II 

115TH CONGRESS 

1ST SESSION S. 1571 

To reauthorize the National Flood Insurance Program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 17, 2017 

Mr. CRAPO (for himself and Mr. BROWN) 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 ‘‘National Flood Insur5 ance Program Reauthorization Act of 2017’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

Sec. 4. Extension of National Flood Insurance Program. 

TITLE I—RISK MITIGATION 


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Sec. 101. Community preparation for repetitively flooded areas. 

Sec. 102. Wildfires on Federal land. 

Sec. 103. Increased cost of compliance. 

Sec. 104. Predisaster hazard mitigation program authorization. 

Sec. 105. Disclosure of flood risk information upon transfer of property. 

Sec. 106. Multifamily mitigation. 

Sec. 107. Technical assistance. 

TITLE II—FLOOD MAPPING PROGRAM IMPROVEMENTS 

Sec. 201. Reauthorization of mapping program. 

Sec. 202. National Flood Mapping Program improvements. 

TITLE III—PROGRAM IMPROVEMENTS 

Sec. 301. Replacement cost in determining premium rates. 

Sec. 302. Risk transfer options. 

Sec. 303. Participation studies. 

Sec. 304. Study regarding coverage for business interruption. 

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 ‘‘appropriate committees of Con7 gress’’ means— 

8 (A) the Committee on Banking, Housing, 

9 and Urban Affairs of the Senate; and 

10 (B) the Committee on Financial Services 

11 of the House of Representatives; 

12 (3) the term ‘‘Federal entity for lending regula13 tion’’ has the meaning given the term in section 3(a) 

14 of the Flood Disaster Protection Act of 1973 (42 

15 U.S.C. 4003(a)); 

16 (4) the term ‘‘mandatory purchase require17 ment’’ means the requirement under subsections (a) 


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1 and (b) of section 102 of the Flood Disaster Protec2 tion Act of 1973 (42 U.S.C. 4012a) to have flood in3 surance coverage; and 

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

7 et seq.). 

8 SEC. 4. EXTENSION OF NATIONAL FLOOD INSURANCE PRO9 GRAM. 

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

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

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

13 2017’’ and inserting ‘‘September 30, 2023’’. 

14 (b) PROGRAM EXPIRATION.—Section 1319 of the Na15 tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 

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

17 ‘‘September 30, 2023’’. 

18 TITLE I—RISK MITIGATION 

19 SEC. 101. COMMUNITY PREPARATION FOR REPETITIVELY 

20 FLOODED AREAS. 

21 (a) IN GENERAL.—Section 1361 of the National 

22 Flood Insurance Act of 1968 (42 U.S.C. 4102) is amended 

23 by adding at the end the following: 

24 ‘‘(e) COMMUNITY PREPARATION FOR REPETITIVELY

25 FLOODED AREAS.— 


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

2 ‘‘(A) the term ‘covered community’ means 

3 a community— 

4 ‘‘(i) that is participating, under sec5 tion 1315, in the national flood insurance 

6 program; and 

7 ‘‘(ii) within which are located— 

8 ‘‘(I) 50 or more repetitive loss 

9 structures; 

10 ‘‘(II) 5 or more severe repetitive 

11 loss structures for which mitigation 

12 activities meeting the standards for 

13 approval under section 1366(c)(2)(A) 

14 have not been conducted; or 

15 ‘‘(III) a public facility or a pri16 vate nonprofit facility that has re17 ceived assistance for repair, restora18 tion, reconstruction, or replacement 

19 under section 406 of the Robert T. 

20 Stafford Disaster Relief and Emer21 gency Assistance Act (42 U.S.C. 

22 5172) in connection with more than 1 

23 flooding event in the most recent 10- 

24 year period; 


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1 ‘‘(B) the terms ‘private nonprofit facility’ 

2 and ‘public facility’ have the meanings given 

3 those terms in section 102 of the Robert T. 

4 Stafford Disaster Relief and Emergency Assist5 ance Act (42 U.S.C. 5122); 

6 ‘‘(C) the term ‘repetitive loss structure’ 

7 has the meaning given the term in section 

8 1370(a); and 

9 ‘‘(D) the term ‘severe repetitive loss struc10 ture’ has the meaning given the term in section 

11 1366(h). 

12 ‘‘(2) REQUIREMENTS.—The Administrator 

13 shall, by regulation, require any covered commu14 nity— 

15 ‘‘(A) to identify the areas within the cov16 ered community where properties described in 

17 paragraph (1)(A)(ii) or flood-damaged facilities 

18 are located to determine areas repetitively dam19 aged by floods and to assess, with assistance 

20 from the Administrator, the continuing risks to 

21 such areas; 

22 ‘‘(B) to develop a community-specific plan 

23 for mitigating continuing flood risks to such re24 petitively flooded areas and to submit such plan 


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1 and plan updates to the Administrator at ap2 propriate intervals; 

3 ‘‘(C) to implement such plans; and 

4 ‘‘(D) to make such plans, plan updates, 

5 and reports on progress in reducing flood risk 

6 available to the public, subject to section 552a 

7 of title 5, United States Code. 

8 ‘‘(3) INCORPORATION INTO EXISTING PLANS.— 

9 A plan developed pursuant to paragraph (2) may be 

10 incorporated into a mitigation plan developed under 

11 section 1366 and a hazard mitigation plan developed 

12 under section 322 of the Robert T. Stafford Disaster 

13 Relief and Emergency Assistance Act (42 U.S.C. 

14 5165). 

15 ‘‘(4) ASSISTANCE TO A COVERED COMMU16 NITY.— 

17 ‘‘(A) DATA.—To assist a covered commu18 nity in preparation of a plan required under 

19 paragraph (2), the Administrator shall, upon 

20 request, provide a covered community with ap21 propriate data regarding the property addresses 

22 and dates of claims associated with insured 

23 properties within the covered community. 

24 ‘‘(B) MITIGATION GRANTS.—In making a 

25 determination regarding financial assistance 


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1 under the authorities of this title, the Adminis2 trator may consider the extent to which a cov3 ered community has complied with this sub4 section and is working to remedy problems with 

5 addressing repetitively flooded areas. 

6 ‘‘(5) SANCTIONS.— 

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

8 shall, by regulations issued in accordance with 

9 the procedures established under section 553 of 

10 title 5, United States Code, regarding sub11 stantive rules, provide appropriate sanctions for 

12 a covered community that fails to comply with 

13 the requirements under this subsection or to 

14 make sufficient progress in reducing the flood 

15 risks to areas in the covered community that 

16 are repetitively damaged by floods. 

