Two Floods and You Are Out of the Taxpayers' Pocket Act of 1999

Summary: Increases amounts credited to the National Flood Mitigation Fund from the National Flood Insurance Fund, such amounts to be used only for repetitive claim properties.
Extends through FY 2004 the authority to enter into flood insurance contracts and the authorization of appropriations for the national flood insurance program.
Provides chargeable national flood insurance premium rates for: (1) repetitive claim properties; and (2) certain coastal and river properties leased from the Government. Authorizes annual premium increases with respect to such properties.
Amends the National Flood Insurance Reform Act of 1994 to prohibit Federal disaster relief assistance from being used for repair, replacement, or restoration of any property in the area for which: (1) repetitive claim payments have been made; and (2) Federal mitigation assistance has been offered to, but refused by, the property owner.
Authorizes the Director to provide for funding for mitigation actions that reduce flood damages to repetitive claim properties, under certain conditions. Provides funding for such assistance from the National Flood Insurance Fund.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Two Floods and You Are Out of the 
Taxpayers' Pocket Act of 1999''.

SEC. 2. FLOOD LOSS REDUCTION FOR REPETITIVE FLOOD INSURANCE CLAIM 
              PROPERTIES.

    Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104c) is amended--
            (1) in subsection (a), by inserting after the first 
        sentence the following new sentence: ``In awarding grants under 
        this section for mitigation activities, the Director shall give 
        priority to properties for which repetitive flood insurance 
        claim payments have been made.'';
            (2) in the last sentence of subsection (c), by inserting 
        before the period the following: ``, and shall address 
        properties in the area for which repetitive flood insurance 
        claim payments have been made''.
            (3) in subsection (f), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) Waiver.--The Director may waive the dollar amount 
        limitations under paragraphs (1) and (2) for any State or 
        community--
                    ``(A) for any 5-year period when a major disaster 
                or emergency declared by the President (pursuant to the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5121 et seq.)) as a result of 
                flood conditions is in effect with respect to areas in 
                the State or community; or
                    ``(B) whenever the Director determines that the 
                State or community has properties for which repetitive 
                flood insurance claim payments have been made and that 
                waiver of the cost limitations is cost-effective and in 
                the best interests of the National Flood Insurance 
                Fund.''.

SEC. 3. NATIONAL FLOOD MITIGATION FUND.

    (a) Credits.--Section 1367(b) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104d(b)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) amounts from the National Flood Insurance Fund, in 
        amounts not exceeding $70,000,000 in each of fiscal years 2000, 
        2001, 2002, and 2003, of which all amounts made available under 
        this paragraph in excess of $20,000,000 in each such fiscal 
        year shall be used only under section 1366 for mitigation 
        activities for properties for which repetitive flood insurance 
        claim payments have been made, such sums to remain available 
        until expended;'';
            (2) in paragraph (2), by striking ``and'' at the end;
            (3) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) any amounts which may be appropriated for the Fund, 
        which are authorized to be appropriated in amounts not 
        exceeding $50,000,000 in each of fiscal years 2000, 2001, 2002, 
        and 2003, which amounts shall be used only under section 1366 
        for mitigation activities for properties for which repetitive 
        flood insurance claim payments have been made, such sums to 
        remain available until expended.''.

SEC. 4. CONSOLIDATION OF AUTHORIZATIONS.

    (a) In General.--The National Flood Insurance Act of 1968 is 
amended as follows:
            (1) Borrowing authority.--In the first sentence of section 
        1309(a) (42 U.S.C. 4016(a)), by striking ``through September'' 
        and all that follows through ``, and'' and inserting the 
        following: ``through the date specified in section 1319, and''.
            (2) Authority for contracts.--In section 1319 (42 U.S.C. 
        4026), by striking ``after'' and all that follows and inserting 
        ``after September 30, 2004.''.
            (3) Emergency implementation.--In section 1336(a) (42 
        U.S.C. 4056(a)), by striking ``during the period'' and all that 
        follows through ``in accordance'' and inserting ``during the 
        period ending on the date specified in section 1319, in 
        accordance''.
            (4) Authorization of appropriations for studies.--In 
        section 1376(c) (42 U.S.C. 4127(c)), by striking ``through'' 
        and all that follows and inserting the following: ``through the 
        date specified in section 1319.''.

SEC. 5. CHARGEABLE PREMIUM RATES.

