59–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–351 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3121) TO RESTORE 

THE FINANCIAL SOLVENCY OF THE NATIONAL FLOOD INSURANCE PROGRAM AND TO PROVIDE FOR SUCH PROGRAM TO MAKE AVAILABLE 

MULTIPERIL COVERAGE FOR DAMAGE RESULTING FROM WINDSTORMS 

AND FLOODS, AND FOR OTHER PURPOSES 

SEPTEMBER 26, 2007.—Referred to the House Calendar and ordered to be printed 

Ms. MATSUI, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 683] 

The Committee on Rules, having had under consideration House 

Resolution 683, by a record vote of 8 to 3, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 3121, the Flood 

Insurance Reform and Modernization Act of 2007, under a structured rule. The rule provides one hour of general debate equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services. The rule waives all 

points of order against consideration of the bill except clauses 9 

and 10 of rule XXI. The rule provides that the amendment in the 

nature of a substitute recommended by the Committee on Financial 

Services now printed in the bill, modified by the amendment printed in Part A of this report, shall be considered as adopted. The bill 

as amended shall be considered as an original bill for the purpose 

of amendment and shall be considered as read. The rule waives all 

points of order against provisions in the bill as amended. 

The rule makes in order only those further amendments printed 

in Part B of this report. The further amendments made in order 

may be offered only in the order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report 

equally divided and controlled by the proponent and an opponent, 

shall not be subject to amendment, and shall not be subject to a 

demand for a division of the question in the House or in the Committee of the Whole. All points of order against the further amendments except for clauses 9 and 10 of rule XXI are waived. The rule 


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provides one motion to recommit with or without instructions. The 

rule provides that the Chair may postpone further consideration of 

the bill to a time designated by the Speaker. 

EXPLANATION OF WAIVERS

Although the rule waives all points of order against consideration 

of the bill (except for clauses 9 and 10 of rule XXI) and against the 

bill, as amended, the Committee is not aware of any points of order 

against consideration of the bill or against the bill as amended. The 

waivers of all points of order are prophylactic in nature. 

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. 319 

Date: September 26, 2007. 

Measure: H.R. 3121. 

Motion by: Mr. Dreier. 

Summary of motion: To grant an open rule. 

Results: Defeated 3–8. 

Vote by Members: Hastings (FL)—Nay; Matsui—Nay; Cardoza— Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Slaughter— Nay. 

Rules Committee record vote No. 320 

Date: September 26, 2007. 

Measure: H.R. 3121. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Hensarling (TX), #11, which 

would strike Section 7 of the bill which expands the NFIP to include wind coverage, and would replace Section 7 with a blue-ribbon, bipartisan commission, to study and report on legislative and 

regulatory changes that could improve the availability and competitiveness of disaster insurance. 

Results: Defeated 3–8. 

Vote by Members: Hastings (FL)—Nay; Matsui—Nay; Cardoza— Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Slaughter— Nay. 

Rules Committee record vote No. 321 

Date: September 26, 2007. 

Measure: H.R. 3121. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Garrett (NJ), #13, which would, 

after the date of enactment of the bill, require any purchaser of a 

pre-firm primary residential home that costs $600,000 or higher to 

pay phased-in actuarial flood insurance prices using the same 

phase-in structure that non-residential and non-primary homes are 

currently subject to in the legislation. 


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Results: Defeated 3–8. 

Vote by Members: Hastings (FL)—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Slaughter—

Nay. 

Rules Committee record vote No. 322 

Date: September 26, 2007. 

Measure: H.R. 3121. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Hensarling (TX), #15, which 

would terminate all subsidized NFIP rates beginning 5 years after 

enactment. 

Results: Defeated 3–8. 

Vote by Members: Hastings (FL)—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Slaughter—

Nay. 

Rules Committee record vote No. 323 

Date: September 26, 2007. 

Measure: H.R. 3121. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Hensarling (TX), #12, which 

would prohibit the offering of multi-peril coverage (like wind coverage) under NFIP until such time as the NFIP has fully repaid 

all of the money it borrowed from the Treasury for the 2005 hurricane season, including interest. 

Results: Defeated 3–8. 

Vote by Members: Hastings (FL)—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Slaughter—

Nay. 

Rules Committee record vote No. 324 

Date: September 26, 2007. 

Measure: H.R. 3121. 

Motion by: Rep. Hastings (FL). 

