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[House Report 115-408]
[From the U.S. Government Publishing Office]

115th Congress    }                                     {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {     115-408

======================================================================
 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2874) TO ACHIEVE REFORMS 
  TO IMPROVE THE FINANCIAL STABILITY OF THE NATIONAL FLOOD INSURANCE 
PROGRAM, TO ENHANCE THE DEVELOPMENT OF MORE ACCURATE ESTIMATES OF FLOOD 
 RISK THROUGH NEW TECHNOLOGY AND BETTER MAPS, TO INCREASE THE ROLE OF 
  PRIVATE MARKETS IN THE MANAGEMENT OF FLOOD INSURANCE RISKS, AND TO 
PROVIDE FOR ALTERNATIVE METHODS TO INSURE AGAINST FLOOD PERIL, AND FOR 
   OTHER PURPOSES, AND PROVIDING FOR CONSIDERATION OF THE CONFERENCE 
 REPORT TO ACCOMPANY THE BILL (H.R. 2810) TO AUTHORIZE APPROPRIATIONS 
   FOR FISCAL YEAR 2018 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF 
 DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE ACTIVITIES OF THE 
  DEPARTMENT OF ENERGY, TO PRESCRIBE MILITARY PERSONNEL STRENGTHS FOR 
                SUCH FISCAL YEAR, AND FOR OTHER PURPOSES

                                _______
                                

 November 13, 2017.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

                Mr. Byrne, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 616]

    The Committee on Rules, having had under consideration 
House Resolution 616, by a record vote of 8 to 2, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration H.R. 2874, 
the 21st Century Flood Reform Act, under a closed rule. The 
resolution provides one hour of debate equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Financial Services. The resolution waives all 
points of order against consideration of the bill. The 
resolution provides that the amendment printed in part A of 
this report, modified by the amendment printed in part B of 
this report, shall be considered as adopted and the bill, as 
amended, shall be considered as read. The resolution waives all 
points of order against provisions in the bill, as amended. The 
resolution provides one motion to recommit with or without 
instructions.
    Section 2 of the resolution provides for consideration of 
the Conference Report to accompany H.R. 2810, the National 
Defense Authorization Act for Fiscal Year 2018. The resolution 
waives all points of order against the conference report and 
against its consideration. The resolution provides that the 
conference report shall be considered as read. The resolution 
provides that the previous question shall be considered as 
ordered without intervention of any motion except one hour of 
debate and one motion to recommit if applicable. Debate on the 
conference report is divided pursuant to clause 8(d) of rule 
XXII.
    Section 3 of the resolution provides that the Clerk shall 
not transmit to the Senate a message that the House has adopted 
the conference report to accompany H.R. 2810 until notified by 
the Speaker or by message from the Senate that the Senate has 
passed H.R. 4374 without amendment.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
H.R. 2874 includes a waiver of the following:
     Section 302(f) of the Congressional Budget Act, 
which prohibits consideration of legislation providing new 
budget authority in excess of a 302(a) allocation of such 
authority; and
     Section 311 of the Congressional Budget Act, which 
prohibits consideration of legislation that would cause the 
level of total new budget authority for the first fiscal year 
to be exceeded, or for the total of that first fiscal year for 
which allocations are provided.
    Although the resolution waives all points of order against 
provisions in the H.R. 2874, as amended, the Committee is not 
aware of any points of order. The waiver is prophylactic in 
nature.
    The waiver of all points of order against the conference 
report to H.R. 2810 and its consideration includes a waiver of 
the following:
     Clause 5 of rule XXII, which prohibits House 
conferees from agreeing to certain Senate amendments proposing 
an appropriation on a bill other than a general appropriation 
bill.
     Clause 9 of rule XXII, which prohibits the 
inclusion of matter in a conference report not committed to the 
conference by either House and;
     Section 306 of the Congressional Budget Act, which 
prohibits consideration of legislation within the jurisdiction 
of the Committee on the Budget unless referred to or reported 
by the Budget Committee.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 140

    Motion by Ms. Slaughter to report an open rule. Defeated: 
2-8

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................  ............  Ms. Slaughter.....................          Yea
Mr. Woodall.....................................          Nay   Mr. McGovern......................  ............
Mr. Burgess.....................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Collins.....................................          Nay   Mr. Polis.........................  ............
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Buck........................................          Nay
Ms. Cheney......................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 141

    Motion by Mr. Woodall to report the rule. Adopted: 8-2

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................  ............  Ms. Slaughter.....................          Nay
Mr. Woodall.....................................          Yea   Mr. McGovern......................  ............
Mr. Burgess.....................................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Collins.....................................          Yea   Mr. Polis.........................  ............
Mr. Byrne.......................................          Yea
Mr. Newhouse....................................          Yea
Mr. Buck........................................          Yea
Ms. Cheney......................................          Yea
Mr. Sessions, Chairman..........................          Yea
----------------------------------------------------------------------------------------------------------------

 SUMMARY OF THE AMENDMENT TO H.R. 2874 IN PART A CONSIDERED AS ADOPTED

    Duffy (WI), Hensarling (TX), Barr (KY), Budd (NC), Davidson 
(OH), Hill (AR), Huizenga (MI), Kustoff (TN), Loudermilk (GA), 
Love (UT), MacArthur (NJ), McHenry (NC), Mooney (WV), Poliquin 
(ME), Ross (FL), Rothfus (PA), Royce (CA), Stivers (OH), Trott 
(MI), Williams (TX), Zeldin (NY): Reauthorizes the National 
Flood Insurance Program (NFIP) for five years. Institutes 
several programmatic reforms and changes to strength the 
solvency of the NFIP, provide new benefits to policyholders, 
and provide new options for lower-cost flood insurance 
coverage. The substitute combines the amended text of H.R. 2874 
with the versions of the following other Financial Services-
reported NFIP bills: H.R. 1422, H.R. 1558, H.R. 2246, H.R. 
2565, H.R. 2868, and H.R. 2875.

 SUMMARY OF THE AMENDMENT TO H.R. 2874 IN PART B CONSIDERED AS ADOPTED

    Duffy (WI): Allows future residential structures continued 
access to both NFIP and private flood coverage, establish 
January 1, 2019 as the effective date for commercial properties 
to opt-out of the NFIP, and correct a technical error in 
Section 607 regarding improved disclosure requirements.

      PART A--TEXT OF AMENDMENT TO H.R. 2874 CONSIDERED AS ADOPTED

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``21st Century 
Flood Reform Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title and table of contents.

            TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

Sec. 101. Extension of National Flood Insurance Program.
Sec. 102. Annual limitation on premium increases.
Sec. 103. Flood insurance affordability program.
Sec. 104. Disclosure of premium methodology.
Sec. 105. Consideration of coastal and inland locations in premium 
          rates.
Sec. 106. Monthly installment payment of premiums.
Sec. 107. Enhanced clear communication of flood risks.
Sec. 108. Availability of flood insurance information upon request.
Sec. 109. Disclosure of flood risk information upon transfer of 
          property.
Sec. 110. Voluntary community-based flood insurance pilot program.
Sec. 111. Use of replacement cost in determining premium rates.
Sec. 112. Cap on premiums.
Sec. 113. Premium rates for certain mitigated properties.
Sec. 114. Study of flood insurance coverage for units in cooperative 
          housing.
Sec. 115. Pilot program for properties with preexisting conditions.
Sec. 116. Federal Flood Insurance Advisory Committee.
Sec. 117. Interagency guidance on compliance.
Sec. 118. GAO study of claims adjustment practices.
Sec. 119. GAO study of flood insurance coverage treatment of earth 
          movement.
Sec. 120. Definitions.

 TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

Sec. 201. Private flood insurance.
Sec. 202. Opt-out of mandatory coverage requirement for commercial 
          properties.
Sec. 203. Elimination of non-compete requirement.
Sec. 204. Public availability of program information.
Sec. 205. Refund of premiums upon cancellation of policy because of 
          replacement with private flood insurance.
Sec. 206. GAO study of flood damage savings accounts.
Sec. 207. Demonstration program for flood damage savings accounts.

                       TITLE III--MAPPING FAIRNESS

Sec. 301. Use of other risk assessment tools in determining premium 
          rates.
Sec. 302. Appeals regarding existing flood maps.
Sec. 303. Appeals and publication of projected special flood hazard 
          areas.
Sec. 304. Communication and outreach regarding map changes.
Sec. 305. Sharing and use of maps and data.
Sec. 306. Community flood maps.

    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

Sec. 401. Provision of Community Rating System premium credits to 
          maximum number of communities practicable.
Sec. 402. Community accountability for repetitively flooded areas.
Sec. 403. Increased cost of compliance coverage.

                       TITLE V--PROGRAM INTEGRITY

Sec. 501. Independent actuarial review.
Sec. 502. Adjustments to homeowner flood insurance affordability 
          surcharge.
Sec. 503. National Flood Insurance Reserve Fund compliance.
Sec. 504. Designation and treatment of multiple-loss properties.
Sec. 505. Elimination of coverage for properties with excessive lifetime 
          claims.
Sec. 506. Prohibition of new coverage for structures with high-value 
          replacement costs.
Sec. 507. Pay for performance and streamlining costs and reimbursement.
Sec. 508. Enforcement of mandatory purchase requirements.
Sec. 509. Satisfaction of mandatory purchase requirement in States 
          allowing all-perils policies.
Sec. 510. Flood insurance purchase requirements.
Sec. 511. Clarifications; deadline for approval of claims.
Sec. 512. Risk transfer requirement.
Sec. 513. GAO study of simplification of National Flood Insurance 
          Program.
Sec. 514. GAO study on enforcement of mandatory purchase requirements.

                    TITLE VI--ADMINISTRATIVE REFORMS

Sec. 601. Penalties for fraud and false statements in the National Flood 
          Insurance Program.
Sec. 602. Enhanced policyholder appeals process rights.
Sec. 603. Deadline for approval of claims.
Sec. 604. Litigation process oversight and reform.
Sec. 605. Prohibition on hiring disbarred attorneys.
Sec. 606. Technical assistance reports.
Sec. 607. Improved disclosure requirement for standard flood insurance 
          policies.
Sec. 608. Reserve Fund amounts.
Sec. 609. Sufficient staffing for Office of Flood Insurance Advocate.
Sec. 610. Limited exemption for disaster or catastrophe claims 
          adjusters.

           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

SEC. 101. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

  (a) Financing.--Section 1309(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
striking ``September 30, 2017'' and inserting ``September 30, 
2022''.
  (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2017'' and inserting ``September 30, 2022''.

SEC. 102. ANNUAL LIMITATION ON PREMIUM INCREASES.

  Section 1308(e) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4015(e)) is amended--
          (1) in paragraph (1), by striking ``18 percent'' and 
        inserting ``15 percent''; and
          (2) in paragraph (2)--
                  (A) by striking ``5 percent'' and inserting 
                ``6.5 percent''; and
                  (B) by inserting before the semicolon at the 
                end the following: ``, except that (A) during 
                the 12-month period on the date of the 
                enactment of the 21st Century Flood Reform Act 
                this paragraph shall be applied by substituting 
                `5 percent' for `6.5 percent', (B) during the 
                12-month period beginning upon the expiration 
                of the period referred to in clause (A), this 
                paragraph shall be applied by substituting `5.5 
                percent' for `6.5 percent', and (C) during the 
                12-month period beginning upon the expiration 
                of the period referred to in clause (B), this 
                paragraph shall be applied by substituting `6.0 
                percent' for `6.5 percent'''.

SEC. 103. FLOOD INSURANCE AFFORDABILITY PROGRAM.

  Chapter I of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.) is amended by adding at the end the 
following new section:

``SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.

  ``(a) Authority.--The Administrator shall carry out a program 
under this section to provide financial assistance, through 
State programs carried out by participating States, for 
eligible low-income households residing in eligible properties 
to purchase policies for flood insurance coverage made 
available under this title.
  ``(b) Participation.--Participation in the program under this 
section shall be voluntary on the part of a State or consortium 
of States.
  ``(c) State Administration.--Each participating State shall 
delegate to a State agency or nonprofit organization the 
responsibilities for administrating the State's program under 
this section.
  ``(d) Eligible Households.--
          ``(1) In general.--During any fiscal year, assistance 
        under the program under this section may be provided 
        only for a household that has an income, as determined 
        for such fiscal year by the participating State in 
        which such household resides, that is less than the 
        income limitation established for such fiscal year for 
        purposes of the State program by the participating 
        State, except that--
                  ``(A) assistance under the program under this 
                section may not be provided for a household 
                having a income that exceeds the greater of--
                          ``(i) the amount equal to 150 percent 
                        of the poverty level for such State; or
                          ``(ii) the amount equal to 60 percent 
                        of the median income of households 
                        residing in such State; and
                  ``(B) a State may not exclude a household 
                from eligibility in a fiscal year solely on the 
                basis of household income if such income is 
                less than 110 percent of the poverty level for 
                the State in which such household resides.
          ``(2) State verification of income eligibility.--In 
        verifying income eligibility for purposes of paragraph 
        (1), the participating State may apply procedures and 
        policies consistent with procedures and policies used 
        by the State agency administering programs under part A 
        of title IV of the Social Security Act (42 U.S.C. 601 
        et seq.), under title XX of the Social Security Act (42 
        U.S.C. 1397 et seq.), under subtitle B of title VI of 
        the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 9901 et seq.; relating to community services 
        block grant program), under any other provision of law 
        that carries out programs which were administered under 
        the Economic Opportunity Act of 1964 (42 U.S.C. 2701 et 
        seq.) before August 13, 1981, or under other income 
        assistance or service programs (as determined by the 
        State).
          ``(3) Certification by state of eligibility 
        households.--For each fiscal year, each participating 
        State shall certify to the Administrator compliance of 
        households who are to be provided assistance under the 
        State program during such fiscal year with the income 
        requirements under paragraph (1).
  ``(e) Eligible Properties.--Assistance under the program 
under this section may be provided only for a residential 
property--
          ``(1) that has 4 or fewer residences;
          ``(2) that is owned and occupied by an eligible 
        household;
          ``(3) for which a base flood elevation is identified 
        on a flood insurance rate map of the Administrator that 
        is in effect;
          ``(4) for which such other information is available 
        as the Administrator considers necessary to determine 
        the flood risk associated with such property; and
          ``(5) that is located in a community that is 
        participating in the national flood insurance program.
  ``(f) Types of Assistance.--Under the program under this 
section, a participating State shall elect to provide financial 
assistance for eligible households in one of the following 
forms:
          ``(1) Limitation on rate increases.--By establishing 
        a limitation on the rate of increases in the amount of 
        chargeable premiums paid by eligible households for 
        flood insurance coverage made available under this 
        title.
          ``(2) Limitation on rates.--By establishing a 
        limitation on the amount of chargeable premiums paid by 
        eligible households for flood insurance coverage made 
        available under this title.
  ``(g) Notification to FEMA.--Under the program under this 
section, a participating State shall, on a fiscal year basis 
and at the time and in the manner provided by the 
Administrator--
          ``(1) identify for the Administrator the eligible 
        households residing in the State who are to be provided 
        assistance under the State program during such fiscal 
        year; and
          ``(2) notify the Administrator of the type and levels 
        of assistance elected under subsection (f) to be 
        provided under the State program with respect to such 
        eligible households residing in the State.
  ``(h) Amount of Assistance.--Under the program under this 
section, in each fiscal year the Administrator shall, 
notwithstanding section 1308, make flood insurance coverage 
available for purchase by households identified as eligible 
households for such fiscal year by a participating State 
pursuant to subsection (e) at chargeable premium rates that are 
discounted by an amount that is based on the type and levels of 
assistance elected pursuant to subsection (f) by the 
participating State for such fiscal year.
  ``(i) Billing Statement.--In the case of an eligible 
household for which assistance under the program under this 
section is provided with respect to a policy for flood 
insurance coverage, the annual billing statement for such 
policy shall include statements of the following amounts:
          ``(1) The estimated risk premium rate for the 
        property under section 1307(a)(1).
          ``(2) If applicable, the estimated risk premium rate 
        for the property under section 1307(a)(2).
          ``(3) The chargeable risk premium rate for the 
        property taking into consideration the discount 
        pursuant to subsection (h).
          ``(4) The amount of the discount pursuant to 
        subsection (h) for the property.
          ``(5) The number and dollar value of claims filed for 
        the property, over the life of the property, under a 
        flood insurance policy made available under the Program 
        and the effect, under this Act, of filing any further 
        claims under a flood insurance policy with respect to 
        that property.
  ``(j) Funding Through State Affordability Surcharges.--
          ``(1) Imposition and collection.--Notwithstanding 
        section 1308, for each fiscal year in which flood 
        insurance coverage under this title is made available 
        for properties in a participating State at chargeable 
        premium rates that are discounted pursuant to 
        subsection (f), the Administrator shall impose and 
        collect a State affordability surcharge on each policy 
        for flood insurance coverage for a property located in 
        such participating State that is (A) not a residential 
        property having 4 or fewer residences, or (B) is such a 
        residential property but is owned by a household that 
        is not an eligible household for purposes of such 
        fiscal year.
          ``(2) Amount.--The amount of the State affordability 
        surcharge imposed during a fiscal year on each such 
        policy for a property in a participating State shall 
        be--
                  ``(A) sufficient such that the aggregate 
                amount of all such State affordability 
                surcharges imposed on properties in such 
                participating State during such fiscal year is 
                equal to the aggregate amount by which all 
                policies for flood insurance coverage under 
                this title sold during such fiscal year for 
                properties owned by eligible households in the 
                participating State are discounted pursuant to 
                subsection (f); and
                  ``(B) the same amount for each property in 
                the participating State being charged such a 
                surplus.
  ``(k) Treatment of Other Surcharges.--The provision of 
assistance under the program under this section with respect to 
any property and any limitation on premiums or premium 
increases pursuant to subsection (f) for the property shall not 
affect the applicability or amount of any surcharge under 
section 1308A for the property, of any increase in premiums 
charged for the property pursuant to section 1310A(c), or of 
any equivalency fee under section 1308B for the property.
  ``(l) Definitions.--For purposes of this section, the 
following definitions shall apply:
          ``(1) Participating state.--The term `participating 
        State' means, with respect to a fiscal year, a State 
        that is participating in the program under this section 
        for such fiscal year.
          ``(2) Eligible household.--The term `eligible 
        household' means, with respect to a fiscal year and a 
        participating State, a household that has an income 
        that is less than the amount of the income limitation 
        for the fiscal year established for purposes of the 
        State program of such participating State pursuant to 
        subsection (g)(1).
          ``(3) Poverty level.--The term `poverty level'' 
        means, with respect to a household in any State, the 
        income poverty line as prescribed and revised at least 
        annually pursuant to section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)), as 
        applicable to such State.
          ``(4) State.--The term `State' shall include a 
        consortium of States established for purposes of 
        administrating the program under this section with 
        respect to the member States of the consortium.
          ``(5) State program.--The term `State program' means 
        a program carried out in compliance with this section 
        by a participating State in conjunction with the 
        program under this section of the Administrator.
  ``(m) Regulations.--The Administrator shall issue such 
regulations as may be necessary to carry out the program under 
this section.''.

SEC. 104. DISCLOSURE OF PREMIUM METHODOLOGY.

  Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended by adding at the end the following new 
subsection:
  ``(n) Disclosure of Premium Methodology.--
          ``(1) Disclosure.--Six months prior to the effective 
        date of risk premium rates, the Administrator shall 
        cause to be published in the Federal Register an 
        explanation of the bases for, and methodology used to 
        determine, the chargeable premium rates to be effective 
        for flood insurance coverage under this title.
          ``(2) Alignment with industry practices.--The 
        disclosure required under paragraph (1) shall, to the 
        extent practicable, be aligned with industry patterns 
        and practices and shall include information and data 
        recommended by the State insurance commissioners 
        guidelines on rate filings.
          ``(3) Public meetings.--The Administrator shall, on 
        an annual basis, hold at least one public meeting in 
        each of the geographical regions of the United States, 
        as defined by the Administrator for purposes of the 
        National Flood Insurance Program, for the purpose of 
        explaining the methodology described in paragraph (1) 
        and answering questions and receiving comments 
        regarding such methodology. The Administrator shall 
        provide notice of each such public meeting in advance, 
        in such manner, and in using such means as are 
        reasonably designed to notify interested parties and 
        members of the public of the date and time, location, 
        and purpose of such meeting, and of how to submit 
        questions or comments.''.

SEC. 105. CONSIDERATION OF COASTAL AND INLAND LOCATIONS IN PREMIUM 
                    RATES.

  (a) Estimates of Premium Rates.--Subparagraph (A) of section 
1307(a)(1) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4014(a)(1)(A)) is amended--
          (1) in clause (i), by striking ``and'' at the end; 
        and
          (2) by adding at the end the following new clause:
                          ``(iii) the differences in flood risk 
                        for properties impacted by coastal 
                        flood risk and properties impacted by 
                        riverine, or inland flood risk; and''.
  (b) Establishment of Chargeable Premium Rates.--Paragraph (1) 
of section 1308(b) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4015(b)(1)) is amended by inserting ``due to 
differences in flood risk resulting from coastal flood hazards 
and riverine, or inland flood hazards and'' after ``including 
differences in risks''.
  (c) Revised Rates.--Not later than the expiration of the two-
year period beginning on the date of the enactment of this Act, 
the Administrator of the Federal Emergency Management Agency 
shall revise risk premium rates under the National Flood 
Insurance Program to implement the amendments made by this 
section.

SEC. 106. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.

  (a) Authority.--Subsection (g) of section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is 
amended--
          (1) by striking the subsection designation and all 
        that follows through ``With respect'' and inserting the 
        following:
  ``(g) Frequency of Premium Collection.--
          ``(1) Options.--With respect''; and
          (2) by adding at the end the following:
          ``(2) Monthly installment payment of premiums.--
                  ``(A) Exemption from rulemaking.--Until such 
                time as the Administrator promulgates 
                regulations implementing paragraph (1) of this 
                subsection, the Administrator may adopt 
                policies and procedures, notwithstanding any 
                other provisions of law and in alignment and 
                consistent with existing industry escrow and 
                servicing standards, necessary to implement 
                such paragraph without undergoing notice and 
                comment rulemaking and without conducting 
                regulatory analyses otherwise required by 
                statute, regulation, or Executive order.
                  ``(B) Pilot program.--The Administrator may 
                initially implement paragraph (1) of this 
                subsection as a pilot program that provides for 
                a gradual phase-in of implementation.
                  ``(C) Policyholder protection.--The 
                Administrator may--
                          ``(i) during the 12-month period 
                        beginning on the date of the enactment 
                        of this subparagraph, charge 
                        policyholders choosing to pay premiums 
                        in monthly installments a fee for the 
                        total cost of the monthly collection of 
                        premiums not to exceed $25 annually; 
                        and
                          ``(ii) after the expiration of the 
                        12-month period referred to in clause 
                        (i), adjust the fee charged annually to 
                        cover the total cost of the monthly 
                        collection of premiums as determined by 
                        the report submitted pursuant to 
                        subparagraph (D).
                  ``(D) Report.--Not later than six months 
                after the date of the enactment of this Act, 
                the Comptroller General shall submit a report 
                to the Committee on Financial Services of the 
                House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the 
                Senate, that sets forth all of the costs 
                associated with the monthly payment of 
                premiums, including any up-front costs 
                associated with infrastructure development, the 
                impact on all policyholders including those 
                that exercise the option to pay monthly and 
                those that do not, options for minimizing the 
                costs, particularly the costs to policyholders, 
                and the feasibility of adopting practices that 
                serve to minimize costs to policyholders such 
                as automatic payments and electronic payments.
                  ``(E) Annual reports.--On an annual basis, 
                the Administrator shall report to the Committee 
                on Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate the 
                ongoing costs associated with the monthly 
                payment of premiums.''.
  (b) Implementation.--Clause (ii) of section 1307(a)(1)(B) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4014(a)(1)(B)(ii)) is amended by inserting before ``any 
administrative expenses'' the following: ``the costs associated 
with the monthly collection of premiums provided for in section 
1308(g) (42 U.S.C. 4015(g)), but only if such costs exceed the 
operating costs and allowances set forth in clause (i) of this 
subparagraph, and''.

SEC. 107. ENHANCED CLEAR COMMUNICATION OF FLOOD RISKS.

  (a) In General.--Subsection (l) of section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)) is 
amended to read as follows:
  ``(l) Clear Communications.--
          ``(1) Newly issued and renewed policies.--For all 
        policies for flood insurance coverage under the 
        National Flood Insurance Program that are newly issued 
        or renewed, the Administrator shall clearly communicate 
        to policyholders--
                  ``(A) their full flood risk determinations, 
                regardless of whether their premium rates are 
                full actuarial rates; and
                  ``(B) the number and dollar value of claims 
                filed for the property, over the life of the 
                property, under a flood insurance policy made 
                available under the Program and the effect, 
                under this Act, of filing any further claims 
                under a flood insurance policy with respect to 
                that property.''.
  (b) Effective Date.--Subsection (l) of section 1308 of the 
National Flood Insurance Act of 1968, as added by subsection 
(a) of this section, shall take effect beginning upon the 
expiration of the 12-month period that begins on the date of 
the enactment of this Act. Such subsection (l), as in effect 
immediately before the amendment made by paragraph (1), shall 
apply during such 12-month period.

SEC. 108. AVAILABILITY OF FLOOD INSURANCE INFORMATION UPON REQUEST.

  Section 1313 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4020) is amended--
          (1) by inserting ``(a) Public Information and Data.--
        '' after ``Sec. 1313.''; and
          (2) by adding at the end the following new 
        subsection:
  ``(b) Availability of Flood Insurance Information Upon 
Request.--Not later than 30 days after a request for such 
information by the current owner of a property, the 
Administrator shall provide to the owner any information, 
including historical information, available to the 
Administrator on flood insurance program coverage, payment of 
claims, and flood damages for the property at issue, and any 
information the Administrator has on whether the property owner 
may be required to purchase coverage under the National Flood 
Insurance Program due to previous receipt of Federal disaster 
assistance, including assistance provided by the Small Business 
Administration, the Department of Housing and Urban 
Development, or the Federal Emergency Management Agency, or any 
other type of assistance that subjects the property to the 
mandatory purchase requirement under section 102 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a).''.

SEC. 109. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
                    PROPERTY.

  (a) In General.--Chapter 1 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4011 et seq.), as amended by the 
preceding provisions of this Act, is further amended by adding 
at the end the following new section:

``SEC. 1327. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
                    PROPERTY.

  ``(a) Requirement for Participation in Program.--After 
September 30, 2022, no new flood insurance coverage may be 
provided under this title for any real property located in any 
area (or subdivision thereof) unless an appropriate body has 
imposed, by statute or regulation, a duty on any seller or 
lessor of improved real estate located in such area to provide 
to any purchaser or lessee of such property a property flood 
hazard disclosure which the Administrator has determined meets 
the requirements of subsection (b).
  ``(b) Disclosure Requirements.--A property flood hazard 
disclosure for a property shall meet the requirements of this 
subsection only if the disclosure--
          ``(1) is made in writing;
          ``(2) discloses any actual knowledge of the seller or 
        lessor of--
                  ``(A) prior physical damage caused by flood 
                to any building located on the property;
                  ``(B) prior insurance claims for losses 
                covered under the National Flood Insurance 
                Program or private flood insurance with respect 
                to such property;
                  ``(C) any previous notification regarding the 
                designation of the property as a multiple loss 
                property; and
                  ``(D) any Federal legal obligation to obtain 
                and maintain flood insurance running with the 
                property, such as any obligation due to a 
                previous form of disaster assistance under the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act received by any owner 
                of the property; and
          ``(3) is delivered by or on behalf of the seller or 
        lessor to the purchaser or lessee before such purchaser 
        or lessee becomes obligated under any contract for 
        purchase or lease of the property.''.
  (b) Availability of Flood Insurance Coverage.--Subsection (c) 
of section 1305 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4012(c)) is amended--
          (1) in paragraph (1), by striking ``and'' at the end;
          (2) in paragraph (2), by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(3) given satisfactory assurance that by September 
        30, 2022, property flood hazard disclosure requirements 
        will have been adopted for the area that meet the 
        requirements of section 1326.''.

SEC. 110. VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE PILOT PROGRAM.

  (a) Establishment.--The Administrator of the Federal 
Emergency Management Agency (in this section referred to as the 
``Administrator'') may carry out a community-based flood 
insurance pilot program to make available, for purchase by 
participating communities, a single, community-wide flood 
insurance policy under the National Flood Insurance Program 
that--
          (1) covers all residential and non-residential 
        properties within the community; and
          (2) satisfies, for all such properties within the 
        community, the mandatory purchase requirements under 
        section 102 of the Flood Disaster Protection Act of 
        1973 (42 U.S.C. 4012a).
  (b) Participation.--Participation by a community in the pilot 
program under this section shall be entirely voluntary on the 
part of the community.
  (c) Requirements for Community-wide Policies.--The 
Administrator shall ensure that a community-wide flood 
insurance policy made available under the pilot program under 
this section incorporates the following requirements:
          (1) A mapping requirement for properties covered by 
        the policy.
          (2) A cap on premiums.
          (3) A deductible.
          (4) Certification or accreditation of mitigation 
        infrastructure when available and appropriate.
          (5) A community audit.
          (6) The Community Rating System under section 1315(b) 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4022(b)).
          (7) A method of preventing redundant claims payments 
        by the National Flood Insurance Program in the case of 
        a claim by an individual property owner who is covered 
        by a community-wide flood insurance policy and an 
        individual policy obtained through the Program.
          (8) Coverage for damage arising from flooding that 
        complies with the standards under the National Flood 
        Insurance Program appropriate to the nature and type of 
        property covered.
  (d) Timing.--The Administrator may establish the 
demonstration program under this section not later than the 
expiration of the 180-day period beginning on the date of the 
enactment of this Act and the program shall terminate on 
September 30, 2022.
  (e) Definition of Community.--For purposes of this section, 
the term ``community'' means any unit of local government, 
within the meaning given such term under the laws of the 
applicable State.

SEC. 111. USE OF REPLACEMENT COST IN DETERMINING PREMIUM RATES.

  (a) Study of Risk Rating Redesign Flood Insurance Premium 
Rating Options.--
          (1) Study.--The Administrator of the Federal 
        Emergency Management Agency shall conduct a study to--
                  (A) evaluate insurance industry best 
                practices for risk rating and classification, 
                including practices related to replacement cost 
                value in premium rate estimations;
                  (B) assess options, methods, and strategies 
                for including replacement cost value in the 
                Administrator's estimates under section 
                1307(a)(1) of the National Flood Insurance Act 
                of 1968 (42 U.S.C. 4014(a)(1));
                  (C) provide recommendations for including 
                replacement cost value in the estimate of the 
                risk premium rates for flood insurance under 
                such section 1307(a)(1);
                  (D) identify an appropriate methodology to 
                incorporate replacement cost value into the 
                Administrator's estimates under such section 
                1307(a)(1);
                  (E) develop a feasible implementation plan 
                and projected timeline for including 
                replacement cost value in the estimates of risk 
                premium rates for flood insurance made 
                available under the National Flood Insurance 
                Program.
          (2) Report.--
                  (A) Requirement.--Not later than the 
                expiration of the 12-month period beginning on 
                the date of the enactment of this Act, the 
                Administrator shall submit to the Committee on 
                Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate a 
                report that contains the results and 
                conclusions of the study required under 
                paragraph (1).
                  (B) Contents.--The report submitted under 
                subparagraph (A) shall include--
                          (i) an analysis of the 
                        recommendations resulting from the 
                        study under paragraph (1) and any 
                        potential impacts on the National Flood 
                        Insurance Program, including cost 
                        considerations;
                          (ii) a description of any actions 
                        taken by the Administrator to implement 
                        the study recommendations; and
                          (iii) a description of any study 
                        recommendations that have been deferred 
                        or not acted upon, together with a 
                        statement explaining the reasons for 
                        such deferral or inaction.
  (b) Use of Replacement Cost Value in Premium Rates; 
Implementation.--
          (1) Estimated rates.--Paragraph (1) of section 
        1307(a) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4014(a)(1)) is amended, in the matter preceding 
        subparagraph (A), by inserting after ``flood 
        insurance'' the following: ``, which shall incorporate 
        replacement cost value, and''.
          (2) Chargeable rates.--Subsection (b) of section 1308 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4015(b)) is amended, in the matter preceding paragraph 
        (1), by inserting after ``Such rates'' the following: 
        ``shall incorporate replacement cost value and''.
          (3) Effective date.--The amendments under paragraphs 
        (1) and (2) of this subsection shall be made upon the 
        expiration of the 12-month period beginning on the date 
        of the enactment of this Act.
          (4) Applicability and phase-in.--The Administrator of 
        the Federal Emergency Management Agency shall apply the 
        amendments under paragraphs (1) and (2) to flood 
        insurance coverage made available under the National 
        Flood Insurance Act of 1968 for properties located in 
        various geographic regions in the United States such 
        that--
                  (A) over the period beginning upon the 
                expiration of the period referred to in 
                paragraph (3) of this subsection and ending on 
                December 31, 2020, the requirement under such 
                amendments shall be gradually phased in 
                geographically throughout the United States as 
                sufficient information for such implementation 
                becomes available; and
                  (B) after the expiration of such period 
                referred to in subparagraph (A), such 
                amendments shall apply to all flood insurance 
                coverage made available under the National 
                Flood Insurance Act of 1968.

SEC. 112. CAP ON PREMIUMS.

  Paragraph (1) of section 1308(e) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(e)(1)) is amended--
          (1) by striking ``except --'' and inserting ``except 
        as provided in paragraph (4); and'';
          (2) by striking subparagraphs (A) and (B);
          (3) in subparagraph (C)--
                  (A) in clause (ii), by redesignating 
                subclauses (I) and (II) as items (aa) and (bb), 
                respectively;
                  (B) by redesignating clauses (i) through 
                (iii) as subclauses (I) through (III), 
                respectively; and
                  (C) by striking ``(C) in the case of a 
                property that--'' and inserting the following:
          ``(B) The limitations under clauses (i) and (ii) of 
        subparagraph (A) shall not apply in the case of--
                  ``(i) a property identified under section 
                1307(g); or
                  ``(ii) a property that--'';
          (4) by striking ``under this title for any property'' 
        and inserting the following: ``under this title--
                  ``(i) for any property'';
          (5) by inserting ``(A) subject to subparagraph (B),'' 
        after the paragraph designation; and
          (6) by inserting before subparagraph (B), as so 
        redesignated by the amendment made by paragraph (3)(C) 
        of this section, the following new clause:
                  ``(ii) for any residential property having 4 
                or fewer residences and for which there is 
                elevation data meeting standards of the 
                Administrator, may not exceed $10,000 in any 
                single year, except that such amount (as it may 
                have been previously adjusted) shall be 
                adjusted for inflation by the Administrator 
                upon the expiration of the 5-year period 
                beginning upon the date of the enactment of the 
                21st Century Flood Reform Act and upon the 
                expiration of each successive 5-year period 
                thereafter, in accordance with an inflationary 
                index selected by the Administrator.''.

SEC. 113. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.

  (a) Mitigation Strategies.--Paragraph (1) of section 1361(d) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102(d)(1)) is amended--
          (1) in subparagraph (A), by striking ``and'' at the 
        end;
          (2) in subparagraph (B), by striking ``and'' at the 
        end; and
          (3) by inserting after subparagraph (B) the following 
        new subparagraphs:
                  ``(C) with respect to buildings in dense 
                urban environments, methods that can be 
                deployed on a block or neighborhood scale; and
                  ``(D) elevation of mechanical systems; and''.
  (b) Mitigation Credit.--Subsection (k) of section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is 
amended--
          (1) by striking ``shall take into account'' and 
        inserting the following: ``shall--
          ``(1) take into account'';
          (2) in paragraph (1), as so designated by the 
        amendment made by paragraph (1) of this subsection, by 
        striking the period at the end and inserting ``; and''; 
        and
          (3) by adding at the end the following new paragraph:
          ``(2) offer a reduction of the risk premium rate 
        charged to a policyholder, as determined by the 
        Administrator, if the policyholder implements any 
        mitigation method described in paragraph (1).''.

SEC. 114. STUDY OF FLOOD INSURANCE COVERAGE FOR UNITS IN COOPERATIVE 
                    HOUSING.

  The Administrator of the Federal Emergency Management Agency 
shall conduct a study to analyze and determine the feasibility 
of providing flood insurance coverage under the National Flood 
Insurance Program under the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.) for individual dwelling units in 
cooperative housing projects. Not later than the expiration of 
the 24-month period beginning on the date of the enactment of 
this Act, the Administrator shall submit a report to the 
Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate regarding the findings and conclusions of the study 
conducted pursuant to this section, which shall include a plan 
setting forth specific actions to implement the development of 
such flood insurance coverage.

SEC. 115. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING CONDITIONS.

  Section 1311 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4018) is amended by adding at the end the following new 
subsection:
  ``(c) Pilot Program for Investigation of Preexisting 
Structural Conditions.--
          ``(1) Voluntary program.--The Administrator shall 
        carry out a pilot program under this subsection to 
        provide for companies participating in the Write Your 
        Own program (as such term is defined in section 1370(a) 
        (42 U.S.C. 4121(a))) to investigate preexisting 
        structural conditions of insured properties and 
        potentially insured properties that could result in the 
        denial of a claim under a policy for flood insurance 
        coverage under this title in the event of a flood loss 
        to such property. Participation in the pilot program 
        shall be voluntary on the part of Write Your Own 
        companies.
          ``(2) Investigation of properties.--Under the pilot 
        program under this subsection, a Write Your Own company 
        participating in the program shall--
                  ``(A) provide in policies for flood insurance 
                coverage under this title covered by the 
                program that, upon the request of the 
                policyholder, the company shall provide for--
                          ``(i) an investigation of the 
                        property covered by such policy, using 
                        common methods, to determine whether 
                        preexisting structural conditions are 
                        present that could result in the denial 
                        of a claim under such policy for flood 
                        losses; and
                          ``(ii) if such investigation is not 
                        determinative, an on-site inspection of 
                        the property to determine whether such 
                        preexisting structural conditions are 
                        present;
                  ``(B) upon completion of an investigation or 
                inspection pursuant to subparagraph (A) that 
                determines that such a preexisting structural 
                condition is present or absent, submit a report 
                to the policyholder and Administrator 
                describing the condition; and
                  ``(C) impose a surcharge on each policy 
                described in subparagraph (A) in such amount 
                that the Administrator determines is 
                appropriate to cover the costs of 
                investigations and inspections performed 
                pursuant to such policies and reimburse Write 
                Your Own companies participating in the program 
                under this subsection for such costs.
          ``(3) Interim report.--Not later than December 31, 
        2021, the Administrator shall submit a report to the 
        Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate describing the 
        operation of the pilot program to that date.
          ``(4) Sunset.--The Administrator may not provide any 
        policy for flood insurance described in paragraph 
        (2)(A) after December 31, 2022.
          ``(5) Final report.--Not later than March 31, 2023, 
        the Administrator shall submit a final report regarding 
        the pilot program under this section to the Committee 
        on Financial Services of the House of Representatives 
        and the Committee on Banking, Housing, and Urban 
        Affairs of the Senate. The report shall include any 
        findings and recommendations of the Administrator 
        regarding the pilot program.''.

