,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #dga  ,,in ,,the ,,house ,,of   
,,representatives  ,january #aj1        
#bjai,mr4 ,luetkemeyer introduced the   
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to provide for greater      
transfer of risk under the ,national    
,flood ,insurance ,program to private   
capital and reinsurance markets1 and for
 other purposes4  #a4 ,short title ,this
 ,act may be cited as the ,taxpayer     
,exposure ,mitigation ,act4  #b4 ,risk  
transfer requirement ,subsection 7e7 of 
section #acde of the ,national ,flood   
,insurance ,act of #aifh 7#db ,u4,s4,c4 
#djha7;e77 is amended--  7#a7 by        
striking 7e7 ,risk transfer4--,the      
,administrator and inserting the        
following3  7e7 ,risk transfer  7#a7    
,authority ,the ,administrator  2 and   
7#b7 by adding at the end the following 
new paragraph3  7#b7 ,required risk     
transfer coverage  7,a7 ,requirement    
,not later than the expiration of the   

#ah-month period beginning upon the date
 of the enactment of this paragraph and 
at all times thereafter1 the            
,administrator shall annually cede a    
portion of the risk of the flood        
insurance program under this title to   
the private reinsurance or capital      
markets1 or any combination thereof1 and
 at rates and terms that the            
,administrator determines to be         
reasonable and appropriate1 in an amount
 that--  7i7 is sufficient to maintain  
the ability of the program to pay       
claims2 and  7ii7 manages and limits the
 annual exposure of the flood insurance 
program to flood losses in accordance   
with the probable maximum loss target   
established for such year under         
subparagraph 7,b74  7,b7 ,probable      
maximum loss target ,the ,administrator 
shall for each fiscal year1 establish a 
probable maximum loss target for the    
national flood insurance program that   
shall be the maximum probable loss under
 the national flood insurance program   

that is expected to occur in such fiscal
 year4  7,c7 ,considerations ,in        
establishing the probable maximum loss  
target under subparagraph 7,b7 for each 
fiscal year and carrying out            
subparagraph 7,a71 the ,administrator   
shall consider--  7i7 the probable      
maximum loss targets for other ,united  
,states public natural catastrophe      
insurance programs1 including as ,state 
wind pools and earthquake programs2     
7ii7 the probable maximum loss targets  
of other risk management organizations1 
including the ,federal ,national        
,mortgage ,association and the ,federal 
,home ,loan ,mortgage ,corporation2     
7iii7 catastrophic1 actuarial1 and other
 appropriate data modeling results of   
the national flood insurance program    
portfolio2  7iv7 the availability of    
funds in the ,national ,flood ,insurance
 ,fund established under section #acaj  
7#db ,u4,s4,c4 #djag72  7v7 the         
availability of funds in the ,national  
,flood ,insurance ,reserve ,fund        

established under section #acaj;,a 7#db 
,u4,s4,c4 #djag;a72  7vi7 the           
availability of borrowing authority     
under section #acji 7#db ,u4,s4,c4      
#djaf72  7vii7 the ability of the       
,administrator to repay outstanding     
debt2  7viii7 amounts appropriated to   
the ,administrator to carry out the     
national flood insurance program2  7ix7 
reinsurance1 capital markets1           
catastrophe bonds1 collateralized       
reinsurance1 resilience bonds1 and other
 insurance-linked securities1 and other 
risk transfer opportunities2 and  7x7   
any other factor the ,administrator     
determines appropriate4  7,d7           
,multi-year contracts ,nothing in this  
paragraph may be construed to prevent or
 prohibit the ,administrator from       
complying with the requirement under    
subparagraph 7,a7 regarding ceding risk 
through contracts having a duration     
longer than one year4  4