Summary of motion: To report the rule. 

Results: Adopted 8–3. 

Vote by Members: Hastings (FL)—Yea; Matsui—Yea; Cardoza—

Yea; Welch—Yea; Castor—Yea; Arcuri—Yea; Sutton—Yea; 

Dreier—Nay; Diaz-Balart—Nay; Hastings (WA)—Nay; Slaughter—

Yea. 

SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED

The amendment strikes the increase in borrowing authority 

available to the National Flood Insurance Program (‘‘NFIP’’) in 

order to make the bill compliant with PAYGO. 

SUMMARY OF AMENDMENTS MADE IN ORDER

(Summaries derived from information provided by sponsors.) 


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1. Frank (MA): Manager’s Amendment. The manager’s amendment does the following: (1) requires that homes insured by wind/ 

water policies comply with existing model building codes from the 

International Code Council pursuant to request from the National 

Association of Home Builders; (2) requires that specific technologies 

be used for mapping floodplains (such as geospatial technologies); 

(3) adds a professional mapping association to the Mapping Advisory Council; (4) prohibits FEMA from enforcing a penalties assessed against individual condo owners where the condo complex is 

underinsured regarding flood coverage; (5) directs FEMA to develop 

a plan to verify that the recipients of Homeowner Assistance 

Grants in Mississippi and Road Home Grants in Louisiana, funded 

by HUD Community Development Block Grants, maintain flood insurance on their properties as required as a condition of the grants; 

and (6) codifies recommendations in a recently released GAO report 

(GAO 07–1078) with respect to the National Flood Insurance Program’s payments to insurance companies for their administrative 

costs without requiring the companies to report their costs or to 

comply with the existing audit requirements. (10 minutes) 

2. Cardoza (CA)/Ross (AR)/Reyes (TX): This amendment says 

that people forced to purchase flood insurance as a result of the 

new map who have lived in an area where the levees were previously certified, and have now been decertified, will receive a 

grace period of 5 years in which they will be entitled to a 50% reduction in their flood insurance premium while the levees are being 

recertified. (10 minutes) 

3. Castor (FL): This amendment commissions a study by the 

GAO to examine the effect of the new multiperil policy on state insurance programs. (10 minutes) 

4. Castor (FL): This amendment clarifies some of the priorities 

for wind risk criteria generation. (10 minutes) 

5. Blumenauer (OR)/Welch (VT)/Gilchrest (MD): The amendment 

would require FEMA, when updating and maintaining flood maps, 

to take into consideration the impacts of global warming, the potential future impacts of global climate change-related weather 

events, and use the best available climate science in assessing flood 

and storm risks. (10 minutes) 

6. Murphy, Patrick (PA)/Arcuri (NY): This amendment would create the position of National Flood Insurance Advocate in FEMA 

which would: (1) transmit a comprehensive report to Congress 

about the major problems facing the Flood Insurance Program; and 

(2) report to Congress about the feasibility and effectiveness of establishing an Office of the Flood Insurance Advocate, headed by the 

National Flood Insurance Advocate, to assist insureds in resolving 

problems with FEMA. (10 minutes) 

7. Taylor, Gene (MS): This amendment allows multiple peril and 

flood insurance coverage of apartment buildings up to the total of 

the number of dwelling units times the maximum coverage limit 

per residential unit. (10 minutes) 

8. Taylor, Gene (MS): The amendment prohibits a company that 

sells and services flood insurance policies from including language 

in its own windstorm policies that would exclude coverage of wind 

damage solely because flooding also contributed to the damage. The 

amendment also requires the contract between an insurance company and NFIP to state that the company has a fiduciary responsiVerDate Aug 31 2005 03:50 Sep 27, 2007 Jkt 059008 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR351.XXX HR351

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bility to federal taxpayers and will act in the best interests of 

NFIP. (10 minutes) 

9. Costello (IL): The amendment provides that no changes in 

flood insurance status can go into effect until the remapping process is completed for the entire district of the Corps of Engineers affected by that map. (10 minutes) 

10. Green, Gene (TX): This amendment provides a five year 

phase-in of flood insurance premiums for low-income homeowners 

or renters whose primary residence is placed within a flood plain 

through an updating of the flood insurance program maps if the 

value of the home does not exceed 75% of the state median home 

value. (10 minutes) 

