89–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 111–537 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5114) TO EXTEND THE 

AUTHORIZATION FOR THE NATIONAL FLOOD INSURANCE PROGRAM, TO 

IDENTIFY PRIORITIES ESSENTIAL TO REFORM AND ONGOING STABLE 

FUNCTIONING OF THE PROGRAM, AND FOR OTHER PURPOSES 

JULY 14, 2010.—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. 1517] 

The Committee on Rules, having had under consideration House 

Resolution 1517, by a nonrecord vote, 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. 5114, the ‘‘Flood 

Insurance Reform Priorities Act of 2010,’’ under a structured rule. 

The resolution provides one hour of general 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 except those arising under 

clause 9 or 10 of rule XXI. The resolution provides that the amendment in the nature of a substitute recommended by the Committee 

on Financial Services shall be considered as an original bill for the 

purpose of amendment and shall be considered as read. The resolution waives all points of order against the amendment in the nature of a substitute except those arising under clause 10 of rule 

XXI. This waiver does not affect the point of order available under 

clause 9 of rule XXI (regarding earmark disclosure). The resolution 

makes in order only those amendments printed in this report. The 

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 division of the question. 

The resolution waives all points of order against the amendments 

made in order except those arising under clause 9 or 10 of rule 

XXI. The resolution provides one motion to recommit with or withVerDate Mar 15 2010 05:00 Jul 15, 2010 Jkt 089008 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR537.XXX HR537

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out instructions. The resolution provides that the Chair may entertain a motion that the Committee rise only if offered by the chair 

of the Committee on Financial Services or a designee. Finally, the 

resolution provides that the Chair may not entertain a motion to 

strike out the enacting words of the bill. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except those arising under clause 9 or 10 of rule XXI) includes a 

waiver of section 303 of the Congressional Budget Act (regarding 

outyear spending and revenues). The waiver of all points of order 

against the committee amendment in the nature of a substitute 

(except those arising under clause 10 of rule XXI) includes a waiver 

of section 303 of the Congressional Budget Act (regarding outyear 

spending and revenues). 

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. 462 

Date: July 14, 2010. 

Measure: H.R. 5114. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Hensarling (TX), #17, which 

would strike section 18 (Grants for Outreach to Property Owners 

and Renters). 

Results: Defeated 2–6. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 463 

Date: July 14, 2010. 

Measure: H.R. 5114. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Garrett (NJ), #30, which would 

extend the authorizations in the bill to 2012, instead of 2015 as is 

in the bill. 

Results: Defeated 2–6. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 464 

Date: July 14, 2010. 

Measure: H.R. 5114. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Neugebauer (TX), #58, which 

would apply the phase in of full actuarial rates that begins after 

three years for certain types of pre-FIRM properties (nonresidential 


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properties, second homes, and newly sold pre-FIRM residences) to 

all pre-FIRM properties. The phase in period, effective date and 

transition period remain the same. 

Results: Defeated 2–6. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 465 

Date: July 14, 2010. 

Measure: H.R. 5114. 

Motion by: Dr. Foxx. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Bachmann (MN), #43, which 

would strike section 22 (relating to flood insurance advocate). It 

also would require the GAO to issue a report on common problems 

insured individuals have in their interactions with FEMA and on 

laws that impose compliance burdens on insurers or FEMA. This 

amendment would direct the GAO to identify potential legislative, 

administrative, or regulatory changes that may be appropriate to 

mitigate such problems. 

Results: Defeated 2–6. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 466 

Date: July 14, 2010. 

Measure: H.R. 5114. 

Motion by: Mr. Dreier. 

Summary of motion: To report an open rule. 

Results: Defeated 2–6. 

Vote by Members: Matsui—Nay; Cardoza—Nay; Arcuri—Nay; 

Perlmutter—Nay; Pingree—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 

SUMMARY OF AMENDMENTS MADE IN ORDER

1. Waters (CA): Would (1) Phase out subsidized premiums for severe repetitive loss properties, substantially damaged or improved 

properties and policyholders who voluntarily allow flood coverage to 

lapse. (2) Clarify application of actuarial rate phase-in for preFIRM properties sold after enactment. (3) Provide preferred rate 

premium for properties participating in NFIP during newly established, 5-year delay in mandatory flood insurance purchase requirement. (4) Expand availability of installment premium payment program to all policyholders. (5) Clarify that the FEMA Director may 

work directly with property owners to make mitigation grants for 

certain repetitive loss properties where States or communities are 

either unable or unwilling to address repetitive loss issues with a 

property owner. (6) Allow commercial properties with swimming 

pools located below the base flood level to enclose those pools with 

breakaway walls outside of hurricane season. (7) Require FEMA to 

review mapping of surrounding properties following successful appeal of hazard designation in newly mapped areas. (8) Clarify ability of FEMA Administrator to use demolition and rebuilding as 


