I 

108TH CONGRESS 

1ST SESSION H. R. 253

To amend the National Flood Insurance Act of 1968 to reduce losses to 

properties for which repetitive flood insurance claim payments have been 

made. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2003

Mr. BEREUTER (for himself and Mr. BLUMENAUER) introduced the following 

bill; which was referred to the Committee on Financial Services 

A BILL

To amend the National Flood Insurance Act of 1968 to 

reduce losses to properties for which repetitive flood insurance claim payments have been made.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Two Floods and You 

5 Are Out of the Taxpayers’ Pocket Act of 2003’’. 

6 SEC. 2. FLOOD LOSS REDUCTION FOR REPETITIVE FLOOD 

7 INSURANCE CLAIM PROPERTIES. 

8 Section 1366 of the National Flood Insurance Act of 

9 1968 (42 U.S.C. 4104c) is amended—
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1 (1) in subsection (a), by inserting after the first 

2 sentence the following new sentence: ‘‘In awarding 

3 grants under this section for mitigation activities, 

4 the Director shall give priority to properties for 

5 which repetitive flood insurance claim payments have 

6 been made.’’; 

7 (2) in the last sentence of subsection (c), by in8 serting before the period the following: ‘‘, and shall 

9 address properties in the area for which repetitive 

10 flood insurance claim payments have been made’’; 

11 and 

12 (3) in subsection (f), by striking paragraph (3) 

13 and inserting the following new paragraph: 

14 ‘‘(3) WAIVER.—The Director may waive the 

15 dollar amount limitations under paragraphs (1) and 

16 (2) for any State or community—

17 ‘‘(A) for any 5-year period when a major 

18 disaster or emergency declared by the President 

19 (pursuant to the Robert T. Stafford Disaster 

20 Relief and Emergency Assistance Act (42 

21 U.S.C. 5121 et seq.)) as a result of flood condi22 tions is in effect with respect to areas in the 

23 State or community; or 

24 ‘‘(B) whenever the Director determines 

25 that the State or community has properties for 
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1 which repetitive flood insurance claim payments 

2 have been made and that waiver of the cost lim3 itations is cost-effective and in the best inter4 ests of the National Flood Insurance Fund.’’. 

5 SEC. 3. NATIONAL FLOOD MITIGATION FUND. 

6 (a) CREDITS.—Section 1367(b) of the National Flood 

7 Insurance Act of 1968 (42 U.S.C. 4104d(b)) is amend8 ed—

9 (1) by striking paragraph (1) and inserting the 

10 following new paragraph: 

11 ‘‘(1) amounts from the National Flood Insur12 ance Fund, in amounts not exceeding $70,000,000 

13 in each of fiscal years 2004, 2005, 2006, and 2007, 

14 of which all amounts made available under this 

15 paragraph in excess of $20,000,000 in each such fis16 cal year shall be used only under section 1366 for 

17 mitigation activities for properties for which repet18 itive flood insurance claim payments have been 

19 made, such sums to remain available until ex20 pended;’’; 

21 (2) in paragraph (2), by striking ‘‘and’’ at the 

22 end; 

23 (3) in paragraph (3), by striking the period at 

24 the end and inserting ‘‘; and’’; and 
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1 (4) by adding at the end the following new 

2 paragraph: 

3 ‘‘(4) any amounts which may be appropriated 

4 for the Fund, which are authorized to be appro5 priated in amounts not exceeding $50,000,000 in 

6 each of fiscal years 2004, 2005, 2006, and 2007, 

7 which amounts shall be used only under section 

8 1366 for mitigation activities that will address prop9 erties for which repetitive flood insurance claim pay10 ments have been made, such sums to remain avail11 able until expended.’’. 

12 SEC. 4. CONSOLIDATION OF AUTHORIZATIONS. 

13 (a) IN GENERAL.—The National Flood Insurance 

14 Act of 1968 is amended as follows: 

15 (1) BORROWING AUTHORITY.—In the first sen16 tence of section 1309(a) (42 U.S.C. 4016(a)), by 

17 striking ‘‘through September’’ and all that follows 

18 through ‘‘, and’’ and inserting the following: 

19 ‘‘through the date specified in section 1319, and’’. 

20 (2) AUTHORITY FOR CONTRACTS.—In section 

21 1319 (42 U.S.C. 4026), by striking ‘‘after’’ and all 

22 that follows and inserting ‘‘after September 30, 

23 2007.’’.