11. Berry (AR)/Ross (AR)/Hare (IL)/Emerson (MO)/Hulshof (MO)/ 

Costello (IL): The amendment authorizes the Director of FEMA to 

include a note on flood insurance rate maps identifying 100-year 

and 500-year certified levees and encouraging property owners to 

evaluate their risk of flooding. The amendment also clarifies that 

the note shall not be considered a legal requirement of participation in the national flood insurance program. (10 minutes) 

12. Walz (MN): This amendment adds to the flood map modernization provisions of H.R. 3121 a requirement that FEMA map 

areas in the 100-year floodplain that would flood if not for a ‘‘levee, 

dam, or other man-made structure.’’ (10 minutes) 

13. Stark (CA)/Burton (IN): This amendment requires written notification by first class mail to each property owner affected by a 

proposed change in flood elevations, prior to the 90-day appeal period. Notification would include an explanation of the appeal process and contact information for responsible officials. (10 minutes) 

PART A—TEXT OF AMENDMENT TO BE CONSIDERED AS 

ADOPTED 

In the heading for section 12, strike ‘‘INCREASE IN’’ and insert 

‘‘REPORT REGARDING’’. 

Strike subsection (a) of section 12 (relating to increase in borrowing authority). 

In subsection (b) of section 12, strike ‘‘, including any’’ and all 

that follows and insert the following: ‘‘that, as of the expiration of 

such period, have been borrowed under the authority of section 

1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 

4016(a)) and not yet repaid as of such date.’’. 

Strike the subsection designation and heading for subsection (b) 

of section 12. 

PART B—TEXT OF AMENDMENTS MADE IN ORDER UNDER 

THE RULE 

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FRANK OF

MASSACHUSETTS OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In the matter proposed to be inserted by section 7(a)(2) of the 

bill, amend paragraph (2) of subsection (c) to read as follows: ‘‘(2) COMMUNITY PARTICIPATION REQUIREMENT.—Multiperil 

coverage pursuant to this subsection may not be provided in 

any area (or subdivision thereof) unless an appropriate public 

body shall have adopted adequate mitigation measures (with 


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effective enforcement provisions) which the Director finds are 

consistent with the criteria for construction described in the 

International Code Council building codes relating to wind 

mitigation.’’. In the matter proposed to be inserted by section 7(d) of the bill, 

in paragraph (1) of subsection (d) strike ‘‘windstorm-prone areas as 

to land management and use, windstorm zoning, and windstorm 

damage prevention’’ and inserting ‘‘wind events as to wind hazard 

prevention’’. In the matter proposed to be inserted by the amendment made 

by section 22(a) of the bill, in subsection (k), redesignate paragraphs (4) through (8) as paragraphs (5) through (9), respectively. 

In the matter proposed to be inserted by the amendment made 

by section 22(a) of the bill, after subsection (k)(3) insert the following new paragraph: ‘‘(4) MAPPING ELEMENTS.—Each map updated under this section shall meet the following requirements: ‘‘(A) GROUND ELEVATION DATA.—The maps shall assess 

the accuracy of current ground elevation data used for hydrologic and hydraulic modeling of flooding sources and 

mapping of the flood hazard and wherever necessary acquire new ground elevation data utilizing the most up-todate geospatial technologies in accordance with the existing guidelines and specifications of the Federal Emergency 

Management Agency. 

‘‘(B) DATA ON A WATERSHED BASIS.—The maps shall develop national flood insurance program flood data on a watershed basis—

‘‘(i) to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; 

and 

‘‘(ii) to eliminate, to the maximum extent possible, 

discrepancies in base flood elevations between adjacent political subdivisions. ‘‘(C) OTHER DATA.—The maps shall include any other relevant information as may be recommended by the Technical Mapping Advisory Council reestablished by section 

22(b) of the Flood Insurance Reform and Modernization 

Act of 2007.’’. In section 22(b)(2)(A), strike ‘‘14’’ and insert ‘‘15’’. In section 22(b)(2)(B), strike ‘‘(N), and (O)’’ and insert ‘‘(O), and 

(P)’’. 

In the matter proposed to be inserted by the amendment made 

by section 22(b)(2)(E) of the bill, after subparagraph (M) insert the 

following new subparagraph: ‘‘(N) a member of a professional mapping association or 

organization;’’. At the end of the bill add the following new sections: 

SEC. 30. PROHIBITION ON ENFORCEMENT OF PENALTY ASSESSED ON 

CONDOMINIUM ASSOCIATIONS. 

