i think as a technical matter, there is no extraterritorial typical any any of the authorities that we have been developing including the new executive order. that being said, there's no question what we're trying to do is to influence -- entities operating overseas. and look, i make no apology for that. if you look at..

in iran and we can do that. we have the capacity to do that by saying if you want to n have access to the u.s. market, you need to conduct ourselves in a way that we think is consistent with isolating these entities. there's a very important objective. it's one that's shared broadly around the world which is to address the concerns with girons nuclear program. that's what the legislation is

about, the executive order is specifically focused on iran and syria to the problems that have widespread international agreement in terms of the need to have them at rest. we are pleased for being innovative and creative how we are using our frn jeeves. it has this impact internationally because it's designed to have that, and i think it's fair to ultimate test is whether we are going to be successful in helping to achieve our national security foreign policy objectives through the use of these tools and i think so early returns are we are having an impact.

>> with that, let me thank you. the scope of the discussion in putting things we didn't get to include a new technology and over reduce of other things benefit clearly not only the treasury at the center of who but you are. i'm thankful for that. thank you for your time. i would ask you to join me in thanking david. >> thank you. [applause]

the house armed services committee spent nearly 60 hours crafting its annual defense authorization bill. rick mazar is a congressional editor joining from capitol hill. what are some of the issues the lawmakers will be debating when the bill comes this week? >> some of the issues we've seen before talking about afghanistan of the end of the day there's not much they will do about afghanistan. they will have a sense of resolution on things we have to look at and there will be

detainees at guantanamo bay and kube unearthed but they're still the same thing to have trials for the united states, should we close the prison down altogether and when will they go about the possibility of the obama administration transom detainee's who won't be tried in the third-party countries in return for peace agreement in the middle east. there's a larger fight we've hal how much money to spend on defense for the committee has 5 billion, it will be 4 billion more. the president asked for 8 billion more in the budget agreement and democrats are unhappy with the money being spent mostly because of where it comes from. there's not much they can do about it because we're the money is being spent the democrats in the and wouldn't want to do. they spent money preventing the tricare piece on the military retirees they will not find very many lawmakers for increases

people in the election year. >> of the committee debate this week democrats said the bill has billions of dollars for weapons systems the country doesn't need. how do republicans respond to that? >> we need them. it's a simple disagreement between the two of them. >> what about the overall bill itself in terms of what an authorization bill does versus the pentagon budget bill. >> this has specific authorization to do things. you need to continue programs that are going to expire. there are more than 30 bonuses that will expire december 31st. it's mostly for the new policy changes, pay raises, weapons programs, construction and things like that. it was 56 throop 05 in the end in the this is one of the committees that even though there's a lot of partisan bickering these days the committee can actually get a bill done and pass it on a bipartisan basis. >> it was a daylong hearing

there must have been contention in that 16 hours. >> contention means you can spend a lot of time talking about things with a lot of very many votes. over 100 million-dollar plan to create east coast missile defense for the possibility of countries like iran in the united states. it's not an immediate threat right now and the initial money is $100 million was isn't very much in terms of 650 billion-dollar defense budget. but it's a long range to be a 6 billion-dollar program so it's committing to something now. >> defense programs are going to take a hit in january 2014 because of the debt agreement last year. does the authorization bill make any accommodation for that? >> no it doesn't. that is done separately. there's nothing they can do in the bill that would change that.

