II 

115TH CONGRESS 

1ST SESSION S. 1368 

To reauthorize the National Flood Insurance Program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2017 

Mr. MENENDEZ (for himself, Mr. KENNEDY, Ms. WARREN, Mr. RUBIO, Mr. 

VAN HOLLEN, Mr. COCHRAN, Mr. BOOKER, and Mr. NELSON) introduced 

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

on Banking, Housing, and Urban Affairs 

A BILL 

To reauthorize the National Flood Insurance Program, 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 ‘‘Sustainable, Afford5 able, Fair, and Efficient (SAFE) National Flood Insur6 ance Program Reauthorization Act of 2017’’. 

7 SEC. 2. TABLE OF CONTENTS. 

8 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 


rfrederick on DSK3GLQ082PROD with BILLS
2 

•S 1368 IS

TITLE I—REAUTHORIZATION AND AFFORDABILITY 

Sec. 101. Extension of National Flood Insurance Program. 

Sec. 102. Limitation on increases of premiums, surcharges, and mapping fees. 

Sec. 103. Means-tested mitigation and affordability assistance. 

Sec. 104. Coverage expansion. 

Sec. 105. Additional coverage for business interruption. 

TITLE II—MITIGATION AND MAPPING 

Sec. 201. ICC expansion. 

Sec. 202. Flood mitigation assistance prioritization and authorization. 

Sec. 203. Predisaster hazard mitigation program authorization. 

Sec. 204. National Flood Mapping Program. 

Sec. 205. Reallocation of premium surcharges. 

Sec. 206. Multifamily mitigation. 

Sec. 207. Sense of Congress regarding flood mitigation activities. 

Sec. 208. New zone for levee-impacted areas. 

Sec. 209. Appeals regarding existing flood maps. 

TITLE III—COST SAVINGS 

Sec. 301. Forbearance on NFIP interest payments. 

Sec. 302. Cap on Write Your Own company compensation. 

Sec. 303. Taxpayer protection. 

Sec. 304. Vendor costs; transparency. 

TITLE IV—CLAIMS PROCESS REFORM 

Sec. 401. Earth movement clarification. 

Sec. 402. Treatment of basements. 

Sec. 403. Mold damage clarification. 

Sec. 404. Appeal of decisions relating to flood insurance coverage. 

Sec. 405. Accountability for underpayments by Write Your Own companies. 

Sec. 406. Policyholder right to know. 

Sec. 407. Increasing statute of limitations for lawsuits. 

Sec. 408. Attorney fee shifting. 

Sec. 409. DOJ defense against policyholder lawsuits. 

Sec. 410. Study on participation rates. 

Sec. 411. Federal Flood Insurance Advisory Committee. 

Sec. 412. Authority to terminate contractors and vendors. 

Sec. 413. Easing proof of loss requirements. 

Sec. 414. Elevation certificates. 

Sec. 415. Monthly installment payment for premiums. 

Sec. 416. Pilot program for pre-existing structural conditions. 

Sec. 417. Deadline for claim processing. 

Sec. 418. Engineer oversight and certification. 

Sec. 419. Engineer reports. 

Sec. 420. Improved training of agents and adjusters. 

Sec. 421. Agent Advisory Council. 

Sec. 422. Efficient use of mitigation dollars. 

Sec. 423. Improved disclosure requirements. 

Sec. 424. Amendments to Financial Assistance/Subsidy Arrangement. 

Sec. 425. Technical and conforming amendments. 


rfrederick on DSK3GLQ082PROD with BILLS
3 

•S 1368 IS

1 SEC. 3. DEFINITIONS. 

2 In this Act— 

3 (1) the term ‘‘Administrator’’ means the Ad4 ministrator of the Federal Emergency Management 

5 Agency; 

6 (2) the term ‘‘National Flood Insurance Fund’’ 

7 means the fund established under section 1310 of 

8 the National Flood Insurance Act of 1968 (42 

9 U.S.C. 4017); 

10 (3) the term ‘‘National Flood Insurance Pro11 gram’’ means the program established under the Na12 tional Flood Insurance Act of 1968 (42 U.S.C. 4001 

13 et seq.); 

14 (4) the term ‘‘National Flood Mitigation Fund’’ 

15 means the fund established under section 1367 of 

16 the National Flood Insurance Act of 1968 (42 

17 U.S.C. 4104d); 

18 (5) the term ‘‘Standard Flood Insurance Pol19 icy’’ means the policy set forth in Appendix A to 

20 part 61 of title 44, Code of Federal Regulations; 

21 (6) the term ‘‘Write Your Own company’’ 

22 means a company that participates in the Write 

23 Your Own Program; and 

24 (7) the term ‘‘Write Your Own Program’’ 

25 means the cooperative undertaking between the in26 surance industry and the Federal Insurance and 


rfrederick on DSK3GLQ082PROD with BILLS
4 

•S 1368 IS

1 Mitigation Administration that allows participating 

2 property and casualty insurance companies to write 

3 and service standard flood insurance policies. 

4 TITLE I—REAUTHORIZATION 

5 AND AFFORDABILITY 

6 SEC. 101. EXTENSION OF NATIONAL FLOOD INSURANCE 

7 PROGRAM. 

8 (a) FINANCING.—Section 1309(a) of the National 

9 Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is 

10 amended, in the first sentence, by striking ‘‘September 30, 

11 2017’’ and inserting ‘‘September 30, 2023’’. 

12 (b) PROGRAM EXPIRATION.—Section 1319 of the Na13 tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 

14 amended by striking ‘‘September 30, 2017’’ and inserting 

15 ‘‘September 30, 2023’’. 

16 SEC. 102. LIMITATION ON INCREASES OF PREMIUMS, SUR17 CHARGES, AND MAPPING FEES. 

18 (a) DEFINITION.—In this section, the term ‘‘covered 

19 cost’’ means— 

20 (1) the amount of an annual premium with re21 spect to any policy for flood insurance under the Na22 tional Flood Insurance Program; 

23 (2) any surcharge imposed with respect to a 

24 policy described in paragraph (1), including a sur25 charge imposed under— 


rfrederick on DSK3GLQ082PROD with BILLS
5 

•S 1368 IS

1 (A) section 1304(b) of the National Flood 

2 Insurance Act of 1968 (42 U.S.C. 4011(b)), as 

3 amended by section 201(b); or 

4 (B) section 1308A(a) of the National 

5 Flood Insurance Act of 1968 (42 U.S.C. 

6 4015a(a)); and 

7 (3) a fee described in paragraph (1)(B)(iii) or 

8 (2) of section 1307(a) of the National Flood Insur9 ance Act of 1968 (42 U.S.C. 4014(a)). 

10 (b) LIMITATION ON INCREASES.—During the 6-year 

11 period beginning on the date of enactment of this Act, and 

12 notwithstanding section 1308(e) of the National Flood In13 surance Act of 1968 (42 U.S.C. 4015(e)), the Adminis14 trator may not, in any year, increase the amount of any 

15 covered cost by an amount that is more than 10 percent, 

16 as compared with the amount of the covered cost during 

17 the previous year. 

18 (c) RULE OF CONSTRUCTION.—Nothing in sub19 section (b) may be construed as prohibiting the Adminis20 trator from reducing, in any year, the amount of any cov21 ered cost, as compared with the amount of the covered 

22 cost during the previous year. 

23 (d) AVERAGE HISTORICAL LOSS YEAR.—Section 

24 1308 of the National Flood Insurance Act of 1968 (42 


rfrederick on DSK3GLQ082PROD with BILLS
6 

•S 1368 IS

1 U.S.C. 4015) is amended by striking subsection (h) and 

2 inserting the following: 

3 ‘‘(h) RULE OF CONSTRUCTION.—For purposes of this 

4 section, the calculation of an ‘average historical loss year’ 

5 shall be computed in accordance with generally accepted 

6 actuarial principles.’’. 

7 SEC. 103. MEANS-TESTED MITIGATION AND AFFORD8 ABILITY ASSISTANCE. 

9 Chapter I of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4011 et seq.) is amended by adding at 

11 the end the following: 

12 ‘‘SEC. 1326. AFFORDABILITY ASSISTANCE. 

13 ‘‘(a) AFFORDABILITY ASSISTANCE FUND.— 

14 ‘‘(1) ESTABLISHMENT.—The Administrator 

15 shall establish in the Treasury of the United States 

16 an Affordability Assistance Fund (referred to in this 

17 section as the ‘Fund’), which shall be— 

18 ‘‘(A) an account separate from any other 

19 accounts or funds available to the Adminis20 trator; and 

21 ‘‘(B) available without fiscal year limita22 tion. 

23 ‘‘(2) USE OF FUNDS.—Amounts from the Fund 

24 shall be available to provide financial assistance 

25 under subsection (b). 


rfrederick on DSK3GLQ082PROD with BILLS
7 

•S 1368 IS

1 ‘‘(3) SOURCE OF FUNDS.—The Fund shall be 

2 credited with any surcharges imposed and collected 

3 by the Administrator under section 1308A(a). 

4 ‘‘(b) FINANCIAL ASSISTANCE.— 

5 ‘‘(1) DEFINITIONS.—In this subsection— 

6 ‘‘(A) the term ‘adjusted gross income’ has 

7 the meaning given the term in section 62 of the 

8 Internal Revenue Code of 1986; 

9 ‘‘(B) the term ‘covered project’ means a 

10 mitigation project with respect to a household 

11 that reduces the total amount of actuarial risk 

12 during a 50-year period by an amount that is 

13 greater than the total cost of the project, sub14 ject to paragraph (4); 

15 ‘‘(C) the term ‘eligible household’ means a 

16 household for which— 

17 ‘‘(i) housing expenses exceed 30 per18 cent of the adjusted gross income of the 

19 household in a year; and 

20 ‘‘(ii) the total assets owned by the 

21 household are not greater than 

22 $1,000,000; and 

23 ‘‘(D) the term ‘housing expenses’ means, 

24 with respect to a household, the total amount 

25 that the household spends in a year on— 


rfrederick on DSK3GLQ082PROD with BILLS
8 

•S 1368 IS

1 ‘‘(i) mortgage payments; 

2 ‘‘(ii) property taxes; 

3 ‘‘(iii) homeowners insurance; 

4 ‘‘(iv) premiums for flood insurance 

5 under the national flood insurance pro6 gram; and 

7 ‘‘(v) principal and interest payments 

8 for a loan provided under this section. 

9 ‘‘(2) AUTHORITY.— 

10 ‘‘(A) LOANS FOR COVERED PROJECTS.— 

11 The Administrator shall provide a low- or zero12 interest loan to an eligible household to fund a 

13 covered project. 

14 ‘‘(B) OTHER FINANCIAL ASSISTANCE.— 

15 The Administrator shall provide a voucher, 

16 grant, or premium credit to an eligible house17 hold for a year in an amount that is equal to 

18 the lesser of— 

19 ‘‘(i) the difference between— 

20 ‘‘(I) the housing expenses of the 

21 household for the year; and 

22 ‘‘(II) 30 percent of the adjusted 

23 gross income of the household for the 

24 year; and 

25 ‘‘(ii) the sum of— 


rfrederick on DSK3GLQ082PROD with BILLS
9 

•S 1368 IS

1 ‘‘(I) the cost of premiums for the 

2 household for flood insurance under 

3 the national flood insurance program 

4 for the year; and 

5 ‘‘(II) principal and interest pay6 ments for the household for the year 

7 for a loan provided under this section. 

8 ‘‘(3) RELATIONSHIPS WITH OTHER AGEN9 CIES.—The Administrator may enter into a memo10 randum of understanding with the head of any other 

11 Federal agency to administer the provision of loans 

12 under paragraph (2)(A). 

13 ‘‘(4) USE OF DISCOUNT RATE IN CALCULA14 TION.—The Administrator shall calculate the 

15 amounts under paragraph (1)(B) using a discount 

16 rate of 3 percent.’’. 

17 SEC. 104. COVERAGE EXPANSION. 

18 (a) IN GENERAL.—Section 1306(b) of the National 

19 Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is 

20 amended— 

21 (1) in paragraph (2), by striking ‘‘$250,000’’ 

22 and inserting ‘‘$500,000’’; and 

23 (2) in paragraph (4), by striking ‘‘applicable) of 

24 $500,000’’ and inserting ‘‘applicable) of 

25 $1,500,000’’. 


rfrederick on DSK3GLQ082PROD with BILLS
10 

•S 1368 IS

1 (b) RULE OF CONSTRUCTION.—Notwithstanding sec2 tion 102 of the Flood Disaster Protection Act of 1973 (42 

3 U.S.C. 4012a), nothing in the amendments made by sub4 section (a) may be construed as requiring a person to ob5 tain flood insurance in an amount that is greater than 

6 the amount of flood insurance held by that person on the 

7 day before the date of enactment of this Act. 

8 SEC. 105. ADDITIONAL COVERAGE FOR BUSINESS INTER9 RUPTION. 

10 (a) IN GENERAL.—The Administrator shall conduct 

11 a study on the feasibility and soundness of offering cov12 erage for interruption business losses caused by a flood 

13 under the National Flood Insurance Program (referred to 

14 in this section as ‘‘business interruption coverage’’). 

15 (b) CONTENTS.—In conducting the study under sub16 section (a), the Administrator shall, at a minimum— 

17 (1) evaluate insurance industry best practices 

18 for offering business interruption coverage, including 

19 the types of coverage provided and the utilization 

20 rate; 

21 (2) estimate the potential risk premium rates 

22 for business interruption coverage based on the flood 

23 risk reflected in the flood insurance rate map or 

24 other risk metrics in effect at the time of purchase; 


rfrederick on DSK3GLQ082PROD with BILLS
11 

•S 1368 IS

1 (3) analyze the operational and administrative 

2 expenses associated with providing business inter3 ruption coverage and adjusting claims; 

4 (4) identify potential obstacles that may prevent 

5 the Administrator from offering business interrup6 tion coverage; 

7 (5) evaluate the benefits of providing business 

8 interruption coverage; 

9 (6) analyze any potential impacts on the finan10 cial position of the National Flood Insurance Pro11 gram; and 

12 (7) develop a feasibility implementation plan 

13 and projected timelines for offering business inter14 ruption coverage. 