Notwithstanding any other provision of law, the Director of the 

Federal Emergency Management Agency shall not apply or enforce 

any penalty relating to the national flood insurance program assessed, during 2005 or thereafter, on condominium associations 

that are underinsured under such program. 


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SEC. 31. REPORT OF ADMINISTRATIVE EXPENSES OF WRITE-YOUROWN INSURERS; INDEPENDENT AUDITS. 

Section 1348 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4084) is amended by adding at the end the following new 

subsections: 

‘‘(c) Any insurance company or other private organization executing any contract, agreement, or other appropriate arrangement 

with the Director under this part shall—

‘‘(1) annually submit to the Director a record of all administrative and operating costs of the program undertaken; and 

‘‘(2) biennially submit to the Director an independent audit 

of the program undertaken that is conducted by a certified 

public accountant to ensure that payments made are proper 

and in accordance with this Act. 

‘‘(d) The Director shall review the records and audits submitted 

under paragraphs (1) and (2) of subsection (c) to determine if such 

payments are reasonable and if the system by which the Director 

makes payments to an insurance company or other private organization under this part should be revised. 

‘‘SEC. 32. PLAN TO VERIFY MAINTENANCE OF FLOOD INSURANCE ON 

MISSISSIPPI AND LOUISIANA PROPERTIES RECEIVING 

EMERGENCY SUPPLEMENTAL FUNDS. 

‘‘The Director of the Federal Emergency Management Agency 

shall develop and implement a plan to verify that persons receiving 

funds under the Homeowner Grant Assistance Program of the 

State of Mississippi or the Road Home Program of the State of Louisiana from amounts allocated to the State of Mississippi or the 

State of Louisiana, respectively, from the Community development 

fund under the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 

2006 (Public Law 109–148) are maintaining flood insurance on the 

property for which such persons receive such funds as required by 

each such Program.’’. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CARDOZA

OF CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of section 22 of the bill, add the following new subsection: 

(e) 5-YEAR DISCOUNT OF FLOOD INSURANCE RATES FOR FORMERLY

PROTECTED AREAS.—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—

(1) in subsection (c), by inserting ‘‘and subsection (g)’’ before 

the first comma; and 

(2) by adding at the end the following new subsection: 

‘‘(g) 5-YEAR DISCOUNT OF FLOOD INSURANCE RATES FOR FORMERLY PROTECTED AREAS.—Notwithstanding any other provision of 

law relating to chargeable risk premium rates for flood insurance 

coverage under this title, in the case of any area that previously 

was not designated as an area having special flood hazards because 

the area was protected by a flood protection system and that, pursuant to remapping under section 1360(k), becomes designated as 

such an area as a result of the decertification of such flood protection system, during the 5-year period that begins upon the initial 


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such designation of the area, the chargeable premium rate for flood 

insurance under this title with respect to any property that is located within such area shall be equal to 50 percent of the chargeable risk premium rate otherwise applicable under this title to the 

property.’’. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CASTOR OF

FLORIDA, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of the bill add the following new section: 

SEC. ll. GAO STUDY OF FACTORS AFFECTING ENROLLMENT IN 

MULTIPERIL INSURANCE PROGRAM. 

(a) IN GENERAL.—The Comptroller General of the United States 

shall conduct a study to identify and analyze factors affecting enrollment in the multiperil insurance program. Such study shall include a study of the effects of the multiperil insurance program on 

enrollment and pricing of State residual property and casualty 

markets or plans and State catastrophe plans. 

(b) REPORT.—Not later than 270 days after the date of the enactment of this Act, the Comptroller General shall submit to Congress 

a report containing the conclusions of the study conducted under 

subsection (a). 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CASTOR OF

FLORIDA, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In the matter proposed to be inserted by section 7(d) of the bill, 

in paragraph (2) of subsection (d) strike ‘‘windstorms’’ and insert ‘‘windstorms, discourage density and intensity or range of use increases in locations subject to windstorm damage, and enforce restrictions on the alteration of wetlands coastal dunes and vegetation and other natural features that are known to prevent or reduce such damage’’. 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

BLUMENAUER OF OREGON, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

Subsection (k)(2) of section 1360 of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4101), as added by section 22(a) of the bill, 

is amended by adding at the end the following new subparagraph: ‘‘(C) EFFECTS OF GLOBAL WARMING.—In updating and 

maintaining maps under this section, the Director shall— ‘‘(i) take into consideration and account for the impacts of global climate change on flood, storm, and 

drought risks in the United States; ‘‘(ii) take into consideration and account for the potential future impact of global climate change-related 

weather events, such as increased hurricane activity, 

intensity, storm surge, sea level rise, and associated 

flooding; and ‘‘(iii) use the best available climate science in assessing flood and storm risks to determine flood risks and 

develop such maps.’’. 