    (a) Actuarial Rate Properties.--Section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking 
subsection (c) and inserting the following new subsection:
    ``(c) Actuarial Rate Properties.--Subject only to the limitation 
provided under paragraph (1), the chargeable rate shall not be less 
than the applicable estimated risk premium rate for such area (or 
subdivision thereof) under section 1307(a)(1) with respect to the 
following properties:
            ``(1) Post-firm properties.--Any property the construction 
        or substantial improvement of which the Director determines has 
        been started after December 31, 1974, or started after the 
        effective date of the initial rate map published by the 
        Director under paragraph (2) of section 1360 for the area in 
        which such property is located, whichever is later, except that 
        the chargeable rate for properties under this paragraph shall 
        be subject to the limitation under subsection (e).
            ``(2) Repetitive claim payments properties.--Any property 
        for which the Director determines that repetitive flood 
        insurance claim payments have been made and the owner of which 
        has refused a buyout, elevation, or other flood mitigation 
        measure funded in whole or in part by the Federal Emergency 
        Management Agency.
            ``(3) Certain leased coastal and river properties.--Any 
        property leased from the Federal Government (including 
        residential and nonresidential properties) that the Director 
        determines is located on the river-facing side of any dike, 
        levee, or other riverine flood control structure, or seaward of 
        any seawall or other coastal flood control structure.''.
    (b) Applicability of Annual Limitation on Premium Increases.--
Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(e)) is amended by striking ``Notwithstanding'' and inserting 
``Except with respect to properties described under paragraph (2) or 
(3) of subsection (c) and notwithstanding''.

SEC. 6. REMOVING REPETITIVE CLAIM PROPERTIES FROM FEDERAL DISASTER 
              ASSISTANCE RESPONSIBILITY.

    (a) In General.--Section 582 of the National Flood Insurance Reform 
Act of 1994 (42 U.S.C. 5154a) is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Unmitigated Repetitive Claim Properties.--Notwithstanding any 
other provision of law, no Federal disaster relief assistance made 
available in a flood disaster area may be used to make a payment 
(including any loan assistance payment) for repair, replacement, or 
restoration for damage to any property in the area for which--
            ``(1) repetitive flood insurance claim payments have been 
        made; and
            ``(2) in accordance with such requirements as the Director 
        may establish, mitigation assistance under section 1366 of this 
        Act or section 404 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5170c) has been offered 
        to the owner of the property, before or after the occurrence of 
        the flood loss events, which was refused by the owner.''.
    (b) Effective Date.--Notwithstanding subsection (f) of section 582 
of the National Flood Insurance Reform Act of 1994 (as so redesignated 
by paragraph (1)(A) of this subsection), the amendment made by 
paragraph (1) shall apply to disasters declared after the date of the 
enactment of this Act.

SEC. 7. MITIGATION GRANTS FOR REPETITIVE CLAIM PROPERTIES.

    (a) In General.--Chapter I of the National Flood Insurance Act of 
1968 is amended by adding after section 1322 (42 U.S.C. 4029) the 
following new section:

                ``grants for repetitive claim properties

    ``Sec. 1323. The Director may provide funding for mitigation 
actions that reduce flood damages to repetitive flood insurance claim 
payments properties, if the Director determines that--
            ``(1) such activities are in the best interest of the 
        National Flood Insurance Fund; and
            ``(2) such activities can not be funded under the program 
        under section 1366 because--
                    ``(A) the State or community in which the property 
                is located can not comply with the requirements of 
                section 1366(g); or
                    ``(B) the State or community does not have the 
                capacity to manage such activities.''.
    (b) Availability of National Flood Insurance Fund Amounts.--Section 
1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) 
is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) for funding for mitigation actions under section 
        1323.''.

SEC. 8. USE RESTRICTIONS ON ACQUIRED PROPERTY.

    Section 1366(e)(5)(C) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104c(e)(5)(C)) is amended by striking ``for public use, as 
the Director determines is consistent with sound land management and 
use in such area'' and inserting the following: ``except that the 
Director may not provide amounts under this section for use for 
acquisition of properties unless the State or community agrees, to the 
satisfaction of the Director, that the instrument for acquisition of 
the property will convey to the United States a future interest in all 
right, title, and interest in and to all property acquired with the 
amounts under this section that is contingent upon the condition that 
the property acquired ceases to be dedicated and maintained for use 
that is compatible with open space, recreational, or wetlands 
management practices.''.

SEC. 9. DEFINITION OF REPETITIVE CLAIM PROPERTIES.

    Section 1370(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4121(a)) is amended--
            (1) in paragraph (7), by inserting after the paragraph 
        designation the following: ``for purposes of sections 
        1304(b)(1), 1315(a)(2)(A)(i), and 1366(e)(4),'';
            (2) in paragraph (13), by striking ``and'' at the end;
            (3) in paragraph (14), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(15) the term `repetitive flood insurance claim payments' 
        means, with respect to a property, that claim payments for 
        losses to the property have been made under flood insurance 
        coverage under this title on more than one occasion, without 
        regard to the amount or timing of the payment or the ownership 
        of the property.''.