SEC. 116. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.

  (a) Establishment.--There is established an advisory 
committee to be known as the Federal Flood Insurance Advisory 
Committee (in this section referred to as the ``Committee'').
  (b) Membership.--
          (1) Members.--The Committee shall consist of--
                  (A) the Administrator of the Federal 
                Emergency Management Agency (in this section 
                referred to as the ``Administrator''), or the 
                designee thereof;
                  (B) the Secretary of the Treasury, or the 
                designee thereof; and
                  (C) additional members appointed by the 
                Administrator or the designee of the 
                Administrator, who shall be--
                          (i) two representatives of the 
                        property and casualty insurance sector;
                          (ii) one individual who served in the 
                        past, or is currently serving, as an 
                        insurance regulator of a State, the 
                        District of Columbia, the Commonwealth 
                        of Puerto Rico, Guam, the Commonwealth 
                        of the Northern Mariana Islands, the 
                        Virgin Islands, American Samoa, or any 
                        federally-recognized Indian tribe;
                          (iii) one representative of the 
                        financial or insurance sectors who is 
                        involved in risk transfers, including 
                        reinsurance, resilience bonds, and 
                        other insurance-linked securities;
                          (iv) one actuary with demonstrated 
                        high-level knowledge of catastrophic 
                        risk insurance;
                          (v) two insurance professionals with 
                        demonstrated experience with the sale 
                        of flood insurance under the National 
                        Flood Insurance Program;
                          (vi) two representatives of 
                        catastrophic risk insurance programs;
                          (vii) one insurance claims 
                        specialist;
                          (viii) one representative of a 
                        recognized consumer advocacy 
                        organization;
                          (ix) one individual having 
                        demonstrated expertise in the 
                        challenges in insuring low-income 
                        communities;
                          (x) one representative from an 
                        academic institution who has 
                        demonstrated expertise in insurance; 
                        and
                          (xi) such other recognized experts in 
                        the field of insurance as the 
                        Administrator considers necessary.
          (2) Qualifications.--In appointing members under 
        paragraph (1)(C), the Administrator shall, to the 
        maximum extent practicable, ensure the membership of 
        the Committee has a balance of members reflecting 
        geographic diversity, including representation from 
        areas inland or with coastline identified by the 
        Administrator as at high risk for flooding or as areas 
        having special flood hazards.
  (c) Duties.--The Committee shall review, and make 
recommendations to the Administrator, upon request, on matters 
related to the insurance aspects of the National Flood 
Insurance Program, including ratemaking, technology to 
administer insurance, risk assessment, actuarial practices, 
claims practices, sales and insurance delivery, compensation 
and allowances, generally and based on the complexities of the 
program, and best insurance practices.
  (d) Chairperson.--The members of the Committee shall elect 
one member to serve as the chairperson of the Committee (in 
this section referred to as the ``Chairperson'').
  (e) Compensation.--Members of the Committee shall receive no 
additional compensation by reason of their service on the 
Committee.
  (f) Meetings and Actions.--
          (1) In general.--The Committee shall meet not less 
        frequently than twice each year at the request of the 
        Chairperson or a majority of its members, and may take 
        action by a vote of the majority of the members in 
        accordance with the Committee's charter.
          (2) Initial meeting.--The Administrator, or a person 
        designated by the Administrator, shall request and 
        coordinate the initial meeting of the Committee.
  (g) Staff of FEMA.--Upon the request of the Chairperson, the 
Administrator may detail, on a nonreimbursable basis, personnel 
of the Federal Emergency Management Agency to assist the 
Committee in carrying out its duties.
  (h) Powers.--In carrying out this section, the Committee may 
hold hearings, receive evidence and assistance, provide 
information, and conduct research, as it considers appropriate.
  (i) Reports to Congress.--The Administrator, on an annual 
basis, shall report to the Committee on Financial Services of 
the House of Representatives, the Committee on Banking, 
Housing, and Urban Affairs of the Senate, and the Office of 
Management and Budget on--
          (1) the recommendations made by the Committee;
          (2) actions taken by the Federal Emergency Management 
        Agency to address such recommendations to improve the 
        insurance aspects of the national flood insurance 
        program; and
          (3) any recommendations made by the Committee that 
        have been deferred or not acted upon, together with an 
        explanatory statement.

SEC. 117. INTERAGENCY GUIDANCE ON COMPLIANCE.

  The Federal entities for lending regulation (as such term is 
defined in section 3(a) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4003(a))), in consultation with the 
Administrator of the Federal Emergency Management Agency, shall 
update and reissue the document entitled ``Interagency 
Questions and Answers Regarding Flood Insurance'' not later 
than the expiration of the 12-month period beginning on the 
date of the enactment of this Act and not less frequently than 
biennially thereafter.

SEC. 118. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.

  The Comptroller General of the United States shall conduct a 
study of the policies and practices for adjustment of claims 
for losses under flood insurance coverage made available under 
the National Flood Insurance Act, which shall include--
          (1) a comparison of such policies and practices with 
        the policies and practices for adjustment of claims for 
        losses under other insurance coverage;
          (2) an assessment of the quality of the adjustments 
        conducted and the effects of such policies and 
        practices on such quality;
          (3) identification of any incentives under such 
        policies and practices that affect the speed with which 
        such adjustments are conducted; and
          (4) identification of the affects of such policies 
        and practices on insureds submitting such claims for 
        losses.

SEC. 119. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF EARTH 
                    MOVEMENT.

  The Comptroller General of the United States shall conduct a 
study of the treatment, under flood insurance coverage made 
available under the National Flood Insurance Act, of earth 
movement and subsidence, including earth movement and 
subsidence caused by flooding, which shall include--
          (1) identification and analysis of the effects of 
        such treatment on the National Flood Insurance Program 
        and insureds under the program;
          (2) an assessment of the availability and 
        affordability of coverage in the private insurance 
        market for earth movement and subsidence caused by 
        flooding;
          (3) an assessment of the effects on the National 
        Flood Insurance Program of covering earth movement and 
        subsidence caused by flooding; and
          (4) a projection of the increased premiums that would 
        be required to make coverage for earth movement losses 
        actuarially sound and not fiscally detrimental to the 
        continuation of the National Flood Insurance Program.

SEC. 120. DEFINITIONS.

  (a) National Flood Insurance Act of 1968.--Subsection (a) of 
section 1370 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4121(a)) is amended--
          (1) in paragraph (14), by striking ``and'' at the 
        end;
          (2) in paragraph (15), by striking the period at the 
        end and inserting a semicolon; and
          (3) by adding at the end the following new 
        paragraphs:
          ``(16) the term `Write Your Own Program' means the 
        program under which the Federal Emergency Management 
        Agency enters into a standard arrangement with private 
        property insurance companies to sell contracts for 
        flood insurance coverage under this title under their 
        own business lines of insurance, and to adjust and pay 
        claims arising under such contracts; and
          ``(17) the term `Write Your Own company' means a 
        private property insurance company that participates in 
        the Write Your Own Program.''.
  (b) Biggert-Waters Flood Insurance Reform Act of 2012.--
Subsection (a) of section 100202 of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4004(a)) is amended by 
striking paragraph (5) and inserting the following new 
paragraph:
          ``(5) Write your own.--The terms `Write Your Own 
        Program' and `Write Your Own company' have the meanings 
        given such terms in section 1370(a) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4121(a)).''.

TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

SEC. 201. PRIVATE FLOOD INSURANCE.

  (a) Mandatory Purchase Requirement.--
          (1) Amount and term of coverage.--Section 102 of the 
        Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) 
        is amended by striking ``Sec. 102. (a)'' and all that 
        follows through the end of subsection (a) and inserting 
        the following:
  ``Sec. 102. (a) Amount and Term of Coverage.--After the 
expiration of sixty days following the date of the enactment of 
this Act, no Federal officer or agency shall approve any 
financial assistance for acquisition or construction purposes 
for use in any area that has been identified by the 
Administrator as an area having special flood hazards and in 
which the sale of flood insurance has been made available under 
the National Flood Insurance Act of 1968, unless the building 
or mobile home and any personal property to which such 
financial assistance relates is covered by flood insurance: 
Provided, That the amount of flood insurance (1) in the case of 
Federal flood insurance, is at least equal to the development 
or project cost of the building, mobile home, or personal 
property (less estimated land cost), the outstanding principal 
balance of the loan, or the maximum limit of Federal flood 
insurance coverage made available with respect to the 
particular type of property, whichever is less; or (2) in the 
case of private flood insurance, is at least equal to the 
development or project cost of the building, mobile home, or 
personal property (less estimated land cost), the outstanding 
principal balance of the loan, or the maximum limit of Federal 
flood insurance coverage made available with respect to the 
particular type of property, whichever is less: Provided 
further, That if the financial assistance provided is in the 
form of a loan or an insurance or guaranty of a loan, the 
amount of flood insurance required need not exceed the 
outstanding principal balance of the loan and need not be 
required beyond the term of the loan. The requirement of 
maintaining flood insurance shall apply during the life of the 
property, regardless of transfer of ownership of such 
property.''.
          (2) Requirement for mortgage loans.--Subsection (b) 
        of section 102 of the Flood Disaster Protection Act of 
        1973 (42 U.S.C. 4012a(b)) is amended--
                  (A) by striking paragraph (7);
                  (B) by redesignating paragraph (6) as 
                paragraph (7);
                  (C) by striking the subsection designation 
                and all that follows through the end of 
                paragraph (5) and inserting the following:
  ``(b) Requirement for Mortgage Loans.--
          ``(1) Regulated lending institutions.--Each Federal 
        entity for lending regulation (after consultation and 
        coordination with the Financial Institutions 
        Examination Council established under the Federal 
        Financial Institutions Examination Council Act of 1974) 
        shall by regulation direct regulated lending 
        institutions not to make, increase, extend, or renew 
        any loan secured by improved real estate or a mobile 
        home located or to be located in an area that has been 
        identified by the Administrator as an area having 
        special flood hazards and in which flood insurance has 
        been made available under the National Flood Insurance 
        Act of 1968, unless the building or mobile home and any 
        personal property securing such loan is covered for the 
        term of the loan by flood insurance: Provided, That the 
        amount of flood insurance (A) in the case of Federal 
        flood insurance, is at least equal to the outstanding 
        principal balance of the loan or the maximum limit of 
        Federal flood insurance coverage made available with 
        respect to the particular type of property, whichever 
        is less; or (B) in the case of private flood insurance, 
        is at least equal to the outstanding principal balance 
        of the loan or the maximum limit of Federal flood 
        insurance coverage made available with respect to the 
        particular type of property, whichever is less.
          ``(2) Federal agency lenders and mortgage insurance 
        and guarantee agencies.--
                  ``(A) Federal agency lenders.--A Federal 
                agency lender may not make, increase, extend, 
                or renew any loan secured by improved real 
                estate or a mobile home located or to be 
                located in an area that has been identified by 
                the Administrator as an area having special 
                flood hazards and in which flood insurance has 
                been made available under the National Flood 
                Insurance Act of 1968, unless the building or 
                mobile home and any personal property securing 
                such loan is covered for the term of the loan 
                by flood insurance in accordance with paragraph 
                (1). Each Federal agency lender may issue any 
                regulations necessary to carry out this 
                paragraph. Such regulations shall be consistent 
                with and substantially identical to the 
                regulations issued under paragraph (1).
                  ``(B) Other federal mortgage entities.--
                          ``(i) Coverage requirements.--Each 
                        covered Federal mortgage entity shall 
                        implement procedures reasonably 
                        designed to ensure that, for any loan 
                        that--
                                  ``(I) is secured by improved 
                                real estate or a mobile home 
                                located in an area that has 
                                been identified, at the time of 
                                the origination of the loan or 
                                at any time during the term of 
                                the loan, by the Administrator 
                                as an area having special flood 
                                hazards and in which flood 
                                insurance is available under 
                                the National Flood Insurance 
                                Act of 1968, and
                                  ``(II) is made, insured, 
                                held, or guaranteed by such 
                                entity, or backs or on which is 
                                based any trust certificate or 
                                other security for which such 
                                entity guarantees the timely 
                                payment of principal and 
                                interest,
                        the building or mobile home and any 
                        personal property securing the loan is 
                        covered for the term of the loan by 
                        flood insurance in the amount provided 
                        in paragraph (1).
                          ``(ii) Definition.--For purposes of 
                        this subparagraph, the term `covered 
                        Federal mortgage entity' means--
                                  ``(I) the Secretary of 
                                Housing and Urban Development, 
                                with respect to mortgages 
                                insured under the National 
                                Housing Act;
                                  ``(II) the Secretary of 
                                Agriculture, with respect to 
                                loans made, insured, or 
                                guaranteed under title V of the 
                                Housing Act of 1949; and
                                  ``(III) the Government 
                                National Mortgage Association.
                  ``(C) Requirement to accept flood 
                insurance.--Each Federal agency lender and each 
                covered Federal mortgage entity shall accept 
                flood insurance as satisfaction of the flood 
                insurance coverage requirement under 
                subparagraph (A) or (B), respectively, if the 
                flood insurance coverage meets the requirements 
                for coverage under such subparagraph and the 
                requirements relating to financial strength 
                issued pursuant to paragraph (4).
          ``(3) Government-sponsored enterprises for housing.--
        The Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation shall implement 
        procedures reasonably designed to ensure that, for any 
        loan that is--
                  ``(A) secured by improved real estate or a 
                mobile home located in an area that has been 
                identified, at the time of the origination of 
                the loan or at any time during the term of the 
                loan, by the Administrator as an area having 
                special flood hazards and in which flood 
                insurance is available under the National Flood 
                Insurance Act of 1968, and
                  ``(B) purchased or guaranteed by such entity,
        the building or mobile home and any personal property 
        securing the loan is covered for the term of the loan 
        by flood insurance in the amount provided in paragraph 
        (1). The Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation shall accept 
        flood insurance as satisfaction of the flood insurance 
        coverage requirement under paragraph (1) if the flood 
        insurance coverage provided meets the requirements for 
        coverage under that paragraph and the requirements 
        relating to financial strength issued pursuant to 
        paragraph (4).
          ``(4) Requirements regarding financial strength.--The 
        Director of the Federal Housing Finance Agency, in 
        consultation with the Federal National Mortgage 
        Association, the Federal Home Loan Mortgage 
        Corporation, the Secretary of Housing and Urban 
        Development, the Government National Mortgage 
        Association, and the Secretary of Agriculture shall 
        develop and implement requirements relating to the 
        financial strength of private insurance companies from 
        which such entities and agencies will accept private 
        flood insurance, provided that such requirements shall 
        not affect or conflict with any State law, regulation, 
        or procedure concerning the regulation of the business 
        of insurance.
          ``(5) Applicability.--
                  ``(A) Existing coverage.--Except as provided 
                in subparagraph (B), paragraph (1) shall apply 
                on the date of enactment of the Riegle 
                Community Development and Regulatory 
                Improvement Act of 1994.
                  ``(B) New coverage.--Paragraphs (2) and (3) 
                shall apply only with respect to any loan made, 
                increased, extended, or renewed after the 
                expiration of the 1-year period beginning on 
                the date of enactment of the Riegle Community 
                Development and Regulatory Improvement Act of 
                1994. Paragraph (1) shall apply with respect to 
                any loan made, increased, extended, or renewed 
                by any lender supervised by the Farm Credit 
                Administration only after the expiration of the 
                period under this subparagraph.
                  ``(C) Continued effect of regulations.--
                Notwithstanding any other provision of this 
                subsection, the regulations to carry out 
                paragraph (1), as in effect immediately before 
                the date of enactment of the Riegle Community 
                Development and Regulatory Improvement Act of 
                1994, shall continue to apply until the 
                regulations issued to carry out paragraph (1) 
                as amended by section 522(a) of such Act take 
                effect.
          ``(6) Rule of construction.--Except as otherwise 
        specified, any reference to flood insurance in this 
        section shall be considered to include Federal flood 
        insurance and private flood insurance. Nothing in this 
        subsection shall be construed to supersede or limit the 
        authority of a Federal entity for lending regulation, 
        the Federal Housing Finance Agency, a Federal agency 
        lender, a covered Federal mortgage entity (as such term 
        is defined in paragraph (2)(B)(ii)), the Federal 
        National Mortgage Association, or the Federal Home Loan 
        Mortgage Corporation to establish requirements relating 
        to the financial strength of private insurance 
        companies from which the entity or agency will accept 
        private flood insurance, provided that such 
        requirements shall not affect or conflict with any 
        State law, regulation, or procedure concerning the 
        regulation of the business of insurance.''; and
                  (D) by adding at the end the following new 
                paragraphs:
          ``(8) Definitions.--In this section:
                  ``(A) Flood insurance.--The term `flood 
                insurance' means--
                          ``(i) Federal flood insurance; and
                          ``(ii) private flood insurance.
                  ``(B) Federal flood insurance.--The term 
                `Federal flood insurance' means an insurance 
                policy made available under the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4001 et seq.).
                  ``(C) Mutual aid society.--The term `mutual 
                aid society' means an organization--
                          ``(i) the members of which--
                                  ``(I) share a common set of 
                                ethical or religious beliefs; 
                                and
                                  ``(II) in accordance with the 
                                beliefs described in subclause 
                                (I), agree to cover expenses 
                                arising from damage to property 
                                of the members of the 
                                organization, including damage 
                                caused by flooding; and
                          ``(ii) that has a demonstrated 
                        history of fulfilling the terms of 
                        agreements to cover expenses arising 
                        from damage to property of the members 
                        of the organization caused by flooding.
                  ``(D) Private flood insurance.--The term 
                `private flood insurance' means--
                          ``(i) an insurance policy that--
                                  ``(I) is issued by an 
                                insurance company that is--
                                          ``(aa) licensed, 
                                        admitted, or otherwise 
                                        approved to engage in 
                                        the business of 
                                        insurance in the State 
                                        in which the insured 
                                        building is located, by 
                                        the insurance regulator 
                                        of that State; or
                                          ``(bb) eligible as a 
                                        nonadmitted insurer to 
                                        provide insurance in 
                                        the home State of the 
                                        insured, in accordance 
                                        with sections 521 
                                        through 527 of the 
                                        Dodd-Frank Wall Street 
                                        Reform and Consumer 
                                        Protection Act (15 
                                        U.S.C. 8201 through 
                                        8206);
                                  ``(II) is issued by an 
                                insurance company that is not 
                                otherwise disapproved as a 
                                surplus lines insurer by the 
                                insurance regulator of the 
                                State in which the property to 
                                be insured is located; and
                                  ``(III) provides flood 
                                insurance coverage that 
                                complies with the laws and 
                                regulations of that State; or
                          ``(ii) an agreement with a mutual aid 
                        society for such society to cover 
                        expenses arising from damage to 
                        property of the members of such society 
                        caused by flooding, unless the State in 
                        which the property to be insured is 
                        located has--
                                  ``(I) determined that the 
                                specific mutual aid society may 
                                not provide such coverage or 
                                provide such coverage in such 
                                manner; or
                                  ``(II) specifically provided 
                                through law or regulation that 
                                mutual aid societies may not 
                                provide such coverage or 
                                provide such coverage in such 
                                manner.
                  ``(E) State.--The term `State' means any 
                State of the United States, the District of 
                Columbia, the Commonwealth of Puerto Rico, 
                Guam, the Northern Mariana Islands, the Virgin 
                Islands, and American Samoa.''.
  (b) Effect of Private Flood Insurance Coverage on Continuous 
Coverage Requirements.--Section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015), as amended by the 
preceding provisions of this Act, is further amended by adding 
at the end the following:
  ``(o) Effect of Private Flood Insurance Coverage on 
Continuous Coverage Requirements.--For purposes of applying any 
statutory, regulatory, or administrative continuous coverage 
requirement, including under section 1307(g)(1), the 
Administrator shall consider any period during which a property 
was continuously covered by private flood insurance (as defined 
in section 102(b)(8) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(b)(8))) to be a period of continuous 
coverage.''.