15 (c) AVAILABILITY OF EXPERTS.—In conducting the 

16 study under subsection (a), the Administrator may accept 

17 and utilize the personnel and services of any other Federal 

18 agency, and appoint and fix the compensation of tem19 porary personnel without regard to the provisions of title 

20 5, United States Code, governing appointments in the 

21 competitive service, or employ experts and consultants in 

22 accordance with the provisions of section 3109 of such 

23 title, without regard to the provisions of chapter 51 and 

24 subchapter III of chapter 53 of such title relating to classi25 fication and General Schedule pay rates. 


rfrederick on DSK3GLQ082PROD with BILLS
12 

•S 1368 IS

1 (d) DEADLINE.—The Administrator shall complete 

2 the study required under subsection (a) not later than 

3 September 30 of the second full fiscal year after the date 

4 of enactment of this Act. 

5 TITLE II—MITIGATION AND 

6 MAPPING 

7 SEC. 201. ICC EXPANSION. 

8 (a) INCREASE OF LIMITATION ON LIABILITY.—Not 

9 later than 180 days after the date of enactment of this 

10 Act, the Administrator shall amend the Standard Flood 

11 Insurance Policy to increase the limitation on liability re12 lating to ‘‘Coverage D—Increased Cost of Compliance’’ 

13 from $30,000 to $100,000. 

14 (b) EXPANSION OF ELIGIBILITY; CLARIFICATION

15 WITH RESPECT TO COVERAGE LIMITS; NON-FEDERAL

16 MATCH.— 

17 (1) IN GENERAL.—Section 1304(b) of the Na18 tional Flood Insurance Act of 1968 (42 U.S.C. 

19 4011(b)) is amended— 

20 (A) in paragraph (4), by redesignating 

21 subparagraphs (A) through (D) as clauses (i) 

22 through (iv), respectively, and adjusting the 

23 margins accordingly; 

24 (B) by redesignating paragraphs (1) 

25 through (4) as subparagraphs (A) through (D), 


rfrederick on DSK3GLQ082PROD with BILLS
13 

•S 1368 IS

1 respectively, and adjusting the margins accord2 ingly; 

3 (C) in the matter preceding subparagraph 

4 (A), as so redesignated, by striking ‘‘The na5 tional’’ and inserting the following: 

6 ‘‘(1) IN GENERAL.—The national’’; 

7 (D) in paragraph (1), as so designated— 

8 (i) in subparagraph (A), as so redesig9 nated, by inserting ‘‘, without regard to 

10 whether the property is in an area having 

11 special flood hazards’’ after ‘‘loss struc12 tures’’; 

13 (ii) in subparagraph (C), as so redes14 ignated, by striking the period at the end 

15 and inserting ‘‘; and’’; and 

16 (iii) in subparagraph (D), as so redes17 ignated— 

18 (I) in the matter preceding clause 

19 (ii), as so redesignated, by inserting 

20 ‘‘subject to paragraph (2),’’ before 

21 ‘‘properties for which’’; 

22 (II) in clause (iii), as so redesig23 nated, by striking ‘‘and’’ at the end; 


rfrederick on DSK3GLQ082PROD with BILLS
14 

•S 1368 IS

1 (III) in clause (iv), as so redesig2 nated, by striking the period at the 

3 end and inserting ‘‘; and’’; and 

4 (IV) by adding at the end the fol5 lowing: 

6 ‘‘(v) a property outside an area having 

7 special flood hazards if the community, 

8 under section 1361, has established land 

9 use and control measures for the area in 

10 which the property is located.’’; 

11 (E) in the flush text following paragraph 

12 (1)(D)(v), as added by subparagraph (D) of 

13 this paragraph, by striking ‘‘The Adminis14 trator’’ and inserting the following: 

15 ‘‘(3) SURCHARGES.—The Administrator’’; and 

16 (F) by inserting after paragraph (1), as so 

17 designated by subparagraph (A) of this para18 graph, the following: 

19 ‘‘(2) USE OF FUNDS FOR MITIGATION

20 PROJECTS.—The Administrator shall allow a policy21 holder to use insurance purchased under this sub22 section for any eligible project costs under a pro23 gram described in clause (i), (ii), or (iii) of para24 graph (1)(D) of an acquisition, demolition, elevation, 


rfrederick on DSK3GLQ082PROD with BILLS
15 

•S 1368 IS

1 relocation, or small structural project funded under 

2 that program, including— 

3 ‘‘(A) asbestos remediation; 

4 ‘‘(B) the demolition of a driveway or side5 walk when a structure is acquired; and 

6 ‘‘(C) the addition of a lift, ramp, or other 

7 device that is necessary for a homeowner or oc8 cupant with a physical limitation or disability to 

9 safely access a home that has been elevated.’’. 

10 (2) MANDATORY NATURE OF ICC STATUTE.— 

11 (A) FINDING.—Congress finds that, al12 though section 1304(b) of the National Flood 

13 Insurance Act of 1968 (42 U.S.C. 4011(b)), as 

14 in effect on the day before the date of enact15 ment of this Act, requires the Administrator to 

16 offer increased cost of compliance (commonly 

17 known as ‘‘ICC’’) coverage to each type of 

18 property described in paragraphs (1) through 

19 (4) of that section, the Administrator has im20 plemented that section by effectively only offer21 ing ICC coverage to properties described in 

22 paragraph (2) of that section. 

23 (B) RULE OF CONSTRUCTION.—Nothing in 

24 section 1304(b) of the National Flood Insur25 ance Act of 1968 (42 U.S.C. 4011(b)), as 


rfrederick on DSK3GLQ082PROD with BILLS
16 

•S 1368 IS

1 amended by paragraph (1), shall be construed 

2 to permit the Administrator to choose which 

3 types of properties described in paragraphs (1) 

4 through (5) of such section 1304(b) should be 

5 eligible for ICC insurance rather than offering 

6 ICC insurance to all such types of properties as 

7 required under such section 1304(b). 

8 SEC. 202. FLOOD MITIGATION ASSISTANCE 

9 PRIORITIZATION AND AUTHORIZATION. 

10 (a) FLOOD MITIGATION ASSISTANCE GRANT PRO11 GRAM PRIORITY.—Section 1366(a) of the National Flood 

12 Insurance Act (42 U.S.C. 4104c(a)) is amended— 

13 (1) by redesignating paragraphs (1), (2), and 

14 (3) as subparagraphs (A), (B), and (C), respectively, 

15 and adjusting the margins accordingly; 

16 (2) in the second sentence of the matter pre17 ceding subparagraph (A), as so redesignated, by 

18 striking ‘‘assistance shall be’’ and inserting the fol19 lowing: ‘‘assistance shall— 

20 ‘‘(1) be’’; 

21 (3) in paragraph (1)(C), as so redesignated, by 

22 striking the period at the end and inserting ‘‘; and’’; 

23 and 

24 (4) by adding at the end the following: 


rfrederick on DSK3GLQ082PROD with BILLS
17 

•S 1368 IS

1 ‘‘(2) in addition to the requirement under para2 graph (1)(C), give priority to properties— 

3 ‘‘(A) that are repetitive loss structures; 

4 ‘‘(B) with respect to which flood insurance 

5 premiums are unaffordable, as determined by 

6 the Administrator; and 

7 ‘‘(C) for which losses exceed the replace8 ment value of the properties.’’. 

9 (b) ADDITIONAL MITIGATION ASSISTANCE.— 

10 (1) AUTHORIZATION OF APPROPRIATIONS.— 

11 (A) APPROPRIATIONS FROM GENERAL

12 FUND OF TREASURY.—For each of the first 6 

13 full fiscal years after the date of enactment of 

14 this Act, there is authorized to be appropriated 

15 $1,000,000,000 to the National Flood Mitiga16 tion Fund to provide mitigation assistance 

17 under this subsection. 

18 (B) RULE OF CONSTRUCTION.—The au19 thorization of appropriations under subpara20 graph (A) shall not be construed to authorize 

21 the transfer or crediting to the National Flood 

22 Mitigation Fund of any amounts from the Na23 tional Flood Insurance Fund. 

24 (2) COMMUNITY-WIDE MITIGATION

25 PROJECTS.—Notwithstanding any other provision of 


rfrederick on DSK3GLQ082PROD with BILLS
18 

•S 1368 IS

1 law, including section 1366 of the National Flood 

2 Insurance Act of 1968 (42 U.S.C. 4104c) and sec3 tion 203 of the Robert T. Stafford Disaster Relief 

4 and Emergency Assistance Act (42 U.S.C. 5133), in 

5 providing mitigation assistance under this sub6 section, in order to lessen disaster losses and en7 hance the financial stability and effectiveness of the 

8 National Flood Insurance Program, the Adminis9 trator shall give priority to utilizing flood mitigation 

10 activities that— 

11 (A) provide benefits to an entire floodplain 

12 or community, or to a portion of such a com13 munity; 

14 (B) consider all available and practicable 

15 approaches; and 

16 (C) the Administrator determines— 

17 (i) are technically feasible; 

18 (ii) have the highest net benefits; and 

19 (iii) are consistent with mitigation 

20 plans approved by the Administrator. 

21 SEC. 203. PREDISASTER HAZARD MITIGATION PROGRAM 

22 AUTHORIZATION. 

23 For each of the first 6 full fiscal years following the 

24 date of enactment of this Act, there is authorized to be 

25 appropriated $500,000,000 to carry out the predisaster 


rfrederick on DSK3GLQ082PROD with BILLS
19 

•S 1368 IS

1 hazard mitigation program under section 203 of the Rob2 ert T. Stafford Disaster Assistance and Emergency Relief 

3 Act (42 U.S.C. 5133). 

4 SEC. 204. NATIONAL FLOOD MAPPING PROGRAM. 

5 Section 100216 of the Biggert-Waters Flood Insur6 ance Reform Act of 2012 (42 U.S.C. 4101b) is amended— 

7 (1) in subsection (b)(1)— 

8 (A) in subparagraph (A), by striking 

9 ‘‘to—’’ and all that follows through the end of 

10 clause (vi) and inserting ‘‘to all areas of the 

11 United States;’’; 

12 (B) in subparagraph (B), by striking 

13 ‘‘and’’ at the end; 

14 (C) in subparagraph (C), by striking ‘‘ac15 curate topography’’ and all that follows through 

16 the period at the end and inserting ‘‘current 

17 and best remote sensing technology; and’’; and 

18 (D) by adding at the end the following: 

19 ‘‘(D) when appropriate, partner with other 

20 Federal agencies and private entities in order to 

21 meet the objectives of the program.’’; 

22 (2) by redesignating subsection (f) as sub23 section (g); 

24 (3) by inserting after subsection (e) the fol25 lowing: 


rfrederick on DSK3GLQ082PROD with BILLS
20 

•S 1368 IS

1 ‘‘(f) INCORPORATING BUILDING-SPECIFIC FLOOD

2 RISK INFORMATION.— 

3 ‘‘(1) ESTABLISHMENT.— 

4 ‘‘(A) IN GENERAL.—Not later than 5 years 

5 after the date of enactment of the Sustainable, 

6 Affordable, Fair, and Efficient (SAFE) Na7 tional Flood Insurance Program Reauthoriza8 tion Act of 2017, the Administrator, in coordi9 nation with, and as recommended by, the Tech10 nical Mapping Advisory Council, shall establish 

11 a dynamic, database-derived digital display en12 vironment for flood hazard risk production and 

13 dissemination. 

14 ‘‘(B) CONSULTATION WITH STATES AND

15 COMMUNITIES.—In designing and constructing 

16 the environment under subparagraph (A), the 

17 Administrator shall— 

18 ‘‘(i) leverage and partner with States 

19 and communities that have successfully im20 plemented the same approach; and 

21 ‘‘(ii) consider adopting the techniques 

22 and technologies used by States and com23 munities described in clause (i) and apply24 ing them nationwide. 

25 ‘‘(2) DIGITAL DISPLAY.— 


rfrederick on DSK3GLQ082PROD with BILLS
21 

•S 1368 IS

1 ‘‘(A) IN GENERAL.—In carrying out para2 graph (1), the Administrator shall create a dig3 ital display prompted through dynamic querying 

4 of a spatial, relational building database that 

5 may not be publically disseminated and that in6 cludes— 

7 ‘‘(i) special flood hazard areas and 

8 base flood elevations for purposes of lender 

9 compliance with the requirements under 

10 section 102 of the Flood Disaster Protec11 tion Act of 1973 (42 U.S.C. 4012a); and 

12 ‘‘(ii) structure-specific flood risk infor13 mation, including, for each property ad14 dress— 

15 ‘‘(I) the spatial footprint and ele16 vation of the structure relative to spe17 cial flood hazard areas and base flood 

18 elevations; 

19 ‘‘(II) the most current elevation 

20 certificate applicable to the property; 

21 ‘‘(III) any letter of map changes; 

22 ‘‘(IV) the full risk premium rate 

23 estimated for the structure under sec24 tion 1307(a)(1) of the National Flood 


rfrederick on DSK3GLQ082PROD with BILLS
22 

•S 1368 IS

1 Insurance Act of 1968 (42 U.S.C. 

2 4014(a)(1)) based on elevation data; 

3 ‘‘(V) the disclosure described in 

4 section 1308(l) of the National Flood 

5 Insurance Act of 1968 (42 U.S.C. 

6 4015(l)), which shall include— 

7 ‘‘(aa) the extent to which, if 

8 any, the chargeable premium rate 

9 applicable to the property is less 

10 than the full risk premium rate 

11 under section 1307(a)(1) of that 

12 Act (42 U.S.C. 4014(a)(1)); and 

13 ‘‘(bb) an explanation of the 

14 difference described in item (aa) 

15 and the methodology used to rate 

16 the property; 

17 ‘‘(VI) the estimated cost to re18 pair the structure in the case of dam19 age from floods with recurrence inter20 vals ranging from the 10 percent an21 nual chance event to the 0.2 percent 

22 annual chance event; 

23 ‘‘(VII) the cost-effectiveness of 

24 mitigating the structure using com25 mon methods and how the chargeable 


rfrederick on DSK3GLQ082PROD with BILLS
23 

•S 1368 IS

1 premium rate would change based on 

2 each mitigation method; and 

3 ‘‘(VIII) the claims history of the 

4 structure, including the amount and 

5 date of each loss. 