>> would you see on the house floor looking ahead when is the senate likely to take it up if it passes the house? >> we are in the memorial day recess in the last week of may in the committee when the senate might pass a bill on the floor is a question. i don't think we will have a final resolution until after the november elections. >> clich may's congressional it over with military times from capitol hill, thank you for the update.

i got to pocahontas. there's one right there in the one right here and this makes a rectangular space could be the council. pocahontas marius john in this church in 1614. so, i guarantee you i am standing exactly a little deeper than she was put this is where she stood when she got married. i thought it was important

to write a book that took people so the movements that elected obama, how do they built over time, 2003, to thousand four what was happening, also the tea party movement seemed to come out of nowhere. occupy wall street, i thought those were important finance to take seriously in the social movement we the people perspective. earlier this week the senate banking subcommittee held a hearing all long-term extension of the national flood insurance program. the legislation allows five-year extensions in which insurance

rates would increase to 15% up from the current level of 10%. the national flood insurance program expires at the end of this month. this panel is 45 minutes. [applause] >> what we will do before we start on this panel is i would like to give the ranking member of better the opportunity to say a few words. >> thank you again, mr. chairman. i will be very brief. i just want to underscore really my last point. today is may 9th. the entire program expires after may 31st, 22 days, slightly over three weeks, and we really, really need to act for the good of the country and the economy. and we need to act in a long-term way not just another band-aid, another short term extension which creates and continues an unhealthy level of uncertainty, and i appreciate

the chairman feeling the same way and working very closely with me and others in this regard. i'm going to be doing two things this week that i hope to get widespread support. i will be passing around a new letter addressed to senator reid and mcconnell urging this to be put on the floor as absolutely as soon as possible. they have the same plea loveless three's months ago so it's even more urgent now has a floor amendment to the next bill on the floor after the present one whatever that is. the senate reauthorization bill with some noncontroversial perfecting amendments that have been worked out since committed so it looks like the next bill on the floor will either be an fda user fee reauthorization or

a small business tax bill. neither of those is highly partisan r harley controversial i will be proposing as a floor amendment the senate bill with the perfecting amendments incorporated into it and i hope we can get a bipartisan cooperation effort to get attached to that bill as a means of pushing this forward. thank you mr. share for the couple minutes and i look forward to the second panel. i want to get started in the next panel representing a broad cross industry support for reauthorization. i want to thank you all for being here ahead of time. dr. david simpson as president and ceo of the property-casualty insurers of america which

represents more than a thousand homeowners, although and business insurance companies that rate over 30% of the nation's property and casualty insurance. the george w. bush administration as deputy secretary of the department of commerce and assistant secretary of commerce for economic development. welcome, dr. simpson. >> it's a pleasure to be with you today. i appreciate your leadership on this issue and for the invitation to be here. pcie and its members who write about 52% of all the flood insurance as partners with the wife nfip through the right and wrong coalition program believe that the nfip is vitally important venetian and economy it doesn't just affect one part of the nation. flooding occurs all across the country and we fully support your efforts to pass a bipartisan legislation that includes a long-term reauthorization need meaningful reform. i would like to emphasize three

points in my testimony today. first, it is vitally important to avoid another lapse in the nfip as they have real world negative consequences for consumers and the economy. second, confirmed by the government accountability office program is meaningful structural reforms and privatization of the flood program is not feasible under current conditions. let me expand on those a little bit. the first priority of course is to avoid the lapse in coverage. you will be documented your concern about that more than 5.6 million american homeowners and businesses in the policyholders and rely on this program to protect their property. you've already discussed the 12 short-term extensions of the program since september 2008 leading to the lapses in coverage when congress failed to act in 2010 alone the nfip lamps for a total of 53 days and during fees, flood insurance

policies couldn't issue for the nude and each time the program lapses, a cumbersome and expensive series of special bridging transactions is required from insurers and consumers and the nfip to set aside policy purchases, collect funds and advanced claim payments and all of this creates significant friction cost for the marketplace and certainly for americans who rely on this important protection. second while less critical for compass to reauthorize the nfip before may 31st, the program as it stands now needs the structural reforms which are addressed in the senate banking committee bill. the nfip is deeply in debt and must transition to a more sustainable path. i would point out that if a private insurance company held no surplus and carried $18 billion in debt on a 4 billion-dollar annual revenue stream, regulators would for six years running, regulators would immediately shut it down and the

ceo would be fired and that is the situation we face with the nfip program. number two, the pci studies reveal that it's providing government subsidized web policies of roughly one-third of what the full load costs in the private sector. the subsidies for the repetitive loss and high-risk policies are even greater. one per cent of the properties insured by the nfip have accounted for over a third of the claims on the ongoing basis and the previous panel spoke about so eloquently. the third point i wanted to make is will the program needs to be a realist and reformed its important to note the discussions of privatizing the program are unfeasible under the current conditions. the current nfip rates would need to be closer to the true market rates before any meaningful discussion related to the private industry taking on flood risk can take place.