17 ‘‘(B) NOTICE.—Before imposing any sanc18 tion pursuant to this paragraph, the Adminis19 trator shall provide the covered community in20 volved with notice of the noncompliance that 

21 could result in the imposition of sanctions, 

22 which shall include recommendations for actions 

23 to bring the covered community into compliance 

24 with this subsection. 


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1 ‘‘(C) CONSIDERATIONS.—In determining 

2 appropriate sanctions to impose under this 

3 paragraph, the Administrator shall consider the 

4 resources available to the covered community 

5 involved, including Federal funding, the portion 

6 of the covered community that lies within an 

7 area having special flood hazards, and other 

8 factors that make it difficult for the covered 

9 community to conduct mitigation activities for 

10 existing flood-prone structures. 

11 ‘‘(6) REPORTS TO CONGRESS.—Not later than 

12 6 years after the date of enactment of this sub13 section, and not less frequently than every 2 years 

14 thereafter, the Administrator shall submit a report 

15 to Congress regarding the progress of covered com16 munities in implementing plans developed pursuant 

17 to paragraph (2)(B).’’. 

18 (b) REGULATIONS.—Not later than 1 year after the 

19 date of enactment of this Act, the Administrator shall 

20 issue regulations necessary to carry out subsection (e) of 

21 section 1361 of the National Flood Insurance Act of 1968 

22 (42 U.S.C. 4102), as added by subsection (a) of this sec23 tion. 


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1 SEC. 102. WILDFIRES ON FEDERAL LAND. 

2 (a) DEFINITION OF MAJOR DISASTER FOR WILDFIRE

3 ON FEDERAL LAND.— 

4 (1) IN GENERAL.—Section 102 of the Robert T. 

5 Stafford Disaster Relief and Emergency Assistance 

6 Act (42 U.S.C. 5122) is amended— 

7 (A) by redesignating paragraphs (3) 

8 through (12) as paragraphs (4) through (13), 

9 respectively; and 

10 (B) by inserting after paragraph (2) the 

11 following: 

12 ‘‘(3) MAJOR DISASTER FOR WILDFIRE ON FED13 ERAL LAND.—The term ‘major disaster for wildfire 

14 on Federal land’ means any wildfire or wildfires that 

15 in the determination of the President in accordance 

16 with section 802 warrants assistance under section 

17 803 to supplement the efforts and resources of the 

18 Secretary of the Interior or the Secretary of Agri19 culture— 

20 ‘‘(A) on Federal land; or 

21 ‘‘(B) on non-Federal land in accordance 

22 with a fire protection agreement or cooperative 

23 agreement.’’. 

24 (2) CONFORMING AMENDMENT.—Section 

25 251(b)(2)(D)(iii) of the Balanced Budget and Emer26 gency Deficit Control Act of 1985 (2 U.S.C. 


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1 901(b)(2)(D)(iii)) is amended by striking ‘‘section 

2 102(2) of the Robert T. Stafford Disaster Relief and 

3 Emergency Assistance Act (42 U.S.C. 5122(2))’’ 

4 and inserting ‘‘paragraph (2) or (3) of section 102 

5 of the Robert T. Stafford Disaster Relief and Emer6 gency Assistance Act (42 U.S.C. 5122)’’. 

7 (b) DECLARATION OF A MAJOR DISASTER FOR

8 WILDFIRE ON FEDERAL LAND.—The Robert T. Stafford 

9 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

10 5121 et seq.) is amended by adding at the end the fol11 lowing: 

12 ‘‘TITLE VIII—MAJOR DISASTER 

13 FOR WILDFIRE ON FEDERAL 

14 LAND 

15 ‘‘SEC. 801. DEFINITIONS. 

16 ‘‘In this title: 

17 ‘‘(1) FEDERAL LAND.—The term ‘Federal land’ 

18 means— 

19 ‘‘(A) any land under the jurisdiction of the 

20 Secretary of the Interior; and 

21 ‘‘(B) any land under the jurisdiction of the 

22 Secretary of Agriculture, acting through the 

23 Chief of the Forest Service. 


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1 ‘‘(2) FEDERAL LAND MANAGEMENT AGEN2 CIES.—The term ‘Federal land management agen3 cies’ means— 

4 ‘‘(A) the Bureau of Land Management; 

5 ‘‘(B) the National Park Service; 

6 ‘‘(C) the Bureau of Indian Affairs; 

7 ‘‘(D) the United States Fish and Wildlife 

8 Service; and 

9 ‘‘(E) the Forest Service. 

10 ‘‘(3) SECRETARY CONCERNED.—The term ‘Sec11 retary concerned’ means— 

12 ‘‘(A) the Secretary of the Interior, with re13 spect to land under the jurisdiction of the Sec14 retary of the Interior; and 

15 ‘‘(B) the Secretary of Agriculture, with re16 spect to land under the jurisdiction of the Sec17 retary of Agriculture, acting through the Chief 

18 of the Forest Service. 

19 ‘‘(4) WILDFIRE SUPPRESSION OPERATIONS.— 

20 The term ‘wildfire suppression operations’ means the 

21 emergency and unpredictable aspects of wildland 

22 firefighting, including support, response, emergency 

23 stabilization activities, and other emergency manage24 ment activities of wildland firefighting on Federal 

25 land, or on non-Federal land in accordance with a 


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1 fire protection agreement or cooperative agreement, 

2 by the Federal land management agencies covered 

3 by— 

4 ‘‘(A) the wildfire suppression subactivity of 

5 the Wildland Fire Management account of the 

6 Federal land management agencies; or 

7 ‘‘(B) the FLAME Wildfire Suppression 

8 Reserve Fund account of the Federal land man9 agement agencies. 

10 ‘‘SEC. 802. PROCEDURE FOR DECLARATION OF A MAJOR 

11 DISASTER FOR WILDFIRE ON FEDERAL LAND. 

12 ‘‘(a) IN GENERAL.—The Secretary concerned may 

13 submit a request to the President in accordance with the 

14 requirements of this title for a declaration by the Presi15 dent that a major disaster for wildfire on Federal land 

16 exists. 

