   
,security ,act ( #bjjb 7#f ,u4,s4,c4    
#aja74  7#f7 ,fund ,! t]m ,fund means ! 

,cata/rophe ,prep>$ness ,fund e/abli%$  
"u section #ajb7;g74  7#g7 ,insur$ loss 
,! t]m insur$ loss means any loss &     
associat$ loss adju/m5t exp5se insur$ or
 re9sur$ by an eligible ,/ate plan4     
7#h7 ,liquidity loan ,! t]m liquidity   
loan means a loan to an eligible ,/ate  
plan made "u section #ajc4  7#i7        
,multi-/ate plan ,! t]m multi-,/ate plan
 means a ,/ate plan describ$ 9 p>agraph 
7#ac77;,a77ii7 ( ?is section4  7#aj7    
,qualifi$ entity ,! t]m qualifi$ entity 
means a private m>ket re9sur] or o!r    
private sector entity t has satisfi$ !  
crit]ia e/abli%$ by ! ,secret>y to be   
treat$ z a qualifi$ entity = ! purposes 
( section #ajb7;e74  7#aa7 ,secret>y ,! 
t]m ,secret>y means ! ,secret>y ( !     
,treasury except z specifically provid$ 
o!rwise4  7#ab7 ,/ate ,! t]m ,/ate      
includes ! sev]al ,/ates ( ! ,unit$     
,/ates1 ! ,di/rict ( ,columbia1 !       
,commonweal? ( ,pu]to ,rico1 ,guam1 !   
,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1
 ! ,unit$ ,/ates ,virg9 ,isl&s1 &       

,am]ican ,samoa1 & any o!r t]ritory or  
possession ( ! ,unit$ ,/ates4  7#ac7    
,/ate plan ,! t]m ,/ate plan means a    
plan t--  7,a7 is creat$ or adm9i/]$    
by--  7i7 a s+le ,/ate2 or  7ii7 two or 
m ,/ates2 &  7,b7 provides insurance or 
re9surance protection to address natural
 cata/rophe prep>$ness & protection1 & 9
 ! case ( a plan describ$ 9 subp>agraph 
7,a77ii71 provides su* protection z "p (
 a program cov]+ multiple ,/ates4  ,i   
,,taxpay] ,,protection1 ,,pre-,,fund$   
,,cata/rophe ,,recov]y1 ,,& ,,m>ket     
,,/abilization  #aja4 ,national         
,commission on ,natural ,cata/rophe     
,prep>ation & ,protection  7a7          
,e/abli%m5t ,to effectuate a /rong]     
public-private p>tn]%ip at ! local1     
,/ate1 & national levels reg>d+ natural 
cata/rophe prep>ation & protection1 !   
,secret>y ( ! ,treasury1 9 consultation 
) ! ,secret>y ( ,homel& ,security1 %all 
e/abli% a commission to be kn[n z !     
,national ,commission on ,natural       
,cata/rophe ,prep>ation & ,protection 79

 ?is title ref]r$ to z ! ,commission74  
7b7 ,duties ,! ,commission %all meet = !
 purpose ( advis+ ! ,secret>y reg>d+ !  
e/imat$ loss co/s associat$ ) !         
contracts = re9surance protection made  
available "u ?is title & c>ry+ out !    
functions specifi$ 9 ?is ,act1 includ+--
  7#a7 ! developm5t & implem5tation (   
public education conc]n+ ! risks pos$ by
 natural cata/rophes2  7#b7 ! e/abli%m5t
 ( a rese>* priority = ! developm5t &   
implem5tation ( prev5tion1 mitigation1  
recov]y1 & rebuild+ /rategies1 t bett]  
prep>e & protect ! ,unit$ ,/ates f      
natural cata/rophes2  7#c7 ! e/abli%m5t 
( a process = memb]s ( ! ,commission to 
deploy foll[+ e major cata/rophe to     
inspect & evaluate ! h&l+ ( su*         
cata/rophes2  7#d7 conduct+ cont9u\s    
analysis ( ! effectiv5ess ( ?is ,act &  
recomm5d+ improvem5ts to ! ,congress s t
 ! co/s ( provid+ natural cata/rophe    
protection are decreas$ & s t ! ,unit$  
,/ates is bett] prep>$2 &  7#e7 ensur+ t
 ! programs "u ?is title are op]at$ 9 a 

f9ancially prud5t mann] & on an         
actu>ially s\nd basis consi/5t ) !      
provisions ( ?is title & is n dep5d5t on
 subsidy f taxpay]s or consum]s 9 areas 
t d n reside 9 areas t h a high-risk to 
natural cata/rophe loss1 includ+ by     
monitor+ ! exp5diture ( funds =         
adm9i/rative purposes to promote        
effici5cy & economy 9 ! op]ation &      
adm9i/ration ( ! program & to m9imize ! 
co/ = p>ticipat+ ,/ates4  7c7 ,memb]s ,!
 ,commission %all consi/ ( #ad memb]s1 z
 foll[s3  7#a7 ,homel& security memb] ,!
 ,secret>y ( ,homel& ,security or !     
,secret>y's designee4  7#b7 ,appo9t$    
memb]s #ac memb]s appo9t$ by ! ,secret>y
 ( ! ,treasury1 :o %all consi/ (--  7,a7
 ! ,director ( ! ,f$]al ,insurance      
,(fice ( ! ,dep>tm5t ( ! ,treasury1 or !
 ,director's designee2  7,b7 a memb] ( a
 ,/ate legislature :o c provide !       
p]spective ( ,/ate gov]nm5t2  7,c7 "o   
individual :o is an actu>y2  7,d7 "o    
individual :o is employ$ 9 eng9e]+2     
7,e7 "o individual repres5t+ ! sci5tific

 community2  7,f7 "o individual         
repres5t+ prop]ty & casualty insur]s2   
7,g7 "o individual repres5t+ re9sur]s2  
7,h7 "o individual :o is a memb] or =m] 
memb] ( ! ,national ,association (      
,insurance ,commission]s2  7,i7 two     
individuals :o are consum]s1 includ+ "o 
consum] :o is a home[n] :o resides 9 an 
area ) relatively high exposure to      
natural cata/rophe risk & "o consum] :o 
resides 9 an area ) relatively l[       
exposure to natural cata/rophe risk2    
7,j7 "o individual :o is an em]g5cy     
response exp]t2  7,k7 "o individual )   
exp]tise reg>d+ capital m>kets2 &  7,l7 
"o individual repres5t+ ! resid5tial    
con/ruction community4  7d7 ,treatm5t ( 
non-,f$]al memb]s ,ea* memb] ( !        
,commission :o is n o!rwise employ$ by !
 ,f$]al ,gov]nm5t %all be consid]$ a    
special ,gov]nm5t employee = purposes ( 
sections #bjb & #bjh ( title #ah1 ,unit$
 ,/ates ,code4  7e7 ,exp]ts &           
consultants ,! ,commission may procure  
tempor>y & int]mitt5t s]vices f         

