II 

Calendar No. 250 

112TH CONGRESS 

1ST SESSION S. 1940 

[Report No. 112–98] 

To amend the National Flood Insurance Act of 1968, to restore the financial 

solvency of the flood insurance fund, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 5, 2011 

Mr. JOHNSON of South Dakota, from the Committee on Banking, Housing, 

and Urban Affairs, reported the following original bill; which was read 

twice and placed on the calendar 

A BILL 

To amend the National Flood Insurance Act of 1968, to 

restore the financial solvency of the flood insurance fund, 

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. TABLE OF CONTENTS. 

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

Sec. 1. Table of contents. 

TITLE I—FLOOD INSURANCE REFORM AND MODERNIZATION 

Sec. 101. Short title. 

Sec. 102. Findings. 

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Sec. 103. Definitions. 

Sec. 104. Extension of National Flood Insurance Program. 

Sec. 105. Availability of insurance for multifamily properties. 

Sec. 106. Reform of premium rate structure. 

Sec. 107. Mandatory coverage areas. 

Sec. 108. Premium adjustment. 

Sec. 109. State chartered financial institutions. 

Sec. 110. Enforcement. 

Sec. 111. Escrow of flood insurance payments. 

Sec. 112. Minimum deductibles for claims under the National Flood Insurance 

Program. 

Sec. 113. Considerations in determining chargeable premium rates. 

Sec. 114. Reserve fund. 

Sec. 115. Repayment plan for borrowing authority. 

Sec. 116. Payment of condominium claims. 

Sec. 117. Technical mapping advisory council. 

Sec. 118. National flood mapping program. 

Sec. 119. Scope of appeals. 

Sec. 120. Scientific Resolution Panel. 

Sec. 121. Removal of limitation on State contributions for updating flood maps. 

Sec. 122. Coordination. 

Sec. 123. Interagency coordination study. 

Sec. 124. Nonmandatory participation. 

Sec. 125. Notice of flood insurance availability under RESPA. 

Sec. 126. Participation in State disaster claims mediation programs. 

Sec. 127. Additional authority of FEMA to collect information on claims payments. 

Sec. 128. Oversight and expense reimbursements of insurance companies. 

Sec. 129. Mitigation. 

Sec. 130. Flood Protection Structure Accreditation Task Force. 

Sec. 131. Flood in progress determinations. 

Sec. 132. Clarification of residential and commercial coverage limits. 

Sec. 133. Local data requirement. 

Sec. 134. Eligibility for flood insurance for persons residing in communities 

that have made adequate progress on the construction, reconstruction, or improvement of a flood protection system. 

Sec. 135. Studies and reports. 

Sec. 136. Reinsurance. 

Sec. 137. GAO study on business interruption and additional living expenses 

coverages. 

Sec. 138. Policy disclosures. 

Sec. 139. Report on inclusion of building codes in floodplain management criteria. 

Sec. 140. Study of participation and affordability for certain policyholders. 

Sec. 141. Study and report concerning the participation of Indian tribes and 

members of Indian tribes in the National Flood Insurance Program. 

Sec. 142. Technical corrections. 

TITLE II—COMMISSION ON NATURAL CATASTROPHE RISK 

MANAGEMENT AND INSURANCE 

Sec. 201. Short title. 

Sec. 202. Findings. 

Sec. 203. Establishment. 

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Sec. 204. Membership. 

Sec. 205. Duties of the commission. 

Sec. 206. Report. 

Sec. 207. Powers of the commission. 

Sec. 208. Commission personnel matters. 

Sec. 209. Termination. 

Sec. 210. Authorization of appropriations. 

1 TITLE I—FLOOD INSURANCE 

2 REFORM AND MODERNIZATION 

3 SEC. 101. SHORT TITLE. 

4 This title may be cited as the ‘‘Flood Insurance Re5 form and Modernization Act of 2011’’. 

6 SEC. 102. FINDINGS. 

7 Congress finds that— 

8 (1) the flood insurance claims resulting from 

9 the hurricane season of 2005 exceeded all previous 

10 claims paid by the National Flood Insurance Pro11 gram; 

12 (2) in order to pay the legitimate claims of pol13 icyholders from the hurricane season of 2005, the 

14 Federal Emergency Management Agency has bor15 rowed $19,000,000,000 from the Treasury; 

16 (3) the interest alone on this debt has been as 

17 high as $800,000,000 annually, and that the Fed18 eral Emergency Management Agency has indicated 

19 that it will be unable to pay back this debt; 

20 (4) the flood insurance program must be 

21 strengthened to ensure it can pay future claims; 

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1 (5) while flood insurance is mandatory in the 

2 100-year floodplain, substantial flooding occurs out3 side of existing special flood hazard areas; 

4 (6) events throughout the country involving 

5 areas behind flood control structures, known as ‘‘re6 sidual risk’’ areas, have produced catastrophic 

7 losses; 

8 (7) although such flood control structures 

9 produce an added element of safety and therefore 

10 lessen the probability that a disaster will occur, they 

11 are nevertheless susceptible to catastrophic loss, even 

12 though such areas at one time were not included 

13 within the 100-year floodplain; and 

14 (8) voluntary participation in the National 

15 Flood Insurance Program has been minimal and 

16 many families residing outside the 100-year flood17 plain remain unaware of the potential risk to their 

18 lives and property. 

19 SEC. 103. DEFINITIONS. 

20 (a) IN GENERAL.—In this title, the following defini21 tions shall apply: 

22 (1) 100-YEAR FLOODPLAIN.—The term ‘‘100- 

23 year floodplain’’ means that area which is subject to 

24 inundation from a flood having a 1-percent chance 

25 of being equaled or exceeded in any given year. 

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1 (2) 500-YEAR FLOODPLAIN.—The term ‘‘500- 

2 year floodplain’’ means that area which is subject to 

3 inundation from a flood having a 0.2-percent chance 

4 of being equaled or exceeded in any given year. 

5 (3) ADMINISTRATOR.—The term ‘‘Adminis6 trator’’ means the Administrator of the Federal 

7 Emergency Management Agency. 

8 (4) NATIONAL FLOOD INSURANCE PROGRAM.— 

9 The term ‘‘National Flood Insurance Program’’ 

10 means the program established under the National 

11 Flood Insurance Act of 1968 (42 U.S.C. 4011 et 

12 seq.). 

13 (5) WRITE YOUR OWN.—The term ‘‘Write Your 

14 Own’’ means the cooperative undertaking between 

15 the insurance industry and the Federal Insurance 

16 Administration which allows participating property 

17 and casualty insurance companies to write and serv18 ice standard flood insurance policies. 

19 (b) COMMON TERMINOLOGY.—Except as otherwise 

20 provided in this title, any terms used in this title shall 

21 have the meaning given to such terms under section 1370 

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

23 4121). 

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1 SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE 

2 PROGRAM. 

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

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

5 amended by striking ‘‘2011’’ and inserting ‘‘2016’’ 

6 (b) PROGRAM EXPIRATION.—Section 1319 of the Na7 tional Flood Insurance Act of 1968 (42 U.S.C. 4026), is 

8 amended by striking ‘‘2011’’ and inserting ‘‘2016’’. 

9 SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY 

10 PROPERTIES. 

11 Section 1305 of the National Flood Insurance Act of 

12 1968 (42 U.S.C. 4012) is amended— 

13 (1) in subsection (b)(2)(A), by inserting ‘‘not 

14 described in subsection (a) or (d)’’ after ‘‘prop15 erties’’; and 

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

17 ‘‘(d) AVAILABILITY OF INSURANCE FOR MULTI18 FAMILY PROPERTIES.— 

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

20 make flood insurance available to cover residential 

21 properties of more than 4 units. Notwithstanding 

22 any other provision of law, the maximum coverage 

23 amount that the Administrator may make available 

24 under this subsection to such residential properties 

25 shall be equal to the coverage amount made avail26 able to commercial properties. 

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1 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

2 this subsection shall be construed to limit the ability 

3 of individuals residing in residential properties of 

4 more than 4 units to obtain insurance for the con5 tents and personal articles located in such resi6 dences.’’. 

7 SEC. 106. REFORM OF PREMIUM RATE STRUCTURE. 

8 (a) TO EXCLUDE CERTAIN PROPERTIES FROM RE9 CEIVING SUBSIDIZED PREMIUM RATES.— 

10 (1) IN GENERAL.—Section 1307 of the Na11 tional Flood Insurance Act of 1968 (42 U.S.C. 

12 4014) is amended— 

13 (A) in subsection (a)(2), by striking ‘‘; 

14 and’’ and inserting the following: ‘‘, except that 

15 the Administrator shall not estimate rates 

16 under this paragraph for— 

17 ‘‘(A) any property which is not the pri18 mary residence of an individual; 

19 ‘‘(B) any severe repetitive loss property; 

20 ‘‘(C) any property that has incurred flood21 related damage in which the cumulative 

22 amounts of payments under this title equaled or 

23 exceeded the fair market value of such property; 

24 ‘‘(D) any business property; or 

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1 ‘‘(E) any property which on or after the 

2 date of the enactment of the Flood Insurance 

3 Reform and Modernization Act of 2011 has ex4 perienced or sustained— 

5 ‘‘(i) substantial damage exceeding 50 

6 percent of the fair market value of such 

7 property; or 

8 ‘‘(ii) substantial improvement exceed9 ing 30 percent of the fair market value of 

10 such property; and’’; and 

11 (B) by adding at the end the following: 

12 ‘‘(g) NO EXTENSION OF SUBSIDY TO NEW POLICIES

13 OR LAPSED POLICIES.—The Administrator shall not pro14 vide flood insurance to prospective insureds at rates less 

15 than those estimated under subsection (a)(1), as required 

16 by paragraph (2) of that subsection, for— 

17 ‘‘(1) any property not insured by the flood in18 surance program as of the date of the enactment of 

19 the Flood Insurance Reform and Modernization Act 

20 of 2011; 

21 ‘‘(2) any policy under the flood insurance pro22 gram that has lapsed in coverage, as a result of the 

23 deliberate choice of the holder of such policy; or 

24 ‘‘(3) any prospective insured who refuses to ac25 cept any offer for mitigation assistance by the Admstockstill on DSK4VPTVN1PROD with BILLS

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1 ministrator (including an offer to relocate), including 

2 an offer of mitigation assistance— 

3 ‘‘(A) following a major disaster, as defined 

4 in section 102 of the Robert T. Stafford Dis5 aster Relief and Emergency Assistance Act (42 

6 U.S.C. 5122); or 

7 ‘‘(B) in connection with— 

8 ‘‘(i) a repetitive loss property; or 

9 ‘‘(ii) a severe repetitive loss property. 

10 ‘‘(h) DEFINITION.—In this section, the term ‘severe 

11 repetitive loss property’ has the following meaning: 

12 ‘‘(1) SINGLE-FAMILY PROPERTIES.—In the case 

13 of a property consisting of 1 to 4 residences, such 

14 term means a property that— 

15 ‘‘(A) is covered under a contract for flood 

16 insurance made available under this title; and 

17 ‘‘(B) has incurred flood-related damage— 

18 ‘‘(i) for which 4 or more separate 

19 claims payments have been made under 

20 flood insurance coverage under this chap21 ter, with the amount of each such claim 

22 exceeding $5,000, and with the cumulative 

23 amount of such claims payments exceeding 

24 $20,000; or 

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1 ‘‘(ii) for which at least 2 separate 

2 claims payments have been made under 

3 such coverage, with the cumulative amount 

4 of such claims exceeding the value of the 

5 property. 

6 ‘‘(2) MULTIFAMILY PROPERTIES.—In the case 

7 of a property consisting of more than 4 units, such 

8 term shall have such meaning as the Director shall 

9 by regulation provide.’’. 

10 (2) EFFECTIVE DATE.—The amendments made 

11 by paragraph (1) shall become effective 90 days 

12 after the date of the enactment of this Act. 

13 (b) ESTIMATES OF PREMIUM RATES.—Section 

14 1307(a)(1)(B) of the National Flood Insurance Act of 

15 1968 (42 U.S.C. 4014(a)(1)(B)) is amended— 

16 (1) in clause (ii), by striking ‘‘and’’ at the end; 

17 (2) in clause (iii), by adding ‘‘and’’ at the end; 

18 and 

19 (3) by inserting after clause (iii) the following: 

20 ‘‘(iv) all costs, as prescribed by prin21 ciples and standards of practice in rate22 making adopted by the American Academy 

23 of Actuaries and the Casualty Actuarial 

24 Society, including— 

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1 ‘‘(I) an estimate of the expected 

2 value of future costs, 

3 ‘‘(II) all costs associated with the 

4 transfer of risk, and 

5 ‘‘(III) the costs associated with 

6 an individual risk transfer with re7 spect to risk classes, as defined by the 

8 Administrator,’’. 

9 (c) INCREASE IN ANNUAL LIMITATION ON PREMIUM

10 INCREASES.—Section 1308(e) of the National Flood In11 surance Act of 1968 (42 U.S.C. 4015(e)) is amended— 

12 (1) by striking ‘‘under this title for any prop13 erties within any single’’ and inserting the following: 

14 ‘‘under this title for any properties— 

15 ‘‘(1) within any single’’; 

16 (2) by striking ‘‘10 percent’’ and inserting ‘‘15 

17 percent’’; and 

18 (3) by striking the period at the end and insert19 ing the following: ‘‘; and 

20 ‘‘(2) described in subparagraphs (A) through 

21 (E) of section 1307(a)(2) shall be increased by 25 

22 percent each year, until the average risk premium 

23 rate for such properties is equal to the average of 

24 the risk premium rates for properties described 

25 under paragraph (1).’’. 

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1 (d) PREMIUM PAYMENT FLEXIBILITY FOR NEW AND

2 EXISTING POLICYHOLDERS.—Section 1308 of the Na3 tional Flood Insurance Act of 1968 (42 U.S.C. 4015) is 

4 amended by adding at the end the following: 

5 ‘‘(g) FREQUENCY OF PREMIUM COLLECTION.—With 

6 respect to any chargeable premium rate prescribed under 

7 this section, the Administrator shall provide policyholders 

8 that are not required to escrow their premiums and fees 

9 for flood insurance as set forth under section 102 of the 

10 Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) 

11 with the option of paying their premiums either annually 

12 or in more frequent installments.’’. 

13 SEC. 107. MANDATORY COVERAGE AREAS. 

14 (a) SPECIAL FLOOD HAZARD AREAS.—Not later 

15 than 90 days after the date of the enactment of this Act, 

16 the Administrator shall issue final regulations establishing 

17 a revised definition of areas of special flood hazards for 

18 purposes of the National Flood Insurance Program. 

19 (b) RESIDUAL RISK AREAS.—The regulations re20 quired by subsection (a) shall require the expansion of 

21 areas of special flood hazards to include areas of residual 

22 risk that are located behind levees or near dams or other 

23 flood control structures, as determined by the Adminis24 trator. 

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1 (c) MANDATORY PARTICIPATION IN NATIONAL

2 FLOOD INSURANCE PROGRAM.— 

3 (1) IN GENERAL.—Any area described in sub4 section (b) shall be subject to the mandatory pur5 chase requirements of sections 102 and 202 of the 

6 Flood Disaster Protection Act of 1973 (42 U.S.C. 

7 4012a, 4106). 

8 (2) LIMITATION.—The mandatory purchase re9 quirement under paragraph (1) shall have no force 

10 or effect until the mapping of all residual risk areas 

11 in the United States that the Administrator deter12 mines essential in order to administer the National 

13 Flood Insurance Program, as required under section 

14 118, are in the maintenance phase. 

15 (3) ACCURATE PRICING.—In carrying out the 

16 mandatory purchase requirement under paragraph 

17 (1), the Administrator shall ensure that the price of 

18 flood insurance policies in areas of residual risk ac19 curately reflects the level of flood protection provided 

20 by any levee, dam, or other flood control structure 

21 in such area, regardless of the certification status of 

22 the flood control structure. 

23 (d) DECERTIFICATION.—Upon decertification of any 

24 levee, dam, or flood control structure under the jurisdic25 tion of the Army Corps of Engineers, the Corps shall immstockstill on DSK4VPTVN1PROD with BILLS

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1 mediately provide notice to the Administrator of the Na2 tional Flood Insurance Program. 

3 SEC. 108. PREMIUM ADJUSTMENT. 

4 Section 1308 of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4015), as amended by section 106(c), 

6 is further amended by adding at the end the following: 

7 ‘‘(h) PREMIUM ADJUSTMENT TO REFLECT CURRENT

8 RISK OF FLOOD.—Notwithstanding subsection (f), upon 

9 the effective date of any revised or updated flood insurance 

10 rate map under this Act, the Flood Disaster Protection 

11 Act of 1973, or the Flood Insurance Reform and Mod12 ernization Act of 2011, any property located in an area 

13 that is participating in the national flood insurance pro14 gram shall have the risk premium rate charged for flood 

15 insurance on such property adjusted to accurately reflect 

16 the current risk of flood to such property, subject to any 

17 other provision of this Act. Any increase in the risk pre18 mium rate charged for flood insurance on any property 

19 that is covered by a flood insurance policy on the effective 

20 date of such an update that is a result of such updating 

21 shall be phased in over a 4-year period, at the rate of 40 

22 percent for the first year following such effective date and 

23 20 percent for each of the second, third, and fourth years 

24 following such effective date. In the case of any area that 

25 was not previously designated as an area having special 

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1 flood hazards and that, pursuant to any issuance, revision, 

2 updating, or other change in a flood insurance map, be3 comes designated as such an area, the chargeable risk pre4 mium rate for flood insurance under this title that is pur5 chased on or after the date of enactment of this subsection 

6 with respect to any property that is located within such 

7 area shall be phased in over a 4-year period, at the rate 

8 of 40 percent for the first year following the effective date 

9 of such issuance, revision, updating, or change and 20 per10 cent for each of the second, third, and fourth years fol11 lowing such effective date.’’. 