6 ‘‘(B) PRIVACY REQUIREMENTS.—With re7 spect to the database described in subparagraph 

8 (A), including any data used to create that 

9 database, the Administrator may not dissemi10 nate the database to— 

11 ‘‘(i) the public; or 

12 ‘‘(ii) a private company for use by the 

13 private company. 

14 ‘‘(3) DATABASE.— 

15 ‘‘(A) IN GENERAL.—The Administrator 

16 shall— 

17 ‘‘(i) develop a spatial, relational data18 base of buildings in the national flood in19 surance program; and 

20 ‘‘(ii) obtain the data necessary to sup21 port the digital display created under para22 graph (2). 

23 ‘‘(B) DATA.—The data obtained under 

24 subparagraph (A) shall include, at a min25 imum— 


rfrederick on DSK3GLQ082PROD with BILLS
24 

•S 1368 IS

1 ‘‘(i) footprints and elevations (includ2 ing lowest adjacent grade and first floor) 

3 from Light Detection and Ranging (com4 monly known as ‘LiDAR’) data collections 

5 or other data collection methods that meet 

6 or exceed the standards for buildings, as 

7 determined by the Administrator; 

8 ‘‘(ii) elevation certificates; 

9 ‘‘(iii) parcel, address, and imagery 

10 data necessary for the identification, as11 sessment, and reduction of flood hazards 

12 for individual properties; 

13 ‘‘(iv) flood insurance rate maps, stud14 ies, and supporting data; 

15 ‘‘(v) letters of map change; and 

16 ‘‘(vi) any other data that the Adminis17 trator determines necessary to collect to 

18 meet the objectives of this section. 

19 ‘‘(4) DATA PROCUREMENT.—The Administrator 

20 shall obtain any data necessary to establish the envi21 ronment under paragraph (1), including by— 

22 ‘‘(A) directing communities participating 

23 in the national flood insurance program, by reg24 ulation, to collect and supply information, in25 cluding elevation data, for each structure that 


rfrederick on DSK3GLQ082PROD with BILLS
25 

•S 1368 IS

1 obtains a construction or other development 

2 permit within— 

3 ‘‘(i) a special flood hazard area; or 

4 ‘‘(ii) an advisory special flood hazard 

5 area adopted by the community; 

6 ‘‘(B) issuing guidelines and standards, as 

7 determined by the Administrator; 

8 ‘‘(C) partnering with other Federal, State, 

9 local, and private stakeholders to the greatest 

10 extent possible to obtain and share existing 

11 data that meets or exceeds the standards deter12 mined by the Administrator under subpara13 graph (B); and 

14 ‘‘(D) contracting with private companies to 

15 obtain new LiDAR data collections or elevation 

16 certificates. 

17 ‘‘(5) NFIP PREMIUM CREDIT.—The Adminis18 trator shall provide a 1-time premium credit of not 

19 more than $500 to a policyholder for the purchase 

20 of an elevation certificate. 

21 ‘‘(6) MASS LETTERS OF MAP CHANGE.—In co22 ordination with States and communities that have 

23 successfully implemented a dynamic, database-de24 rived digital display environment for flood hazard 

25 risk production and dissemination, the AdminisVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
26 

•S 1368 IS

1 trator shall issue guidelines for the adoption and in2 tegration into the National Flood Mapping Program 

3 of LiDAR-based letter of map amendment ap4 proaches. 

5 ‘‘(7) ANNUAL REPORT.—The Administrator 

6 shall submit to the Committee on Banking, Housing, 

7 and Urban Affairs of the Senate and the Committee 

8 on Financial Services of the House of Representa9 tives an annual progress report on the implementa10 tion of this subsection, which shall include rec11 ommendations to reduce the cost and improve the 

12 implementation of this subsection.’’; and 

13 (4) in subsection (g), as so redesignated— 

14 (A) by striking ‘‘this section 

15 $400,000,000’’ and inserting the following: 

16 ‘‘this section— 

17 ‘‘(1) $400,000,000’’; and 

18 (B) by striking the period at the end and 

19 inserting the following: ‘‘; and 

20 ‘‘(2) $800,000,000 for each of fiscal years 2018 

21 through 2023.’’. 

22 SEC. 205. REALLOCATION OF PREMIUM SURCHARGES. 

23 Chapter I of the National Flood Insurance Act of 

24 1968 (42 U.S.C. 4011 et seq.) is amended— 

25 (1) in section 1308A (42 U.S.C. 4015a)— 


rfrederick on DSK3GLQ082PROD with BILLS
27 

•S 1368 IS

1 (A) by redesignating subsection (c) as sub2 section (d); 

3 (B) by inserting after subsection (b) the 

4 following: 

5 ‘‘(c) USE OF SURCHARGES.—The Administrator shall 

6 deposit any surcharge imposed and collected under sub7 section (a) in the Affordability Assistance Fund estab8 lished under subsection (a) of section 1326 in order to 

9 provide financial assistance under subsection (b) of that 

10 section.’’; and 

11 (C) in subsection (d), as so redesignated, 

12 by striking ‘‘Subsections (a) and (b)’’ and in13 serting ‘‘Subsections (a) through (c)’’; and 

14 (2) in section 1310A(c) (42 U.S.C. 4017A(c)), 

15 by striking paragraph (4). 

16 SEC. 206. MULTIFAMILY MITIGATION. 

17 (a) IN GENERAL.—Section 1361(d)(1) of the Na18 tional Flood Insurance Act of 1968 (42 U.S.C. 

19 4102(d)(1)) is amended, in the matter preceding subpara20 graph (A), by inserting ‘‘(including multifamily buildings 

21 in urban areas)’’ after ‘‘residential buildings’’. 

22 (b) PREMIUM CREDIT.—Section 1308(k) of the Na23 tional Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) 

24 is amended by striking ‘‘the Administrator shall’’ and all 


rfrederick on DSK3GLQ082PROD with BILLS
28 

•S 1368 IS

1 that follows through the period at the end and inserting 

2 the following: ‘‘the Administrator shall— 

3 ‘‘(1) take into account the implementation of 

4 any mitigation method identified by the Adminis5 trator in the guidance issued under section 1361(d) 

6 (42 U.S.C. 4102(d)); and 

7 ‘‘(2) offer a premium credit to a property owner 

8 for the implementation of any alternative mitigation 

9 method with respect to a multifamily building in an 

10 urban area, as described in paragraph (1) of such 

11 section 1361(d).’’. 

12 (c) LAND USE CONTROLS.— 

13 (1) IN GENERAL.—Section 1315(a) of the Na14 tional Flood Insurance Act of 1968 (42 U.S.C. 

15 4022(a)) is amended by adding at the end the fol16 lowing: 

17 ‘‘(3) LAND USE CONTROLS FOR CERTAIN MUL18 TIFAMILY BUILDINGS IN URBAN AREAS.— 

19 ‘‘(A) DEFINITION.—In this paragraph, the 

20 term ‘covered area’ means an area that— 

21 ‘‘(i) is an urban area; and 

22 ‘‘(ii) has been identified as having 

23 special flood hazards. 

24 ‘‘(B) ADOPTION OF LAND USE CON25 TROLS.—Notwithstanding any other provision 


rfrederick on DSK3GLQ082PROD with BILLS
29 

•S 1368 IS

1 of law, the Administrator, under paragraph (1), 

2 may require an appropriate public body, with 

3 respect to a covered area that is seeking to ob4 tain flood insurance under this title, to adopt 

5 land use and control measures for the repair, 

6 restoration, or substantial improvement of any 

7 mid- or high-rise building that is located in the 

8 covered area. 

9 ‘‘(C) COMMUNITY STRATEGY.—With re10 spect to a covered area described in subpara11 graph (B), the Administrator shall encourage 

12 the covered area to develop, and assist the cov13 ered area in developing, a comprehensive strat14 egy that— 

15 ‘‘(i) reduces flood damage to mid- and 

16 high-rise multifamily buildings in the cov17 ered area that— 

18 ‘‘(I) will be repaired, restored, or 

19 substantially improved; and 

20 ‘‘(II) cannot be elevated; 

21 ‘‘(ii) identifies technical mitigation ac22 tivities that may be applied to the build23 ings described in clause (i), including con24 siderations for mechanical, electrical, and 


rfrederick on DSK3GLQ082PROD with BILLS
30 

•S 1368 IS

1 utility components, that will protect life 

2 and property; 

3 ‘‘(iii) documents that the covered area 

4 has established procedures for— 

5 ‘‘(I) the implementation of per6 formance standards; 

7 ‘‘(II) requiring evacuation plans; 

8 and 

9 ‘‘(III) developing a maintenance 

10 strategy for any mitigation activity 

11 that is applied under clause (ii); and 

12 ‘‘(iv) establishes guidelines for per13 formance standards that will— 

14 ‘‘(I) allow for a combination of 

15 partial mitigation activities, other 

16 than elevation, for areas (other than 

17 residential areas) in the covered area; 

18 and 

19 ‘‘(II) be applied to mid- and 

20 high-rise multifamily buildings in the 

21 areas described in subclause (I).’’. 

22 (2) LAND MANAGEMENT INVESTIGATIONS.— 

23 Section 1361(b) of the National Flood Insurance 

24 Act of 1968 (42 U.S.C. 4102(b)) is amended by in25 serting ‘‘, including whether a State or local governVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
31 

•S 1368 IS

1 ment, as applicable, has enacted the requirements 

2 described in section 1327(b)’’ after ‘‘other building 

3 restrictions’’. 

4 (d) CALCULATION OF RISK PREMIUM RATES.—Sec5 tion 1308 of the National Flood Insurance Act of 1968 

6 (42 U.S.C. 4015) is amended by adding at the end the 

7 following: 

8 ‘‘(n) CONSIDERATION OF ALTERNATIVE MITIGATION

9 METHODS.—With respect to a chargeable rate prescribed 

10 for a building described in section 1315(a)(3)(B), the Ad11 ministrator shall ensure that the rate properly reflects the 

12 reduction in flood risk after adopting the land use and 

13 control measures described in that section, if applicable.’’. 

14 SEC. 207. SENSE OF CONGRESS REGARDING FLOOD MITIGA15 TION ACTIVITIES. 

16 It is the sense of Congress that the Administrator 

17 should consider flood mitigation activities that— 

18 (1) provide benefits to an entire floodplain or 

19 community, or to a portion of such a community; 

20 (2) consider all available and practicable ap21 proaches; and 

22 (3) the Administrator determines— 

23 (A) are technically feasible; 

24 (B) have the highest net benefits; and 


rfrederick on DSK3GLQ082PROD with BILLS
32 

•S 1368 IS

1 (C) are consistent with mitigation plans 

2 approved by the Administrator. 

3 SEC. 208. NEW ZONE FOR LEVEE-IMPACTED AREAS. 

4 Section 1360 of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4101) is amended by adding at the end 

6 the following: 

7 ‘‘(k) LEVEE-IMPACTED AREAS.— 

8 ‘‘(1) IN GENERAL.—Subject to full implementa9 tion of subparagraphs (A)(iii) and (B) of section 

10 100216(b)(1) of the Biggert-Waters Flood Insur11 ance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)) 

12 and notwithstanding any other provision of law, if a 

13 community applies to the Administrator for the re14 mapping of a levee-impacted area in which the perti15 nent levee system fails to meet the minimum design, 

16 operation, and maintenance standards of the Na17 tional Flood Insurance Program required for levee 

18 accreditation on a flood insurance rate map in ac19 cordance with the Levee Analysis Mapping Proce20 dure initiated by the Administrator to replace the 

21 ‘without levees’ approach to a Flood Insurance 

22 Study, the Administrator shall— 

23 ‘‘(A) establish flood risk zones for those 

24 levee-impacted areas on such maps, to be 

25 known as ‘AL–E zones’, that have an estabVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
33 

•S 1368 IS

1 lished elevation for community floodplain man2 agement; and 

3 ‘‘(B) make flood insurance available to 

4 properties located within those levee-impacted 

5 areas. 

6 ‘‘(2) TRANSITION.—During the period begin7 ning on the date of enactment of this subsection and 

8 ending on the date on which the Administrator de9 velops rates for the various AL–E zones, a structure 

10 located in a portion of a community that is located 

11 within a levee-impacted area described in paragraph 

12 (1) shall be eligible for rates associated with areas 

13 of moderate flood hazards.’’. 

14 SEC. 209. APPEALS REGARDING EXISTING FLOOD MAPS. 

15 (a) IN GENERAL.— 

16 (1) RIGHT TO APPEAL.—Section 1360 of the 

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

18 4101), as amended by section 208, is amended by 

19 adding at the end the following: 

20 ‘‘(l) APPEALS OF EXISTING MAPS.— 

21 ‘‘(1) RIGHT TO APPEAL.—Subject to paragraph 

22 (6), a State or local government, or the owner or les23 see of real property, that makes a formal request to 

24 the Administrator to update a flood insurance rate 


rfrederick on DSK3GLQ082PROD with BILLS
34 

•S 1368 IS

1 map that the Administrator denies may at any time 

2 appeal the denial in accordance with this subsection. 