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mitigation techniques. (9) Require study of the impact of working 

waterfronts on storm and flood risk. (10) Establish relevant flood 

insurance related studies. (11) Conform rule writing and implementation of various provisions of bill. (12) Include other technical improvements. (20 minutes) 

2. Putnam (FL): Would require the FEMA to annually submit a 

report (no later than December 31 of each calendar year) to Congress on the effectiveness of grants awarded to local government 

agencies, the activities conducted and the effect of such activities 

on the retention or acquisition of flood insurance coverage. (10 minutes) 

3. Driehaus (OH), Welch (VT), Hinchey (NY): Would provide that 

if the owner of any property located in an area described in section 

102(i)(1) of the Flood Disaster Protection Act of 1973 obtains a letter of map amendment during the 5-year period for such area referred to in such section, FEMA shall reimburse such owner, or 

such entity or jurisdiction acting on such owner’s behalf, for any 

costs incurred in obtaining such letter. (10 minutes) 

4. Flake, Jeff (AZ): Would prohibit funds made available for 

grants from being used for earmarks. (10 minutes) 

5. Taylor (MS): Would prohibit the Write Your Own insurance 

companies that contract with NFIP from excluding coverage of 

wind damage under their own policies solely because flooding also 

caused damage to the property. It would establish requirements for 

adjustment by WYO insurers when there are claims on the same 

property, from the same event, for flood damage covered by NFIP 

and for wind damage covered by the WYO insurer. (10 minutes) 

6. Miller, Candice (MI): Would require that the Government Accountability Office conduct a study on ways the private insurance 

market can contribute to insuring against flood damage; the impact 

on the National Flood Insurance Program if communities were to 

opt out; and the feasibility of regionalizing the National Flood Insurance Program so there is no cross-subsidization between regions. (10 minutes) 

7. Boswell (IA): Would ensure occupants have relevant information on appropriate evacuation routes, and ensure the outreach program under the bill includes relevant information on where to obtain coverage. (10 minutes) 

8. Hill (IN): Would include ‘‘identifying ways to assist communities in efforts to fund the accreditation of flood protection systems’’ as a function of the Office of the Flood Insurance Advocate. 

(10 minutes) 

9. Loebsack (IA): Would require FEMA to notify a local television 

and radio station of proposed flood elevation determinations in addition to the current requirement of publication in a prominent 

local newspaper. Would also require FEMA to make such notifications for communities that have not yet been issued a Letter of 

Final Determination through the flood insurance map modernization process at the time of enactment. (10 minutes) 

10. McMahon (NY): Would (1) permit federal grants to educate 

local real estate agents in communities participating in the NFIP 

regarding the program and the availability of coverage under the 

program for owners and renters of properties and (2) establish coordination and liaisons with such agents to facilitate purchase of 


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coverage and increase awareness of flood risk reduction. (10 minutes) 

11. Murphy, Scott (NY): Would require all funds authorized 

under the Act to be expended in a manner consistent with the 

manual on Standards of Ethical Conduct for Employees of the Executive Branch. (10 minutes) 

TEXT OF AMENDMENTS TO BE MADE IN ORDER

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WATERS OF

CALIFORNIA, OR HER DESIGNEE, DEBATABLE FOR 20 MINUTES

Page 9, strike lines 1 through 3 and insert the following: 

SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR CERTAIN PRE-FIRM 

PROPERTIES, SEVERE REPETITIVE LOSS PROPERTIES, 

AND PROPERTIES SUBSTANTIALLY DAMAGED OR SUBSTANTIALLY IMPROVED. 

Page 9, lines 7 and 8, strike ‘‘paragraph (5)’’ and insert ‘‘paragraph (7)’’. 

Page 9, lines 21 and 22, strike ‘‘USED AS PRINCIPAL RESIDENCES’’. 

Page 10, lines 5 and 6, strike ‘‘date of enactment’’ and insert ‘‘effective date of this paragraph, pursuant to section 5(c)(1)’’. 

Page 10, line 7, strike the quotation marks and the last period. 

Page 10, after line 7, insert the following: 

‘‘(5) SEVERE REPETITIVE LOSS PROPERTIES.—Any severe repetitive loss property, as such term is defined in section 1361A(b), 

that is so designated as such as a result of losses occurring on 

or after the date of the enactment of the Flood Insurance Reform Priorities Act of 2010. 