12 SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS. 

13 Section 1305(c) of the National Flood Insurance Act 

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

15 (1) in paragraph (1), by striking ‘‘, and’’ and 

16 inserting a semicolon; 

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

18 the end and inserting ‘‘; and’’; and 

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

20 ‘‘(3) given satisfactory assurance that by the 

21 date that is 6 months after the date of enactment 

22 of the Flood Insurance Reform and Modernization 

23 Act of 2011, lending institutions chartered by a 

24 State, and not insured by the Federal Deposit Insur25 ance Corporation or the National Credit Union Admstockstill on DSK4VPTVN1PROD with BILLS

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1 ministration, shall be subject to regulations by that 

2 State that are consistent with the requirements of 

3 section 102 of the Flood Disaster Protection Act of 

4 1973 (42 U.S.C. 4012a).’’. 

5 SEC. 110. ENFORCEMENT. 

6 Section 102(f)(5) of the Flood Disaster Protection 

7 Act of 1973 (42 U.S.C. 4012a(f)(5)) is amended— 

8 (1) in the first sentence, by striking ‘‘$350’’ 

9 and inserting ‘‘$2,000’’; and 

10 (2) by striking the second sentence. 

11 SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS. 

12 (a) IN GENERAL.—Section 102(d) of the Flood Dis13 aster Protection Act of 1973 (42 U.S.C. 4012a(d)) is 

14 amended— 

15 (1) by amending paragraph (1) to read as fol16 lows: 

17 ‘‘(1) REGULATED LENDING INSTITUTIONS.— 

18 ‘‘(A) FEDERAL ENTITIES RESPONSIBLE

19 FOR LENDING REGULATIONS.—Each Federal 

20 entity for lending regulation (after consultation 

21 and coordination with the Federal Financial In22 stitutions Examination Council) shall, by regu23 lation, direct that any premiums and fees for 

24 flood insurance under the National Flood Insur25 ance Act of 1968, on any property for which a 

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1 loan has been made for acquisition or construc2 tion purposes, shall be paid to the mortgage 

3 lender, with the same frequency as payments on 

4 the loan are made, for the duration of the loan. 

5 Upon receipt of any premiums or fees, the lend6 er shall deposit such premiums and fees in an 

7 escrow account on behalf of the borrower. Upon 

8 receipt of a notice from the Administrator or 

9 the provider of the flood insurance that insur10 ance premiums are due, the remaining balance 

11 of an escrow account shall be paid to the pro12 vider of the flood insurance. 

13 ‘‘(B) STATE ENTITIES RESPONSIBLE FOR

14 LENDING REGULATIONS.—In order to continue 

15 to participate in the flood insurance program, 

16 each State shall direct that its entity or agency 

17 with primary responsibility for the supervision 

18 of lending institutions in that State require that 

19 premiums and fees for flood insurance under 

20 the National Flood Insurance Act of 1968, on 

21 any property for which a loan has been made 

22 for acquisition or construction purposes shall be 

23 paid to the mortgage lender, with the same fre24 quency as payments on the loan are made, for 

25 the duration of the loan. Upon receipt of any 

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1 premiums or fees, the lender shall deposit such 

2 premiums and fees in an escrow account on be3 half of the borrower. Upon receipt of a notice 

4 from such State entity or agency, the Adminis5 trator, or the provider of the flood insurance 

6 that insurance premiums are due, the remain7 ing balance of an escrow account shall be paid 

8 to the provider of the flood insurance.’’; and 

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

10 ‘‘(6) NOTICE UPON LOAN TERMINATION.—Upon 

11 final payment of the mortgage, a regulated lending 

12 institution shall provide notice to the policyholder 

13 that flood insurance coverage may cease with such 

14 final payment. The regulated lending institution 

15 shall also provide direction as to how the homeowner 

16 may continue flood insurance coverage after the life 

17 of the loan.’’. 

18 (b) APPLICABILITY.—The amendment made by sub19 section (a)(1) shall apply to any mortgage outstanding or 

20 entered into on or after the expiration of the 2-year period 

21 beginning on the date of the enactment of this Act. 

22 SEC. 112. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE 

23 NATIONAL FLOOD INSURANCE PROGRAM. 

24 Section 1312 of the National Flood Insurance Act of 

25 1968 (42 U.S.C. 4019) is amended— 

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1 (1) by striking ‘‘The Director is’’ and inserting 

2 the following: 

3 ‘‘(a) IN GENERAL.—The Administrator is’’; and 

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

5 ‘‘(b) MINIMUM ANNUAL DEDUCTIBLE.— 

6 ‘‘(1) PRE-FIRM PROPERTIES.—For any struc7 ture which is covered by flood insurance under this 

8 title, and on which construction or substantial im9 provement occurred on or before December 31, 

10 1974, or before the effective date of an initial flood 

11 insurance rate map published by the Administrator 

12 under section 1360 for the area in which such struc13 ture is located, the minimum annual deductible for 

14 damage to such structure shall be— 

15 ‘‘(A) $1,500, if the flood insurance cov16 erage for such structure covers loss of, or phys17 ical damage to, such structure in an amount 

18 equal to or less than $100,000; and 

19 ‘‘(B) $2,000, if the flood insurance cov20 erage for such structure covers loss of, or phys21 ical damage to, such structure in an amount 

22 greater than $100,000. 

23 ‘‘(2) POST-FIRM PROPERTIES.—For any struc24 ture which is covered by flood insurance under this 

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1 provement occurred after December 31, 1974, or 

2 after the effective date of an initial flood insurance 

3 rate map published by the Administrator under sec4 tion 1360 for the area in which such structure is lo5 cated, the minimum annual deductible for damage to 

6 such structure shall be— 

7 ‘‘(A) $1,000, if the flood insurance cov8 erage for such structure covers loss of, or phys9 ical damage to, such structure in an amount 

10 equal to or less than $100,000; and 

11 ‘‘(B) $1,250, if the flood insurance cov12 erage for such structure covers loss of, or phys13 ical damage to, such structure in an amount 

14 greater than $100,000.’’. 

15 SEC. 113. CONSIDERATIONS IN DETERMINING CHARGE16 ABLE PREMIUM RATES. 

17 Section 1308 of the National Flood Insurance Act of 

18 1968 (42 U.S.C. 4015), as amended by this Act, is amend19 ed— 

20 (1) in subsection (a), by striking ‘‘, after con21 sultation with’’ and all that follows through ‘‘by reg22 ulation’’ and inserting ‘‘prescribe, after providing 

23 notice’’; 

24 (2) in subsection (b)— 

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1 (A) in paragraph (1), by striking the pe2 riod at the end and inserting a semicolon; 

3 (B) in paragraph (2), by striking the 

4 comma at the end and inserting a semicolon; 

5 (C) in paragraph (3), by striking ‘‘, and’’ 

6 and inserting a semicolon; 

7 (D) in paragraph (4), by striking the pe8 riod and inserting ‘‘; and’’; and 

9 (E) by adding at the end the following: 

10 ‘‘(5) adequate, on the basis of accepted actu11 arial principles, to cover the average historical loss 

12 year obligations incurred by the National Flood In13 surance Fund.’’; and 

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

15 ‘‘(i) RULE OF CONSTRUCTION.—For purposes of this 

16 section, the calculation of an ‘average historical loss 

17 year’— 

18 ‘‘(1) includes catastrophic loss years; and 

19 ‘‘(2) shall be computed in accordance with gen20 erally accepted actuarial principles.’’. 

21 SEC. 114. RESERVE FUND. 

22 Chapter I of the National Flood Insurance Act of 

23 1968 (42 U.S.C. 4011 et seq.) is amended by inserting 

24 after section 1310 (42 U.S.C. 4017) the following: 

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1 ‘‘SEC. 1310A. RESERVE FUND. 

2 ‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car3 rying out the flood insurance program authorized by this 

4 chapter, the Administrator shall establish in the Treasury 

5 of the United States a National Flood Insurance Reserve 

6 Fund (in this section referred to as the ‘Reserve Fund’) 

7 which shall— 

8 ‘‘(1) be an account separate from any other ac9 counts or funds available to the Administrator; and 

10 ‘‘(2) be available for meeting the expected fu11 ture obligations of the flood insurance program. 

12 ‘‘(b) RESERVE RATIO.—Subject to the phase-in re13 quirements under subsection (d), the Reserve Fund shall 

14 maintain a balance equal to— 

15 ‘‘(1) 1 percent of the sum of the total potential 

16 loss exposure of all outstanding flood insurance poli17 cies in force in the prior fiscal year; or 

18 ‘‘(2) such higher percentage as the Adminis19 trator determines to be appropriate, taking into con20 sideration any circumstance that may raise a signifi21 cant risk of substantial future losses to the Reserve 

22 Fund. 

23 ‘‘(c) MAINTENANCE OF RESERVE RATIO.— 

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

25 have the authority to establish, increase, or decrease 

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1 the amount of aggregate annual insurance premiums 

2 to be collected for any fiscal year necessary— 

3 ‘‘(A) to maintain the reserve ratio required 

4 under subsection (b); and 

5 ‘‘(B) to achieve such reserve ratio, if the 

6 actual balance of such reserve is below the 

7 amount required under subsection (b). 

8 ‘‘(2) CONSIDERATIONS.—In exercising the au9 thority granted under paragraph (1), the Adminis10 trator shall consider— 

11 ‘‘(A) the expected operating expenses of 

12 the Reserve Fund; 

13 ‘‘(B) the insurance loss expenditures under 

14 the flood insurance program; 

15 ‘‘(C) any investment income generated 

16 under the flood insurance program; and 

17 ‘‘(D) any other factor that the Adminis18 trator determines appropriate. 

19 ‘‘(3) LIMITATIONS.—In exercising the authority 

20 granted under paragraph (1), the Administrator 

21 shall be subject to all other provisions of this Act, 

22 including any provisions relating to chargeable pre23 mium rates or annual increases of such rates. 

24 ‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re25 quirements under this subsection are as follows: 

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1 ‘‘(1) IN GENERAL.—Beginning in fiscal year 

2 2012 and not ending until the fiscal year in which 

3 the ratio required under subsection (b) is achieved, 

4 in each such fiscal year the Administrator shall 

5 place in the Reserve Fund an amount equal to not 

6 less than 7.5 percent of the reserve ratio required 

7 under subsection (b). 

8 ‘‘(2) AMOUNT SATISFIED.—As soon as the ratio 

9 required under subsection (b) is achieved, and except 

10 as provided in paragraph (3), the Administrator 

11 shall not be required to set aside any amounts for 

12 the Reserve Fund. 

13 ‘‘(3) EXCEPTION.—If at any time after the 

14 ratio required under subsection (b) is achieved, the 

15 Reserve Fund falls below the required ratio under 

16 subsection (b), the Administrator shall place in the 

17 Reserve Fund for that fiscal year an amount equal 

18 to not less than 7.5 percent of the reserve ratio re19 quired under subsection (b). 

20 ‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 

21 fiscal year, if the Administrator determines that the re22 serve ratio required under subsection (b) cannot be 

23 achieved, the Administrator shall submit a report to Con24 gress that— 

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1 ‘‘(1) describes and details the specific concerns 

2 of the Administrator regarding the consequences of 

3 the reserve ratio not being achieved; 

4 ‘‘(2) demonstrates how such consequences 

5 would harm the long-term financial soundness of the 

6 flood insurance program; and 

7 ‘‘(3) indicates the maximum attainable reserve 

8 ratio for that particular fiscal year.’’. 

9 SEC. 115. REPAYMENT PLAN FOR BORROWING AUTHORITY. 

10 Section 1309 of the National Flood Insurance Act of 

11 1968 (42 U.S.C. 4016) is amended by adding at the end 

12 the following: 

13 ‘‘(c) Upon the exercise of the authority established 

14 under subsection (a), the Administrator shall transmit a 

15 schedule for repayment of such amounts to— 

16 ‘‘(1) the Secretary of the Treasury; 

17 ‘‘(2) the Committee on Banking, Housing, and 

18 Urban Affairs of the Senate; and 

19 ‘‘(3) the Committee on Financial Services of 

20 the House of Representatives. 

21 ‘‘(d) In connection with any funds borrowed by the 

22 Administrator under the authority established in sub23 section (a), the Administrator, beginning 6 months after 

24 the date on which such funds are borrowed, and con25 tinuing every 6 months thereafter until such borrowed 

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1 funds are fully repaid, shall submit a report on the 

2 progress of such repayment to— 

3 ‘‘(1) the Secretary of the Treasury; 

4 ‘‘(2) the Committee on Banking, Housing, and 

5 Urban Affairs of the Senate; and 

6 ‘‘(3) the Committee on Financial Services of 

7 the House of Representatives.’’. 

8 SEC. 116. PAYMENT OF CONDOMINIUM CLAIMS. 

9 Section 1312 of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4019), as amended by section 112, is 

11 amended by adding at the end the following: 

12 ‘‘(c) PAYMENT OF CLAIMS TO CONDOMINIUM OWN13 ERS.—The Administrator may not deny payment for any 

14 damage to or loss of property which is covered by flood 

15 insurance to condominium owners who purchased such 

16 flood insurance separate and apart from the flood insur17 ance purchased by the condominium association in which 

18 such owner is a member, based solely, or in any part, on 

19 the flood insurance coverage of the condominium associa20 tion or others on the overall property owned by the condo21 minium association.’’. 

22 SEC. 117. TECHNICAL MAPPING ADVISORY COUNCIL. 

23 (a) ESTABLISHMENT.—There is established a council 

24 to be known as the Technical Mapping Advisory Council 

25 (in this section referred to as the ‘‘Council’’). 

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1 (b) MEMBERSHIP.— 

2 (1) IN GENERAL.—The Council shall consist of 

3 the Administrator, or the designee thereof, and 17 

4 additional members to be appointed by the Adminis5 trator or the designee of the Administrator, who 

6 shall be— 

7 (A) the Under Secretary of Commerce for 

8 Oceans and Atmosphere (or the designee there9 of); 

10 (B) a member of a recognized professional 

11 surveying association or organization; 

12 (C) a member of a recognized professional 

13 mapping association or organization; 

14 (D) a member of a recognized professional 

15 engineering association or organization; 

16 (E) a member of a recognized professional 

17 association or organization representing flood 

18 hazard determination firms; 

19 (F) a representative of the United States 

20 Geological Survey; 

21 (G) a representative of a recognized profes22 sional association or organization representing 

23 State geographic information; 

24 (H) a representative of State national flood 

25 insurance coordination offices; 

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1 (I) a representative of the Corps of Engi2 neers; 

3 (J) the Secretary of the Interior (or the 

4 designee thereof); 

5 (K) the Secretary of Agriculture (or the 

6 designee thereof); 

7 (L) a member of a recognized regional 

8 flood and storm water management organiza9 tion; 

10 (M) a representative of a State agency that 

11 has entered into a cooperating technical part12 nership with the Administrator and has dem13 onstrated the capability to produce flood insur14 ance rate maps; 

15 (N) a representative of a local government 

16 agency that has entered into a cooperating 

17 technical partnership with the Administrator 

18 and has demonstrated the capability to produce 

19 flood insurance rate maps; 

20 (O) a member of a recognized floodplain 

21 management association or organization; 

22 (P) a member of a recognized risk manage23 ment association or organization; and 

24 (Q) a State mitigation officer. 

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1 (2) QUALIFICATIONS.—Members of the Council 

2 shall be appointed based on their demonstrated 

3 knowledge and competence regarding surveying, car4 tography, remote sensing, geographic information 

5 systems, or the technical aspects of preparing and 

6 using flood insurance rate maps. 

7 (c) DUTIES.—The Council shall— 

8 (1) recommend to the Administrator how to im9 prove in a cost-effective manner the— 

10 (A) accuracy, general quality, ease of use, 

11 and distribution and dissemination of flood in12 surance rate maps and risk data; and 

13 (B) performance metrics and milestones 

14 required to effectively and efficiently map flood 

15 risk areas in the United States; 

16 (2) recommend to the Administrator mapping 

17 standards and guidelines for— 

18 (A) flood insurance rate maps; and 

19 (B) data accuracy, data quality, data cur20 rency, and data eligibility; 

21 (3) recommend to the Administrator how to 

22 maintain, on an ongoing basis, flood insurance rate 

23 maps and flood risk identification; 

24 (4) recommend procedures for delegating map25 ping activities to State and local mapping partners; 

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1 (5) recommend to the Administrator and other 

2 Federal agencies participating in the Council— 

3 (A) methods for improving interagency and 

4 intergovernmental coordination on flood map5 ping and flood risk determination; and 

6 (B) a funding strategy to leverage and co7 ordinate budgets and expenditures across Fed8 eral agencies; and 

9 (6) submit an annual report to the Adminis10 trator that contains— 

11 (A) a description of the activities of the 

12 Council; 

13 (B) an evaluation of the status and per14 formance of flood insurance rate maps and 

15 mapping activities to revise and update flood in16 surance rate maps, as required under section 

17 118; and 

18 (C) a summary of recommendations made 

19 by the Council to the Administrator. 

