I

103D CONGRESS

1ST SESSION H. R. 3191

To revise the national flood insurance program to promote compliance with

requirements for mandatory purchase of flood insurance, to provide assistance for mitigation activities designed to reduce damages to structures

subject to flooding and shoreline erosion, and to increase the maximum

coverage amounts under the program, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 30, 1993

Mr. KENNEDY (for himself and Mr. DEUTSCH) introduced the following bill;

which was referred to the Committee on Banking, Finance and Urban Affairs

A BILL

To revise the national flood insurance program to promote

compliance with requirements for mandatory purchase

of flood insurance, to provide assistance for mitigation

activities designed to reduce damages to structures subject to flooding and shoreline erosion, and to increase

the maximum coverage amounts under the program, and

for other purposes.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘National Flood Insurance Reform Act of 1993’’.
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1 (b) TABLE OF CONTENTS.—

Sec. 1. Short title and table of contents.

Sec. 2. Declaration of purpose under the National Flood Insurance Act of

1968.

TITLE I—DEFINITIONS

Sec. 101. Flood Disaster Protection Act of 1973.

Sec. 102. National Flood Insurance Act of 1968.

TITLE II—COMPLIANCE AND INCREASED PARTICIPATION

Sec. 201. Existing flood insurance purchase requirements.

Sec. 202. Expanded flood insurance purchase requirements.

Sec. 203. Escrow of flood insurance payments.

Sec. 204. Placement of flood insurance by regulated lending institution or Federal agency lender.

Sec. 205. Fine for failure to require flood insurance or notify.

Sec. 206. Ongoing compliance with flood insurance purchase requirements.

Sec. 207. Notice requirements.

Sec. 208. Standard hazard determination forms.

Sec. 209. Examinations regarding compliance.

Sec. 210. Financial Institutions Examination Council.

Sec. 211. Clerical amendments.

TITLE III—RATINGS AND INCENTIVES FOR COMMUNITY

FLOODPLAIN MANAGEMENT PROGRAMS

Sec. 301. Community rating system and incentives for community floodplain

management.

Sec. 302. Funding.

TITLE IV—MITIGATION OF FLOOD AND EROSION RISKS

Sec. 401. Repeal of flooded property purchase and loan program.

Sec. 402. Termination of erosion-threatened structures program.

Sec. 403. Mitigation assistance responsibilities in Federal insurance administration.

Sec. 404. State and community mitigation assistance program.

Sec. 405. Establishment of National Flood Mitigation Fund.

Sec. 406. Insurance premium mitigation surcharge.

Sec. 407. Limitations on new flood insurance coverage in erosion hazard areas.

Sec. 408. Study of mitigation insurance.

Sec. 409. Riverine erosion study.

Sec. 410. Coordination with coastal zone management programs.

TITLE V—FLOOD INSURANCE TASK FORCE

Sec. 501. Flood Insurance Interagency Task Force.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Extension of flood insurance program.

Sec. 602. Maximum flood insurance coverage amounts.

Sec. 603. Flood insurance program arrangements with private insurance entities.
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Sec. 604. Updating of flood maps and assessment and mapping of erosion hazard zones.

Sec. 605. Funding for increased administrative and operational responsibilities.

Sec. 606. Regulations.

1 SEC. 2. DECLARATION OF PURPOSE UNDER THE NATIONAL

2 FLOOD INSURANCE ACT OF 1968.

3 Section 1302(e) of the National Flood Insurance Act

4 of 1968 (42 U.S.C. 4001(e)) is amended—

5 (1) by redesignating clauses (3), (4), and (5),

6 as clauses (4), (5), and (6), respectively; and

7 (2) by inserting after the comma at the end of

8 clause (2) the following: ‘‘(3) encourage State and

9 local governments to protect natural and beneficial

10 floodplain functions that reduce flood-related

11 losses,’’.

12 TITLE I—DEFINITIONS

13 SEC. 101. FLOOD DISASTER PROTECTION ACT OF 1973.

14 (a) IN GENERAL.—Section 3(a) of the Flood Disaster

15 Protection Act of 1973 (42 U.S.C. 4003(a)) is amended—

16 (1) by striking paragraph (5) and inserting the

17 following new paragraph:

18 ‘‘(5) ‘Federal entity for lending regulation’

19 means the Board of Governors of the Federal Re20 serve System, the Federal Deposit Insurance Cor21 poration, the Comptroller of the Currency, the Office

22 of Thrift Supervision, and the National Credit

23 Union Administration, and with respect to a particu-
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1 lar regulated lending institution means the entity

2 primarily responsible for the supervision, approval,

3 or regulation of the institution;’’;

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

5 the end and inserting a semicolon; and

6 (3) by inserting after paragraph (6) the follow7 ing new paragraphs:

8 ‘‘(7) ‘Federal agency lender’ means a Federal

9 agency that makes direct loans secured by improved

10 real estate or a mobile home, to the extent such

11 agency acts in such capacity;

12 ‘‘(8) ‘lender’ includes any regulated lending in13 stitution, other lending institution, and Federal

14 agency lender, but does not include any agency en15 gaged primarily in the purchase of mortgage loans;

16 ‘‘(9) ‘other lending institution’ means any lend17 ing institution that is not subject to the supervision,

18 approval, regulation, or insuring of any Federal en19 tity for lending regulation and that is not a Federal

20 agency lender, but does not include institutions en21 gaged primarily in the purchase of mortgage loans;

22 and

23 ‘‘(10) ‘regulated lending institution’ means any

24 bank, savings and loan association, credit union, or

25 similar institution subject to the supervision, ap-
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1 proval, regulation, or insuring of a Federal entity for

2 lending regulation.’’.

3 (b) CONFORMING AMENDMENT.—Section 202(b) of

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

5 4106(b)) is amended by striking ‘‘Federal instrumentality

6 described in such section shall by regulation require the

7 institutions’’ and inserting ‘‘Federal entity for lending reg8 ulation (with respect to regulated lending institutions), the

9 Secretary of Housing and Urban Development (with re10 spect to other lending institutions), and the appropriate

11 head of each Federal agency lender, shall by regulation

12 require the lenders’’.

13 SEC. 102. NATIONAL FLOOD INSURANCE ACT OF 1968.

14 (a) IN GENERAL.—Section 1370(a) of the National

15 Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) is

16 amended—

17 (1) in paragraph (5), by striking ‘‘and’’ at the

18 end;

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

20 the end and inserting a semicolon; and

21 (3) by inserting after paragraph (6) the follow22 ing new paragraphs:

23 ‘‘(7) the term ‘erosion hazard area’ means,

24 based on erosion rate information and other histori25 cal data available, an area where erosion or avulsion
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1 is likely to result in damage to or loss of buildings

2 and infrastructure within a 60-year period;

3 ‘‘(8) the term ‘readily movable structure’ means

4 a small permanent structure of less than 5,000

5 square feet that is designed, sited, and built to ac6 complish relocation at a reasonable cost relative to

7 other structures of the same size and construction

8 and that has access of sufficient width and accept9 able grade to permit such relocation;

10 ‘‘(9) the term ‘coastal’ means relating to the

11 coastlines and bays of the tidal waters of the United

12 States or the shorelines of the Great Lakes, but does

13 not refer to bayous, riverine areas, and riverine por14 tions of estuaries;

15 ‘‘(10) the term ‘Federal agency lender’ means a

16 Federal agency that makes direct loans secured by

17 improved real estate or a mobile home, to the extent

18 such agency acts in such capacity;

19 ‘‘(11) the term ‘Federal entity for lending regu20 lation’ means the Board of Governors of the Federal

21 Reserve System, the Federal Deposit Insurance Cor22 poration, the Comptroller of the Currency, the Office

23 of Thrift Supervision, and the National Credit

24 Union Administration, and with respect to a particu25 lar regulated lending institution means the entity
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1 primarily responsible for the supervision, approval,

2 or regulation of the institution;

3 ‘‘(12) the term ‘lender’ includes any regulated

4 lending institution, other lending institution, and

5 Federal agency lender, but does not include any

6 agency engaged primarily in the purchase of mort7 gage loans;

8 ‘‘(13) the term ‘natural and beneficial flood9 plain functions’ means (A) the functions associated

10 with the natural or relatively undisturbed floodplain

11 that moderate flooding, retain flood waters, reduce

12 erosion and sedimentation, and mitigate the effect of

13 waves and storm surge from storms, and (B) ancil14 lary beneficial functions, including maintenance of

15 water quality, recharge of ground water, and provi16 sion of fisheries and wildlife habitat;

17 ‘‘(14) the term ‘regulated lending institution’

18 means a bank, savings and loan association, credit

19 union, or similar institution subject to the super20 vision, approval, regulation, or insuring of a Federal

21 entity for lending regulation; and

22 ‘‘(15) the term ‘other lending institution’ means

23 any lending institution that is not subject to the su24 pervision, approval, regulation, or insuring of any

25 Federal entity for lending regulation and that is not
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1 a Federal agency lender, but does not include insti2 tutions engaged primarily in the purchase of mort3 gage loans.’’.