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6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PATRICK

MURPHY OF PENNSYLVANIA, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

At the end of the bill, add the following new section: 

SEC. 30. NATIONAL FLOOD INSURANCE ADVOCATE; REPORTS. 

Chapter II of the National Flood Insurance Act of 1968 is amended by inserting after section 1330 (42 U.S.C. 4041) the following 

new section: 

‘‘SEC. 1330A. NATIONAL FLOOD INSURANCE ADVOCATE. 

‘‘(a) ESTABLISHMENT OF POSITION.—

‘‘(1) IN GENERAL.—There shall be in the Federal Emergency 

Management Agency a National Flood Insurance Advocate. 

The National Flood Insurance Advocate shall report directly to 

the Director and shall, to the extent amounts are provided pursuant to subsection (c), be compensated at the same rate as the 

highest rate of basic pay established for the Senior Executive 

Service under section 5382 of title 5, United States Code, or, 

if the Director so determines, at a rate fixed under section 

9503 of such title. 

‘‘(2) APPOINTMENT.—The National Flood Insurance Advocate 

shall be appointed by the Director and the flood insurance advisory committee established pursuant to section 1318 (42 

U.S.C. 4025) and without regard to the provisions of title 5, 

United States Code, relating to appointments in the competitive service or the Senior Executive Service. 

‘‘(3) QUALIFICATIONS.—An individual appointed under paragraph (2) shall have—

‘‘(A) a background in customer service as well as insurance; and 

‘‘(B) experience in representing individual insureds. 

‘‘(4) RESTRICTION ON EMPLOYMENT.—An individual may be 

appointed as the National Flood Insurance Advocate only if 

such individual was not an officer or employee of the Federal 

Emergency Management Agency with duties relating to the national flood insurance program during the 2-year period ending 

with such appointment and such individual agrees not to accept any employment with the Federal Emergency Management Agency for at least 5 years after ceasing to be the National Flood Insurance Advocate. Service as an employee of the 

National Flood Insurance Advocate shall not be taken into account in applying this paragraph. 

‘‘(5) STAFF.—To the extent amounts are provided pursuant to 

subsection (c), the National Flood Insurance Advocate may employ such personnel as may be necessary to carry out the duties of the Advocate. 

‘‘(b) DUTIES.—The duties of the National Flood Insurance Advocate shall be to conduct studies with respect to, and submit, the following reports: 

‘‘(1) REPORT ON PROBLEMS OF INSUREDS UNDER NATIONAL

FLOOD INSURANCE PROGRAM.—Not later than the expiration of 

the 12-month period beginning on the date of the enactment of 

the Flood Insurance Reform and Modernization Act of 2007, 

the National Flood Insurance Advocate shall submit a report 


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to the Congress regarding the national flood insurance program, which shall—

‘‘(A) identify areas in which insureds under such program have problems in dealings with the Federal Emergency Management Agency relating to such program, and 

shall contain a summary of at least 20 of the most serious 

problems encountered by such insureds, including a description of the nature of such problems; 

‘‘(B) identify areas of the law relating to the flood insurance that impose significant compliance burdens on such 

insureds or the Federal Emergency Management Agency, 

including specific recommendations for remedying such 

problems; 

‘‘(C) identify the 10 most litigated issues for each category of such insureds, including recommendations for 

mitigating such disputes; 

‘‘(D) identify the initiatives of the Agency to improve 

services for insureds under the national flood insurance 

program and actions taken by the Agency with respect to 

such program; 

‘‘(E) contain recommendations for such administrative 

and legislative action as may be appropriate to mitigate or 

resolve problems encountered by such insureds; and 

‘‘(F) include such other information as the National 

Flood Insurance Advocate considers appropriate. 