SEC. 202. OPT-OUT OF MANDATORY COVERAGE REQUIREMENT FOR COMMERCIAL 
                    PROPERTIES.

  (a) Amendments to Flood Disaster Protection Act of 1973.--The 
Flood Disaster Protection Act of 1973, as amended by the 
preceding provisions of this Act, is further amended--
          (1) in section 3(a) (42 U.S.C. 4003(a))--
                  (A) in paragraph (10), by striking ``and'' at 
                the end;
                  (B) in paragraph (11), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                paragraph:
          ``(12) `residential improved real estate' means 
        improved real estate that--
                  ``(A) is primarily used for residential 
                purposes, as defined by the Federal entities 
                for lending regulation; and
                  ``(B) secures financing or financial 
                assistance provided through a federally related 
                single family loan program, as defined by the 
                Federal entities for lending regulation.''; and
          (2) in section 102 (42 U.S.C. 4012a)--
                  (A) in subsection (b)--
                          (i) in paragraph (1)--
                                  (I) by inserting 
                                ``residential'' before 
                                ``improved real estate''; and
                                  (II) by inserting 
                                ``residential'' before 
                                ``building or mobile home'';
                          (ii) in paragraph (2)--
                                  (I) by inserting 
                                ``residential'' before 
                                ``improved real estate'' each 
                                place such term appears; and
                                  (II) by inserting 
                                ``residential'' before 
                                ``building or mobile home'' 
                                each place such term appears; 
                                and
                          (iii) in paragraph (3)--
                                  (I) in subparagraph (A), by 
                                inserting ``residential'' 
                                before ``improved real 
                                estate''; and
                                  (II) in the matter after and 
                                below subparagraph (B), by 
                                inserting ``residential'' 
                                before ``building or mobile 
                                home'';
                  (B) in subsection (c)(3), by striking ``, in 
                the case of any residential property, for any 
                structure that is a part of such property'' and 
                inserting ``for any structure that is a part of 
                a residential property'';
                  (C) in subsection (e)--
                          (i) in paragraph (1)--
                                  (I) by inserting 
                                ``residential'' before 
                                ``improved real estate''; and
                                  (II) by inserting 
                                ``residential'' before 
                                ``building or mobile home'' 
                                each place such term appears; 
                                and
                          (ii) in paragraph (5)--
                                  (I) in subparagraph (A)--
                                          (aa) by inserting 
                                        ``residential'' before 
                                        ``improved real 
                                        estate'' each place 
                                        such term appears; and
                                          (bb) by inserting 
                                        ``residential'' before 
                                        ``building or mobile 
                                        home'' each place such 
                                        term appears;
                                  (II) in subparagraph (B), by 
                                inserting ``residential'' 
                                before ``building or mobile 
                                home'' each place such term 
                                appears; and
                                  (III) in subparagraph (C), by 
                                inserting ``residential'' 
                                before ``building or mobile 
                                home''; and
                  (D) in subsection (h)--
                          (i) by inserting ``residential'' 
                        before ``improved real estate'' each 
                        place such term appears; and
                          (ii) in the matter preceding 
                        paragraph (1), by inserting 
                        ``residential'' before ``building or 
                        mobile home''.
  (b) Amendments to National Flood Insurance Act of 1968.--The 
National Flood Insurance Act of 1968, as amended by the 
preceding provisions of this Act, is further amended--
          (1) in section 1364(a) (42 U.S.C. 4104a(a))--
                  (A) in paragraph (1), by inserting 
                ``residential'' before ``improved real 
                estate'';
                  (B) in paragraph (2), by inserting 
                ``residential'' before ``improved real 
                estate''; and
                  (C) in paragraph (3)(A), by inserting 
                ``residential'' before ``building'';
          (2) in section 1365 (42 U.S.C. 4104b)--
                  (A) in subsection (a)--
                          (i) by inserting ``residential'' 
                        before ``improved real estate''; and
                          (ii) by inserting ``residential'' 
                        before ``building'';
                  (B) in subsection (b)(2)--
                          (i) by inserting ``residential'' 
                        before ``building'' each place such 
                        term appears; and
                          (ii) by inserting ``residential'' 
                        before ``improved real estate'' each 
                        place such term appears;
                  (C) in subsection (d), by inserting 
                ``residential'' before ``improved real estate'' 
                each place such term appears; and
                  (D) in subsection (e)--
                          (i) by inserting ``residential'' 
                        before ``improved real estate''; and
                          (ii) by inserting ``residential'' 
                        before ``building'' each place such 
                        term appears; and
          (3) in section 1370 (42 U.S.C. 4121)--
                  (A) in paragraph (8), by inserting 
                ``residential'' before ``improved real 
                estate'';
                  (B) by redesignating paragraphs (14) through 
                (17) as paragraphs (15) through (18), 
                respectively; and
                  (C) by inserting after paragraph (13) the 
                following new paragraph:
          ``(14) the term `residential improved real estate' 
        means improved real estate that--
                  ``(A) is primarily used for residential 
                purposes, as defined by the Federal entities 
                for lending regulation; and
                  ``(B) secures financing or financial 
                assistance provided through a federally related 
                single family loan program, as defined by the 
                Federal entities for lending regulation;''.
  (c) Rule of Construction.--This section and the amendments 
made by this section may not be construed to prohibit the 
Administrator of the Federal Emergency Management Agency from 
offering flood insurance coverage under the National Flood 
Insurance Program for eligible non-residential properties, 
other residential multifamily properties, or structures 
financed with commercial loans, or to prohibit the purchase of 
such coverage for such eligible properties.

SEC. 203. ELIMINATION OF NON-COMPETE REQUIREMENT.

  Section 1345 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081) is amended by adding at the end the following new 
subsection:
  ``(f) Authority To Provide Other Flood Coverage.--
          ``(1) In general.--The Administrator may not, as a 
        condition of participating in the Write Your Own 
        Program (as such term is defined in section 1370(a)) or 
        in otherwise participating in the utilization by the 
        Administrator of the facilities and services of 
        insurance companies, insurers, insurance agents and 
        brokers, and insurance adjustment organizations 
        pursuant to the authority in this section, nor as a 
        condition of eligibility to engage in any other 
        activities under the National Flood Insurance Program 
        under this title, restrict any such company, insurer, 
        agent, broker, or organization from offering and 
        selling private flood insurance (as such term is 
        defined in section 102(b)(9) of the Flood Disaster 
        Protection Act of 1973 (42 U.S.C. 4012a(b)(9))).
          ``(2) Financial assistance/subsidy arrangement.--
        After the date of the enactment of this subsection--
                  ``(A) the Administrator may not include in 
                any agreement entered into with any insurer for 
                participation in the Write Your Own Program any 
                provision establishing a condition prohibited 
                by paragraph (1), including the provisions of 
                Article XIII of the Federal Emergency 
                Management Agency, Federal Insurance 
                Administration, Financial Assistance/Subsidy 
                Arrangement, as adopted pursuant to section 
                62.23(a) of title 44 of the Code of Federal 
                Regulations; and
                  ``(B) any such provision in any such 
                agreement entered into before such date of 
                enactment shall not have any force or effect, 
                and the Administrator may not take any action 
                to enforce such provision.''.

SEC. 204. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

  Part C of chapter II of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end 
the following new section:

``SEC. 1349. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

  ``(a) Flood Risk Information.--
          ``(1) In general.--Except as provided in paragraph 
        (2), to facilitate the National Flood Insurance Program 
        becoming a source of information and data for research 
        and development of technology that better understands 
        flooding, the risk of flooding, and the predictability 
        of perils of flooding, the Administrator shall make 
        publicly available all data, models, assessments, 
        analytical tools, and other information in the 
        possession of the Administrator relating to the 
        National Flood Insurance Program under this title that 
        is used in assessing flood risk or identifying and 
        establishing flood elevations and premiums, including--
                  ``(A) data relating to risk on individual 
                properties and loss ratio information and other 
                information identifying losses under the 
                program;
                  ``(B) current and historical policy 
                information, limited to the amount and term 
                only, for properties currently covered by flood 
                insurance and for properties that are no longer 
                covered by flood insurance;
                  ``(C) current and historical claims 
                information, limited to the date and amount 
                paid only, for properties currently covered by 
                flood insurance and for properties that are no 
                longer covered by flood insurance;
                  ``(D) identification of whether a property 
                was constructed before or after the effective 
                date of the first flood insurance rate map for 
                a community;
                  ``(E) identification of properties that have 
                been mitigated through elevation, a buyout, or 
                any other mitigation action; and
                  ``(F) identification of unmitigated multiple-
                loss properties.
          ``(2) Open source data system.--In carrying out 
        paragraph (1), the Administrator shall establish an 
        open source data system by which all information 
        required to be made publicly available by such 
        subsection may be accessed by the public on an 
        immediate basis by electronic means.
  ``(b) Community Information.--Not later than the expiration 
of the 12-month period beginning upon the date of the enactment 
of this section, the Administrator shall establish and maintain 
a publicly searchable database that provides information about 
each community participating in the National Flood Insurance 
Program, which shall include the following information:
          ``(1) The status of the community's compliance with 
        the National Flood Insurance Program, including any 
        findings of noncompliance, the status of any 
        enforcement actions initiated by a State or by the 
        Administrator, and the number of days of any such 
        continuing noncompliance.
          ``(2) The number of properties located in the 
        community's special flood hazard areas that were built 
        before the effective date of the first flood insurance 
        rate map for the community.
          ``(3) The number of properties located in the 
        community's special flood hazard areas that were built 
        after the effective date of the first flood insurance 
        rate map for the community.
          ``(4) The total number of current and historical 
        claims located outside the community's special flood 
        hazard areas.
          ``(5) The total number of multiple-loss properties in 
        the community.
          ``(6) The portion of the community, stated as a 
        percentage and in terms of square miles, that is 
        located within special flood hazard areas.
  ``(c) Identification of Properties.--The information provided 
pursuant to subsections (a) and (b) shall be based on data that 
identifies properties at the zip code or census block level, 
and shall include the name of the community and State in which 
a property is located.
  ``(d) Protection of Personally Identifiable Information.--The 
information provided pursuant to subsections (a) and (b) shall 
be disclosed in a format that does not reveal individually 
identifiable information about property owners in accordance 
with the section 552a of title 5, United States Code.
  ``(e) Definition of Loss Ratio.--For purposes of this 
section, the term `loss ratio' means, with respect to the 
National Flood Insurance Program, the ratio of the amount of 
claims paid under the Program to the amount of premiums paid 
under the Program.''.

SEC. 205. REFUND OF PREMIUMS UPON CANCELLATION OF POLICY BECAUSE OF 
                    REPLACEMENT WITH PRIVATE FLOOD INSURANCE.

  Section 1306 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4013) is amended by adding at the end the following new 
subsection:
  ``(e) Refund of Unearned Premiums for Policies Canceled 
Because of Replacement With Private Flood Insurance.--
          ``(1) Required refund.--Subject to subsection (c), if 
        at any time an insured under a policy for flood 
        insurance coverage for a property that is made 
        available under this title cancels such policy because 
        other duplicate flood insurance coverage for the same 
        property has been obtained from a source other than the 
        National Flood Insurance Program under this title, the 
        Administrator shall refund to the former insured a 
        portion of the premiums paid for the coverage made 
        available under this title, as determined consistent 
        with industry practice according to the portion of the 
        term of the policy that such coverage was in effect, 
        but only if a copy of declarations page of the new 
        policy obtained from a source other than the program 
        under this title is provided to the Administrator.
          ``(2) Effective date of cancellation.--For purposes 
        of this subsection, a cancellation of a policy for 
        coverage made available under the national flood 
        insurance program under this title, for the reason 
        specified in paragraph (1), shall be effective--
                  ``(A) on the effective date of the new policy 
                obtained from a source other than the program 
                under this title, if the request for such 
                cancellation was received by the Administrator 
                before the expiration of the 6-month period 
                beginning on the effective date of the new 
                policy; or
                  ``(B) on the date of the receipt by the 
                Administrator of the request for cancellation, 
                if the request for such cancellation was 
                received by the Administrator after the 
                expiration of the 6-month period beginning on 
                the effective date of the new policy.
          ``(3) Prohibition of refunds for properties receiving 
        increased cost of compliance claims.--No premium 
        amounts paid for coverage made available under this 
        title may be refunded pursuant to this subsection--
                  ``(A) with respect to coverage for any 
                property for which measures have been 
                implemented using amounts received pursuant to 
                a claim under increased cost of compliance 
                coverage made available pursuant to section 
                1304(b); or
                  ``(B) if a claim has been paid or is pending 
                under the policy term for which the refund is 
                sought.''.

SEC. 206. GAO STUDY OF FLOOD DAMAGE SAVINGS ACCOUNTS.

  (a) In General.--The Comptroller General of the United States 
shall conduct a study to analyze the feasibility and 
effectiveness, and problems involved, in reducing flood 
insurance premiums and eliminating the need for purchase of 
flood insurance coverage by authorizing owners of residential 
properties to establish flood damage savings accounts described 
in subsection (b) in lieu of complying with the mandatory 
requirements under section 102 of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a) to purchase flood insurance for 
such properties.
  (b) Flood Damage Savings Account.--A flood damage savings 
account described in this subsection is a savings account--
          (1) that would be established by an owner of 
        residential property with respect to such property in 
        accordance with requirements established by the 
        Administrator of the Federal Emergency Management 
        Agency; and
          (2) the proceeds of which would be available for use 
        only to cover losses to such properties resulting from 
        flooding, pursuant to adjustment of a claim for such 
        losses in the same manner and according to the same 
        procedures as apply to claims for losses under flood 
        insurance coverage made available under the National 
        Flood Insurance Act of 1968.
  (c) Issues.--Such study shall include an analysis of, and 
recommendation regarding, each of the following issues:
          (1) Whether authorizing the establishment of such 
        flood damage savings accounts would be effective and 
        efficient in reducing flood insurance premiums, 
        eliminating the need for purchase of flood insurance 
        coverage made available under the National Flood 
        Insurance Program, and reducing risks to the financial 
        safety and soundness of the National Flood Insurance 
        Fund.
          (2) Possible options for structuring such flood 
        damage savings accounts, including--
                  (A) what types of institutions could hold 
                such accounts and the benefits and problems 
                with each such type of institution;
                  (B) considerations affecting the amounts 
                required to be held in such accounts; and
                  (C) options regarding considerations the 
                conditions under which such an account may be 
                terminated.
          (3) The feasibility and effectiveness, and problems 
        involved in, authorizing the Administrator of the 
        Federal Emergency Management Agency to make secondary 
        flood insurance coverage available under the National 
        Flood Insurance Program to cover the portion of flood 
        losses or damages to properties for which such flood 
        damage savings accounts have been established that 
        exceed the amounts held in such accounts.
          (4) The benefits and problems involved in authorizing 
        the establishment of such accounts for non-residential 
        properties.
  (d) Report.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act, the 
Comptroller General shall submit a report to the Committee on 
Financial Services of the House of Representatives, the 
Committee on Banking, Housing, and Urban Affairs of the Senate, 
and the Administrator that sets forth the analysis, 
conclusions, and recommendations resulting from the study under 
this section. Such report shall identify elements that should 
be taken into consideration by the Administrator in designing 
and carrying out the demonstration program under section 207.

SEC. 207. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE SAVINGS ACCOUNTS.

  (a) Plan.--If the Comptroller General of the United States 
concludes in the report required under section 206 that a 
demonstration program under this section is feasible and should 
be considered, then the Administrator of the Federal Emergency 
Management Agency shall, not later than the expiration of the 
12-month period beginning upon the submission of the report 
under section 206(d), submit to the Committee on Financial 
Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a plan and 
guidelines for a demonstration program, to be carried out by 
the Administrator, to demonstrate the feasibility and 
effectiveness of authorizing the establishment of flood damage 
savings accounts, taking into consideration the analysis, 
conclusions, and recommendations included in such report.
  (b) Authority.--The Administrator of the Federal Emergency 
Management Agency shall carry out a program to demonstrate the 
feasibility and effectiveness of authorizing the establishment 
of flood damage savings accounts in the manner provided in plan 
and guidelines for the demonstration program submitted pursuant 
to subsection (a).
  (c) Scope.--The demonstration program under this section 
shall provide for the establishment of flood damage savings 
accounts with respect to not more than 5 percent of the 
residential properties that have 4 or fewer residences and that 
are covered by flood insurance coverage made available under 
the National Flood Insurance Program.
  (d) Timing.--The Administrator shall commence the 
demonstration program under this section not later than the 
expiration of the 12-month period beginning upon the submission 
of the plan and guidelines for the demonstration pursuant to 
subsection (a).
  (e) Geographical Diversity.--The Administrator shall ensure 
that properties for which flood damage savings accounts are 
established under the demonstration are located in diverse 
geographical areas throughout the United States.
  (f) Report.--Upon the expiration of the 2-year period 
beginning upon the date of the commencement of the 
demonstration program under this section, the Administrator 
shall submit a report to the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate describing and 
assessing the demonstration, and setting forth conclusions and 
recommendations regarding continuing and expanding the 
demonstration.
  (g) Feasibility.--The Administrator shall implement this 
section only after determining that implementation is supported 
by the Comptroller's conclusions and recommendations contained 
in the report required under section 206.

                      TITLE III--MAPPING FAIRNESS

SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DETERMINING PREMIUM 
                    RATES.