17 ‘‘(b) REQUIREMENTS.—A request for a declaration 

18 by the President that a major disaster for wildfire on Fed19 eral land exists shall— 

20 ‘‘(1) be made in writing by the Secretary con21 cerned; 

22 ‘‘(2) certify that the amount made available for 

23 the current fiscal year for wildfire suppression oper24 ations of the Federal land management agencies 

25 under the jurisdiction of the Secretary concerned, 


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1 net of any concurrently enacted rescissions of wild2 fire suppression funds, increases the total unobli3 gated balance of the amount available for wildfire 

4 suppression by an amount equal to not less than 70 

5 percent of the average total cost incurred by the 

6 Federal land management agencies per year for 

7 wildfire suppression operations, including the sup8 pression costs in excess of amounts made available, 

9 for the previous 10 fiscal years; 

10 ‘‘(3) certify that, for the current fiscal year, an 

11 amount equal to not less than 30 percent of the av12 erage total cost incurred by the Federal land man13 agement agencies per year for wildfire suppression 

14 operations, including the suppression costs in excess 

15 of amounts made available, for the previous 10 fiscal 

16 years, has been made available for the Federal land 

17 management agencies under the jurisdiction of the 

18 Secretary concerned for the purpose of funding— 

19 ‘‘(A) projects and activities on Federal 

20 land that improve the fire regime of areas that 

21 meet the desired future conditions of the appli22 cable land and resource management plan or 

23 land use plan; or 

24 ‘‘(B) restoration and resiliency projects 

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1 sired future conditions of the applicable land 

2 and resource management plan or land use 

3 plan; 

4 ‘‘(4) certify that, for the current fiscal year— 

5 ‘‘(A) the sum of the amounts certified 

6 under paragraphs (2) and (3) is equal to not 

7 less than 100 percent of the average total cost 

8 incurred by the Federal land management agen9 cies per year for wildfire suppression oper10 ations, including the suppression costs in excess 

11 of amounts made available, for the previous 10 

12 fiscal years; and 

13 ‘‘(B) the amount certified under paragraph 

14 (3) is in addition to and supplements other 

15 amounts made available for the Federal land 

16 management agencies for projects and activities 

17 described in subparagraphs (A) and (B) of 

18 paragraph (3) that equal or exceed the amount 

19 made available for those projects and activities 

20 for fiscal year 2017, subject to the condition 

21 that the amount made available for those 

22 projects and activities for fiscal year 2017 shall 

23 be adjusted annually beginning with fiscal year 

24 2019 to reflect changes during the preceding 

25 fiscal year in the Consumer Price Index for All 


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1 Urban Consumers published by the Bureau of 

2 Labor Statistics of the Department of Labor; 

3 ‘‘(5) certify that the amount available for wild4 fire suppression operations of the Federal land man5 agement agencies under the jurisdiction of the Sec6 retary concerned will be obligated not later than 30 

7 days after the Secretary concerned notifies the 

8 President that amounts for wildfire suppression op9 erations will be exhausted to fund ongoing and an10 ticipated wildfire suppression operations for which 

11 the request is made; and 

12 ‘‘(6) specify the amount required for the fiscal 

13 year for which the request is made to fund wildfire 

14 suppression operations for which the request is 

15 made. 

16 ‘‘(c) DECLARATION.—Based on the request of the 

17 Secretary concerned in accordance with this title, the 

18 President may declare that a major disaster for wildfire 

19 on Federal land exists. 

20 ‘‘(d) LIST OF PROJECTS REPORTING REQUIRE21 MENT.—Not later than November 1 of each fiscal year, 

22 the Secretary of Agriculture and the Secretary of the Inte23 rior shall each submit to the Committee on Agriculture, 

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1 sources of the Senate and the Committee on Agriculture, 

2 the Committee on Appropriations, and the Committee on 

3 Agriculture of the House of Representatives a list of 

4 projects and activities described in subparagraphs (A) and 

5 (B) of subsection (b)(3) to be conducted using amounts 

6 described in subsection (b)(3). 

7 ‘‘SEC. 803. WILDFIRE ON FEDERAL LAND ASSISTANCE. 

8 ‘‘(a) IN GENERAL.—During a period for which a 

9 major disaster for wildfire on Federal land has been de10 clared under section 802, the President may transfer 

11 funds only from the account established by subsection (b) 

12 to the Secretary concerned to conduct wildfire suppression 

13 operations on— 

14 ‘‘(1) Federal land; and 

15 ‘‘(2) non-Federal land in accordance with a fire 

16 protection agreement or cooperative agreement. 

17 ‘‘(b) WILDFIRE SUPPRESSION OPERATIONS DIS18 ASTER ACCOUNT.— 

19 ‘‘(1) IN GENERAL.—There is established a spe20 cial account for the assistance available under a dec21 laration of a major disaster for wildfire on Federal 

22 land under section 802. 

23 ‘‘(2) USE.—The account established by para24 graph (1) may only be used to provide assistance in 

25 accordance with this title. 


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1 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

2 Subject to the limitation described in subsection 

3 (c)(2), there are authorized to be appropriated to 

4 the account established by paragraph (1) such sums 

5 as are necessary to provide assistance in accordance 

6 with this title. 

7 ‘‘(c) LIMITATIONS.— 

8 ‘‘(1) LIMITATION OF TRANSFER.— 

9 ‘‘(A) IN GENERAL.—The assistance avail10 able under a declaration of a major disaster for 

11 wildfire on Federal land under section 802 shall 

12 be limited to the transfer of the amount re13 quested in accordance with section 802(b)(6). 

14 ‘‘(B) WILDFIRE SUPPRESSION OPERATIONS

15 DISASTER ACCOUNT.—The assistance available 

16 for transfer under this section shall not exceed 

17 the amount contained in the account established 

18 by subsection (b)(1). 

19 ‘‘(2) MAXIMUM TRANSFER AMOUNT LIMITA20 TION.—If a bill or joint resolution making appro21 priations for a fiscal year is enacted that specifies an 

22 amount for wildfire suppression operations in the 

23 Wildland Fire Management accounts of the Depart24 ment of Agriculture or the Department of the Inte25 rior, the total amount of assistance appropriated to 


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1 and transferred from the account established by sub2 section (b)(1) and in accordance with a declaration 

3 of a major disaster for wildfire on Federal land 

4 under section 802 to those Wildland Fire Manage5 ment accounts for that fiscal year shall not exceed 

6 $1,647,000,000. 

7 ‘‘(3) TRANSFER OF FUNDS.—A transfer under 

8 this section shall be made from the wildfire suppres9 sion operations account to the wildfire suppression 

10 subactivity of the Wildland Fire Management ac11 counts, to remain available until expended. 

12 ‘‘(d) PROHIBITION OF OTHER TRANSFERS.—Except 

13 as provided in this section, no amounts may be transferred 

14 to or from the account established by subsection (b)(1) 

15 to or from any other fund or account. 