20 (d) FUTURE CONDITIONS RISK ASSESSMENT AND

21 MODELING REPORT.— 

22 (1) IN GENERAL.—The Council shall consult 

23 with scientists and technical experts, other Federal 

24 agencies, States, and local communities to— 

25 (A) develop recommendations on how to— 

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1 (i) ensure that flood insurance rate 

2 maps incorporate the best available climate 

3 science to assess flood risks; and 

4 (ii) ensure that the Federal Emer5 gency Management Agency uses the best 

6 available methodology to consider the im7 pact of— 

8 (I) the rise in the sea level; and 

9 (II) future development on flood 

10 risk; and 

11 (B) not later than 1 year after the date of 

12 the enactment of this Act, prepare written rec13 ommendations in a future conditions risk as14 sessment and modeling report and to submit 

15 such recommendations to the Administrator. 

16 (2) RESPONSIBILITY OF THE ADMINIS17 TRATOR.—The Administrator, as part of the ongoing 

18 program to review and update National Flood Insur19 ance Program rate maps under section 118, shall in20 corporate any future risk assessment submitted 

21 under paragraph (1)(B) in any such revision or up22 date. 

23 (e) CHAIRPERSON.—The members of the Council 

24 shall elect 1 member to serve as the chairperson of the 

25 Council (in this section referred to as the ‘‘Chairperson’’). 

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1 (f) COORDINATION.—To ensure that the Council’s 

2 recommendations are consistent, to the maximum extent 

3 practicable, with national digital spatial data collection 

4 and management standards, the Chairperson shall consult 

5 with the Chairperson of the Federal Geographic Data 

6 Committee (established pursuant to Office of Management 

7 and Budget Circular A–16). 

8 (g) COMPENSATION.—Members of the Council shall 

9 receive no additional compensation by reason of their serv10 ice on the Council. 

11 (h) MEETINGS AND ACTIONS.— 

12 (1) IN GENERAL.—The Council shall meet not 

13 less frequently than twice each year at the request 

14 of the Chairperson or a majority of its members, 

15 and may take action by a vote of the majority of the 

16 members. 

17 (2) INITIAL MEETING.—The Administrator, or 

18 a person designated by the Administrator, shall re19 quest and coordinate the initial meeting of the Coun20 cil. 

21 (i) OFFICERS.—The Chairperson may appoint offi22 cers to assist in carrying out the duties of the Council 

23 under subsection (c). 

24 (j) STAFF.— 

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1 (1) STAFF OF FEMA.—Upon the request of the 

2 Chairperson, the Administrator may detail, on a 

3 nonreimbursable basis, personnel of the Federal 

4 Emergency Management Agency to assist the Coun5 cil in carrying out its duties. 

6 (2) STAFF OF OTHER FEDERAL AGENCIES.— 

7 Upon request of the Chairperson, any other Federal 

8 agency that is a member of the Council may detail, 

9 on a nonreimbursable basis, personnel to assist the 

10 Council in carrying out its duties. 

11 (k) POWERS.—In carrying out this section, the Coun12 cil may hold hearings, receive evidence and assistance, pro13 vide information, and conduct research, as it considers ap14 propriate. 

15 (l) REPORT TO CONGRESS.—The Administrator, on 

16 an annual basis, shall report to the Committee on Bank17 ing, Housing, and Urban Affairs of the Senate, the Com18 mittee on Financial Services of the House of Representa19 tives, and the Office of Management and Budget on the— 

20 (1) recommendations made by the Council; 

21 (2) actions taken by the Federal Emergency 

22 Management Agency to address such recommenda23 tions to improve flood insurance rate maps and flood 

24 risk data; and 

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1 (3) any recommendations made by the Council 

2 that have been deferred or not acted upon, together 

3 with an explanatory statement. 

4 SEC. 118. NATIONAL FLOOD MAPPING PROGRAM. 

5 (a) REVIEWING, UPDATING, AND MAINTAINING

6 MAPS.—The Administrator, in coordination with the 

7 Technical Mapping Advisory Council established under 

8 section 117, shall establish an ongoing program under 

9 which the Administrator shall review, update, and main10 tain National Flood Insurance Program rate maps in ac11 cordance with this section. 

12 (b) MAPPING.— 

13 (1) IN GENERAL.—In carrying out the program 

14 established under subsection (a), the Administrator 

15 shall— 

16 (A) identify, review, update, maintain, and 

17 publish National Flood Insurance Program rate 

18 maps with respect to— 

19 (i) all populated areas and areas of 

20 possible population growth located within 

21 the 100-year floodplain; 

22 (ii) all populated areas and areas of 

23 possible population growth located within 

24 the 500-year floodplain; 

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1 (iii) areas of residual risk, including 

2 areas that are protected by levees, dams, 

3 and other flood control structures; 

4 (iv) areas that could be inundated as 

5 a result of the failure of a levee, dam, or 

6 other flood control structure; and 

7 (v) the level of protection provided by 

8 flood control structures; 

9 (B) establish or update flood-risk zone 

10 data in all such areas, and make estimates with 

11 respect to the rates of probable flood caused 

12 loss for the various flood risk zones for each 

13 such area; and 

14 (C) use, in identifying, reviewing, updat15 ing, maintaining, or publishing any National 

16 Flood Insurance Program rate map required 

17 under this section or under the National Flood 

18 Insurance Act of 1968 (42 U.S.C. 4011 et 

19 seq.), the most accurate topography and ele20 vation data available. 

21 (2) MAPPING ELEMENTS.—Each map updated 

22 under this section shall— 

23 (A) assess the accuracy of current ground 

24 elevation data used for hydrologic and hydraulic 

25 modeling of flooding sources and mapping of 

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1 the flood hazard and wherever necessary ac2 quire new ground elevation data utilizing the 

3 most up-to-date geospatial technologies in ac4 cordance with guidelines and specifications of 

5 the Federal Emergency Management Agency; 

6 and 

7 (B) develop National Flood Insurance Pro8 gram flood data on a watershed basis— 

9 (i) to provide the most technically ef10 fective and efficient studies and hydrologic 

11 and hydraulic modeling; and 

12 (ii) to eliminate, to the maximum ex13 tent possible, discrepancies in base flood 

14 elevations between adjacent political sub15 divisions. 

16 (3) OTHER INCLUSIONS.—In updating maps 

17 under this section, the Administrator shall include— 

18 (A) any relevant information on coastal in19 undation from— 

20 (i) an applicable inundation map of 

21 the Corps of Engineers; and 

22 (ii) data of the National Oceanic and 

23 Atmospheric Administration relating to 

24 storm surge modeling; 

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1 (B) any relevant information of the United 

2 States Geological Survey on stream flows, wa3 tershed characteristics, and topography that is 

4 useful in the identification of flood hazard 

5 areas, as determined by the Administrator; 

6 (C) any relevant information on land sub7 sidence, coastal erosion areas, and other floor8 related hazards; 

9 (D) any relevant information or data of 

10 the National Oceanic and Atmospheric Admin11 istration and the United States Geological Sur12 vey relating to the best available climate science 

13 and the potential for future inundation from 

14 sea level rise, increased precipitation, and in15 creased intensity of hurricanes due to global 

16 warming; and 

17 (E) any other relevant information as may 

18 be recommended by the Technical Mapping Ad19 visory Committee. 

20 (c) STANDARDS.—In updating and maintaining maps 

21 under this section, the Administrator shall— 

22 (1) establish standards to— 

23 (A) ensure that maps are adequate for— 

24 (i) flood risk determinations; and 

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1 (ii) use by State and local govern2 ments in managing development to reduce 

3 the risk of flooding; and 

4 (B) facilitate identification and use of con5 sistent methods of data collection and analysis 

6 by the Administrator, in conjunction with State 

7 and local governments, in developing maps for 

8 communities with similar flood risks, as deter9 mined by the Administrator; and 

10 (2) publish maps in a format that is— 

11 (A) digital geospatial data compliant; 

12 (B) compliant with the open publishing 

13 and data exchange standards established by the 

14 Open Geospatial Consortium; and 

15 (C) aligned with official data defined by 

16 the National Geodetic Survey. 

17 (d) COMMUNICATION AND OUTREACH.— 

18 (1) IN GENERAL.—The Administrator shall— 

19 (A) work to enhance communication and 

20 outreach to States, local communities, and 

21 property owners about the effects— 

22 (i) of any potential changes to Na23 tional Flood Insurance Program rate maps 

24 that may result from the mapping program 

25 required under this section; and 

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1 (ii) that any such changes may have 

2 on flood insurance purchase requirements; 

3 and 

4 (B) engage with local communities to en5 hance communication and outreach to the resi6 dents of such communities on the matters de7 scribed under subparagraph (A). 

8 (2) REQUIRED ACTIVITIES.—The communica9 tion and outreach activities required under para10 graph (1) shall include— 

11 (A) notifying property owners when their 

12 properties become included in, or when they are 

13 excluded from, an area covered by the manda14 tory flood insurance purchase requirement 

15 under section 102 of the Flood Disaster Protec16 tion Act of 1973 (42 U.S.C. 4012a); 

17 (B) educating property owners regarding 

18 the flood risk and reduction of this risk in their 

19 community, including the continued flood risks 

20 to areas that are no longer subject to the flood 

21 insurance mandatory purchase requirement; 

22 (C) educating property owners regarding 

23 the benefits and costs of maintaining or acquir24 ing flood insurance, including, where applicable, 

25 lower-cost preferred risk policies under the Namstockstill on DSK4VPTVN1PROD with BILLS

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

2 4011 et seq.) for such properties and the con3 tents of such properties; 

4 (D) educating property owners about flood 

5 map revisions and the process available to such 

6 owners to appeal proposed changes in flood ele7 vations through their community; and 

8 (E) encouraging property owners to main9 tain or acquire flood insurance coverage. 

10 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to the Administrator to 

12 carry out this section $400,000,000 for each of fiscal 

13 years 2012 through 2016. 

14 SEC. 119. SCOPE OF APPEALS. 

15 Section 1363 of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4104) is amended— 

17 (1) in subsection (a)— 

18 (A) in the heading, by inserting ‘‘AND

19 DESIGNATIONS OF SPECIAL FLOOD HAZARD

20 AREAS’’ after ‘‘ELEVATION DETERMINATIONS’’; 

21 (B) by inserting ‘‘and designating special 

22 flood hazard areas’’ after ‘‘flood elevations’’; 

23 and 

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1 (C) by striking ‘‘such determinations’’ and 

2 inserting ‘‘such determinations and designa3 tions’’; and 

4 (2) in subsection (b)— 

5 (A) in the heading, by inserting ‘‘AND

6 DESIGNATIONS OF SPECIAL FLOOD HAZARD

7 AREAS’’ after ‘‘ELEVATION DETERMINATIONS’’; 

8 (B) in the first sentence, by inserting ‘‘and 

9 designation of special flood hazard areas’’ after 

10 ‘‘flood elevation determinations’’; and 

11 (C) by amending the third sentence to read 

12 as follows: ‘‘The sole grounds for appeal shall 

13 be the possession of knowledge or information 

14 indicating that (1) the elevations being pro15 posed by the Administrator with respect to an 

16 identified area having special flood hazards are 

17 scientifically or technically incorrect, or (2) the 

18 designation of an identified special flood hazard 

19 area is scientifically or technically incorrect.’’ 

20 SEC. 120. SCIENTIFIC RESOLUTION PANEL. 

21 (a) ESTABLISHMENT.—The National Flood Insur22 ance Act of 1968 (42 U.S.C. 4011 et seq.) is amended 

23 by inserting after section 1363 (42 U.S.C. 4104) the fol24 lowing: 

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1 ‘‘SEC. 1363A. SCIENTIFIC RESOLUTION PANEL. 

2 ‘‘(a) AVAILABILITY.— 

3 ‘‘(1) IN GENERAL.—Pursuant to the authority 

4 provided under section 1363(e), the Administrator 

5 shall make available an independent review panel, to 

6 be known as the Scientific Resolution Panel, to any 

7 community— 

8 ‘‘(A) that has— 

9 ‘‘(i) filed a timely map appeal in ac10 cordance with section 1363; 

11 ‘‘(ii) completed 60 days of consulta12 tion with the Federal Emergency Manage13 ment Agency on the appeal; and 

14 ‘‘(iii) not allowed more than 120 days, 

15 or such longer period as may be provided 

16 by the Administrator by waiver, to pass 

17 since the end of the appeal period; or 

18 ‘‘(B) that has received an unsatisfactory 

19 ruling under the map revision process estab20 lished pursuant to section 1360(f). 

21 ‘‘(2) APPEALS BY OWNERS AND LESSEES.—If a 

22 community and an owner or lessee of real property 

23 within the community appeal a proposed determina24 tion of a flood elevation under section 1363(b), upon 

25 the request of the community— 

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1 ‘‘(A) the owner or lessee shall submit sci2 entific and technical data relating to the ap3 peals to the Scientific Resolution Panel; and 

4 ‘‘(B) the Scientific Resolution Panel shall 

5 make a determination with respect to the ap6 peals in accordance with subsection (c). 

7 ‘‘(3) DEFINITION.—For purposes of paragraph 

8 (1)(B), an ‘unsatisfactory ruling’ means that a com9 munity— 

10 ‘‘(A) received a revised Flood Insurance 

11 Rate Map from the Federal Emergency Man12 agement Agency, via a Letter of Final Deter13 mination, after September 30, 2008 and prior 

14 to the date of enactment of this section; 

15 ‘‘(B) has subsequently applied for a Letter 

16 of Map Revision or Physical Map Revision with 

17 the Federal Emergency Management Agency; 

18 and 

19 ‘‘(C) has received an unfavorable ruling on 

20 their request for a map revision. 

21 ‘‘(b) MEMBERSHIP.—The Scientific Resolution Panel 

22 made available under subsection (a) shall consist of 5 

23 members with expertise that relate to the creation and 

24 study of flood hazard maps and flood insurance. The Sci25 entific Resolution Panel may include representatives from 

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1 Federal agencies not involved in the mapping study in 

2 question and from other impartial experts. Employees of 

3 the Federal Emergency Management Agency may not 

4 serve on the Scientific Resolution Panel. 

5 ‘‘(c) DETERMINATION.— 

6 ‘‘(1) IN GENERAL.—Following deliberations, 

7 and not later than 90 days after its formation, the 

8 Scientific Resolution Panel shall issue a determina9 tion of resolution of the dispute. Such determination 

10 shall set forth recommendations for the base flood 

11 elevation determination or the determination of an 

12 area having special flood hazards that shall be re13 flected in the Flood Insurance Rate Maps. 

14 ‘‘(2) BASIS.—The determination of the Sci15 entific Resolution Panel shall be based on— 

16 ‘‘(A) data previously provided to the Ad17 ministrator by the community, and, in the case 

18 of a dispute submitted under subsection (a)(2), 

19 an owner or lessee of real property in the com20 munity; and 

21 ‘‘(B) data provided by the Administrator. 

22 ‘‘(3) NO ALTERNATIVE DETERMINATIONS PER23 MISSIBLE.—The Scientific Resolution Panel— 

24 ‘‘(A) shall provide a determination of reso25 lution of a dispute that— 

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1 ‘‘(i) is either in favor of the Adminis2 trator or in favor of the community on 

3 each distinct element of the dispute; or 

4 ‘‘(ii) in the case of a dispute sub5 mitted under subsection (a)(2), is in favor 

6 of the Administrator, in favor of the com7 munity, or in favor of the owner or lessee 

8 of real property in the community on each 

9 distinct element of the dispute; and 

10 ‘‘(B) may not offer as a resolution any 

11 other alternative determination. 

12 ‘‘(4) EFFECT OF DETERMINATION.— 

13 ‘‘(A) BINDING.—The recommendations of 

14 the Scientific Resolution Panel shall be binding 

15 on all appellants and not subject to further ju16 dicial review unless the Administrator deter17 mines that implementing the determination of 

18 the panel would— 

19 ‘‘(i) pose a significant threat due to 

20 failure to identify a substantial risk of spe21 cial flood hazards; or 

22 ‘‘(ii) violate applicable law. 

23 ‘‘(B) WRITTEN JUSTIFICATION NOT TO

24 ENFORCE.—If the Administrator elects not to 

25 implement the determination of the Scientific 

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1 Resolution Panel pursuant to subparagraph 

2 (A), then not later than 60 days after the 

3 issuance of the determination, the Adminis4 trator shall issue a written justification explain5 ing such election. 

6 ‘‘(C) APPEAL OF DETERMINATION NOT TO

7 ENFORCE.—If the Administrator elects not to 

8 implement the determination of the Scientific 

9 Resolution Panel pursuant to subparagraph 

10 (A), the community may appeal the determina11 tion of the Administrator as provided for under 

12 section 1363(g). 

13 ‘‘(d) MAPS USED FOR INSURANCE AND MANDATORY

14 PURCHASE REQUIREMENTS.—With respect to any com15 munity that has a dispute that is being considered by the 

16 Scientific Resolution Panel formed pursuant to this sub17 section, the Federal Emergency Management Agency shall 

18 ensure that for each such community that— 

19 ‘‘(1) the Flood Insurance Rate Map described 

20 in the most recently issued Letter of Final Deter21 mination shall be in force and effect with respect to 

22 such community; and 

23 ‘‘(2) flood insurance shall continue to be made 

24 available to the property owners and residents of the 

25 participating community.’’. 

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1 (b) CONFORMING AMENDMENTS.— 

2 (1) ADMINISTRATIVE REVIEW.—Section 

3 1363(e) of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4104(e)) is amended by striking 

5 ‘‘an independent scientific body or appropriate Fed6 eral agency for advice’’ and inserting ‘‘the Scientific 

7 Resolution Panel provided for in section 1363A’’. 

8 (2) JUDICIAL REVIEW.—The first sentence of 

9 section 1363(g) of the National Flood Insurance Act 

10 of 1968 (42 U.S.C. 4104(g)) is amended by striking 

11 ‘‘Any appellant’’ and inserting ‘‘Except as provided 

12 in section 1363A, any appellant’’. 