individuals or gr\ps recogniz$ z exp]ts 
9 ! fields ( actu>ial sci5ce1           
meteorology1 seismology1 vulcanology1   
geology1 /ructural eng9e]+1 w9d eng9e]+1
 seismic eng9e]+ & hydrology1 em]g5cy   
response1 & o!r fields1 "u section      
#caji7;b7 ( title #e1 ,unit$ ,/ates     
,code1 b at rates n 9 excess ( ! daily  
equival5t ( ! annual rate ( basic pay   
payable = level ,v ( ! ,executive       
,s*$ule1 = ea* day dur+ :i* ! individual
 procur$ is p]=m+ su* s]vices = !       
,commission4 ,! ,commission may also    
procure1 & ! ,congress enc\rages !      
,commission to procure1 exp]ts f        
univ]sities1 rese>* c5t]s1 f\ndations1 &
 o!r appropriate organizations t c\ld   
/udy1 rese>*1 & develop me?ods &        
me*anisms t c\ld be utiliz$ to /r5g!n   
/ructures to bett] )/& ! ev5ts cov]$ by 
?is ,act4  7f7 ,comp5sation ,ea* memb] (
 ! ,commission :o is n an (fic] or      
employee ( ! ,f$]al ,gov]nm5t %all be   
comp5sat$ at a rate ( basic pay payable 
= level ,v ( ! ,executive ,s*$ule1 = ea*

 day 7includ+ travel "t7 dur+ :i* su*   
memb] is engag$ 9 ! p]=mance ( ! duties 
( ! ,commission4 ,all memb]s ( !        
,commission :o are (fic]s or employees (
 ! ,unit$ ,/ates %all s]ve )\t          
comp5sation 9 addition to t receiv$ = _!
 s]vices z (fic]s or employees ( !      
,unit$ ,/ates4  7g7 ,obta9+ data  7#a7  
,au?ority ,! ,commission & ! ,secret>y  
may solicit loss & exposure data & su*  
o!r in=mation t !y deem necess>y to c>ry
 out _! responsibilities "u ?is ,act f  
eligible ,/ate plans1 o!r gov]nm5tal    
ag5cies1 & bodies & organizations t act 
z /ati/ical ag5ts = ! insurance indu/ry4
 ,! ,commission & ! ,secret>y %all take 
su* actions z are necess>y to ensure t  
confid5tial or propriet>y in=mation is  
disclos$ only to au?oriz$ individuals   
work+ = ! ,commission or ! ,secret>y4   
7#b7 ,confid5tiality  7,a7 ,9 g5]al     
,in=mation obta9$ by ! ,commission & !  
,secret>y pursuant to ?is ,act ) ref]5ce
 to :i* a reque/ = confid5tial treatm5t 
is made by ! p]son furni%+ su*          

in=mation--  7i7 %all be exempt f       
disclosure "u section #eeb ( title #e1  
,unit$ ,/ates ,code2 &  7ii7 %all n be  
publi%$ or disclos$4  7,b7 ,exception   
,subp>agraph 7,a7 %all n apply ) respect
 to ! publication or disclosure ( any   
data aggregat$ 9 a mann] t ensures      
protection ( ! id5tity ( ! p]son furni%+
 su* data4  7h7 ,au?orization (         
appropriations ,!re is au?oriz$ to be   
appropriat$--  7#a7 #aj1jjj1jjj = fiscal
 ye> #bjac = ! initial exp5ses 9        
e/abli%+ ! ,commission & ! initial      
activities ( ! ,commission dur+ su*     
fiscal ye> t _c timely be cov]$ by      
am\nts t are deposit$ 9 ! ,fund pursuant
 to section #ajb7;e77#e77;,d72 &  7#b7 =
 fiscal ye> #bjad & ea* fiscal ye>      
!reaft]1 su* sums z may be necess>y to  
c>ry out ! activities ( ! ,commission   
dur+ ea* su* fiscal ye> t _c timely be  
cov]$ by am\nts t are deposit$ 9 ! ,fund
 pursuant to section #ajb7;e77#e77;,d74 
7i7 ,t]m9ation ,! ,commission %all      
t]m9ate ^u ! date specifi$ 9 section    

#ajd7;c74  #ajb4 ,pre-fund$ & privately 
f9anc$ cata/rophe recov]y program  7a7  
,program au?ority  7#a7 ,9 g5]al ,!     
,secret>y ( ! ,treasury1 9 consultation 
) ! ,secret>y ( ,homel& ,security1 %all 
c>ry out a program "u ?is section t     
utilizes premiums f eligible ,/ate plans
 to provide additional capacity &       
/ability 9 ! home[n]s insurance m>ket & 
improve ! availability & af=dability (  
home[n]s protection cov]age to pre-fund 
future natural cata/rophe recov]y by    
mak+ available = pur*ase1 only by       
eligible ,/ate plans1 contracts =       
re9surance cov]age "u ?is section4  7#b7
 ,purpose ,! program %all make available
 privately fund$ re9surance cov]age "u  
?is section--  7,a7 to div]sify & spread
 risk m effici5tly & lev]age ! economies
 ( pool+ re9surance arrangem5ts f       
diff]5t geographical areas ( ! c\ntry   
cov]+ ! ev5ts specifi$ 9 subsection 7c72
  7,b7 to g5]ate additional capacity &  
provide /ability to ! home[n]s insurance
 m>ket by enc\rag+ ,/ates to develop or 

exp& plans t address curr5t m>ket       
*all5ges & assi/ home[n]s 9 secur+ ne$$ 
protection2  7,c7 to improve !          
availability & af=dability ( home[n]s   
insurance = ! purpose ( privately f9anc+
 po/-cata/rophe recov]y by facilitat+ ! 
pool+ & spread+ ! risk ( cata/rophic    
f9ancial losses f natural cata/rophes2  
7,d7 to improve ! solv5cy1 capacity1 &  
/ability ( home[n]s insurance m>kets1   
supplem5t private m>ket re9surance1 &   
increase ! spread ( risk2  7,e7 to      
enc\rage ! developm5t & implem5tation ( 
mitigation1 prev5tion1 recov]y1 &       
rebuild+ /rategies to r$uce future      
cata/rophe losses2 &  7,f7 to recomm5d  
me?ods to cont9u\sly improve ! way !    
,unit$ ,/ates prep>es =1 reacts to1 &   
responds to cata/rophes1 includ+        
improvem5ts to ! ,cata/rophe ,prep>$ness
 ,fund e/abli%$ "u section #ajb7;g74    
7#c7 ,contract pr9ciples ,"u ! program  
"u ?is section1 ! ,secret>y %all (f]    
re9surance cov]age ?r\gh contracts )    
eligible ,/ate plans1 :i* contracts     

%all--  7,a7 be pric$ on an actu>ially  
s\nd basis z specifi$ 9 ?is section2 &  
7,b7 provide cov]age bas$ solely on     
insur$ losses )9 ! ,/ate or ,/ates      
p>ticipat+ 9 ! eligible ,/ate plan      
pur*as+ ! contract4  7b7 ,qualifi$ l9es 
( cov]age ,ea* contract = re9surance    
cov]age made available "u ?is section   
%all provide cov]age = insur$ prop]ty   
losses cov]$ "u prim>y insurance        
contracts to home[n]s1 mobile home      
own]s1 r5t]s1 & condom9ium own]s = cov]$
 ev5ts4 ,no?+ 9 ?is ,act %all be        
int]pret$ to exp& ! t]ms1 conditions1 or
 scope ( cov]age or ev5ts cov]$ "u      
insurance policies issu$ by insur]s or  
eligible ,/ate plans4  7c7 ,cov]$ ev5ts 
7#a7 ,9 g5]al ,ea* contract = re9surance
 cov]age made available "u ?is section  
%all cov] losses insur$ or re9sur$ by ! 
eligible ,/ate plan pur*as+ ! contract t
 are proximately caus$ by--  7,a7       
e>?quakes2  7,b7 ev5ts ensu+ f          
e>?quakes1 includ+ fire & tsunami-relat$
 flood2  7,c7 cata/rophic wildfires     