  (a) Estimates of Premium Rates.--Subparagraph (A) of section 
1307(a)(1) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4014(a)(1)(A)), as amended by the preceding provisions 
of this Act, is further amended--
          (1) in clause (ii), by striking ``and'' at the end; 
        and
          (2) by adding at the end the following new clause:
                          ``(iv) both the risk identified by 
                        the applicable flood insurance rate 
                        maps and by other risk assessment data 
                        and tools, including risk assessment 
                        models and scores from appropriate 
                        sources; and''.
  (b) Establishment of Chargeable Premium Rates.--Paragraph (1) 
of section 1308(b) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4015(b)(1)) is amended by inserting before the 
semicolon at the end the following: ``, taking into account 
both the risk identified by the applicable flood insurance rate 
maps and by other risk assessment data and tools, including 
risk assessment models and scores from appropriate sources''.
  (c) Effective Date and Regulations.--
          (1) Effective date.--The amendments made by 
        subsections (a) and (b) shall be made, and shall take 
        effect, upon the expiration of the 36-month period 
        beginning on the date of the enactment of this Act.
          (2) Regulations.--The Administrator of the Federal 
        Emergency Management Agency shall issue regulations 
        necessary to implement the amendments made by 
        subsections (a) and (b), which shall identify risk 
        assessment data and tools to be used in identifying 
        flood risk and appropriate sources for risk assessment 
        models and scores to be so used. Such regulations shall 
        be issued not later than the expiration of the 36-month 
        period beginning on the date of the enactment of this 
        Act and shall take effect upon the expiration of such 
        period.

SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS.

  (a) In General.--Section 1360 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4101) is amended by adding at the end 
the following new subsection:
  ``(k) Appeals of Existing Maps.--
          ``(1) Right to appeal.--Subject to paragraph (6), a 
        State or local government, or the owner or lessee of 
        real property, who has made a formal request to the 
        Administrator to update a flood map that the 
        Administrator has denied may at any time appeal such a 
        denial as provided in this subsection.
          ``(2) Basis for appeal.--The basis for appeal under 
        this subsection shall be the possession of knowledge or 
        information that--
                  ``(A) the base flood elevation level or 
                designation of any aspect of a flood map is 
                scientifically or technically inaccurate; or
                  ``(B) factors exist that mitigate the risk of 
                flooding, including ditches, banks, walls, 
                vegetation, levees, lakes, dams, reservoirs, 
                basin, retention ponds, and other natural or 
                manmade topographical features.
          ``(3) Appeals process.--
                  ``(A) Administrative adjudication.--An appeal 
                under this subsection shall be determined by a 
                final adjudication on the record, and after 
                opportunity for an administrative hearing.
                  ``(B) Rights upon adverse decision.--If an 
                appeal pursuant to subparagraph (A) does not 
                result in a decision in favor of the State, 
                local government, owner, or lessee, such party 
                may appeal the adverse decision to the 
                Scientific Resolution Panel provided for in 
                section 1363A, which shall recommend a non-
                binding decision to the Administrator.
          ``(4) Relief.--
                  ``(A) Wholly successful appeals.--In the case 
                of a successful appeal resulting in a 
                policyholder's property being removed from a 
                special flood hazard area, such policyholder 
                may cancel the policy at any time within the 
                current policy year, and the Administrator 
                shall provide such policyholder a refund in the 
                amount of any premiums paid for such policy 
                year, plus any premiums paid for flood 
                insurance coverage that the policyholder was 
                required to purchase or maintain during the 2-
                year period preceding such policy year.
                  ``(B) Partially successful appeals.--In the 
                case of any appeal in which mitigating factors 
                were determined to have reduced, but not 
                eliminated, the risk of flooding, the 
                Administrator shall reduce the amount of flood 
                insurance coverage required to be maintained 
                for the property concerned by the ratio of the 
                successful portion of the appeal as compared to 
                the entire appeal. The Administrator shall 
                refund to the policyholder any payments made in 
                excess of the amount necessary for such new 
                coverage amount, effective from the time when 
                the mitigating factor was created or the 
                beginning of the second policy year preceding 
                the determination of the appeal, whichever 
                occurred later.
                  ``(C) Additional relief.--The Administrator 
                may provide additional refunds in excess of the 
                amounts specified in subparagraphs (A) and (B) 
                if the Administrator determines that such 
                additional amounts are warranted.
          ``(5) Recovery of costs.--When, incident to any 
        appeal which is successful in whole or part regarding 
        the designation of the base flood elevation or any 
        aspect of the flood map, including elevation or 
        designation of a special flood hazard area, the 
        community, or the owner or lessee of real property, as 
        the case may be, incurs expense in connection with the 
        appeal, including services provided by surveyors, 
        engineers, and scientific experts, the Administrator 
        shall reimburse such individual or community for 
        reasonable expenses to an extent measured by the ratio 
        of the successful portion of the appeal as compared to 
        the entire appeal, but not including legal services, in 
        the effecting of an appeal based on a scientific or 
        technical error on the part of the Federal Emergency 
        Management Agency. No reimbursement shall be made by 
        the Administrator in respect to any fee or expense 
        payment, the payment of which was agreed to be 
        contingent upon the result of the appeal. The 
        Administrator may use such amounts from the National 
        Flood Insurance Fund established under section 1310 as 
        may be necessary to carry out this paragraph.
          ``(6) Inapplicability to community flood maps.--This 
        subsection shall not apply with respect to any flood 
        map that is in effect pursuant to certification under 
        the standards, guidelines, and procedures established 
        pursuant to section 100215(m)(1)(B) of the Biggert-
        Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
        4101a(m)(1)(B)).
          ``(7) Guidance.--The Administrator shall issue 
        guidance to implement this subsection, which shall not 
        be subject to the notice and comment requirements under 
        section 553 of title 5, United States Code.''.
  (b) Deadline.--The Administrator of the Federal Emergency 
Management Agency shall issue the guidance referred to section 
1360(k)(7) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(k)(7)), as added by the amendment made by 
subsection (a) of this section, not later than the expiration 
of the 6-month period beginning on the date of the enactment of 
this Act.

SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPECIAL FLOOD HAZARD 
                    AREAS.

  (a) Appeals.--Section 1363 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4104) is amended--
          (1) in subsection (b), by striking the second 
        sentence and inserting the following: ``Any owner or 
        lessee of real property within the community who 
        believes the owner's or lessee's rights to be adversely 
        affected by the Administrator's proposed determination 
        may appeal such determination to the local government 
        no later than 90 days after the date of the second 
        publication.'';
          (2) in subsection (d), by striking ``subsection (e)'' 
        and inserting ``subsection (f)'';
          (3) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
          (4) by inserting after subsection (d) the following 
        new subsection:
  ``(e) Determination by Administrator in the Absence of 
Appeals.--If the Administrator has not received any appeals, 
upon expiration of the 90-day appeal period established under 
subsection (b) of this section the Administrator's proposed 
determination shall become final. The community shall be given 
a reasonable time after the Administrator's final determination 
in which to adopt local land use and control measures 
consistent with the Administrator's determination.''.
  (b) Publication.--Subsection (a) of section 1363 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104(a)) is 
amended by striking ``in the Federal Register''.
  (c) Inapplicability to Private and Community Flood Maps.--
Section 1363 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104), as amended by the preceding provisions of this 
section, is further amended by adding at the end the following 
new subsection:
  ``(i) Inapplicability to Community Flood Maps.--This section 
shall not apply with respect to any flood map that is in effect 
pursuant to certification under the standards, guidelines, and 
procedures established pursuant to section 100215(m)(1) of the 
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
4101a(m)(1)), which shall include procedures for providing 
notification and appeal rights to individuals within the 
communities of the proposed flood elevation determinations.''.

SEC. 304. COMMUNICATION AND OUTREACH REGARDING MAP CHANGES.

  Paragraph (1) of section 100216(d) of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(d)(1)) is 
amended--
          (1) in subparagraph (B), by inserting ``maximum'' 
        before ``30-day period''; and
          (2) in subparagraph (C), by inserting ``maximum'' 
        before ``30-day period''.

SEC. 305. SHARING AND USE OF MAPS AND DATA.

  Subsection (b) of section 100216 of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (B), by striking ``and'' 
                at the end;
                  (B) in subparagraph (C), by striking the 
                period at the end and inserting ``; and'' ; and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(D) consult and coordinate with the 
                Department of Defense, the United States 
                Geological Survey, and the National Oceanic and 
                Atmospheric Administration for the purpose of 
                obtaining the most-up-to-date maps and other 
                information of such agencies, including 
                information on topography, water flow, and any 
                other issues, relevant to mapping for flood 
                insurance purposes.''; and
          (2) in paragraph (3)--
                  (A) in subparagraph (D), by striking ``and'' 
                at the end;
                  (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                  (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                  ``(E) any other information relevant to 
                mapping for flood insurance purposes obtained 
                pursuant to paragraph (1)(D); and''.

SEC. 306. COMMUNITY FLOOD MAPS.

  (a) Technical Mapping Advisory Council.--Section 100215 of 
the Biggert-Waters Flood Insurance Reform Act of 2012 (42 
U.S.C. 4101a) is amended--
          (1) in subsection (c)--
                  (A) in paragraph (5)(B), by striking ``and'' 
                at the end;
                  (B) by redesignating paragraph (6) as 
                paragraph (9); and
                  (C) by inserting after paragraph (5) the 
                following new paragraphs:
          ``(6) recommend to the Administrator methods or 
        actions to make the flood mapping processes more 
        efficient;
          ``(7) recommend to the Administrator methods or 
        actions to minimize any cost, data, and paperwork 
        requirements of the flood mapping processes;
          ``(8) assist communities, and in particular smaller 
        communities, in locating the resources required to 
        participate in the development of flood elevations and 
        flood hazard area designations; and''; and
          (2) by adding at the end the following new 
        subsection:
  ``(m) Community Flood Maps.--
          ``(1) Standards and procedures.--In addition to the 
        other duties of the Council under this section, not 
        later than the expiration of the 12-month period 
        beginning on the date of the enactment of this 
        subsection, the Council shall recommend to the 
        Administrator standards and requirements for chief 
        executive officers, or entities designated by chief 
        executive officers, of States and communities 
        participating in the National Flood Insurance Program 
        to use in mapping flood hazards located in States and 
        communities that choose to develop alternative maps to 
        the flood insurance rate maps developed by the Agency. 
        The recommended standards and requirements shall 
        include procedures for providing notification and 
        appeal rights to individuals within the communities of 
        the proposed flood elevation determinations.
          ``(2) Exemption from rulemaking.--Until such time as 
        the Administrator promulgates regulations implementing 
        paragraph (1) of this subsection, the Administrator 
        may, notwithstanding any other provision of law, adopt 
        policies and procedures necessary to implement such 
        paragraphs without undergoing notice and comment 
        rulemaking and without conducting regulatory analyses 
        otherwise required by statute, regulation, or executive 
        order.''.
  (b) FEMA Identification of Flood-prone Areas.--Subsection (a) 
of section 1360 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(a)) is amended--
          (1) in paragraph (2), by striking the period at the 
        end and inserting ``; and'';
          (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A), and (B), respectively, and 
        realigning such subparagraphs so as to be indented 4 
        ems from the left margin;
          (3) by striking ``is authorized to consult'' and 
        inserting the following: ``is authorized--
          ``(1) to consult'';
          (4) by adding at the end the following new paragraph:
          ``(2) to receive proposed alternative maps from 
        communities developed pursuant to standards and 
        requirements recommended by the Technical Mapping 
        Advisory Council, as required by section 100215(m) of 
        the Biggert-Waters Flood Insurance Reform Act of 2012 
        (42 U.S.C. 4101a(m)) and adopted by the Administrator 
        as required by section 100216(c)(3) of such Act (42 
        U.S.C. 4101b(c)(3)), so that the Administrator may--
                  ``(A) publish information with respect to all 
                flood plain areas, including coastal areas 
                located in the United States, which have 
                special flood hazards, and
                  ``(B) establish or update flood-risk zone 
                data in all such areas, and make estimates with 
                respect to the rates of probable flood caused 
                loss for the various flood risk zones for each 
                of these areas until the date specified in 
                section 1319.''.
  (c) National Flood Mapping Program.--Section 100216 of the 
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
4101b) is amended--
          (1) in subsection (a), by inserting ``prepared by the 
        Administrator, or by a community pursuant to section 
        1360(a)(2) of the National Flood Insurance Act of 
        1968,'' after ``Program rate maps''; and
          (2) in subsection (c)--
                  (A) in paragraph (1)(B), by striking ``and'' 
                at the end;
                  (B) in paragraph (2)(C), by striking the 
                period at the end and inserting a semicolon; 
                and
                  (C) by adding at the end the following new 
                paragraphs:
          ``(3) establish and adopt standards and requirements 
        for development by States and communities of 
        alternative flood insurance rate maps to be submitted 
        to the Administrator pursuant to section 1360(a)(2) of 
        the National Flood Insurance Act of 1968, taking into 
        consideration the recommendations of the Technical 
        Mapping Advisory Council made pursuant to section 
        100215(m) of this Act (42 U.S.C. 4101a(m)); and
          ``(4) in the case of proposed alternative maps 
        received by the Administrator pursuant to such section 
        1360(a)(2), not later than the expiration of the 6-
        month period beginning upon receipt of such proposed 
        alternative maps--
                  ``(A) determine whether such maps were 
                developed in accordance with the standards and 
                requirements adopted pursuant to paragraph (3) 
                of this subsection; and
                  ``(B) approve or disapprove such proposed 
                maps for use under National Flood Insurance 
                Program.''.

    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM CREDITS TO 
                    MAXIMUM NUMBER OF COMMUNITIES PRACTICABLE.

  Subsection (b) of section 1315 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended--
          (1) in paragraph (2), by striking ``may'' and 
        inserting ``shall''; and
          (2) in paragraph (3), by inserting ``, and the 
        Administrator shall provide credits to the maximum 
        number of communities practicable'' after ``under this 
        program''.

SEC. 402. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED AREAS.

  (a) In General.--Section 1361 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4102) is amended by adding at the end 
the following new subsection:
  ``(e) Community Accountability for Repetitively Damaged 
Areas.--
          ``(1) In general.--The Administrator shall, by 
        regulation, require any covered community (as such term 
        is defined in paragraph (5))--
                  ``(A) to identify the areas within the 
                community where properties described in 
                paragraph (5)(B) or flood-damaged facilities 
                are located to determine areas repeatedly 
                damaged by floods and to assess, with 
                assistance from the Administrator, the 
                continuing risks to such areas;
                  ``(B) to develop a community-specific plan 
                for mitigating continuing flood risks to such 
                repetitively flooded areas and to submit such 
                plan and plan updates to the Administrator at 
                appropriate intervals;
                  ``(C) to implement such plans;
                  ``(D) to make such plan, plan updates, and 
                reports on progress in reducing flood risk 
                available to the public, subject to section 
                552a of title 5, United States Code.
          ``(2) Incorporation into existing plans.--Plans 
        developed pursuant to paragraph (1) may be incorporated 
        into mitigation plans developed under section 1366 of 
        this Act (42 U.S.C. 4104c) and hazard mitigation plans 
        developed under section 322 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5165).
          ``(3) Assistance to communities.--
                  ``(A) Data.--To assist communities in 
                preparation of plans required under paragraph 
                (1), the Administrator shall, upon request, 
                provide covered communities with appropriate 
                data regarding the property addresses and dates 
                of claims associated with insured properties 
                within the community.
                  ``(B) Mitigation grants.--In making 
                determinations regarding financial assistance 
                under the authorities of this Act, the 
                Administrator may consider the extent to which 
                a community has complied with this subsection 
                and is working to remedy problems with 
                addressing repeatedly flooded areas.
          ``(4) Sanctions.--
                  ``(A) In general.--The Administrator shall, 
                by regulations issued in accordance with the 
                procedures established under section 553 of 
                title 5, United States Code, regarding 
                substantive rules, provide appropriate 
                sanctions for covered communities that fail to 
                comply with the requirements under this 
                subsection or to make sufficient progress in 
                reducing the flood risks to areas in the 
                community that are repeatedly damaged by 
                floods.
                  ``(B) Notice.--Before imposing any sanction 
                pursuant to this paragraph, the Administrator 
                shall provide the covered community involved 
                with notice of the non-compliance that could 
                result in the imposition of sanctions, which 
                shall include recommendations for actions to 
                bring the covered community into compliance.
                  ``(C) Considerations.--In determining 
                appropriate sanctions to impose under this 
                paragraph, the Administrator shall consider the 
                resources available to the covered community 
                involved, including Federal funding, the 
                portion of the covered community that lies 
                within an area having special flood hazards, 
                and other factors that make it difficult for 
                the covered community to conduct mitigation 
                activities for existing flood-prone structures.
          ``(5) Covered community.--For purposes of this 
        subsection, the term `covered community' means a 
        community--
                  ``(A) that is participating, pursuant to 
                section 1315, in the national flood insurance 
                program; and
                  ``(B) within which are located--
                          ``(i) 50 or more repetitive loss 
                        structures for each of which, during 
                        any 10-year period, two or more claims 
                        for payments under flood insurance 
                        coverage have been made with a 
                        cumulative amount exceeding $1,000;
                          ``(ii) 5 or more severe repetitive 
                        loss structures (as such term is 
                        defined in section 1366(h)) for which 
                        mitigation activities meeting the 
                        standards for approval under section 
                        1366(c)(2)(A) have not been conducted; 
                        or
                          ``(iii) a public facility or a 
                        private nonprofit facility (as such 
                        terms are as defined in section 102 of 
                        the Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act (42 U.S.C. 
                        5122)), that has received assistance 
                        for repair, restoration, 
                        reconstruction, or replacement under 
                        section 406 of the Robert T. Stafford 
                        Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5172) in 
                        connection with more than one flooding 
                        event in the most recent 10-year 
                        period.
          ``(6) Repetitive-loss structure.--For purposes of 
        this subsection, the term `repetitive loss structure' 
        has the meaning given such term in section 1370 (42 
        U.S.C. 4121).
          ``(7) Reports to congress.--Not later than the 
        expiration of the 6-year period beginning upon the date 
        of the enactment of this subsection, and not less than 
        every 2 years thereafter, the Administrator shall 
        submit a report to the Congress regarding the progress 
        in implementing plans developed pursuant to paragraph 
        (1)(B).''.
  (b) Regulations.--The Administrator of the Federal Emergency 
Management Agency shall issue regulations necessary to carry 
out subsection (e) of section 1361 of the National Flood 
Insurance Act of 1968, as added by the amendment made by 
subsection (a) of this section, not later than the expiration 
of the 12-month period that begins on the date of the enactment 
of this Act.

SEC. 403. INCREASED COST OF COMPLIANCE COVERAGE.