13 SEC. 121. REMOVAL OF LIMITATION ON STATE CONTRIBU14 TIONS FOR UPDATING FLOOD MAPS. 

15 Section 1360(f)(2) of the National Flood Insurance 

16 Act of 1968 (42 U.S.C. 4101(f)(2)) is amended by striking 

17 ‘‘, but which may not exceed 50 percent of the cost of 

18 carrying out the requested revision or update’’. 

19 SEC. 122. COORDINATION. 

20 (a) INTERAGENCY BUDGET CROSSCUT AND COORDI21 NATION REPORT.— 

22 (1) IN GENERAL.—The Secretary of Homeland 

23 Security, the Administrator, the Director of the Of24 fice of Management and Budget, and the heads of 

25 each Federal department or agency carrying out acmstockstill on DSK4VPTVN1PROD with BILLS

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1 tivities under sections 118 and 119 shall work to2 gether to ensure that flood risk determination data 

3 and geospatial data are shared among Federal agen4 cies in order to coordinate the efforts of the Nation 

5 to reduce its vulnerability to flooding hazards. 

6 (2) REPORT.—Not later than 30 days after the 

7 submission of the budget of the United States Gov8 ernment by the President to Congress, the Director 

9 of the Office of Management and Budget, in coordi10 nation with the Federal Emergency Management 

11 Agency, the United States Geological Survey, the 

12 National Oceanic and Atmospheric Administration, 

13 the Army Corps of Engineers, and other Federal 

14 agencies, as appropriate, shall submit to the appro15 priate authorizing and appropriating committees of 

16 the Senate and the House of Representatives an 

17 interagency budget crosscut and coordination report, 

18 certified by the Secretary or head of each such agen19 cy, that— 

20 (A) contains an interagency budget cross21 cut report that displays relevant sections of the 

22 budget proposed for each of the Federal agen23 cies working on flood risk determination data 

24 and digital elevation models, including any 

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1 planned interagency or intra-agency transfers; 

2 and 

3 (B) describes how the efforts aligned with 

4 such sections complement one another. 

5 (b) DUTIES OF THE ADMINISTRATOR.—In carrying 

6 out sections 118 and 119, the Administrator shall— 

7 (1) participate, pursuant to section 216 of the 

8 E–Government Act of 2002 (44 U.S.C. 3501 note), 

9 in the establishment of such standards and common 

10 protocols as are necessary to assure the interoper11 ability of geospatial data for all users of such infor12 mation; 

13 (2) coordinate with, seek assistance and co14 operation of, and provide a liaison to the Federal 

15 Geographic Data Committee pursuant to the Office 

16 of Management and Budget Circular A–16 and Ex17 ecutive Order 12906 (43 U.S.C. 1457 note; relating 

18 to the National Spatial Data Infrastructure) for the 

19 implementation of and compliance with such stand20 ards; 

21 (3) integrate with, leverage, and coordinate 

22 funding of, to the maximum extent practicable, the 

23 current flood mapping activities of each unit of 

24 State and local government; 

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1 (4) integrate with, leverage, and coordinate, to 

2 the maximum extent practicable, the current 

3 geospatial activities of other Federal agencies and 

4 units of State and local government; and 

5 (5) develop a funding strategy to leverage and 

6 coordinate budgets and expenditures, and to main7 tain or establish joint funding and other agreement 

8 mechanisms with other Federal agencies and units 

9 of State and local government to share in the collec10 tion and utilization of geospatial data among all gov11 ernmental users. 

12 SEC. 123. INTERAGENCY COORDINATION STUDY. 

13 (a) IN GENERAL.—The Administrator shall enter 

14 into a contract with the National Academy of Public Ad15 ministration to conduct a study on how the Federal Emer16 gency Management Agency— 

17 (1) should improve interagency and intergovern18 mental coordination on flood mapping, including a 

19 funding strategy to leverage and coordinate budgets 

20 and expenditures; and 

21 (2) can establish joint funding mechanisms with 

22 other Federal agencies and units of State and local 

23 government to share the collection and utilization of 

24 data among all governmental users. 

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

2 of the enactment of this title, the National Academy of 

3 Public Administration shall report the findings of the 

4 study required under subsection (a) to— 

5 (1) the Committee on Banking, Housing, and 

6 Urban Affairs of the Senate; 

7 (2) the Committee on Financial Services of the 

8 House of Representatives; 

9 (3) the Committee on Appropriations of the 

10 Senate; and 

11 (4) the Committee on Appropriations of the 

12 House of Representatives. 

13 SEC. 124. NONMANDATORY PARTICIPATION. 

14 (a) NONMANDATORY PARTICIPATION IN NATIONAL

15 FLOOD INSURANCE PROGRAM FOR 500-YEAR FLOOD16 PLAIN.—Any area located within the 500-year floodplain 

17 shall not be subject to the mandatory purchase require18 ments of sections 102 or 202 of the Flood Disaster Protec19 tion Act of 1973 (42 U.S.C. 4012a and 4106). 

20 (b) NOTICE.— 

21 (1) BY ADMINISTRATOR.—In carrying out the 

22 National Flood Insurance Program, the Adminis23 trator shall provide notice to any community located 

24 in an area within the 500-year floodplain. 

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1 (2) TIMING OF NOTICE.—The notice required 

2 under paragraph (1) shall be made not later than 6 

3 months after the date of completion of the initial 

4 mapping of the 500-year floodplain, as required 

5 under section 118. 

6 (3) LENDER REQUIRED NOTICE.— 

7 (A) REGULATED LENDING INSTITU8 TIONS.—Each Federal or State entity for lend9 ing regulation (after consultation and coordina10 tion with the Federal Financial Institutions Ex11 amination Council) shall, by regulation, require 

12 regulated lending institutions, as a condition of 

13 making, increasing, extending, or renewing any 

14 loan secured by property located in an area 

15 within the 500-year floodplain, to notify the 

16 purchaser or lessee (or obtain satisfactory as17 surances that the seller or lessor has notified 

18 the purchaser or lessee) and the servicer of the 

19 loan that such property is located in an area 

20 within the 500-year floodplain, in a manner 

21 that is consistent with, and substantially iden22 tical to, the notice required under section 

23 1364(a)(1) of the National Flood Insurance Act 

24 of 1968 (42 U.S.C. 4104a(a)(1)). 

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1 (B) FEDERAL OR STATE AGENCY LEND2 ERS.—Each Federal or State agency lender 

3 shall, by regulation, require notification in the 

4 same manner as provided under subparagraph 

5 (A) with respect to any loan that is made by a 

6 Federal or State agency lender and secured by 

7 property located in an area within the 500-year 

8 floodplain. 

9 (C) PENALTY FOR NONCOMPLIANCE.—Any 

10 regulated lending institution or Federal or 

11 State agency lender that fails to comply with 

12 the notice requirements established by this 

13 paragraph shall be subject to the penalties pre14 scribed under section 102(f)(5) of the Flood 

15 Disaster Protection Act of 1973 (42 U.S.C. 

16 4012a(f)(5)). 

17 SEC. 125. NOTICE OF FLOOD INSURANCE AVAILABILITY 

18 UNDER RESPA. 

19 Section 5(b) of the Real Estate Settlement Proce20 dures Act of 1974 (12 U.S.C. 2604(b)), as amended by 

21 section 1450 of the Dodd-Frank Wall Street Reform and 

22 Consumer Protection Act (Public Law 111–203; 124 Stat. 

23 2174), is amended by adding at the end the following: 

24 ‘‘(14) An explanation of flood insurance and the 

25 availability of flood insurance under the National 

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1 Flood Insurance Program, whether or not the real 

2 estate is located in an area having special flood haz3 ards.’’. 

4 SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS ME5 DIATION PROGRAMS. 

6 Chapter I of the National Flood Insurance Act of 

7 1968 (42 U.S.C. 4011 et seq.) is amended by inserting 

8 after section 1313 (42 U.S.C. 4020) the following: 

9 ‘‘SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS 

10 MEDIATION PROGRAMS. 

11 ‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case 

12 of the occurrence of a major disaster, as defined in section 

13 102 of the Robert T. Stafford Disaster Relief and Emer14 gency Assistance Act (42 U.S.C. 5122), that may have 

15 resulted in flood damage covered under the flood insurance 

16 program established under this chapter and other personal 

17 lines residential property insurance coverage offered by a 

18 State regulated insurer, upon a request made by the insur19 ance commissioner of a State (or such other official re20 sponsible for regulating the business of insurance in the 

21 State) for the participation of representatives of the Ad22 ministrator in a program sponsored by such State for non23 binding mediation of insurance claims resulting from a 

24 major disaster, the Administrator shall cause representa25 tives of the flood insurance program to participate in such 

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1 a State program where claims under the flood insurance 

2 program are involved to expedite settlement of flood dam3 age claims resulting from such disaster. 

4 ‘‘(b) EXTENT OF PARTICIPATION.—In satisfying the 

5 requirements of subsection (a), the Administrator shall re6 quire that each representative of the Administrator— 

7 ‘‘(1) be certified for purposes of the flood insur8 ance program to settle claims against such program 

9 resulting from such disaster in amounts up to the 

10 limits of policies under such program; 

11 ‘‘(2) attend State-sponsored mediation meetings 

12 regarding flood insurance claims resulting from such 

13 disaster at such times and places as may be ar14 ranged by the State; 

15 ‘‘(3) participate in good faith negotiations to16 ward the settlement of such claims with policy17 holders of coverage made available under the flood 

18 insurance program; and 

19 ‘‘(4) finalize the settlement of such claims on 

20 behalf of the flood insurance program with such pol21 icyholders. 

22 ‘‘(c) COORDINATION.—Representatives of the Admin23 istrator shall at all times coordinate their activities with 

24 insurance officials of the State and representatives of in25 surers for the purposes of consolidating and expediting 

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1 settlement of claims under the national flood insurance 

2 program resulting from such disaster. 

3 ‘‘(d) QUALIFICATIONS OF MEDIATORS.—Each State 

4 mediator participating in State-sponsored mediation under 

5 this section shall be— 

6 ‘‘(1)(A) a member in good standing of the State 

7 bar in the State in which the mediation is to occur 

8 with at least 2 years of practical experience; and 

9 ‘‘(B) an active member of such bar for at least 

10 1 year prior to the year in which such mediator’s 

11 participation is sought; or 

12 ‘‘(2) a retired trial judge from any United 

13 States jurisdiction who was a member in good stand14 ing of the bar in the State in which the judge pre15 sided for at least 5 years prior to the year in which 

16 such mediator’s participation is sought. 

17 ‘‘(e) MEDIATION PROCEEDINGS AND DOCUMENTS

18 PRIVILEGED.—As a condition of participation, all state19 ments made and documents produced pursuant to State20 sponsored mediation involving representatives of the Ad21 ministrator shall be deemed privileged and confidential 

22 settlement negotiations made in anticipation of litigation. 

23 ‘‘(f) LIABILITY, RIGHTS, OR OBLIGATIONS NOT AF24 FECTED.—Participation in State-sponsored mediation, as 

25 described in this section does not— 

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1 ‘‘(1) affect or expand the liability of any party 

2 in contract or in tort; or 

3 ‘‘(2) affect the rights or obligations of the par4 ties, as established— 

5 ‘‘(A) in any regulation issued by the Ad6 ministrator, including any regulation relating to 

7 a standard flood insurance policy; 

8 ‘‘(B) under this Act; and 

9 ‘‘(C) under any other provision of Federal 

10 law. 

11 ‘‘(g) EXCLUSIVE FEDERAL JURISDICTION.—Partici12 pation in State-sponsored mediation shall not alter, 

13 change, or modify the original exclusive jurisdiction of 

14 United States courts, as set forth in this Act. 

15 ‘‘(h) COST LIMITATION.—Nothing in this section 

16 shall be construed to require the Administrator or a rep17 resentative of the Administrator to pay additional medi18 ation fees relating to flood insurance claims associated 

19 with a State-sponsored mediation program in which such 

20 representative of the Administrator participates. 

21 ‘‘(i) EXCEPTION.—In the case of the occurrence of 

22 a major disaster that results in flood damage claims under 

23 the national flood insurance program and that does not 

24 result in any loss covered by a personal lines residential 

25 property insurance policy— 

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1 ‘‘(1) this section shall not apply; and 

2 ‘‘(2) the provisions of the standard flood insur3 ance policy under the national flood insurance pro4 gram and the appeals process established under sec5 tion 205 of the Bunning-Bereuter-Blumenauer 

6 Flood Insurance Reform Act of 2004 (42 U.S.C. 

7 4011 note) and the regulations issued pursuant to 

8 such section shall apply exclusively. 

9 ‘‘(j) REPRESENTATIVES OF THE ADMINISTRATOR.— 

10 For purposes of this section, the term ‘representatives of 

11 the Administrator’ means representatives of the national 

12 flood insurance program who participate in the appeals 

13 process established under section 205 of the Bunning-Be14 reuter-Blumenauer Flood Insurance Reform Act of 2004 

15 (42 U.S.C. 4011 note).’’. 

16 SEC. 127. ADDITIONAL AUTHORITY OF FEMA TO COLLECT 

17 INFORMATION ON CLAIMS PAYMENTS. 

18 (a) IN GENERAL.—The Administrator shall collect, 

19 from property and casualty insurance companies that are 

20 authorized by the Administrator to participate in the 

21 Write Your Own program any information and data need22 ed to determine the accuracy of the resolution of flood 

23 claims filed on any property insured with a standard flood 

24 insurance policy obtained under the program that was 

25 subject to a flood. 

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1 (b) TYPE OF INFORMATION TO BE COLLECTED.— 

2 The information and data to be collected under subsection 

3 (a) may include— 

4 (1) any adjuster estimates made as a result of 

5 flood damage, and if the insurance company also in6 sures the property for wind damage— 

7 (A) any adjuster estimates for both wind 

8 and flood damage; 

9 (B) the amount paid to the property owner 

10 for wind and flood claims; 

11 (C) the total amount paid to the policy12 holder for damages as a result of the event that 

13 caused the flooding and other losses; 

14 (2) any amounts paid to the policyholder by the 

15 insurance company for damages to the insured prop16 erty other than flood damages; and 

17 (3) the total amount paid to the policyholder by 

18 the insurance company for all damages incurred to 

19 the insured property as a result of the flood. 

20 SEC. 128. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF 

21 INSURANCE COMPANIES. 

22 (a) SUBMISSION OF BIENNIAL REPORTS.— 

23 (1) TO THE ADMINISTRATOR.—Not later than 

24 20 days after the date of the enactment of this Act, 

25 each property and casualty insurance company that 

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1 is authorized by the Administrator to participate in 

2 the Write Your Own program shall submit to the 

3 Administrator any biennial report required by the 

4 Federal Emergency Management Agency to be pre5 pared in the prior 5 years by such company. 

6 (2) TO GAO.—Not later than 10 days after the 

7 submission of the biennial reports under paragraph 

8 (1), the Administrator shall submit all such reports 

9 to the Comptroller General of the United States. 

10 (3) NOTICE TO CONGRESS OF FAILURE TO COM11 PLY.—The Administrator shall notify and report to 

12 the Committee on Banking, Housing, and Urban Af13 fairs of the Senate and the Committee on Financial 

14 Services of the House of Representatives on any 

15 property and casualty insurance company partici16 pating in the Write Your Own program that failed 

17 to submit its biennial reports as required under 

18 paragraph (1). 

19 (4) FAILURE TO COMPLY.—A property and cas20 ualty insurance company that is authorized by the 

21 Administrator to participate in the Write Your Own 

22 program which fails to comply with the reporting re23 quirement under this subsection or the requirement 

24 under section 62.23(j)(1) of title 44, Code of Fed25 eral Regulations (relating to biennial audit of the 

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1 flood insurance financial statements) shall be subject 

2 to a civil penalty in an amount equal to $1,000 per 

3 day for each day that the company remains in non4 compliance with either such requirement. 

5 (b) METHODOLOGY TO DETERMINE REIMBURSED

6 EXPENSES.—Not later than 180 days after the date of 

7 the enactment of this Act, the Administrator shall develop 

8 a methodology for determining the appropriate amounts 

9 that participating property and casualty insurance compa10 nies should be reimbursed for selling, writing, and serv11 icing flood insurance policies and adjusting flood insur12 ance claims on behalf of the National Flood Insurance 

13 Program. The methodology shall be developed using actual 

14 expense data for the flood insurance line and can be de15 rived from— 

16 (1) flood insurance expense data produced by 

17 participating property and casualty insurance com18 panies; 

19 (2) flood insurance expense data collected by 

20 the National Association of Insurance Commis21 sioners; or 

22 (3) a combination of the methodologies de23 scribed in paragraphs (1) and (2). 

24 (c) SUBMISSION OF EXPENSE REPORTS.—To develop 

25 the methodology established under subsection (b), the Admstockstill on DSK4VPTVN1PROD with BILLS

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1 ministrator may require each property and casualty insur2 ance company participating in the Write Your Own pro3 gram to submit a report to the Administrator, in a format 

4 determined by the Administrator and within 60 days of 

5 the request, that details the expense levels of each such 

6 company for selling, writing, and servicing standard flood 

7 insurance policies and adjusting and servicing claims. 