‘‘(6) PROPERTIES SUBSTANTIALLY DAMAGED OR SUBSTANTIALLY

IMPROVED.—Any property that, on or after the date of the enactment of the Flood Insurance Reform and Priorities Act of 

2010, has experienced or sustained— 

‘‘(A) substantial damage exceeding 50 percent of the fair 

market value of such property; or 

‘‘(B) substantial improvement exceeding 30 percent of 

the fair market value of such property.’’. 

Page 10, line 20, strike ‘‘paragraph (5)’’ and insert ‘‘paragraph 

(7)’’. 

Page 11, line 7, strike ‘‘or (4)’’ and insert ‘‘(4), (5), or (6)’’. 

Page 12, line 21, strike ‘‘and (4)’’ and insert ‘‘(4), (5), and (6)’’. 

Page 13, line 6, strike ‘‘subsection’’ and insert ‘‘subsections’’. 

Page 13, line 13, strike ‘‘September 30, 2008’’ and insert ‘‘September 30, 2007’’. 

Page 14, line 22, strike the quotation marks and the last period. 

Page 14, after line 22, insert the following: 

‘‘(j) AVAILABILITY OF PREFERRED RISK RATING METHOD PREMIUMS.—The preferred risk rate method premium shall be available for flood insurance coverage for properties located in areas referred to in subsection (i)(1) and during the time period referred to 

in subsection (i)(1).’’. 

Page 15, line 13, before ‘‘Section’’ insert ‘‘(a) IN GENERAL.—’’. 

Page 17, after line 3, insert the following: 

(b) REGULATION OR NOTICE.—The Administrator of the Federal 

Emergency Management Agency shall issue an interim final rule 

or notice to implement this section and the amendments made by 


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this section as soon as practicable after the date of the enactment 

of this Act. 

Strike line 20 on page 18 and all that follows through page 19, 

line 2, and insert the following: 

(b) REGULATIONS.—The Administrator of the Federal Emergency 

Management Agency shall promulgate regulations to implement 

this section and the amendments made by this section as soon as 

practicable, but not more than 18 months after the date of the enactment of this Act. Section 5 may not be construed to annul, alter, 

affect, authorize any waiver of, or establish any exception to, the 

requirement under the preceding sentence. 

Page 19, after line 8, insert the following new section: 

SEC. 10. DISCOUNTED FLOOD INSURANCE RATES FOR PROPERTIES 

PROTECTED BY A FLOOD-PROTECTION SYSTEM FROM 

LESS THAN A 100-YEAR FREQUENCY FLOOD. 

Section 1307 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4014) is amended by adding at the end the following new 

subsection: 

‘‘(g) Except as provided in subsection (f) and notwithstanding any 

other provision of law, flood insurance coverage shall be made 

available for a property that the Director determines is protected 

by a flood-protection system that does not provide protection 

against a 100-year frequency flood at premium rates that reflect a 

discount for the actual protection against flood risk afforded by 

such flood-protection system.’’. 

Page 21, after line 21, insert the following new section: 

SEC. 11. PROHIBITION OF EXTENSION OF SUBSIDIZED RATES TO 

LAPSED POLICIES. 

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: 

‘‘(i) PROHIBITION OF EXTENSION OF SUBSIDIZED RATES TO LAPSED

POLICIES.—The Director shall not provide flood insurance coverage 

under this title to any prospective insured at a rate less than the 

applicable estimated risk premium rates for the area (or subdivision thereof) for any policy under the flood insurance program that 

has lapsed in coverage, as a result of the deliberate choice of the 

holder of such policy.’’. 

Page 22, line 25, strike the semicolon and insert a period. 

Page 22, after line 25, insert the following new sections: 

SEC. 13. COMMUNITY OUTREACH PLAN FOR UPDATING FLOODPLAIN 

AREAS AND FLOOD-RISK ZONES. 

The Administrator of the Federal Emergency Management Agency shall, not later than the expiration of the 60-day period beginning upon the date of the enactment of this Act, submit to the Congress a community outreach plan for the updating of floodplain 

areas and flood-risk zones under section 1360(f) of the National 

Flood Insurance Act of 1968 (42 U.S.C. 4101(f)). 

SEC. 14. NOTIFICATION OF ESTABLISHMENT OF FLOOD ELEVATIONS. 

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: 


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‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF MAP MODERNIZATION .—Upon any revision or update of any floodplain area 

or flood-risk zone pursuant to subsection (f), any decision pursuant 

to subsection (f)(1) that such revision or update is necessary, any 

issuance of preliminary maps for such revision or updating, or any 

other significant action relating to any such revision or update, the 

Director shall notify the Senators for each State affected, and each 

Member of the House of Representatives for each congressional district affected, by such revision or update in writing of the action 

taken.’’. 