4 (b) CONFORMING AMENDMENT.—Section 1322(d) of

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

6 4029(d)) is amended by striking ‘‘federally supervised, ap7 proved, regulated, or insured financial institution’’ and in8 serting ‘‘regulated lending institution, other lender, or

9 Federal agency lender’’.

10 TITLE II—COMPLIANCE AND

11 INCREASED PARTICIPATION

12 SEC. 201. EXISTING FLOOD INSURANCE PURCHASE RE13 QUIREMENTS.

14 Section 102(a) of the Flood Disaster Protection Act

15 of 1973 (42 U.S.C. 4012a(a)) is amended—

16 (1) by inserting after ‘‘(a)’’ the following: ‘‘(a)

17 REQUIREMENT FOR FEDERAL ASSISTANCE FOR AC18 QUISITION OR CONSTRUCTION.—’’; and

19 (2) by adding at the end the following new sen20 tence: ‘‘This subsection may not be construed to per21 mit the provision of any amount of financial assist22 ance with respect to any building or mobile home

23 and related personal property for which flood insur24 ance is required under such paragraph, unless the

25 requirements under such paragraph are complied
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1 with in full. The prohibitions and requirements in

2 this paragraph relating to financial assistance may

3 not be waived for any purpose.’’.

4 SEC. 202. EXPANDED FLOOD INSURANCE PURCHASE RE5 QUIREMENTS.

6 Section 102(b) of the Flood Disaster Protection Act

7 of 1973 (42 U.S.C. 4012a(b)) is amended to read as fol8 lows:

9 ‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.—

10 ‘‘(1) REGULATED LENDING INSTITUTIONS.—

11 Each Federal entity for lending regulation (after

12 consultation and coordination with the Financial In13 stitutions Examination Council established under the

14 Federal Financial Institutions Examination Council

15 Act of 1974) shall by regulation direct regulated

16 lending institutions not to make, increase, extend, or

17 renew, after the expiration of 60 days following the

18 date of the enactment of this Act, any loan secured

19 by improved real estate or a mobile home located or

20 to be located in an area that has been identified by

21 the Director as an area having special flood hazards

22 and in which flood insurance has been made avail23 able under the National Flood Insurance Act of

24 1968, unless the building or mobile home and any

25 personal property securing such loan is covered for
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1 the term of the loan by flood insurance in an

2 amount at least equal to the outstanding principal

3 balance of the loan or the maximum limit of cov4 erage made available under the Act with respect to

5 the particular type of property, whichever is less.

6 ‘‘(2) OTHER LENDING INSTITUTIONS AND

7 GSE’S.—The Secretary of Housing and Urban Devel8 opment (after consultation and coordination with the

9 Financial Institutions Examination Council) shall by

10 regulation direct that—

11 ‘‘(A) any other lending institution may not

12 make, increase, extend, or renew any loan se13 cured by improved real estate or a mobile home

14 located or to be located in an area that has

15 been identified by the Director of the Federal

16 Emergency Management Agency as an area

17 having special flood hazards and in which flood

18 insurance has been made available under the

19 National Flood Insurance Act of 1968, unless

20 the building or mobile home and any personal

21 property securing such loan is covered for the

22 term of the loan by flood insurance in the

23 amount provided in paragraph (1);

24 ‘‘(B) the Federal National Mortgage Asso25 ciation and the Federal Home Loan Mortgage
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1 Corporation implement procedures reasonably

2 designed to ensure that all loans that are—

3 ‘‘(i) secured by improved real estate

4 or a mobile home located in an area that

5 has been identified at the time of the origi6 nation of the loan by the Director of the

7 Federal Emergency Management Agency,

8 as an area of special flood hazards and in

9 which flood insurance is available under

10 the National Flood Insurance Act of 1968,

11 and

12 ‘‘(ii) purchased by either such entity,

13 are covered for the term of the loan by flood in14 surance in the amount provided in paragraph

15 (1); and

16 ‘‘(C) all loans that are—

17 ‘‘(i) secured by improved real estate

18 or a mobile home located in an area that

19 has been identified at the time of the origi20 nation of the loan by the Director of the

21 Federal Emergency Management Agency,

22 as an area of special flood hazards and in

23 which flood insurance is available under

24 the National Flood Insurance Act of 1968,

25 and
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1 ‘‘(ii) purchased by the Government

2 National Mortgage Association,

3 are covered for the term of the loan by flood in4 surance in the amount provided in paragraph

5 (1).

6 ‘‘(3) FEDERAL AGENCY LENDERS.—A Federal

7 agency lender may not make, increase, extend, or

8 renew any loan secured by improved real estate or

9 a mobile home located or to be located in an area

10 that has been identified by the Director of the Fed11 eral Emergency Management Agency as an area

12 having special flood hazards and in which flood in13 surance has been made available under the National

14 Flood Insurance Act of 1968, unless the building or

15 mobile home and any personal property securing

16 such loan is covered for the term of the loan by flood

17 insurance in the amount provided in paragraph (1).

18 The relevant head of each Federal agency lender

19 shall issue any regulations necessary to carry out

20 this paragraph. Such regulations shall be consistent

21 with and substantially identical to the regulations is22 sued under paragraphs (1) and (2).

23 ‘‘(4) FEE FOR DETERMINING LOCATION.—Not24 withstanding any other Federal or State law, any

25 lender may charge the borrower a reasonable fee (as
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1 determined by the Director) for the costs of deter2 mining whether the improved real estate or mobile

3 home securing the loan is located in an area of spe4 cial flood hazards, but only if such determination is

5 made pursuant to the making, increasing, extending,

6 or renewing of a loan described under paragraph

7 (1), (2), or (3) that is initiated by the borrower.

8 ‘‘(5) CONTESTED DETERMINATIONS.—If a bor9 rower under a loan disputes or challenges the deter10 mination of the lender that the improved real estate

11 or mobile home securing the loan is located in an

12 area of special flood hazards, the lender shall review

13 and consider any relevant information submitted to

14 the lender by the borrower.

15 ‘‘(6) APPLICABILITY.—Paragraphs (2) through

16 (5) shall apply only with respect to—

17 ‘‘(A) any loan made, increased, extended,

18 or renewed after the expiration of the 1-year

19 period beginning on the date of the enactment

20 of the National Flood Insurance Reform Act of

21 1993; and

22 ‘‘(B) any loan outstanding after the expi23 ration of the 5-year period beginning on the

24 date of the enactment of such Act.’’.
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1 SEC. 203. ESCROW OF FLOOD INSURANCE PAYMENTS.

2 Section 102 of the Flood Disaster Protection Act of

3 1973 (42 U.S.C. 4012a) is amended by adding at the end

4 the following new subsection:

5 ‘‘(d) ESCROW OF FLOOD INSURANCE PAYMENTS.—

6 ‘‘(1) PRIVATE LENDERS.—For loans secured by

7 residential real estate, each Federal entity for lend8 ing regulation (with respect to any loans of regu9 lated lending institutions) and the Secretary of

10 Housing and Urban Development (with respect to

11 any loans of other lending institutions), after con12 sultation and coordination with the Financial Insti13 tutions Examination Council, shall by regulation di14 rect that any premiums and fees for flood insurance

15 under the National Flood Insurance Act of 1968 for

16 the residential real estate shall be paid to the lender

17 or servicer of the loan. Premiums and fees paid to

18 the lender or servicer shall be paid in a manner suf19 ficient to make payments as due for the duration of

20 the loan. Upon receipt of the premiums, the lender

21 or servicer of the loan shall deposit the premiums in

22 an escrow account on behalf of the borrower. Upon

23 receipt of a notice from the Director or the provider

24 of the insurance that insurance premiums are due,

25 the lender or servicer shall pay from the escrow ac-
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1 count to the provider of the insurance the amount

2 of insurance premiums owed.

3 ‘‘(2) FEDERAL AGENCY LENDERS.—The appro4 priate head of each Federal agency lender shall by

5 regulation require and provide for escrow and pay6 ment of any flood insurance premiums and fees re7 lating to residential property securing loans made by

8 the Federal agency lender under the circumstances

9 and in the manner provided under paragraph (1).

10 Any regulations issued under this paragraph shall be

11 consistent with and substantially identical to the

12 regulations issued under paragraph (1).

13 ‘‘(3) APPLICABILITY OF RESPA.—Escrow ac14 counts established pursuant to this subsection shall

15 be subject to the provisions of section 10 of the Real

16 Estate Settlement Procedures Act of 1974.

17 ‘‘(4) APPLICABILITY.—This subsection shall

18 apply only with respect to—

19 ‘‘(A) any loan made, increased, extended,

20 or renewed after the expiration of the 1-year

21 period beginning on the date of the enactment

22 of the National Flood Insurance Reform Act of

23 1993; and
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1 ‘‘(B) any loan outstanding after the expi2 ration of the 5-year period beginning on the

3 date of the enactment of such Act.’’.

4 SEC. 204. PLACEMENT OF FLOOD INSURANCE BY REGU5 LATED LENDING INSTITUTION OR FEDERAL

6 AGENCY LENDER.

7 (a) ACTIONS REQUIRED BY LENDER.—Section 102

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

9 4012a), as amended by the preceding provisions of this

10 Act, is further amended by adding at the end the following

11 new subsection:

12 ‘‘(e) PLACEMENT OF FLOOD INSURANCE BY LEND13 ER.—

14 ‘‘(1) NOTIFICATION TO BORROWER OF LACK OF

15 COVERAGE.—If, at any time during the term of a

16 loan secured by improved real estate or by a mobile

17 home located in an area that has been identified by

18 the Director as an area having special flood hazards

19 and in which flood insurance is available under the

20 National Flood Insurance Act of 1968, a regulated

21 lending institution, Federal agency lender, or other

22 lender determines that the building or mobile home

23 and any personal property securing the loan held or

24 serviced by the regulated lending institution or Fed25 eral agency lender is not covered by flood insurance,
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1 in an amount not less than the amount required by

2 subsection (b)(1), the regulated lending institution,

3 Federal agency lender, or other lender shall notify

4 the borrower under the loan that the borrower

5 should obtain, at the borrower’s expense, an amount

6 of flood insurance that is not less than the amount

7 required by subsection (b)(1), for the term of the

8 loan.