unrelat$ to e>?quakes2  7,d7 tropical   
cyclones hav+ maximum su/a9$ w9ds ( at  
lea/ #gd miles p] h\r1 includ+          
hurricanes & typhoons2  7,e7 tornadoes2 
7,f7 volcanic eruptions2  7,g7          
cata/rophic w9t] /orms2 &  7,h7 any o!r 
natural cata/rophe insur$ or re9sur$ "u 
! eligible ,/ate plan pur*as+ !         
contract4  7#b7 ,def9itions ,! ,secret>y
 %all1 by regulation1 def9e ! natural   
cata/rophe ev5ts id5tifi$ "u ?is        
subsection4  7d7 ,eligible /ate plans ,a
 ,/ate plan %all be an eligible ,/ate   
plan = purposes ( ?is section only if ! 
,/ate plan meets all ( ! foll[+         
requirem5ts3  7#a7 ,program design ,!   
entity = ! cov]$ ,/ate or ,/ates t is   
au?oriz$ to make su* det]m9ations       
c]tifies to ! ,secret>y t ! ,/ate plan  
is a program1 e/abli%$ by ! cov]$ ,/ate 
or ,/ates1 t provides--  7,a7 insurance 
cov]age = insur$ prop]ty losses cov]$ "u
 prim>y insurance contracts = resid5tial
 prop]ty locat$ 9 any cov]$ ,/ate2 or   
7,b7 re9surance cov]age t is design$ to 

improve availability or af=dability1 or 
bo?1 9 ! private insurance m>kets t (f]s
 cov]age = insur$ prop]ty losses cov]$  
"u prim>y insurance contracts =         
resid5tial prop]ty locat$ 9 any cov]$   
,/ate4  7#b7 ,op]ation ,! entity = !    
cov]$ ,/ate or ,/ates t is au?oriz$ to  
make su* det]m9ations c]tifies to !     
,secret>y t ! ,/ate plan complies ) !   
foll[+ requirem5ts3  7,a7 ,e/abli%m5t2  
gov]n+ body ,! ,/ate plan %all be       
e/abli%$ by ! cov]$ ,/ate or ,/ates & a 
majority ( ! memb]s ( ! gov]n+ body ( ! 
,/ate plan %all be public (ficials or   
appo9t$ by public (ficials4  7,b7       
,repaym5t ,if any cov]$ ,/ate has at any
 "t appropriat$ am\nts f ! fund ( !     
,/ate plan = any purpose o!r ?an paym5ts
 made 9 connection ) ! activities       
au?oriz$ "u ! ,/ate plan1 ! ,/ate %all h
 repaid su* am\nts to ! ,/ate fund1     
toge!r ) int]e/ on su* am\nts4  7,c7    
,nondiscrim9ation 9 cov]age ,insurance  
or re9surance cov]age1 z applicable1    
provid$ "u ! eligible ,/ate plan %all be

 made available on a nondiscrim9atory   
basis to all qualify+ resid5ts ( any    
cov]$ ,/ate4  7,d7 ,prohibition (       
cross-subsidization ,! ,/ate plan may n1
 except = *>ges or assessm5ts relat$ to 
po/-ev5t f9anc+ or bond+1 involve       
cross-subsidization betwe5 any sep>ate  
prop]ty & casualty l9es cov]$ "u ! plan4
  7,e7 ,re9surance premiums ,9 ! case ( 
,/ate plans provid+ re9surance cov]age1 
! plan or ! law 9 effect 9 ea* cov]$    
,/ate %all require t to ! ext5t t       
re9surance cov]age made available "u !  
program "u ?is section results 9 co/    
sav+s 9 provid+ insurance cov]age =     
risks 9 su* ,/ate1 su* co/ sav+s be     
reflect$ 9 premium rates *>g$ to        
consum]s = su* cov]age4  7,f7 ,t]m9ation
 ,! ,/ate plan %all include provisions t
 au?orize ! entity = ! cov]$ ,/ate or   
,/ates t is au?oriz$ to make su* a      
det]m9ation to t]m9ate ! ,/ate plan or1 
9 ! case ( a multi-,/ate plan1 memb]%ip 
9 su* ,plan1 if su* entity det]m9es t ! 
,/ate plan is no long] necess>y to      

ensure ! availability or af=dability (  
resid5tial prop]ty insurance = all      
resid5ts ( any cov]$ ,/ate4  7,g7       
,actu>ial s\ndness ,! ,/ate plan %all h 
actu>ially s\nd rates4  7#c7 ,treatm5t (
 e>n+s ,! entity = ! cov]$ ,/ate or     
,/ates t is au?oriz$ to make su*        
det]m9ations c]tifies to ! ,secret>y t !
 ,/ate plan does n provide =            
r$i/ribution ( any "p ( any net pr(its  
"u ! ,/ate plan to any insur] t         
p>ticipates 9 ! ,/ate plan4  7#d7       
,support = mitigation & prev5tion  7,a7 
,requirem5ts ,except z provid$ 9        
subp>agraph 7,b71 ! ,secret>y det]m9es  
t1 = any ye> = :i* ! cov]age is 9       
effect1 ! provision ( re9surance cov]age
 "u ! program "u ?is section to ! ,/ate 
plan supports mitigation & prev5tion (  
risk associat$ ) cov]$ ev5ts & t ! ,/ate
 plan meets all ( ! foll[+ requirem5ts3 
7i7 ,build+ codes ,ea* cov]$ ,/ate has 9
 effect1 or appropriate local gov]nm5ts 
)9 ea* cov]$ ,/ate h 9 effect1 & en=ce  
build+ codes & /&>ds t (f] risk         

responsive resi/ance to e>?quakes or    
high w9ds4  7ii7 ,mitigation ,ea* cov]$ 
,/ate has tak5 actions to mitigate      
losses caus$ by natural cata/rophes4    
7iii7 ,prohibition ( price g\g+ ,ea*    
cov]$ ,/ate has 9 effect laws or        
regulations suffici5t to prohibit price 
g\g+1 dur+ ! t]m ( re9surance cov]age   
provid$ "u ! program "u ?is section = ! 
,/ate plan 9 any cata/rophe area locat$ 
)9 ! cov]$ ,/ate4  7iv7 ,home[n]s       
insurance rates ,= any cov]$ ,/ate t has
 9 effect laws t require insur]s provid+
 home[n]s insurance to file _! rates =  
review or regulatory approval1 ! cov]$  
,/ate has confirm$ t home[n]s insurance 
rates associat$ ) cata/rophe cov]age =  
cov]$ ev5ts are actu>ially s\nd4  7v7   
,l& use & zon+ plans ,ea* cov]$ ,/ate1  
to ! ext5t feasible1 %all enc\rage ,/ate
 & local gov]nm5t units to develop1     
compreh5sive l& use & zon+ plans t are  
design$ to limit additional natural     
haz>d exposure & promote natural haz>d  
mitigation4  7vi7 ,em]g5cy prep>$ness   