16 ‘‘(e) REIMBURSEMENT FOR WILDFIRE SUPPRESSION

17 OPERATIONS ON NON-FEDERAL LAND.—If amounts 

18 transferred under this section are used to conduct wildfire 

19 suppression operations on non-Federal land, the Secretary 

20 concerned shall— 

21 ‘‘(1) secure reimbursement for the cost of those 

22 wildfire suppression operations; and 

23 ‘‘(2) transfer the amounts received under para24 graph (1) to the account established by subsection 

25 (b)(1). 


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1 ‘‘(f) ANNUAL ACCOUNTING AND REPORTING RE2 QUIREMENTS.— 

3 ‘‘(1) IN GENERAL.—Not later than 90 days 

4 after the last day of each fiscal year for which as5 sistance is received under this section, the Secretary 

6 concerned shall submit to the committees described 

7 in paragraph (2), and make available to the public, 

8 a report that describes the following: 

9 ‘‘(A) The risk-based factors that influenced 

10 management decisions regarding wildfire sup11 pression operations of the Federal land man12 agement agencies under the jurisdiction of the 

13 Secretary concerned. 

14 ‘‘(B) Specific discussion of a statistically 

15 significant sample of large fires, in which each 

16 fire is analyzed for— 

17 ‘‘(i) cost drivers; 

18 ‘‘(ii) the effectiveness of risk manage19 ment techniques; 

20 ‘‘(iii) resulting positive or negative im21 pacts of fire on the landscape; 

22 ‘‘(iv) the impact of investments in 

23 preparedness; 

24 ‘‘(v) suggested corrective actions; and 


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1 ‘‘(vi) such other factors as the Sec2 retary concerned considers appropriate. 

3 ‘‘(C) Total expenditures for wildfire sup4 pression operations of the Federal land man5 agement agencies under the jurisdiction of the 

6 Secretary concerned, including a description of 

7 the expenditures by— 

8 ‘‘(i) fire size; 

9 ‘‘(ii) cost; 

10 ‘‘(iii) regional location; and 

11 ‘‘(iv) such other factors as the Sec12 retary concerned considers appropriate. 

13 ‘‘(D) Lessons learned. 

14 ‘‘(E) Such other matters as the Secretary 

15 concerned considers appropriate. 

16 ‘‘(2) COMMITTEES DESCRIBED.—The commit17 tees referred to in paragraph (1) are— 

18 ‘‘(A) of the Senate— 

19 ‘‘(i) the Committee on Agriculture, 

20 Nutrition, and Forestry; 

21 ‘‘(ii) the Committee on Appropria22 tions; 

23 ‘‘(iii) the Committee on the Budget; 

24 ‘‘(iv) the Committee on Energy and 

25 Natural Resources; 


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1 ‘‘(v) the Committee on Homeland Se2 curity and Governmental Affairs; and 

3 ‘‘(vi) the Committee on Indian Af4 fairs; and 

5 ‘‘(B) of the House of Representatives— 

6 ‘‘(i) the Committee on Agriculture; 

7 ‘‘(ii) the Committee on Appropria8 tions; 

9 ‘‘(iii) the Committee on the Budget; 

10 ‘‘(iv) the Committee on Natural Re11 sources; and 

12 ‘‘(v) the Committee on Transportation 

13 and Infrastructure. 

14 ‘‘(g) SAVINGS PROVISION.—Except as provided in 

15 subsections (c) and (d), nothing in this title limits the Sec16 retary of the Interior, the Secretary of Agriculture, an In17 dian tribe, or a State from receiving assistance through 

18 a declaration made by the President under this Act if the 

19 criteria for that declaration are satisfied.’’. 

20 (c) PROHIBITION ON TRANSFERS.—No amounts may 

21 be transferred to or from the wildfire suppression sub22 activity of the Wildland Fire Management account or the 

23 FLAME Wildfire Suppression Reserve Fund account of 

24 the Federal land management agencies, as defined in sec25 tion 801 of the Robert T. Stafford Disaster Relief and 


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1 Emergency Assistance Act, as added by subsection (b), to 

2 or from any other account or subactivity of those Federal 

3 land management agencies that is not used to cover the 

4 cost of wildfire suppression operations. 

5 (d) EFFECTIVE DATE.—This section and the amend6 ments made by this section shall take effect on October 

7 1, 2017. 

8 SEC. 103. INCREASED COST OF COMPLIANCE. 

9 (a) IN GENERAL.—Section 1304(b) of the National 

10 Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is 

11 amended— 

12 (1) in paragraph (4), by redesignating subpara13 graphs (A) through (D) as clauses (i) through (iv), 

14 respectively, and adjusting the margins accordingly; 

15 (2) by redesignating paragraphs (1) through 

16 (4) as subparagraphs (A) through (D), respectively, 

17 and adjusting the margins accordingly; 

18 (3) in the matter preceding subparagraph (A), 

19 as so redesignated, by striking ‘‘The national’’ and 

20 inserting the following: 

21 ‘‘(1) IN GENERAL.—The national’’; 

22 (4) in paragraph (1), as so designated— 

23 (A) in subparagraph (A), as so redesig24 nated, by inserting ‘‘, without regard to whether 


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1 the property is in an area having special flood 

2 hazards’’ after ‘‘loss structures’’; 

3 (B) in subparagraph (C), as so redesig4 nated, by striking the period at the end and in5 serting a semicolon; 

6 (C) in subparagraph (D), as so redesig7 nated— 

8 (i) in the matter preceding clause (i), 

9 as so redesignated, by inserting ‘‘subject to 

10 paragraph (2),’’ before ‘‘properties for 

11 which’’; and 

12 (ii) in clause (iv), as so redesignated, 

13 by striking the period at the end and in14 serting ‘‘; and’’; and 

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

16 ‘‘(E) a property outside an area having 

17 special flood hazards if the community, under 

18 section 1361, has established land use and con19 trol measures for the area in which the property 

20 is located.’’; and 

21 (5) by striking the flush text following para22 graph (1)(E), as added by paragraph (4)(D) of this 

23 subsection, and inserting the following: 

24 ‘‘(2) USE OF FUNDS FOR MITIGATION

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1 holder to use insurance purchased under this sub2 section for any eligible project costs under a pro3 gram described in clause (i), (ii), or (iii) of para4 graph (1)(D) of an acquisition, demolition, elevation, 

5 relocation, or small structural project funded under 

6 that program, including— 

7 ‘‘(A) asbestos remediation; 

8 ‘‘(B) the demolition of a driveway or side9 walk when a structure is acquired; and 

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

11 device that is necessary for a homeowner or oc12 cupant with a physical limitation or disability to 

13 safely access a home that has been elevated. 