24 (3) EMERGENCY IMPLEMENTATION.—In section 

25 1336(a) (42 U.S.C. 4056(a)), by striking ‘‘during 
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1 the period’’ and all that follows through ‘‘in accord2 ance’’ and inserting ‘‘during the period ending on 

3 the date specified in section 1319, in accordance’’. 

4 (4) AUTHORIZATION OF APPROPRIATIONS FOR

5 STUDIES.—In section 1376(c) (42 U.S.C. 4127(c)), 

6 by striking ‘‘through’’ and all that follows and in7 serting the following: ‘‘through the date specified in 

8 section 1319.’’. 

9 SEC. 5. CHARGEABLE PREMIUM RATES. 

10 (a) ACTUARIAL RATE PROPERTIES.—Section 1308 of 

11 the National Flood Insurance Act of 1968 (42 U.S.C. 

12 4015) is amended by striking subsection (c) and inserting 

13 the following new subsection: 

14 ‘‘(c) ACTUARIAL RATE PROPERTIES.—Subject only 

15 to the limitation provided under paragraph (1), the 

16 chargeable rate shall not be less than the applicable esti17 mated risk premium rate for such area (or subdivision 

18 thereof) under section 1307(a)(1) with respect to the fol19 lowing properties: 

20 ‘‘(1) POST-FIRM PROPERTIES.—Any property 

21 the construction or substantial improvement of 

22 which the Director determines has been started after 

23 December 31, 1974, or started after the effective

24 date of the initial rate map published by the Direc25 tor under paragraph (2) of section 1360 for the area 
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1 in which such property is located, whichever is later, 

2 except that the chargeable rate for properties under 

3 this paragraph shall be subject to the limitation 

4 under subsection (e). 

5 ‘‘(2) REPETITIVE INSURANCE CLAIMS PROP6 ERTIES.—Any property for which the Director deter7 mines that repetitive flood insurance claim payments 

8 have been made and the owner of which has refused 

9 a buyout, elevation, or other flood mitigation meas10 ure funded in whole or in part by the Federal Emer11 gency Management Agency. 

12 ‘‘(3) CERTAIN LEASED COASTAL AND RIVER

13 PROPERTIES.—Any property leased from the Federal 

14 Government (including residential and nonresidential 

15 properties) that the Director determines is located 

16 on the river-facing side of any dike, levee, or other 

17 riverine flood control structure, or seaward of any 

18 seawall or other coastal flood control structure.’’. 

19 (b) APPLICABILITY OF ANNUAL LIMITATION ON PRE20 MIUM INCREASES.—Section 1308(e) of the National Flood 

21 Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended 

22 by striking ‘‘Notwithstanding’’ and inserting ‘‘Except with 

23 respect to properties described under paragraph (2) or (3) 

24 of subsection (c) and notwithstanding’’. 
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1 SEC. 6. REMOVING REPETITIVE INSURANCE CLAIMS PROP2 ERTIES FROM FEDERAL DISASTER ASSIST3 ANCE RESPONSIBILITY. 

4 (a) IN GENERAL.—Section 582 of the National Flood 

5 Insurance Reform Act of 1994 (42 U.S.C. 5154a) is 

6 amended—

7 (1) by redesignating subsections (d) and (e) as 

8 subsections (e) and (f), respectively; and 

9 (2) by inserting after subsection (c) the fol10 lowing new subsection: 

11 ‘‘(d) UNMITIGATED REPETITIVE INSURANCE CLAIMS

12 PROPERTIES.—Notwithstanding any other provision of 

13 law, no Federal disaster relief assistance made available 

14 in a flood disaster area may be used to make a payment 

15 (including any loan assistance payment) for repair, re16 placement, or restoration for damage to any property in 

17 the area for which—

18 ‘‘(1) repetitive flood insurance claim payments 

19 have been made; and 

20 ‘‘(2) in accordance with such requirements as 

21 the Director may establish, mitigation assistance 

22 under section 1366 of this Act or section 404 of the 

23 Robert T. Stafford Disaster Relief and Emergency 

24 Assistance Act (42 U.S.C. 5170c) has been offered 

25 to the owner of the property, before or after the oc-
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1 currence of the flood loss events, which was refused 

2 by the owner.’’. 