actions ,ea* cov]$ ,/ate1 9 consultation
 & coop]ation ) localities 9 ! ,/ate1 ! 
,adm9i/rator ( ! ,f$]al ,em]g5cy        
,managem5t ,ag5cy1 & o!r appropriate    
ag5cies & organizations1 %all h tak5    
actions to cont9u\sly improve em]g5cy   
prep>$ness4  7,b7 ,transition p]iod ,to 
provide suffici5t "t = adoption ( !     
provisions ( ?is subsection & to support
 implem5tation ( prev5tion & mitigation 
measures set =? 9 subp>agraph 7,a7 ( ?is
 p>agraph1 dur+ ! #e-ye> p]iod t beg9s  
on ! date ( ! enactm5t ( ?is ,act1 a    
,/ate plan %all n be preclud$ f qualify+
 z an eligible ,/ate plan because !     
,secret>y is unable to make any ( !     
det]m9ations requir$ "u subp>agraph     
7,a74  7e7 ,t]ms ( re9surance contracts 
,ea* contract = re9surance cov]age "u   
?is section %all be subject to ! foll[+ 
t]ms & conditions3  7#a7 ,maturity ,!   
contract %all h a m9imum t]m ( #a ye> or
 su* long] duration z ! ,secret>y may   
det]m9e4  7#b7 ,paym5t condition ,!     
contract %all au?orize claims paym5ts   

only = eligible losses to ! eligible    
,/ate plan pur*as+ ! cov]age4  7#c7     
,reta9$ losses requirem5t ,= ea* cov]$  
ev5t1 ! contract %all n reimburse any   
losses until ! total incurr$ cov]$      
losses exce$s ! applicable atta*m5t po9t
 e/abli%$ pursuant to subsection        
7f77#b74  7#d7 ,multiple ev5ts ,!       
contract %all cov] any eligible losses f
 "o or m cov]$ ev5ts t may occur dur+ ! 
t]m ( ! contract & %all provide t if    
multiple ev5ts occur1 ! reta9$ losses   
requirem5t "u p>agraph 7f7 %all apply 9 
! aggregate & n sep>ately to ea*        
individual ev5t4  7#e7 ,pric+ ,! price (
 re9surance cov]age "u ! contract %all  
be an am\nt e/abli%$ by ! ,secret>y z   
foll[s3  7,a7 ,recomm5dations ,!        
,secret>y %all take into consid]ation ! 
recomm5dations ( ! ,commission 9        
e/abli%+ ! price1 b ! price may n be    
less ?an ! am\nt recomm5d$ by !         
,commission4  7,b7 ,fairness to taxpay]s
 ,! price %all be e/abli%$ at an        
actu>ially s\nd level t protects        

taxpay]s f liability & takes into       
consid]ation models t e/imate losses f  
cov]$ ev5ts4  7,c7 ,self-suffici5cy ,!  
rates = re9surance cov]age = an eligible
 ,/ate plan %all be e/abli%$ at an      
actu>ially s\nd level t produces expect$
 premiums suffici5t to pay--  7i7 !     
expect$ annualiz$ co/ ( all claims2     
7ii7 loss adju/m5t exp5ses2  7iii7 ! co/
 ( fund+ em]g5cy prep>$ness & mitigation
 ef=ts2 &  7iv7 ! co/s ( op]at+ !       
,commission & all adm9i/rative co/s (   
re9surance cov]age (f]$ "u ?is          
subsection4  ,! expect$ annualiz$ co/ ( 
all claims %all be comp>able to am\nts  
be+ includ$ 9 ! price = simil> lay]s (  
cov]age 9 ! private sector1 tak+ into   
acc\nt ! sav+s associat$ ) ! fund+      
me*anisms & ! non-pr(it & tax-exempt    
/atus ( ! ,fund4  7,d7 ,(fset ,!        
,secret>y %all ensure1 to ! maximum     
ext5t practicable1 t 9 ea* fiscal ye> an
 am\nt equal to any am\nt appropriat$   
pursuant to section #aja7;h7 = su*      
fiscal ye> is obta9$ f pur*as]s (       

re9surance cov]age "u ?is section by    
incorporat+ ! co/s describ$ 9           
subp>agraph 7,c77iv7 ( ?is p>agraph into
 ! pric+ ( ! contracts = su* cov]age4   
7#f7 ,taxpay] protection1 rapid ca%     
build-up1 & po/-ev5t pric+ adju/m5ts    
7,a7 ,fir/ #e ye>s ,not)/&+ any o!r     
provision ( ?is section1 dur+ ! fir/    
five ye>s ( ! program "u ?is section1 ! 
,secret>y %all increase ! price t is    
*>g$ = re9surance cov]age provid$ "u !  
program "u ?is section by at lea/ five  
p]c5t1 or su* high] am\nt z ! ,secret>y 
deems1 above ! actu>ially s\nd price    
calculat$ "u p>agraph 7#e71 to          
facilitate & accel]ate ! accumulation ( 
res]ves & to support ! creation ( !     
read9ess1 prep>$ness1 & mitigation grant
 program "u section #bja4  7,b7         
,po/-ev5t ,not)/&+ any o!r provision (  
?is section1 aft] any cov]$ ev5t trigg]+
 any paym5t "u a contract = re9surance  
cov]age t requires ! ,fund to issue     
obligations "u subsection 7g77#d7 to    
make su* paym5t & to provide additional 

taxpay] protection & ensure t ! program 
"u ?is section is fully fund$ on an     
ongo+ basis1 ! ,secret>y %all require ! 
inclusion ( an additional am\nt 9 !     
price t is *>g$ = re9surance cov]age    
provid$ "u ! program equal to at lea/   
five p]c5t ( ! actu>ially s\nd price    
calculat$ "u p>agraph 7#e7 to ensure t !
 program collects all rev5ue necess>y-- 
7i7 to provide ! re9surance cov]age     
au?oriz$ "u ?is section2  7ii7 to       
adm9i/] ! program "u ?is section1 &     
7iii7 to acc\nt = any losses paid )     
funds acquir$ f obligations issu$ "u    
subsection 7g77#d7 dur+ a p]iod hav+ a  
duration n long] ?an five ye>s1 if      
feasible4  ,any su* obligations issu$ "u
 subsection 7g77#d7 %all be repaid 9    
full f ! sur*>ges assess$ "u ?is        
p>agraph4  7#g7 ,in=mation ,! contract  
%all conta9 a condition provid+ t !     
,commission may require ! eligible ,/ate
 plan t is cov]$ "u ! contract to submit
 to ! ,commission all in=mation reg>d+ !
 eligible ,/ate plan relevant to !      

duties ( ! ,commission1 z det]m9$ by !  
,secret>y4  7#h7 ,additional contract   
option ,! contract %all provide t !     
pur*as] ( ! contract may1 dur+ ! t]m (  
su* orig9al contract1 pur*ase additional
 contracts f among ^? (f]$ by !         
,secret>y at ! beg9n+ ( ! t]m1 subject  
to ! limitations "u subsection 7f71 at !
 prices at :i* su* contracts 7 (f]$ at !
 beg9n+ ( ! t]m1 prorat$ bas$ ^u !      
rema9+ t]m z det]m9$ by ! ,secret>y4    
,su* additional contracts %all provide  
cov]age beg9n+ on a date #ae days aft] !
 date ( pur*ase1 b %all n provide       
cov]age = losses = an ev5t t has already
 occurr$4 ,eligible ,/ate plans may     
arrange = prospective contracts = plann+
 purposes & to enhance /ability &       
pr$ictability 9 manag+ risk & acc\nt+ = 
co/s associat$ ) risk transf]4  7#i7    
,o!r t]ms ,! contract %all conta9 su*   
o!r t]ms z ! ,secret>y consid]s necess>y
 to c>ry out ?is ,act & to ensure !     
long-t]m f9ancial integrity ( ! program 
"u ?is section4 ,! contract %all also   