Page 27, line 8, strike ‘‘LOW-INCOME POLICYHOLDERS’’ 

and insert ‘‘RESIDENTIAL PROPERTIES’’. 

Page 27, line 13, strike ‘‘LOW-INCOME POLICYHOLDERS’’ and insert 

‘‘RESIDENTIAL PROPERTIES’’. 

Page 27, strike line 16 and all that follows through ‘‘is employed’’ 

in line 22. 

Page 27, line 23, strike ‘‘monthly’’. 

Page 27, after line 23, insert the following new section: 

SEC. 19. TERMINATION OF FORCE-PLACED INSURANCE. 

Section 102(e) of the Flood Disaster Protection Act of 1973 (42 

U.S.C. 4012a(e)) is amended— 

(1) by redesignating paragraphs (3) and (4) as paragraphs (5) 

and 6), respectively; and 

(2) by adding inserting after paragraph (2) the following new 

paragraphs: 

‘‘(3) TERMINATION OF FORCE-PLACED INSURANCE.—Within 15 

days of receipt by the lender or servicer of a confirmation of 

a borrower’s existing flood insurance coverage, the lender or 

servicer shall— 

‘‘(A) terminate the force-placed insurance; and 

‘‘(B) refund to the borrower all force-placed insurance 

premiums paid by the borrower during any period during 

which the borrower’s flood insurance coverage and the 

force-placed flood insurance coverage were each in effect, 

and any related fees charged to the borrower with respect 

to the force-placed insurance during such period. 

‘‘(4) SUFFICIENCY OF DEMONSTRATION.—A lender or servicer 

for a loan shall accept any reasonable form of written confirmation from a borrower of existing flood insurance coverage, 

which shall include the existing flood insurance policy number 

along with the identity of, and contact information for, the insurance company or agent.’’. 

Page 30, after line 20, insert the following new section: 

SEC. 21. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES 

FOR INDIVIDUAL REPETITIVE CLAIMS PROPERTIES. 

(a) DIRECT GRANTS TO OWNERS.—Section 1323 of the National 

Flood Insurance Act of 1968 (42 U.S.C. 4030) is amended— 

(1) in the section heading, by inserting ‘‘DIRECT’’ before ‘‘GRANTS’’; and 

(2) in the matter in subsection (a) that precedes paragraph 

(1)— 

(A) by inserting ‘‘, to owners of such properties,’’ before 

‘‘for mitigation actions’’; and 

(B) by striking ‘‘1’’ and inserting ‘‘two’’. 


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(b) AVAILABILITY OF FUNDS.—Paragraph (9) of section 1310(a) of 

the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is 

amended by inserting ‘‘which shall remain available until expended,’’ after ‘‘any fiscal year,’’. 

Page 31, line 4, strike ‘‘(h)’’ and insert ‘‘(i)’’. 

Page 33, line 14, strike ‘‘(g)’’ and insert ‘‘(i)’’. 

Page 34, line 19, strike ‘‘and’’. 

Page 34, line 22, strike the period and insert ‘‘; and’’. 

Page 34, after line 22 insert the following: 

‘‘(F) the number of flood-related major disaster or emergency declarations made by the President with respect to 

the relevant area under the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act (42 U.S.C. 5121 et 

seq.) during the preceding five years. 

Page 34, line 25, strike ‘‘(h)’’ and insert ‘‘(i)’’. 

Page 35, after line 4, insert the following new subsection: 

‘‘(g) COORDINATION WITH OTHER AGENCIES.—A local governmental agency that receives a grant under this section, and an entity that receives amounts pursuant to subsection (f), may coordinate or contract with other agencies and entities having particular 

capacities, specialties, or experience with respect to certain populations or constituencies, including elderly or disabled families or 

persons, to carry out activities described in subsection (b) with respect to such populations or constituencies.’’. 

Page 35, line 5, strike ‘‘(g)’’ and insert ‘‘(h)’’. 

Page 35, line 14, strike ‘‘(h)’’ and insert ‘‘(i)’’. 

Page 35, after line 16, insert the following new section: 

SEC. 24. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF 

HURRICANE SEASON. 

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

4001 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. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE 

OF HURRICANE SEASON. 

‘‘In the case of any property that is otherwise in compliance with 

the coverage and building requirements of the national flood insurance program, the presence of an enclosed swimming pool located 

at ground level or in the space below the lowest floor of a building 

after November 30 and before June 1 of any year shall have no effect on the terms of coverage or the ability to receive coverage for 

such building under the national flood insurance program established pursuant to this title, if the pool is enclosed with non-supporting breakaway walls.’’. 