  (a) Coverage of Properties at High Risk of Future Flood 
Damage.--Subsection (b) of section 1304 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
          (1) in paragraph (4), by redesignating subparagraphs 
        (A) through (D) as clauses (i) through (iv), 
        respectively, and realigning such clauses, as so 
        redesignated, so as to be indented 6 ems from the left 
        margin;
          (2) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and 
        realigning such subparagraphs, as so redesignated, so 
        as to be indented 4 ems from the left margin;
          (3) by striking the subsection designation and all 
        that follows through ``The national'' and inserting the 
        following:
  ``(b) Additional Coverage for Compliance With Land Use and 
Control Measures.--
          ``(1) Authority; eligible properties.--The 
        national'';
          (4) in subparagraph (C) (as so redesignated by 
        paragraph (2) of this subsection), by striking ``Fund'' 
        and all that follows and inserting ``Fund to require 
        the implementation of such measures;'';
          (5) in subparagraph (D)(iv) (as so redesignated by 
        paragraphs (1) and (2) of this subsection), by striking 
        the period at the end and inserting a semicolon; and
          (6) by adding at the end the following new 
        subparagraphs:
                  ``(E) properties that have been identified by 
                the Administrator, or by a community in 
                accordance with such requirements as the 
                Administrator shall establish, as at a high 
                risk of future flood damage; and
                  ``(F) properties that are located within an 
                area identified pursuant to section 
                1361(e)(1)(A) (42 U.S.C. 4102(e)(1)(A)) by a 
                covered community (as such term is defined in 
                paragraph (3) of such section 1361(e)).''.
  (b) Coverage Amount.--Section 1304(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
          (1) in paragraph (1) (as so designated by subsection 
        (a)(3) of this section), by striking the last sentence 
        (relating to a surcharge); and
          (2) by adding at the end the following new paragraph:
          ``(2) Coverage amount.--
                  ``(A) Primary coverage.--Each policy for 
                flood insurance coverage made available under 
                this title shall provide coverage under this 
                subsection having an aggregate liability for 
                any single property of $30,000.
                  ``(B) Enhanced coverage.--The Administrator 
                shall make additional coverage available under 
                this subsection, in excess of the limit 
                specified in subparagraph (A), having an 
                aggregate liability for any single property of 
                up to $60,000.''.
  (c) Amount of Surcharge.--Subsection (b) of section 1304 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), 
as amended by the preceding provisions of this section, is 
further amended by adding at the end the following new 
paragraph:
          ``(3) Surcharge for coverage.--
                  ``(A) Primary coverage.--The Administrator 
                shall impose a surcharge on each insured of 
                such amount per policy as the Administrator 
                determines is appropriate to provide cost of 
                compliance coverage in accordance with 
                paragraph (2)(A).
                  ``(B) Enhanced coverage.--For each flood 
                policy for flood insurance coverage under this 
                title under which additional cost of compliance 
                coverage is provided pursuant to paragraph 
                (2)(B), the Administrator shall impose a 
                surcharge, in addition to the surcharge under 
                subparagraph (A) of this paragraph, in such 
                amount as the Administrator determines is 
                appropriate for the amount of such coverage 
                provided.''.
  (d) Use of Certain Materials.--Subsection (b) of section 1304 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011(b)), as amended by the preceding provisions of this 
section, is further amended by adding at the end the following 
new paragraph:
          ``(4) Use of certain materials.--The Administrator 
        shall require that any measures implemented using 
        amounts made available from coverage provided pursuant 
        to this subsection be carried out using materials, 
        identified by the Administrator, that minimize the 
        impact of flooding on the usability of the covered 
        property and reduce the duration that flooding renders 
        the property unusable or uninhabitable.''.
  (e) Continued Flood Insurance Requirement.--Subsection (b) of 
section 1304 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011(b)), as amended by the preceding provisions of this 
section, is further amended by adding at the end the following 
new paragraph:
          ``(5) Continued flood insurance requirement.--The 
        Administrator may require, as a condition of providing 
        cost of compliance coverage under this subsection for a 
        property, that the owner of the property enter into 
        such binding agreements as the Administrator considers 
        necessary to ensure that the owner of the property (and 
        any subsequent owners) will maintain flood insurance 
        coverage under this title for the property in such 
        amount, and at all times during a period having such 
        duration, as the Administrator considers appropriate to 
        carry out the purposes of this subsection.''.

                       TITLE V--PROGRAM INTEGRITY

SEC. 501. INDEPENDENT ACTUARIAL REVIEW.

  Section 1309 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4016) is amended by adding at the end the following new 
subsection:
  ``(e) Independent Actuarial Review.--
          ``(1) Fiduciary responsibility.--The Administrator 
        has a responsibility to ensure that the National Flood 
        Insurance Program remains financially sound. Pursuant 
        to this responsibility, the Administrator shall from 
        time to time review and eliminate nonessential costs 
        and positions within the Program, unless otherwise 
        authorized or required by law, as the Administrator 
        determines to be necessary.
          ``(2) Annual independent actuarial study.--The 
        Administrator shall provide for an independent 
        actuarial study of the National Flood Insurance Program 
        to be conducted annually, which shall analyze the 
        financial position of the program based on the long-
        term estimated losses of the program. The Administrator 
        shall submit a report (together with the independent 
        actuarial study) annually to the Committee on Financial 
        Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate describing the results of such study, including 
        a determination of whether the Program has collected 
        revenue sufficient to cover the administrative expenses 
        of carrying out the flood insurance program, which are 
        reflected in the risk premium rates, cost of capital, 
        all other costs associated with the transfer of risks, 
        and expected claims payments during the reporting 
        period, and an overall assessment of the financial 
        status of the Program.
          ``(3) Determination of actuarial budget deficit.--
                  ``(A) Requirement.--Within the report 
                submitted under paragraph (2), the 
                Administrator shall issue a determination of 
                whether there exists an actuarial budget 
                deficit for the Program for the year covered in 
                the report. The report shall recommend any 
                changes to the Program, if necessary, to ensure 
                that the program remains financially sound.
                  ``(B) Basis of determination.--The 
                determination required by subparagraph (A) 
                shall be based solely upon whether the portion 
                of premiums estimated and collected by the 
                Program during the reporting period is 
                sufficient to cover the administrative expenses 
                of carrying out the flood insurance program, 
                which are reflected in the risk premium rates, 
                cost of capital, all other costs associated 
                with the transfer of risk, and expected claims 
                payments for the reporting period.
          ``(4) Quarterly reports.--During each fiscal year, on 
        a calendar quarterly basis, the Secretary shall cause 
        to be published in the Federal Register or comparable 
        method, with notice to the Committee on Financial 
        Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate, information which shall specify--
                  ``(A) the cumulative volume of policies that 
                have been underwritten under the National Flood 
                Insurance Program during such fiscal year 
                through the end of the quarter for which the 
                report is submitted;
                  ``(B) the types of policies insured, 
                categorized by risk;
                  ``(C) any significant changes between actual 
                and projected claim activity;
                  ``(D) projected versus actual loss rates;
                  ``(E) the cumulative number of currently 
                insured repetitive-loss properties, severe 
                repetitive-loss properties, and extreme 
                repetitive-loss properties that have been 
                identified during such fiscal year through the 
                end of the quarter for which the report is 
                submitted;
                  ``(F) the cumulative number of properties 
                that have undergone mitigation assistance, 
                through the National Flood Insurance Program, 
                during such fiscal year through the end of the 
                quarter for which the report is submitted; and
                  ``(G) the number and location, by State or 
                territory, of each policyholder that has been 
                identified for such fiscal year as an eligible 
                household for purposes of the flood insurance 
                affordability program under section 1326.
        The first quarterly report under this paragraph shall 
        be submitted on the last day of the first quarter of 
        fiscal year 2018, or on the last day of the first full 
        calendar quarter following the enactment of the 21st 
        Century Flood Reform Act, whichever occurs later.''.

SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSURANCE AFFORDABILITY 
                    SURCHARGE.

  (a) In General.--Section 1308A of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015a) is amended--
          (1) in subsection (a), by striking the first sentence 
        and inserting the following: ``The Administrator shall 
        impose and collect a non-refundable annual surcharge, 
        in the amount provided in subsection (b), on all 
        policies for flood insurance coverage under the 
        National Flood Insurance Program that are newly issued 
        or renewed after the date of the enactment of this 
        section.''; and
          (2) by striking subsection (b) and inserting the 
        following new subsection:
  ``(b) Amount.--The amount of the surcharge under subsection 
(a) shall be $40, except as follows:
          ``(1) Non-primary residences eligible for prp.--The 
        amount of the surcharge under subsection (a) shall be 
        $125 in the case of in the case of a policy for any 
        property that is--
                  ``(A) a residential property that is not the 
                primary residence of an individual, and
                  ``(B) eligible for preferred risk rate method 
                premiums.
          ``(2) Non-residential properties and non-primary 
        residences not eligible for prp.--The amount of the 
        surcharge under subsection (a) shall be $275 in case of 
        in the case of a policy for any property that is--
                  ``(A) a non-residential property; or
                  ``(B) a residential property that is--
                          ``(i) not the primary residence of an 
                        individual; and
                          ``(ii) not eligible for preferred 
                        risk rate method premiums.''.
  (b) Applicability.--The amendment made by subsection (a) 
shall apply with respect to policies for flood insurance 
coverage under the National Flood Insurance Act of 1968 that 
are newly issued or renewed after the expiration of the 12-
month period beginning on the date of the enactment of this 
Act.

SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND COMPLIANCE.

  Section 1310A of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017A) is amended--
          (1) in subsection (c)(2)(D), by inserting before the 
        period at the end the following: ``, including any 
        provisions relating to chargeable premium rates or 
        annual increases of such rates'';
          (2) in subsection (c)(3), by striking subparagraph 
        (A) and inserting the following new subparagraph:
                  ``(A) Parity.--In exercising the authority 
                granted under paragraph (1) to increase 
                premiums, the Administrator shall institute a 
                single annual, uniform rate of assessment for 
                all individual policyholders.''; and
          (3) in subsection (d)--
                  (A) by striking paragraph (1) and inserting 
                the following new paragraph:
          ``(1) In general.--Beginning in fiscal year 2018 and 
        not ending until the fiscal year in which the ratio 
        required under subsection (b) is achieved--
                  ``(A) in each fiscal year the Administrator 
                shall place in the Reserve Fund an amount equal 
                to not less than 7.5 percent of the reserve 
                ratio required under subsection (b); and
                  ``(B) if in any given fiscal year the 
                Administrator fails to comply with subparagraph 
                (A), for the following fiscal year the 
                Administrator shall increase the rate of the 
                annual assessment pursuant to subsection 
                (c)(3)(A) by at least one percentage point over 
                the rate of the annual assessment pursuant to 
                subsection (c)(3)(A) in effect on the first day 
                of such given fiscal year.'';
                  (B) in paragraph (2), by inserting before the 
                period at the end the following: ``nor to 
                increase assessments pursuant to paragraph 
                (1)(B)''; and
                  (C) in paragraph (3), by inserting before the 
                period at the end the following: ``and 
                paragraph (1)(B) shall apply until the fiscal 
                year in which the ratio required under 
                subsection (b) is achieved''.

SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE-LOSS PROPERTIES.

  (a) Definition.--Section 1370 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4121), as amended by the preceding 
provisions of this Act, is further amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (7); and
                  (B) by redesignating paragraphs (8) through 
                (18) as paragraphs (7) through (17), 
                respectively; and
          (2) by adding at the end the following new 
        subsection:
  ``(d) Multiple-Loss Properties.--
          ``(1) Definitions.--As used in this title:
                  ``(A) Multiple-loss property.--The term 
                `multiple-loss property' means any property 
                that is a repetitive-loss property, a severe 
                repetitive-loss property, or an extreme 
                repetitive-loss property.
                  ``(B) Qualified claims payment.--The term 
                `qualified claims payment' means a claims 
                payment of any amount made under flood 
                insurance coverage under this title in 
                connection with loss resulting from a flood 
                event that occurred after the date of the 
                enactment of the 21st Century Flood Reform Act, 
                but not including any claim that occurred 
                before a structure was made compliant with 
                State and local floodplain management 
                requirements.
                  ``(C) Repetitive-loss property.--The term 
                `repetitive-loss property' means a structure 
                that has incurred flood damage for which two or 
                more separate claims payments of any amount 
                have been made under flood insurance coverage 
                under this title.
                  ``(D) Severe repetitive-loss property.--The 
                term `severe repetitive-loss property' means a 
                structure that has incurred flood damage for 
                which--
                          ``(i) 4 or more separate claims 
                        payments have been made under flood 
                        insurance coverage under this title, 
                        with the amount of each such claim 
                        exceeding $5,000, and with the 
                        cumulative amount of such claims 
                        payments exceeding $20,000; or
                          ``(ii) at least 2 separate claims 
                        payments have been made under flood 
                        insurance coverage under this title, 
                        with the cumulative amount of such 
                        claims payments exceeding the value of 
                        the structure.
                  ``(E) Extreme repetitive-loss property.--The 
                term `extreme repetitive-loss property' means a 
                structure that has incurred flood damage for 
                which at least 2 separate claims have been made 
                under flood insurance coverage under this 
                title, with the cumulative amount of such 
                claims payments exceeding 150 percent of the 
                maximum coverage amount available for the 
                structure.
          ``(2) Treatment of claims before compliance with 
        state and local requirements.--The Administrator shall 
        not consider claims that occurred before a structure 
        was made compliant with State and local floodplain 
        management requirements for purposes of determining a 
        structure's status as a multiple-loss property.''.
  (b) Premium Adjustment to Reflect Current Flood Risk.--
          (1) In general.--Section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015), as amended by 
        the preceding provisions of this Act, is further 
        amended by adding at the end the following new 
        subsection:
  ``(p) Premium Adjustment to Reflect Current Flood Risk.--
          ``(1) In general.--Except as provided in paragraph 
        (2), the Administrator shall rate a property for which 
        two or more qualified claims payments have been made 
        and that is charged a risk premium rate estimated under 
        section 1307(a)(1) (42 U.S.C. 4014(a)(1)) based on the 
        current risk of flood reflected in the flood insurance 
        rate map in effect at the time of rating.
          ``(2) Adjustment for existing policies.--
        Notwithstanding subsection (e) of this section, for 
        policies for flood insurance under this title in force 
        on the date of the enactment of this Act for properties 
        described in paragraph (1)--
                  ``(A) for any property for which two 
                qualified claims payments have been made, the 
                Administrator shall increase risk premium rates 
                by 10 percent each year until such rates comply 
                with paragraph (1) of this subsection; and
                  ``(B) for any property for which three or 
                more qualified claims payments have been made, 
                the Administrator shall increase risk premium 
                rates by 15 percent each year until such rates 
                comply with paragraph (1) of this 
                subsection.''.
          (2) Conforming amendment.--Section 1307(g)(2) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 
        4014(g)(2)) is amended by striking subparagraph (B) and 
        inserting the following new subparagraph:
                  ``(B) in connection with a multiple-loss 
                property.''.
  (c) Pre-FIRM Multiple-loss Property.--
          (1) Termination of subsidy.--Section 1307 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4014) 
        is amended--
                  (A) in subsection (a)(2)--
                          (i) by striking subparagraph (C) and 
                        inserting the following new 
                        subparagraph:
                  ``(C) any extreme repetitive-loss 
                property;'';
                          (ii) in subparagraph (D), by striking 
                        ``or'';
                          (iii) in subparagraph (E)--
                                  (I) in clause (i), by 
                                striking ``fair''; and
                                  (II) in clause (ii)--
                                          (aa) by striking 
                                        ``fair''; and
                                          (bb) by striking 
                                        ``and'' and inserting 
                                        ``or''; and
                          (iv) by adding at the end the 
                        following new subparagraph:
                  ``(F) any property for which two or more 
                qualified claims payments have been made; 
                and''; and
                  (B) by striking subsection (h).
          (2) Annual limitation on premium increases.--
        Subsection (e) of section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended--
                  (A) in paragraph (3), by striking ``and'' at 
                the end;
                  (B) in paragraph (4)--
                          (i) by striking ``the chargeable 
                        risk'' and inserting ``notwithstanding 
                        paragraph (5), the chargeable risk''; 
                        and
                          (ii) by striking ``described under 
                        paragraph (3).'' and inserting 
                        ``estimated under section 1307(a)(1); 
                        and''; and
                  (C) by adding at the end the following new 
                paragraph:
          ``(5) the chargeable risk premium rates for flood 
        insurance under this title for any properties described 
        in subparagraph (F) of section 1307(a)(2) shall be 
        increased--
                  ``(A) for any property for which two 
                qualified claims payments have been made, by 10 
                percent each year, until the average risk 
                premium rate for such property is equal to the 
                average of the risk premium rates for 
                properties estimated under section 1307(a)(1); 
                and
                  ``(B) for any property for which three or 
                more qualified claims payments have been made, 
                by 15 percent each year, until the average risk 
                premium rate for such property is equal to the 
                average of the risk premium rates for 
                properties estimated under section 
                1307(a)(1).''.
  (d) Minimum Deductibles for Certain Multiple-loss 
Properties.--
          (1) Clerical amendment.--The National Flood Insurance 
        Act of 1968, as amended by the preceding provisions of 
        this Act, is further amended--
                  (A) by transferring subsection (b) of section 
                1312 (42 U.S.C. 4019(b)) to section 1306 (42 
                U.S.C. 4013), inserting such subsection at the 
                end of such section, and redesignating such 
                subsection as subsection (f); and
                  (B) in section 1312 (42 U.S.C. 4019), by 
                redesignating subsection (c) as subsection (b).
          (2) Certain multiple-loss properties.--Subsection (f) 
        of section 1306 of the National Flood Insurance Act of 
        1968 (42 U.S.C. 4013(e)), as so transferred and 
        redesignated by paragraph (1) of this subsection, is 
        amended adding at the end the following new paragraph:
          ``(3) Certain multiple-loss properties.--
        Notwithstanding paragraph (1) or (2), the minimum 
        annual deductible for damage to any severe repetitive-
        loss property or extreme repetitive-loss property shall 
        be not less than $5,000.''.
  (e) Claim History Validation.--Beginning not later than the 
expiration of the 180-day period beginning on the date of the 
enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall undertake efforts to validate 
the reasonable accuracy of claim history data maintained 
pursuant to the National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.).
  (f) Increased Cost of Compliance Coverage.--Subparagraph (A) 
of section 1304(b)(1) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011(b)(1)(A)), as amended by the preceding 
provisions of this Act, is further amended by striking 
``repetitive loss structures'' and inserting ``multiple-loss 
properties''.
  (g) Availability of Insurance for Multiple-Loss Properties.--
          (1) In general.--The National Flood Insurance Act of 
        1968 is amended by inserting after section 1304 (42 
        U.S.C. 4011) the following new section:

``SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS PROPERTIES.