2011 pci study estimated of the private market were to override of apparel policyholders could see the rate increases of up to two or three or 400%. proposals to end of the nfip aren't realistic given the state subsidies and the unwillingness of many homeowners to purchase coverage in high-risk areas even when mandated at these subsidized risks so we applaud your efforts and pci stands willing to work with this committee to do anything we can to help this overwhelmingly bipartisan piece of legislation to make it through the senate in time to avoid the lapse and pursue the structural reforms that you have proposed. thank you mr. chairman. >> thank you. we appreciate your testimony and will have questions after the testimony with the other panelists but thank you for your perspective and for your testimony.

next we have mr. jensen serve as government affairs committee chairman of the independent insurance agents in america and as president of the insurance group. he is currently the south carolina national director for independent insurance agency brokers of america and is the pasture man of the independent insurance agents and brokers as a americas and sure board of trustees. i want to welcome you today, mr. jensen. you may proceed with your testimony. >> thank you very much. good morning chairman tester and ranking member better. i am pleased to be here today on behalf of the independent insurance agents of america to present our associations perspectives on extension reform in the nfip. we commend the subcommittee for looking at this important issue. i'm the president of the insurance group which is an agency with 132 associates and 12 locations including offices in both merkel beach.

we also write nearly 3,000 nfip policies. since 2001i served as chairman of the government affairs committee for the big point the big lie is the nation's largest oldest trade association of independent brokers and we represent a nationwide network of marvin a quarter of a million agents, brokers and employees. many of these agents served as a sales force of the nfip working with port huron cos. it's from this vantage point that we understand the capabilities and the challenges of the insurance market when it comes to ensuring flood risk. the private insurance industry has been and continues to be largely unable to underwrite flood insurance because the catastrophic nature of the losses therefore urge the nfip as virtually the only way for people to protect against a loss of their home or business deutsch flood damage. prior to the introduction of the program in 1968, virtually the

only financial remedy available to consumers after the floods is federal disaster assistance. since then, the nfip has built the market avoid creating a safety net for people whose property suffered damage. with this said, we do recognize the program is far from perfect which is made of a more clear by the devastating 2005 hurricane season. the current $17.2 billion debt reveals the deficiencies of the program and it is clear that congress should show up the financial situation. for this reason, it's a very encouraged by jimmy johnson's legislation with the flood insurance reform of the modernization act of 2011. we want to be very clear it's strongly supports a long-term extension and reform legislation there are important reforms that must happen to the program in order for it to be put on a stable footing. in particular, for many years

its asked congress to begin phasing out subsidies on the program. we are pleased german johnson's position contains proposals to do just that for many properties additionally the big i will is a proposal to increase the amount they can raise premiums in any given year. currently they can only raise premiums by 10% on any property. the legislation proposed to increase this to 15 per cent which would allow the program to become more financially sound. i'd also like to comment on some recent discussions aimed at finding ways to privatize the program. big i would prefer to utilize the market. however, we have yet to see evidence of the private marketplace is any more prepared or capable of underwriting flood risk today than they were in 1968. that said we welcome the study of privatization options found in the legislation and would be happy to discuss any ideas of increasing the private market world going forward.