8 (d) FEMA RULEMAKING ON REIMBURSEMENT OF

9 EXPENSES UNDER THE WYO PROGRAM.—Not later than 

10 12 months after the date of the enactment of this Act, 

11 the Administrator shall conduct a rulemaking proceeding 

12 to formulate revised expense reimbursements to property 

13 and casualty insurance companies participating in the 

14 Write Your Own program for their expenses (including 

15 their operating and administrative expenses for adjust16 ment of claims) in selling, writing, and servicing standard 

17 flood insurance policies, including how such companies 

18 shall be reimbursed in both catastrophic and noncata19 strophic years. Such reimbursements shall be structured 

20 to ensure reimbursements track the actual expenses, in21 cluding standard business costs and operating expenses, 

22 of such companies as close as practicably possible. 

23 (e) REPORT OF THE ADMINISTRATOR.—Not later 

24 than 60 days after the effective date of any final rule es25 tablished pursuant to subsection (d), the Administrator 

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1 shall submit to the Committee on Banking, Housing, and 

2 Urban Affairs of the Senate and the Committee on Finan3 cial Services of the House of Representatives a report con4 taining— 

5 (1) the specific rationale and purposes of such 

6 rule; 

7 (2) the reasons for the adoption of the policies 

8 contained in such rule; and 

9 (3) the degree to which such rule accurately 

10 represents the true operating costs and expenses of 

11 property and casualty insurance companies partici12 pating in the Write Your Own program. 

13 (f) GAO STUDY AND REPORT ON EXPENSES OF

14 WYO PROGRAM.— 

15 (1) STUDY.—Not later than 180 days after the 

16 effective date of the final rule established pursuant 

17 to subsection (d), the Comptroller General of the 

18 United States shall— 

19 (A) conduct a study on the efficacy, ade20 quacy, and sufficiency of the final rules estab21 lished pursuant to subsection (d); and 

22 (B) report to the Committee on Banking, 

23 Housing, and Urban Affairs of the Senate and 

24 the Committee on Financial Services of the 

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1 House of Representatives on the findings of the 

2 study conducted under subparagraph (A). 

3 (2) GAO AUTHORITY.—In conducting the study 

4 and report required under paragraph (1), the Comp5 troller General— 

6 (A) may use any previous findings, studies, 

7 or reports that the Comptroller General pre8 viously completed on the Write Your Own pro9 gram; 

10 (B) shall determine if— 

11 (i) the final rules established pursuant 

12 to subsection (d) allow the Federal Emer13 gency Management Agency to access ade14 quate information regarding the actual ex15 penses of property and casualty insurance 

16 companies participating in the Write Your 

17 Own program; and 

18 (ii) the actual reimbursements paid 

19 out under the final rule established in sub20 section (d) accurately reflect the expenses 

21 reported by property and casualty insur22 ance companies participating in the Write 

23 Your Own program, including the standard 

24 business costs and operating expenses of 

25 such companies; and 

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1 (C) shall analyze the effect of such rules 

2 on the level of participation of property and 

3 casualty insurers in the Write Your Own pro4 gram. 

5 SEC. 129. MITIGATION. 

6 (a) MITIGATION ASSISTANCE GRANTS.—Section 

7 1366 of the National Flood Insurance Act of 1968 (42 

8 U.S.C. 4104c) is amended— 

9 (1) by striking subsections (b), (d), (f), (g), (h), 

10 (k), and (m); 

11 (2) by redesignating subsections (c), (e), (i), 

12 and (j) as subsections (b), (c), (e), and (f), respec13 tively; 

14 (3) in subsection (a), by striking the last sen15 tence and inserting the following: ‘‘Such financial 

16 assistance shall be made available— 

17 ‘‘(1) to States and communities in the form of 

18 grants under this section for carrying out mitigation 

19 activities; 

20 ‘‘(2) to States and communities in the form of 

21 grants under this section for carrying out mitigation 

22 activities that reduce flood damage to severe repet23 itive loss structures; and 

24 ‘‘(3) to property owners in the form of direct 

25 grants under this section for carrying out mitigation 

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1 activities that reduce flood damage to individual 

2 structures for which 2 or more claim payments for 

3 losses have been made under flood insurance cov4 erage under this title if the Administrator, after con5 sultation with the State and community, determines 

6 that neither the State nor community in which such 

7 a structure is located has the capacity to manage 

8 such grants.’’; 

9 (4) in subsection (b), as so redesignated, in the 

10 first sentence— 

11 (A) by striking ‘‘and provides protection 

12 against’’ and inserting ‘‘provides for reduction 

13 of’’; and 

14 (B) by inserting before the period at the 

15 end the following: ‘‘, and may be included in a 

16 multi-hazard mitigation plan’’; 

17 (5) in subsection (c), as so redesignated— 

18 (A) in paragraph (1), by striking ‘‘(1) USE

19 OF AMOUNTS.—’’ and all that follows through 

20 the end of the first sentence and inserting the 

21 following: 

22 ‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP23 PROVED MITIGATION PLAN.—Amounts provided 

24 under this section may be used only for mitigation 

25 activities that are consistent with mitigation plans 

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1 that are approved by the Administrator and identi2 fied under paragraph (4).’’; 

3 (B) by striking paragraphs (2), (3), and 

4 (4) and inserting the following new paragraphs: 

5 ‘‘(2) REQUIREMENTS OF TECHNICAL FEASI6 BILITY, COST EFFECTIVENESS, AND INTEREST OF

7 NFIF.—The Administrator may approve only mitiga8 tion activities that the Administrator determines are 

9 technically feasible and cost-effective and in the in10 terest of, and represent savings to, the National 

11 Flood Insurance Fund. In making such determina12 tions, the Administrator shall take into consideration 

13 recognized ancillary benefits. 

14 ‘‘(3) PRIORITY FOR MITIGATION ASSISTANCE.— 

15 In providing grants under this section for mitigation 

16 activities, the Administrator shall give priority for 

17 funding to activities that the Administrator deter18 mines will result in the greatest savings to the Na19 tional Flood Insurance Fund, including activities 

20 for— 

21 ‘‘(A) severe repetitive loss structures; 

22 ‘‘(B) repetitive loss structures; and 

23 ‘‘(C) other subsets of structures as the Ad24 ministrator may establish.’’; 

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1 (C) by redesignating paragraph (5) as 

2 paragraph (4); 

3 (D) in paragraph (4), as so redesignated— 

4 (i) in the matter preceding subpara5 graph (A), by striking ‘‘The Director’’ and 

6 all that follows through ‘‘Such activities 

7 may’’ and inserting ‘‘Eligible activities 

8 under a mitigation plan may’’; 

9 (ii) by striking subparagraphs (E) and 

10 (H); 

11 (iii) by redesignating subparagraphs 

12 (D), (F), and (G) as subparagraphs (E), 

13 (G), and (H), respectively; 

14 (iv) by inserting after subparagraph 

15 (C) the following new subparagraph: 

16 ‘‘(D) elevation, relocation, or floodproofing 

17 of utilities (including equipment that serve 

18 structures);’’; 

19 (v) by inserting after subparagraph 

20 (E), as so redesignated, the following new 

21 subparagraph: 

22 ‘‘(F) the development or update of mitiga23 tion plans by a State or community which meet 

24 the planning criteria established by the Admin25 istrator, except that the amount from grants 

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1 under this section that may be used under this 

2 subparagraph may not exceed $50,000 for any 

3 mitigation plan of a State or $25,000 for any 

4 mitigation plan of a community;’’; 

5 (vi) in subparagraph (H); as so redes6 ignated, by striking ‘‘and’’ at the end; and 

7 (vii) by adding at the end the fol8 lowing new subparagraphs: 

9 ‘‘(I) other mitigation activities not de10 scribed in subparagraphs (A) through (G) or 

11 the regulations issued under subparagraph (H), 

12 that are described in the mitigation plan of a 

13 State or community; and 

14 ‘‘(J) without regard to the requirements 

15 under subsections (d)(1) and (d)(2), and if the 

16 State applied for and was awarded at least 

17 $1,000,000 in grants available under this sec18 tion in the prior fiscal year, technical assistance 

19 to communities to identify eligible activities, to 

20 develop grant applications, and to implement 

21 grants awarded under this section, not to ex22 ceed $50,000 to any one State in any fiscal 

23 year.’’; 

24 (E) by adding at the end the following new 

25 paragraph: 

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1 ‘‘(5) ELIGIBILITY OF DEMOLITION AND RE2 BUILDING OF PROPERTIES.—The Administrator 

3 shall consider as an eligible activity the demolition 

4 and rebuilding of properties to at least base flood 

5 elevation or greater, if required by the Administrator 

6 or if required by any State regulation or local ordi7 nance, and in accordance with criteria established by 

8 the Administrator.’’; and 

9 (6) by inserting after subsection (c), as so re10 designated, the following new subsection: 

11 ‘‘(d) MATCHING REQUIREMENT.—The Administrator 

12 may provide grants for eligible mitigation activities as fol13 lows: 

14 ‘‘(1) SEVERE REPETITIVE LOSS STRUCTURES.— 

15 In the case of mitigation activities to severe repet16 itive loss structures, in an amount up to 100 percent 

17 of all eligible costs. 

18 ‘‘(2) REPETITIVE LOSS STRUCTURES.—In the 

19 case of mitigation activities to repetitive loss struc20 tures, in an amount up to 90 percent of all eligible 

21 costs. 

22 ‘‘(3) OTHER MITIGATION ACTIVITIES.—In the 

23 case of all other mitigation activities, in an amount 

24 up to 75 percent of all eligible costs.’’; 

25 (7) in subsection (e)(2), as so redesignated— 

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1 (A) by striking ‘‘certified under subsection 

2 (g)’’ and inserting ‘‘required under subsection 

3 (d)’’; and 

4 (B) by striking ‘‘3 times the amount’’ and 

5 inserting ‘‘the amount’’; 

6 (8) in subsection (f)(1), as so redesignated, by 

7 striking ‘‘Riegle Community Development and Regu8 latory Improvement Act of 1994’’ and inserting 

9 ‘‘Flood Insurance Reform and Modernization Act of 

10 2011’’; and 

11 (9) by adding at the end the following new sub12 sections: 

13 ‘‘(g) FAILURE TO MAKE GRANT AWARD WITHIN 5 

14 YEARS.—For any application for a grant under this sec15 tion for which the Administrator fails to make a grant 

16 award within 5 years of the date of the application, the 

17 grant application shall be considered to be denied and any 

18 funding amounts allocated for such grant applications 

19 shall remain in the National Flood Mitigation Fund under 

20 section 1367 of this title and shall be made available for 

21 grants under this section. 

22 ‘‘(h) DEFINITIONS.—For purposes of this section, the 

23 following definitions shall apply: 

24 ‘‘(1) COMMUNITY.—The term ‘community’ 

25 means— 

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1 ‘‘(A) a political subdivision that— 

2 ‘‘(i) has zoning and building code ju3 risdiction over a particular area having 

4 special flood hazards; and 

5 ‘‘(ii) is participating in the national 

6 flood insurance program; or 

7 ‘‘(B) a political subdivision of a State, or 

8 other authority, that is designated by political 

9 subdivisions, all of which meet the requirements 

10 of subparagraph (A), to administer grants for 

11 mitigation activities for such political subdivi12 sions. 

13 ‘‘(2) REPETITIVE LOSS STRUCTURE.—The term 

14 ‘repetitive loss structure’ has the meaning given 

15 such term in section 1370. 

16 ‘‘(3) SEVERE REPETITIVE LOSS STRUCTURE.— 

17 The term ‘severe repetitive loss structure’ means a 

18 structure that— 

19 ‘‘(A) is covered under a contract for flood 

20 insurance made available under this title; and 

21 ‘‘(B) has incurred flood-related damage— 

22 ‘‘(i) for which 4 or more separate 

23 claims payments have been made under 

24 flood insurance coverage under this title, 

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1 ceeding $5,000, and with the cumulative 

2 amount of such claims payments exceeding 

3 $20,000; or 

4 ‘‘(ii) for which at least 2 separate 

5 claims payments have been made under 

6 such coverage, with the cumulative amount 

7 of such claims exceeding the value of the 

8 insured structure.’’. 

9 (b) ELIMINATION OF GRANTS PROGRAM FOR REPET10 ITIVE INSURANCE CLAIMS PROPERTIES.—Chapter I of 

11 the National Flood Insurance Act of 1968 is amended by 

12 striking section 1323 (42 U.S.C. 4030). 

13 (c) ELIMINATION OF PILOT PROGRAM FOR MITIGA14 TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Chap15 ter III of the National Flood Insurance Act of 1968 is 

16 amended by striking section 1361A (42 U.S.C. 4102a). 

17 (d) NATIONAL FLOOD INSURANCE FUND.—Section 

18 1310(a) of the National Flood Insurance Act of 1968 (42 

19 U.S.C. 4017(a)) is amended— 

20 (1) in paragraph (6), by inserting ‘‘and’’ after 

21 the semicolon; 

22 (2) in paragraph (7), by striking the semicolon 

23 and inserting a period; and 

24 (3) by striking paragraphs (8) and (9). 

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1 (e) NATIONAL FLOOD MITIGATION FUND.—Section 

2 1367 of the National Flood Insurance Act of 1968 (42 

3 U.S.C. 4104d) is amended— 

4 (1) in subsection (b)— 

5 (A) by striking paragraph (1) and insert6 ing the following new paragraph: 

7 ‘‘(1) in each fiscal year, amounts from the Na8 tional Flood Insurance Fund not to exceed 

9 $90,000,000 and to remain available until expended, 

10 of which— 

11 ‘‘(A) not more than $40,000,000 shall be 

12 available pursuant to subsection (a) of this sec13 tion for assistance described in section 

14 1366(a)(1); 

15 ‘‘(B) not more than $40,000,000 shall be 

16 available pursuant to subsection (a) of this sec17 tion for assistance described in section 

18 1366(a)(2); and 

19 ‘‘(C) not more than $10,000,000 shall be 

20 available pursuant to subsection (a) of this sec21 tion for assistance described in section 

22 1366(a)(3);’’; and 

23 (B) in paragraph (3), by striking ‘‘section 

24 1366(i)’’ and inserting ‘‘section 1366(e)’’; 

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1 (2) in subsection (c), by striking ‘‘sections 1366 

2 and 1323’’ and inserting ‘‘section 1366’’; 

3 (3) by redesignating subsections (d) and (e) as 

4 subsections (f) and (g), respectively; and 

5 (4) by inserting after subsection (c) the fol6 lowing new subsections: 

7 ‘‘(d) PROHIBITION ON OFFSETTING COLLECTIONS.— 

8 Notwithstanding any other provision of this title, amounts 

9 made available pursuant to this section shall not be sub10 ject to offsetting collections through premium rates for 

11 flood insurance coverage under this title. 

12 ‘‘(e) CONTINUED AVAILABILITY AND REALLOCA13 TION.—Any amounts made available pursuant to subpara14 graph (A), (B), or (C) of subsection (b)(1) that are not 

15 used in any fiscal year shall continue to be available for 

16 the purposes specified in such subparagraph of subsection 

17 (b)(1) pursuant to which such amounts were made avail18 able, unless the Administrator determines that realloca19 tion of such unused amounts to meet demonstrated need 

20 for other mitigation activities under section 1366 is in the 

21 best interest of the National Flood Insurance Fund.’’. 

22 (f) INCREASED COST OF COMPLIANCE COVERAGE.— 

23 Section 1304(b)(4) of the National Flood Insurance Act 

24 of 1968 (42 U.S.C. 4011(b)(4)) is amended— 

25 (1) by striking subparagraph (B); and 

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1 (2) by redesignating subparagraphs (C), (D), 

2 and (E) as subparagraphs (B), (C), and (D), respec3 tively. 

4 SEC. 130. FLOOD PROTECTION STRUCTURE ACCREDITA5 TION TASK FORCE. 

6 (a) DEFINITIONS.—In this section— 

7 (1) the term ‘‘flood protection structure accredi8 tation requirements’’ means the requirements estab9 lished under section 65.10 of title 44, Code of Fed10 eral Regulations, for levee systems to be recognized 

11 on maps created for purposes of the National Flood 

12 Insurance Program; 

13 (2) the term ‘‘National Committee on Levee 

14 Safety’’ means the Committee on Levee Safety es15 tablished under section 9003 of the National Levee 

16 Safety Act of 2007 (33 U.S.C. 3302); and 

17 (3) the term ‘‘task force’’ means the Flood Pro18 tection Structure Accreditation Task Force estab19 lished under subsection (b). 

20 (b) ESTABLISHMENT.— 

21 (1) IN GENERAL.—The Administrator and the 

22 Secretary of the Army, acting through the Chief of 

23 Engineers, in cooperation with the National Com24 mittee on Levee Safety, shall jointly establish a 

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1 Flood Protection Structure Accreditation Task 

2 Force. 

3 (2) DUTIES.— 

4 (A) DEVELOPING PROCESS.—The task 

5 force shall develop a process to better align the 

6 information and data collected by or for the 

7 United States Army Corps of Engineers under 

8 the Inspection of Completed Works Program 

9 with the flood protection structure accreditation 

10 requirements so that— 

11 (i) information and data collected for 

12 either purpose can be used interchange13 ably; and 

14 (ii) information and data collected by 

15 or for the United States Army Corps of 

16 Engineers under the Inspection of Com17 pleted Works Program is sufficient to sat18 isfy the flood protection structure accredi19 tation requirements. 

20 (B) GATHERING RECOMMENDATIONS.— 

21 The task force shall gather, and consider in the 

22 process developed under subparagraph (A), rec23 ommendations from interested persons in each 

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1 creditation requirements described in subpara2 graph (A). 

3 (3) CONSIDERATIONS.—In developing the proc4 ess under paragraph (2), the task force shall con5 sider changes to— 

6 (A) the information and data collected by 

7 or for the United States Army Corps of Engi8 neers under the Inspection of Completed Works 

9 Program; and 

10 (B) the flood protection structure accredi11 tation requirements. 