‘‘(2) REPORT ON ESTABLISHMENT OF AN OFFICE OF THE FLOOD

INSURANCE ADVOCATE.—Not later than the expiration of the 6- 

month period beginning on the date of the initial appointment 

of a National Flood Insurance Advocate under this section, the 

Advocate shall submit a report to the Congress regarding the 

feasibility and effectiveness of establishing an Office of the 

Flood Insurance Advocate, headed by the National Flood Insurance Advocate, to assist insureds under the national flood insurance program in resolving problems with the Federal Emergency Management Agency relating to such program. Such report shall examine and analyze, and include recommendations 

regarding—

‘‘(A) an appropriate structure in which to establish such 

an Office, and appropriate levels of personnel for such Office; 

‘‘(B) other appropriate functions for such an Office, 

which may include—

‘‘(i) identifying areas in which such insureds have 

problems in dealing with the Agency relating to such 

program; 

‘‘(ii) proposing changes in the administrative practices of the Agency to resolve or mitigate problems encountered by such insureds; and 

‘‘(iii) identifying potential legislative changes which 

may be appropriate to resolve or mitigate such problems; 

‘‘(C) appropriate procedures for formal response by the 

Director to recommendations submitted to the Director by 

the National Flood Insurance Advocate; 


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‘‘(D) the feasibility and effectiveness of authorizing the 

National Flood Insurance Advocate to issue flood insurance assistance orders in cases in which the Advocate determines that a qualified insured is suffering or about to 

suffer a significant hardship as a result of the manner in 

which the flood insurance laws are being administered or 

meets such other requirements may be appropriate, including examining and analyzing— ‘‘(i) appropriate limitations on the scope and effect of 

such orders; ‘‘(ii) an appropriate standard for determining such a 

significant hardship; ‘‘(iii) appropriate terms of flood insurance assistance 

orders; and ‘‘(iv) appropriate procedures for modifying or rescinding such orders; ‘‘(E) the feasibility and effectiveness of establishing offices of flood insurance advocates who report to the National Flood Insurance Advocate, including examining and 

analyzing—

‘‘(i) the appropriate coverage and geographic allocation of such offices; 

‘‘(ii) appropriate procedures and criteria for referral 

of inquiries by insureds under such program to such 

offices; ‘‘(iii) allowing such advocates to consult with appropriate supervisory personnel of the Agency regarding 

the daily operation of the offices; and ‘‘(iv) providing authority for such advocates not disclose to the Director contact with, or information provided by, such an insured; ‘‘(F) appropriate methods for developing career paths for 

flood insurance advocates referred to in subparagraph (E) 

who may choose to make a career in the Office of the Flood 

Insurance Advocate; and 

‘‘(G) such other issues regarding the establishment of an 

Office of the Flood Insurance Advocate as the National 

Flood Insurance Advocate considers appropriate. 

‘‘(3) DIRECT SUBMISSION OF REPORTS.—Each report required 

under paragraph (2) shall be provided directly to the Congress 

by the National Flood Insurance Advocate without any prior 

review or comment from the Director, the Secretary of Homeland Security, or any other officer or employee of the Federal 

Emergency Management Agency or the Department of Homeland Security, or the Office of Management and Budget. 

‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated for fiscal year 2008 and each fiscal year thereafter such sums as may be necessary to carry out this section.’’. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TAYLOR OF

MISSISSIPPI, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In the matter proposed to be inserted by the amendment made 

by section 7(a)(2) of the bill, in subsection (c)(7)(A), after ‘‘residential properties’’ insert the following: ‘‘, which shall include strucVerDate Aug 31 2005 03:50 Sep 27, 2007 Jkt 059008 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR351.XXX HR351

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tures containing multiple dwelling units that are made available 

for occupancy by rental (notwithstanding any treatment or classification of such properties for purposes of section 1306(b))’’. 

In the matter proposed to be inserted by the amendment made 

by section 7(a)(2) of the bill, in subsection (c)(7)(A)(ii), before the 

semicolon insert the following: ‘‘, which limit, in the case of such 

a structure containing multiple dwelling units that are made available for occupancy by rental, shall be applied so as to enable any 

insured or applicant for insurance to receive coverage for the structure up to a total amount that is equal to the product of the total 

number of such rental dwelling units in such property and the 

maximum coverage limit per dwelling unit specified in this clause’’. 