14 ‘‘(3) SURCHARGES.— 

15 ‘‘(A) PRIMARY COVERAGE.—The Adminis16 trator shall impose a surcharge on each insured 

17 of an amount per policy that the Administrator 

18 determines is appropriate in order to provide 

19 cost of compliance coverage in accordance with 

20 paragraph (4)(A). 

21 ‘‘(B) ENHANCED COVERAGE.—For each 

22 policy for flood insurance made available under 

23 this title with respect to which enhanced cov24 erage is provided under paragraph (4)(B), the 

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1 dition to the surcharge imposed under subpara2 graph (A), in an amount that the Administrator 

3 determines appropriate. 

4 ‘‘(4) AMOUNT OF COVERAGE.— 

5 ‘‘(A) PRIMARY COVERAGE.—Each policy 

6 for flood insurance coverage made available 

7 under this title shall provide coverage under 

8 this subsection having an aggregate liability for 

9 any single property of $60,000. 

10 ‘‘(B) ENHANCED COVERAGE.—Notwith11 standing the limitation under subparagraph 

12 (A), the Administrator shall provide, upon re13 quest by a policyholder, enhanced coverage 

14 under this subsection having an aggregate li15 ability for any single property in an amount 

16 that is not more than $100,000. 

17 ‘‘(5) TREATMENT OF COVERAGE LIMITS.—The 

18 purchase of insurance under this subsection with re19 spect to a property shall not be counted for the pur20 poses of any limitation on coverage with respect to 

21 that property under section 1306(b).’’. 

22 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

23 Not later than 1 year after the date of enactment of this 

24 Act, the Administrator shall amend the Standard Flood 

25 Insurance Policy set forth in appendix A to part 61 of 


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1 title 44, Code of Federal Regulations, to conform the item 

2 relating to ‘‘Coverage D—Increased Cost of Compliance’’ 

3 to the coverage limitations described in subparagraphs (A) 

4 and (B) of section 1304(b)(4) of the National Flood In5 surance Act of 1968 (42 U.S.C. 4011(b)(4)), as added by 

6 subsection (a)(5) of this section. 

7 SEC. 104. PREDISASTER HAZARD MITIGATION PROGRAM 

8 AUTHORIZATION. 

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

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

11 appropriated $200,000,000 to carry out the predisaster 

12 hazard mitigation program under section 203 of the Rob13 ert T. Stafford Disaster Assistance and Emergency Relief 

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

15 SEC. 105. DISCLOSURE OF FLOOD RISK INFORMATION 

16 UPON TRANSFER OF PROPERTY. 

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

18 Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amend19 ed by adding at the end the following: 

20 ‘‘SEC. 1326. DISCLOSURE OF FLOOD RISK INFORMATION 

21 UPON TRANSFER OF PROPERTY. 

22 ‘‘(a) IN GENERAL.—After September 30, 2022, no 

23 new flood insurance coverage may be provided under this 

24 title for any real property unless an appropriate public 

25 body has imposed, by statute or regulation, a duty on any 


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1 seller or lessor of improved real estate to provide to any 

2 purchaser or lessee (with respect to a lease for a term that 

3 is not shorter than 30 days) of the property a property 

4 flood hazard disclosure that the Administrator has deter5 mined meets the requirements of subsection (b). 

6 ‘‘(b) DISCLOSURE REQUIREMENTS.— 

7 ‘‘(1) REQUIREMENTS FOR SELLERS.—A prop8 erty flood hazard disclosure for the sale of a prop9 erty shall meet the requirements of this subsection 

10 only if the disclosure— 

11 ‘‘(A) is made in writing; 

12 ‘‘(B) discloses any actual knowledge of the 

13 seller of any— 

14 ‘‘(i) prior physical damage caused by 

15 flood to a structure located on the prop16 erty; 

17 ‘‘(ii) prior insurance claim for a loss 

18 covered under the national flood insurance 

19 program or private flood insurance with re20 spect to the property; 

21 ‘‘(iii) previous notification regarding 

22 the designation of the property as a repet23 itive loss structure or severe repetitive loss 

24 structure (as defined in section 1366(h)); 

25 and 


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1 ‘‘(iv) Federal legal obligation to obtain 

2 and maintain flood insurance running with 

3 the property; and 

4 ‘‘(C) is delivered by, or on behalf of, the 

5 seller to the purchaser before the purchaser be6 comes obligated under any contract to purchase 

7 the property. 

8 ‘‘(2) REQUIREMENTS FOR LESSORS.—A prop9 erty flood hazard disclosure for a rental property 

10 with a lease for a term that is not shorter than 30 

11 days shall meet the requirements of this subsection 

12 only if the disclosure— 

13 ‘‘(A) is made in writing; 

14 ‘‘(B) discloses any actual knowledge of the 

15 lessor— 

16 ‘‘(i) of any Federal legal obligation to 

17 obtain and maintain flood insurance run18 ning with the property; 

19 ‘‘(ii) regarding any prior physical 

20 damage caused by flood with respect to the 

21 unit being leased; and 

22 ‘‘(iii) of the availability of coverage 

23 under this title for contents located in a 

24 structure on the property; and 


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1 ‘‘(C) is delivered by, or on behalf of, the 

2 lessor to the lessee before the lessee becomes 

3 obligated under any contract to lease the prop4 erty. 

5 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

6 this section may be construed as preventing a State 

7 from adopting disclosure requirements in addition to 

8 the requirements of this section.’’. 

9 (b) AVAILABILITY OF FLOOD INSURANCE COV10 ERAGE.—Section 1305(c) of the National Flood Insurance 

11 Act of 1968 (42 U.S.C. 4012(c)) is amended— 

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

13 end and inserting a semicolon; 

14 (2) in paragraph (2), by striking the period at 

15 the end and inserting ‘‘; and’’; and 

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

17 ‘‘(3) given satisfactory assurance that, by Octo18 ber 1, 2022, property flood hazard disclosure re19 quirements will have been adopted for the area (or 

20 subdivision) that meet the requirements of section 

21 1326.’’. 

22 SEC. 106. MULTIFAMILY MITIGATION. 

23 (a) IN GENERAL.—Section 1361(d)(1) of the Na24 tional Flood Insurance Act of 1968 (42 U.S.C. 

25 4102(d)(1)) is amended, in the matter preceding subparaVerDate Sep 11 2014 23:37 Jul 24, 2017 Jkt 069200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1571.IS S1571

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1 graph (A), by inserting ‘‘(including multifamily buildings 

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

3 (b) RISK PREMIUM RATE REDUCTION.—Section 

4 1308(k) of the National Flood Insurance Act of 1968 (42 

5 U.S.C. 4015(k)) is amended by striking ‘‘the Adminis6 trator shall’’ and all that follows through the period at 

7 the end and inserting the following: ‘‘the Administrator 

8 shall— 

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

10 any mitigation method identified by the Adminis11 trator in the guidelines issued under section 

12 1361(d); and 

13 ‘‘(2) notwithstanding any other provision of 

14 law, charge a risk premium rate that accurately re15 flects the reduction in flood risk to a building, in16 cluding a multifamily building in an urban area, re17 sulting from the use of an alternative method of 

18 mitigation established by the Administrator under 

19 section 1361(d)(1).’’. 