3 ‘‘(2) BASIS FOR APPEAL.—The basis for an ap4 peal under this subsection shall be the possession of 

5 knowledge or information that— 

6 ‘‘(A) the base flood elevation level or des7 ignation of any aspect of a flood insurance rate 

8 map is scientifically or technically inaccurate; or 

9 ‘‘(B) factors exist that mitigate the risk of 

10 flooding, including ditches, banks, walls, vegeta11 tion, levees, lakes, dams, reservoirs, basin, re12 tention ponds, and other natural or manmade 

13 topographical features. 

14 ‘‘(3) APPEALS PROCESS.— 

15 ‘‘(A) ADMINISTRATIVE ADJUDICATION.— 

16 The Administrator shall determine an appeal 

17 under this subsection by making a final adju18 dication on the record, after providing an op19 portunity for an administrative hearing. 

20 ‘‘(B) RIGHTS UPON ADVERSE DECISION.— 

21 ‘‘(i) OPTIONAL ARBITRATION.—If an 

22 appeal determined under subparagraph (A) 

23 does not result in a decision in favor of the 

24 State, local government, owner, or lessee, 

25 that party may request that an appeal of 


rfrederick on DSK3GLQ082PROD with BILLS
35 

•S 1368 IS

1 the adverse decision be heard through 

2 independent, non-binding arbitration. 

3 ‘‘(ii) PROCESS.—The Administrator 

4 shall establish a process for arbitration 

5 under clause (i) under which the arbitrator 

6 provides a non-binding recommendation to 

7 the Administrator. 

8 ‘‘(4) RELIEF.— 

9 ‘‘(A) WHOLLY SUCCESSFUL APPEALS.—If 

10 the Administrator determines, in an appeal 

11 under this subsection, that the property of a 

12 policyholder that had been included in a special 

13 flood hazard area under the flood insurance 

14 rate map is actually not in a special flood haz15 ard area— 

16 ‘‘(i) the policyholder may cancel the 

17 policy at any time during the year in which 

18 the Administrator makes the determina19 tion; and 

20 ‘‘(ii) the Administrator shall provide 

21 the policyholder a refund equal to the 

22 amount of— 

23 ‘‘(I) any premiums that the pol24 icyholder paid during the year de25 scribed in clause (i); and 


rfrederick on DSK3GLQ082PROD with BILLS
36 

•S 1368 IS

1 ‘‘(II) any premiums that the pol2 icyholder paid for flood insurance cov3 erage that the policyholder was re4 quired to purchase or maintain during 

5 the 2-year period preceding the year 

6 described in clause (i). 

7 ‘‘(B) PARTIALLY SUCCESSFUL APPEALS.— 

8 If the Administrator determines in an appeal 

9 under this subsection that mitigating factors 

10 have reduced, but not eliminated, the risk of 

11 flooding to a property, the Administrator 

12 shall— 

13 ‘‘(i) reduce the amount of flood insur14 ance coverage required to be maintained 

15 for the property by the ratio of the suc16 cessful portion of the appeal as compared 

17 to the entire appeal; and 

18 ‘‘(ii) provide the policyholder a refund 

19 equal to the difference between— 

20 ‘‘(I) the amount of any premiums 

21 that the policyholder paid during the 

22 period— 

23 ‘‘(aa) beginning on the later 

24 of— 


rfrederick on DSK3GLQ082PROD with BILLS
37 

•S 1368 IS

1 ‘‘(AA) the date on 

2 which the mitigating factor 

3 was created; or 

4 ‘‘(BB) January 1 of the 

5 second year preceding the 

6 date on which the deter7 mination is made; and 

8 ‘‘(bb) ending on the date on 

9 which the reduction in the 

10 amount of flood insurance re11 quired, as described in clause (i), 

12 takes effect; and 

13 ‘‘(II) the amount of premiums 

14 that the policyholder would have been 

15 required to pay if the reduced amount 

16 of flood insurance coverage required, 

17 as described in clause (i), had been in 

18 effect during the period described in 

19 subclause (I) of this clause. 

20 ‘‘(C) ADDITIONAL RELIEF.—The Adminis21 trator may provide additional refunds in excess 

22 of the amounts required under subparagraphs 

23 (A) and (B) if the Administrator determines 

24 that such additional refunds are warranted. 

25 ‘‘(5) RECOVERY OF COSTS.— 


rfrederick on DSK3GLQ082PROD with BILLS
38 

•S 1368 IS

1 ‘‘(A) APPEAL EXPENSES.—If a State or 

2 local government, or the owner or lessee of real 

3 property, incurs any expense in connection with 

4 an appeal under this subsection that is based 

5 on a scientific or technical error made by the 

6 Administrator and that is successful in whole or 

7 part regarding the designation of the base flood 

8 elevation or any aspect of a flood insurance rate 

9 map, including elevation or designation of a 

10 special flood hazard area, the Administrator 

11 shall reimburse the State, local government, 

12 owner, or lessee in accordance with subpara13 graph (B). 

14 ‘‘(B) REIMBURSABLE EXPENSES.—The 

15 Administrator— 

16 ‘‘(i) may reimburse a party under 

17 subparagraph (A) for reasonable expenses 

18 described in that subparagraph— 

19 ‘‘(I) including for a service pro20 vided by a surveyor, engineer, or sci21 entific expert; and 

22 ‘‘(II) to the extent measured by 

23 the ratio of the successful portion of 

24 the appeal as compared to the entire 

25 appeal; and 


rfrederick on DSK3GLQ082PROD with BILLS
39 

•S 1368 IS

1 ‘‘(ii) may not reimburse a party under 

2 subparagraph (A) for— 

3 ‘‘(I) the cost of legal services; or 

4 ‘‘(II) the payment of any fee or 

5 expense, the payment of which was 

6 agreed to be contingent upon the re7 sult of the appeal. 

8 ‘‘(6) GUIDANCE.—The Administrator shall 

9 issue guidance to implement this subsection, which 

10 shall not be subject to the notice and comment re11 quirements under section 553 of title 5, United 

12 States Code.’’. 

13 (2) TECHNICAL AND CONFORMING AMEND14 MENTS.—Section 1310(a) of the National Flood In15 surance Act of 1968 (42 U.S.C. 4017(a)) is amend16 ed— 

17 (A) in paragraph (7), by striking ‘‘and’’ at 

18 the end; 

19 (B) in paragraph (8), by striking the pe20 riod at the end and inserting ‘‘; and’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(9) for providing reimbursements of expenses 

23 of flood insurance rate map appeals under section 

24 1360(k)(5).’’. 


rfrederick on DSK3GLQ082PROD with BILLS
40 

•S 1368 IS

1 (b) DEADLINE.—Not later than 180 days after the 

2 date of enactment of this Act, the Administrator shall 

3 issue the guidance required under subsection (l)(6) of sec4 tion 1360 of the National Flood Insurance Act of 1968 

5 (42 U.S.C. 4101), as added by subsection (a) of this sec6 tion. 

7 TITLE III—COST SAVINGS 

8 SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS. 

9 (a) IN GENERAL.—During the 6-year period begin10 ning on the date of enactment of this Act, the Secretary 

11 of the Treasury may not charge the Administrator interest 

12 on amounts borrowed by the Administrator under section 

13 1309(a) of the National Flood Insurance Act of 1968 (42 

14 U.S.C. 4016(a)) that were outstanding as of that date of 

15 enactment. 

16 (b) NO RETROACTIVE ACCRUAL.—After the 6-year 

17 period described in subsection (a), the Secretary of the 

18 Treasury shall not require the Administrator to repay any 

19 interest that, but for that subsection, would have accrued 

20 on the borrowed amounts described in that subsection dur21 ing that 6-year period. 


rfrederick on DSK3GLQ082PROD with BILLS
41 

•S 1368 IS

1 SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSA2 TION. 

3 (a) IN GENERAL.—Section 1311 of the National 

4 Flood Insurance Act of 1968 (42 U.S.C. 4018) is amend5 ed— 

6 (1) by redesignating subsection (b) as sub7 section (c); and 

8 (2) by inserting after subsection (a) the fol9 lowing: 

10 ‘‘(b) LIMITATION ON COMPENSATION; MINIMUM

11 AGENT COMMISSIONS.—In negotiating with appropriate 

12 representatives of the insurance industry under subsection 

13 (a), the Administrator shall ensure that— 

14 ‘‘(1) any reimbursement paid to a property and 

15 casualty insurance company for selling, writing, and 

16 servicing flood insurance policies is not more than 

17 22.46 percent of the aggregate amount of premiums 

18 charged by the insurance company; and 

19 ‘‘(2) an insurance company pays a portion of 

20 the reimbursement described in paragraph (1) to 

21 agents of the company as a commission, in an 

22 amount that is not less than 15 percent of the ag23 gregate amount of the premiums sold by the 

24 agent.’’. 

25 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

26 Section 1311 of the National Flood Insurance Act of 1968 


rfrederick on DSK3GLQ082PROD with BILLS
42 

•S 1368 IS

1 (42 U.S.C. 4018), as amended by subsection (a), is 

2 amended— 

3 (1) in subsection (a), by striking ‘‘The Adminis4 trator’’ and inserting ‘‘IN GENERAL.—The Adminis5 trator’’; and 

6 (2) in subsection (c), by striking ‘‘For purposes 

7 of subsection (a)’’ and inserting ‘‘DEFINITIONS.— 

8 For purposes of this section’’. 

9 SEC. 303. TAXPAYER PROTECTION. 

10 Section 1360(g) of the National Flood Insurance Act 

11 of 1968 (42 U.S.C. 4101(g)) is amended— 

12 (1) in the first sentence, by inserting ‘‘, subject 

13 to the following sentence,’’ after ‘‘at a reasonable 

14 cost’’; and 

15 (2) by inserting after the first sentence the fol16 lowing: ‘‘The Administrator shall develop a fee 

17 schedule based on recovering the actual costs of pro18 viding flood insurance rate maps to such other per19 sons, and shall charge a fee based on the schedule 

20 to any private entity for the use of such a map.’’. 

21 SEC. 304. VENDOR COSTS; TRANSPARENCY. 

22 (a) IN GENERAL.—Section 100224(d) of the Biggert23 Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 

24 4081 note) is amended— 


rfrederick on DSK3GLQ082PROD with BILLS
43 

•S 1368 IS

1 (1) by striking ‘‘Not later than 12 months after 

2 the date of enactment of this Act, the Adminis3 trator’’ and inserting the following: 

4 ‘‘(A) IN GENERAL.—The Administrator’’; 

5 and 

6 (2) by adding at the end the following: 

7 ‘‘(B) VENDOR COSTS; TRANSPARENCY.—In 

8 issuing the rule under subparagraph (A), the 

9 Administrator shall— 

10 ‘‘(i) develop a schedule to determine 

11 the actual costs of Write Your Own ven12 dors, including claims adjusters and engi13 neering companies; 

14 ‘‘(ii) provide that if a Write Your Own 

15 company requests reimbursement for the 

16 costs of a service or product provided to 

17 the company by a vendor, the Adminis18 trator only reimburses the company for the 

19 actual costs of the service or products; and 

20 ‘‘(iii) require that all reimbursements 

21 to Write Your Own companies be made 

22 public, including a description of the prod23 uct or service provided to which the reim24 bursement pertains.’’. 


rfrederick on DSK3GLQ082PROD with BILLS
44 

•S 1368 IS

1 (b) DEADLINE FOR REVISED RULE.—Not later than 

2 90 days after the date of enactment of this Act, the Ad3 ministrator shall issue a revised rule under section 

4 100224(d) of the Biggert-Waters Flood Insurance Reform 

5 Act of 2012 (42 U.S.C. 4081 note), as amended by sub6 section (a). 

7 TITLE IV—CLAIMS PROCESS 

8 REFORM 

9 SEC. 401. EARTH MOVEMENT CLARIFICATION. 

10 Section 1306 of the National Flood Insurance Act of 

11 1968 (42 U.S.C. 4013) is amended by adding at the end 

12 the following: 

13 ‘‘(e) EARTH MOVEMENT.—A flood insurance claim 

14 filed under this title for damage to or loss of property may 

15 not be denied based on the earth movement exclusion in 

16 the standard flood insurance policy under the national 

17 flood insurance program if the claim is filed as the result 

18 of a flood, including a claim for damage to or loss or prop19 erty caused by earth movement that was caused by a 

20 flood.’’. 

21 SEC. 402. TREATMENT OF BASEMENTS. 

22 (a) BASEMENT CLARIFICATION.— 

23 (1) DEFINITION.—In this subsection, the term 

24 ‘‘pre-FIRM condominium building’’ means a condoVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
45 

•S 1368 IS

1 minium building that was not constructed or sub2 stantially improved after the later of— 

3 (A) December 31, 1974; or 

4 (B) the effective date of the initial flood in5 surance rate map published by the Adminis6 trator under section 1360 of the National Flood 

7 Insurance Act of 1968 (42 U.S.C. 4101) for the 

8 area in which the building is located. 

9 (2) AMENDMENT TO REGULATIONS.—The Ad10 ministrator shall amend section 59.1 of title 44, 

11 Code of Federal Regulations, to exclude from the 

12 definition of the term ‘‘basement’’ any pre-FIRM 

13 condominium building, the lowest floor of which is 

14 not more than 4 feet below the lowest adjacent 

15 grade. 

16 (b) STUDY ON CONSEQUENCES OF STREET-RAIS17 ING.— 

18 (1) DEFINITION.—In this subsection, the term 

19 ‘‘affected property’’ means a property containing an 

20 area— 

21 (A) the floor of which was located at or 

22 above grade before the community raised the 

23 street adjacent to the property; and 


rfrederick on DSK3GLQ082PROD with BILLS
46 

•S 1368 IS

1 (B) after the street-raising described in 

2 subparagraph (A), that was designated as a 

3 basement because of the street-raising. 