In section 8 of the bill, strike paragraph (3) and insert the following: 

(2) in paragraph (4)—

(A) by striking ‘‘$500,000’’ each place such term appears 

and inserting ‘‘$670,000’’; and 

(B) by inserting before ‘‘; and’’ the following: ‘‘; except 

that, in the case of any nonresidential property that is a 

structure containing more than one dwelling unit that is 

made available for occupancy by rental (notwithstanding 

the provisions applicable to the determination of the risk 

premium rate for such property), additional flood insurance in excess of such limits shall be made available to 

every insured upon renewal and every applicant for insurance so as to enable any such insured or applicant to receive coverage up to a total amount that is equal to the 

product of the total number of such rental dwelling units 

in such property and the maximum coverage limit per 

dwelling unit specified in paragraph (2); except that in the 

case of any such multi-unit, nonresidential rental property 

that is a pre-FIRM structure (as such term is defined in 

section 578(b) of the National Flood Insurance Reform Act 

of 1994 (42 U.S.C. 4014 note)), the risk premium rate for 

the first $500,000 of coverage shall be determined in accordance with section 1307(a)(2) and the risk premium 

rate for any coverage in excess of such amount shall be determined in accordance with section 1307(a)(1)’’. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TAYLOR OF

MISSISSIPPI, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of the bill, add the following new section: 

SEC. 30. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD. 

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: 

‘‘(d) REQUIREMENTS FOR WRITE-YOUR-OWN INSURERS RELATING

TO WINDSTORM AND FLOOD.—The Director may not utilize the facilities or services of any insurance company or other insurer to 

offer flood insurance coverage under this title unless such company 

or insurer enters into a written agreement with the Director that 

provides as follows: 


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13 

‘‘(1) PROHIBITION ON EXCLUSION OF WIND DAMAGE COV- ERAGE.—The agreement shall prohibit the company or insurer 

from including, in any policy provided by the company or insurer for homeowners’ insurance coverage or coverage for damage from windstorms, any provision that excludes coverage for 

wind or other damage solely because flooding also contributed 

to damage to the insured property. ‘‘(2) FIDUCIARY RESPONSIBILITY.—The agreement shall provide that the company or insurer— ‘‘(A) has a fiduciary duty with respect to the Federal taxpayers; ‘‘(B) in selling and servicing policies for flood insurance 

coverage under this title and adjusting claims under such 

coverage, will act in the best interests the national flood 

insurance program rather than in the interests of the company or insurer; and ‘‘(C) will provide written guidance to each insurance 

agent and claims adjuster for the company or insurer setting forth the terms of the agreement pursuant to subparagraphs (A) and (B).’’. 

9. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE COSTELLO

OF ILLINOIS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Subsection (k) of section 1360 of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4101), as added by section 22(a) of the bill, 

is amended by redesignating paragraph (8) as paragraph (9). 

Subsection (k) of section 1360 of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4101), as added by section 22(a) of the bill, 

is amended by inserting after paragraph (7) the following new 

paragraph: ‘‘(8) USE OF MAPS FOR RATES.—The Director shall not adjust 

the chargeable premium rate for flood insurance under this 

title based on an updated national flood insurance program 

rate map or require the purchase of flood insurance for a property not subject to such a requirement of purchase prior to the 

updating of such national flood insurance program rate map 

until an updated national flood insurance program rate map is 

completed for the entire district of the Corps of Engineers affected by the map, as determined by the district engineer for 

such district.’’. 

10. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE GENE

GREEN OF TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of section 22 of the bill, add the following new subsection: 

(e) PHASE-IN OF FLOOD INSURANCE PREMIUMS FOR LOW-COST

PROPERTIES.—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—

(1) in subsection (c), by inserting ‘‘and subsection (g)’’ before 

the first comma; and 

(2) by adding at the end the following new subsection: 


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14 

‘‘(g) 5-YEAR PHASE-IN OF PREMIUMS FOR NEWLY COVERED LOW- COST PROPERTIES.— ‘‘(1) IN GENERAL.—In the case of any area not previously designated as an area having special flood hazards that becomes 

designated as such an area as a result of remapping pursuant 

to section 1360(k), during the 5-year period that begins upon 

the initial such designation of the area, the chargeable premium rate for flood insurance under this title with respect to 

any low-cost property that is located within such area shall 

be— ‘‘(A) for the first year of such 5-year period, 20 percent 

of the chargeable risk premium rate otherwise applicable 

under this title to the property; ‘‘(B) for the second year of such 5-year period, 40 percent 

of the chargeable risk premium rate otherwise applicable 

under this title to the property; ‘‘(C) for the third year of such 5-year period, 60 percent 

of the chargeable risk premium rate otherwise applicable 

under this title to the property; 

‘‘(D) for the fourth year of such 5-year period, 80 percent 

of the chargeable risk premium rate otherwise applicable 

under this title to the property; and 

‘‘(E) for the fifth year of such 5-year period, 100 percent 

of the chargeable risk premium rate otherwise applicable 

under this title to the property. 

