,i #aacth ,,congress #ast ,session ,h4 ,r4 #gcg ,,in ,,the ,,house ,,of ,,representatives ,february #ad1 #bjac ,ms4 ,wilson of ,florida 7for herself and ,ms4 ,brown of ,florida7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to establish a national catastrophic risk consortium to ensure the availability and affordability of homeowners' insurance coverage for catastrophic events4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,homeowners' ,defense ,act of #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings and purposes4 ,sec4 #c4 ,establishment2 status2 principal office2 membership4 ,sec4 #d4 ,functions4 ,sec4 #e4 ,powers4 ,sec4 #f4 ,nonprofit entity2 conflicts of interest2 audits4 ,sec4 #g4 ,management4 ,sec4 #h4 ,staff2 experts and consultants4 ,sec4 #i4 ,federal liability4 ,sec4 #aj4 ,authorization of appropriations4 #b4 ,findings and purposes 7a7 ,findings ,the ,congress finds that-- 7#a7 the ,united ,states has a history of catastrophic natural disasters1 including hurricanes1 tornadoes1 flood1 fire1 earthquakes1 and volcanic eruptions2 7#b7 although catastrophic natural disasters occur infrequently1 they will continue to occur and are predictable2 7#c7 such disasters generate large economic losses and a major component of those losses comes from damage and destruction to homes2 7#d7 for the majority of ,americans1 their investment in their home represents their single biggest asset and the protection of that investment is paramount to economic and social stability2 7#e7 the ,united ,states needs to take and support ,state actions to be better prepared for and better protected from catastrophes2 7#f7 as the risk of catastrophic losses grows1 so do the risks that any premiums collected by private insurers for extending coverage will be insufficient to cover future catastrophes1 and private insurers1 in an effort to protect their shareholders and policyholders 7in the case of mutually owned companies71 have thus significantly raised premiums and curtailed insurance coverage in ,states exposed to major catastrophes2 7#g7 such effects on the insurance industry have been harmful to economic activity in ,states exposed to major catastrophes and have placed significant burdens on residents of such ,states2 7#h7 ,hurricanes ,katrina1 ,rita1 and ,wilma struck the ,united ,states in #bjje1 causing over #bjj1jjj1jjj1jjj in total economic losses1 and insured losses to homeowners in excess of #ej1jjj1jjj1jjj2 7#i7 while the total costs of ,hurricane ,sandy have not yet been calculated1 ,fitch ,ratings1 a global credit ratings agency1 has estimated that insured losses will amount to between #bj1jjj1jjj1jjj and #be1jjj1jjj1jjj2 7#aj7 the ,federal ,government has provided and will continue to provide resources to pay for losses from future catastrophes2 and 7#aa7 it is the proper role of the ,federal ,government to prepare for and protect its citizens from catastrophes and to facilitate consumer protection1 victim assistance1 and recovery1 including financial recovery4 7b7 ,purposes ,the purpose of this ,act is to establish a national catastrophic risk consortium to ensure the availability and affordability of homeowners' insurance coverage for catastrophic events4 #c4 ,establishment2 status2 principal office2 membership 7a7 ,establishment ,there is established an entity to be known as the ,national ,catastrophe ,risk ,consortium 7in this ,act referred to as the ,consortium74 7b7 ,status ,the ,consortium is not a department1 agency1 or instrumentality of the ,united ,states ,government4 7c7 ,principal office ,the principal office and place of business of the ,consortium shall be such location within the ,united ,states determined by the ,board of ,directors to be the most advantageous for carrying out the purpose and functions of the ,consortium4 7d7 ,membership ,any ,state that has established a reinsurance fund or has authorized the operation of a ,state residual insurance market entity1 or ,state-sponsored provider of natural catastrophe insurance1 shall be eligible to participate in the ,consortium4 #d4 ,functions ,the ,consortium shall-- 7#a7 work with all ,states1 particularly those participating in the ,consortium1 to gather and maintain an inventory of catastrophe risk obligations held by ,state reinsurance funds1 ,state residual insurance market entities1 and ,state-sponsored providers of natural catastrophe insurance2 7#b7 at the discretion of the affected members and on a conduit basis1 issue securities and other financial instruments linked to the catastrophe risks insured or reinsured through members of the ,consortium in the capital markets2 7#c7 coordinate reinsurance contracts between participating1 qualified reinsurance funds and private parties2 7#d7 act as a centralized repository of ,state risk information that can be accessed by private-market participants seeking to participate in the transactions described in paragraphs 7#b7 and 7#c7 of this section2 7#e7 establish a catastrophe risk database to perform research and analysis that encourages standardization of the risk-linked securities market2 7#f7 perform any other functions1 other than assuming risk or incurring debt1 that are deemed necessary to aid in the transfer of catastrophe risk from participating ,states to private parties2 and 7#g7 submit annual reports to ,congress describing the activities of the ,consortium for the preceding year1 and the first such annual report shall include an assessment of the costs to ,states and regions associated with catastrophe risk and an analysis of the costs and benefits1 for ,states not participating in the ,consortium1 of such nonparticipation4 #e4 ,powers ,the ,consortium-- 7#a7 may make and perform