4 (2) STUDY; REPORT.—Not later than 1 year 

5 after the date of enactment of this Act, the Adminis6 trator shall study and submit to Congress a report 

7 on the consequences of street-raising on flood insur8 ance coverage for an affected property under the 

9 National Flood Insurance Program, including the 

10 cost implications for the property owner. 

11 SEC. 403. MOLD DAMAGE CLARIFICATION. 

12 The Administrator shall amend the Standard Flood 

13 Insurance Policy to provide that— 

14 (1) as a general rule, loss caused by water, 

15 moisture, mildew, or mold caused by a flood is cov16 ered by flood insurance under the National Flood 

17 Insurance Program; 

18 (2) the exemption from coverage for water, 

19 moisture, mildew, or mold damage caused by a pol20 icyholder who is truly derelict in inspecting or main21 taining a property after a flood recedes is a limited 

22 exemption; 

23 (3) in the case of water, moisture, mildew, or 

24 mold damage described in paragraph (2), only the 

25 amount of water, moisture, mildew, or mold that 


rfrederick on DSK3GLQ082PROD with BILLS
47 

•S 1368 IS

1 built up because of the dereliction of duty, and only 

2 during the time when the water, moisture, mildew, 

3 or mold build-up reasonably could have been miti4 gated, shall not be covered; 

5 (4) the determination that a policyholder was 

6 truly derelict as described in paragraph (2) is a high 

7 bar to meet; and 

8 (5) the evaluation of whether a policyholder was 

9 truly derelict as described in paragraph (2) shall be 

10 made in light of the behavior that could reasonably 

11 be expected from a survivor in the aftermath of a 

12 particular flood event, which may include a natural 

13 disaster, given the challenges facing a policyholder in 

14 that situation, including— 

15 (A) difficulty in inspecting or maintaining 

16 the property; 

17 (B) the need to address other, more imme18 diate priorities, including the health and well19 being of the policyholder and his or her family, 

20 preservation of basic items, displacement, 

21 shock, and other issues that make inspection 

22 and mitigation a near-term challenge; and 

23 (C) difficulty in finding qualified experts 

24 during the surge of demand following a flood. 


rfrederick on DSK3GLQ082PROD with BILLS
48 

•S 1368 IS

1 SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD IN2 SURANCE COVERAGE. 

3 (a) EXTENSION OF DEADLINE TO FILE APPEAL; EN4 FORCING DEADLINE FOR FEMA TO RESOLVE APPEAL; 

5 OPTIONAL ARBITRATION FOR APPEALS.—Section 1312 of 

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

7 4019) is amended by adding at the end the following: 

8 ‘‘(d) APPEAL OF DECISIONS RELATING TO FLOOD

9 INSURANCE COVERAGE.— 

10 ‘‘(1) IN GENERAL.—The Administrator shall, 

11 by regulation, establish an appeals process through 

12 which holders of a flood insurance policy may appeal 

13 the decisions, with respect to claims, proofs of loss, 

14 and loss estimates relating to such flood insurance 

15 policy, of any— 

16 ‘‘(A) insurance agent or adjuster, or insur17 ance company; or 

18 ‘‘(B) employee or contractor of the Federal 

19 Emergency Management Agency. 

20 ‘‘(2) DEADLINE TO FILE APPEAL.—The Admin21 istrator shall establish a deadline for filing an appeal 

22 under this subsection that is not less than 1 year 

23 after the date on which the decision being appealed 

24 was made. 

25 ‘‘(3) NOTIFICATION UPON INITIAL DENIAL OF

26 CLAIM.—The Administrator shall ensure that a 


rfrederick on DSK3GLQ082PROD with BILLS
49 

•S 1368 IS

1 claimant is provided with the rules, forms, and dead2 lines for an appeal under this subsection at the time 

3 a claim is first denied in full or in part, including— 

4 ‘‘(A) the effective date of the denial; 

5 ‘‘(B) a justification for the denial, includ6 ing supporting documentation; 

7 ‘‘(C) the date on which the period of limi8 tation for instituting an action against the Ad9 ministrator on the claim under section 1333 or 

10 1341, as applicable, will end; and 

11 ‘‘(D) a point of contact through which the 

12 claimant can directly discuss an appeal with a 

13 representative of the Federal Emergency Man14 agement Agency. 

15 ‘‘(4) DEADLINE TO RESOLVE APPEAL.— 

16 ‘‘(A) IN GENERAL.—Not later than 90 

17 days after the date as of which a policyholder 

18 has submitted all necessary information relating 

19 to an appeal under this subsection, the Admin20 istrator shall provide an appeal decision in writ21 ing to the policyholder and insurer, including 

22 specific information for the resolution of the ap23 peal. 


rfrederick on DSK3GLQ082PROD with BILLS
50 

•S 1368 IS

1 ‘‘(B) ENFORCEMENT.—If the Adminis2 trator does not comply with the deadline under 

3 subparagraph (A)— 

4 ‘‘(i) the appeal shall be deemed grant5 ed; and 

6 ‘‘(ii) the Administrator shall award 

7 the policyholder the full amount of the 

8 claim. 

9 ‘‘(C) NOTIFICATION UPON DENIAL OF AP10 PEAL.—If the Administrator denies an appeal 

11 filed by a policyholder under this subsection, 

12 the Administrator shall include with the notice 

13 of denial— 

14 ‘‘(i) an explanation of the legal op15 tions of the policyholder for further chal16 lenging the denial; and 

17 ‘‘(ii) the date on which the period of 

18 limitation for instituting an action against 

19 the Administrator on the claim under sec20 tion 1333 or 1341, as applicable, will end. 

21 ‘‘(e) OPTIONAL ARBITRATION.—Not later than 180 

22 days after the date of enactment of this subsection, the 

23 Administrator shall by regulation establish a process 

24 through which a flood insurance policyholder, instead of 

25 submitting an appeal under subsection (d) to the AdminisVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
51 

•S 1368 IS

1 trator, may request that the appeal be heard through inde2 pendent, binding arbitration.’’. 

3 (b) RELATION TO REGULATIONS AND OTHER LAW.— 

4 Nothing in the amendment made by subsection (a) shall 

5 be construed to require the Administrator to repeal the 

6 regulations promulgated under section 205 of the Bun7 ning-Bereuter-Blumenauer Flood Insurance Reform Act 

8 of 2004 (42 U.S.C. 4011 note), or to promulgate new reg9 ulations, except as necessary to implement that amend10 ment. 

11 SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS BY 

12 WRITE YOUR OWN COMPANIES. 

13 Section 1348 of the National Flood Insurance Act of 

14 1968 (42 U.S.C. 4084) is amended by adding at the end 

15 the following: 

16 ‘‘(c) ACCOUNTABILITY FOR UNDERPAYMENTS.—The 

17 Administrator shall require that, if the Administrator de18 termines through an audit that the pool or an insurance 

19 company or other private organization described in sub20 section (a) has underpaid a claim of a policyholder— 

21 ‘‘(1) the pool, insurance company, or other pri22 vate organization, as applicable, shall pay the 

23 amount of the difference to the Administrator; and 


rfrederick on DSK3GLQ082PROD with BILLS
52 

•S 1368 IS

1 ‘‘(2) the Administrator shall deposit the amount 

2 paid under paragraph (1) in the National Flood In3 surance Fund.’’. 

4 SEC. 406. POLICYHOLDER RIGHT TO KNOW. 

5 Section 1312 of the National Flood Insurance Act of 

6 1968 (42 U.S.C. 4019), as amended by section 404, is 

7 amended by adding at the end the following: 

8 ‘‘(f) AVAILABILITY OF CLAIM-RELATED DOCU9 MENTS.— 

10 ‘‘(1) DEFINITION.—In this subsection, the term 

11 ‘claim-related document’ means any document that 

12 is prepared for the purposes of assessing a claim for 

13 losses covered by flood insurance made available 

14 under this title. 

15 ‘‘(2) AVAILABILITY OF DOCUMENTS.—Any enti16 ty servicing a claim under the national flood insur17 ance program— 

18 ‘‘(A) shall retain each claim-related docu19 ment prepared by or for the entity; 

20 ‘‘(B) not later than 7 days after receiving 

21 a request from a claimant or an authorized rep22 resentative of a claimant for a copy of a claim23 related document described in subparagraph 

24 (A) that pertains to the claimant, shall provide 

25 the copy to the claimant or representative; and 


rfrederick on DSK3GLQ082PROD with BILLS
53 

•S 1368 IS

1 ‘‘(C) not later than 30 days after receiving 

2 notice of a claim, shall notify the claimant that 

3 the claimant or an authorized representative of 

4 the claimant may obtain, upon request, a copy 

5 of any claim-related document described in sub6 paragraph (A) that pertains to the claimant.’’. 

7 SEC. 407. INCREASING STATUTE OF LIMITATIONS FOR LAW8 SUITS. 

9 (a) GOVERNMENT PROGRAM WITH INDUSTRY AS10 SISTANCE.—Section 1341 of the National Flood Insurance 

11 Act of 1968 (42 U.S.C. 4072) is amended to read as fol12 lows: 

13 ‘‘SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND 

14 JUDICIAL REVIEW. 

15 ‘‘(a) ADJUSTMENT AND PAYMENT OF CLAIMS.—If 

16 the program is carried out as provided in section 1340, 

17 the Administrator may adjust and make payment of any 

18 claims for proved and approved losses covered by flood in19 surance. 

20 ‘‘(b) JUDICIAL REVIEW.— 

21 ‘‘(1) RIGHT OF ACTION.—Upon the disallow22 ance or partial disallowance by the Administrator of 

23 a claim described in subsection (a), or upon the re24 fusal of the claimant to accept the amount allowed 

25 upon a claim described in that subsection, the claimVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
54 

•S 1368 IS

1 ant may institute an action against the Adminis2 trator on the claim in the United States district 

3 court for the district in which the insured property 

4 or the major part thereof shall have been situated 

5 not later than 2 years after the later of— 

6 ‘‘(A) the date on which the claimant re7 ceives notice of disallowance or partial disallow8 ance of the claim; or 

9 ‘‘(B) in the case of a denial of a claim for 

10 losses that is appealed to the Administrator, the 

11 date on which the claimant receives notice of a 

12 final determination upon appeal denying the 

13 claim in whole or in part. 

14 ‘‘(2) JURISDICTION.—A court described in 

15 paragraph (1) shall have original exclusive jurisdic16 tion to hear and determine an action under that 

17 paragraph without regard to the amount in con18 troversy.’’. 

19 (b) INDUSTRY PROGRAM WITH FEDERAL FINANCIAL

20 ASSISTANCE.—Section 1333 of the National Flood Insur21 ance Act of 1968 (42 U.S.C. 4053) is amended to read 

22 as follows: 


rfrederick on DSK3GLQ082PROD with BILLS
55 

•S 1368 IS

1 ‘‘SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND 

2 JUDICIAL REVIEW. 

3 ‘‘(a) ADJUSTMENT AND PAYMENT OF CLAIMS.—The 

4 insurance companies and other insurers that form, asso5 ciate, or otherwise join together in the pool under this part 

6 may adjust and pay all claims for proved and approved 

7 losses covered by flood insurance in accordance with the 

8 provisions of this title. 

9 ‘‘(b) JUDICIAL REVIEW.— 

10 ‘‘(1) RIGHT OF ACTION.—Upon the disallow11 ance or partial disallowance by any company or 

12 other insurer described in subsection (a) of a claim 

13 described in that subsection, or upon the refusal of 

14 the claimant to accept the amount allowed upon a 

15 claim described in that subsection, the claimant may 

16 institute an action on the claim against the company 

17 or other insurer in the United States district court 

18 for the district in which the insured property or the 

19 major part thereof shall have been situated not later 

20 than 2 years after the later of— 

21 ‘‘(A) the date on which the claimant re22 ceives notice of disallowance or partial disallow23 ance of the claim; or 

24 ‘‘(B) in the case of a denial of a claim for 

25 losses that is appealed to the Administrator, the 

26 date on which the claimant receives notice of a 


rfrederick on DSK3GLQ082PROD with BILLS
56 

•S 1368 IS

1 final determination upon appeal denying the 

2 claim in whole or in part. 

3 ‘‘(2) JURISDICTION.—A court described in 

4 paragraph (1) shall have original exclusive jurisdic5 tion to hear and determine an action under that 

6 paragraph without regard to the amount in con7 troversy.’’. 

8 SEC. 408. ATTORNEY FEE SHIFTING. 

9 (a) ADMINISTRATIVE APPEALS.—Subsection (d) of 

10 section 1312 of the National Flood Insurance Act of 1968 

11 (42 U.S.C. 4019), as amended by section 404, is amended 

12 by adding at the end the following: 

13 ‘‘(5) AWARDS FOR COSTS IN ADMINISTRATIVE

14 PROCEEDINGS.— 

15 ‘‘(A) IN GENERAL.—If the claimant pre16 vails in any appeal to the Administrator of the 

17 disallowance or partial disallowance of a claim 

18 for losses covered by flood insurance made 

19 available under this title, the Administrator 

20 shall award costs of the appeal, including attor21 ney fees, any proceeding expenses, and engi22 neering and other expert expenses, to the claim23 ant. 

24 ‘‘(B) DEFINITION.—For purposes of this 

25 paragraph, the term ‘prevail’ means to be 


rfrederick on DSK3GLQ082PROD with BILLS
57 

•S 1368 IS

1 awarded a greater amount by the Administrator 

2 than the amount of the last, best offer from the 

3 Administrator with respect to the claim of the 

4 claimant.’’. 