9 ‘‘(2) PURCHASE OF COVERAGE ON BEHALF OF

10 BORROWER.—If the borrower fails to purchase such

11 flood insurance within 60 days after such notifica12 tion, the regulated lending institution, Federal agen13 cy lender, or other lender shall purchase the insur14 ance on behalf of the borrower and may charge the

15 borrower for the cost of premiums and fees incurred

16 by the regulated lending institution, Federal agency

17 lender, or other lender in purchasing the insurance.

18 ‘‘(3) REVIEW OF DETERMINATION REGARDING

19 REQUIRED PURCHASE.—

20 ‘‘(A) IN GENERAL.—A borrower may re21 quest that the Director review a determination

22 that the improved real estate or mobile home

23 securing the loan is located in an area of special

24 flood hazards. Not later than 45 days after the

25 Director receives the request, the Director shall
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1 review the determination and provide the bor2 rower with a letter stating whether or not the

3 property is in a special flood hazards area. The

4 determination of the Director shall be final.

5 ‘‘(B) EFFECT OF DETERMINATION.—Any

6 person to whom a borrower provides a letter is7 sued by the Director pursuant to subparagraph

8 (A), stating that the property of the borrower

9 is not in an area of special flood hazards, shall

10 have no obligation under this title to require the

11 purchase of flood insurance on the property

12 during the 1-year period beginning upon the

13 date that such letter is provided.

14 ‘‘(4) APPLICABILITY.—This subsection shall

15 apply to all loans outstanding on or after the date

16 of enactment of the National Flood Insurance Re17 form Act of 1993.’’.

18 SEC. 205. FINE FOR FAILURE TO REQUIRE FLOOD INSUR19 ANCE OR NOTIFY.

20 Section 102 of the Flood Disaster Protection Act of

21 1973 (42 U.S.C. 4012a), as amended by the preceding

22 provisions of this Act, is further amended by adding at

23 the end the following new subsection:

24 ‘‘(f) PENALTIES FOR FAILURE TO REQUIRE FLOOD

25 INSURANCE OR NOTIFY.—
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1 ‘‘(1) CIVIL MONETARY PENALTIES AGAINST

2 LENDERS.—Any regulated or other lending institu3 tion that is found to have a pattern or practice of

4 committing violations under paragraph (2) shall be

5 assessed a civil penalty by the appropriate Federal

6 entity for lending regulation (with respect to regu7 lated lending institutions) or the Secretary of Hous8 ing and Urban Development (with respect to any

9 other lending institutions) in the amount provided

10 under paragraph (5).

11 ‘‘(2) LENDER VIOLATIONS.—The violations re12 ferred to in paragraph (2) shall be—

13 ‘‘(A) making, increasing, extending, or re14 newing loans in violation of—

15 ‘‘(i) the regulations issued pursuant to

16 subsection (b) of this section;

17 ‘‘(ii) the escrow requirements under

18 subsection (d) of this section; or

19 ‘‘(iii) the notice requirements under

20 section 1364 of the National Flood Insur21 ance Act of 1968; or

22 ‘‘(B) failure to provide notice or purchase

23 flood insurance coverage in violation of sub24 section (e) of this section.
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1 ‘‘(3) CIVIL MONETARY PENALTIES AGAINST

2 GSE’S.—If the Federal National Mortgage Associa3 tion or the Federal Home Loan Mortgage Corpora4 tion is found by the Secretary of Housing and

5 Urban Development to have a pattern or practice of

6 purchasing loans in violation of the procedures es7 tablished pursuant to subsection (b)(2)(B) of this

8 section or the regulations issued by the Secretary

9 pursuant to such subsection, the Secretary shall as10 sess a civil penalty against such enterprise in the

11 amount provided under paragraph (5). For purposes

12 of this subsection, the term ‘enterprise’ means the

13 Federal National Mortgage Association and the Fed14 eral Home Loan Mortgage Corporation.

15 ‘‘(4) NOTICE AND HEARING.—A penalty under

16 this subsection may be issued only after notice and

17 an opportunity for a hearing on the record.

18 ‘‘(5) AMOUNT.—A civil monetary penalty under

19 this subsection may not exceed $350 for each viola20 tion under paragraph (2) or paragraph (3). The

21 total amount of penalties assessed under this sub22 section against any single lender or enterprise for

23 any calendar year may not exceed $100,000.

24 ‘‘(6) LENDER COMPLIANCE.—Notwithstanding

25 any State or local law, for purposes of this sub-
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1 section, any lender that purchases flood insurance or

2 renews a contract for flood insurance on behalf of or

3 as an agent of a borrower of a loan for which flood

4 insurance is required shall be considered to have

5 complied with the regulations issued under sub6 section (b).

7 ‘‘(7) EFFECT OF TRANSFER ON LIABILITY.—

8 Any sale or other transfer of a loan by a lender who

9 has committed a violation under paragraph (1), that

10 occurs subsequent to the violation, shall not affect

11 the liability of the transferring lender with respect to

12 any penalty under this subsection. A lender shall not

13 be liable for any violations relating to a loan com14 mitted by another lender who previously held the

15 loan.

16 ‘‘(8) DEPOSIT OF PENALTIES.—Any penalties

17 collected under this subsection shall be paid into the

18 National Flood Mitigation Fund under section 1367

19 of the National Flood Insurance Act of 1968.

20 ‘‘(9) ADDITIONAL PENALTIES.—Any penalty

21 under this subsection shall be in addition to any civil

22 remedy or criminal penalty otherwise available.

23 ‘‘(10) STATUTE OF LIMITATIONS.—No penalty

24 may be imposed under this subsection after the expi25 ration of the 5-year period beginning on the date of
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1 the occurrence of the violation for which the penalty

2 is authorized under this subsection.’’.

3 SEC. 206. ONGOING COMPLIANCE WITH FLOOD INSURANCE

4 PURCHASE REQUIREMENTS.

5 Section 102 of the Flood Disaster Protection Act of

6 1973 (42 U.S.C. 4012a), as amended by the preceding

7 provisions of this Act, is further amended by adding at

8 the end the following new subsection:

9 ‘‘(g) NOTIFICATION OF FLOOD HAZARDS TO LOAN

10 TRANSFEREE.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graphs (2), (3), and (4), before the sale or transfer

13 of any loan secured by improved real estate or a mo14 bile home, the seller or transferor of the loan shall

15 determine whether the property is in an area that

16 has been designated by the Director as an area hav17 ing special flood hazards. The seller or transferor

18 shall, before sale or transfer, notify the purchaser or

19 transferee and any servicer of the loan in writing re20 garding the results of the determination. A deter21 mination under this paragraph shall be evidenced

22 using the standard hazard determination form under

23 section 1365 of the National Flood Insurance Act of

24 1968.
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1 ‘‘(2) EXCEPTIONS.—For any loan secured by

2 improved real estate or a mobile home, a determina3 tion and notice under paragraph (1) shall not be re4 quired if, during the 5-year period ending on the

5 date of the sale or transfer of the loan—

6 ‘‘(A) a determination and notice under

7 paragraph (1) has been made for the property

8 secured by the loan; or

9 ‘‘(B)(i) the loan has been made, increased,

10 extended, or renewed; and

11 ‘‘(ii) the lender making, increasing, extend12 ing, or renewing the loan was subject, at the

13 time of such transaction, to regulations issued

14 pursuant to paragraph (1), (2), or (3) of sub15 section (b).

16 ‘‘(3) LOANS TRANSFERRED BY FDIC.—

17 ‘‘(A) IN GENERAL.—Except as provided in

18 subparagraph (B), for any loan secured by im19 proved real estate or a mobile home that is sold

20 or transferred by the Federal Deposit Insurance

21 Corporation acting in its corporate capacity or

22 in its capacity as conservator or receiver, the

23 purchaser or transferee of the loan shall deter24 mine whether the property is in an area that
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1 has been designated by the Director as an area

2 having special flood hazards.

3 ‘‘(B) EXCEPTIONS.—Such determination

4 and notice shall not be required for any loan—

5 ‘‘(i) sold or transferred to an entity

6 under the control of the Federal Deposit

7 Insurance Corporation; or

8 ‘‘(ii) for which the purchaser or trans9 feree exercises any available option to

10 transfer or put the loan back to the Fed11 eral Deposit Insurance Corporation.

12 ‘‘(C) NOTICE TO DIRECTOR.—A purchaser

13 or transferee of a loan required to make a de14 termination and notification under subpara15 graph (A) shall notify the Director and any

16 servicer of the loan of the results of the deter17 mination (using the standard hazard determina18 tion form under section 1365 of the National

19 Flood Insurance Act of 1968) before the expira20 tion of the 90-day period beginning on the later

21 of (i) the purchase or transfer of the loan, or

22 (ii) the expiration of any option that the pur23 chaser or transferee may have to transfer or

24 put the loan back to the Federal Deposit Insur25 ance Corporation.
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1 ‘‘(4) LOANS TRANSFERRED BY RTC.—

2 ‘‘(A) IN GENERAL.—For any loan secured

3 by improved real estate or a mobile home that

4 is sold or transferred by the Resolution Trust

5 Corporation acting in its corporate capacity or

6 in its capacity as a conservator or receiver, the

7 purchaser or transferee of the loan shall deter8 mine whether the property is in an area that

9 has been designated by the Director as an area

10 having special flood hazards if—

11 ‘‘(i) the Resolution Trust Corporation

12 acquires the loan after the date of the ef13 fectiveness of this subsection and sells or

14 transfers the loan before the expiration of

15 the 12-month period beginning on such ef16 fective date; or

17 ‘‘(ii) the Corporation holds the loan

18 on the date of the effectiveness of this sub19 section and sells or transfers the loan be20 fore the expiration of the 6-month period

21 beginning on such effective date.