12 (4) RULE OF CONSTRUCTION.—Nothing in this 

13 section shall be construed to require a reduction in 

14 the level of public safety and flood control provided 

15 by accredited levees, as determined by the Adminis16 trator for purposes of this section. 

17 (c) IMPLEMENTATION.—The Administrator and the 

18 Secretary of the Army, acting through the Chief of Engi19 neers, shall implement the process developed by the task 

20 force under subsection (b). 

21 (d) REPORTS.—The Administrator and the Secretary 

22 of the Army, acting through the Chief of Engineers, in 

23 cooperation with the National Committee on Levee Safety, 

24 shall jointly submit to the Committee on Banking, Hous25 ing, and Urban Affairs and the Committee on Environmstockstill on DSK4VPTVN1PROD with BILLS

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1 ment and Public Works of the Senate and the Committee 

2 on Financial Services, the Committee on Transportation 

3 and Infrastructure, and the Committee on Natural Re4 sources of the House of Representatives reports con5 cerning the activities of the task force and the implemen6 tation of the process developed by the task force under 

7 subsection (b), including— 

8 (1) an interim report, not later than 180 days 

9 after the date of enactment of this Act; and 

10 (2) a final report, not later than 1 year after 

11 the date of enactment of this Act. 

12 (e) TERMINATION.—The task force shall terminate 

13 on the date of submission of the report under subsection 

14 (d)(2). 

15 SEC. 131. FLOOD IN PROGRESS DETERMINATIONS. 

16 (a) REPORT.— 

17 (1) REVIEW.—The Administrator shall review— 

18 (A) the processes and procedures for deter19 mining that a flood event has commenced or is 

20 in progress for purposes of flood insurance cov21 erage made available under the National Flood 

22 Insurance Program; 

23 (B) the processes and procedures for pro24 viding public notification that such a flood 

25 event has commenced or is in progress; 

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1 (C) the processes and procedures regarding 

2 the timing of public notification of flood insur3 ance requirements and availability; and 

4 (D) the effects and implications that 

5 weather conditions, including rainfall, snowfall, 

6 projected snowmelt, existing water levels, and 

7 other conditions, have on the determination 

8 that a flood event has commenced or is in 

9 progress. 

10 (2) REPORT.—Not later than 6 months after 

11 the date of enactment of this Act, the Administrator 

12 shall submit a report to Congress that describes— 

13 (A) the results and conclusions of the re14 view under paragraph (1); and 

15 (B) any actions taken, or proposed actions 

16 to be taken, by the Administrator to provide for 

17 more precise and technical processes and proce18 dures for determining that a flood event has 

19 commenced or is in progress. 

20 (b) EFFECTIVE DATE OF POLICIES COVERING PROP21 ERTIES AFFECTED BY FLOODING OF THE MISSOURI

22 RIVER IN 2011.— 

23 (1) ELIGIBLE COVERAGE.—For purposes of this 

24 subsection, the term ‘‘eligible coverage’’ means cov25 erage under a new contract for flood insurance covmstockstill on DSK4VPTVN1PROD with BILLS

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1 erage under the National Flood Insurance Program, 

2 or a modification to coverage under an existing flood 

3 insurance contract, for property damaged by the 

4 flooding of the Missouri River that commenced on 

5 June 1, 2011, that was purchased or made during 

6 the period beginning May 1, 2011, and ending June 

7 6, 2011. 

8 (2) EFFECTIVE DATES.—Notwithstanding sec9 tion 1306(c) of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4013(c)), or any other provision of 

11 law, any eligible coverage shall— 

12 (A) be deemed to take effect on the date 

13 that is 30 days after the date on which all obli14 gations for the eligible coverage (including com15 pletion of the application and payment of any 

16 initial premiums owed) are satisfactorily com17 pleted; and 

18 (B) cover damage to property occurring 

19 after the effective date described in subpara20 graph (A) that resulted from the flooding of the 

21 Missouri River that commenced on June 1, 

22 2011, if the property did not suffer damage or 

23 loss as a result of such flooding before the ef24 fective date described in subparagraph (A). 

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1 SEC. 132. CLARIFICATION OF RESIDENTIAL AND COMMER2 CIAL COVERAGE LIMITS. 

3 Section 1306(b) of the National Flood Insurance Act 

4 of 1968 (42 U.S.C. 4013(b)) is amended— 

5 (1) in paragraph (2)— 

6 (A) by striking ‘‘in the case of any residen7 tial property’’ and inserting ‘‘in the case of any 

8 residential building designed for the occupancy 

9 of from one to four families’’; and 

10 (B) by striking ‘‘shall be made available to 

11 every insured upon renewal and every applicant 

12 for insurance so as to enable such insured or 

13 applicant to receive coverage up to a total 

14 amount (including such limits specified in para15 graph (1)(A)(i)) of $250,000’’ and inserting 

16 ‘‘shall be made available, with respect to any 

17 single such building, up to an aggregate liability 

18 (including such limits specified in paragraph 

19 (1)(A)(i)) of $250,000’’; and 

20 (2) in paragraph (4)— 

21 (A) by striking ‘‘in the case of any nonresi22 dential property, including churches,’’ and in23 serting ‘‘in the case of any nonresidential build24 ing, including a church,’’; and 

25 (B) by striking ‘‘shall be made available to 

26 every insured upon renewal and every applicant 

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1 for insurance, in respect to any single structure, 

2 up to a total amount (including such limit spec3 ified in subparagraph (B) or (C) of paragraph 

4 (1), as applicable) of $500,000 for each struc5 ture and $500,000 for any contents related to 

6 each structure’’ and inserting ‘‘shall be made 

7 available with respect to any single such build8 ing, up to an aggregate liability (including such 

9 limits specified in subparagraph (B) or (C) of 

10 paragraph (1), as applicable) of $500,000, and 

11 coverage shall be made available up to a total 

12 of $500,000 aggregate liability for contents 

13 owned by the building owner and $500,000 ag14 gregate liability for each unit within the build15 ing for contents owned by the tenant’’. 

16 SEC. 133. LOCAL DATA REQUIREMENT. 

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of this title, no area or community participating in 

19 the National Flood Insurance Program that is or includes 

20 a community that is identified by the Administrator as 

21 Community Identification Number 360467 and impacted 

22 by the Jamaica Bay flooding source or identified by the 

23 Administrator as Community Identification Number 

24 360495 may be or become designated as an area of special 

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1 ance Program, unless the designation is made on the basis 

2 of— 

3 (1) flood hazard analyses of hydrologic, hydrau4 lic, or coastal flood hazards that have been properly 

5 calibrated and validated, and are specific and di6 rectly relevant to the geographic area being studied; 

7 and 

8 (2) ground elevation information of sufficient 

9 accuracy and precision to meet the guidelines of the 

10 Administration for accuracy at the 95 percent con11 fidence level. 

12 (b) REMAPPING.— 

13 (1) REMAPPING REQUIRED.—If the Adminis14 trator determines that an area described in sub15 section (a) has been designated as an area of special 

16 flood hazard on the basis of information that does 

17 not comply with the requirements under subsection 

18 (a), the Administrator shall revise and update any 

19 National Flood Insurance Program rate map for the 

20 area— 

21 (A) using information that complies with 

22 the requirements under subsection (a); and 

23 (B) in accordance with the procedures es24 tablished under section 1363 of the National 

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1 Flood Insurance Act of 1968 (42 U.S.C. 4104) 

2 for flood elevation determinations. 

3 (2) DEADLINE.—The Administrator shall issue 

4 a preliminary National Flood Insurance Program 

5 rate map resulting from a revision and update re6 quired under paragraph (1) not later than 1 year 

7 after the date of enactment of this Act. 

8 (3) RISK PREMIUM RATE CLARIFICATION.—Any 

9 increase in the risk premium rate for a property in 

10 an area for which the Administrator has made a de11 termination under paragraph (1) shall be phased in, 

12 in accordance with the schedule set forth under sec13 tion 1308(h) of the National Flood Insurance Act of 

14 1968 (42 U.S.C. 4015(h)), as added by this Act. 

15 The provisions of this paragraph terminate on the 

16 effective date of the National Flood Insurance Pro17 gram rate map for the area revised and updated in 

18 accordance with paragraph (1). 

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1 SEC. 134. ELIGIBILITY FOR FLOOD INSURANCE FOR PER2 SONS RESIDING IN COMMUNITIES THAT 

3 HAVE MADE ADEQUATE PROGRESS ON THE 

4 CONSTRUCTION, RECONSTRUCTION, OR IM5 PROVEMENT OF A FLOOD PROTECTION SYS6 TEM. 

7 (a) ELIGIBILITY FOR FLOOD INSURANCE COV8 ERAGE.— 

9 (1) IN GENERAL.—Notwithstanding any other 

10 provision of law, a person residing in a community 

11 that the Administrator determines has made ade12 quate progress on the reconstruction or improvement 

13 of a flood protection system that will afford flood 

14 protection for a 100-year floodplain (without regard 

15 to the level of Federal funding of or participation in 

16 the construction, reconstruction, or improvement), 

17 shall be eligible for flood insurance coverage under 

18 the National Flood Insurance Program— 

19 (A) if the person resides in a community 

20 that is a participant in the National Flood In21 surance Program; and 

22 (B) at a risk premium rate that does not 

23 exceed the risk premium rate that would be 

24 chargeable if the flood protection system had 

25 been completed. 

26 (2) ADEQUATE PROGRESS.— 

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1 (A) RECONSTRUCTION OR IMPROVE2 MENT.—For purposes of paragraph (1), the Ad3 ministrator shall determine that a community 

4 has made adequate progress on the reconstruc5 tion or improvement of a flood protection sys6 tem if— 

7 (i) 100 percent of the project cost has 

8 been authorized; 

9 (ii) not less than 60 percent of the 

10 project cost has been secured or appro11 priated; 

12 (iii) not less than 50 percent of the 

13 flood protection system has been assessed 

14 as being without deficiencies; and 

15 (iv) the reconstruction or improve16 ment has a project schedule that does not 

17 exceed 5 years, beginning on the date on 

18 which the reconstruction or construction of 

19 the improvement commences. 

20 (B) CONSIDERATIONS.—In determining 

21 whether a flood protection system have been as22 sessed as being without deficiencies, the Admin23 istrator shall consider the requirements under 

24 section 65.10 of chapter 44, Code of Federal 

25 Regulations, or any successor thereto. 

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1 (b) TERMINATION OF ELIGIBILITY.— 

2 (1) ADEQUATE CONTINUING PROGRESS.—The 

3 Administrator shall issue rules to establish a method 

4 of determining whether a community has made ade5 quate continuing progress on the reconstruction or 

6 improvement of a flood protection system that in7 cludes— 

8 (A) a requirement that the Administrator 

9 shall— 

10 (i) consult with the owner of the flood 

11 protection system— 

12 (I) 6 months after the date of a 

13 determination under subsection (a); 

14 (II) 18 months after the date of 

15 a determination under subsection (a); 

16 and 

17 (III) 36 months after the date of 

18 a determination under subsection (a); 

19 and 

20 (ii) after each consultation under 

21 clause (i), determine whether the recon22 struction or improvement is reasonably 

23 likely to be completed in accordance with 

24 the project schedule described in sub25 section (a)(2)(A)(iv); and 

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1 (B) a requirement that, if the Adminis2 trator makes a determination under subpara3 graph (A)(ii) that reconstruction or improve4 ment is not reasonably likely to be completed in 

5 accordance with the project schedule, the Ad6 ministrator shall— 

7 (i) not later than 30 days after the 

8 date of the determination, notify the owner 

9 of the flood protection system of the deter10 mination and provide the rationale and evi11 dence for the determination; and 

12 (ii) provide the owner of the flood pro13 tection system the opportunity to appeal 

14 the determination. 

15 (2) TERMINATION.—The Administrator shall 

16 terminate the eligibility for flood insurance coverage 

17 under the National Flood Insurance Program of per18 sons residing in a community with respect to which 

19 the Administrator made a determination under sub20 section (a) if— 

21 (A) the Administrator determines that the 

22 community has not made adequate continuing 

23 progress; or 

24 (B) on the date that is 5 years after the 

25 date on which the reconstruction or construcmstockstill on DSK4VPTVN1PROD with BILLS

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1 tion of the improvement commences, the project 

2 has not been completed. 

3 (3) WAIVER.—A person whose eligibility would 

4 otherwise be terminated under paragraph (2)(B) 

5 shall continue to be eligible to purchase flood insur6 ance coverage described in subsection (a) if the Ad7 ministrator determines— 

8 (A) the community has made adequate 

9 continuing progress on the reconstruction or 

10 improvement of a flood protection system; and 

11 (B) there is a reasonable expectation that 

12 the reconstruction or improvement of the flood 

13 protection system will be completed not later 

14 than 1 year after the date of the determination 

15 under this paragraph. 

16 (4) RISK PREMIUM RATE.—If the Administrator 

17 terminates the eligibility of persons residing in a 

18 community to purchase flood insurance coverage de19 scribed in subsection (a), the Administrator shall es20 tablish an appropriate risk premium rate for flood 

21 insurance coverage under the National Flood Insur22 ance Program for persons residing in the community 

23 that purchased flood insurance coverage before the 

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1 fect, taking into consideration the then-current state 

2 of the flood protection system. 

3 SEC. 135. STUDIES AND REPORTS. 

4 (a) REPORT ON EXPANDING THE NATIONAL FLOOD

5 INSURANCE PROGRAM.—Not later than 1 year after the 

6 date of the enactment of this Act, the Comptroller General 

7 of the United States shall conduct a study and submit a 

8 report to the Committee on Banking, Housing, and Urban 

9 Affairs of the Senate and the Committee on Financial 

10 Services of the House of Representatives, on— 

11 (1) the number of flood insurance policy holders 

12 currently insuring— 

13 (A) a residential structure up to the max14 imum available coverage amount, as established 

15 in section 61.6 of title 44, Code of Federal Reg16 ulations, of— 

17 (i) $250,000 for the structure; and 

18 (ii) $100,000 for the contents of such 

19 structure; or 

20 (B) a commercial structure up to the max21 imum available coverage amount, as established 

22 in section 61.6 of title 44, Code of Federal Reg23 ulations, of $500,000; 

24 (2) the increased losses the National Flood In25 surance Program would have sustained during the 

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1 2004 and 2005 hurricane season if the National 

2 Flood Insurance Program had insured all policy3 holders up to the maximum conforming loan limit 

4 for fiscal year 2006 of $417,000, as established 

5 under section 302(b)(2) of the Federal National 

6 Mortgage Association Charter Act (12 U.S.C. 

7 1717(b)(2)); 

8 (3) the availability in the private marketplace of 

9 flood insurance coverage in amounts that exceed the 

10 current limits of coverage amounts established in 

11 section 61.6 of title 44, Code of Federal Regula12 tions; and 

13 (4) what effect, if any— 

14 (A) raising the current limits of coverage 

15 amounts established in section 61.6 of title 44, 

16 Code of Federal Regulations, would have on the 

17 ability of private insurers to continue providing 

18 flood insurance coverage; and 

19 (B) reducing the current limits of coverage 

20 amounts established in section 61.6 of title 44, 

21 Code of Federal Regulations, would have on the 

22 ability of private insurers to provide sufficient 

23 flood insurance coverage to effectively replace 

24 the current level of flood insurance coverage 

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1 being provided under the National Flood Insur2 ance Program. 

3 (b) REPORT OF THE ADMINISTRATOR ON ACTIVITIES

4 UNDER THE NATIONAL FLOOD INSURANCE PROGRAM.— 

5 (1) IN GENERAL.—The Administrator shall, on 

6 an annual basis, submit a full report on the oper7 ations, activities, budget, receipts, and expenditures 

8 of the National Flood Insurance Program for the 

9 preceding 12-month period to the Committee on 

10 Banking, Housing, and Urban Affairs of the Senate 

11 and the Committee on Financial Services of the 

12 House of Representatives. 

13 (2) TIMING.—Each report required under para14 graph (1) shall be submitted to the committees de15 scribed in paragraph (1) not later than 3 months 

16 following the end of each fiscal year. 

17 (3) CONTENTS.—Each report required under 

18 paragraph (1) shall include— 

19 (A) the current financial condition and in20 come statement of the National Flood Insur21 ance Fund established under section 1310 of 

22 the National Flood Insurance Act of 1968 (42 

23 U.S.C. 4017), including— 

24 (i) premiums paid into such Fund; 

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1 (ii) policy claims against such Fund; 

2 and 

3 (iii) expenses in administering such 

4 Fund; 

5 (B) the number and face value of all poli6 cies issued under the National Flood Insurance 

7 Program that are in force; 

8 (C) a description and summary of the 

9 losses attributable to repetitive loss structures; 

10 (D) a description and summary of all 

11 losses incurred by the National Flood Insurance 

12 Program due to— 

13 (i) hurricane related damage; and 

14 (ii) nonhurricane related damage; 

15 (E) the amounts made available by the Ad16 ministrator for mitigation assistance under sec17 tion 1366(c)(4) of the National Flood Insur18 ance Act of 1968 (42 U.S.C. 4104c(c)(4) for 

19 the purchase of properties substantially dam20 aged by flood for that fiscal year, and the ac21 tual number of flood damaged properties pur22 chased and the total cost expended to purchase 

23 such properties; 

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1 (F) the estimate of the Administrator as to 

2 the average historical loss year, and the basis 

3 for that estimate; 

4 (G) the estimate of the Administrator as to 

5 the maximum amount of claims that the Na6 tional Flood Insurance Program would have to 

7 expend in the event of a catastrophic year; 

8 (H) the average— 

9 (i) amount of insurance carried per 

10 flood insurance policy; 

11 (ii) premium per flood insurance pol12 icy; and 

13 (iii) loss per flood insurance policy; 

14 and 

15 (I) the number of claims involving dam16 ages in excess of the maximum amount of flood 

17 insurance available under the National Flood 

18 Insurance Program and the sum of the amount 

19 of all damages in excess of such amount. 