specify h[ pay\ts %all be adm9i/]$ if   
multiple ev5ts occur t affect m ?an "o  
eligible ,/ate plan4  7#aj7 ,enc\ragem5t
 = private sector to p>ticipate  7,a7   
,e/abli%m5t ( competitive proc$ure ,!   
,congress enc\rages private m>ket       
re9sur]s & o!r private sector entities  
to p>ticipate 9 ! program "u ?is        
section4 ,accord+ly1 ! ,secret>y %all   
e/abli%1 by regulation1 a competitive   
proc$ure "u ?is p>agraph t provides     
qualifi$ entities an opportunity1 on a  
basis consi/5t ) ! contract cycle       
e/abli%$ "u ?is section by ! ,secret>y1 
to (f] to provide1 9 lieu ( re9surance  
cov]age "u ?is section1 re9surance      
cov]age t is sub/antially simil> to     
cov]age o!rwise made available "u ?is   
section4  7,b7 ,competitive proc$ure ,"u
 ! proc$ure e/abli%$ "u ?is p>agraph--  
7i7 ! ,secret>y %all e/abli% crit]ia =  
private insur]s1 re9sur]s1 & capital    
m>ket companies1 & consortia ( su*      
entities to be treat$ z qualifi$        
entities = purposes ( ?is p>agraph1 :i* 

crit]ia %all require su* an entity to h 
at all times capital suffici5t to       
satisfy ! t]ms ( ! re9surance contracts 
& %all include su* o!r indu/ry & cr$it  
rat+ /&>ds z ! ,secret>y consid]s       
appropriate2  7ii7 n less ?an #cj days  
be=e ! beg9n+ ( ea* contract cycle dur+ 
:i* any re9surance cov]age "u ?is       
section is to be made available1 !      
,secret>y may reque/ proposals & %all   
publi% 9 ! ,f$]al ,regi/] ! rates & t]ms
 = contracts = cov]age "u ?is section t 
are to be made available dur+ su*       
contract cycle2  7iii7 ! ,secret>y %all 
provide qualifi$ entities a p]iod ( n   
less ?an #aj days 7:i* %all t]m9ate n   
less ?an #bj days be=e ! beg9n+ ( !     
contract cycle7 to submit to ! ,secret>y
 a writt5 expression ( int]e/ 9 provid+ 
re9surance cov]age 9 lieu ( ! cov]age   
o!rwise to be made available "u ?is     
section2  7iv7 ! ,secret>y %all provide 
any qualifi$ entity submitt+ an         
expression ( int]e/ dur+ ! p]iod ref]r$ 
to 9 clause 7iii7 a p]iod ( n less ?an  

#bj days 7:i* %all t]m9ate be=e ! beg9n+
 ( ! contract cycle7 to submit to !     
,secret>y an (f] to provide1 9 lieu ( ! 
re9surance cov]age o!rwise to be made   
available "u ?is section1 cov]age t is  
sub/antially simil> to su* cov]age2  7v7
 if ! ,secret>y det]m9es t an (f]       
submitt$ dur+ ! p]iod ref]r$ to 9 clause
 7iii7 is a bona fide (f] to provide    
re9surance cov]age dur+ ! contract cycle
 at rates & t]ms t are sub/antially     
simil> to ! rates & t]ms = re9surance   
cov]age o!rwise to be provid$ "u ?is    
section by ! ,secret>y1 ! ,secret>y %all
 accept ! (f] 7if /ill out/&+7 &1       
not)/&+ any o!r provision ( ?is ,act1   
provide = su* entity to make re9surance 
cov]age available 9 accordance ) ! (f]2 
&  7vi7 if ! ,secret>y accepts an (f]   
pursuant to clause 7v7 to make          
re9surance cov]age available1 not)/&+   
any o!r provision ( ?is ,act1 !         
,secret>y %all r$uce1 to an equival5t   
ext5t1 ! am\nt ( re9surance cov]age     
available "u ?is section dur+ ! contract

 cycle to :i* ! (f] relates1 unless &   
until ! ,secret>y det]m9es t ! entity is
 n comply+ ) ! t]ms ( ! accept$ (f]4    
7#aa7 ,p>ticipation by multi-/ate plans 
,! ,congress h]eby explicitly enc\rages 
,/ates to create & ma9ta9 cata/rophe    
funds = _! ,/ates or ) o!r ,/ates1 &    
no?+ 9 ?is ,act may be int]pret$ to     
prohibit or disc\rage ! creation (      
multi-,/ate plans1 or ! p>ticipation by 
su* plans 9 ! program e/abli%$ pursuant 
to subsection 7a74 ,! ,secret>y %all1 by
 regulation1 provide = ! application ( !
 provisions ( ?is ,act to multi-,/ate   
cata/rophe insurance & re9surance plans4
 ,! ,commission %all develop a process  
to evaluate & enc\rage ! creation (     
regional programs & approa*es to advance
 ! purposes ( ?is ,act ?r\gh !          
e/abli%m5t ( multi-,/ate plans4  7f7    
,treatm5t ( insur$ losses & maximum     
f$]al liability  7#a7 ,available levels 
( reta9$ losses ,9 mak+ re9surance      
cov]age available "u ?is section1 !     
,secret>y %all make available = pur*ase 

contracts = su* cov]age t require !     
su/a9m5t ( reta9$ losses f cov]$ ev5ts  
7z requir$ "u subsection 7e77#c7 =      
paym5t ( eligible losses7 9 v>i\s       
am\nts1 z ! ,secret>y1 9 consultation ) 
! ,commission1 det]m9es appropriate &   
subject to ! requirem5ts "u p>agraph    
7#b74  7#b7 ,/&>d atta*m5t po9t  7,a7   
,e/abli%m5t ,! ,secret>y1 9 consultation
 ) ! ,commission1 %all e/abli% a /&>d   
atta*m5t po9t at :i* cov]age is provid$ 
to eligible ,/ate plans = all contracts4
  7,b7 ,consid]ations ,9 sett+ a /&>d   
atta*m5t po9t1 ! ,secret>y & !          
,commission %all take into              
consid]ation--  7i7 h[ _m & :i* eligible
 ,/ate plans are seek+ contracts =      
re9surance cov]age "u ?is section2  7ii7
 ! capital & surplus positions ( !      
eligible ,/ate plans2  7iii7 ! cov]age  
pref]5ces ( eligible ,/ate plans2  7iv7 
! availability & price ( re9surance 9 ! 
private m>ket2  7v7 t pool+ re9surance f
 diff]5t geographic locations & cov]+   
diff]5t ev5ts is m effici5t ?an /&-alone

 programs2  7vi7 af=dability ( home[n]s 
insurance2 &  7vii7 o!r factors deem$   
appropriate to op]at+ a long-t]m        
national re9surance back/op program4    
7,c7 ,use ,! /&>d atta*m5t po9t e/abli%$
 pursuant to ?is p>agraph %all be us$ 9 
e/abli%+ re9surance contracts = ea*     
eligible ,/ate plan1 unless ! ,secret>y1
 9 consultation ) ! ,commission1        
det]m9es t m>ket conditions or !        
f9ancial position ( an eligible ,/ate   
plan w>rants a l[] atta*m5t po9t 9 a    
contract = su* eligible ,/ate plan 9 a  
giv5 ye>4  7,d7 ,l[] atta*m5t po9ts ,if 
a re9surance contract is contemplat$ =  
an eligible ,/ate plan hav+ an atta*m5t 
po9t l[] ?an ! /&>d atta*m5t po9t1 ! co/
 ( su* contract %all include or o!rwise 
take into acc\nt ! additional co/s      
associat$ ) su* additional lay] (       
protection4  7#c7 ,m9imum level ( reta9$
 losses ,= ea* cov]$ ev5t1 ! m9imum     
level ( reta9$ losses %all be ! am\nt ( 
ca% available to ! eligible ,/ate plan  
to pay cov]$ losses4  7#d7 ,ceil+       