5 (b) JUDICIAL REVIEW.— 

6 (1) GOVERNMENT PROGRAM WITH INDUSTRY

7 ASSISTANCE.—Subsection (b) of section 1341 of the 

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

9 4072), as added by section 407, is amended by add10 ing at the end the following: 

11 ‘‘(3) ATTORNEY FEES AND OTHER LITIGATION

12 COSTS.— 

13 ‘‘(A) IN GENERAL.—If the claimant pre14 vails in an action under this subsection, the 

15 court shall award reasonable costs of litigation, 

16 including attorney fees, litigation expenses, and 

17 engineering and other expert expenses, to the 

18 claimant. 

19 ‘‘(B) SUBROGATION.—Any award under 

20 subparagraph (A) shall be paid by the Adminis21 trator and, upon such payment, the Adminis22 trator shall be subrogated to the rights of the 

23 claimant to recover such costs for which the 

24 Administrator has compensated the claimant 

25 from any insurance company or other insurer or 


rfrederick on DSK3GLQ082PROD with BILLS
58 

•S 1368 IS

1 insurance adjustment organization that may be 

2 responsible for the disallowance or partial dis3 allowance of the claim. 

4 ‘‘(C) DEFINITION.—For purposes of this 

5 paragraph, the term ‘prevail’ means to be 

6 awarded a greater amount by the court than 

7 the amount of the last, best offer from the Ad8 ministrator with respect to the claim of the 

9 claimant.’’. 

10 (2) INDUSTRY PROGRAM WITH FEDERAL FINAN11 CIAL ASSISTANCE.—Subsection (b) of section 1333 

12 of the National Flood Insurance Act of 1968 (42 

13 U.S.C. 4053), as amended by section 407, is amend14 ed by adding at the end the following: 

15 ‘‘(3) ATTORNEY FEES AND OTHER LITIGATION

16 COSTS.— 

17 ‘‘(A) IN GENERAL.—If the claimant pre18 vails in an action under this subsection, the 

19 court shall award reasonable costs of litigation, 

20 including attorney fees, litigation expenses, and 

21 engineering and other expert expenses, to the 

22 claimant. 

23 ‘‘(B) SUBROGATION.—Any award under 

24 subparagraph (A) shall be paid by the Adminis25 trator and, upon such payment, the AdminisVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
59 

•S 1368 IS

1 trator shall be subrogated to the rights of the 

2 claimant to recover such costs for which the 

3 Administrator has compensated the claimant 

4 from any company or other insurer responsible 

5 for the disallowance or partial disallowance of 

6 the claim. 

7 ‘‘(C) DEFINITION.—For purposes of this 

8 paragraph, the term ‘prevail’ means to be 

9 awarded a greater amount by the court than 

10 the amount of the last, best offer from the in11 surer or Administrator with respect to the claim 

12 of the claimant.’’. 

13 SEC. 409. DOJ DEFENSE AGAINST POLICYHOLDER LAW14 SUITS. 

15 Subsection (b) of section 1341 of the National Flood 

16 Insurance Act of 1968 (42 U.S.C. 4072), as amended by 

17 section 408, is amended by adding at the end the fol18 lowing: 

19 ‘‘(4) REPRESENTATION BY DEPARTMENT OF

20 JUSTICE.—If a claimant institutes an action under 

21 this subsection— 

22 ‘‘(A) the Administrator shall refer the mat23 ter to the Attorney General; and 

24 ‘‘(B) the Attorney General— 


rfrederick on DSK3GLQ082PROD with BILLS
60 

•S 1368 IS

1 ‘‘(i) shall represent the Administrator 

2 or the Write Your Own company, as appli3 cable, in the action; and 

4 ‘‘(ii) may not seek to have the court 

5 dismiss an action with potential meri6 torious claims based on good faith errors 

7 or omissions by the claimant in the claim8 ant’s proof of loss.’’. 

9 SEC. 410. STUDY ON PARTICIPATION RATES. 

10 (a) DEFINITIONS.—In this section— 

11 (1) the term ‘‘500-year floodplain’’ has the 

12 meaning given the term in section 100202(a) of the 

13 Biggert-Waters Flood Insurance Reform Act of 

14 2012 (40 U.S.C. 4004(a)); 

15 (2) the terms ‘‘Federal agency lender’’, ‘‘im16 proved real estate’’, and ‘‘regulated lending institu17 tion’’ have the meanings given those terms in section 

18 3(a) of the Flood Disaster Protection Act of 1973 

19 (42 U.S.C. 4003(a)); and 

20 (3) the term ‘‘property with a federally backed 

21 mortgage’’ means improved real estate or a mobile 

22 home securing a loan that was— 

23 (A) made by a regulated lending institu24 tion or Federal agency lender; or 


rfrederick on DSK3GLQ082PROD with BILLS
61 

•S 1368 IS

1 (B) purchased by the Federal National 

2 Mortgage Association or the Federal Home 

3 Loan Mortgage Corporation. 

4 (b) STUDY.—Not later than 1 year after the date of 

5 enactment of this Act, the Administrator shall study and 

6 submit to Congress a report that describes— 

7 (1) the percentage of properties with federally 

8 backed mortgages located in an area having special 

9 flood hazards that are covered by flood insurance 

10 that satisfies the requirement under section 102(b) 

11 of the Flood Disaster Protection Act of 1973 (42 

12 U.S.C. 4012a(b)); and 

13 (2) the percentage of properties with federally 

14 backed mortgages located in the 500-year floodplain 

15 that are covered by flood insurance that would sat16 isfy the requirement described in paragraph (1) if 

17 that requirement applied to such properties. 

18 SEC. 411. FEDERAL FLOOD INSURANCE ADVISORY COM19 MITTEE. 

20 Part C of chapter II of the National Flood Insurance 

21 Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add22 ing at the end the following: 


rfrederick on DSK3GLQ082PROD with BILLS
62 

•S 1368 IS

1 ‘‘SEC. 1349. FEDERAL FLOOD INSURANCE ADVISORY COM2 MITTEE. 

3 ‘‘(a) ESTABLISHMENT.—There is established an advi4 sory committee to be known as the Federal Flood Insur5 ance Advisory Committee (in this section referred to as 

6 the ‘Committee’). 

7 ‘‘(b) MEMBERSHIP.— 

8 ‘‘(1) MEMBERS.—The Committee shall consist 

9 of— 

10 ‘‘(A) the Administrator, or the designee 

11 thereof; 

12 ‘‘(B) the Secretary of the Treasury, or the 

13 designee thereof; and 

14 ‘‘(C) additional members appointed by the 

15 Administrator or the designee thereof, who shall 

16 be— 

17 ‘‘(i) 2 representatives of the property 

18 and casualty insurance sector; 

19 ‘‘(ii) 1 individual who served in the 

20 past, or is currently serving, as an insur21 ance regulator of a State, the District of 

22 Columbia, the Commonwealth of Puerto 

23 Rico, Guam, the Commonwealth of the 

24 Northern Mariana Islands, the Virgin Is25 lands, American Samoa, or any federally26 recognized Indian tribe; 


rfrederick on DSK3GLQ082PROD with BILLS
63 

•S 1368 IS

1 ‘‘(iii) 1 representative of the financial 

2 sector or insurance sector who is involved 

3 in risk transfers, including reinsurance, re4 silience bonds, and other insurance-linked 

5 securities; 

6 ‘‘(iv) 1 actuary with demonstrated 

7 high-level knowledge of catastrophic risk 

8 insurance; 

9 ‘‘(v) 2 insurance professionals with 

10 demonstrated experience with the sale of 

11 flood insurance under the national flood in12 surance program; 

13 ‘‘(vi) 2 representatives of catastrophic 

14 risk insurance programs; 

15 ‘‘(vii) 1 insurance claims specialist; 

16 ‘‘(viii) 1 representative of a recognized 

17 consumer advocacy organization; 

18 ‘‘(ix) 1 individual having dem19 onstrated expertise in the challenges in in20 suring low-income communities; 

21 ‘‘(x) 1 representative from an aca22 demic institution who has demonstrated 

23 expertise in insurance; and 


rfrederick on DSK3GLQ082PROD with BILLS
64 

•S 1368 IS

1 ‘‘(xi) any other recognized experts in 

2 the field of insurance that the Adminis3 trator considers necessary. 

4 ‘‘(2) QUALIFICATIONS.—In appointing members 

5 under paragraph (1)(C), the Administrator shall, to 

6 the maximum extent practicable, ensure the mem7 bership of the Committee has a balance of members 

8 reflecting geographic diversity, including representa9 tion from areas inland or with coastline identified by 

10 the Administrator as at high risk for flooding or as 

11 areas having special flood hazards. 

12 ‘‘(c) DUTIES.—The Committee shall review, and 

13 make recommendations to the Administrator, upon re14 quest, on matters related to the insurance aspects of the 

15 national flood insurance program, including ratemaking, 

16 technology to administer insurance, risk assessment, actu17 arial practices, claims practices, sales and insurance deliv18 ery, compensation and allowances, generally and based on 

19 the complexities of the program, and best insurance prac20 tices. 

21 ‘‘(d) CHAIRPERSON.—The members of the Com22 mittee shall elect 1 member to serve as the chairperson 

23 of the Committee (in this subsection referred to as the 

24 ‘Chairperson’). 


rfrederick on DSK3GLQ082PROD with BILLS
65 

•S 1368 IS

1 ‘‘(e) COMPENSATION.—Members of the Committee 

2 shall receive no additional compensation by reason of their 

3 service on the Committee. 

4 ‘‘(f) MEETINGS AND ACTIONS.— 

5 ‘‘(1) IN GENERAL.—The Committee— 

6 ‘‘(A) shall meet not less frequently than 

7 twice each year at the request of the Chair8 person or a majority of the members of the 

9 Committee; and 

10 ‘‘(B) may take action by a vote of the ma11 jority of the members in accordance with the 

12 charter of the Committee. 

13 ‘‘(2) INITIAL MEETING.—The Administrator, or 

14 a designee thereof, shall request and coordinate the 

15 initial meeting of the Committee. 

16 ‘‘(g) STAFF OF FEMA.—Upon the request of the 

17 Chairperson, the Administrator may detail, on a nonreim18 bursable basis, personnel of the Federal Emergency Man19 agement Agency to assist the Committee in carrying out 

20 the duties of the Committee. 

21 ‘‘(h) POWERS.—In carrying out this section, the 

22 Committee may hold hearings, receive evidence and assist23 ance, provide information, and conduct research, as the 

24 Committee considers appropriate. 


rfrederick on DSK3GLQ082PROD with BILLS
66 

•S 1368 IS

1 ‘‘(i) REPORTS TO CONGRESS.—The Administrator, 

2 on an annual basis, shall report to the Committee on Fi3 nancial Services of the House of Representatives, the 

4 Committee on Banking, Housing, and Urban Affairs of 

5 the Senate, and the Office of Management and Budget 

6 on— 

7 ‘‘(1) the recommendations made by the Com8 mittee; 

9 ‘‘(2) actions taken by the Federal Emergency 

10 Management Agency to address the recommenda11 tions described in paragraph (1) to improve the in12 surance aspects of the National Flood Insurance 

13 Program; and 

14 ‘‘(3) any recommendations described in para15 graph (1) that have been deferred or not acted upon, 

16 together with an explanatory statement with respect 

17 to those recommendations. 

18 ‘‘(j) APPLICABILITY OF THE FEDERAL ADVISORY

19 COMMITTEE ACT.—Section 14 of the Federal Advisory 

20 Committee Act (5 U.S.C. App.) shall not apply to the 

21 Committee.’’. 

22 SEC. 412. AUTHORITY TO TERMINATE CONTRACTORS AND 

23 VENDORS. 

24 (a) IN GENERAL.—Part C of chapter II of the Na25 tional Flood Insurance Act of 1968 (42 U.S.C. 4081 et 


rfrederick on DSK3GLQ082PROD with BILLS
67 

•S 1368 IS

1 seq.), as amended by section 411, is amended by adding 

2 at the end the following: 

3 ‘‘SEC. 1350. TERMINATION OF CONTRACTS. 

4 ‘‘(a) DEFINITION.—In this section, the term ‘covered 

5 entity’ means any attorney, law firm, consultant, or third6 party company that provides services to a Write Your Own 

7 company. 

8 ‘‘(b) TERMINATION.— 

9 ‘‘(1) IN GENERAL.—Notwithstanding any other 

10 provision of law, the Administrator may terminate a 

11 contract or other agreement between a covered enti12 ty and a Write Your Own company if the Adminis13 trator— 

14 ‘‘(A) determines that the covered entity 

15 has engaged in conduct that is detrimental to 

16 the national flood insurance program; and 

17 ‘‘(B) not later than 14 days before termi18 nating the contract or other agreement, pro19 vided notice to the covered entity of the termi20 nation. 

21 ‘‘(2) APPEAL.—The Administrator shall estab22 lish a process for a covered entity to appeal the ter23 mination of a contract or other agreement under 

24 paragraph (1). 


rfrederick on DSK3GLQ082PROD with BILLS
68 

•S 1368 IS

1 ‘‘(3) EARLY TERMINATION PAYOUTS.—The Ad2 ministrator or a Write Your Own company is not re3 quired to make any early termination payout to a 

4 covered entity with respect to a contract or agree5 ment with the Write Your Own company that the 

6 Administrator terminates under paragraph (1).’’. 

7 (b) EFFECTIVE DATE; APPLICABILITY.—The amend8 ment made by subsection (a) shall apply to any contract 

9 or other agreement between a covered entity, as defined 

10 in section 1350(a) of the National Flood Insurance Act 

11 of 1968, as added by subsection (a), and a Write Your 

12 Own company that is entered into on or after the date 

13 of enactment of this Act. 