22 ‘‘(B) NOTICE TO DIRECTOR.—A purchaser

23 or transferee of a loan required to make a de24 termination and notification under subpara25 graph (A) shall notify the Director and any
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1 servicer of the loan of the results of the deter2 mination (using the standard hazard determina3 tion form under section 1365 of the National

4 Flood Insurance Act of 1968) before the expira5 tion of the 90-day period beginning upon the

6 purchase or transfer of the loan.’’.

7 ‘‘(5) APPLICABILITY.—This subsection shall

8 apply only with respect to any loan outstanding or

9 entered into after the expiration of the 1-year period

10 beginning on the date of the enactment of the Na11 tional Flood Insurance Reform Act of 1993.’’.

12 SEC. 207. NOTICE REQUIREMENTS.

13 Section 1364 of the National Flood Insurance Act of

14 1968 (42 U.S.C. 4104a) is amended to read as follows:

15 ‘‘NOTICE REQUIREMENTS

16 ‘‘SEC. 1364. (a) NOTIFICATION OF SPECIAL FLOOD

17 HAZARDS.—

18 ‘‘(1) LENDING INSTITUTIONS.—Each Federal

19 entity for lending regulation (with respect to regu20 lated lending institutions) and the Secretary of

21 Housing and Urban Development (with respect to

22 other lending institutions), after consultation and co23 ordination with the Financial Institutions Examina24 tion Council, shall by regulation require such institu25 tions, as a condition of making, increasing, extend26 ing, or renewing any loan secured by improved real
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1 estate or a mobile home located or to be located in

2 an area that has been identified by the Director

3 under this title or the Flood Disaster Protection Act

4 of 1973 as an area having special flood hazards, to

5 notify the purchaser or lessee (or obtain satisfactory

6 assurances that the seller or lessor has notified the

7 purchaser or lessee) and the servicer of the loan of

8 such special flood hazards, in writing, a reasonable

9 period in advance of the signing of the purchase

10 agreement, lease, or other documents involved in the

11 transaction. The regulations shall also require that

12 the lenders retain a record of the receipt of the no13 tices by the purchaser or lessee and the servicer.

14 ‘‘(2) FEDERAL AGENCY LENDERS.—The appro15 priate head of each Federal agency lender shall by

16 regulation require notification in the manner pro17 vided under paragraph (1) with respect to any loan

18 that is made by the Federal agency lender and se19 cured by improved real estate or a mobile home lo20 cated or to be located in an area that has been iden21 tified by the Director under this title or the Flood

22 Disaster Protection Act of 1973 as an area having

23 special flood hazards. Any regulations issued under

24 this paragraph shall be consistent with and substan-
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1 tially identical to the regulations issued under para2 graph (1).

3 ‘‘(3) CONTENTS OF NOTICE.—Written notifica4 tion required under this subsection shall include—

5 ‘‘(A) a warning, in a form to be established

6 in consultation with and subject to the approval

7 of the Director, stating that the real estate or

8 mobile home securing the loan is located or is

9 to be located in an area having special flood

10 hazards;

11 ‘‘(B) a description of the flood insurance

12 purchase requirements under section 102(b) of

13 the Flood Disaster Protection Act of 1973;

14 ‘‘(C) a statement that flood insurance cov15 erage may be purchased under the national

16 flood insurance program and is also available

17 from private insurers; and

18 ‘‘(D) any other information that the Direc19 tor considers necessary to carry out the pur20 poses of the national flood insurance program.

21 ‘‘(b) NOTIFICATION OF CHANGE OF LOAN HOLDER

22 AND SERVICER.—

23 ‘‘(1) LENDING INSTITUTIONS.—Each Federal

24 entity for lending regulation (with respect to regu25 lated lending institutions) and the Secretary of
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1 Housing and Urban Development (with respect to

2 other lending institutions), after consultation and co3 ordination with the Financial Institutions Examina4 tion Council, shall by regulation require such institu5 tions, as a condition of making, increasing, extend6 ing, renewing, selling, or transferring any loan de7 scribed in subsection (a)(1), to notify the Director

8 (or the designee of the Director) in writing during

9 the term of the loan of the owner and servicer of the

10 loan. Such institutions shall also notify the Director

11 (or such designee) of any change in the owner or

12 servicer of the loan, not later than 60 days after the

13 effective date of such change. The regulations under

14 this subsection shall provide that upon any sale or

15 transfer of a loan, the duty to provide notification

16 under this subsection shall transfer to the transferee

17 of the loan.

18 ‘‘(2) FEDERAL AGENCY LENDERS.—The appro19 priate head of each Federal agency lender shall by

20 regulation provide for notification in the manner

21 provided under paragraph (1) with respect to any

22 loan described in subsection (a)(1) that is made by

23 the Federal agency lender. Any regulations issued

24 under this paragraph shall be consistent with and
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1 substantially identical to the regulations issued

2 under paragraph (1) of this subsection.

3 ‘‘(c) NOTIFICATION OF EXPIRATION OF INSUR4 ANCE.—The Director (or the designee of the Director)

5 shall, not less than 45 days before the expiration of any

6 contract for flood insurance under this title, issue notice

7 of such expiration by first class mail to the owner of the

8 property, the servicer of any loan secured by the property

9 covered by the contract, and the owner of the loan.’’.

10 SEC. 208. STANDARD HAZARD DETERMINATION FORMS.

11 Chapter III of the National Flood Insurance Act of

12 1968 (42 U.S.C. 4101 et seq.) is amended by adding at

13 the end the following new section:

14 ‘‘STANDARD HAZARD DETERMINATION FORMS

15 ‘‘SEC. 1365. (a) DEVELOPMENT.—The Director, in

16 consultation with representatives of the mortgage and

17 lending industry, the Federal entities for lending regula18 tion, the Federal agency lenders, and any other appro19 priate individuals, shall develop standard written and elec20 tronic forms for determining flood hazard exposure of a

21 property for use in connection with loans secured by im22 proved real estate or a mobile home.

23 ‘‘(b) DESIGN AND CONTENTS.—

24 ‘‘(1) PURPOSE.—The form under subsection (a)

25 shall be designed to facilitate a determination of the

26 exposure to flood hazards of structures located on
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1 the property to which the loan application relates.

2 The form shall be consistent with and appropriate to

3 facilitate compliance with the provisions of this title.

4 ‘‘(2) CONTENTS.—The form shall require iden5 tification of the type of flood-risk zone in which the

6 property is located, the complete map and panel

7 numbers for the property, and the date of the map

8 used for the determination, with respect to flood

9 hazard information on file with the Director. If the

10 property is not located in an area of special flood

11 hazard the form shall require a statement to such

12 effect and shall indicate the complete map and panel

13 numbers of the property. If the complete map and

14 panel numbers for the property are not available be15 cause the property is not located in a community

16 that is participating in the national flood insurance

17 program or because no map exists for the relevant

18 area, the form shall require a statement to such ef19 fect. The form shall provide for inclusion or attach20 ment of any relevant documents indicating revisions

21 or amendments to maps.

22 ‘‘(c) REQUIRED USE.—The Federal entities for lend23 ing regulation shall by regulation require the use of the

24 form under this section by regulated lending institutions.

25 The appropriate head of each Federal agency lender shall
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1 by regulation provide for the use of the form with respect

2 to any loan made by such Federal agency lender. The Sec3 retary of Housing and Urban Development shall by regu4 lation require use of the form in connection with loans

5 purchased by Federal National Mortgage Association and

6 the Federal Home Loan Mortgage Corporation and the

7 Government National Mortgage Association. The Sec8 retary of Housing and Urban Development shall encour9 age the use of the form by other lending institutions.

10 ‘‘(d) GUARANTEES REGARDING INFORMATION.—In

11 providing information regarding special flood hazards on

12 the form developed under this section (or otherwise re13 quired of a lender not required to use the form under this

14 section) any lender making, increasing, extending, or re15 newing a loan secured by improved real estate or a mobile

16 home may provide for the acquisition or determination of

17 such information to be made by a person other than such

18 institution, only to the extent such person guarantees the

19 accuracy of the information. The Director shall by regula20 tions establish requirements relating to the nature and

21 manner of such guarantees.

22 ‘‘(e) ELECTRONIC FORM.—The Federal entities for

23 lending regulation, the Secretary of Housing and Urban

24 Development, and the appropriate head of each Federal

25 agency lender shall by regulation require any lender using
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1 the electronic form developed under this section with re2 spect to any loan to make available upon the request of

3 such Federal entity, Secretary, or agency head, a written

4 form under this section for such loan within 48 hours after

5 such request.’’.

6 SEC. 209. EXAMINATIONS REGARDING COMPLIANCE.

7 (a) AMENDMENT TO FEDERAL DEPOSIT INSURANCE

8 ACT.—

9 (1) IN GENERAL.—Section 10 of the Federal

10 Deposit Insurance Act (12 U.S.C. 1820) is amended

11 by adding at the end the following new subsection:

12 ‘‘(h) FLOOD INSURANCE COMPLIANCE BY INSURED

13 DEPOSITORY INSTITUTIONS.—

14 ‘‘(1) EXAMINATIONS.—The appropriate Federal

15 banking agency shall, during each scheduled on-site

16 examination required by this section, determine

17 whether the insured depository institution is comply18 ing with the requirements of the national flood in19 surance program.