cov]age level ,not)/&+ any o!r provision
 ( law & subject to any limitations 9   
future appropriations ,acts1 ! aggregate
 pot5tial liability = paym5t ( claims "u
 all contracts = re9surance cov]age sold
 "u ?is title to any s+le eligible ,/ate
 plan dur+ a #ab-mon? p]iod %all n exce$
 ! diff]5ce betwe5--  7,a7 ! am\nt equal
 to ! cov]$ loss project$ to be incurr$ 
once e #fjj ye>s f a s+le ev5t by !     
eligible ,/ate plan2 &  7,b7 ! am\nt    
equal to ! ca% available 9 ! eligible   
,/ate plan to pay cov]$ losses4  7g7    
,cata/rophe prep>$ness fund = pre-,fund+
 prep>$ness & recov]y  7#a7 ,e/abli%m5t 
,!re is e/abli%$ )9 ! ,treasury ( !     
,unit$ ,/ates a fund to be kn[n z !     
,cata/rophe ,prep>$ness ,fund4  7#b7    
,cr$its ,! ,fund %all be cr$it$ )--     
7,a7 am\nts receiv$ f ! sale ( contracts
 = re9surance cov]age "u ?is section2   
7,b7 any am\nts borr[$ "u p>agraph 7#d72
  7,c7 any am\nts e>n$ on inve/m5ts ( ! 
,fund pursuant to p>agraph 7#e72 &  7,d7
 su* o!r am\nts z may be cr$it$ to !    

,fund4  7#c7 ,uses ,am\nts 9 ! ,fund    
%all be available to ! ,secret>y only = 
! foll[+ purposes3  7,a7 ,contract      
paym5ts ,= paym5ts to cov]$ pur*as]s "u 
contracts = re9surance cov]age "u ?is   
section = eligible losses "u su*        
contracts4  7,b7 ,commission co/s ,= !  
op]at+ co/s ( ! ,commission4  7,c7      
,adm9i/rative exp5ses ,= ! adm9i/rative 
exp5ses incurr$ by ! ,secret>y 9 c>ry+  
out ! re9surance program "u ?is ,act4   
7,d7 ,co/ ( national read9ess1          
prep>$ness1 & mitigation committee ,= ! 
op]at+ co/s ( ! ,national ,read9ess1    
,prep>$ness1 & ,mitigation ,committee   
e/abli%$ "u section #bja & =            
disbursem5ts "u section #bja7;f77#b7 =  
cata/rophe read9ess1 prep>$ness1        
prev5tion1 & mitigation4  7,e7          
,t]m9ation ,^u t]m9ation "u section     
#ajd1 z provid$ 9 su* section4  7#d7    
,liquidity  7,a7 ,au?ority ,to ! ext5t t
 ! am\nts 9 ! ,fund are insuffici5t to  
pay claims & exp5ses "u p>agraph 7#c71 !
 ,secret>y may issue su* obligations ( !

 ,fund z may be necess>y to cov] !      
insuffici5cy & %all pur*ase any su*     
obligations issu$4  7,b7 ,public debt   
transaction ,= ! purpose ( pur*as+ any  
su* obligations1 ! ,secret>y may use z a
 public debt transaction ! proce$s f !  
sale ( any securities issu$ "u *apt] #ca
 ( title #ca1 ,unit$ ,/ates ,code1 & !  
purposes = :i* securities are issu$ "u  
su* *apt] are h]eby ext5d$ to include   
any pur*ase by ! ,secret>y ( su*        
obligations "u ?is p>agraph4  7,c7      
,*>act]i/ics ( obligations ,obligations 
issu$ "u ?is p>agraph %all be 9 su* =ms 
& d5om9ations1 be> su* maturities1 be>  
int]e/ at su* rate & be subject to su*  
o!r t]ms & conditions z ! ,secret>y %all
 det]m9e4  7,d7 ,treatm5t ,all          
r$emptions1 pur*ases1 & sales by !      
,secret>y ( obligations "u ?is p>agraph 
%all be treat$ z public debt            
transactions ( ! ,unit$ ,/ates4  7,e7   
,repaym5t ,any obligations issu$ "u ?is 
p>agraph %all be repaid1 includ+ int]e/1
 f ! ,fund & %all be rec\p$ f sur*>ges  

"u subsection 7e77#f77;,b7 on premiums =
 re9surance cov]age provid$ "u ?is      
section4  7#e7 ,inve/m5t ,! ,secret>y   
%all inve/ accumulat$ am\nts 9 ! ,fund z
 ! ,secret>y consid]s advisable 9       
obligations issu$ or gu>ante$ by !      
,unit$ ,/ates4  7#f7 ,prohibition on    
f$]al appropriations ,except = am\nts   
made available pursuant to p>agraph     
7#d77;,a7 ( ?is subsection & section    
#aja7;h71 no ,f$]al funds %all be       
au?oriz$ or appropriat$ = ! ,fund or =  
c>ry+ out ! re9surance liquidity        
protection program "u ?is section4      
#ajc4 ,po/-cata/rophe m>ket /abilization
 program = liquidity loans  7a7         
,purposes ,! purposes ( ?is section are 
to e/abli% a program--  7#a7 to exp$ite 
! paym5t ( claims "u ,/ate cata/rophe   
insurance programs & bett] assi/ !      
f9ancial recov]y f significant natural  
cata/rophes by au?oriz+ ! ,secret>y to  
issue loans = su* purposes2 &  7#b7 to  
promote ! availability ( private capital
 to provide liquidity & capacity to     

,/ate cata/rophe insurance programs & to
 augm5t ! ef=ts ( su* programs4  7b7    
,liquidity loans ,! ,secret>y may make  
liquidity loans "u ?is section to ,/ate 
plans = ! purposes ( ?is section1 & %all
 h ! p[]s & au?orities necess>y to make 
su* loans1 subject to ! requirem5ts (   
?is section4  7c7 ,conditions = loan    
eligibility ,a loan "u ?is section may  
be made to a ,/ate plan only if--  7#a7 
! plan has a capital liquidity %ortage1 
9 accordance ) regulations t ! ,secret>y
 %all e/abli%1 su* t ! obligations ( !  
plan result+ f a cov]$ ev5t exce$ !     
am\nt ( ca% available to ! plan to pay  
cov]$ losses2  7#b7 ! plan _c access    
capital 9 ! private m>ket at a co/ l[] &
 = simil> duration ?an t provid$ "u a   
loan "u ?is section1 z det]m9$ by !     
,secret>y2 &  7#c7 7,a7 ! plan is an    
eligible ,/ate plan2 &  7,b7 ! loan     
complies ) ! requirem5ts "u subsection  
7e74  ,! ,secret>y may n require an     
eligible ,/ate plan to pur*ase          
re9surance cov]age made available "u !  

program "u section #ajb to be eligible =
 a liquidity loan "u ?is section4  7d7  
,/ates ) eligible /ate plans  7#a7      
,contracts ,! ,secret>y may ent] into   
contracts ) eligible ,/ate plans to c>ry
 out ! purposes ( ?is section by provid+
 = liquidity loans = su* plans1 z !     
,secret>y may deem appropriate4  7#b7   
,eligible /ate plan pre-c]tification ,! 
,secret>y %all e/abli% proc$ures & /&>ds
 = ,/ate plans to apply to ! ,secret>y  
at any "t = pre-c]tification 7&         
rec]tification7 z eligible ,/ate plans1 
:i* proc$ures & /&>ds %all provide z    
foll[s3  7,a7 ,! ,secret>y %all adm9i/] 
! pre-c]tification 7& rec]tification7 ( 
,/ate plans z eligible ,/ate plans4     
7,b7 ,/ate plans t are pre-c]tifi$ z    
eligible ,/ate plans may ent] into      
contracts describ$ 9 p>agraph 7#a74     
7#c7 ,int]e/ rate ,subject to subsection
 7h71 a liquidity loan made "u ?is      
section to an eligible ,/ate plan %all  
be> int]e/ at an annual rate to be      
e/abli%$ by ! ,secret>y1 9 consultation 