20 (c) LAND USE CONTROLS.—Section 1315(a) of the 

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

22 4022(a)) is amended by adding at the end the following: 

23 ‘‘(3) LAND USE CONTROLS FOR CERTAIN MUL24 TIFAMILY BUILDINGS IN URBAN AREAS.— 


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

2 term ‘covered area’ means an area that— 

3 ‘‘(i) is an urban area; and 

4 ‘‘(ii) has been identified as having 

5 special flood hazards. 

6 ‘‘(B) ADOPTION OF LAND USE CON7 TROLS.—Notwithstanding any other provision 

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

9 may require an appropriate public body, with 

10 respect to a covered area that is seeking to se11 cure flood insurance coverage under this title, 

12 to adopt land use and control measures for the 

13 repair, restoration, or substantial improvement 

14 of any mid- or high-rise multifamily building 

15 that is located in the covered area. 

16 ‘‘(C) COMMUNITY STRATEGY.—With re17 spect to a covered area described in subpara18 graph (B), the Administrator shall encourage 

19 the covered area to develop, and assist the cov20 ered area in developing, a comprehensive strat21 egy that— 

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

23 high-rise multifamily buildings in the cov24 ered area that— 


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

2 substantially improved; and 

3 ‘‘(II) cannot be elevated; 

4 ‘‘(ii) identifies technical mitigation ac5 tivities that may be applied to the build6 ings described in clause (i), including con7 siderations for mechanical, electrical, and 

8 utility components, that will protect life 

9 and property; and 

10 ‘‘(iii) documents that the covered area 

11 has established procedures for— 

12 ‘‘(I) the implementation of per13 formance standards; 

14 ‘‘(II) requiring evacuation plans; 

15 and 

16 ‘‘(III) developing a maintenance 

17 strategy for any mitigation activity 

18 that is applied under clause (ii). 

19 ‘‘(D) PARTIAL MITIGATION GUIDELINES.— 

20 The Administrator shall establish guidelines for 

21 performance standards that shall— 

22 ‘‘(i) allow for a combination of partial 

23 mitigation activities, other than elevation, 

24 for areas (other than residential areas) in 


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1 a covered area described in subparagraph 

2 (B); and 

3 ‘‘(ii) be applied to mid- and high-rise 

4 multifamily buildings in the areas de5 scribed in clause (i).’’. 

6 (d) CALCULATION OF RISK PREMIUM RATES.—Sec7 tion 1308 of the National Flood Insurance Act of 1968 

8 (42 U.S.C. 4015) is amended by adding at the end the 

9 following: 

10 ‘‘(n) CONSIDERATION OF PARTIAL MITIGATION

11 METHODS.—Notwithstanding any other provision of law, 

12 with respect to a chargeable premium rate prescribed for 

13 a building described in section 1315(a)(3)(B), the Admin14 istrator shall ensure that the chargeable premium rate 

15 properly reflects the reduction in flood risk after adopting 

16 and implementing the land use and control measures de17 scribed in that section, if applicable.’’. 

18 SEC. 107. TECHNICAL ASSISTANCE. 

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

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

21 end the following: 

22 ‘‘(5) REGIONAL COORDINATOR.— 

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

24 shall appoint a regional coordinator in each re25 gion served by a Regional Office (as defined in 


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1 section 501 of the Homeland Security Act of 

2 2002 (6 U.S.C. 311)) to provide technical as3 sistance to small communities to enable those 

4 communities to effectively participate in, and 

5 benefit from, the community rating system pro6 gram. 

7 ‘‘(B) AUTHORIZATION OF APPROPRIA8 TIONS.—There are authorized to be appro9 priated such sums as may be necessary to carry 

10 out this paragraph, which shall remain available 

11 until expended.’’. 

12 TITLE II—FLOOD MAPPING 

13 PROGRAM IMPROVEMENTS 

14 SEC. 201. REAUTHORIZATION OF MAPPING PROGRAM. 

15 Section 100216(f) of the Biggert-Waters Flood In16 surance Reform Act of 2012 (42 U.S.C. 4101b(f)) is 

17 amended by striking ‘‘2017’’ and inserting ‘‘2023’’. 

18 SEC. 202. NATIONAL FLOOD MAPPING PROGRAM IMPROVE19 MENTS. 

20 Section 100216 of the Biggert-Waters Flood Insur21 ance Reform Act of 2012 (42 U.S.C. 4101b) is amended— 

22 (1) in subsection (b)— 

23 (A) in paragraph (1)— 


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1 (i) by redesignating subparagraphs 

2 (B) and (C) as subparagraphs (C) and 

3 (D), respectively; 

4 (ii) by inserting after subparagraph 

5 (A) the following: 

6 ‘‘(B) as soon as practicable— 

7 ‘‘(i) modernize the flood mapping in8 ventory for communities for which the Na9 tional Flood Insurance Program rate maps 

10 have not been modernized; and 

11 ‘‘(ii) in coordination with commu12 nities, utilize the digital display environ13 ment established under subsection 

14 (f)(1)(A) to store and disseminate any 

15 flood hazard data, models, and maps gen16 erated under clause (i) while ensuring that 

17 the flood mapping inventory described in 

18 that clause may be printed in order to 

19 carry out— 

20 ‘‘(I) floodplain management pro21 grams under the National Flood In22 surance Act of 1968 (42 U.S.C. 4001 

23 et seq.); and 

24 ‘‘(II) other purposes of the Na25 tional Flood Insurance Program;’’; 


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1 (iii) in subparagraph (C), as so redes2 ignated, by striking ‘‘and’’ at the end; 

3 (iv) in subparagraph (D), as so redes4 ignated— 

5 (I) by inserting ‘‘, including the 

6 most current and most appropriate re7 mote sensing or other geospatial map8 ping technology’’ after ‘‘available’’; 

9 and 

10 (II) by striking the period at the 

11 end and inserting ‘‘; and’’; and 

12 (v) by adding at the end the following: 

13 ‘‘(E) when appropriate, partner with other 

14 Federal agencies, States, communities, and pri15 vate entities in order to meet the objectives of 

16 the program.’’; and 

17 (B) in paragraph (3)(C), by inserting 

18 ‘‘urban flooding,’’ after ‘‘changing lake levels,’’; 

19 (2) by redesignating subsection (f), as amended 

20 by section 201, as subsection (h); and 

21 (3) by inserting after subsection (e) the fol22 lowing: 

23 ‘‘(f) DIGITAL DISPLAY ENVIRONMENT AND BUILD24 ING-SPECIFIC FLOOD HAZARD AND RISK INFORMA25 TION.— 


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1 ‘‘(1) ESTABLISHMENT.— 

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

3 after the date of enactment of the National 

4 Flood Insurance Program Reauthorization Act 

5 of 2017, the Administrator, in consultation with 

6 the Technical Mapping Advisory Council, shall 

7 establish a dynamic, database-derived digital 

8 display environment for flood hazard and risk 

9 data, models, maps, and assessments. 