20 (c) GAO STUDY ON PRE-FIRM STRUCTURES.—Not 

21 later than 1 year after the date of the enactment of this 

22 Act, the Comptroller General of the United States shall 

23 conduct a study and submit a report to the Committee 

24 on Banking, Housing, and Urban Affairs of the Senate 

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1 and the Committee on Financial Services of the House of 

2 Representatives, on the— 

3 (1) composition of the remaining pre-FIRM 

4 structures that are explicitly receiving discounted 

5 premium rates under section 1307 of the National 

6 Flood Insurance Act of 1968 (42 U.S.C. 4014), in7 cluding the historical basis for the receipt of such 

8 subsidy and the extent to which pre-FIRM struc9 tures are currently owned by the same owners of the 

10 property at the time of the original FIRM; 

11 (2) number and fair market value of such struc12 tures; 

13 (3) respective income level of the owners of 

14 such structures; 

15 (4) number of times each such structure has 

16 been sold since 1968, including specific dates, sales 

17 price, and any other information the Secretary de18 termines appropriate; 

19 (5) total losses incurred by such structures 

20 since the establishment of the National Flood Insur21 ance Program compared to the total losses incurred 

22 by all structures that are charged a nondiscounted 

23 premium rate; 

24 (6) total cost of foregone premiums since the 

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1 gram, as a result of the subsidies provided to such 

2 structures; 

3 (7) annual cost as a result of the subsidies pro4 vided to such structures; 

5 (8) the premium income collected and the losses 

6 incurred by the National Flood Insurance Program 

7 as a result of such explicitly subsidized structures 

8 compared to the premium income collected and the 

9 losses incurred by such Program as a result of struc10 tures that are charged a nondiscounted premium 

11 rate, on a State-by-State basis; and 

12 (9) the options for eliminating the subsidy to 

13 such structures. 

14 (d) GAO REVIEW OF FEMA CONTRACTORS.—The 

15 Comptroller General of the United States, in conjunction 

16 with the Office of the Inspector General of the Depart17 ment of Homeland Security, shall— 

18 (1) conduct a review of the 3 largest contrac19 tors the Administrator uses in administering the Na20 tional Flood Insurance Program; and 

21 (2) not later than 18 months after the date of 

22 the enactment of this Act, submit a report on the 

23 findings of such review to the Administrator, the 

24 Committee on Banking, Housing, and Urban Affairs 

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1 of the Senate, and the Committee on Financial Serv2 ices of the House of Representatives. 

3 SEC. 136. REINSURANCE. 

4 (a) REINSURANCE ASSESSMENT.— 

5 (1) PRIVATE MARKET PRICING ASSESSMENT.— 

6 Not later than 12 months after the date of the en7 actment of this Act, the Administrator shall submit 

8 to Congress a report that— 

9 (A) assesses the capacity of the private re10 insurance, capital, and financial markets to as11 sist communities, on a voluntary basis, in man12 aging the full range of financial risks associated 

13 with flooding by requesting proposals to assume 

14 a portion of the insurance risk of the National 

15 Flood Insurance Program; 

16 (B) describes any responses to the request 

17 for proposals under subparagraph (A); 

18 (C) assesses whether the rates and terms 

19 contained in any proposals received by the Ad20 ministrator are— 

21 (i) reasonable and appropriate; and 

22 (ii) in an amount sufficient to main23 tain the ability of the National Flood In24 surance Program to pay claims; 

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1 (D) describes the extent to which carrying 

2 out the proposals received by the Administrator 

3 would minimize the likelihood that the Adminis4 trator would use the borrowing authority under 

5 section 1309 of the National Flood Insurance 

6 Act of 1968 (42 U.S.C. 4016); 

7 (E) describes fluctuations in historical re8 insurance rates; and 

9 (F) includes an economic cost-benefit anal10 ysis of the impact on the National Flood Insur11 ance Program if the Administrator were to ex12 ercise the authority under section 1335(a)(2) of 

13 the National Flood Insurance Act of 1968 (42 

14 U.S.C. 4055(a)(2)), as added by this section, to 

15 secure reinsurance of coverage provided by the 

16 National Flood Insurance Program from the 

17 private market. 

18 (2) PROTOCOL FOR RELEASE OF DATA.—The 

19 Administrator shall develop a protocol, including 

20 adequate privacy protections, to provide for the re21 lease of data sufficient to conduct the assessment re22 quired under paragraph (1). 

23 (b) REINSURANCE.—The National Flood Insurance 

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

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1 (1) in section 1331(a)(2) (42 U.S.C. 

2 4051(a)(2)), by inserting ‘‘, including as reinsurance 

3 of coverage provided by the flood insurance pro4 gram’’ before ‘‘, on such terms’’; 

5 (2) in section 1332(c)(2) (42 U.S.C. 

6 4052(c)(2)), by inserting ‘‘or reinsurance’’ after 

7 ‘‘flood insurance coverage’’; 

8 (3) in section 1335(a) (42 U.S.C. 4055(a))— 

9 (A) by striking ‘‘The Director’’ and insert10 ing the following: 

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

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

13 ‘‘(2) PRIVATE REINSURANCE.—The Adminis14 trator is authorized to secure reinsurance of cov15 erage provided by the flood insurance program from 

16 the private market at rates and on terms determined 

17 by the Administrator to be reasonable and appro18 priate, in an amount sufficient to maintain the abil19 ity of the program to pay claims.’’; 

20 (4) in section 1346(a) (12 U.S.C. 4082(a))— 

21 (A) in the matter preceding paragraph (1), 

22 by inserting after ‘‘for the purpose of’’ the fol23 lowing: ‘‘securing reinsurance of insurance cov24 erage provided by the program or for the pur25 pose of’’; 

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1 (B) in paragraph (1)— 

2 (i) by striking ‘‘estimating’’ and in3 serting ‘‘Estimating’’; and 

4 (ii) by striking the semicolon at the 

5 end and inserting a period; 

6 (C) in paragraph (2)— 

7 (i) by striking ‘‘receiving’’ and insert8 ing ‘‘Receiving’’; and 

9 (ii) by striking the semicolon at the 

10 end and inserting a period; 

11 (D) in paragraph (3)— 

12 (i) by striking ‘‘making’’ and inserting 

13 ‘‘Making’’; and 

14 (ii) (ii) by striking ‘‘ ‘; and’ ’’ and in15 serting a period; 

16 (E) by redesignating paragraph (4) as 

17 paragraph (5); 

18 (F) in paragraph (5), as so redesignated, 

19 by striking ‘‘otherwise’’ and inserting ‘‘Other20 wise’’; and 

21 (G) by inserting after paragraph (3) the 

22 following new paragraph: 

23 ‘‘(4) Placing reinsurance coverage on insurance 

24 provided by such program;’’; and 

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1 (5) in section 1370(a)(3) (42 U.S.C. 

2 4121(a)(3)), by striking ‘‘include any’’ and all that 

3 follows and inserting the following: ‘‘include any or4 ganization or person that is authorized to engage in 

5 the business of insurance under the laws of any 

6 State, subject to the reporting requirements of the 

7 Securities Exchange Act of 1934 pursuant to section 

8 13(a) or 15(d) of such Act (15 U.S.C. 78m(a) and 

9 78o(d)), or authorized by the Administrator to as10 sume reinsurance on risks insured by the flood in11 surance program;’’. 

12 (c) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 

13 (1) ASSESSMENT.— 

14 (A) ASSESSMENT REQUIRED.— 

15 (i) IN GENERAL.—Not later than Sep16 tember 30 of each year, the Administrator 

17 shall conduct an assessment of the ability 

18 of the National Flood Insurance Program 

19 to pay claims. 

20 (ii) PRIVATE MARKET REINSUR21 ANCE.—The assessment under this para22 graph for any year in which the Adminis23 trator exercises the authority under section 

24 1335(a)(2) of the National Flood Insur25 ance Act of 1968 (42 U.S.C. 4055(a)(2)), 

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1 as added by this section, to secure reinsur2 ance of coverage provided by the National 

3 Flood Insurance Program from the private 

4 market shall include information relating 

5 the use of private sector reinsurance and 

6 reinsurance equivalents by the Adminis7 trator, whether or not the Administrator 

8 used the borrowing authority under section 

9 1309 of the National Flood Insurance Act 

10 of 1968 (42 U.S.C. 4016). 

11 (iii) FIRST ASSESSMENT.—The Ad12 ministrator shall conduct the first assess13 ment required under this paragraph not 

14 later than September 30, 2012. 

15 (B) CONSIDERATIONS.—In conducting an 

16 assessment under subparagraph (A), the Ad17 ministrator shall take into consideration re18 gional concentrations of coverage written by the 

19 National Flood Insurance Program, peak flood 

20 zones, and relevant mitigation measures. 

21 (2) ANNUAL REPORT OF THE ADMINISTRATOR

22 OF ACTIVITIES UNDER THE NATIONAL FLOOD IN23 SURANCE PROGRAM.—The Administrator shall— 

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1 (A) include the results of each assessment 

2 in the report required under section 135(b); 

3 and 

4 (B) not later than 30 days after the date 

5 on which the Administrator completes an as6 sessment required under paragraph (1), make 

7 the results of the assessment available to the 

8 public. 

9 SEC. 137. GAO STUDY ON BUSINESS INTERRUPTION AND 

10 ADDITIONAL LIVING EXPENSES COVERAGES. 

11 (a) STUDY.—The Comptroller General of the United 

12 States shall conduct a study concerning— 

13 (1) the availability of additional living expenses 

14 and business interruption coverage in the private 

15 marketplace for flood insurance; 

16 (2) the feasibility of allowing the National 

17 Flood Insurance Program to offer such coverage at 

18 the option of the consumer; 

19 (3) the estimated cost to consumers if the Na20 tional Flood Insurance Program priced such optional 

21 coverage at true actuarial rates; 

22 (4) the impact such optional coverage would 

23 have on consumer participation in the National 

24 Flood Insurance Program; and 

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1 (5) the fiscal impact such optional coverage 

2 would have upon the National Flood Insurance 

3 Fund if such optional coverage were included in the 

4 National Flood Insurance Program, as described in 

5 paragraph (2), at the price described in paragraph 

6 (3). 

7 (b) REPORT.—Not later than 1 year after the date 

8 of the enactment of this Act, the Comptroller General shall 

9 submit to the Committee on Banking, Housing, and 

10 Urban Affairs of the Senate and the Committee on Finan11 cial Services of the House of Representatives a report con12 taining the results of the study under subsection (a). 

13 SEC. 138. POLICY DISCLOSURES. 

14 (a) IN GENERAL.—Notwithstanding any other provi15 sion of law, in addition to any other disclosures that may 

16 be required, each policy under the National Flood Insur17 ance Program shall state all conditions, exclusions, and 

18 other limitations pertaining to coverage under the subject 

19 policy, regardless of the underlying insurance product, in 

20 plain English, in boldface type, and in a font size that 

21 is twice the size of the text of the body of the policy. 

22 (b) VIOLATIONS.—Any person that violates the re23 quirements of this section shall be subject to a fine of not 

24 more than $50,000 at the discretion of the Administrator. 

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1 SEC. 139. REPORT ON INCLUSION OF BUILDING CODES IN 

2 FLOODPLAIN MANAGEMENT CRITERIA. 

3 Not later than 6 months after the date of the enact4 ment of this Act, the Administrator of the Federal Emer5 gency Management Agency shall conduct a study and sub6 mit a report to the Committee on Banking, Housing, and 

7 Urban Affairs of the Senate and the Committee on Finan8 cial Services of the House of Representatives regarding 

9 the impact, effectiveness, and feasibility of amending sec10 tion 1361 of the National Flood Insurance Act of 1968 

11 (42 U.S.C. 4102) to include widely used and nationally 

12 recognized building codes as part of the floodplain man13 agement criteria developed under such section, and shall 

14 determine— 

15 (1) the regulatory, financial, and economic im16 pacts of such a building code requirement on home17 owners, States and local communities, local land use 

18 policies, and the Federal Emergency Management 

19 Agency; 

20 (2) the resources required of State and local 

21 communities to administer and enforce such a build22 ing code requirement; 

23 (3) the effectiveness of such a building code re24 quirement in reducing flood-related damage to build25 ings and contents; 

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1 (4) the impact of such a building code require2 ment on the actuarial soundness of the National 

3 Flood Insurance Program; 

4 (5) the effectiveness of nationally recognized 

5 codes in allowing innovative materials and systems 

6 for flood-resistant construction; 

7 (6) the feasibility and effectiveness of providing 

8 an incentive in lower premium rates for flood insur9 ance coverage under such Act for structures meeting 

10 whichever of such widely used and nationally recog11 nized building codes or any applicable local building 

12 codes provides greater protection from flood damage; 

13 (7) the impact of such a building code require14 ment on rural communities with different building 

15 code challenges than urban communities; and 

16 (8) the impact of a such a building code re17 quirement on Indian reservations. 

18 SEC. 140. STUDY OF PARTICIPATION AND AFFORDABILITY 

19 FOR CERTAIN POLICYHOLDERS. 

20 (a) FEMA STUDY.—The Administrator shall conduct 

21 a study of— 

22 (1) methods to encourage and maintain partici23 pation in the National Flood Insurance Program; 

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1 (2) methods to educate consumers about the 

2 National Flood Insurance Program and the flood 

3 risk associated with their property; 

4 (3) methods for establishing an affordability 

5 framework for the National Flood Insurance Pro6 gram, including methods to aid individuals to afford 

7 risk-based premiums under the National Flood In8 surance Program through targeted assistance rather 

9 than generally subsidized rates, including means10 tested vouchers; and 

11 (4) the implications for the National Flood In12 surance Program and the Federal budget of using 

13 each such method. 

14 (b) NATIONAL ACADEMY OF SCIENCES ECONOMIC

15 ANALYSIS.—To inform the Administrator in the conduct 

16 of the study under subsection (a), the National Academy 

17 of Sciences, in consultation with the Comptroller General 

18 of the United States, shall conduct and submit to the Ad19 ministrator an economic analysis of the costs and benefits 

20 to the Federal Government of a flood insurance program 

21 with full risk-based premiums, combined with means-test22 ed Federal assistance to aid individuals who cannot afford 

23 coverage, through an insurance voucher program. The 

24 analysis shall compare the costs of a program of risk25 based rates and means-tested assistance to the current 

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1 system of subsidized flood insurance rates and federally 

2 funded disaster relief for people without coverage. 

3 (c) REPORT.—Not later than 270 days after the date 

4 of enactment of this Act, the Administrator shall submit 

5 to the Committee on Banking, Housing, and Urban Af6 fairs of the Senate and the Committee on Financial Serv7 ices of the House of Representatives a report that contains 

8 the results of the study and analysis under this section. 

9 (d) FUNDING.—Notwithstanding section 1310 of the 

10 National Flood Insurance Act of 1968 (42 U.S.C. 4017), 

11 there shall be available to the Administrator from the Na12 tional Flood Insurance Fund, of amounts not otherwise 

13 obligated, not more than $750,000 to carry out this sec14 tion. 

15 SEC. 141. STUDY AND REPORT CONCERNING THE PARTICI16 PATION OF INDIAN TRIBES AND MEMBERS OF 

17 INDIAN TRIBES IN THE NATIONAL FLOOD IN18 SURANCE PROGRAM. 

19 (a) DEFINITION.—In this section, the term ‘‘Indian 

20 tribe’’ has the meaning given that term in section 4 of 

21 the Indian Self-Determination and Education Assistance 

22 Act (25 U.S.C. 450b). 

23 (b) FINDINGS.—Congress finds that participation by 

24 Indian tribes in the National Flood Insurance Program 

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1 is low. Only 45 of 565 Indian tribes participate in the Na2 tional Flood Insurance Program. 

3 (c) STUDY.—The Comptroller General of the United 

4 States, in coordination and consultation with Indian tribes 

5 and members of Indian tribes throughout the United 

6 States, shall carry out a study that examines— 

7 (1) the factors contributing to the current rates 

8 of participation by Indian tribes and members of In9 dian tribes in the National Flood Insurance Pro10 gram; and 

11 (2) methods of encouraging participation by In12 dian tribes and members of Indian tribes in the Na13 tional Flood Insurance Program. 

14 (d) REPORT.—Not later than 6 months after the date 

15 of enactment of this Act, the Comptroller General shall 

16 submit to Congress a report that— 

17 (1) contains the results of the study carried out 

18 under subsection (c); 

19 (2) describes the steps that the Administrator 

20 should take to increase awareness and encourage 

21 participation by Indian tribes and members of In22 dian tribes in the National Flood Insurance Pro23 gram; and 

24 (3) identifies any legislative changes that would 

25 encourage participation by Indian tribes and memmstockstill on DSK4VPTVN1PROD with BILLS

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1 bers of Indian tribes in the National Flood Insur2 ance Program. 

3 SEC. 142. TECHNICAL CORRECTIONS. 

4 (a) FLOOD DISASTER PROTECTION ACT OF 1973.— 

5 The Flood Disaster Protection Act of 1973 (42 U.S.C. 

6 4002 et seq.) is amended— 

7 (1) by striking ‘‘Director’’ each place that term 

8 appears, except in section 102(f)(3) (42 U.S.C. 