) ! ,commission1 :i* %all be equal to ! 
rate ( int]e/ on ,/ate & local gov]nm5t 
s]ies securities h ! same duration z !  
liquidity loan out/&+ z ( ! date ! loan 
is made4  7#d7 ,m&atory assi/ance =     
eligible /ate plans ,! ,secret>y %all1  
^u ! reque/ ( an eligible ,/ate plan &  
subject to p>agraphs 7#a7 & 7#b7 (      
subsection 7c71 make a loan = su* plan 9
 ! am\nt reque/$ by su* plan 7subject to
 ! limitations "u subsection 7f774  7e7 
,/ates )\t eligible /ate plans  7#a7    
,au?ority ,subject to subsection 7c71 ! 
,secret>y may make a liquidity loan "u  
?is section to a ,/ate plan t is n an   
eligible ,/ate plan1 b only if !        
,secret>y det]m9es t--  7,a7 ! loan is  
necess>y to avoid a capital %ortfall2 & 
7,b7 ! provisions provid+ = repaym5t ( !
 loan are comp>able 9 provid+ protection
 to taxpay]s z provisions provid+ =     
repaym5t ( liquidity loans "u ?is       
section by eligible ,/ate plans4  7#b7  
,int]e/ rate ,subject to subsection 7h71
 a liquidity loan made "u ?is section to

 a ,/ate plan t is n an eligible ,/ate  
plan %all be> int]e/ at an annual rate t
 exce$s ! rate requir$ "u subsection    
7d77#c7 = a loan made to an eligible    
,/ate plan4 ,su* rate %all be det]m9$ 9 
accordance ) a s*$ule ( int]e/ rates1   
:i* %all be e/abli%$ by ! ,secret>y &   
%all provide l[] rates = loans to ,/ate 
plans t comply ) m ( ! requirem5ts =    
eligible ,/ate plans "u section #ajb7;d7
 & high] rates = loans to ,/ate plans t 
comply ) few] ( su* requirem5ts4  7f7   
,am\nt ,! pr9cipal am\nt ( a liquidity  
loan "u ?is subsection may n exce$ !    
diff]5ce betwe5 ! applicable atta*m5t   
po9t z det]m9$ by ! ,secret>y 9 section 
#ajb7;f77#b7 & ! am\nt ( funds !        
eligible ,/ate plan _h to pay losses at 
! "t ( ! cov]$ ev5t = :i* ! loan is     
made4  7g7 ,use ,am\nts f a liquidity   
loan "u ?is section may be us$ only to  
pay losses cov]$ by ! ,/ate plan to :i* 
! loan is made4  7h7 ,exception to      
int]e/ rate limitation ,9 ! case (      
liquidity loan "u ?is section made      

pursuant to a l>ge cov]$ ev5t t occurs  
e>ly 9 ! exi/5ce ( a ,/ate plan1 !      
,secret>y may *>ge an int]e/ rate = !   
loan t all[s ! ,/ate plan to repay !    
loan & int]e/ )\t caus+ significant     
increases 9 ! co/ ( insurance = cov]$   
ev5ts 9 ! cov]$ ,/ate or ,/ates4  7i7   
,premiums "u /ate plan  7#a7            
,det]m9ation ( actu>ially s\nd premiums 
,9 mak+ a reque/ = a liquidity loan "u  
?is section1 a ,/ate plan %all det]m9e1 
& ! ,secret>y1 9 consultation ) !       
,commission1 %all approve1 a premium    
am\nt = ! cov]age lay] "u ! ,/ate plan =
 :i* ! liquidity loan is s\ght t is     
actu>ially s\nd4  7#b7 ,*>geable        
premiums ,unless o!rwise provid$ by !   
,secret>y1 a ,/ate plan %all *>ge1 = !  
cov]age lay] "u ! ,/ate plan = :i* !    
liquidity loan is made an annual        
premium1 = cov]age dur+ ! p]iod t beg9s 
^u ! mak+ ( ! liquidity loan & ends ^u  
full repaym5t ( ! loan1 9 an am\nt t is 
n less ?an #aej p]c5t ( ! actu>ially    
s\nd premium det]m9$ pursuant to        

p>agraph 7#a74  7j7 ,repaym5t ( loans   
7#a7 ,9 g5]al ,any liquidity loan made  
"u ?is section to a ,/ate plan %all be  
repaid solely ?r\gh premiums *>g$ by su*
 plan 9 accordance ) subsection 7i77#b71
 unless alt]native arrangem5ts h be5    
made pursuant to p>agraph 7#c74 ,!      
,secret>y1 9 consultation ) !           
,commission1 %all det]m9e ! expect$     
duration ( ea* loan & monitor repaym5t (
 su* loans4  7#b7 ,am\nt ( paym5t ,to   
repay a liquidity loan "u ?is section1 !
 ,/ate plan %all pay to ! ,fund1 f all  
am\nts collect$ = ! cov]age lay] ref]r$ 
to 9 subsection 7i77#b7 dur+ ! p]iod    
ref]r$ to 9 su* subsection1 an am\nt    
equal to a m9imum ( #ajj p]c5t ( !      
actu>ially s\nd premium det]m9$ "u      
subsection 7j77#a7 = su* cov]age lay]1 &
 %all reta9 ! rema9d] ( su* am\nt       
collect$ to build res]ves = future      
ev5ts1 or su* o!r am\nt or p]c5tage (   
su* am\nts z ! ,secret>y1 9 consultation
 ) ! ,commission & ,/ate plans1 det]m9es
 is appropriate4  7#c7 ,o!r options ,a  

,/ate plan may petition ! ,secret>y =   
o!r repaym5t t]ms1 includ+ repaym5t f   
s\rces su* z d$icat$ ,/ate sales taxes  
or o!r means1 & ! ,secret>y may1 9      
consultation ) ! ,commission1 agree to  
su* o!r t]ms4  7k7 ,regulations ,!      
,secret>y %all issue any regulations    
necess>y to c>ry out ! program "u ?is   
section4  #ajd4 ,t]m9ation  7a7 ,9 g5]al
 ,except z provid$ 9 subsection 7b71 !  
,secret>y may n--  7#a7 provide any new 
re9surance cov]age "u section #ajb t    
cov]s any p]iod aft] ! expiration ( !   
#bj-ye> p]iod beg9n+ on ! date ( !      
enactm5t ( ?is ,act2 or  7#b7 make any  
new liquidity loan "u section #ajc hav+ 
a t]m to maturity t concludes aft] !    
expiration ( su* #bj-ye> p]iod4  7b7    
,ext5sion ,if ^u ! expiration ( ! p]iod 
"u subsection 7a7 ! ,secret>y1 9        
consultation ) ! ,commission1 det]m9es t
 cont9uation ( ! program = re9surance   
cov]age "u section #ajb or = liquidity  
loans "u section #ajc is necess>y or    
appropriate to c>ry out ! purposes ?is  