Page 36, line 17, strike ‘‘and’’ and insert a comma. 

Page 36, line 17, before the period insert ‘‘, and the national flood 

insurance program’’. 

Page 39, line 6, strike ‘‘and’’. 

Page 39, line 10, strike the period and insert a semicolon. 

Page 39, after line 10 insert the following: 

‘‘(E) facilitate the sharing of the best-practices of the 

Federal Emergency Management Agency amongst all offices of the Agency with respect to the creation and updating of floodplain maps; 

‘‘(F) not less than one year after receipt of a request 

from a community, perform an economic impact analysis 


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for such community on the economic impact of floodplain 

maps and floodplain map determinations on small businesses, lending, real estate development, and other economic indicators within such community; 

‘‘(G) establish a national arbitration panel regarding 

flood map modernization, with panel members consisting 

of experts in flood insurance, flood map determination, real 

estate development, structural engineering, and other such 

experts, including a representative from the Federal Emergency Management Administration, to allow individuals or 

communities impacted by a flood map revision to challenge 

such a revision; such panel may, under such terms and 

conditions it may establish, temporarily suspend implementation of a floodplain map pending such panel’s review 

of evidence submitted by such individuals or communities 

as part of such challenge; 

‘‘(H) establish a process under which scientific and engineering data, including maps and an explanation of how 

the Director makes a determination regarding a map revision, will be made publicly available to any interested individuals to be impacted by a flood map revision; and 

‘‘(I) establish a process under which each community to 

be impacted by a flood map revision will be provided an 

open community forum to consult with and ask questions 

of representatives of the Federal Emergency Management 

Administration. 

Page 41, after line 8, insert the following new sections: 

SEC. 29. TREATMENT OF PREVIOUSLY MAPPED AREAS. 

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) TREATMENT OF PREVIOUSLY MAPPED AREAS.—If the Director 

issues a letter of map revision for an area or a portion of an area 

to correct an error in a recently issued flood insurance rate map 

and such letter results in the designation of such area as not having special flood hazards, the Director shall reexamine the designation of any areas bordering or abutting the area that was the subject of such letter if such areas are located within a special flood 

hazard area. The Director shall inform the community and residents within such area of the results of such examination no later 

than one year after the date of the initial letter of map revision. 

‘‘SEC. 30. REMAPPING OF AREAS WITH IMPROVED LEVEES. 

‘‘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: 

‘‘ ‘(a) REMAPPING OF AREAS WITH IMPROVED LEVEES.—If at any 

time any community, any State, the Army Corps of Engineers, or 

any other entity improves any levee system that protects any area 

that is located in an area having special flood hazards and the Director determines that such improvement mitigates flood risk in a 

manner that eliminates the risk of flooding in the area, the Director shall— 

‘‘ ‘(1) revise and update the floodplain areas and flood risk 

zones, and the flood insurance maps reflecting such areas and 


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zones, for the areas protected by such levee system so that any 

requirement under the Flood Disaster Protection Act of 1973 

for mandatory purchase of flood insurance does not apply to 

such area; and 

‘‘ ‘(2) make the updated maps and any information regarding 

such updating available to the affected communities.’.’’. 

Page 41, line 12, strike ‘‘Section’’ and insert the following: 

(a) FLOOD MITIGATION ASSISTANCE PROGRAM.—Section 

Page 41, line 15, before the quotation marks insert ‘‘of properties 

to at least base flood elevation or greater, if required by any local 

ordinance’’. 

Page 41, after line 15, insert the following: 

(b) SENSE OF CONGRESS.—It is the sense of Congress that section 

1366 of the Flood Insurance Act of 1968 (42 U.S.C. 4104c), as in 

effect on the day before the date of enactment of this Act, authorized the Administrator of the Federal Emergency Management 

Agency to consider property demolition and rebuilding as eligible 

activities under the Flood Mitigation Assistance Program. The purpose of the amendment made by subsection (a) is to clarify that 

such authority exists. 

Page 42, line 15, before the period insert ‘‘AND FAMILIES IN 

RURAL COMMUNITIES AND ON INDIAN RESERVATIONS’’. 

Page 42, line 21, after ‘‘(42 U.S.C. 1437a(b)))’’ insert ‘‘, families 

residing in rural communities, and families who reside on Indian 

reservations,’’. 

Page 44, line 14, strike ‘‘and’’. 

Page 44, line 20, strike the period and insert a semicolon. 