finally of the like to touch on one of the most important things found in the reform legislation and that is the long-term extension. as you know for the past six years, congress hasn't passed a long-term extension of the program and instead has opted to pass numerous short term extensions. this has been done mainly so the congress can continue efforts of the reform legislation. while the big i appreciates the passage of each of the short term extensions, it should be noted that there is increasing frustration both in the marketplace and among our consumers with the program and its complete lack of stability to read a five-year extension has found in 1940 is a more important than i can stress. we strongly urge the senate leadership to secure full times eddy date of s1940 in fact as you know this week a number of organizations from various industries are taking part in a flood video. to urge the senate to finally pass 1940.

i am happy that the three panels here today, the realtors, pcie and nature conservancy are a part of that effort. hopefully we can make some progress this week. i think the committee for giving me the other 22 express the views of the big i on this issue and i look forward to any questions you may have read on a separate note i would like to thank you mr. chairman on behalf of the entire membership for introducing. we look forward to working with you on this licensing reform legislation. >> thank you. i appreciate the kudos and it's good to see you. thank you. >> appreciate your testimony. mr. morris is the president of the association of realtors representing 1.1 million members involved in all aspects of the residential and commercial real-estate industries. he was elected president of the florida association of realtors in 2002 and was a realtor of the year in 2003. i want to welcome you year today

and continue with your testimony please. what the members of the subcommittee thank you for the devotee to testify on this urgent need for a five-year reauthorization and prevent and i would be remiss if i didn't bring you the salutations of the louisiana association of realtors and all 5,000 plus readers in louisiana would appreciate senator vitter you are involved in the commitment in this issue and from betty and granda who said specifically to tell you they are very much pleased and very much committed to what you are trying to accomplish on the hill. i am of president of the 2012 for the national association of realtors and the broker onerous associates in miami florida in

42 years. the national association of realtors represents more than a million members as you mentioned involved in all aspects of the realtor industry. long-term reauthorization of the program is a key priority on may 17th here in washington, d.c. we will have over 15,000 realtors of the washington monument and one of the five key issues that we will be speaking to the folks on the hill about on just this issue. ensuring access to the affordable flood insurance is critical. it creates uncertainty in the real estate market and uncertainty is required for this realistic market to require dahuk what -- recover. home prices are still enormously fragile across the united states and more than a quarter of a million of existing home sales are distressed property. tight lending standards remain a problem and we don't want to give an linder another excuse not to approve the loan.

since 2008 and twice failure act led to programs set down in the latest susceptive spark as you know may 31st of this year. the flood insurance shutdowns have broad implications in the u.s. economy nfip is an essential to the 500,000 home sales annually. thousands of sales nationally can be delayed if we don't have this bill in progress in tact. more than 47,000 real-estate transactions installed in june, 2010 for the 33 days the act was not in service. over 16,000 homes and housing is on the flood plains of montana, over 660,000 homes on the flood plains and louisiana.

more than the homes are impacted by this. the commercial multifamily refinancing all or impacted and the lack of the uncertainty in the national flood insurance program is. the five-year national flood insurance reauthorization of first broad advantages. one is the first important bipartisan when for congress which in my humble estimation is so much needed right now. number two, this has passed unanimously of the committee and helps pass the over 400 votes. the reforms are lost after the five-year bill is adopted. enhancing communications with communities, greater nullifications of the floodplain mapping, reimbursement of the flood map expenses to nfip from a streamlining of the mapping

process, additional time for the resolution of the appeals and review of the flood mapping standards and procedures. a number of states affected are enormous. this is no longer a coastal issue. places like west virginia, tennessee, kentucky, alabama, new mexico, vermont, kansas, iowa, nebraska, missouri, utah, minnesota, wyoming, north and south dakota all have related presidential disaster declarations and there is more every time we slow this down, every time we create an uncertainty in this particular bill and this particular we slowed down the process of a healthy real estate recovery in this country. if there's one thing that is enormously important to this country's both economic and social cultural background is the resurgence of a strong and healthy housing market so i

would encourage you to continue to the good work you have the national association of realtors to believe and understand your commitment. thank you very much. >> think you for the testimony and i couldn't agree more the real-estate recovery is critically important to get the economy back on track. think you for your testimony. next week of sarah murdock senior policy for climate change policy for the conservancy leading conservation organization working to protect important land and water. she handles climate change adaptation strategies and the federal hazard risk reduction policy for the conservatism also work here in the senate working for senator john kerry. welcome, and you may proceed with your testimony. >> thank you mr. chairman and members of the subcommittee for the opportunity to present the views on the timing and the nature of the reforms to the national flood insurance program.

my name is sarah murdock senior policy advisor for the conservancy. the conservancy is an international nonprofit conservation organization working around the world to protect ecologically important land and water for nature and people. the major conservancy continues the support of the five-year reauthorization of the national flood insurance program for the passage of the senate banking committee flood insurance reform legislation. we ask that this legislation be brought before the full senate for debate and consideration the earliest opportunity. the conservancy is also a member of the smarter senator coalition, a diverse coalition of environmental organizations, tax payer advocates, insurance industry representatives and housing groups. smarter safer also strongly supports the banking committee flood insurance reform and this week we are participating in this week's flood the hill activities. with this much diverse political support, it seems like the

passage of the flood reform represents a windfall. contrary to the congressional intent the premier as it currently functions is increasing risk from storms and floods to people, property and ecosystems and the important services that those ecosystems provide to people. enactment of the flood insurance reform legislation will phase out subsidies that have undermined the financial stability of the program. we will require fema to make sure maps are updated and accurate so people can understand and better prepare for the risk and will streamline and strengthen the mitigation programs to help decrease flood risk and better protect flood exposed communities, homes and businesses to what i would like to focus the remainder of my testimony of our interest in this final provision, our support for strengthening the mitigation program. in 2011 alone there were 58 federal flood disaster

declarations covering 33 different states and costing $8 billion causing 113 deaths. both the cost and the number of deaths exceeded its authority year averages and results from scientific studies indicate that change in climate has exacerbated and will continue to intensify extreme weather and cultural storms. the proposed reform a decision is the most important single step we can take towards mitigating these risks. currently under the flood insurance pretty dangerous feedback loop is simply. subsidize insurance rates facilitate coastal zones and freshwater floodplains which not only people and property at risk is simultaneously facilitates the destruction and the degradation of the ecosystems that provide a natural defense to people and properties. the approach to flood protection and floodplain systems has been to rely on the dams and levees

that contain the flood waters in coastal areas has been to build the sea walls and other great infrastructures. while build infrastructure plays an important role helping secure communities it requires substantial investments for both initial construction and maintenance. an alternative approach involves integrating the use of natural infrastructure were so-called green infrastructure with built infrastructure. this specifically involves maintaining and restoring the connectivity of rivers along with sufficient area of floodplains and conserving and restoring natural infrastructure such as wetlands and islands. and in addition to the flood control benefits provided cover these ecosystems provide many services that support and protect humans such as filtering pollutants, erosion protection, production of fish and shellfish

and agriculture production. the conservancy is working with diverse partners across the country to implement the restoration projects along the east and gulf coast in particular building as a way of protecting against floods. due to our understanding of the benefits of investments in mitigating efforts we stand ready to work with fema and members of congress to strengthen the aspect of the flood insurance program passage of the sites your insurance program. >> thank you ms. speed i appreciate your testimony and as we deal with a whole panel we will start with questions now. i would like to thank each of you for your commitment to the authorization and appreciate it. i think seven minutes we will of more than one round, the i

guess. arlan to start with the pressing issue facing us right now and that is the danger in the program. i understand this may be different today. i don't know senator vitter but it's clear my side is the ogle i don't know if it is on yours yet or not but we are working together to get this done in some cases i'd rather just see us get this done rather than deal with the extension that's what senator vitter talked about in his remarks. i want to drill down the point of collapse because the clock is ticking. in your testimony you spoke of the consequences which can be pretty severe if the program does lapse again. what i would like to do from each of your perspectives, described the most damaging consequences of failing to extend this program, and at what point prior to the exploration

deutsch the carriers and agency and realtors and homeowners need to start preparing for the potential collapse? go ahead. >> well, while the cost of the laughs are hard to quantify they are real and the answer to your question, the insurers are already in the process now that we of close beginning to mail out those notices of the imminent collapse of the program and the only one who wins by that maybe the u.s. postal service because they get revenue but i know you've been dealing with a lot recently. those are indebted friction costs to the insurers, and i think it's these repetitive lapses in the program that has caused a number of major participants in the write your own program to lead in recent years. we are down to 85 active participants in the program from 150 just a few years ago so that is giving you the invitation that the frustration and friction cost of these

complicated bridging transactions are making it not worth the participation from the insurer's perspectives. >> would you like to respond to that? >> as dr. simpson mansion, the carriers are forced to start carrying out the notice and perspective from the agency as i mentioned in my testimony we have 3,000 flood insurance policies that means we will get 6,000 calls from folks that say what's happening, what's going on? i would also emphasize it is important to the consumers as a matter of fact this morning on the right over i was forced to share a cab with other people on transportation issues but one of the ladies had a home in charleston carolina asking what i was doing here and i explained to her she said my god don't they understand the hurricane season is june 1st. she says we get these notices of the time and as we are leaving the cab she says what you do me a favor she says my name is andy davis would you please tell the

senate to do good work here we need flood insurance we can't be without. because of the of the housing insurance market we know that every two houses generate one job so even in the worst of times we are generating about two plus million jobs a year in the housing market is on track. without the national flood insurance, the effect so many homes not just coastal states but interior states today and even though is that of existing homes not potential homeowners, not folks that are looking to either go out and sell the whole or buy a new one but those that excessed have clauses in their existing mortgage that simply say if there's a lack insurance they have the opportunity to be called, even those folks don't know how at risk they might be this is a fledgling recovery real-estate market as important

to this market as any other aspect as important to the recessionary period that we've had this to hold the real-estate market both from the economic standpoint from america in the the social and cultural standpoint and when you do anything to affect the fledgling real-estate recovery, you are literally affecting the economic recovery in the social and cultural aspect of america and i can't tell you how important this piece of legislation and senator vedder to get it extended for the five years. that's enormously important not just the real terms of the american homeowners. >> you may not notice a national basis but you may know from the southern florida basis if this were to expire what kind of impact as far as the percentage of homes would have in southern

florida? >> i can't be specific about that although i will give you -- >> i just want to get an idea. it's been a cow's be coded to you naturally we were about 1300, about 47,000 across the board. but in florida we would be specifically interested because the entire state for all intensive purposes is a flood plain it would impact every one of those sales and even the existing mortgages. percentage wise i'm going to guess at least 102. >> ms. murdock, from your perspective in the conservative perspective if we keep doing this or it is to expire, how does that impact the mitigation efforts? >> clearly we are seeing more and more increased storms and storm damage which is causing more and more damage and the mitigation efforts are longer-term efforts. they are not something that can happen overnight.

we need that long term in the backing of the program and the demands that they provide in order to really plan for and implement some of these mitigation efforts. >> thank you. senator vitter? >> thank you mr. chairman, and i certainly strongly support a short-term extension if we need it if we can't do anything else before may 31st in fact i think technically it is my bill, so i will certainly be clear of that if it is necessary. all i am just concerned about to sion. number one, patience is running thin among some of the members doing all the short term extensions. so, we may not be able to clear it. that means get unanimous consent every senator on our side house to agree coming into the more of these band-aid extensions we do, the last patient members have because they want reform that is

needed. second, a short-term extension avoids a lot of negatives, but it doesn't accomplish the positives that the full realization does and i think there was one of those points. so, i am for it if we can do that between now and may 31st but i also trolleying as john and others are for the full realization. may 31st is three weeks and a day away. when do you concrete - factions notice the letters and other things start going out compared to that date? is it now? >> they've already started. >> why don't you describe some of that and when that starts? >> 60 days out from the exploration of the program insurers are required to notify

