II 

118TH CONGRESS 

1ST SESSION S. 721 

To permit policyholders under the National Flood Insurance Program to 

elect to have previous premium rates remain in effect until the Administrator of the Federal Emergency Management Agency satisfies certain 

conditions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 8, 2023 

Mrs. HYDE-SMITH (for herself, Mr. CRUZ, Mr. KENNEDY, and Mr. CASSIDY) 

introduced the following bill; which was read twice and referred to the 

Committee on Banking, Housing, and Urban Affairs 

A BILL 

To permit policyholders under the National Flood Insurance 

Program to elect to have previous premium rates remain 

in effect until the Administrator of the Federal Emergency Management Agency satisfies certain conditions, 

and for other purposes. 

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 ‘‘Homeowner Flood In5 surance Transparency and Protection Act’’. 

6 SEC. 2. CHARGEABLE PREMIUM RATES. 

7 (a) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘Administrator’’ means the Ad2 ministrator of the Federal Emergency Management 

3 Agency; and 

4 (2) the term ‘‘National Flood Insurance Pro5 gram’’ means the program established under the Na6 tional Flood Insurance Act of 1968 (42 U.S.C. 4001 

7 et seq.). 

8 (b) OPTION FOR POLICYHOLDERS.— 

9 (1) IN GENERAL.—Notwithstanding section 

10 1308 of the National Flood Insurance Act of 1968 

11 (42 U.S.C. 4015), a policyholder under the National 

12 Flood Insurance Program may elect to have the 

13 chargeable premium rate for the applicable property 

14 of the policyholder, as in effect on April 1, 2020, 

15 apply and remain in effect during the period begin16 ning on the date of enactment of this Act and end17 ing on the date on which the Administrator com18 pletes all of the actions described in subsection (c), 

19 without regard to the chargeable premium rate that 

20 is in effect for that property, as of the day before 

21 the date of enactment of this Act. 

22 (2) NOTIFICATION REQUIREMENT.—The Ad23 ministrator shall provide each policyholder under the 

24 National Flood Insurance Program a notification reVerDate Sep 11 2014 22:39 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S721.IS S721

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1 garding the right of the policyholder under para2 graph (1). 

3 (c) REQUIRED ACTIONS.—The actions of the Admin4 istrator described in this subsection are as follows: 

5 (1) Makes available to the public all data and 

6 methods used to prescribe chargeable premium rates 

7 for types and classes of properties for which insur8 ance coverage is available under the National Flood 

9 Insurance Act of 1968 (42 U.S.C. 4001 et seq.) (re10 ferred to in this subsection as ‘‘chargeable premium 

11 rates’’) under Risk Rating 2.0, or any substantially 

12 similar methodology. 

13 (2) Creates an online database that is available 

14 to policyholders under the National Flood Insurance 

15 Program that provides each such policyholder with 

16 information regarding what the chargeable premium 

17 rate for the applicable property of the policyholder 

18 would be— 

19 (A) under Risk Rating 2.0, or any sub20 stantially similar methodology; and 

21 (B) assuming that the limitation under 

22 section 1308(e) of the National Flood Insur23 ance Act of 1968 (42 U.S.C. 4015(e)) were not 

24 in effect. 


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1 (3) Completes and publishes a comprehensive 

2 assessment of the economic and social impacts of 

3 implementing Risk Rating 2.0 (or any substantially 

4 similar methodology) during the 20-year period be5 ginning in the year in which the assessment is made, 

6 which shall include an evaluation of the effect that 

7 such implementation will have, during that 20-year 

8 period, on— 

9 (A) the affordability and availability of 

10 flood insurance under the National Flood Insur11 ance Program; 

12 (B) property values; and 

13 (C) non-Federal Government revenues. 

14 (4) Supplements (and revises, as appropriate) 

15 the Record of Decision for the final nationwide pro16 grammatic environmental impact statement evalu17 ating the environmental impacts of proposed modi18 fications to the National Flood Insurance Program 

19 (83 Fed. Reg. 24328) to include the impacts of im20 plementing Risk Rating 2.0, or any substantially 

21 similar methodology. 

22 (5) Demonstrates that the data and methods 

23 used to prescribe chargeable premium rates under 

24 Risk Rating 2.0, or any substantially similar meth25 odology, satisfy the requirements under section 515 


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1 of the Consolidated Appropriations Act, 2001 (Pub2 lic Law 106–554; 114 Stat. 2763A–153), including 

3 that, in implementing that methodology, the Admin4 istrator ensures and maximizes the quality, objec5 tivity, utility, and integrity of information dissemi6 nated by the Administrator. 

7 (6) Conducts public notice and comment rule 

8 making under chapter 5 of title 5, United States 

9 Code, regarding Risk Rating 2.0, or any substan10 tially similar methodology, which shall include the 

11 development of a fair, transparent, and streamlined 

12 process to manage— 

13 (A) disputes over chargeable premium 

14 rates; and 

15 (B) other factors with respect to the imple16 mentation of that methodology. 

17 (7) For each county in the United States, pub18 lishes the distribution of chargeable premium rates 

19 showing the median, mean, lower and upper quar20 tiles, maximum amount, and minimum amount of 

21 chargeable premium rates under each of the fol22 lowing: 

23 (A) The method used to prescribe charge24 able premium rates, as of September 30, 2021. 


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1 (B) The methodology projected to be used 

2 to prescribe chargeable premium rates, as of 

3 April 1, 2022, assuming that the limitations 

4 under section 1308(e) of the National Flood In5 surance Act of 1968 (42 U.S.C. 4015(e)) are 

6 applied. 

7 (C) The methodology described in subpara8 graph (B), assuming that the limitations de9 scribed in that subparagraph are not applied. 

10 (D) The methodology described in sub11 paragraph (B), assuming that— 

12 (i) the limitations described in that 

13 subparagraph are applied; and 

14 (ii) the administrative costs of the Na15 tional Flood Insurance Program are allo16 cated on a uniform, per contract basis 

17 rather than as allocated under Risk Rating 

18 2.0, or any substantially similar method19 ology. 

20 (E) The methodology described in subpara21 graph (B), assuming that— 

22 (i) the limitations described in that 

23 subparagraph are not applied; and 

24 (ii) the administrative costs of the Na25 tional Flood Insurance Program are alloVerDate Sep 11 2014 22:39 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S721.IS S721

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1 cated on a uniform, per contract basis 

2 rather than as allocated under Risk Rating 

3 2.0, or any substantially similar method4 ology. 

5 (8) Submits to the Committee on Banking, 

6 Housing, and Urban Affairs of the Senate and the 

7 Committee on Financial Services of the House of 

8 Representatives a report detailing the satisfaction of 

9 the requirements under paragraphs (1) through (7). 

Æ 


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