10 ‘‘(B) CONSULTATION WITH STATES AND

11 COMMUNITIES.—In designing and constructing 

12 the digital display environment under subpara13 graph (A), the Administrator shall— 

14 ‘‘(i) leverage and partner with States 

15 and communities that have successfully im16 plemented the same approach; and 

17 ‘‘(ii) consider adopting the techniques 

18 and technologies used by the States and 

19 communities described in clause (i) and ap20 plying those techniques and technologies 

21 nationwide. 

22 ‘‘(2) DIGITAL DISPLAY SYSTEM.— 

23 ‘‘(A) IN GENERAL.—In carrying out para24 graph (1), the Administrator, in consultation 

25 with the Technical Mapping Advisory Council, 


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1 shall establish a national digital display system 

2 that shall— 

3 ‘‘(i) be prompted through dynamic 

4 querying of a spatial, relational flood haz5 ard and risk database; 

6 ‘‘(ii) as permissible under law, be 

7 made available to the public; 

8 ‘‘(iii) to the extent feasible, and where 

9 sufficient data is available, provide infor10 mation, with respect to individual struc11 tures, regarding— 

12 ‘‘(I) flood hazard and risk assess13 ment determinations; 

14 ‘‘(II) flood insurance; and 

15 ‘‘(III) flood risk mitigation ef16 forts; 

17 ‘‘(iv) be constructed in a manner that 

18 facilitates coordination with digital display 

19 systems that— 

20 ‘‘(I) have been developed by 

21 State and community partners; and 

22 ‘‘(II) the Administrator finds are 

23 acceptable; 

24 ‘‘(v) include the capability to print 

25 physical copies of maps; and 


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1 ‘‘(vi) where feasible, allow for the 

2 maintenance and storage of elevation cer3 tificates. 

4 ‘‘(B) PRIVACY REQUIREMENTS.—The Ad5 ministrator may not disseminate the database 

6 described in subparagraph (A)(i), including any 

7 data used to create that database, to the public 

8 or to a private company in a manner that vio9 lates section 552a of title 5, United States 

10 Code, or any regulation implementing that sec11 tion. 

12 ‘‘(3) DATA PROCUREMENT.—The Administrator 

13 shall consider methods to obtain any data necessary 

14 to establish the digital display environment described 

15 in paragraph (1), including— 

16 ‘‘(A) requiring a community that is partici17 pating in the National Flood Insurance Pro18 gram to supply information, including building 

19 footprints and cadastral and elevation data, for 

20 each structure— 

21 ‘‘(i) with respect to which the commu22 nity possesses that information; and 

23 ‘‘(ii) that obtains a construction or 

24 other development permit within— 


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1 ‘‘(I) a special flood hazard area; 

2 or 

3 ‘‘(II) an advisory special flood 

4 hazard area adopted by the commu5 nity; 

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

7 determined by the Administrator; 

8 ‘‘(C) partnering, contracting, or entering 

9 into agreements with other Federal, State, 

10 local, and private stakeholders to the greatest 

11 extent possible to obtain and share existing 

12 data that meets or exceeds the standards deter13 mined by the Administrator under subpara14 graph (B); and 

15 ‘‘(D) contracting with private companies to 

16 obtain new data collections, such as building 

17 footprints, cadastral data, and elevation certifi18 cates, if that data may be included in the envi19 ronment established under paragraph (1). 

20 ‘‘(4) LETTERS OF MAP CHANGE.—In coordina21 tion with States and communities that have success22 fully implemented a dynamic, database-derived dig23 ital display environment for flood hazard risk pro24 duction and dissemination, the Administrator shall 

25 issue guidelines for the adoption and integration into 


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1 the National Flood Mapping Program of remote 

2 sensing or other geospatial mapping technology3 based letter of map amendment approaches. 

4 ‘‘(g) ANNUAL REPORT.—The Administrator shall 

5 submit to the Committee on Banking, Housing, and 

6 Urban Affairs of the Senate and the Committee on Finan7 cial Services of the House of Representatives an annual 

8 progress report regarding the mapping program under 

9 this section, including the digital display and structure10 specific information required under subsection (f), which 

11 shall include recommendations to reduce the cost and im12 prove the implementation of that subsection.’’. 

13 TITLE III—PROGRAM 

14 IMPROVEMENTS 

15 SEC. 301. REPLACEMENT COST IN DETERMINING PREMIUM 

16 RATES. 

17 (a) STUDY OF RISK RATING REDESIGN FLOOD IN18 SURANCE PREMIUM RATING OPTIONS; REPORT.— 

19 (1) STUDY.—The Administrator shall conduct a 

20 study to— 

21 (A) evaluate best practices in the insurance 

22 industry for risk rating and classification, in23 cluding practices that consider replacement cost 

24 value in premium rate estimations; and 


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1 (B) with respect to the estimates of risk 

2 premium rates for flood insurance made by the 

3 Administrator under section 1307(a)(1) of the 

4 National Flood Insurance Act of 1968 (42 

5 U.S.C. 4014(a)(1))— 

6 (i) assess options, methods, and strat7 egies for including replacement cost value 

8 in the estimates; 

9 (ii) provide recommendations for in10 cluding replacement cost value in the esti11 mates; 

12 (iii) identify an appropriate method13 ology to incorporate replacement cost value 

14 into the estimates; and 

15 (iv) develop a feasible implementation 

16 plan and projected timeline for including 

17 replacement cost value in the estimates. 

18 (2) REPORT.— 

19 (A) REQUIREMENT.—Not later than 1 

20 year after the date of enactment of this Act, the 

21 Administrator shall submit to the appropriate 

22 committees of Congress a report that contains 

23 the results and conclusions of the study con24 ducted under paragraph (1) (referred to in this 

25 paragraph as ‘‘the study’’). 