such contracts and other agreements with any individual or other private or public entity however designated and wherever situated1 as may be necessary for carrying out the functions of the ,consortium2 and 7#b7 shall have such other powers1 other than the power to assume risk or incur debt1 as may be necessary and incident to carrying out this ,act4 #f4 ,nonprofit entity2 conflicts of interest2 audits 7a7 ,nonprofit entity ,the ,consortium shall be a nonprofit entity and no part of the net earnings of the ,consortium shall inure to the benefit of any member1 founder1 contributor1 or individual4 7b7 ,conflicts of interest ,no director1 officer1 or employee of the ,consortium shall in any manner1 directly or indirectly1 participate in the deliberation upon or the determination of any question affecting his or her personal interests or the interests of any ,consortium1 partnership1 or organization in which he or she is directly or indirectly interested4 7c7 ,audits 7#a7 ,annual audit ,the financial statements of the ,consortium shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants4 7#b7 ,reports ,the report of each annual audit pursuant to paragraph 7#a7 shall be included in the annual report submitted in accordance with section #d7g74 7d7 ,prohibition on election and lobbying activities 7#a7 ,federal ,the ,consortium may not-- 7,a7 make any contribution to a candidate for election for ,federal office or to a political committee2 7,b7 employ or retain-- 7i7 a registered lobbyist under the ,lobbying ,disclosure ,act of #aiie 7#b ,u4,s4,c4 #afja et seq472 or 7ii7 an organization that employs one or more lobbyists and is registered under section #d7;a77#b7 of such ,act 7#b ,u4,s4,c4 #afjc7;a77#b772 or 7,c7 provide any thing of value1 other than educational materials or information1 to any elected official of the ,federal ,government4 ,for purposes of this paragraph1 the terms contribution1 candidate1 ,federal office1 and political committee have the meanings given such terms in section #cja of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dca74 7#b7 ,consortium ,the ,consortium may not-- 7,a7 make any contribution to a candidate for election for any ,state or local office or to any committee1 club1 association1 or other group that receives contributions or makes expenditures for the purpose of influencing any such election2 7,b7 employ or retain any person who engages in influencing legislating 7as such term is defined in section #diaa7;d7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #diaa7;d777 of any ,state or local legislative body2 or 7,c7 provide any thing of value1 other than educational materials or information1 to any elected official of any ,state or local government4 #g4 ,management 7a7 ,board of directors2 membership2 designation of chairperson 7#a7 ,board of directors ,the management of the ,consortium shall be vested in a board of directors 7referred to in this ,act as the ,board7 composed of not less than #c members4 7#b7 ,chairperson ,the ,secretary of the ,treasury1 or the designee of the ,secretary1 shall serve as the chairperson of the ,board4 7#c7 ,membership ,the members of the ,board shall include-- 7,a7 the ,secretary of ,homeland ,security and the ,secretary of ,commerce1 or the designees of such ,secretaries1 respectively1 but only during such times as there are fewer than two ,states participating in the ,consortium2 and 7,b7 a member from each ,state participating in the ,consortium1 who shall be appointed by such ,state4 7b7 ,bylaws ,the ,board may prescribe1 amend1 and repeal such bylaws as may be necessary for carrying out the functions of the ,consortium4 7c7 ,compensation1 actual1 necessary1 and transportation expenses 7#a7 ,non-,federal employees ,a member of the ,board who is not otherwise employed by the ,federal ,government shall be entitled to receive the daily equivalent of the annual rate of basic pay payable for level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code1 as in effect from time to time1 for each day 7including travel time7 during which such member is engaged in the actual performance of duties of the ,consortium4 7#b7 ,federal employees ,a member of the ,board who is an officer or employee of the ,federal ,government shall serve without additional pay 7or benefits in the nature of compensation7 for service as a member of the ,consortium4 7#c7 ,travel expenses ,members of the ,consortium shall be entitled to receive travel expenses1 including per diem in lieu of subsistence1 equivalent to those set forth in subchapter ,i of chapter #eg of title #e1 ,united ,states ,code4 7d7 ,quorum ,a majority of the ,board shall constitute a quorum4 7e7 ,executive director ,the ,board shall appoint an executive director of the ,consortium on such terms as the ,board may determine4 #h4 ,staff2 experts and consultants 7a7 ,staff 7#a7 ,appointment ,the ,board of the ,consortium may appoint and terminate such other staff as are necessary to enable the ,consortium to perform its duties4 7#b7 ,compensation ,the ,board of the ,consortium may fix the compensation of the executive director and other staff4 7b7 ,experts and consultants ,the ,board shall procure the services of experts and consultants as the ,board considers appropriate4 #i4 ,federal liability ,the ,federal ,government and the ,consortium shall not bear any liabilities arising from the actions of the ,consortium4 ,participating ,states shall retain all catastrophe risk until the completion of a transaction described in paragraphs 7#b7 and 7#c7 of section #d4 #aj4 ,authorization of appropriations ,there are authorized to be appropriated to carry out this ,act #bj1jjj1jjj for each of fiscal years #bjad through #bjah4