Page 44, after line 20, insert the following new paragraphs: 

(7) the impact of such a building code requirement on rural 

communities with different building code challenges than more 

urban environments; and 

(8) the impact of such a building code requirement on Indian 

reservations. 

Page 45, after line 5, insert the following new sections: 

SEC. 36. STUDY REGARDING CERTAIN HARBOR AREAS. 

(a) STUDY.—The Administrator of the Federal Emergency Management Agency shall carry out a study to identify the impacts of 

the National Flood Insurance Program on harbor areas that are 

working waterfronts, which shall— 

(1) identify the models and assumptions used under such 

program with respect to wave action in working waterfronts 

and harbors; 

(2) determine whether these are the same models and assumptions used for open or unprotected coast lines; 

(3) identify the assumptions used under such program in 

modeling V-zones; 

(4) identify the underlying basis for projected impact of 

waves on working waterfronts, 

(5) identify the frequency with which individual working waterfronts receive revised flood-risk based on the data they provide; 

(6) determine the feasibility of basing flood maps for such 

working waterfronts on actual historical flood and damage 

data; 


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(7) identify the standards for construction and design of 

working waterfront infrastructure that would be needed to 

safely develop commercial buildings in the V-zone; 

(8) determine the economic impacts of the National Flood Insurance Program on working waterfronts and working waterfront dependant businesses; 

(9) identify any new or alternative models that may be used 

to more accurately reflect the risk of flooding in working waterfronts and harbor environments; 

(10) review the current coastal flood insurance study guidelines and recommended methodologies; 

(11) determine whether methodologies other than those referred to in paragraph (10) should be applied with respect to 

complicated harbors and open shorelines; 

(12) review where 2-D ST Wave methodology should be applied and where other methodologies should be applied; 

(13) review available data on wave attenuation through pilings and piers and determine whether a physical model for the 

attenuation of waves in that environment can be undertaken 

to derive such data; and 

(14) include any other information the Administrator considers relevant to evaluating the flood risk and insurance challenges facing working waterfronts. 

(b) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Administrator shall submit to the Congress 

a report setting forth the results and conclusions of the study, including— 

(1) a description of all of the matters identified and determined pursuant to subsection (a); and 

(2) an analysis of the feasibility of developing a sheltered 

harbor flood zone for purposes of the National Flood Insurance 

Program that specifically recognizes the unique challenges 

faced by working waterfronts and built-up harbors. 

(c) DEFINITION.—In this section, the term ‘‘working waterfront’’ 

means real property (including support structures over water and 

other facilities) that provides access to coastal waters to persons 

engaged in commercial fishing, recreational fishing business, 

boatbuilding, aquaculture, or other water-dependent coastal-related 

business and is used for, or that supports, commercial fishing, recreational fishing, boatbuilding, aquaculture, or other water-dependent coastal-related business. 

SEC. 37. STUDY REGARDING HAZARD MODELING. 

The Administrator of the Federal Emergency Management Agency shall conduct a study to identify and assess the impacts, including short-term and long-term impacts, of significant flooding events 

and subsequent revisions of hazard modeling and mapping since 

January 1, 2000, on the financial soundness of the national flood 

insurance program. The Administrator may enter into an agreement with Water Resources Research Institutes to conduct the 

study under this section. The Administrator shall provide for a 

final report regarding the study to be submitted to the Congress 

not later than the expiration of the 16-month period beginning on 

the date of the enactment of this Act. The report may include recommendations of the Administrator with respect to revising hazard 

modeling and mapping. 


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Strike line 16 on page 46 and all that follows through page 47, 

line 7, and insert the following: 

SEC. 40. INTERIM FINAL RULEMAKING. 

The Administrator of the Federal Emergency Management Agency shall issue an interim final rule to implement the amendments 

made by this Act as soon as practicable, but not more than 18 

months after the date of the enactment of this Act. The Administrator of the Federal Emergency Management Agency shall issue 

a final rule within one year after the effective date of the interim 

final rule. In the event that the deadlines in this section are not 

met, the Administrator shall report to the Congress monthly on the 

status of the rulemakings and the reasons for the failure to comply 

with the statutory deadlines. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PUTNAM

OF FLORIDA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 35, strike line 5 and insert the following: 

‘‘(g) REPORTING.— 

‘‘(1) LOCAL GOVERNMENTS.—Each local government agency 

that’’. 

