Mr. Chairman, I offer an amendment. Mr. Chairman, for too long, Congress has taken a reserved and reactionary approach to helping victims of disasters. For too long, Members have fallen back on a naive notion that a national plan would…
Mr. Chairman, I offer an amendment.
Mr. Chairman, for too long, Congress has taken a reserved and reactionary approach to helping victims of disasters. For too long, Members have fallen back on a naive notion that a national plan would only put taxpayers at risk. We have refused to admit that in the event of a natural disaster, we either pay now or we pay later, and paying later is a whole lot more expensive.
Please consider this: in 2005 the insurance industry, not the taxpayers, paid out $61.2 billion for the 24 disasters that occurred that year; $40 billion of that went to the insured losses of Hurricane Katrina. That same year, Congress, using taxpayer dollars, awarded over $89 billion in post-disaster assistance, $89 billion that will never be recouped, that came from hardworking constituents from Illinois, for example, from my colleague who offered the amendment before, from West Virginia, from the State of the lady who is handling the bill on this side. Unless these constituents were directly affected by these events, they will never see a return of those dollars that the Federal Government provided. What is the lesson here? When Congress pays later, it's with taxpayer money that's never paid back.
For the first time, this bill and the manager's amendment provide a national plan to protect against losses. H.R. 3355 provides incentives to States to join a national consortium to issue catastrophic bonds. These bonds act as an alternative to costly reinsurance. It also provides some loans to the States that take the time to plan for their insured needs.
The amendment that we have at the desk today also relates to when a natural disaster strikes. How many natural disasters have we heard about, whether it's a tremendous snowstorm in the Northeast, whether it's a hurricane, whether it's an earthquake in California, where price gouging takes effect?
My amendment says, in order to qualify for the loans and Federal catastrophe fund under the bill, the various States would have to establish anti-price gouging laws for post-event materials, that's goods and materials that people need after a catastrophe. The amendment defines price-gouging as a supplier charging a price he knows is greater post-event than he charged pre-event, notwithstanding any reasonable business increases.
Certainly, this kind of an amendment would help stem the double- whammy of a natural disaster. You might, for example, have your home damaged, and then when someone comes in to put a blue tarp on the roof, the price is outrageous, or even the delivery of goods and services after such a disaster. We need to protect homeowners from people who would rip them off, people who are simply trying to rebuild their lives after such an event.
I urge the Members to support the anti-price gouging amendment that is before us today.
Mr. Chairman, I yield back the balance of my time.
Amendment Offered by Mr. Klein of Florida to the Amendment Offered by
Ms. Ginny Brown-Waite of Florida
Mr. Chairman, I move to strike the last word.
The gentleman from Florida, with whom I have worked so closely on this issue, and I obviously disagree. We disagree because I would like to have this as absolutely a mandatory part of participation, and he would prefer to have it as a suggestion.
I still believe that we need to make this mandatory. It's like, you know, somebody once said, the Ten Commandments are now a suggestion, they're not commandments. I don't want to just suggest it; I want to make sure that the price-gouging language is strong so that we do protect people at that time of a natural disaster.
Most States do have good price-gouging laws already on the books. I'm not very happy with the term ``encourage.'' I think we need to mandate this as part of the process.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, I am very fond of the gentleman from Connecticut, and I know his heart is in the right place. He has been very supportive of many of the things that are proposed in this Chamber, and on many, many issues we agree; however, this is an issue that we do not agree on.
Study, study, study. Let's just study it again. That is what Congress has done for so many issues for so many years. Another colleague of ours, Jo Ann Emerson, came to Congress a little over 10 years ago taking her husband's place in Congress. He had passed away. The reason I mention this is her husband chaired a study group on this very subject in 1995 or 1996. How much longer do people have to believe that Congress is going to do nothing other than create another bound study that is going to sit on somebody's bookshelf someplace and not accomplish one darn thing? This isn't just about Florida. It is about every State that faces natural catastrophes. It is about finally having a solution.
The gentleman from Connecticut was elected to serve in the House. Quite honestly, there are many times when, on this very floor, we all say, I don't care what the Senate is going to do. Well, it just so happens that a bill recently was introduced, very similar to this bill, by Senator Nelson and a neighbor of the gentleman from Connecticut, Mrs. Clinton, Senator Clinton, so there is a companion bill over in the other House. While that companion bill is not bipartisan, it is some movement. It is acknowledgement to the people out there who are paying outrageous insurance rates that Congress is finally stepping up and doing something and not just creating another study killing who knows how many trees. I know the gentleman from Connecticut is an environmentalist. I would think he would want to save a few trees.
Mr. Chairman, I disagree with the gentleman's amendment, and I encourage my colleagues to vote against it.
I thank the gentleman for yielding.
I am very much opposed to the motion to recommit.
States have comprehensive plans controlling development. What States don't want is the Federal Government telling them what to do. There are excellent new building requirements, new building codes that are in place to ensure that anything that has been built since 1990 is built to much stronger standards.
On the insurance costs: let's face it, ladies and gentlemen, if this bill doesn't pass and a catastrophe happens, the first thing that will be the bill du jour is to bail out California if there is an earthquake, Florida if there is a hurricane, or any other State where tornadoes hit down. If you voted for TRIA because it was the right thing to do to stabilize the reinsurance market for terrorism insurance, then you should vote for the bill and against the motion to recommit. This is an attempt to stabilize the insurance market; it is not an attempt to take over the insurance market.