,act because ( insuffici5t gr[? (       
capacity 9 ! private home[n]s insurance 
m>ket1 ! ,secret>y %all cont9ue to make 
su* cov]age & loans available &         
subsection 7a7 %all be appli$ by        
sub/itut+ #be-ye> p]iod = #bj-ye> p]iod 
ea* place su* t]m appe>s4  7c7 ,repeal  
,effective ^u ! fir/ date t re9surance  
cov]age "u section #ajb is no long]     
available or 9 =ce & t liquidity loans  
"u section #ajc are no long] available  
or out/&+1 pursuant to subsection 7a7 or
 7b71 ?is ,act 7except = ?is section7 is
 repeal$4  7d7 ,deficit r$uction ,!     
,secret>y %all pay into ! ,g5]al ,fund (
 ! ,treasury any am\nts rema9+ 9 ! ,fund
 ^u ! repeal ( ?is ,act "u subsection   
7c74  ,,ii ,,cata/rophe ,,read9ess1     
,,citiz5 ,,& ,,community ,,prep>$ness1  
,,& ,,mitigation  #bja4 ,national       
,read9ess1 ,prep>$ness1 & ,mitigation   
,committee  7a7 ,e/abli%m5t ,!re is     
e/abli%$ a ,national ,read9ess1         
,prep>$ness & ,mitigation ,committee 79 
?is section ref]r$ to z ! ,committee74  

7b7 ,memb]s ,! ,committee %all consi/ ( 
#i memb]s appo9t$ by ! ,secret>y ( ,h\s+
 & ,urban ,developm5t or ! ,secret>y's  
designee1 z foll[s3  7#a7 ,?ree         
individuals f nationally recogniz$      
organizations repres5t+ ,/ate or local  
cata/rophe response provid]s or         
cata/rophe managem5t pr(essionals4  7#b7
 ,?ree individuals repres5t+ nationally 
recogniz$ non-pr(its active 9 cata/rophe
 prep>$ness & response4  7#c7 ,?ree     
individuals repres5t+ nationally        
recogniz$ organizations ) exp]tise 9    
cont+5cy plann+1 resid5tial con/ruction1
 build+ code developm5t & implem5tation1
 & l& use policy4  7c7 ,t]ms  7#a7 ,9   
g5]al ,except z provid$ 9 p>agraphs 7#b7
 & 7#c71 ea* memb] ( ! ,committee %all  
be appo9t$ = a t]m ( #c ye>s4  7#b7     
,initial memb]s ,( ! memb]s initially   
appo9t$ to ! ,committee--  7,a7 "o memb]
 appo9t$ "u ea* ( p>agraphs 7#a71 7#b71 
& 7#c7 ( subsection 7b7 %all be appo9t$ 
= a t]m ( #a ye>2  7,b7 "o memb] appo9t$
 "u ea* ( p>agraphs 7#a71 7#b71 & 7#c7 (

 subsection 7b7 %all be appo9t$ = a t]m 
( #b ye>s2 &  7,c7 "o memb] appo9t$ "u  
ea* ( p>agraphs 7#a71 7#b71 & 7#c7 (    
subsection 7b7 %all be appo9t$ = a t]m (
 #c ye>s4  7#c7 ,vacancies ,a memb]     
appo9t$ to fill an unexpir$ t]m %all    
s]ve ! rema9d] ( t t]m4  7#d7 ,t]m9ation
 ,9 ! ev5t t ! ,committee t]m9ates1 all 
appo9tm5ts %all t]m9ate4  7d7           
,prohibition ( comp5sation2 reimbursem5t
 ,memb]s ( ! ,committee %all receive no 
comp5sation by reason ( _! s]vice on !  
,committee1 b %all be reimburs$ z       
provid$ by rules & by-laws e/abli%$ by !
 ,national ,commission on ,natural      
,cata/rophe ,prep>ation & ,protection   
e/abli%$ "u section #aja4  7e7 ,duties  
,! memb]s ( ! ,committee %all adm9i/] ! 
program "u subsection 7f7 & conduct     
ov]sight ( ! program & activities "u su*
 program4  7f7 ,read9ess1 prep>$ness1 & 
mitigation grant program  7#a7          
,allocation ( am\nt ,beg9n+ ^u !        
expiration ( ! #ab-mon? p]iod t beg9s on
 ! date ( ! enactm5t ( ?is ,act1 !      

,secret>y %all ensure t1 to ! ext5t     
provid$ 9 appropriation ,acts1          
approximately #ce p]c5t ( ! annual net  
inve/m5t income ( ! ,fund "u sec4       
#ajb7;g71 b n less ?an #ae1jjj1jjj1 & n 
m ?an #bj p]c5t ( ! premium *>g$ =      
re9surance cov]age "u section #ajb 9 any
 giv5 ye>1 %all be us$ = grants to      
,/ates1 units ( local gov]nm5t1 nonpr(it
 organizations1 & o!r appropriate public
 & private entities to develop1 enhance1
 or ma9ta9 programs & initiatives to    
improve & ma9ta9 cata/rophe response1   
citiz5 prep>$ness & protection1 &       
prev5tion & mitigation ( losses f       
natural cata/rophes4  7#b7 ,program     
elem5ts ,! am\nts made available "u     
p>agraph 7#a7 %all be allocat$ = ea* ( !
 foll[+ purposes 9 equal am\nts3  7,a7  
,cata/rophe response read9ess ,=        
cata/rophe response read9ess programs1  
:i* %all include national initiatives t 
develop1 enhance1 or ma9ta9 ! capacity (
 a public safety ag5cy or o!r           
organization to be bett] prep>$1        

equipp$1 & tra9$ to respond to natural  
cata/rophes4  7,b7 ,citiz5 & community  
prep>$ness ,= citiz5 & community        
prep>$ness1 :i* %all include programs & 
initiatives1 su* z ^? (f]$ by ! ,am]ican
 ,r$ ,cross1 to improve education &     
tra9+ to ensure t citiz5s &             
organizations 9 _! community are bett]  
prep>$ = natural cata/rophes4  7,c7     
,prev5tion & mitigation ,= prev5tion &  
mitigation ( loss f natural cata/rophes1
 :i* %all include me?ods to r$uce loss (
 life & prop]ty1 includ+ appropriate    
measures to--  7i7 enc\rage aw>5ess ( ! 
risk factors & :at /eps c be tak5 to    
elim9ate or r$uce !m2  7ii7 id5tify     
location ( risks1 by giv+ c>eful        
consid]ation to ! natural risks = !     
location ( ! prop]ty & provid+ t        
in=mation to ! build]1 develop] &       
home[n]2 &  7iii7 provide = con/ruction 
relative to ! risk & haz>ds1 includ+--  
7,i7 e/abli%m5t & adoption ( ,/ate1 or  
locally m&at$ build+ codes1 z am5d$ by !
 gov]n+ body2  7,,ii7 adequate en=cem5t 

( ! build+ codes2 &  7,,iii7 focus+ on  
prev5tion & mitigation = exi/+ homes1 ) 
an emphasis on h[ /ructures c be        
retr(itt$ co/-effectively to make !m    
compliant ) build+ codes4  7g7 ,cont9u\s
 improvem5t1 coord9ation & integration  
,! ,national ,commission on ,natural    
,cata/rophe ,prep>ation & ,protection   
e/abli%$ "u section #aja %all "w )      
eligible ,/ate plans & ! ,committee to  
cont9u\sly improve1 coord9ate1 &        
integrate cata/rophe read9ess1 citiz5 & 
community prep>$ness1 & loss prev5tion &
 mitigation at ! local1 ,/ate1 regional1
 & national levels4