II 

113TH CONGRESS 

1ST SESSION S. 1075 

To extend the phase-in of actuarial rates for flood insurance for certain 

properties under the Biggert-Waters Flood Insurance Reform Act of 2012. 

IN THE SENATE OF THE UNITED STATES 

MAY 23, 2013 

Mr. MENENDEZ (for himself and Mr. LAUTENBERG) introduced the following 

bill; which was read twice and referred to the Committee on Banking, 

Housing, and Urban Affairs 

A BILL 

To extend the phase-in of actuarial rates for flood insurance 

for certain properties under the Biggert-Waters Flood 

Insurance Reform Act of 2012. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Saving Homeowners 

5 from Onerous Rate Escalations Act of 2013’’ or the 

6 ‘‘SHORE Act of 2013’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•S 1075 IS

1 SEC. 2. EXTENSION OF PHASE-IN OF ACTUARIAL RATES 

2 FOR FLOOD INSURANCE FOR CERTAIN PROP3 ERTIES. 

4 (a) NEW POLICIES AND LAPSED POLICIES.—Section 

5 1307(g) of the National Flood Insurance Act of 1968 (42 

6 U.S.C. 4014(g)) is amended— 

7 (1) in paragraph (4)— 

8 (A) in subparagraph (B), by redesignating 

9 clauses (i) and (ii) as subclauses (I) and (II), 

10 respectively, and adjusting the margins accord11 ingly; and 

12 (B) by redesignating subparagraphs (A) 

13 and (B) as clauses (i) and (ii), respectively, and 

14 adjusting the margins accordingly; 

15 (2) by redesignating paragraphs (1) through 

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

17 and adjusting the margins accordingly; 

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

19 as redesignated, by striking ‘‘The Administrator’’ 

20 and inserting the following: 

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

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

23 ‘‘(2) PHASE-IN OF ACTUARIAL RATES.— 

24 ‘‘(A) IN GENERAL.—Any increase in the 

25 risk premium rate charged for flood insurance 

26 for a property or policy described in subparaVerDate Mar 15 2010 04:25 May 29, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1075.IS S1075

rfrederick on DSK6VPTVN1PROD with BILLS
3 

•S 1075 IS

1 graph (A), (B), or (C) of paragraph (1) that is 

2 a result of the prohibition set forth under such 

3 paragraph shall be phased in over an 8-year pe4 riod at the rate of— 

5 ‘‘(i) 5 percent for each of the first 5 

6 years after the applicable effective date es7 tablished under subparagraph (B) of this 

8 paragraph; and 

9 ‘‘(ii) 25 percent for each of the subse10 quent 3 years. 

11 ‘‘(B) EFFECTIVE DATE OF PHASE-IN.— 

12 The applicable effective date under this sub13 paragraph is the later of— 

14 ‘‘(i) the date of enactment of the 

15 SHORE Act of 2013; or 

16 ‘‘(ii) the date on which— 

17 ‘‘(I) a property described in para18 graph (1)(A) becomes insured by the 

19 national flood insurance program; 

20 ‘‘(II) a property described in 

21 paragraph (1)(B) is purchased; or 

22 ‘‘(III) coverage for a policy de23 scribed in paragraph (1)(C) is re24 newed.’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•S 1075 IS

1 (b) CERTAIN OTHER PROPERTIES.—Section 

2 1308(e)(2) of the National Flood Insurance Act of 1968 

3 (42 U.S.C. 4015(e)(2)) is amended by striking ‘‘by 25 per4 cent each year, until’’ and inserting the following: ‘‘by 5 

5 percent each year for 5 years and by 25 percent each year 

6 thereafter, until’’. 

7 (c) PREMIUM ADJUSTMENTS TO REFLECT CURRENT

8 RISK OF FLOOD.— 

9 (1) IN GENERAL.—Section 1308(h) of the Na10 tional Flood Insurance Act of 1968 (42 U.S.C. 

11 4015(h)) is amended— 

12 (A) in the second sentence, by striking 

13 ‘‘over a 5-year period, at the rate of 20 percent 

14 for each year following such effective date.’’ and 

15 inserting the following: ‘‘over a 10-year period, 

16 at the rate of 5 percent for each of the first 5 

17 years after such effective date and 15 percent 

18 for each of the 5 years thereafter.’’; and 

19 (B) in the third sentence, by striking ‘‘over 

20 a 5-year period, at the rate of 20 percent for 

21 each year following the effective date of such 

22 issuance, revision, updating, or change.’’ and 

23 inserting the following: ‘‘over a 10-year period, 

24 at the rate of 5 percent for each of the first 5 

25 years following the effective date of such 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•S 1075 IS

1 issuance, revision, updating, or change, and 15 

2 percent for each of the 5 years thereafter.’’. 

3 (2) APPLICABILITY.—For purposes of deter4 mining the amounts and schedule for phasing in any 

5 increase in the risk premium rate charged for flood 

6 insurance under the National Flood Insurance Pro7 gram under section 1308(h) of the National Flood 

8 Insurance Act of 1968 (42 U.S.C. 4015(h)), as 

9 amended by paragraph (1), based on the issuance, 

10 revision, updating, or other change with respect to 

11 a flood insurance map that took effect during the 

12 period beginning on July 6, 2012 and ending on the 

13 date of enactment of this Act, the effective date of 

14 the issuance, revision, updating, or other change 

15 shall be deemed to be the date of enactment of this 

16 Act. 

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS