text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Commission on Catastrophic Disaster 
  Risk and Insurance Act of 2006''.
  
  SEC. 2. FINDINGS.
  
      Congress finds the following:
              (1) Hurricanes Katrina, Rita, and Wilma, which struck the 
          United States in 2005, caused over $200 billion in total 
          economic losses, including insured and uninsured losses.
              (2) Although private sector insurance is currently 
          available to spread some catastrophe-related losses throughout 
          the Nation and internationally, most experts believe there will 
          be significant insurance and reinsurance shortages, resulting 
          in dramatic rate increases for consumers and businesses, and 
          the unavailability of catastrophe insurance.
              (3) The Federal Government has provided and will continue 
          to provide billions of dollars and resources to pay for losses 
          from catastrophes, including hurricanes, volcanic eruptions, 
          tsunamis, tornados, and other disasters, at huge costs to 
          American taxpayers.
              (4) The Federal Government has a critical interest in 
          ensuring appropriate and fiscally responsible risk management 
          of catastrophes. Mortgages require reliable property insurance, 
          and the unavailability of reliable property insurance would 
          make most real estate transactions impossible. In addition, the 
          public health, safety, and welfare demand that structures 
          damaged or destroyed in a catastrophe be reconstructed as soon 
          as possible. Therefore, the inability of the private sector 
          insurance and reinsurance markets to maintain sufficient 
          capacity to enable Americans to obtain property insurance 
          coverage in the private sector endangers the national economy 
          and the public health, safety, and welfare.
              (5) Multiple proposals have been introduced in the United 
          States Congress over the past decade to address catastrophic 
          risk insurance, including the creation of a national 
          catastrophic reinsurance fund and the revision of the Federal 
          tax code to allow insurers to use tax-deferred catastrophe 
          funds, yet Congress has failed to act on any of these 
          proposals.
              (6) To the extent the United States faces high risks from 
          catastrophe exposure, essential technical information on 
          financial structures and innovations in the catastrophe 
          insurance market is needed.
              (7) The most efficient and effective approach to assessing 
          the catastrophe insurance problem in the public policy context 
          is to establish a bipartisan commission of experts to study the 
          management of catastrophic disaster risk, and to require such 
          commission to timely report its recommendations to Congress so 
          that Congress can quickly craft a solution to protect the 
          American people.
  
  SEC. 3. ESTABLISHMENT.
  
      There is established a bipartisan Commission on Catastrophic 
  Disaster Risk and Insurance (in this Act referred to as the 
  ``Commission'').
  
  SEC. 4. MEMBERSHIP.
  
      (a) Members.--The Commission shall be composed of the following:
              (1) The Director of the Federal Emergency Management Agency 
          or a designee of the Director.
              (2) The Administrator of the National Oceanic and 
          Atmospheric Administration or a designee of the Administrator.
              (3) 12 additional members or their designees of whom one 
          shall be--
                      (A) a representative of a consumer group;
                      (B) a representative of a primary insurance 
                  company;
                      (C) a representative of a reinsurance company;
                      (D) an independent insurance agent with experience 
                  in writing property and casualty insurance policies;
                      (E) a State insurance regulator;
                      (F) a State emergency operations official;
                      (G) a scientist;
                      (H) a faculty member of an accredited university 
                  with experience in risk management;
                      (I) a member of nationally recognized think tank 
                  with experience in risk management;
                      (J) a homebuilder with experience in structural 
                  engineering;
                      (K) a mortgage lender; and
                      (L) a nationally recognized expert in antitrust 
                  law.
      (b) Manner of Appointment.--
              (1) In general.--Any member of the Commission described 
          under subsection (a)(3) shall be appointed only upon unanimous 
          agreement of--
                      (A) the majority leader of the Senate;
                      (B) the minority leader of the Senate;
                      (C) the Speaker of the House of Representatives; 
                  and
                      (D) the minority leader of the House of 
                  Representatives.
              (2) Consultation.--In making any appointment under 
          paragraph (1), each individual described in paragraph (1) shall 
          consult with the President.
      (c) Eligibility Limitation.--Except as provided in subsection (a), 
  no member or officer of the Congress, or other member or officer of the 
  Executive Branch of the United States Government or any State 
  government may be appointed to be a member of the Commission.
      (d) Period of Appointment.--
              (1) In general.--Each member of the Commission shall be 
          appointed for the life 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 was made.
      (e) Quorum.--
              (1) Majority.--A majority of the members of the Commission 
          shall constitute a quorum, but a lesser number 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 a quorum of the Commission.
      (f) Chairperson.--The majority leader of the Senate, the minority 
  leader of the Senate, the Speaker of the House of Representatives, and 
  the minority leader of the House of Representatives shall jointly 
  select 1 member appointed pursuant to subsection (a) to serve as the 
  Chairperson of the Commission.
      (g) Meetings.--The Council shall meet at the call of its 
  Chairperson or a majority of its members at any time.
  
  SEC. 5. DUTIES OF THE COMMISSION.
  
      The Commission shall--
              (1) assess--
                      (A) the condition of the property and casualty 
                  insurance and reinsurance markets in the aftermath of 
                  Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 
                  major hurricanes that struck the United States in 2004; 
                  and
                      (B) the ongoing exposure of the United States to 
                  earthquakes, volcanic eruptions, tsunamis, and floods; 
                  and
              (2) recommend and report, as required under section 6, any 
          necessary legislative and regulatory changes that will--
                      (A) improve the domestic and international 
                  financial health and competitiveness of such markets; 
                  and
                      (B) assure consumers of the--
                              (i) availability of adequate insurance 
                          coverage when an insured event occurs; and
                              (ii) best possible range of insurance 
                          products at competitive prices.
  
  SEC. 6. REPORT.
  
      (a) In General.--Not later than 90 days after the appointment of 
  Commission members under section 4, the Commission shall submit to the 
  President and the Congress a final report containing a detailed 
  statement of its findings, together with any recommendations for 
  legislation or administrative action that the Commission considers 
  appropriate, in accordance with the requirements of section 5.
      (b) Considerations.--In developing any recommendations under 
  subsection (a), the Commission shall consider--
              (1) the catastrophic insurance and reinsurance market 
          structures and the relevant commercial practices in such 
          insurance industries in providing insurance protection to 
          different sectors of the American population;
              (2) the constraints and opportunities in implementing a 
          catastrophic insurance system that can resolve key obstacles 
          currently impeding broader implementation of catastrophe risk 
          management and financing with insurance;
              (3) methods to improve risk underwriting practices, 
          including--
                      (A) analysis of modalities of risk transfer for 
                  potential financial losses;
                      (B) assessment of private securitization of 
                  insurances risks;
                      (C) private-public partnerships to increase 
                  insurance capacity in constrained markets; and
                      (D) the financial feasibility and sustainability of 
                  a national catastrophe pool or regional catastrophe 
                  pools designed to provide adequate insurance coverage 
                  and increased underwriting capacity to insurers and 
                  reinsurers;
              (4) approaches for implementing a public insurance scheme 
          for low-income communities, in order to promote risk reduction 
          and explicit insurance coverage in such communities;
              (5) methods to strengthen insurance regulatory requirements 
          and supervision of such requirements, including solvency for 
          catastrophic risk reserves;
              (6) methods to promote public insurance policies linked to 
          programs for loss reduction in the uninsured sectors of the 
          American population;
              (7) methods to strengthen the risk assessment and 
          enforcement of structural mitigation and vulnerability 
          reduction measures, such as zoning and building code 
          compliance;
              (8) the appropriate role for the Federal Government in 
          stabilizing the property and casualty insurance and reinsurance 
          markets, with an analysis--
                      (A) of options such as--
                              (i) a reinsurance mechanism;
                              (ii) the modernization of Federal taxation 
                          policies; and
                              (iii) an ``insurance of last resort'' 
                          mechanism; and
                      (B) how to fund such options; and
              (9) the merits of the 3 principle legislative proposals 
          currently pending in the 109th Congress, namely:
                      (A) The creation of a Federal catastrophe fund to 
                  act as a backup to State catastrophe funds;
                      (B) Tax-deferred catastrophe accounts for insurers; 
                  and
                      (C) Tax-free catastrophe accounts for 
                  policyholders.
  
  SEC. 7. POWERS OF THE COMMISSION.
  
      (a) Hearings.--The Commission or, at the direction of the 
  Commission, any subcommittee or member of the Commission, may, for the 
  purpose of carrying out this Act--
              (1) hold such public hearings in such cities and countries, 
          sit and act at such times and places, take such testimony, 
          receive such evidence, and administer such oaths or 
          affirmations as the Commission or such subcommittee or member 
          considers advisable; and
              (2) require, by subpoena or otherwise, the attendance and 
          testimony of such witnesses and the production of such books, 
          records, correspondence, memoranda, papers, documents, tapes, 
          and materials as the Commission or such subcommittee or member 
          considers advisable.
      (b) Issuance and Enforcement of Subpoenas.--
              (1) Issuance.--Subpoenas issued under subsection (a) shall 
          bear the signature of the Chairperson of the Commission and 
          shall be served by any person or class of persons designated by 
          the Chairperson for that purpose.
              (2) Enforcement.--In the case of contumacy or failure to 
          obey a subpoena issued under subsection (a), the United States 
          district court for the judicial district in which the 
          subpoenaed person resides, is served, or may be found may issue 
          an order requiring such person to appear at any designated 
          place to testify or to produce documentary or other evidence. 
          Any failure to obey the order of the court may be punished by 
          the court as a contempt of that court.
              (3) Confidentiality.--
                      (A) In general.--Information obtained under a 
                  subpoena issued under subsection (a) which is deemed 
                  confidential, or with reference to which a request for 
                  confidential treatment is made by the person furnishing 
                  such information--
                              (i) shall be exempt from disclosure under 
                          section 552 of title 5, United States Code; and
                              (ii) shall not be published or disclosed 
                          unless the Commission determines that the 
                          withholding of such information is contrary to 
                          the interest of the United States.
                      (B) Exception.--The requirements of subparagraph 
                  (A) shall not apply to the publication or disclosure of 
                  any data aggregated in a manner that ensures protection 
                  of the identity of the person furnishing such data.
      (c) 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.
      (d) 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 the 
          purposes of this Act.
              (2) Procedure.--Upon request of the Chairperson of the 
          Commission, the head of that department or agency shall furnish 
          the information requested to the Commission.
      (e) 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.
      (f) 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.
      (g) Gifts.--
              (1) In general.--The Commission may accept, use, and 
          dispose of gifts or donations of services or property.
              (2) Regulations.--The Commission shall adopt internal 
          regulations governing the receipt of gifts or donations of 
          services or property similar to those described in part 2601 of 
          title 5, Code of Federal Regulations.
  
  SEC. 8. COMMISSION PERSONNEL MATTERS.
  
      (a) Compensation of Members.--Each member of the Commission who is 
  not an officer or employee of the Federal Government shall be 
  compensated at a rate equal to the daily equivalent of the annual rate 
  of basic pay prescribed for GS-18 of the General Schedule under section 
  5332 of title 5, United States Code, for each day (including travel 
  time) during which such member is engaged in the performance of the 
  duties of the Commission. All members of the Commission who are 
  officers or employees of the United States shall serve without 
  compensation in addition to that received for their services as 
  officers or employees of the United States.
      (b) 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.
      (c) Subcommittees.--The Commission may establish subcommittees and 
  appoint persons to such subcommittees as the Commission considers 
  appropriate.
      (d) Staff.--Subject to such policies as the Commission may 
  prescribe, the Chairperson of the Commission may appoint and fix the 
  pay of such additional personnel as the Chairperson considers 
  appropriate to carry out the duties of the Commission.
      (e) Applicability of Certain Civil Service Laws.--Subcommittee 
  members and 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-18 of the General 
          Schedule under section 5332 of that title.
      (f) 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-18 of the General 
  Schedule under section 5332 of that title.
      (g) Detail of Government Employees.--Upon request of the 
  Chairperson of the Commission, 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 60 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 $5,000,000 to carry out the 
  purposes of this Act.
target: Commission on Catastrophic Disaster Risk and Insurance Act of 2006 - Establishes a bipartisan Commission on Catastrophic Disaster Risk and Insurance to assess: (1) the condition of the property and casualty insurance and reinsurance markets 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 ongoing exposure of the United States to earthquakes, volcanic eruptions, tsunamis, and floods; and (3) recommend and report legislative and regulatory changes that will improve the domestic and international financial health and competitiveness of such markets.
feat_title: A bill to establish a bipartisan commission on insurance reform.