  ``(a) Date and Information Identifying Current Flood Risk.--
The Administrator may provide flood insurance coverage under 
this title for a multiple-loss property only if the owner of 
the property submits to the Administrator such data and 
information necessary to determine such property's current risk 
of flood, as determined by the Administrator, at the time of 
application for or renewal of such coverage.
  ``(b) Refusal To Mitigate.--
          ``(1) In general.--Except as provided pursuant to 
        paragraph (2), the Administrator may not make flood 
        insurance coverage available under this title for any 
        extreme repetitive-loss property for which a claim 
        payment for flood loss was made under coverage made 
        available under this title that occurred after the date 
        of enactment of the 21st Century Flood Reform Act if 
        the property owner refuses an offer of mitigation for 
        the property under section 1366(a)(2) (42 U.S.C. 
        4104c(a)(2)).
          ``(2) Exceptions; appeals.--The Director shall 
        develop guidance to provide appropriate exceptions to 
        the prohibition under paragraph (1) and to allow for 
        appeals to such prohibition.''.
          (2) Effective date.--Section 1304A of the National 
        Flood Insurance Act of 1968, as added by paragraph (1) 
        of this subsection, shall apply beginning upon the 
        expiration of the 12-month period beginning on the date 
        of the enactment of this Act.
  (h) Rates for Properties Newly Mapped Into Areas With Special 
Flood Hazards.--Subsection (i) of section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(i)) is amended--
          (1) by striking the subsection designation and all 
        that follows through ``Notwithstanding'' and inserting 
        the following:
  ``(i) Rates for Properties Newly Mapped Into Areas With 
Special Flood Hazards.--
          ``(1) In general.--Except as provided in paragraph 
        (2) and notwithstanding'';
          (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and moving the 
        left margins of such subparagraphs, as so redesignated, 
        and the matter following subparagraph (B), 2 ems to the 
        right; and
          (3) by adding at the end the following new paragraph:
          ``(2) Inapplicability to multiple-loss properties.--
        Paragraph (1) shall not apply to multiple-loss 
        properties.''.
  (i) Clear Communication of Multiple-loss Property Status.--
          (1) In general.--Subsection (l) of section 1308 of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 
        4015(l)), as amended by the preceding provisions of 
        this Act, is further amended by adding at the end the 
        following new paragraph:
          ``(2) Multiple-loss properties.--Pursuant to 
        paragraph (1), the Administrator shall clearly 
        communicate to all policyholders for multiple-loss 
        properties before the effectiveness of any such new or 
        renewed coverage and after each qualified claims 
        payment for the property--
                  ``(A) the availability of flood mitigation 
                assistance under section 1366; and
                  ``(B) the effect on the premium rates charged 
                for such a property of filing any further 
                claims under a flood insurance policy with 
                respect to that property.''.
  (j) Mitigation Assistance Program.--Section 1366 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                inserting after the period at the end of the 
                first sentence the following: ``Priority under 
                the program shall be given to providing 
                assistance with respect to multiple-loss 
                properties.'';
                  (B) in paragraph (1), by inserting ``and'' 
                after the semicolon at the end; and
                  (C) by striking paragraphs (2) and (3) and 
                inserting the following:
          ``(2) to property owners, in coordination with the 
        State and community, in the form of direct grants under 
        this section for carrying out mitigation activities 
        that reduce flood damage to extreme repetitive-loss 
        properties.
The Administrator shall take such actions as may be necessary 
to ensure that grants under this subsection are provided in a 
manner that is consistent with the delivery of coverage for 
increased cost of compliance provided under section 1304(b).'';
          (2) in subsection (c)(2)(A)(ii), by striking ``severe 
        repetitive loss structures'' and inserting ``multiple-
        loss properties'';
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by striking ``Severe repetitive 
                        loss structures'' and inserting 
                        ``Extreme repetitive-loss properties''; 
                        and
                          (ii) by striking ``severe repetitive 
                        loss structures'' and inserting 
                        ``extreme repetitive-loss properties'';
                  (B) in paragraph (2)--
                          (i) by striking ``Repetitive loss 
                        structures'' and inserting ``Severe 
                        repetitive-loss properties'';
                          (ii) by striking ``repetitive loss 
                        structures'' and inserting ``severe 
                        repetitive-loss properties''; and
                          (iii) by striking ``90 percent'' and 
                        inserting ``100 percent'';
                  (C) by redesignating paragraph (3) as 
                paragraph (4); and
                  (D) by inserting after paragraph (2) the 
                following new paragraph:
          ``(3) Repetitive-loss property.--In the case of 
        mitigation activities to repetitive-loss properties, in 
        an amount up to 100 percent of all eligible costs.'';
          (4) in subsection (h)--
                  (A) by striking paragraphs (2) and (3);
                  (B) by striking the subsection designation 
                and all that follows through ``shall apply:''; 
                and
                  (C) in paragraph (1)--
                          (i) by striking ``Community'' and 
                        inserting ``Definition of Community'';
                          (ii) by striking ``The'' and 
                        inserting ``For purposes of this 
                        section, the'';
                          (iii) by redesignating such paragraph 
                        as subsection (j);
                          (iv) in subparagraph (B), by striking 
                        ``subparagraph (A)'' and inserting 
                        ``paragraph (1)'';
                          (v) by redesignating subparagraphs 
                        (A) and (B) as paragraphs (1) and (2), 
                        respectively;
                          (vi) in paragraph (1), as so 
                        redesignated by clause (v) of this 
                        subparagraph, by redesignating clauses 
                        (i) and (ii) as subparagraphs (A) and 
                        (B), respectively (and moving the 
                        margins two ems to the left); and
                          (vii) by moving the left margins of 
                        subsection (j) (as so redesignated) and 
                        paragraphs (1) and (2), all as so 
                        redesignated, two ems to the left; and
          (5) by inserting after subsection (g) the following 
        new subsections:
  ``(h) Alignment With Increased Cost of Compliance.--
Notwithstanding any provision of law, any funds appropriated 
for assistance under this title may be transferred to the 
National Flood Insurance Fund established under section 1310 
(42 U.S.C. 4017) for the payment of claims to enable the 
Administrator to deliver grants under subsection (a)(2) of this 
section to align with the delivery of coverage for increased 
cost of compliance for extreme repetitive-loss properties.
  ``(i) Funding.--
          ``(1) Authorization of appropriations.--
        Notwithstanding any other provision of law, assistance 
        provided under this section shall be funded by--
                  ``(A) $225,000,000 in each fiscal year, 
                subject to offsetting collections, through risk 
                premium rates for flood insurance coverage 
                under this title, and shall be available 
                subject to section 1310(f);
                  ``(B) any penalties collected under section 
                102(f) the Flood Disaster Protect Act of 1973 
                (42 U.S.C. 4012a(f); and
                  ``(C) any amounts recaptured under subsection 
                (e) of this section.
        The Administrator may not use more than 5 percent of 
        amounts made available under this subsection to cover 
        salaries, expenses, and other administrative costs 
        incurred by the Administrator to make grants and 
        provide assistance under this section.
          ``(2) Availability.--Amounts appropriated pursuant to 
        this subsection for any fiscal year may remain 
        available for obligation until expended.''.
  (k) Repeal.--Section 1367 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104d) is repealed.

SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES WITH EXCESSIVE 
                    LIFETIME CLAIMS.

  Section 1305 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4012) is amended by adding at the end the following new 
subsection:
  ``(e) Prohibition of Coverage for Properties With Excessive 
Lifetime Claims.--The Administrator may not make available any 
new or renewed coverage for flood insurance under this title 
for any multiple-loss property for which the aggregate amount 
in claims payments that have been made after the expiration of 
the 18-month period beginning on the date of the enactment of 
this subsection under flood insurance coverage under this title 
exceeds three times the amount of the replacement value of the 
structure.''.

SEC. 506. PROHIBITION OF NEW COVERAGE FOR STRUCTURES WITH HIGH-VALUE 
                    REPLACEMENT COSTS.

  Section 1305 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4012), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following new 
subsection:
  ``(f) Prohibition of New Coverage for Structures With High-
value Replacement Costs.--Notwithstanding any other provision 
of this title, in carrying out the fiduciary responsibility to 
the National Flood Insurance Program under section 1309(e) (42 
U.S.C. 4016(e)) and to reduce future risks to the National 
Flood Insurance Fund, on or after January 1, 2021, the 
Administrator may not make available any new or renewed flood 
insurance coverage under this title for any residential 
property having 4 or fewer residences and a replacement value 
of the structure, at the time, exclusive of the value of the 
real estate on which the structure is located, that is equal to 
or exceeds the amount that is equal to $1,000,000 multiplied by 
the number of dwelling units in the structure (as such amount 
is adjusted pursuant to paragraph (1)), subject to the 
following provisions:
          ``(1) Adjustment of amounts.--The dollar amount in 
        the matter of this subsection that precedes this 
        paragraph (as it may have been previously adjusted) 
        shall be adjusted for inflation by the Administrator 
        upon the expiration of the 5-year period beginning upon 
        the enactment of this subsection and upon the 
        expiration of each successive 5-year period thereafter, 
        in accordance with an inflationary index selected by 
        the Administrator.
          ``(2) Valuation.--The Administrator shall determine 
        the replacement value of a property for purposes of 
        this subsection using such valuation methods or indicia 
        as the Administrator determines are reasonably 
        accurate, consistent, reliable, and available for such 
        purposes.''.

SEC. 507. PAY FOR PERFORMANCE AND STREAMLINING COSTS AND REIMBURSEMENT.

   Section 1345 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
subsection:
  ``(g) Write Your Own Allowance and Program Savings.--
          ``(1) Allowance rate.--
                  ``(A) Limitation.--The allowance paid to 
                companies participating in the Write Your Own 
                Program (as such term is defined in section 
                1370 (42 U.S.C. 4004)) with respect to a policy 
                for flood insurance coverage made available 
                under this title shall not be greater than 27.9 
                percent of the chargeable premium for such 
                coverage.
                  ``(B) Inapplicability.--Subparagraph (A) 
                shall not apply to actual and necessary costs 
                related to section 1312(a) (42 U.S.C, 4019(a)), 
                or to payments deemed necessary by the 
                Administrator.
                  ``(C) Implementation.--The limitation in 
                subparagraph (A) shall be imposed by equal 
                reductions over the 3-year period beginning on 
                the date of the enactment of this subsection.
          ``(2) Program savings.--
                  ``(A) Implementation.--The Administrator, 
                within three years of the date of the enactment 
                of this Act, shall reduce the costs and 
                unnecessary burdens for the companies 
                participating in the Write Your Own program by 
                at least half of the amount by which the 
                limitation under paragraph (1)(A) reduced costs 
                compared to the costs as of the date of the 
                enactment of this subsection.
                  ``(B) Consideration of savings.--In meeting 
                the requirement of subparagraph (A), the 
                Administrator shall consider savings 
                including--
                          ``(i) indirect payments by the 
                        Administrator of premium;
                          ``(ii) eliminating unnecessary 
                        communications requirements;
                          ``(iii) reducing the frequency of 
                        National Flood Insurance Program 
                        changes;
                          ``(iv) simplifying the flood rating 
                        system; and
                          ``(v) other ways of streamlining the 
                        Program to reduce costs while 
                        maintaining customer service and 
                        distribution.''.

SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.

  (a) Penalties.--Paragraph (5) of section 102(f) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) is 
amended by striking ``$2,000'' and inserting ``$5,000''.
  (b) Insured Depository Institutions.--Subparagraph (A) of 
section 10(i)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(i)(2)(A)) is amended by striking ``date of 
enactment of the Riegle Community Development and Regulatory 
Improvement Act of 1994 and biennially thereafter for the next 
4 years'' and inserting ``date of enactment of the 21st Century 
Flood Reform Act and biennially thereafter''.
  (c) Credit Unions.--Subparagraph (A) of section 204(e)(2) of 
the Federal Credit Union Act (12 U.S.C. 1784(e)(2)(A)) is 
amended by striking ``date of enactment of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and 
biennially thereafter for the next 4 years'' and inserting 
``date of enactment of the 21st Century Flood Reform Act and 
annually thereafter''.
  (d) Government-Sponsored Enterprises.--Paragraph (4) of 
section 1319B(a) of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 4521(a)(4)) is 
amended, in the matter after and below subparagraph (B), by 
striking ``first, third, and fifth annual reports under this 
subsection required to be submitted after the expiration of the 
1-year period beginning on the date of enactment of the Riegle 
Community Development and Regulatory Improvement Act of 1994'' 
and inserting ``first annual report under this subsection 
required to be submitted after the expiration of the 1-year 
period beginning on the date of enactment of the 21st Century 
Flood Reform Act and every such second annual report 
thereafter''.
  (e) Guidelines.--The Federal entities for lending regulation 
(as such term is defined in section 3(a) of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4003(a))), in consultation 
with the Administrator of the Federal Emergency Management 
Agency, shall jointly update and reissue the rescinded document 
of the Administrator entitled ``Mandatory Purchase of Flood 
Insurance Guidelines'' (lasted updated on October 29, 2014). 
The updated document shall incorporate recommendations made by 
the Comptroller General pursuant to the study conducted under 
section 514 of this Act.

SEC. 509. SATISFACTION OF MANDATORY PURCHASE REQUIREMENT IN STATES 
                    ALLOWING ALL-PERILS POLICIES.

  Section 102 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a), as amended by the preceding provisions of this 
Act, is further amended--
          (1) in subsection (a), by striking ``After'' and 
        inserting ``Subject to subsection (i) of this section, 
        after'';
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``Each'' 
                and inserting ``Subject to subsection (i) of 
                this section, each'';
                  (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                        ``A'' the first place such term appears 
                        and inserting ``Subject to subsection 
                        (i) of this section, a'';
                          (ii) in subparagraph (B), by striking 
                        ``Each'' and inserting ``Subject to 
                        subsection (i) of this section, each''; 
                        and
                  (C) in paragraph (3), by striking ``The'' the 
                first place such term appears and inserting 
                ``Subject to subsection (i) of this section, 
                the'';
          (3) in subsection (e)(1), by striking ``If'' and 
        inserting ``Subject to subsection (i) of this section, 
        if''; and
          (4) by adding at the end the following new 
        subsection:
  ``(i) Satisfaction of Mandatory Purchase Requirement in 
States Allowing All-perils Policies.--
          ``(1) Waivers.--Subsections (a) and (b) of this 
        section shall not apply with respect to residential 
        properties in any State that allows any property 
        insurance coverage that covers `all-perils' except 
        specifically excluded perils and that includes coverage 
        for flood perils in an amount at least equal to the 
        outstanding principal balance of the loan or the 
        maximum limit of flood insurance coverage made 
        available under this title with respect to such type of 
        residential property, whichever is less.
          ``(2) Definitions, procedures, standards.--The 
        Administrator may establish such definitions, 
        procedures, and standards as the Administrator 
        considers necessary for making determinations under 
        paragraph (1).''.

SEC. 510. FLOOD INSURANCE PURCHASE REQUIREMENTS.

  Section 102 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a), as amended by the preceding provisions of this 
Act, is further amended--
          (1) in subsection (c)(2)(A), by striking ``$5,000 or 
        less'' and inserting the following: ``$25,000 or less, 
        except that such amount (as it may have been previously 
        adjusted) shall be adjusted for inflation by the 
        Administrator upon the expiration of the 5-year period 
        beginning upon the enactment of the 21st Century Flood 
        Reform Act and upon the expiration of each successive 
        5-year period thereafter, in accordance with an 
        inflationary index selected by the Administrator''; and
          (2) by adding at the end the following new 
        subsection:
  ``(j) Flood Insurance Purchase Requirements.--Notwithstanding 
any other provision of law, a State or local government or 
private lender may require the purchase of flood insurance 
coverage for a structure that is located outside of an area 
having special flood hazards.''.

SEC. 511. CLARIFICATIONS; DEADLINE FOR APPROVAL OF CLAIMS.

  (a) Rule of Construction.--Part C of chapter II of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), 
as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new section:

``SEC. 1350. RULE OF CONSTRUCTION.

  ``A policyholder of a policy for flood insurance coverage 
made available under this title must exhaust all administrative 
remedies, including submission of disputed claims to appeal 
under any appeal process made available by the Administrator, 
prior to commencing legal action on any disputed claim under 
such a policy.''.
  (b) Deadline for Approval of Claims.--
          (1) In general.--Section 1312 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4019), as amended by 
        the preceding provisions of this Act, is further 
        amended--
                  (A) in subsection (a), by striking ``The 
                Administrator'' and inserting ``Subject to the 
                other provisions of this section, the 
                Administrator''; and
                  (B) by adding at the end the following new 
                subsection:
  ``(c) Deadline for Approval of Claims.--
          ``(1) In general.--The Administrator shall provide 
        that, in the case of any claim for damage to or loss of 
        property under flood insurance coverage made available 
        under this title, an initial determination regarding 
        approval of a claim for payment or disapproval of the 
        claim be made, and notification of such determination 
        be provided to the insured making such claim, not later 
        than the expiration of the 120-day period (as such 
        period may be extended pursuant to paragraph (2)) 
        beginning upon the day on which the policyholder 
        submits a signed proof of loss detailing the damage and 
        amount of the loss. Payment of approved claims shall be 
        made as soon as possible after such approval.
          ``(2) Extension of deadline.--The Administrator shall 
        provide that the period referred to in paragraph (1) 
        may be extended by a single additional period of 15 
        days in cases where extraordinary circumstances are 
        demonstrated. The Administrator shall, by regulation, 
        establish criteria for demonstrating such extraordinary 
        circumstances and for determining to which claims such 
        extraordinary circumstances apply.''.
          (2) Applicability.--The amendments made by paragraph 
        (1) shall apply to any claim under flood insurance 
        coverage made available under the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4001 et seq.) pending 
        on the date of the enactment of this Act and any claims 
        made after such date of enactment.

SEC. 512. RISK TRANSFER REQUIREMENT.

  Subsection (e) of section 1345 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4081(e)) is amended--
          (1) by striking ``(e) Risk Transfer.--The 
        Administrator'' and inserting the following:
  ``(e) Risk Transfer.--
          ``(1) Authority.--The Administrator''; and
          (2) by adding at the end the following new paragraph:
          ``(2) Required risk transfer coverage.--
                  ``(A) Requirement.--Not later than the 
                expiration of the 18-month period beginning 
                upon the date of the enactment of this 
                paragraph and at all times thereafter, the 
                Administrator shall annually cede a portion of 
                the risk of the flood insurance program under 
                this title to the private reinsurance or 
                capital markets, or any combination thereof, 
                and at rates and terms that the Administrator 
                determines to be reasonable and appropriate, in 
                an amount that--
                          ``(i) is sufficient to maintain the 
                        ability of the program to pay claims; 
                        and
                          ``(ii) 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 (B).
                  ``(B) Probable maximum loss target.--The 
                Administrator shall for each fiscal year, 
                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 year.
                  ``(C) Considerations.--In establishing the 
                probable maximum loss target under subparagraph 
                (B) for each fiscal year and carrying out 
                subparagraph (A), the Administrator shall 
                consider--
                          ``(i) the probable maximum loss 
                        targets for other United States public 
                        natural catastrophe insurance programs, 
                        including as State wind pools and 
                        earthquake programs;
                          ``(ii) the probable maximum loss 
                        targets of other risk management 
                        organizations, including the Federal 
                        National Mortgage Association and the 
                        Federal Home Loan Mortgage Corporation;
                          ``(iii) catastrophic, actuarial, and 
                        other appropriate data modeling results 
                        of the national flood insurance program 
                        portfolio;
                          ``(iv) the availability of funds in 
                        the National Flood Insurance Fund 
                        established under section 1310 (42 
                        U.S.C. 4017);
                          ``(v) the availability of funds in 
                        the National Flood Insurance Reserve 
                        Fund established under section 1310A 
                        (42 U.S.C. 4017a);
                          ``(vi) the availability of borrowing 
                        authority under section 1309 (42 U.S.C. 
                        4016);
                          ``(vii) the ability of the 
                        Administrator to repay outstanding 
                        debt;
                          ``(viii) amounts appropriated to the 
                        Administrator to carry out the national 
                        flood insurance program;
                          ``(ix) reinsurance, capital markets, 
                        catastrophe bonds, collateralized 
                        reinsurance, resilience bonds, and 
                        other insurance-linked securities, and 
                        other risk transfer opportunities; and
                          ``(x) any other factor the 
                        Administrator determines appropriate.
                  ``(D) Multi-year contracts.--Nothing in this 
                paragraph may be construed to prevent or 
                prohibit the Administrator from complying with 
                the requirement under subparagraph (A) 
                regarding ceding risk through contracts having 
                a duration longer than one year.''.