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1 (B) CONTENTS.—The report submitted 

2 under subparagraph (A) shall include— 

3 (i) an analysis of the recommenda4 tions resulting from the study and any po5 tential impacts that those recommenda6 tions would have on the National Flood In7 surance Program, including cost consider8 ations; 

9 (ii) a description of any actions taken 

10 by the Administrator to implement the rec11 ommendations made by the study; 

12 (iii) a description of any recommenda13 tions made by the study that, as of the 

14 date on which the Administrator submits 

15 the report, have been deferred or not acted 

16 upon; and 

17 (iv) a statement explaining the rea18 sons for any deferral or inaction described 

19 in clause (iii). 

20 (b) USE OF REPLACEMENT COST VALUE IN PRE21 MIUM RATES; IMPLEMENTATION.— 

22 (1) ESTIMATED RATES.—Section 1307(a)(1) of 

23 the National Flood Insurance Act of 1968 (42 

24 U.S.C. 4014(a)(1)) is amended, in the matter pre25 ceding subparagraph (A), by inserting after ‘‘flood 


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1 insurance’’ the following: ‘‘, which shall incorporate 

2 replacement cost value, and’’. 

3 (2) CHARGEABLE RATES.—Section 1308(b) of 

4 the National Flood Insurance Act of 1968 (42 

5 U.S.C. 4015(b)) is amended, in the matter preceding 

6 paragraph (1), by inserting after ‘‘Such rates’’ the 

7 following: ‘‘shall incorporate replacement cost value 

8 and’’. 

9 (3) PHASE-IN.— 

10 (A) IN GENERAL.—During the 3-year pe11 riod beginning on the date that is 1 year after 

12 the date of enactment of this Act, the Adminis13 trator may gradually phase in the amendments 

14 made by paragraphs (1) and (2) with respect to 

15 flood insurance coverage made available under 

16 the National Flood Insurance Act of 1968 (42 

17 U.S.C. 4001 et seq.) for properties located in 

18 various geographic regions in the United States 

19 as sufficient information for the implementation 

20 of those amendments becomes available. 

21 (B) DEADLINE.—The Administrator shall 

22 ensure that, as of the effective date described in 

23 paragraph (4), the amendments made by para24 graphs (1) and (2) are fully implemented to 

25 apply to all flood insurance coverage made 


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1 available under the National Flood Insurance 

2 Act of 1968 (42 U.S.C. 4001 et seq.). 

3 (4) EFFECTIVE DATE.—The amendments made 

4 by paragraphs (1) and (2) shall— 

5 (A) take effect on the date that is 4 years 

6 after the date of enactment of this Act; and 

7 (B) apply to the establishment of risk pre8 mium and chargeable premium rates by the Ad9 ministrator on and after the date described in 

10 subparagraph (A). 

11 SEC. 302. RISK TRANSFER OPTIONS. 

12 Section 1345(e) of the National Flood Insurance Act 

13 of 1968 (42 U.S.C. 4081(e)) is amended— 

14 (1) by striking ‘‘The Administrator’’ and insert15 ing the following: 

16 ‘‘(1) IN GENERAL.—The Administrator’’; and 

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

18 ‘‘(2) FORMS OF TRANSFER.—If the Adminis19 trator secures reinsurance under paragraph (1), the 

20 Administrator may consider any form of risk trans21 fer, including traditional reinsurance, catastrophe 

22 bonds, collateralized reinsurance, resilience bonds, 

23 and other insurance-linked securities, in order to— 

24 ‘‘(A) maximize pricing competition and the 

25 diversity of sources of capital; and 


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1 ‘‘(B) secure the best value for the flood in2 surance program.’’. 

3 SEC. 303. PARTICIPATION STUDIES. 

4 (a) FEDERAL ENTITIES FOR LENDING REGULA5 TION.— 

6 (1) IN GENERAL.—The Federal entities for 

7 lending regulation shall conduct an annual study re8 garding the rate at which persons who are subject 

9 to the mandatory purchase requirement are com10 plying with that requirement. 

11 (2) SUBMISSION TO CONGRESS.—The Federal 

12 entities for lending regulation shall submit the result 

13 of each study conducted under paragraph (1) to the 

14 appropriate committees of Congress. 

15 (b) FEMA.— 

16 (1) IN GENERAL.—The Administrator shall con17 duct an annual study regarding the rate at which in18 dividuals who live in areas that have not been identi19 fied, under the National Flood Insurance Act of 

20 1968 (42 U.S.C. 4001 et seq.) or the Flood Disaster 

21 Protection Act of 1973 (42 U.S.C. 4002 et seq.), as 

22 having a special flood hazard participate in, or re23 ceive financial assistance under, the National Flood 

24 Insurance Program. 


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1 (2) SUBMISSION TO CONGRESS.—The Adminis2 trator shall submit the result of each study con3 ducted under paragraph (1) to the appropriate com4 mittees of Congress. 

5 SEC. 304. STUDY REGARDING COVERAGE FOR BUSINESS 

6 INTERRUPTION. 

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

8 a study on the feasibility and soundness of offering cov9 erage for interruption business losses caused by a flood 

10 under the National Flood Insurance Program (referred to 

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

12 (b) CONTENTS.—In conducting the study under sub13 section (a), the Administrator shall, at a minimum— 

14 (1) evaluate insurance industry best practices 

15 for offering business interruption coverage, including 

16 the types of coverage provided and the utilization 

17 rate; 

18 (2) estimate the potential risk premium rates 

19 for business interruption coverage based on the flood 

20 risk reflected in the flood insurance rate map or 

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

22 (3) analyze the operational and administrative 

23 expenses associated with providing business inter24 ruption coverage and adjusting claims; 


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1 (4) identify potential obstacles that may prevent 

2 the Administrator from offering business interrup3 tion coverage; 

4 (5) evaluate the benefits of providing business 

5 interruption coverage; 

6 (6) analyze any potential impacts on the finan7 cial position of the National Flood Insurance Pro8 gram; and 

9 (7) develop a feasibility implementation plan 

10 and projected timelines for offering business inter11 ruption coverage. 

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

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

14 and utilize the personnel and services of any other Federal 

15 agency, and appoint and fix the compensation of tem16 porary personnel without regard to the provisions of title 

17 5, United States Code, governing appointments in the 

18 competitive service, or employ experts and consultants in 

19 accordance with the provisions of section 3109 of such 

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

21 subchapter III of chapter 53 of such title relating to classi22 fication and General Schedule pay rates. 

23 (d) DEADLINE.—The Administrator shall complete 

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


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

2 of enactment of this Act. 

Æ 


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