20 ‘‘(2) REPORT.—Not later than 1 year after the

21 date of enactment of the National Flood Insurance

22 Reform Act of 1993 and biannually thereafter for

23 the next 4 years, each appropriate Federal banking

24 agency shall submit a report to the Congress on

25 compliance by insured depository institutions with
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1 the requirements of the national flood insurance pro2 gram. The report shall include a description of the

3 methods used to determine compliance, the number

4 of institutions examined during the reporting year,

5 a listing and total number of institutions found not

6 to be in compliance, actions taken to correct inci7 dents of noncompliance, and an analysis of compli8 ance, including a discussion of any trends, patterns,

9 and problems, and recommendations regarding rea10 sonable actions to improve the efficiency of the ex11 aminations processes.’’.

12 (2) CLERICAL AMENDMENT.—Notwithstanding

13 section 302(d) of the Federal Deposit Insurance

14 Corporation Improvement Act of 1991 (Public Law

15 102–242; 105 Stat. 2349), the material to be added

16 to section 10 of the Federal Deposit Insurance Act

17 by the amendment to be made by such section

18 302(d) shall be inserted after subsection (f) of such

19 section 10 rather than at the end of section 10.

20 (b) AMENDMENT TO FEDERAL CREDIT UNION

21 ACT.—Section 204 of the Federal Credit Union Act (12

22 U.S.C. 1784) is amended by adding at the end the follow23 ing new subsection:

24 ‘‘(e) FLOOD INSURANCE COMPLIANCE BY INSURED

25 CREDIT UNIONS.—
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1 ‘‘(1) EXAMINATION.—The Board shall, during

2 each examination conducted under this section, de3 termine whether the insured credit union is comply4 ing with the requirements of the national flood in5 surance program.

6 ‘‘(2) REPORT.—Not later than 1 year after the

7 date of enactment of the National Flood Insurance

8 Reform Act of 1993 and biannually thereafter for

9 the next 4 years, the Board shall submit a report to

10 Congress on compliance by insured credit unions

11 with the requirements of the national flood insur12 ance program. The report shall include a description

13 of the methods used to determine compliance, the

14 number of insured credit unions examined during

15 the reporting year, a listing and total number of in16 sured credit unions found not to be in compliance,

17 actions taken to correct incidents of noncompliance,

18 and an analysis of compliance, including a discussion

19 of any trends, patterns, and problems, and rec20 ommendations regarding reasonable actions to im21 prove the efficiency of the examinations processes.’’.

22 (c) AMENDMENT TO FEDERAL HOUSING ENTER23 PRISES FINANCIAL SAFETY AND SOUNDNESS ACT OF

24 1992.—Section 1317 of the Federal Housing Enterprises

25 Financial Safety and Soundness Act of 1992 (12 U.S.C.
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1 4517) is amended by adding at the end the following new

2 subsection:

3 ‘‘(g) FLOOD INSURANCE COMPLIANCE BY ENTER4 PRISES.—

5 ‘‘(1) EXAMINATION.—The Director shall, dur6 ing each annual examination of an enterprise con7 ducted under this section, determine whether the en8 terprise is complying with the requirements of sec9 tion 102(b)(2)(B) of the Flood Disaster Protection

10 Act of 1973.

11 ‘‘(2) REPORT.—Not later than 1 year after the

12 date of enactment of the National Flood Insurance

13 Reform Act of 1993 and biannually thereafter for

14 the next 4 years, the Director shall submit a report

15 to Congress on compliance by the enterprises with

16 the requirements of section 102(b)(2)(B) of the

17 Flood Disaster Protection Act of 1973. The report

18 shall include a description of the methods used to

19 determine compliance, identification of any enter20 prise found not to be in compliance, actions taken to

21 correct incidents of noncompliance, and an analysis

22 of compliance, including a discussion of any trends,

23 patterns, and problems, and recommendations re24 garding reasonable actions to improve the efficiency

25 of the examinations processes.’’.
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1 SEC. 210. FINANCIAL INSTITUTIONS EXAMINATION COUN2 CIL.

3 Section 1006 of the Federal Financial Institutions

4 Examination Council Act of 1978 (12 U.S.C. 3305) is

5 amended by adding at the end the following new sub6 section:

7 ‘‘(g) The council shall consult and assist the Federal

8 entities for lending regulation and the Secretary of Hous9 ing and Urban Development in developing and coordinat10 ing uniform standards and requirements for use by lenders

11 as provided under the National Flood Insurance Act of

12 1968 and the Flood Disaster Protection Act of 1973.’’.

13 SEC. 211. CLERICAL AMENDMENTS.

14 Section 102 of the Flood Disaster Protection Act of

15 1973 (42 U.S.C. 4012a) is amended—

16 (1) by striking the section heading and insert17 ing the following new section heading:

18 ‘‘FLOOD INSURANCE PURCHASE AND COMPLIANCE

19 REQUIREMENTS AND ESCROW ACCOUNTS’’; and

20 (2) in subsection (c), by inserting ‘‘EXCEPTION

21 TO PURCHASE REQUIREMENTS FOR STATE-OWNED

22 PROPERTY.—’’ before ‘‘Notwithstanding’’.
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1 TITLE III—RATINGS AND INCEN2 TIVES FOR COMMUNITY

3 FLOODPLAIN MANAGEMENT

4 PROGRAMS

5 SEC. 301. COMMUNITY RATING SYSTEM AND INCENTIVES

6 FOR COMMUNITY FLOODPLAIN MANAGE7 MENT.

8 Section 1315 of the National Flood Insurance Act of

9 1968 (42 U.S.C. 4022) is amended—

10 (1) by inserting after ‘‘SEC. 1315.’’ the follow11 ing: ‘‘(a) REQUIREMENT FOR PARTICIPATION IN

12 FLOOD INSURANCE PROGRAM.—’’; and

13 (2) by adding at the end the following new sub14 section:

15 ‘‘(b) COMMUNITY RATING SYSTEM AND INCENTIVES

16 FOR COMMUNITY FLOODPLAIN MANAGEMENT.—

17 ‘‘(1) AUTHORITY AND GOALS.—The Director

18 shall carry out a community rating system program

19 to evaluate the measures adopted by areas (and sub20 divisions thereof) in which the Director has made

21 flood insurance coverage available to provide for ade22 quate land use and control provisions consistent with

23 the comprehensive criteria for such land manage24 ment and use under section 1361, to facilitate accu25 rate risk-rating, to promote flood insurance aware-
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1 ness, and to complement adoption of more effective

2 measures for floodplain and coastal erosion manage3 ment.

4 ‘‘(2) INCENTIVES.—The program under this

5 subsection shall provide incentives in the form of ad6 justments in the premium rates for flood insurance

7 coverage in areas that the Director determines have

8 adopted and enforced the goals of the community

9 rating system under this subsection. In providing in10 centives under this paragraph, the Director may pro11 vide for additional adjustments in premium rates for

12 flood insurance coverage in areas that the Director

13 determines have implemented measures relating to

14 the protection of natural and beneficial floodplain

15 functions.

16 ‘‘(3) FUNDS.—The Director shall carry out the

17 program under this subsection with amounts, as the

18 Director determines necessary, from the National

19 Flood Insurance Fund under section 1310 and any

20 other amounts that may be appropriated for such

21 purpose.

22 ‘‘(4) REPORTS.—The Director shall submit a

23 report to the Congress regarding the program under

24 this subsection not later than the expiration of the

25 2-year period beginning on the date of the enact-
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1 ment of the National Flood Insurance Reform Act of

2 1993. The Director shall submit a report under this

3 paragraph not less than every 2 years thereafter.

4 Each report under this paragraph shall include an

5 analysis of the cost-effectiveness and other accom6 plishments and shortcomings of the program and

7 any recommendations of the Director for legislation

8 regarding the program.’’.

9 SEC. 302. FUNDING.

10 Section 1310(a) of the National Flood Insurance Act

11 of 1968 (42 U.S.C. 4017(a)) is amended—

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

13 end;

14 (2) by redesignating paragraph (5) as para15 graph (9); and

16 (3) by inserting after paragraph (4) the follow17 ing new paragraph:

18 ‘‘(5) for carrying out the program under section

19 1315(b);’’.

20 TITLE IV—MITIGATION OF

21 FLOOD AND EROSION RISKS

22 SEC. 401. REPEAL OF FLOODED PROPERTY PURCHASE AND

23 LOAN PROGRAM.

24 (a) REPEAL.—Section 1362 of the National Flood In25 surance Act of 1968 (42 U.S.C. 4103) is hereby repealed.
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1 (b) TRANSITION PHASE.—Notwithstanding sub2 section (a), during the 1-year period beginning on the date

3 of the enactment of this Act, the Director of the Federal

4 Emergency Management Agency may enter into loan and

5 purchase commitments as provided under section 1362 of

6 such Act (as in effect immediately before the enactment

7 of this Act).

8 (c) SAVINGS PROVISION.—Notwithstanding sub9 section (a), the Director shall take any action necessary

10 to comply with any purchase or loan commitment entered

11 into before the expiration of the period referred to in sub12 section (b) pursuant to authority under section 1362 of

13 the National Flood Insurance Act of 1968 or subsection

14 (b).

15 SEC. 402. TERMINATION OF EROSION-THREATENED STRUC16 TURES PROGRAM.

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

18 Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended

19 by striking subsection (c).

20 (b) TRANSITION PHASE.—Notwithstanding sub21 section (a), during the 1-year period beginning on the date

22 of the enactment of this Act, the Director of the Federal

23 Emergency Management Agency may pay amounts under

24 flood insurance contracts for demolition or relocation of

25 structures as provided in section 1306(c) of the National
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1 Flood Insurance Act of 1968 (as in effect immediately be2 fore the enactment of this Act).