Page 35, after line 13, insert the following new paragraph: 

‘‘(2) DIRECTOR.—The Director shall submit an annual report, 

not later than December 31 of each year, to the Committee on 

Financial Services of the House of Representatives and the 

Committee on Banking, Housing, and Urban Affairs of the 

Senate on the effectiveness of grants awarded under this section to local government agencies, the activities conducted 

using such grant amounts, and the effect of such activities on 

the retention or acquisition of flood insurance coverage.’’. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE DRIEHAUS

OF OHIO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 46, after line 15, insert the following new section: 

SEC. 30. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS 

OBTAINING LETTERS OF MAP AMENDMENT. 

If the owner of any property located in an area described in section 102(i)(1) of the Flood Disaster Protection Act of 1973 (as added 

by the preceding provisions of this Act) obtains a letter of map 

amendment during the 5-year period for such area referred to in 

such section, the Administrator of the Federal Emergency Management Agency shall reimburse such owner, or such entity or jurisdiction acting on such owner’s behalf, for any costs incurred in obtaining such letter. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FLAKE OF

ARIZONA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 35, line 16, strike the quotation marks and the last period. 

Page 35, after line 16, insert the following new subsection: 

‘‘(i) PROHIBITION ON EARMARKS.—No amounts made available for 

grants under this section may be used for a Congressional earmark 


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as defined in clause 9(e) of Rule XXI of the Rules of the House of 

Representatives.’’. 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TAYLOR OF

MISSISSIPPI, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 35, after line 16, insert the following new section: 

SEC. ll. 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 

subsections: 

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

TO WINDSTORM AND FLOOD.— 

‘‘(1) WRITTEN AGREEMENT.—The Director may not utilize the 

facilities or services of any insurance company or other insurer 

or entity to offer flood insurance coverage under this title unless such company, insurer, or entity enters into a written 

agreement with the Director that provides as follows: 

‘‘(A) PROHIBITION ON EXCLUSION OF WIND DAMAGE COVERAGE.—The agreement shall prohibit the company, insurer, or entity 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. 

‘‘(B) FIDUCIARY RESPONSIBILITY.—The agreement shall 

provide that the company, insurer, or entity— 

‘‘(i) has a fiduciary duty with respect to the Federal 

taxpayers; 

‘‘(ii) 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, insurer, or entity; and 

‘‘(iii) will provide written guidance to each insurance 

agent and claims adjuster for the company, insurer, or 

entity that sets forth the terms of the agreement pursuant to subparagraph (A) and this subparagraph. 

‘‘(2) REQUIREMENTS FOR ADJUSTMENT OF CLAIMS.—The Director shall, in utilizing the facilities of any insurance company or 

other insurer or entity pursuant to this section to offer flood 

insurance coverage under this title, the Director shall provide 

as follows: 

‘‘(A) APPROVAL OF ADJUSTMENT PROCEDURES.—No such 

insurance company, other insurer, or entity may offer flood 

insurance coverage under this title unless the Director has 

approved, as meeting standards as the Director shall establish, the procedures, protocols, guidelines, standards, or 

instructions used by the company, insurer, or entity in adjusting claims for identifying, apportioning, quantifying, 

and differentiating damage caused by flooding and damage 

caused by wind. 


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‘‘(B) TREATMENT OF WIND AND FLOOD CLAIMS FROM SAME

EVENT.—The Director shall require any insurance company 

or other insurer or entity that, pursuant to this section, 

provides flood insurance coverage under this title for a 

property and that also provides insurance coverage for the 

same property for losses resulting from wind, when claims 

are made both for damage resulting from flood and for 

damage resulting from wind involved in a single event, to 

comply with the following requirements: 

‘‘(i) CONTEMPORANEOUS ADJUSTMENT.—The claims 

for damage to the property under the coverage under 

this title for losses from flood and under the coverage 

for losses from wind shall be adjusted contemporaneously. 

‘‘(ii) INCLUSIONS IN FLOOD CLAIM FILE.—The insurance company, other insurer, or entity shall obtain 

and include in the file maintained with respect to any 

claim under the flood insurance coverage under this 

title, and make available to the Director upon request, 

the following information relating to the wind claim: 

‘‘(I) The amount paid on the claim and the date 

of such payment. 

‘‘(II) An explanation of rationale used by the 

company, insurer, or entity in determining which 

damage resulted from flood and which damage resulted from wind. 

‘‘(III) Copies of any photographs, witness statements, and other evidence related to the wind or 

flood claim. 

‘‘(iii) REVIEW.—The Director shall review the information obtained pursuant to clause (ii) to ensure 

that— 

‘‘(I) claims are paid under coverage under this 

title only for losses resulting from flood; and 

‘‘(II) in the adjusting the claims, the insurance 

company or other insurer or entity complied with 

procedures, protocols, guidelines, standards, or instructions for identifying, apportioning, quantifying, and differentiating damage caused by flooding and damage caused by wind that have been 

approved by the Director as meeting the standards established by the Director pursuant to subparagraph (A). 