9 4012a(f)(3)), and inserting ‘‘Administrator’’; and 

10 (2) in section 201(b) (42 U.S.C. 4105(b)), by 

11 striking ‘‘Director’s’’ and inserting ‘‘Administra12 tor’s’’. 

13 (b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 

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

15 4001 et seq.) is amended— 

16 (1) by striking ‘‘Director’’ each place that term 

17 appears and inserting ‘‘Administrator’’; and 

18 (2) in sections 1363 (42 U.S.C. 4104), by strik19 ing ‘‘Director’s’’ each place that term appears and 

20 inserting ‘‘Administrator’s’’. 

21 (c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 

22 Section 15(e) of the Federal Flood Insurance Act of 1956 

23 (42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 

24 each place that term appears and inserting ‘‘Adminis25 trator’’. 

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1 TITLE II—COMMISSION ON NAT2 URAL CATASTROPHE RISK 

3 MANAGEMENT AND INSUR4 ANCE 

5 SEC. 201. SHORT TITLE. 

6 This title may be cited as the ‘‘Commission on Nat7 ural Catastrophe Risk Management and Insurance Act of 

8 2011’’. 

9 SEC. 202. FINDINGS. 

10 Congress finds that— 

11 (1) Hurricanes Katrina, Rita, and Wilma, 

12 which struck the United States in 2005, caused, by 

13 some estimates, in excess of $200,000,000,000 in 

14 total economic losses; 

15 (2) many meteorologists predict that the United 

16 States is in a period of increased hurricane activity; 

17 (3) the Federal Government and State govern18 ments have provided billions of dollars to pay for 

19 losses from natural catastrophes, including hurri20 canes, earthquakes, volcanic eruptions, tsunamis, 

21 tornados, flooding, wildfires, droughts, and other 

22 natural catastrophes; 

23 (4) many Americans are finding it increasingly 

24 difficult to obtain and afford property and casualty 

25 insurance coverage; 

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1 (5) some insurers are not renewing insurance 

2 policies, are excluding certain risks, such as wind 

3 damage, and are increasing rates and deductibles in 

4 some markets; 

5 (6) the inability of property and business own6 ers in vulnerable areas to obtain and afford property 

7 and casualty insurance coverage endangers the na8 tional economy and public health and safety; 

9 (7) almost every State in the United States is 

10 at risk of a natural catastrophe, including hurri11 canes, earthquakes, volcanic eruptions, tsunamis, 

12 tornados, flooding, wildfires, droughts, and other 

13 natural catastrophes; 

14 (8) building codes and land use regulations play 

15 an indispensable role in managing catastrophe risks, 

16 by preventing building in high risk areas and ensur17 ing that appropriate mitigation efforts are completed 

18 where building has taken place; 

19 (9) several proposals have been introduced in 

20 Congress to address the affordability and availability 

21 of natural catastrophe insurance across the United 

22 States, but there is no consensus on what, if any, 

23 role the Federal Government should play; and 

24 (10) an efficient and effective approach to as25 sessing natural catastrophe risk management and inmstockstill on DSK4VPTVN1PROD with BILLS

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1 surance is to establish a nonpartisan commission to 

2 study the management of natural catastrophe risk, 

3 and to require such commission to timely report to 

4 Congress on its findings. 

5 SEC. 203. ESTABLISHMENT. 

6 There is established a nonpartisan Commission on 

7 Natural Catastrophe Risk Management and Insurance (in 

8 this title referred to as the ‘‘Commission’’). 

9 SEC. 204. MEMBERSHIP. 

10 (a) APPOINTMENT.—The Commission shall be com11 posed of 16 members, of whom— 

12 (1) 2 members shall be appointed by the major13 ity leader of the Senate; 

14 (2) 2 members shall be appointed by the minor15 ity leader of the Senate; 

16 (3) 2 members shall be appointed by the Speak17 er of the House of Representatives; 

18 (4) 2 members shall be appointed by the minor19 ity leader of the House of Representatives; 

20 (5) 2 members shall be appointed by the Chair21 man of the Committee on Banking, Housing, and 

22 Urban Affairs of the Senate; 

23 (6) 2 members shall be appointed by the Rank24 ing Member of the Committee on Banking, Housing, 

25 and Urban Affairs of the Senate; 

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1 (7) 2 members shall be appointed by the Chair2 man of the Committee on Financial Services of the 

3 House of Representatives; and 

4 (8) 2 members shall be appointed by the Rank5 ing Member of the Committee on Financial Services 

6 of the House of Representatives. 

7 (b) QUALIFICATION OF MEMBERS.— 

8 (1) IN GENERAL.—Members of the Commission 

9 shall be appointed under subsection (a) from among 

10 persons who— 

11 (A) have expertise in insurance, reinsur12 ance, insurance regulation, policyholder con13 cerns, emergency management, risk manage14 ment, public finance, financial markets, actu15 arial analysis, flood mapping and planning, 

16 structural engineering, building standards, land 

17 use planning, natural catastrophes, meteor18 ology, seismology, environmental issues, or 

19 other pertinent qualifications or experience; and 

20 (B) are not officers or employees of the 

21 United States Government or of any State or 

22 local government. 

23 (2) DIVERSITY.—In making appointments to 

24 the Commission— 

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1 (A) every effort shall be made to ensure 

2 that the members are representative of a broad 

3 cross section of perspectives within the United 

4 States; and 

5 (B) each member of Congress described in 

6 subsection (a) shall appoint not more than 1 

7 person from any single primary area of exper8 tise described in paragraph (1)(A) of this sub9 section. 

10 (c) PERIOD OF APPOINTMENT.— 

11 (1) IN GENERAL.—Each member of the Com12 mission shall be appointed for the duration of the 

13 Commission. 

14 (2) VACANCIES.—A vacancy on the Commission 

15 shall not affect its powers, but shall be filled in the 

16 same manner as the original appointment. 

17 (d) QUORUM.— 

18 (1) MAJORITY.—A majority of the members of 

19 the Commission shall constitute a quorum, but a 

20 lesser number, as determined by the Commission, 

21 may hold hearings. 

22 (2) APPROVAL ACTIONS.—All recommendations 

23 and reports of the Commission required by this title 

24 shall be approved only by a majority vote of all of 

25 the members of the Commission. 

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1 (e) CHAIRPERSON.—The Commission shall, by ma2 jority vote of all of the members, select 1 member to serve 

3 as the Chairperson of the Commission (in this title re4 ferred to as the ‘‘Chairperson’’). 

5 (f) MEETINGS.—The Commission shall meet at the 

6 call of its Chairperson or a majority of the members. 

7 SEC. 205. DUTIES OF THE COMMISSION. 

8 The Commission shall examine the risks posed to the 

9 United States by natural catastrophes, and means for 

10 mitigating those risks and for paying for losses caused by 

11 natural catastrophes, including assessing— 

12 (1) the condition of the property and casualty 

13 insurance and reinsurance markets prior to and in 

14 the aftermath of Hurricanes Katrina, Rita, and 

15 Wilma in 2005, and the 4 major hurricanes that 

16 struck the United States in 2004; 

17 (2) the current condition of, as well as the out18 look for, the availability and affordability of insur19 ance in all regions of the country; 

20 (3) the current ability of States, communities, 

21 and individuals to mitigate their natural catastrophe 

22 risks, including the affordability and feasibility of 

23 such activities; 

24 (4) the ongoing exposure of the United States 

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1 quakes, volcanic eruptions, tsunamis, tornados, 

2 flooding, wildfires, droughts, and other natural ca3 tastrophes; 

4 (5) the catastrophic insurance and reinsurance 

5 markets and the relevant practices in providing in6 surance protection to different sectors of the Amer7 ican population; 

8 (6) implementation of a catastrophic insurance 

9 system that can resolve key obstacles currently im10 peding broader implementation of catastrophic risk 

11 management and financing with insurance; 

12 (7) the financial feasibility and sustainability of 

13 a national, regional, or other pooling mechanism de14 signed to provide adequate insurance coverage and 

15 increased underwriting capacity to insurers and rein16 surers, including private-public partnerships to in17 crease insurance capacity in constrained markets; 

18 (8) methods to promote public or private insur19 ance policies to reduce losses caused by natural ca20 tastrophes in the uninsured sectors of the American 

21 population; 

22 (9) approaches for implementing a public or 

23 private insurance scheme for low-income commu24 nities, in order to promote risk reduction and insur25 ance coverage in such communities; 

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1 (10) the impact of Federal and State laws, reg2 ulations, and policies (including rate regulation, 

3 market access requirements, reinsurance regulations, 

4 accounting and tax policies, State residual markets, 

5 and State catastrophe funds) on— 

6 (A) the affordability and availability of ca7 tastrophe insurance; 

8 (B) the capacity of the private insurance 

9 market to cover losses inflicted by natural ca10 tastrophes; 

11 (C) the commercial and residential develop12 ment of high-risk areas; and 

13 (D) the costs of natural catastrophes to 

14 Federal and State taxpayers; 

15 (11) the present and long-term financial condi16 tion of State residual markets and catastrophe funds 

17 in high-risk regions, including the likelihood of insol18 vency following a natural catastrophe, the concentra19 tion of risks within such funds, the reliance on post20 event assessments and State funding, and the ade21 quacy of rates; 

22 (12) the role that innovation in financial serv23 ices could play in improving the affordability and 

24 availability of natural catastrophe insurance, specifi25 cally addressing measures that would foster the demstockstill on DSK4VPTVN1PROD with BILLS

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1 velopment of financial products designed to cover 

2 natural catastrophe risk, such as risk-linked securi3 ties; 

4 (13) the need for strengthened land use regula5 tions and building codes in States at high risk for 

6 natural catastrophes, and methods to strengthen the 

7 risk assessment and enforcement of structural miti8 gation and vulnerability reduction measures, such as 

9 zoning and building code compliance; 

10 (14) the benefits and costs of proposed Federal 

11 natural catastrophe insurance programs (including 

12 the Federal Government’s provision of reinsurance 

13 to State catastrophe funds, private insurers, or other 

14 entities), specifically addressing the costs to tax15 payers, tax equity considerations, and the record of 

16 other government insurance programs (particularly 

17 with regard to charging actuarially sound prices); 

18 (15) the ability of the United States private in19 surance market— 

20 (A) to cover insured losses caused by nat21 ural catastrophes, including an estimate of the 

22 maximum amount of insured losses that could 

23 be sustained during a single year and the prob24 ability of natural catastrophes occurring in a 

25 single year that would inflict more insured 

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1 losses than the United States insurance and re2 insurance markets could sustain; and 

3 (B) to recover after covering substantial 

4 insured losses caused by natural catastrophes; 

5 (16) the impact that demographic trends could 

6 have on the amount of insured losses inflicted by fu7 ture natural catastrophes; 

8 (17) the appropriate role, if any, for the Fed9 eral Government in stabilizing the property and cas10 ualty insurance and reinsurance markets; and 

11 (18) the role of the Federal, State, and local 

12 governments in providing incentives for feasible risk 

13 mitigation efforts. 

14 SEC. 206. REPORT. 

15 (a) IN GENERAL.—Not later than 9 months after the 

16 date of the enactment of this Act, the Commission shall 

17 submit to the Committee on Banking, Housing, and 

18 Urban Affairs of the Senate and the Committee on Finan19 cial Services of the House of Representatives a final report 

20 containing— 

21 (1) a detailed statement of the findings and as22 sessments conducted by the Commission pursuant to 

23 section 205; and 

24 (2) any recommendations for legislative, regu25 latory, administrative, or other actions at the Fedmstockstill on DSK4VPTVN1PROD with BILLS

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1 eral, State, or local levels that the Commission con2 siders appropriate, in accordance with the require3 ments of section 205. 

4 (b) EXTENSION OF TIME.—The Commission may re5 quest Congress to extend the period of time for the sub6 mission of the report required under subsection (a) for an 

7 additional 3 months. 

8 SEC. 207. POWERS OF THE COMMISSION. 

9 (a) MEETINGS; HEARINGS.—The Commission may 

10 hold such hearings, sit and act at such times and places, 

11 take such testimony, and receive such evidence as the 

12 Commission considers necessary to carry out the purposes 

13 of this title. Members may attend meetings of the Commis14 sion and vote in person, via telephone conference, or via 

15 video conference. 

16 (b) AUTHORITY OF MEMBERS OR AGENTS OF THE

17 COMMISSION.—Any member or agent of the Commission 

18 may, if authorized by a vote of the Commission, take any 

19 action which the Commission is authorized to take by this 

20 title. 

21 (c) OBTAINING OFFICIAL DATA.— 

22 (1) AUTHORITY.—Notwithstanding any provi23 sion of section 552a of title 5, United States Code, 

24 the Commission may secure directly from any de25 partment or agency of the United States any informstockstill on DSK4VPTVN1PROD with BILLS

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1 mation necessary to enable the Commission to carry 

2 out this title. 

3 (2) PROCEDURE.—Upon the request of the 

4 Chairperson, the head of such department or agency 

5 shall furnish to the Commission the information re6 quested. 

7 (d) POSTAL SERVICES.—The Commission may use 

8 the United States mails in the same manner and under 

9 the same conditions as other departments and agencies of 

10 the Federal Government. 

11 (e) ADMINISTRATIVE SUPPORT SERVICES.—Upon 

12 the request of the Commission, the Administrator of Gen13 eral Services shall provide to the Commission, on a reim14 bursable basis, any administrative support services nec15 essary for the Commission to carry out its responsibilities 

16 under this title. 

17 (f) ACCEPTANCE OF GIFTS.—The Commission may 

18 accept, hold, administer, and utilize gifts, donations, and 

19 bequests of property, both real and personal, for the pur20 poses of aiding or facilitating the work of the Commission. 

21 The Commission shall issue internal guidelines governing 

22 the receipt of donations of services or property. 

23 (g) VOLUNTEER SERVICES.—Notwithstanding the 

24 provisions of section 1342 of title 31, United States Code, 

25 the Commission may accept and utilize the services of volmstockstill on DSK4VPTVN1PROD with BILLS

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1 unteers serving without compensation. The Commission 

2 may reimburse such volunteers for local travel and office 

3 supplies, and for other travel expenses, including per diem 

4 in lieu of subsistence, as authorized by section 5703 of 

5 title 5, United States Code. 

6 (h) FEDERAL PROPERTY AND ADMINISTRATIVE

7 SERVICES ACT OF 1949.—Subject to the Federal Property 

8 and Administrative Services Act of 1949, the Commission 

9 may enter into contracts with Federal and State agencies, 

10 private firms, institutions, and individuals for the conduct 

11 of activities necessary to the discharge of its duties and 

12 responsibilities. 

13 (i) LIMITATION ON CONTRACTS.—A contract or other 

14 legal agreement entered into by the Commission may not 

15 extend beyond the date of the termination of the Commis16 sion. 

17 SEC. 208. COMMISSION PERSONNEL MATTERS. 

18 (a) TRAVEL EXPENSES.—The members of the Com19 mission shall be allowed travel expenses, including per 

20 diem in lieu of subsistence, at rates authorized for employ21 ees of agencies under subchapter I of chapter 57 of title 

22 5, United States Code, while away from their homes or 

23 regular places of business in the performance of services 

24 for the Commission. 

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1 (b) SUBCOMMITTEES.—The Commission may estab2 lish subcommittees and appoint members of the Commis3 sion to such subcommittees as the Commission considers 

4 appropriate. 

5 (c) STAFF.—Subject to such policies as the Commis6 sion may prescribe, the Chairperson may appoint and fix 

7 the pay of such additional personnel as the Chairperson 

8 considers appropriate to carry out the duties of the Com9 mission. The Commission shall confirm the appointment 

10 of the executive director by majority vote of all of the 

11 members of the Commission. 

12 (d) APPLICABILITY OF CERTAIN CIVIL SERVICE

13 LAWS.—Staff of the Commission may be— 

14 (1) appointed without regard to the provisions 

15 of title 5, United States Code, governing appoint16 ments in the competitive service; and 

17 (2) paid without regard to the provisions of 

18 chapter 51 and subchapter III of chapter 53 of that 

19 title relating to classification and General Schedule 

20 pay rates, except that an individual so appointed 

21 may not receive pay in excess of the annual rate of 

22 basic pay prescribed for GS–15 of the General 

23 Schedule under section 5332 of that title. 

24 (e) EXPERTS AND CONSULTANTS.—In carrying out 

25 its objectives, the Commission may procure temporary and 

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1 intermittent services of consultants and experts under sec2 tion 3109(b) of title 5, United States Code, at rates for 

3 individuals which do not exceed the daily equivalent of the 

4 annual rate of basic pay prescribed for GS–15 of the Gen5 eral Schedule under section 5332 of that title. 

6 (f) DETAIL OF GOVERNMENT EMPLOYEES.—Upon 

7 request of the Chairperson, any Federal Government em8 ployee may be detailed to the Commission to assist in car9 rying out the duties of the Commission— 

10 (1) on a reimbursable basis; and 

11 (2) such detail shall be without interruption or 

12 loss of civil service status or privilege. 

13 SEC. 209. TERMINATION. 

14 The Commission shall terminate 90 days after the 

15 date on which the Commission submits its report under 

16 section 206. 

17 SEC. 210. AUTHORIZATION OF APPROPRIATIONS. 

18 There are authorized to be appropriated to the Com19 mission, such sums as may be necessary to carry out this 

20 title, to remain available until expended. 

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Calendar No. 250 

112TH CONGRESS 

1ST SESSION S. 1940 

[Report No. 112–98] 

A BILL 

To amend the National Flood Insurance Act of 

flood insurance fund, and for other purposes. 1968, to restore the financial solvency of the 

DECEMBER 5, 2011 

Read twice and placed on the calendar 

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