holders of policies that the coverage is going to be ending, and as i say, it has a cascading during the last there's a whole cascading series of a very complicated abridging transactions that add no value to the process but only cost to the carriers and uncertainty to the policyholders. we are in a bizarre situation where you have the national flood insurance program actively advertising the nfip on television to try to increase the take up rate which is the socially responsible thing to do yet everyone who has a policy knows the disruptions we experienced over the last several years so we are sending crossed signals your and the lapses are causing the company's

to exit the program and i am convinced these continual lapses create such uncertainty in the policyholder that reduces and suppresses the take a break in the the real rate. >> part of what you are saying is a mere slaps and mess is also - delete to make it is. three days before its all -- >> we are within the period where the - activities are already occurring from the company perspective, but i would say if you can get a short-term extension without letting it lapse, we are talking about here is the least of the bad alternatives, so certainly we are in the tone of - activity but it's not as negative as it will be if we get to may 31st of the program lapses for the 13th time.

>> that's all we have mr. chairman. the member of the full committee and i appreciate the offer sunday to join you today for the purpose is to lend my support to the efforts to the two of you to see that we get this accomplished and to hear from witnesses so that i can have my arguments reinforced. i still remain baffled by at least i am unaware of response to the letter did to a few letters to leaders asking what the five-year reauthorization be considered by the senate i just don't understand why this is something that can't be accomplished based upon the nature of the legislation. it's important, it's valuable to the country and it's a bipartisan support we have to admit how dysfunctional this place is this seems to be the perfect example of this function and if there's something i could

do senator vitter and senator tester in your efforts to get the five-year reauthorization bill to the senate floor and your l.i.e. and i appreciate the testimony i lead a and heard expressing the value importance of accomplishing that. what mr. sampson said i hadn't thought about but it makes sense to me the ability to continue to write these policies in this uncertain environment diminishes to act on some occasions. i appreciate you having the hearing to highlight the importance and i am pleased to allow me to join you for this period of time. >> some have suggested that a two-year extension would be better than the reform of the program and i think both senator vitter and senator moreni

alluded to it to put it on more firm ground with a long-term extension. this is basically dr. sampson or mr. jensen either the two were that all of the freakin' document this but the solvency of the program, could you discuss some areas where reform of this bill is important to the constituencies that you represent, what else does it provide? >> thank you, senator. in addition to the reform as you mentioned there are some issues with increasing the maximum coverage limits. currently the coverage leverett on the home is for full of the elite of love lost hundred $50,000. that is increasingly becoming a problem and issue as we see the higher values and homes again.

as well, we are looking at business interruption. it's important to know that there is a study called for in the bill that talks about business coverage within the commercial sector. we see if it's very valuable as well. islamic in addition you heard testimony on the previous panel of the folks that were placed in areas that in fact were not in the flood plain. some of the things that would have been in the streamlining would be the ability for folks who were not in the flood plain areas that were charged in those areas would have an opportunity to come back and get reimbursed because of the flood plain appeal on an expense basis to the nfip. that would help us that have either been misrepresented initially or just don't know what they're doing at the present time. >> thank you. mr. chairman i would say from the company perspectives the

number one concern is the fiscal preforms, and i wouldn't underestimate that at all. the bill also does address three petaflops properties. i think it's absolutely essential to the previous panelist talked about three petaflops properties. we have one person of properties that account for 40% of all of the claims in the nfip. the reform bill does address that, and i did say that that is a critical component. the increase in the amount that fema can increase premiums to incrementally move towards an actuarially sound rate while important i would say was even more important than that is fema has been unwilling to raise the premium prices even by the amount they are authorized which is 10% a year is even more important in raising the cap on the legislation of what they