3 (c) SAVINGS PROVISION.—Notwithstanding sub4 section (a), the Director shall take any action necessary

5 to make payments under flood insurance contracts pursu6 ant to any commitments made before the expiration of the

7 period referred to in subsection (b) pursuant to the au8 thority under section 1306(c) of the National Flood Insur9 ance Act of 1968 or subsection (b).

10 SEC. 403. MITIGATION ASSISTANCE RESPONSIBILITIES IN

11 FEDERAL INSURANCE ADMINISTRATION.

12 Section 1105(a) of the Housing and Urban Develop13 ment Act of 1968 (42 U.S.C. 4129(a)) is amended—

14 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

15 (2) by adding at the end the following new

16 paragraph:

17 ‘‘(2) The Director of the Federal Emergency Man18 agement Agency shall coordinate all mitigation activities,

19 including the administration of the program for mitigation

20 assistance under section 1366, under the Federal Insur21 ance Administrator. Such activities shall include the devel22 opment and implementation of various mitigation activi23 ties and techniques, the provision of advice and assistance

24 regarding mitigation to States, communities, and individ25 uals, including planning assistance under section 1366(b),
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1 coordination with other Federal flood and erosion mitiga2 tion efforts, and coordination with State and local govern3 ments and public and private agencies and organizations

4 for collection and dissemination of information regarding

5 erosion.’’.

6 SEC. 404. STATE AND COMMUNITY MITIGATION ASSIST7 ANCE PROGRAM.

8 (a) IN GENERAL.—Chapter III of the National Flood

9 Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as

10 amended by the preceding provisions of this Act, is further

11 amended by adding at the end the following new section:

12 ‘‘STATE AND COMMUNITY MITIGATION ASSISTANCE

13 ‘‘SEC. 1366. (a) AUTHORITY.—The Director shall

14 carry out a program to provide financial assistance to

15 States and communities, using amounts made available

16 from the National Flood Mitigation Fund under section

17 1367, for planning and carrying out activities designed to

18 reduce the risk of flood and erosion damage to structures

19 covered under contracts for flood insurance under this

20 title. Such financial assistance shall be made available in

21 the form of grants under subsection (b) for planning as22 sistance and grants under this section for carrying out

23 mitigation activities.

24 ‘‘(b) PLANNING ASSISTANCE GRANTS.—

25 ‘‘(1) IN GENERAL.—The Director may make

26 grants under this subsection to States and commu-
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1 nities to assist in developing mitigation plans under

2 subsection (c).

3 ‘‘(2) FUNDING.—Of any amounts made avail4 able from the National Flood Mitigation Fund for

5 use under this section in any fiscal year, the Direc6 tor may use not more than $1,500,000 to provide

7 planning assistance grants under this subsection.

8 ‘‘(3) LIMITATIONS.—

9 ‘‘(A) TIMING.—A grant under this sub10 section may be awarded to a State or commu11 nity not more than once every 5 years and each

12 grant may cover a period of 1 to 3 years.

13 ‘‘(B) SINGLE GRANTEE AMOUNT.—A grant

14 for planning assistance may not exceed—

15 ‘‘(i) $150,000, to any State; or

16 ‘‘(ii) $50,000, to any community.

17 ‘‘(C) CUMULATIVE STATE GRANT

18 AMOUNT.—The sum of the amounts of grants

19 under this subsection in any fiscal year to any

20 one State and all communities located in such

21 State may not exceed $300,000.

22 ‘‘(c) MITIGATION PLAN REQUIREMENT.—To be eligi23 ble to receive financial assistance under this section for

24 mitigation activities, a State or community shall develop,

25 and have approved by the Director, a flood and erosion
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1 risk mitigation plan (hereafter in this section referred to

2 as a ‘mitigation plan’), that is more protective against

3 flood losses and, if applicable, erosion losses, than the cri4 teria established by the Director under section 1361 and

5 provides such protection with respect to structures covered

6 by contracts for flood insurance under this title. The miti7 gation plan shall include a comprehensive strategy for

8 mitigation activities adopted by the State or community

9 following a public hearing.

10 ‘‘(d) NOTIFICATION OF APPROVAL.—The Director

11 shall notify a State or community submitting a mitigation

12 plan of the approval or disapproval of the plan not later

13 than 120 days after submission of the plan. If the Director

14 does not approve a plan, the Director shall notify the State

15 or community in writing of the reasons for such dis16 approval.

17 ‘‘(e) ELIGIBLE MITIGATION ACTIVITIES.—

18 ‘‘(1) DETERMINATION.—Amounts provided

19 under this section (other than under subsection (b))

20 may be used only for mitigation activities specified

21 in a mitigation plan approved by the Director under

22 subsection (d). The Director may approve only miti23 gation plans that specify mitigation activities that

24 the Director determines are technically feasible and

25 cost-effective.
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1 ‘‘(2) ELIGIBLE ACTIVITIES.—The Director shall

2 determine whether mitigation activities described in

3 a mitigation plan submitted under subsection (d) by

4 a State or community comply with the requirements

5 under paragraph (1). Such activities may include—

6 ‘‘(A) elevation, relocation, demolition, or

7 floodproofing of structures, particularly struc8 tures incurring repetitive flood-related damage;

9 ‘‘(B) acquisition by States and commu10 nities of property substantially damaged by

11 flood for public use as the Director determines

12 is consistent with sound land management and

13 use in such area;

14 ‘‘(C) the provision of technical assistance

15 by States to communities and individuals to

16 conduct eligible mitigation activities;

17 ‘‘(D) other activities that the Director con18 siders appropriate and specifies in regulation;

19 and

20 ‘‘(E) other mitigation activities not de21 scribed in subparagraphs (A) through (C) or

22 the regulations issued under subparagraph (D),

23 that are described in the mitigation plan of a

24 State or community.
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1 ‘‘(f) MATCHING REQUIREMENT.—The Director may

2 not provide mitigation assistance under this section to a

3 State or community in an amount exceeding 3 times the

4 amount that the State or community certifies, as the Di5 rector shall require, that the State or community will con6 tribute from other funds to develop a mitigation plan

7 under subsection (c) and to carry out mitigation activities

8 under the approved mitigation plan of the State or com9 munity.

10 ‘‘(g) OVERSIGHT OF MITIGATION PLANS.—The Di11 rector shall conduct oversight of recipients of mitigation

12 assistance under this section to ensure that the assistance

13 is used in compliance with the approved mitigation plans

14 of the recipients and that matching funds certified under

15 subsection (f) are used in accordance with such certifi16 cation.

17 ‘‘(h) RECAPTURE.—

18 ‘‘(1) NONCOMPLIANCE WITH PLAN.—If the Di19 rector determines that a State or community that

20 has received mitigation assistance under this section

21 has not carried out the mitigation activities as set

22 forth in the mitigation plan, the Director shall re23 capture any unexpended amounts and deposit the

24 amounts in the National Flood Mitigation Fund

25 under section 1367.
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1 ‘‘(2) FAILURE TO PROVIDE MATCHING

2 FUNDS.—If the Director determines that a State or

3 community that has received mitigation assistance

4 under this section has not provided matching funds

5 in the amount certified under subsection (f), the Di6 rector shall recapture any unexpended amounts of

7 mitigation assistance exceeding 3 times the amount

8 of such matching funds actually provided and de9 posit the amounts in the National Flood Mitigation

10 Fund under section 1367.

11 ‘‘(i) REPORTS.—Not later than 1 year after the date

12 of enactment of the National Flood Insurance Reform Act

13 of 1993 and biannually thereafter, the Director shall sub14 mit a report to the Congress describing the status of flood

15 and erosion mitigation activities carried out with assist16 ance provided under this section.

17 ‘‘(j) DEFINITION OF COMMUNITY.—For purposes of

18 this section, the term ‘community’ means a political sub19 division that (1) has zoning and building code jurisdiction

20 over a particular area of special flood hazards, and (2)

21 is participating in the national flood insurance program.’’.

22 (b) REGULATIONS.—Not later than 6 months after

23 date of enactment of this Act, the Director of the Federal

24 Emergency Management Agency shall issue regulations to
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1 carry out section 1366 of the National Flood Insurance

2 Act of 1968, as added by subsection (a).

3 SEC. 405. ESTABLISHMENT OF NATIONAL FLOOD MITIGA4 TION FUND.

5 (a) IN GENERAL.—Chapter III of the National Flood

6 Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as

7 amended by the preceding provisions of this Act, is further

8 amended by adding at the end the following new section:

9 ‘‘NATIONAL FLOOD MITIGATION FUND

10 ‘‘SEC. 1367. (a) ESTABLISHMENT AND AVAILABIL11 ITY.—The Director shall establish in the Treasury of the

12 United States a fund to be known as the National Flood

13 Mitigation Fund, which shall be credited with amounts de14 scribed in subsection (b) and shall be available, to the ex15 tent provided in appropriation Acts, for providing assist16 ance under section 1366.

17 ‘‘(b) CREDITS.—The National Flood Mitigation Fund

18 shall be credited with—

19 ‘‘(1) any premium surcharges assessed under

20 section 1308(e);

21 ‘‘(2) any penalties collected under section

22 102(f) of the Flood Disaster Protection Act of 1973;

23 ‘‘(3) any amounts recaptured under section

24 1366(h); and

25 ‘‘(4) any amounts advanced from the National

26 Flood Insurance Fund under section 1310(a)(6).
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1 ‘‘(c) INVESTMENT.—If the Director determines that

2 the amounts in the National Flood Mitigation Fund are

3 in excess of amounts needed under subsection (a), the Di4 rector may invest any excess amounts the Director deter5 mines advisable in interest-bearing obligations issued or

6 guaranteed by the United States.