SEC. 513. GAO STUDY OF SIMPLIFICATION OF NATIONAL FLOOD INSURANCE 
                    PROGRAM.

  (a) Study.--The Comptroller General of the United States 
shall conduct a study of options for simplifying flood 
insurance coverage made available under the National Flood 
Insurance Act, which shall include the following:
          (1) An analysis of how the administration of the 
        National Flood Insurance Program can be simplified--
        statutorily, regulatorily, and administratively--for 
        private flood insurance policyholders, companies, 
        agents, mortgage lenders, and flood insurance vendors.
          (2) An assessment of ways in which flood insurance 
        coverage made available under the National Flood 
        Insurance Act and the program for providing and 
        administrating such coverage may be harmonized with 
        private insurance industry standards.
          (3) Identification and analysis of ways in which the 
        structure of the National Flood Insurance Program may 
        be simplified, including analysis of the efficacy and 
        effects each of the following actions:
                  (A) Eliminating the use of two deductibles 
                under the Program.
                  (B) Including in claims for flood-damages 
                full replacement cost for property not damaged, 
                but rendered unusable, by the flooding.
                  (C) Using umbrella policies that allow 
                multiple structures on a property to be insured 
                under the same policy.
  (b) Report.--Not later than the expiration of the 18-month 
period beginning on the date of the enactment of this Act, the 
Comptroller General shall submit a report to the Committee on 
Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the findings and conclusions of the study conducted 
pursuant to this section.

SEC. 514. GAO STUDY ON ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.

  (a) In General.--The Comptroller General of the United States 
shall conduct a study of the implementation and efficacy of the 
requirements of section 102 of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a). Such study shall at minimum 
consider the following questions:
          (1) How effectively do Federal agencies, regulated 
        lending institutions, and Federal entities for lending 
        regulation implement the requirements of section 102 of 
        the Flood Disaster Protection Act of 1973?
          (2) Does the current implementation of Flood Disaster 
        Protection Act of 1973 align with the congressional 
        findings and purposes described in section 2(b) of such 
        Act (42 U.S.C. 4002)?
          (3) What is the current level of compliance with 
        section 102?
          (4) What are the estimated historical impacts on 
        revenue to the National Flood Insurance Program based 
        on the current level of compliance of section 102?
          (5) Is the current monitoring and tracking framework 
        in place sufficient to ensure compliance with section 
        102?
          (6) What is the best way to establish a consolidated, 
        comprehensive, and accurate repository of data on 
        compliance with section 102?
          (7) What, if any, unintended consequences have 
        resulted from the requirements and implementation of 
        section 102?
          (8) How can Federal agencies and regulated lending 
        institutions improve compliance with section 102?
  (b) Report.--Not later than the expiration of the 18-month 
period beginning on the date of the enactment of this Act, the 
Comptroller General shall submit a report to the Committee on 
Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the findings and conclusions of the study conducted 
pursuant to this section.

                    TITLE VI--ADMINISTRATIVE REFORMS

SEC. 601. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL 
                    FLOOD INSURANCE PROGRAM.

  Part C of chapter 2 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new section:

``SEC. 1351. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL 
                    FLOOD INSURANCE PROGRAM.

  ``(a) Prohibited Acts.--A person shall not knowingly make a 
false or misleading statement, production, or submission in 
connection with the proving or adjusting of a claim for flood 
insurance coverage made available under this Act. Such 
prohibited acts include--
          ``(1) knowingly forging an engineering report, claims 
        adjustment report or technical assistance report used 
        to support a claim determination;
          ``(2) knowingly making any materially false, 
        fictitious, or fraudulent statement or representation 
        in an engineering report, claims adjustment report, or 
        technical assistance report to support a claim 
        determination;
          ``(3) knowingly submitting a materially false, 
        fictitious, or fraudulent claim.
  ``(b) Civil Enforcement.--The Attorney General may bring a 
civil action for such relief as may be appropriate whenever it 
appears that any person has violated or is about to violate any 
provision of this section. Such action may be brought in an 
appropriate United States district court.
  ``(c) Referral to Attorney General.--The Administrator shall 
expeditiously refer to the Attorney General for appropriate 
action any evidence developed in the performance of functions 
under this Act that may warrant consideration for criminal or 
civil prosecution.
  ``(d) Penalties.--
          ``(1) Civil monetary penalty.--Any person who 
        violates subsection (a) shall be subject to a civil 
        penalty of not more than $10,000 for each violation, 
        which shall be deposited into the National Flood 
        Insurance Fund established under section 1310 (42 
        U.S.C. 4017).
          ``(2) Suspension and debarment.--Any person who 
        violates subsection (a) shall not be eligible, for a 
        period of not less than 2 years and not to exceed 5 
        years, to--
                  ``(A) receive flood insurance coverage 
                pursuant to this title; or
                  ``(B) provide services in connection with the 
                selling, servicing, or handling of claims for 
                flood insurance policies provided pursuant to 
                this title.
          ``(3) Other penalties.--The penalties provided for in 
        this subsection shall be in addition to any other civil 
        or criminal penalty available under law.''.

SEC. 602. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.

  (a) Establishment.--Part C of chapter II of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as 
amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new section:

``SEC. 1352. APPROVAL OF DECISIONS RELATING TO FLOOD INSURANCE 
                    COVERAGE.

  ``(a) In General.--The Administrator shall establish an 
appeals process to enable holders of a flood insurance policy 
provided under this title to appeal the decisions of their 
insurer, with respect to the disallowance, in whole or in part, 
of any claims for proved and approved losses covered by flood 
insurance. Such appeals shall be limited to the claim or 
portion of the claim disallowed by the insurer.
  ``(b) Appeal Decision.--Upon a decision in an appeal under 
subsection (a), the Administrator shall provide the 
policyholder with a written appeal decision. The appeal 
decision shall explain the Administrator's determination to 
uphold or overturn the decision of the flood insurer. The 
Administrator may direct the flood insurer to take action 
necessary to resolve the appeal, to include re-inspection, re-
adjustment, or payment, as appropriate.
  ``(c) Rules of Construction.--This section shall not be 
construed as--
          ``(1) making the Federal Emergency Management Agency 
        or the Administrator a party to the flood insurance 
        contract; or
          ``(2) creating any action or remedy not otherwise 
        provided by this title.''.
  (b) Repeal.--Section 205 of the Bunning-Blumenauer-Bereuter 
Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is 
hereby repealed.

SEC. 603. DEADLINE FOR APPROVAL OF CLAIMS.

  (a) In General.--Section 1312 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4019), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new subsection:
  ``(d) Deadline for Approval of Claims.--
          ``(1) In general.--The Administrator shall provide 
        that, in the case of any claim for damage to or loss of 
        property under flood insurance coverage made available 
        under this title, a final determination regarding 
        approval of a claim for payment or disapproval of the 
        claim be made, and notification of such determination 
        be provided to the insured making such claim, not later 
        than the expiration of the 90-day period (as such 
        period may be extended pursuant to paragraph (2)) 
        beginning upon the day on which such claim was made. 
        Payment of approved claims shall be made as soon as 
        possible after such approval.
          ``(2) Extension of deadline.--The Administrator shall 
        provide that the period referred to in paragraph (1) 
        may be extended by a single additional period of 15 
        days in cases where extraordinary circumstances are 
        demonstrated. The Administrator shall, by regulation, 
        establish criteria for demonstrating such extraordinary 
        circumstances and for determining to which claims such 
        extraordinary circumstances apply.''.
  (b) Applicability.--The amendments made by subsection (a) 
shall apply to any claim under flood insurance coverage made 
available under the National Flood Insurance Act of 1968 (42 
U.S.C. 4001 et seq.) pending on the date of the enactment of 
this Act and any claims made after such date of enactment.

SEC. 604. LITIGATION PROCESS OVERSIGHT AND REFORM.

  Part C of chapter II of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new section:

``SEC. 1353. OVERSIGHT OF LITIGATION.

  ``(a) Oversight.--The Administrator shall monitor and oversee 
litigation conducted by Write Your Own companies arising under 
contracts for flood insurance sold pursuant to this title, to 
ensure that--
          ``(1) litigation expenses are reasonable, 
        appropriate, and cost-effective; and
          ``(2) Write Your Own companies comply with guidance 
        and procedures established by the Administrator 
        regarding the conduct of litigation.
  ``(b) Denial of Reimbursement for Expenses.--The 
Administrator may deny reimbursement for litigation expenses 
that are determined to be unreasonable, excessive, contrary to 
guidance issued by the Administrator, or outside the scope of 
any arrangement entered into with a Write Your Own company.
  ``(c) Litigation Strategy.--The Administrator may direct 
litigation strategy for claims arising under a contract for 
flood insurance sold by a Write Your Own company.''.

SEC. 605. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

  Part C of chapter II of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081 et seq.), as amended by the preceding 
provisions of this Act, is further amended by adding at the end 
the following new section:

``SEC. 1354. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

  ``The Administrator may not at any time newly employ in 
connection with the flood insurance program under this title 
any attorney who has been suspended or disbarred by any court, 
bar, or Federal or State agency to which the individual was 
previously admitted to practice.''.

SEC. 606. TECHNICAL ASSISTANCE REPORTS.

  (a) Use.--Section 1312 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4019), as amended by the preceding provisions 
of this Act, is further amended by adding at the end the 
following new subsection:
  ``(e) Use of Technical Assistance Reports.--When adjusting 
claims for any damage to or loss of property which is covered 
by flood insurance made available under this title, the 
Administrator may rely upon technical assistance reports, as 
such term is defined in section 1312A, only if such reports are 
final and are prepared in compliance with applicable State and 
Federal laws regarding professional licensure and conduct.''.
  (b) Disclosure.--The National Flood Insurance Act of 1968 is 
amended by inserting after section 1312 (42 U.S.C. 4019) the 
following new section:

``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.

  ``(a) In General.--Notwithstanding section 552a of title 5, 
United States Code, upon request by a policyholder, the 
Administrator shall provide a true, complete, and unredacted 
copy of any technical assistance report that the Administrator 
relied upon in adjusting and paying for any damage to or loss 
of property insured by the policyholder and covered by flood 
insurance made available under this title. Such disclosures 
shall be in addition to any other right of disclosure otherwise 
made available pursuant such section 552a or any other 
provision of law.
  ``(b) Direct Disclosure by Write Your Own Companies and 
Direct Servicing Agents.--A Write Your Own company or direct 
servicing agent in possession of a technical assistance report 
subject to disclosure under subsection (a) may disclose such 
technical assistance report without further review or approval 
by the Administrator.
  ``(c) Definitions.--For purposes of this section, the 
following definitions shall apply:
          ``(1) Policyholder.--The term `policyholder' means a 
        person or persons shown as an insured on the 
        declarations page of a policy for flood insurance 
        coverage sold pursuant to this title.
          ``(2) Technical assistance report.--The term 
        `technical assistance report' means a report created 
        for the purpose of furnishing technical assistance to 
        an insurance claims adjuster assigned by the National 
        Flood Insurance Program, including by engineers, 
        surveyors, salvors, architects, and certified public 
        accounts.''.

SEC. 607. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD INSURANCE 
                    POLICIES.

  Section 100234 of the Biggert-Waters Flood Insurance Reform 
Act of 2012 (42 U.S.C. 4013a) is amended by adding at the end 
the following new subsection:
  ``(c) Disclosure of Coverage.--
          ``(1) Disclosure sheet.--Each policy under the 
        National Flood Insurance Program shall include a 
        disclosure sheet that sets forth, in plain language--
                  ``(A) the definition of the term `flood' for 
                purposes of coverage under the policy;
                  ``(B) a description of what type of flood 
                forces are necessary so that losses from an 
                event are covered under the policy, including 
                overflow of inland or tidal waves, unusual and 
                rapid accumulation or runoff of a surface any 
                source, and mudflow;
                  ``(C) a statement of the types and 
                characteristics of losses that are not covered 
                under the policy;
                  ``(D) a summary of total cost and amount of 
                insurance coverage, and any other information 
                relating to such coverage required to be 
                disclosed under section 1308(l) of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 
                4015(l));
                  ``(E) a statement that the disclosure sheet 
                provides general information about the 
                policyholder's standard flood insurance policy;
                  ``(F) a statement that the standard flood 
                insurance policy, together with the 
                application, endorsements, and declarations 
                page, make up the official contract and are 
                controlling in the event that there is any 
                difference between the information on the 
                disclosure sheet and the information in the 
                policy; and
                  ``(G) a statement that if the policyholder 
                has any questions regarding information in the 
                disclosure sheet or policy he or she should 
                contact the entity selling the policy on behalf 
                of the Program, together with contact 
                information sufficient to allow the 
                policyholder to contact such entity.
          ``(2) Acknowledgment sheet.--Each policy under the 
        National Flood Insurance Program shall include an 
        acknowledgment sheet that sets forth, in plain 
        language--
                  ``(A) a statement of whether or not there is 
                a basement in the property to be covered by the 
                policy;
                  ``(B) a statement of whether or not the 
                policy provides coverage for the contents of 
                the property covered by the policy;
                  ``(C) a statement that the standard flood 
                insurance policy, together with the 
                application, endorsements, and declarations 
                page, make up the official contract and are 
                controlling in the event that there is any 
                difference between the information on the 
                acknowledgment sheet and the information in the 
                policy; and
                  ``(D) a statement that if the policyholder 
                has any questions regarding information in the 
                acknowledgment sheet or policy he or she should 
                contact the entity selling the policy on behalf 
                of the Program, together with contact 
                information sufficient to allow the 
                policyholder to contact such entity.
          ``(3) Required signatures.--Notwithstanding section 
        1306(c) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4013(c)), a policy for flood insurance coverage 
        under the National Flood Insurance Program may not take 
        effect unless the disclosure sheet required under 
        paragraph (1) and the acknowledgment sheet required 
        under paragraph (2), with respect to the policy, are 
        signed and dated by the policyholder and the seller of 
        the policy who is acting on behalf of the Program.''.

SEC. 608. RESERVE FUND AMOUNTS.

  Section 1310 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017) is amended by adding at the end the following new 
subsection:
  ``(g) Crediting of Reserve Fund Amounts.--Funds collected 
pursuant to section 1310A may be credited to the Fund under 
this section to be available for the purpose described in 
subsection (d)(1).''.

SEC. 609. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE ADVOCATE.

  (a) In General.--Section 24 of the Homeowner Flood Insurance 
Affordability Act of 2014 (42 U.S.C. 4033) is amended by adding 
at the end the following new subsection:
  ``(c) Staff.--The Administrator shall ensure that the Flood 
Insurance Advocate has sufficient staff to carry out all of the 
duties and responsibilities of the Advocate under this 
section.''.
  (b) Timing.--The Administrator of the Federal Emergency 
Management Agency shall take such actions as may be necessary 
to provide for full compliance with section 24(c) of the 
Homeowner Flood Insurance Affordability Act of 2014, as added 
by the amendment made by subsection (a) of this section, not 
later than the expiration of the 180-day period beginning on 
the date of the enactment of this Act.

SEC. 610. LIMITED EXEMPTION FOR DISASTER OR CATASTROPHE CLAIMS 
                    ADJUSTERS.

   Section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 
207) is amended by adding at the end the following:
  ``(s)(1) The provisions of this section shall not apply for a 
period of 2 years after the occurrence of a major disaster to 
any employee--
          ``(A) employed to adjust or evaluate claims resulting 
        from or relating to such major disaster, by an employer 
        not engaged, directly or through an affiliate, in 
        underwriting, selling, or marketing property, casualty, 
        or liability insurance policies or contracts;
          ``(B) who receives from such employer on average 
        weekly compensation of not less than $591.00 per week 
        or any minimum weekly amount established by the 
        Secretary, whichever is greater, for the number of 
        weeks such employee is engaged in any of the activities 
        described in subparagraph (C); and
          ``(C) whose duties include any of the following:
                  ``(i) interviewing insured individuals, 
                individuals who suffered injuries or other 
                damages or losses arising from or relating to a 
                disaster, witnesses, or physicians;
                  ``(ii) inspecting property damage or 
                reviewing factual information to prepare damage 
                estimates;
                  ``(iii) evaluating and making recommendations 
                regarding coverage or compensability of claims 
                or determining liability or value aspects of 
                claims;
                  ``(iv) negotiating settlements; or
                  ``(v) making recommendations regarding 
                litigation.
  ``(2) Notwithstanding any other provision of section 18, in 
the event of a major disaster, this Act exclusively shall 
govern all such employers in lieu of any State or other Federal 
law or regulation or local law or regulation, with respect to 
the employees described in paragraph (1).
  ``(3) The exemption in this subsection shall not affect the 
exemption provided by section 13(a)(1).
  ``(4) For purposes of this subsection--
          ``(A) the term `major disaster' means any natural 
        catastrophe, including any hurricane, tornado, storm, 
        high water, wind driven water, tidal wave, tsunami, 
        earthquake, volcanic eruption, landslide, mudslide, 
        snowstorm, or drought, or, regardless of cause, any 
        other catastrophe, including fire, flood, explosion, 
        land collapse, avalanche, or pollutant or chemical 
        release;
          ``(B) the term `employee employed to adjust or 
        evaluate claims resulting from or relating to such 
        major disaster' means an individual who timely secured 
        or secures a license required by applicable law to 
        engage in and perform the activities described in 
        clauses (i) through (v) of paragraph (1)(C) relating to 
        a major disaster, and is employed by an employer that 
        maintains worker compensation insurance coverage or 
        protection for its employees, if required by applicable 
        law, and withholds applicable Federal, State, and local 
        income and payroll taxes from the wages, salaries and 
        any benefits of such employees; and
          ``(C) the term `affiliate' means a company that, by 
        reason of ownership or control of twenty-five percent 
        (25%) or more of the outstanding shares of any class of 
        voting securities of one or more companies, directly or 
        indirectly, controls, is controlled by, or is under 
        common control with, another company.''.

      PART B--TEXT OF AMENDMENT TO H.R. 2874 CONSIDERED AS ADOPTED

  Page 56, line 9, strike ``The'' and insert ``Effective on 
January 1, 2019, the''.

  Page 59, line 14, strike ``The'' and insert ``Effective on 
January 1, 2019, the''.

  Strike line 18 on page 123 and all that follows through page 
125, line 6.

  Page 151, lines 2 and 3, strike ``application, 
endorsements,'' and insert ``endorsements''.

  Page 152, lines 2 and 3, strike ``application, 
endorsements,'' and insert ``endorsements''.

                                  [all]
```