14 SEC. 413. EASING PROOF OF LOSS REQUIREMENTS. 

15 (a) IN GENERAL.—Section 1312 of the National 

16 Flood Insurance Act of 1968 (42 U.S.C. 4019), as amend17 ed by section 406, is amended by adding at the end the 

18 following: 

19 ‘‘(g) PROOF OF LOSS.— 

20 ‘‘(1) REQUIRED NOTICE.—Not later than 1 

21 year after the date on which damage to or loss of 

22 a property that is covered by flood insurance made 

23 available under this title occurs, the policyholder 

24 with respect to the covered property may submit a 

25 proof of loss notice that contains only such informaVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
69 

•S 1368 IS

1 tion as is necessary to document the damage or loss, 

2 including— 

3 ‘‘(A) the amount claimed for the damage 

4 to or loss of the property; and 

5 ‘‘(B) the signature of the policyholder at6 testing to the accuracy of the amount claimed 

7 and the information supplied to document the 

8 damage or loss. 

9 ‘‘(2) SUPPLEMENTAL PROOF.—Not later than 1 

10 year after the date on which a policyholder submits 

11 a proof of loss notice under paragraph (1) with re12 spect to a property that is covered by flood insur13 ance made available under this title, the policyholder 

14 may submit supplemental information to support an 

15 increase in the amount claimed in the proof of loss 

16 notice if the policyholder discovers further damage 

17 to the property or otherwise determines that the 

18 amount claimed was insufficient. 

19 ‘‘(3) ERRORS OR OMISSIONS.—An error or hon20 est omission in a proof of loss notice or in supple21 mental information submitted by a policyholder 

22 under paragraph (1) or (2), respectively, with re23 spect to a property that is covered by flood insur24 ance made available under this title may not be used 

25 to deny the right of the policyholder— 


rfrederick on DSK3GLQ082PROD with BILLS
70 

•S 1368 IS

1 ‘‘(A) to receive a payment for the damage 

2 to or loss of the property; or 

3 ‘‘(B) to appeal or otherwise challenge the 

4 amount received for the damage to or loss of 

5 the property.’’. 

6 (b) APPLICABILITY.—The amendment made by sub7 section (a) shall apply to any claim for damage to or loss 

8 of property that is covered by flood insurance under the 

9 National Flood Insurance Program that is pending on, or 

10 made after, the date of enactment of this Act. 

11 SEC. 414. ELEVATION CERTIFICATES. 

12 Chapter I of the National Flood Insurance Act of 

13 1968 (42 U.S.C. 4011 et seq.), as amended by section 

14 103, is amended by adding at the end the following: 

15 ‘‘SEC. 1327. ELEVATION CERTIFICATES. 

16 ‘‘(a) NO EXPIRATION DATE.—Surveyed elevation 

17 data and other information relating to a building that is 

18 recorded on a National Flood Insurance Program Ele19 vation Certificate by an individual licensed to record that 

20 information shall continue to be in effect, and the Ele21 vation Certificate shall not expire, until the date on which 

22 there is an alteration in the building or to the topography 

23 surrounding the perimeter of the building. 

24 ‘‘(b) ELEVATION DATUM.—With respect to a Na25 tional Flood Insurance Program Elevation Certificate for 


rfrederick on DSK3GLQ082PROD with BILLS
71 

•S 1368 IS

1 a building, if the elevation datum used to determine the 

2 base flood elevation at the building is different than the 

3 elevation datum used to calculate the building elevation, 

4 a datum conversion shall be performed to ensure that the 

5 same elevation datum is used to calculate the base flood 

6 elevation and the building elevation.’’. 

7 SEC. 415. MONTHLY INSTALLMENT PAYMENT FOR PRE8 MIUMS. 

9 Not later than 180 days after the date of enactment 

10 of this Act, the Administrator shall— 

11 (1) implement the requirement for monthly in12 stallment payments of premiums provided under sec13 tion 1308(g) of the National Flood Insurance Act of 

14 1968 (42 U.S.C. 4015(g)); or 

15 (2) submit to Congress an explanation of the 

16 reasons why the Administrator cannot implement 

17 the requirement described in paragraph (1) during 

18 that 180-day period. 

19 SEC. 416. PILOT PROGRAM FOR PRE-EXISTING STRUC20 TURAL CONDITIONS. 

21 (a) DEFINITIONS.—In this section— 

22 (1) the term ‘‘covered property’’ means a prop23 erty that is or may be covered by flood insurance 

24 under the National Flood Insurance Program; and 


rfrederick on DSK3GLQ082PROD with BILLS
72 

•S 1368 IS

1 (2) the term ‘‘covered policyholder’’ means a 

2 policyholder or potential policyholder of flood insur3 ance under the National Flood Insurance Program 

4 for a covered property. 

5 (b) PILOT PROGRAM.—Not later than 180 days after 

6 the date of enactment of this Act, the Administrator shall 

7 establish a pilot program under which Write Your Own 

8 companies and National Flood Insurance Program direct 

9 servicers shall, at the request of a covered policyholder and 

10 before providing or renewing insurance coverage with re11 spect to a covered property under the National Flood In12 surance Program, investigate the pre-existing structural 

13 condition of the covered property for any issues that could 

14 result in the denial of a claim under the National Flood 

15 Insurance Program for damage to or loss of the covered 

16 property. 

17 SEC. 417. DEADLINE FOR CLAIM PROCESSING. 

18 (a) IN GENERAL.—Section 1312 of the National 

19 Flood Insurance Act of 1968 (42 U.S.C. 4019), as amend20 ed by section 413, is amended by adding at the end the 

21 following: 

22 ‘‘(h) DEADLINE FOR APPROVAL OF CLAIMS.— 

23 ‘‘(1) IN GENERAL.—The Administrator shall 

24 provide that, in the case of a claim for damage to 


rfrederick on DSK3GLQ082PROD with BILLS
73 

•S 1368 IS

1 or loss of property that is covered by flood insurance 

2 made available under this title— 

3 ‘‘(A) except as provided in paragraph (2), 

4 not later than 30 days after the date on which 

5 the claim is made— 

6 ‘‘(i) a final determination regarding 

7 approval of the claim for payment or dis8 approval of the claim shall be made; and 

9 ‘‘(ii) notification of the determination 

10 shall be provided to the insured making 

11 the claim; and 

12 ‘‘(B) payment of an approved claim shall 

13 be made as soon as possible after that approval. 

14 ‘‘(2) EXTENSION OF DEADLINE.—The Adminis15 trator shall— 

16 ‘‘(A) provide that the period described in 

17 paragraph (1)(A) may be extended by a single 

18 additional period of 15 days under extraor19 dinary circumstances; and 

20 ‘‘(B) by regulation, establish criteria for— 

21 ‘‘(i) demonstrating the extraordinary 

22 circumstances described in subparagraph 

23 (A); and 


rfrederick on DSK3GLQ082PROD with BILLS
74 

•S 1368 IS

1 ‘‘(ii) determining to which claims the 

2 extraordinary circumstances described in 

3 subparagraph (A) apply.’’. 

4 (b) APPLICABILITY.—The amendment made by sub5 section (a) shall apply to any claim for damage to or loss 

6 of property that is covered by flood insurance made avail7 able under the National Flood Insurance Program that 

8 is pending on, or made after, the date of enactment of 

9 this Act. 

10 SEC. 418. ENGINEER OVERSIGHT AND CERTIFICATION. 

11 Part C of chapter II of the National Flood Insurance 

12 Act of 1968 (42 U.S.C. 4081 et seq.), as amended by sec13 tion 412, is amended by adding at the end the following: 

14 ‘‘SEC. 1351. OVERSIGHT AND CERTIFICATION OF ENGI15 NEERS. 

16 ‘‘(a) DEFINITION.—In this section, the term ‘covered 

17 engineering services’ means engineering services provided 

18 in connection with insurance coverage provided under this 

19 title. 

20 ‘‘(b) QUALIFICATIONS.—The Administrator shall re21 quire that any individual who provides covered engineering 

22 services, including services in connection with assessing 

23 any claim for losses covered by a policy for that coverage, 

24 shall— 


rfrederick on DSK3GLQ082PROD with BILLS
75 

•S 1368 IS

1 ‘‘(1) have registered with and certified to the 

2 Administrator that the engineer is professionally li3 censed to practice as an engineer in the State in 

4 which the engineer is providing the covered engineer5 ing services; 

6 ‘‘(2) have expertise in a particular discipline of 

7 engineer or act within the area of the competency of 

8 the engineer, as the Administrator shall require; and 

9 ‘‘(3) be certified by the Administrator pursuant 

10 to subsection (c). 

11 ‘‘(c) CERTIFICATION BY FEMA.— 

12 ‘‘(1) REQUIREMENT.—The Administrator shall 

13 carry out a program to certify engineers as qualified 

14 to provide covered engineering services. 

15 ‘‘(2) CONTENTS.—The program carried out 

16 under paragraph (1) shall— 

17 ‘‘(A) include an initial training seminar; 

18 ‘‘(B) provide such standards and testing 

19 requirements as the Administrator shall estab20 lish; and 

21 ‘‘(C) require an annual renewal of certifi22 cation through continuing education. 

23 ‘‘(d) FEES.— 

24 ‘‘(1) STANDARDIZED SCHEDULE.—The Admin25 istrator shall establish a standardized fee schedule 


rfrederick on DSK3GLQ082PROD with BILLS
76 

•S 1368 IS

1 for all covered engineering services, which shall be 

2 similar to the fee schedule of the Administrator used 

3 for companies adjusting claims under insurance cov4 erage provided under this title. 

5 ‘‘(2) REIMBURSEMENT.—Any reimbursement or 

6 other allowance, payment, or compensation provided 

7 by the Administrator to a Write Your Own company 

8 with respect to covered engineered services may not 

9 exceed the applicable standardized fees for those 

10 services established under paragraph (1). 

11 ‘‘(e) IDENTIFICATION NUMBERS.—The Adminis12 trator shall establish a system to provide a unique numer13 ical identifier for each engineer who provides covered engi14 neering services to assist in tracking past performance in 

15 the provision of those services. 

16 ‘‘(f) SUBMISSION OF DOCUMENTATION.—With re17 spect to a Write Your Own company, the Administrator 

18 shall— 

19 ‘‘(1) require the Write Your Own company to 

20 obtain from each provider of covered engineering 

21 services for the Write Your Own company, including 

22 any subcontractor— 

23 ‘‘(A) documentation sufficient to itemize 

24 and disaggregate the costs and fees for those 


rfrederick on DSK3GLQ082PROD with BILLS
77 

•S 1368 IS

1 services, including the costs and fees for any 

2 subcontractor; and 

3 ‘‘(B) all photos, notes, draft reports, and 

4 other documentation relating to providing those 

5 services in connection with a claim under insur6 ance coverage provided under this title; 

7 ‘‘(2) make available to the Write Your Own 

8 company— 

9 ‘‘(A) the fee schedule established under 

10 subsection (d)(1); and 

11 ‘‘(B) such other information as may be 

12 necessary to enable the Write Your Own com13 pany to determine whether the costs and fees 

14 charged by providers of covered engineering 

15 services are reasonable in relation to the serv16 ices provided; and 

17 ‘‘(3) require the Write Your Own company to 

18 make available to the Administrator, before any re19 imbursement or other allowance, payment, or com20 pensation is provided to the Write Your Own com21 pany in connection with covered engineering services 

22 provided, all supporting documentation relating to 

23 those services.’’. 


rfrederick on DSK3GLQ082PROD with BILLS
78 

•S 1368 IS

1 SEC. 419. ENGINEER REPORTS. 

2 Section 1312 of the National Flood Insurance Act of 

3 1968 (42 U.S.C. 4019), as amended by section 417, is 

4 amended by adding at the end the following: 

5 ‘‘(i) FINAL ENGINEERING REPORTS.— 

6 ‘‘(1) DEFINITIONS.—In this subsection— 

7 ‘‘(A) the term ‘covered claim’ means any 

8 claim for losses covered by a policy for flood in9 surance coverage provided under this title; and 

10 ‘‘(B) the term ‘final engineering report’ 

11 means an engineering report, survey, or other 

12 document in connection with a covered claim 

13 that— 

14 ‘‘(i) is based on the on-site inspection; 

15 ‘‘(ii) contains final conclusions with 

16 respect to an engineering issue or issues 

17 involved in the claim; and 

18 ‘‘(iii) is signed by the responsible in 

19 charge or affixed with the seal of the re20 sponsible in charge, or both. 

21 ‘‘(2) PROHIBITION ON MANIPULATION AND

22 TRANSMISSION TO THIRD PARTIES.—The Adminis23 trator shall require that, in the case of any on-site 

24 inspection of a property by an engineer for the pur25 pose of assessing any covered claim, the final engi26 neering report— 


rfrederick on DSK3GLQ082PROD with BILLS
79 

•S 1368 IS

1 ‘‘(A) may not— 

2 ‘‘(i) include alterations by, or at the 

3 request of, anyone other than the respon4 sible in charge for the report; or 

5 ‘‘(ii) be transmitted to any other per6 son before the final engineering report is 

7 transmitted to the policyholder who sub8 mitted the covered claim; and 

9 ‘‘(B) shall include a certification, signed by 

10 the responsible in charge for the final engineer11 ing report, that the final engineering report 

12 does not contain any alterations described in 

13 subparagraph (A). 

14 ‘‘(3) TRANSMISSION OF REPORT WITHOUT AP15 PROVAL.—A Write Your Own company or a national 

16 flood insurance program direct servicer may, without 

17 obtaining further review or approval by the Adminis18 trator, transmit to a policyholder a final engineering 

19 report in the possession of the Write Your Own com20 pany or the direct servicer in connection with a cov21 ered claim submitted by the policyholder.’’. 