7 ‘‘(d) REPORT.—The Director shall submit a report

8 to the Congress not later than the expiration of the 1-

9 year period beginning on the date of the enactment of this

10 Act and not less than once during each successive 2-year

11 period thereafter. The report shall describe the status of

12 the Fund and any activities carried out with amounts from

13 the Fund.’’.

14 (b) ADVANCES FROM NATIONAL FLOOD INSURANCE

15 FUND.—Section 1310(a) of the National Flood Insurance

16 Act of 1968 (42 U.S.C. 4017) is amended by inserting

17 after paragraph (5) (as added by the preceding provisions

18 of this Act) the following new paragraph:

19 ‘‘(6) for advances to the National Mitigation In20 surance Fund under section 1367, which shall be

21 nonrepayable and shall not exceed $10,000,000 in

22 any fiscal year;’’.
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1 SEC. 406. INSURANCE PREMIUM MITIGATION SURCHARGE.

2 (a) IN GENERAL.—Section 1308 of the National

3 Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended

4 by adding at the end the following new subsection:

5 ‘‘(e) INSURANCE PREMIUM MITIGATION SUR6 CHARGE.—

7 ‘‘(1) ASSESSMENT.—Notwithstanding any other

8 provision of this title, the Director shall assess, with

9 respect to each contract for flood insurance coverage

10 under this title, a mitigation surcharge of—

11 ‘‘(A) $10 per policy term, for policies cov12 ering structures that are principal residences;

13 and

14 ‘‘(B) the amount established by the Direc15 tor, not to exceed $25 per policy term, for poli16 cies covering other structures.

17 ‘‘(2) DEPOSIT IN MITIGATION FUND.—Any

18 mitigation surcharges collected shall be paid into the

19 National Flood Mitigation Fund under section 1367.

20 ‘‘(3) EXEMPTION.—The mitigation surcharges

21 shall not be subject to any agents’ commissions,

22 company expenses allowances, or State or local pre23 mium taxes.’’.

24 (b) APPLICABILITY.—The amendment made by sub25 section (a) shall apply only to any contract for flood insur26 ance under the National Flood Insurance Act of 1968 is-
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1 sued or renewed after the expiration of the 24-month pe2 riod beginning on the date of the enactment of this Act.

3 SEC. 407. LIMITATIONS ON NEW FLOOD INSURANCE COV4 ERAGE IN EROSION HAZARD AREAS.

5 The National Flood Insurance Act of 1968 (42

6 U.S.C. 4001 et seq.) is amended by inserting after section

7 1313 the following new section:

8 ‘‘SEC. 1314. PROPERTIES LOCATED WITHIN 30-YEAR AND 60-

9 YEAR EROSION HAZARD AREAS.

10 ‘‘(a) PROPERTIES LOCATED WITHIN 30-YEAR ERO11 SION HAZARD ZONE.—After the establishment of erosion

12 hazard areas under section 1360(g), the Director may not

13 make flood insurance available within a 30-year erosion

14 hazard zone with respect to any new—

15 ‘‘(1) construction; or

16 ‘‘(2) addition to an existing structure, if the ad17 dition makes the structure not a readily movable

18 structure.

19 ‘‘(b) PROPERTIES LOCATED WITHIN 60-YEAR ERO20 SION HAZARD AREA AND OUTSIDE 30-YEAR EROSION

21 HAZARD ZONE.—After the establishment of erosion haz22 ard zones under section 1360(g), the Director may not

23 make flood insurance available with respect to any new—

24 ‘‘(1) nonresidential structure;
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1 ‘‘(2) residential structure that is not a readily

2 movable structure; or

3 ‘‘(3) addition to an existing structure, if the ad4 dition makes the structure not a readily movable

5 structure;

6 that is constructed or relocated landward of the 30-year

7 erosion hazard zone and within the 60-year erosion hazard

8 zone established by the Director under such section.’’.

9 SEC. 408. STUDY OF MITIGATION INSURANCE.

10 (a) STUDY.—The Director of the Federal Emergency

11 Management Agency shall conduct a study to determine

12 the feasibility of providing, as part of the flood insurance

13 policy, insurance coverage to provide for increases in the

14 costs of repair and reconstruction of repetitively and se15 verely flood-damaged insured buildings, in order to repair,

16 reconstruct, or otherwise mitigate future hazards to those

17 buildings to comply with local building codes and flood18 plain management ordinances to the greatest extent pos19 sible. In conducting the study, the Director shall seek in20 volvement from other Federal, State, and local agencies,

21 and representation from the insurance, construction, and

22 floodplain management interests. Under the study the Di23 rector shall—

24 (1) identify potential activities related to repair,

25 reconstruction, or otherwise achieving mitigation re-
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1 quired to comply with standards under the national

2 flood insurance program and local building codes,

3 and evaluate the costs of such activities;

4 (2) evaluate how such insurance coverage could

5 be utilized to achieve economically justified acquisi6 tion or relocation of certain structures under certain

7 circumstances;

8 (3) evaluate the cost of providing the additional

9 coverage and investigate a full range of measures for

10 funding such costs, including changes in coverage,

11 rates, and deductibles;

12 (4) evaluate the effect changes identified in

13 paragraph (3) would have on the entire policy base,

14 the cost of flood insurance, retention of policies,

15 marketing of policies, the number and magnitude of

16 claims paid, and the economic soundness and value

17 of flood-prone property, and provide detail on such

18 effects by State and flood hazard zone; and

19 (5) identify mechanisms required to identify

20 qualifying structures, determine appropriate mitiga21 tion measures, coordinate with State and local offi22 cials, provide consistency with State and local plans

23 and programs, deliver the increased insurance pay24 ments, and verify appropriate actions by policy25 holders.
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1 (b) REPORT.—The Director shall submit to the Con2 gress a report describing the study not later than the expi3 ration of the 18-month period beginning on the date of

4 the enactment of this Act. The report shall include conclu5 sions and recommendations of the Director in conducting

6 the study.

7 SEC. 409. RIVERINE EROSION STUDY.

8 (a) STUDY.—The Director of the Federal Emergency

9 Management Agency shall conduct a study to determine

10 the feasibility of identifying and establishing erosion rates

11 for communities subject to riverine erosion hazards and

12 the best manner of identifying and establishing such rates.

13 Under the study the Director shall—

14 (1) investigate and assess existing and state-of15 the-art technical methodologies for assessing riverine

16 erosion;

17 (2) examine natural riverine processes, environ18 mental conditions, and human-induced changes to

19 the banks of rivers and streams, examples of erosion

20 and likely causes, and examples of erosion control

21 and reasons for their performance; and

22 (3) analyze riverine erosion management strate23 gies, the technical standards, methods, and data nec24 essary to support such strategies, and methods of
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1 administering such strategies through the national

2 flood insurance program.

3 (b) REPORT.—The Director shall submit a report to

4 the Congress regarding the findings and conclusions of the

5 study under this section not later than the expiration of

6 the 2-year period beginning on the date of the enactment

7 of this Act. The report shall include any recommendations

8 of the Director regarding appropriate methods and ap9 proaches for identifying and determining riverine erosion

10 rates and management strategies relating to riverine ero11 sion.

12 SEC. 410. COORDINATION WITH COASTAL ZONE MANAGE13 MENT PROGRAMS.

14 (a) IN GENERAL.—In implementing this title and the

15 amendments made by this title, the Director of the Fed16 eral Emergency Management Agency shall consult with

17 the Under Secretary of Commerce for Oceans and Atmos18 phere and representatives from State coastal zone man19 agement programs to promote full coordination of the ero20 sion management provisions of the National Flood Insur21 ance Act of 1968 as amended by this Act, and the provi22 sions of the Coastal Zone Management Act of 1972. The

23 Director shall, to the greatest extent possible, utilize State

24 management programs approved under section 306 of the

25 Coastal Zone Management Act of 1972 to facilitate devel-
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1 opment and implementation of regulations and guidelines

2 for this title.

3 (b) COORDINATION REPORT.—The Director shall

4 prepare a report that details the proposed mechanisms for

5 achieving the coordination required in subsection (a). In

6 preparing the report, the Director shall consult with the

7 Under Secretary of Commerce for Oceans and Atmosphere

8 This report shall be transmitted to the Congress not later

9 than 2 years after the date of enactment of this Act.

10 TITLE V—FLOOD INSURANCE

11 TASK FORCE

12 SEC. 501. FLOOD INSURANCE INTERAGENCY TASK FORCE.

13 (a) ESTABLISHMENT.—There is hereby established

14 an interagency task force to be known as the Flood Insur15 ance Task Force (in this section referred to as the ‘‘Task

16 Force’’).

17 (b) MEMBERSHIP.—

18 (1) IN GENERAL.—The Task Force shall be

19 composed of 7 members, who shall be the designees

20 of—

21 (A) the Federal Insurance Administrator;

22 (B) the Federal Housing Commissioner;

23 (C) the Secretary of Veterans Affairs;

24 (D) the Administrator of the Farmers

25 Home Administration;
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1 (E) the Administrator of the Small Busi2 ness Administration;

3 (F) a designee of the Financial Institutions

4 Examination Council;

5 (G) the chairman of the Board of Direc6 tors of the Federal Home Loan Mortgage Cor7 poration;

8 (H) the chairman of the Board of Direc9 tors of the Federal National Mortgage Associa10 tion;

11 (I) the Under Secretary of Commerce for

12 Oceans and Atmosphere;

13 (J) the Director of the United States Fish

14 and Wildlife Service; and

15 (K) the Administrator of the Environ16 mental Protection Agency.