3 (b) EFFECTIVE DATE.—Notwithstanding subsection 

4 (f) of section 582 of the National Flood Insurance Reform 

5 Act of 1994 (as so redesignated by paragraph (1)(A) of 

6 this subsection), the amendment made by paragraph (1) 

7 shall apply to disasters declared after the date of the en8 actment of this Act. 

9 SEC. 7. MITIGATION GRANTS FOR REPETITIVE INSURANCE 

10 CLAIMS PROPERTIES. 

11 (a) IN GENERAL.—Chapter I of the National Flood 

12 Insurance Act of 1968 is amended by adding after section 

13 1322 (42 U.S.C. 4029) the following new section: 

14 ‘‘GRANTS FOR REPETITIVE INSURANCE CLAIMS

15 PROPERTIES

16 ‘‘SEC. 1323. The Director may provide funding for 

17 mitigation actions that reduce flood damages to repetitive 

18 insurance claims properties, but only if the Director deter19 mines that—

20 ‘‘(1) such activities are in the best interest of 

21 the National Flood Insurance Fund; 

22 ‘‘(2) the owner of such property has refused a 

23 buyout, elevation, or other flood mitigation measure 

24 funded in whole or in part by the Federal Emer25 gency Management Agency; and 
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1 ‘‘(3) such activities can not be funded under the 

2 program under section 1366 because—

3 ‘‘(A) the State or community in which the 

4 property is located can not comply with the re5 quirements of section 1366(g); or 

6 ‘‘(B) the State or community does not 

7 have the capacity to manage such activities.’’. 

8 (b) AVAILABILITY OF NATIONAL FLOOD INSURANCE

9 FUND AMOUNTS.—Section 1310(a) of the National Flood 

10 Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended—

11 (1) in paragraph (7), by striking ‘‘and’’ at the 

12 end; 

13 (2) in paragraph (8), by striking the period at 

14 the end and inserting ‘‘; and’’; and 

15 (3) by adding at the end the following new 

16 paragraph: 

17 ‘‘(9) for funding for mitigation actions under 

18 section 1323.’’. 

19 SEC. 8. USE RESTRICTIONS ON ACQUIRED PROPERTY. 

20 Section 1366(e)(5)(C) of the National Flood Insur21 ance Act of 1968 (42 U.S.C. 4104c(e)(5)(C)) is amended 

22 by striking ‘‘for public use, as the Director determines is 

23 consistent with sound land management and use in such 

24 area’’ and inserting the following: ‘‘except that the Direc25 tor may not provide amounts under this section for use 
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1 for acquisition of properties unless the State or community 

2 agrees, to the satisfaction of the Director, that the instru3 ment for acquisition of the property will convey to the 

4 United States a future interest in all right, title, and inter5 est in and to all property acquired with the amounts under 

6 this section that is contingent upon the condition that the 

7 property acquired ceases to be dedicated and maintained 

8 for use that is compatible with open space, recreational, 

9 or wetlands management practices.’’. 

10 SEC. 9. DEFINITIONS OF REPETITIVE FLOOD INSURANCE 

11 CLAIM PAYMENTS AND REPETITIVE INSUR12 ANCE CLAIMS PROPERTIES. 

13 Section 1370(a) of the National Flood Insurance Act 

14 of 1968 (42 U.S.C. 4121(a)) is amended—

15 (1) in paragraph (7), by inserting after the 

16 paragraph designation the following: ‘‘for purposes 

17 of sections 1304(b)(1), 1315(a)(2)(A)(i), and 

18 1366(e)(4),’’; 

19 (2) in paragraph (13), by striking ‘‘and’’ at the 

20 end; 

21 (3) in paragraph (14), by striking the period at 

22 the end and inserting a semicolon’’; and 

23 (4) by adding at the end the following new 

24 paragraphs: 
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1 ‘‘(15) the term ‘repetitive flood insurance claim 

2 payments’ means, with respect to a property, that 

3 claim payments for losses to the property have been 

4 made under flood insurance coverage under this title 

5 on more than one occasion within a 10-year period, 

6 with each such claim exceeding $1,000, without re7 gard to the ownership of the property; and 

8 ‘‘(16) the term ‘repetitive insurance claims 

9 property’ means a property with respect to which re10 petitive flood insurance claims payments have been 

11 made.’’.

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