22 SEC. 420. IMPROVED TRAINING OF AGENTS AND ADJUST23 ERS. 

24 (a) AGENT TRAINING.— 


rfrederick on DSK3GLQ082PROD with BILLS
80 

•S 1368 IS

1 (1) IN GENERAL.—The Administrator shall re2 quire each insurance agent that issues standard 

3 flood insurance policies on behalf of the National 

4 Flood Insurance Program (under the Write Your 

5 Own Program) or directly from the National Flood 

6 Insurance Program to take— 

7 (A) an introductory course that instructs 

8 insurance agents on how to fill out an applica9 tion for a flood insurance policy; and 

10 (B) annual continuing education courses 

11 on— 

12 (i) any changes in the flood insurance 

13 manual or the National Flood Insurance 

14 Program Elevation Certificate— 

15 (ii) any increased costs of compliance; 

16 (iii) flood insurance mapping; and 

17 (iv) any other modifications to the 

18 National Flood Insurance Program that 

19 influence the rating of a flood insurance 

20 policy. 

21 (2) RECORD OF TRAINING.—The Administrator 

22 shall maintain a record of each insurance agent that 

23 takes a course described in subparagraph (A) or (B) 

24 of paragraph (1). 

25 (b) CERTIFICATION OF ADJUSTERS.— 


rfrederick on DSK3GLQ082PROD with BILLS
81 

•S 1368 IS

1 (1) IN GENERAL.—Each insurance claims ad2 juster acting as an insurance agent for a Write Your 

3 Own company shall— 

4 (A) by certified by the Administrator to 

5 act as an insurance agent; or 

6 (B) act under the direct supervision of an 

7 insurance claims adjuster certified under the 

8 National Flood Insurance Program. 

9 (2) ONLINE COURSE.— 

10 (A) IN GENERAL.—Each insurance claims 

11 adjuster responding to a major disaster de12 clared by the President under section 401 of 

13 the Robert T. Stafford Disaster Relief and 

14 Emergency Assistance Act (42 U.S.C. 5170) 

15 shall, if determined appropriate by the Federal 

16 coordinating officer operating in the affected 

17 area, take an online refresher course provided 

18 by the Administrator to prepare the insurance 

19 claims adjuster for the unique circumstances of 

20 the major disaster. 

21 (B) RECORD OF TRAINING.—The Adminis22 trator shall maintain a record of each insurance 

23 claims adjuster that takes an online refresher 

24 course described in subparagraph (A). 


rfrederick on DSK3GLQ082PROD with BILLS
82 

•S 1368 IS

1 (c) LOCAL FLOODPLAIN MANAGERS.—Each regional 

2 office of the Federal Emergency Management Agency 

3 shall— 

4 (1) provide training to local floodplain man5 agers in the region on the responsibilities and proce6 dures of local floodplain managers with respect to 

7 conducting substantial damage and substantial im8 provement determinations; and 

9 (2) work with applicable State agencies to pro10 vide the training described in paragraph (1) and 

11 verify that local floodplain managers are completing 

12 the training. 

13 SEC. 421. AGENT ADVISORY COUNCIL. 

14 Part C of chapter II of the National Flood Insurance 

15 Act of 1968 (42 U.S.C. 4081 et seq.), as amended by sec16 tion 418, is amended by adding at the end the following: 

17 ‘‘SEC. 1352. AGENT ADVISORY COUNCIL. 

18 ‘‘(a) ESTABLISHMENT.—There is established a coun19 cil to be known as the Agent Advisory Council (in this 

20 section referred to as the ‘Council’). 

21 ‘‘(b) MEMBERSHIP.— 

22 ‘‘(1) MEMBERS.—The Council shall consist of— 

23 ‘‘(A) the Administrator, or the designee of 

24 the Administrator; and 


rfrederick on DSK3GLQ082PROD with BILLS
83 

•S 1368 IS

1 ‘‘(B) 12 additional members appointed by 

2 the Administrator or the designee of the Ad3 ministrator, of whom— 

4 ‘‘(i) 1 shall be a member of the Na5 tional Association of Insurance Commis6 sioners; 

7 ‘‘(ii) 1 shall be a member of the Inde8 pendent Insurance Agents and Brokers of 

9 America; 

10 ‘‘(iii) 1 shall be a member of United 

11 Policyholders; 

12 ‘‘(iv) 1 shall be a representative of the 

13 Emergency Management Institute of the 

14 Federal Emergency Management Agency; 

15 ‘‘(v) 1 shall be a representative of the 

16 Office of the Flood Insurance Advocate of 

17 the Federal Emergency Management 

18 Agency; 

19 ‘‘(vi) 1 shall be a representative of a 

20 national flood insurance program direct 

21 servicer; 

22 ‘‘(vii) 1 shall be a representative of a 

23 recognized professional association or orga24 nization representing homebuilders or land 

25 developers; 


rfrederick on DSK3GLQ082PROD with BILLS
84 

•S 1368 IS

1 ‘‘(viii) 1 shall be a representative of a 

2 recognized professional association or orga3 nization representing the real estate indus4 try; 

5 ‘‘(ix) 2 shall be representatives of 

6 Write Your Own companies that are in 

7 good standing with the Administrator; and 

8 ‘‘(x) 2 shall be at-large members. 

9 ‘‘(2) QUALIFICATIONS.— 

10 ‘‘(A) IN GENERAL.—Each member of the 

11 Council shall have experience with— 

12 ‘‘(i) contacting policyholders under the 

13 national flood insurance program, includ14 ing with respect to applying for flood in15 surance and processing a claim for damage 

16 to or loss of property that is covered by 

17 flood insurance; and 

18 ‘‘(ii) riverine and coastal flood insur19 ance policies. 

20 ‘‘(B) CONSIDERATIONS.—The Adminis21 trator shall, to the maximum extent practicable, 

22 ensure that the membership of the Council has 

23 a balance of governmental and private mem24 bers, and includes geographic diversity. 


rfrederick on DSK3GLQ082PROD with BILLS
85 

•S 1368 IS

1 ‘‘(C) CONFLICTS OF INTEREST.—A mem2 ber of the Council— 

3 ‘‘(i) may not, while serving on the 

4 Council, be employed or retained— 

5 ‘‘(I) by a Federal Emergency 

6 Management Agency contractor or 

7 consultant; or 

8 ‘‘(II) by a nongovernmental enti9 ty that was awarded a Federal grant 

10 during the 5-year period preceding the 

11 date on which the member was ap12 pointed to the Council; and 

13 ‘‘(ii) may not have been employed by 

14 a Federal Emergency Management Agency 

15 contractor or consultant during the 5-year 

16 period preceding the date on which the 

17 member was appointed to the Council. 

18 ‘‘(3) CONSULTATION.—In appointing a member 

19 of the Council from an entity described in clauses (i) 

20 through (viii) of paragraph (1)(B), the Adminis21 trator or the designee of the Administrator, as appli22 cable, shall consult with the entity. 

23 ‘‘(4) CHAIRPERSON.—The members of the 

24 Council shall elect 1 member to serve as the chairVerDate Sep 11 2014 01:10 Jun 21, 2017 Jkt 069200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368

rfrederick on DSK3GLQ082PROD with BILLS
86 

•S 1368 IS

1 person of the Council (in this section referred to as 

2 the ‘Chairperson’). 

3 ‘‘(c) DUTIES.—The Council shall— 

4 ‘‘(1) provide recommendations to the Adminis5 trator on— 

6 ‘‘(A) improving the customer experience 

7 for policyholders under the national flood insur8 ance program; 

9 ‘‘(B) training insurance agents that issue 

10 flood insurance policies; and 

11 ‘‘(C) improving the processing and han12 dling of claims for damage to or loss of prop13 erty that is covered by flood insurance; and 

14 ‘‘(2) submit an annual report to the Adminis15 trator that includes— 

16 ‘‘(A) a description of the activities of the 

17 Council; and 

18 ‘‘(B) a summary of recommendations made 

19 by the Council to the Administrator. 

20 ‘‘(d) COMPENSATION.— 

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), a member of the Council shall receive no 

23 additional compensation for serving on the Council. 

24 ‘‘(2) TRAVEL EXPENSES.—Each member of the 

25 Council may be allowed travel expenses, including 


rfrederick on DSK3GLQ082PROD with BILLS
87 

•S 1368 IS

1 per diem in lieu of subsistence, in accordance with 

2 sections 5702 and 5703 of title 5, United States 

3 Code, while away from their homes or regular places 

4 of business in performance of services for the Coun5 cil. 

6 ‘‘(e) MEETINGS AND ACTIONS.— 

7 ‘‘(1) MEETINGS.— 

8 ‘‘(A) IN GENERAL.—The Council shall 

9 meet not less frequently than twice each year at 

10 the request of the Chairperson or a majority of 

11 the members of the Council. 

12 ‘‘(B) INITIAL MEETING.—The Adminis13 trator, or a designee of the Administrator, shall 

14 request and coordinate the initial meeting of 

15 the Council. 

16 ‘‘(2) ACTION BY MAJORITY VOTE.—The Council 

17 may take action by a vote of the majority of the 

18 members. 

19 ‘‘(f) OFFICERS.—The Chairperson may appoint offi20 cers to assist in carrying out the duties of the Council 

21 under subsection (c). 

22 ‘‘(g) STAFF.—Upon the request of the Chairperson, 

23 the Administrator may detail, on a nonreimbursable basis, 

24 personnel of the Office of the Flood Insurance Advocate 


rfrederick on DSK3GLQ082PROD with BILLS
88 

•S 1368 IS

1 of the Federal Emergency Management Agency to assist 

2 the Council in carrying out the duties of the Council. 

3 ‘‘(h) POWERS.—In carrying out this section, the 

4 Council may hold hearings, receive evidence and assist5 ance, provide information, and conduct research as the 

6 Council considers appropriate. 

7 ‘‘(i) REPORT TO CONGRESS AND OMB.—The Admin8 istrator shall, on an annual basis, submit to the Com9 mittee on Banking, Housing, and Urban Affairs of the 

10 Senate, the Committee on Financial Services of the House 

11 of Representatives, and the Director of the Office of Man12 agement and Budget a report on— 

13 ‘‘(1) the recommendations made by the Council; 

14 and 

15 ‘‘(2) any recommendations made by the Council 

16 during the year covered by the report that, as of the 

17 date on which the report is submitted, have been de18 ferred or not acted upon, together with an explana19 tory statement with respect to those recommenda20 tions. 

21 ‘‘(j) APPLICABILITY OF THE FEDERAL ADVISORY

22 COMMITTEE ACT.—Section 14 of the Federal Advisory 

23 Committee Act (5 U.S.C. App.) shall not apply to the 

24 Council.’’. 


rfrederick on DSK3GLQ082PROD with BILLS
89 

•S 1368 IS

1 SEC. 422. EFFICIENT USE OF MITIGATION DOLLARS. 

2 Section 1315(b) of the National Flood Insurance Act 

3 of 1968 (42 U.S.C. 4022(b)) is amended by adding at the 

4 end the following: 

5 ‘‘(5) REGIONAL COORDINATOR.— 

6 ‘‘(A) IN GENERAL.—The Administrator 

7 shall appoint a regional coordinator in each re8 gion served by a Regional Office (as defined in 

9 section 501 of the Homeland Security Act of 

10 2002 (6 U.S.C. 311)) to provide technical as11 sistance to small communities to enable those 

12 communities to effectively participate in and 

13 benefit from the community rating system pro14 gram. 

15 ‘‘(B) AUTHORIZATION OF APPROPRIA16 TIONS.—There are authorized to be appro17 priated such sums as may be necessary to carry 

18 out this paragraph, which shall remain available 

19 until expended.’’. 

20 SEC. 423. IMPROVED DISCLOSURE REQUIREMENTS. 

21 Chapter I of the National Flood Insurance Act of 

22 1968 (42 U.S.C. 4011 et seq.), as amended by section 

23 414, is amended by adding at the end the following: 

24 ‘‘SEC. 1328. DISCLOSURE IN LEASE OF PROPERTY. 

25 ‘‘(a) IN GENERAL.—Not later than 180 days after 

26 the date of enactment of this section, the Administrator, 


rfrederick on DSK3GLQ082PROD with BILLS
90 

•S 1368 IS

1 in consultation with relevant Federal agencies, shall pro2 mulgate regulations requiring the disclosure of informa3 tion relating to the flood risk and flood insurance coverage 

4 of any property that is offered for lease in accordance with 

5 subsection (b). 

6 ‘‘(b) INFORMATION DISCLOSED.—The regulations 

7 promulgated under subsection (a) shall require that, be8 fore the lessee is obligated under any contract to lease 

9 property, the lessor shall provide a written disclosure to 

10 the lessee that describes— 

11 ‘‘(1) the flood zone classification of the prop12 erty; 

13 ‘‘(2) whether the property is covered by flood 

14 insurance; and 

15 ‘‘(3) the availability of contents coverage under 

16 the national flood insurance program.’’. 

17 SEC. 424. AMENDMENTS TO FINANCIAL ASSISTANCE/SUB18 SIDY ARRANGEMENT. 

19 The Administrator shall amend the Write Your Own 

20 company Financial Assistance/Subsidy Arrangement to 

21 implement the requirements of sections 405, 406, 409, 

22 412, 413, 415, 416, 417, 418, 419, and 420 of this Act, 

23 and any amendments made by those sections. 


rfrederick on DSK3GLQ082PROD with BILLS
91 

•S 1368 IS

1 SEC. 425. TECHNICAL AND CONFORMING AMENDMENTS. 

2 Section 1370 of the National Flood Insurance Act of 

3 1968 (42 U.S.C. 4121) is amended— 

4 (1) in paragraph (14), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (15), by striking the period at 

7 the end and inserting a semicolon; and 

8 (3) by adding at the end the following: 

9 ‘‘(16) the term ‘Write Your Own company’ 

10 means a company that participates in the Write 

11 Your Own Program; and 

12 ‘‘(17) the term ‘Write Your Own Program’ 

13 means the cooperative undertaking between the in14 surance industry and the Federal Insurance and 

15 Mitigation Administration that allows participating 

16 property and casualty insurance companies to write 

17 and service standard flood insurance policies.’’. 

Æ 


rfrederick on DSK3GLQ082PROD with BILLS