‘‘(iv) PAYMENT UNDER FLOOD COVERAGE WHEN CAUSE

OF LOSS CANNOT BE DETERMINED.—If the insurance 

company or other insurer or entity determines that 

the loss claimed was caused by flooding or wind, but 

that the evidence is insufficient to differentiate the 

losses caused by flooding from those caused by wind, 

the company, insurer, or entity shall pay the claim 

under the flood insurance coverage for the property as 

if the entire loss were caused by flooding, and shall 

submit all information regarding the claim to the Director. 


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‘‘(v) FEMA DETERMINATION AND RECOVERY.—In the 

case of any claim paid pursuant to clause (iv), the Director shall review the information related to the 

claim and determine, in accordance with procedures 

for making such a determination regarding such 

claims as the Director shall establish, the losses 

caused by wind. The Director shall seek to recover any 

portion of the losses that the Director determines were 

caused by wind from the insurance company or other 

insurer or entity that, pursuant to clause (iv), paid 

such losses as flood losses’’. 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CANDICE

MILLER OF MICHIGAN, OR HER DESIGNEE, DEBATABLE FOR 10 

MINUTES

At the appropriate place in the bill, insert the following new section: 

SEC. ll. STUDY ON PRIVATE INSURANCE MARKET, COMMUNITY PARTICIPATION IN THE NATIONAL FLOOD INSURANCE PROGRAM, AND THE REGIONALIZATION OF THE NATIONAL 

FLOOD INSURANCE PROGRAM. 

(a) STUDY.—The Comptroller General shall conduct a study on— 

(1) ways that the private insurance market can contribute to 

insuring against flood damage; 

(2) the impact on the National Flood Insurance Program if 

communities decide not to participate in the Program; and 

(3) the feasibility of regionalizing the National Flood Insurance Program and ensuring that there is no cross-subsidization 

between regions under such Program. 

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

a report containing the results of the study conducted under subsection (a). 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BOSWELL

OF IOWA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 14, line 11, insert ‘‘appropriate evacuation routes under the 

evacuation plan referred to in subparagraph (A),’’ after ‘‘risks,’’. 

Page 32, line 15, strike ‘‘properties; and’’ and insert ‘‘properties;’’. 

Page 32, line 17, strike the period and insert ‘‘; and’’. 

Page 32, after line 17 insert the following: 

‘‘(6) notify such owners of where to obtain information regarding how to obtain such coverage, including a telephone 

number, mailing address, and Internet site of the Director 

where such information is available. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HILL OF

INDIANA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 39, line 6, strike ‘‘and’’. 

Page 39, line 10, strike the period and insert ‘‘; and’’. 

Page 39, after line 10, insert the following: 


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‘‘(E) identify ways to assist communities in efforts to 

fund the accreditation of flood protection systems. 

9. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE LOEBSACK

OF IOWA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 41, after line 8, insert the following new section: 

SEC. 23. APPEALS. 

(a) TELEVISION AND RADIO ANNOUNCEMENT.—Section 1363 of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4104) is amended— 

(1) in subsection (a), by inserting after ‘‘determinations’’ by 

inserting the following: ‘‘by notifying a local television and 

radio station,’’; and 

(2) in the first sentence of subsection (b), by inserting before 

the period at the end the following: ‘‘and shall notify a local television and radio station at least once during the same 10-day 

period’’. 

(b) APPLICABILITY.—The amendments made by subsection (a) 

shall apply with respect to any flood elevation determination for 

any area in a community that has not, as of the date of the enactment of this Act, been issued a Letter of Final Determination for 

such determination under the flood insurance map modernization 

process. 

10. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

MCMAHON OF NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

Page 32, line 15, strike ‘‘and’’. 

Page 32, line 17, strike the period and insert ‘‘; and’’. 

Page 32, after line 17, insert the following: 

‘‘(6) educate local real estate agents in communities participating in the national flood insurance program regarding the 

program and the availability of coverage under the program for 

owners and renters of properties in such communities, and establish coordination and liaisons with such real estate agents 

to facilitate purchase of coverage under this Act and increase 

awareness of flood risk reduction.’’. 

11. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SCOTT

MURPHY OF NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

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

SEC. 31. ETHICS COMPLIANCE. 

All funds authorized under this Act or any amendment made by 

this Act shall be expended in a manner that is consistent with the 

manual on Standards of Ethical Conduct for Employees of the Executive Branch. 

Æ 


smartinez on DSKB9S0YB1PROD with REPORTS