could raise prices i'd think is offs a signal to the marketplace that they will actually do that in the incremental steps. the longer you artificially suppressed these rates the greater the impact is going to be on the consumer down the road. so, in addition to what is in the legislation this committee and others of jurisdiction encouragement of for fema to use the authority they currently have is critically important. >> thank you. in your testimony, and you said in an interesting statistic that for every dollar spent on the flat mandation $5 or save it in your testimony you make the distinction between the gray and the green flood related infrastructure investments. could you elaborate on the distinction between gray and green infrastructure investment and the relative cost of both? >> sure. we are talking about for the

systems like levees and dams, the sea walls. what we are more and more focused on is wanting projects where we allow the natural systems flood plains, what plans, coastal wetlands, every year beaches to also performed flood of litigation services. so we are doing a lot of projects like that both in the mid part of the country and floodplain restoration. some of that involves setting back the levees far enough from the river to dewaal the flood plains to perform their natural function, and along the gulf coast we have goal of building 100 miles of oyster reefs along the alabama coast. the cost comparison compared to the great infrastructure is new and we are starting to work in partnership with some insurance

companies to measure those not we have some preliminary figures on the oyster reefs but it's very new and i don't think it accurately reflects what the true cost benefit of the green verses their gray would be. >> thank you very much, senator wicker is coming here in just a second and i want to make sure to get his perspective for his questions. inlet that i just want to say this, first of all, and he will be here momentarily, i would like to say thank you for your testimony. we are waiting for you. you're good to go go ahead and get organized will talk for a second. i want to thank you for your testimony. i can tell you senator vitter and myself and senator moran and others want to make sure we get

this thing considered and moved forward. i think as you do this is a critically important piece of our economic recovery. and i think the longer that we put this off i think it is just a missed opportunity. so, the coalition that is formed and the work you're doing on the hill don't underestimated it is critically important to put pressure on everybody that serves in the senate to allow us to put pressure on leadership to take this bill out sooner rather than later and with that, senator wicker you have comments and questions. >> sing kube mr. chairman. i've been back in my office watching the hearing while trying to get my desk cleared out. i wouldn't be surprised if other members of the committee also were unavailing this opportunity, but i just had to rush down can't add my support.

>> i want to thank all of these members of the panel for their excellent remarks. i guess it was the representative from the realtors i'm not sure but someone made a very cogent point. you know, mr. chairman, we need a bipartisan accomplishment in the senate, and we have it within our grasp to do this on a very important issue. the american people are looking to us. they expect us to come to washington and actually engage in accomplishments. a good vote in the house, strong support in this committee and the opportunity is right there.

so, for those members of the leadership within the sound of our voices i just had to rush down before we gather to a close, and say that i absolutely hope we can do this. i would mention that the committee leadership has been very generous in working with me and others on the so-called coastal act, which is a small step to words using sand that's already out there to get us towards a resolution on the wind and water issue that is often a problem inhofe when a hurricane comes along the eaves made great points, this is not just a bill for people that are along the oceans in the gulf. this is a bill for the entire united states, it's a bill for the taxpayers for heaven's sake,

and senator tester, thank you for your leadership and senator vitter i appreciate senator moran coming on. i don't have questions because the questions i would have asked what have been asked while i was listening. thank you very much. let's keep this up and let's redouble their resolve to actually get an accomplishment for the taxpayers and for the american public. islamic we certainly appreciate your long support and working on this bill. it's been critically important, and i think you are right. it is a good bipartisan win and it's something that we needed to help do a lot of good things for a lot of good folks out there and plus fixing the fiscal problems this program has. so i just want to thank this panel and the previous panel for their testimony. the hearing record will remain

open for seven days for any additional comments anybody might want to add or any questions that folks want to submit for the record. with that, thank you all very much, and this hearing is adjourned. the movements that elected obama how did they come over time? to vose and three, 2004, what was happening? also the tea party movement that seemed to come out of nowhere. it's in origin. how does it happen? occupy wall street. those were important things to take seriously from the social movement, we the people perspective. ..