‘‘(2) LOW-COST PROPERTY.—For purposes of this subsection, 

the term ‘low-cost property’ means a single-family dwelling, or 

a dwelling unit in a residential structure containing more than 

one dwelling unit, that—

‘‘(A) is the principal residence of the owner or renter occupying the dwelling or unit; and 

‘‘(B) has a value, at the time of the initial designation of 

the area having special flood hazards, that does not exceed 

75 percent of median home value for the State in which 

the property is located.’’. 

11. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BERRY OF

ARKANSAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of the bill add the following new section: 

SEC. ll. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR AREAS 

PROTECTED AGAINST 100-YEAR AND 500-YEAR FLOODS BY 

CERTIFIED FLOOD CONTROL STRUCTURE. 

The National Flood Insurance Act of 1968 is amended by inserting after section 1361A (42 U.S.C. 4102a) the following new section: 

‘‘SEC. 1362. NOTATIONS ON FLOOD INSURANCE RATE MAPS FOR 

AREAS PROTECTED AGAINST 100-YEAR AND 500-YEAR 

FLOODS BY CERTIFIED FLOOD CONTROL STRUCTURE. 

‘‘(a) 100-YEAR FLOODPLAIN.—The Director may publish, through 

the publication of a national flood insurance program rate map, a 

note to designate areas protected against at least the 100-year 

flood by a certified flood control structure which shall read as follows: ‘NOTE: This area is shown as being protected from at least 

the 1-percent-annual-chance flood hazard by levee, dike, or other 

structure. Overtopping or failure of any flood control structure is 


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possible. Property owners are encouraged to evaluate their flood 

risk, based on full and accurate information, and to consider flood 

insurance coverage as appropriate.’. ‘‘(b) 500-YEAR FLOODPLAIN.—The Director may publish, through 

the issuance of a national flood insurance program rate map, a note 

to designate areas protected against at least the 500-year flood by 

a certified flood control structure which shall read as follows: 

‘NOTE: This area is shown as being protected from at least the 0.2- 

percent-annual-chance flood hazard by levee, dike, or other structure. Overtopping or failure of any flood control structure is possible. Property owners are encouraged to evaluate their flood risk, 

based on full and accurate information, and to consider flood insurance coverage as appropriate.’. ‘‘(c) EFFECT OF NOTES.—The publication of a note under subsection (a) or (b) shall not be considered a requirement of participation in the national flood insurance program.’’. 

12. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WALZ OF

MINNESOTA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Subsection (k)(2)(A)(ii) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by section 22(a) of 

the bill, is amended by striking ‘‘and’’. Subsection (k)(2)(A)(iii) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by section 22(a) of 

the bill, is amended by striking the final period and inserting ‘‘; 

and’’. Subsection (k)(2)(A) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by section 22(a) of the 

bill, is amended by adding at the end the following new clause: ‘‘(iv) the 100-year floodplain, including any area that 

would be in the 100-year floodplain if not protected by 

a levee, dam, or other man-made structure.’’. 

13. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE STARK OF

CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In the matter proposed to be inserted by the amendment made 

by section 23 of the bill, in section 1363(a)(2), strike ‘‘and’’ at the 

end. 

In the matter proposed to be inserted by the amendment made 

by section 23 of the bill, in section 1363(a)(3), strike the period at 

the end and insert ‘‘; and’’. 

In the matter proposed to be inserted by the amendment made 

by section 23 of the bill, after paragraph (3) of section 1363(a) insert the following new paragraph: 

‘‘(4) by providing written notification, by first class mail, to 

each owner of real property affected by the proposed elevations 

of—

‘‘(A) the status of such property, both prior to and after 

the effective date of the proposed determination, with respect to flood zone and flood insurance requirements under 

this Act and the Flood Disaster Protection Act of 1973; 

‘‘(B) the process under this section to appeal a flood elevation determination; and 


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‘‘(C) the mailing address and phone number of a person 

the owner may contact for more information or to initiate 

an appeal.’’. 

Æ 


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