17 (2) QUALIFICATIONS.—Members of the Task

18 Force shall be designated for membership on the

19 Task Force by reason of demonstrated knowledge

20 and competence regarding the national flood insur21 ance program.

22 (c) DUTIES.—The Task Force shall carry out the fol23 lowing duties:

24 (1) Make recommendations to the head of each

25 Federal agency and corporation referred to under
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1 subsection (b)(1) regarding establishment or adop2 tion of standardized enforcement procedures among

3 such agencies and corporations responsible for en4 forcing compliance with the requirements under the

5 national flood insurance program to ensure fullest

6 possible compliance with such requirements.

7 (2) Conduct a study of the extent to which Fed8 eral agencies and the secondary mortgage market

9 can provide assistance in ensuring compliance with

10 the requirements under the national flood insurance

11 program and submit to the Congress a report de12 scribing the study and any conclusions.

13 (3) Conduct a study of the extent to which ex14 isting programs of Federal agencies and corpora15 tions for compliance with the requirements under

16 the national flood insurance program can serve as a

17 model for other Federal agencies responsible for en18 forcing compliance, and submit to the Congress a re19 port describing the study and any conclusions.

20 (4) Develop guidelines regarding enforcement

21 and compliance procedures, based on the studies and

22 findings of the Task Force and publishing the guide23 lines in a usable format.
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1 (d) NONCOMPENSATION.—Members of the Task

2 Force shall receive no additional pay by reason of their

3 service on the Task Force.

4 (e) CHAIRPERSON.—The members of the Task Force

5 shall elect one member as chairperson of the Task Force.

6 (f) MEETINGS AND ACTION.—The Task Force shall

7 meet at the call of the chairman or a majority of the mem8 bers of the Task Force and may take action by a vote

9 of the majority of the members. The Federal Insurance

10 Administrator shall coordinate and call the initial meeting

11 of the Task Force.

12 (g) OFFICERS.—The chairperson of the Task Force

13 may appoint any officers to carry out the duties of the

14 Task Force under subsection (c).

15 (h) STAFF OF FEDERAL AGENCIES.—Upon request

16 of the chairperson of the Task Force, the head of any of

17 the Federal agencies and corporations referred to under

18 subsection (b)(1) may detail, on a nonreimbursable basis,

19 any of the personnel of such agency to the Task Force

20 to assist the Task Force in carrying out its duties under

21 this Act.

22 (i) POWERS.—In carrying out this section, the Task

23 Force may hold hearings, sit and act at times and places,

24 take testimony, receive evidence and assistance, provide
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1 information, and conduct research as the Task Force con2 siders appropriate.

3 (j) SUBCOMMITTEE ON NATURAL AND BENEFICIAL

4 FUNCTIONS OF THE FLOODPLAIN.—The members of the

5 Task Force appointed under subsections (b)(1) (I), (J),

6 and (K) shall constitute a select subcommittee which, in

7 addition to their duties under subsection (c), shall make

8 recommendations regarding the implementation of the

9 provisions of the National Flood Insurance Act of 1968

10 that deal with protection of the natural and beneficial

11 functions of the floodplain.

12 (k) TERMINATION.—The Task Force shall terminate

13 upon the expiration of the 24-month period beginning

14 upon the designation of the last member to be designated

15 under subsection (b)(1).

16 TITLE VI—MISCELLANEOUS

17 PROVISIONS

18 SEC. 601. EXTENSION OF FLOOD INSURANCE PROGRAM.

19 (a) IN GENERAL.—Section 1319 of the National

20 Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended

21 by striking ‘‘September 30, 1995’’ and inserting ‘‘Septem22 ber 30, 1999’’.

23 (b) EMERGENCY IMPLEMENTATION.—Section

24 1336(a) of the National Flood Insurance Act of 1968 (42
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1 U.S.C. 4056(a)) is amended by striking ‘‘September 30,

2 1995’’ and inserting ‘‘September 30, 1999’’.

3 (c) LIMITATION ON ANNUAL PREMIUM INCREASES.—

4 Section 541(d) of the Housing and Community Develop5 ment Act of 1987 (42 U.S.C. 4015 note) is amended by

6 striking ‘‘September 30, 1995’’ and inserting ‘‘September

7 30, 1999’’.

8 SEC. 602. MAXIMUM FLOOD INSURANCE COVERAGE

9 AMOUNTS.

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

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

12 follows:

13 (1) RESIDENTIAL PROPERTY.—In paragraph

14 (2), by striking ‘‘an amount of $150,000 under the

15 provisions of this clause’’ and inserting the follow16 ing: ‘‘a total amount (including such limits specified

17 in paragraph (1)(A)(i)) equal to the dollar amount

18 limitation pursuant to section 305(a)(2) of the Fed19 eral Home Loan Mortgage Corporation Act in effect

20 for a single-family residence’’.

21 (2) RESIDENTIAL PROPERTY CONTENTS.—In

22 paragraph (3), by striking ‘‘an amount of $50,000

23 under the provisions of this clause’’ and inserting

24 the following: ‘‘a total amount (including such limits

25 specified in paragraph (1)(A)(ii)) of $100,000’’.
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1 (3) NONRESIDENTIAL PROPERTY AND CON2 TENTS.—By striking paragraph (4) and inserting

3 the following new paragraph:

4 ‘‘(4) in the case of any nonresidential property,

5 including churches, for which the risk premium rate

6 is determined in accordance with the provisions of

7 section 1307(a)(1), additional flood insurance in ex8 cess of the limits specified in subparagraphs (B) and

9 (C) of paragraph (1) shall be made available to

10 every insured upon renewal and every applicant for

11 insurance, in respect to any single structure, up to

12 a total amount (including such limits specified in

13 subparagraph (B) or (C) or paragraph (1), as appli14 cable) of $500,000 for each structure and $500,000

15 for any contents related to each structure; and’’.

16 (b) REMOVAL OF CEILING ON COVERAGE RE17 QUIRED.—Section 1306(b) of the National Flood Insur18 ance Act of 1968 (42 U.S.C. 4013(b)) is amended—

19 (1) in paragraph (5), by striking ‘‘; and’’ at the

20 end and inserting a period; and

21 (2) by striking paragraph (6).

22 SEC. 603. FLOOD INSURANCE PROGRAM ARRANGEMENTS

23 WITH PRIVATE INSURANCE ENTITIES.

24 Section 1345(b) of the National Flood Insurance Act

25 of 1968 (42 U.S.C. 4081(b)) is amended by striking the
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1 period at the end and inserting the following: ‘‘and without

2 regard to the provisions of the Federal Advisory Commit3 tee Act (5 U.S.C. App.).’’.

4 SEC. 604. UPDATING OF FLOOD MAPS AND ASSESSMENT

5 AND MAPPING OF EROSION HAZARD ZONES.

6 Section 1360 of the National Flood Insurance Act of

7 1968 (42 U.S.C. 4101) is amended by adding at the end

8 the following new subsections:

9 ‘‘(e) REVIEW OF FLOOD MAPS.—Once during each

10 5-year period (the 1st such period beginning on the date

11 of the enactment of the National Flood Insurance Reform

12 Act of 1993) or more often as the Director determines

13 necessary because of storm-induced erosion, increased wa14 tershed development, or other extraordinary situations,

15 the Director shall assess the need to revise and update

16 all floodplain areas and flood risk zones identified, delin17 eated, or established under this section.

18 ‘‘(f) UPDATING FLOOD MAPS.—The Director shall

19 revise and update any floodplain areas and flood-risk

20 zones—

21 ‘‘(1) upon the determination of the Director,

22 according to the assessment under subsection (e),

23 that revision and updating are necessary for the

24 areas and zones; or
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1 ‘‘(2) upon the request from any State or local

2 government stating that specific floodplain areas or

3 flood-risk zones in the State or locality need revision

4 or updating, if sufficient technical data justifying

5 the request is submitted and the unit of government

6 making the request agrees to provide funds in an

7 amount equal to the amount of funds provided by

8 the Director (or the equivalent value of data, tech9 nical analysis, or other in-kind services) for the re10 quested revision or update.

11 ‘‘(g) ESTABLISHMENT OF EROSION HAZARD

12 ZONES.—

13 ‘‘(1) IN GENERAL.—Not later than the expira14 tion of the 6-year period beginning on the date of

15 the enactment of the National Flood Insurance Re16 form Act of 1993, the Director shall assess, identify,

17 and map, before all areas along the shorelines of the

18 Great Lakes and the tidal waters of the United

19 States that have special erosion hazards (in this sec20 tion referred to as ‘erosion hazard zones’), as pro21 vided in this subsection.

22 ‘‘(2) 60-YEAR EROSION ZONES.—On each flood

23 insurance rate map established under this section,

24 the Director shall identify and provide legible demar25 cation for areas that are subject to special erosion
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1 hazards within a 60-year period based on past an2 nual average rates of shoreline retreat in such areas

3 (in this section referred to as ‘60-year erosion

4 zones’).

5 ‘‘(3) 30-YEAR EROSION ZONES.—On each flood

6 insurance rate map established under this section,

7 the Director shall provide information by area re8 garding the existing annual average rate of erosion

9 for each area, so that users of the maps can delin10 eate boundaries for areas subject to erosion within

11 30 years (in this section referred to as ‘30-year ero12 sion zones’).

13 ‘‘(4) UPDATING.—The Director shall provide

14 for revising and updating erosion hazard zones as

15 frequently as the Director determines to be nec16 essary for purposes of this title. In revising the geo17 graphical boundaries of erosion hazard zones, the

18 Director shall place special emphasis on consider19 ing—

20 ‘‘(A) areas (or subdivisions thereof) that

21 are experiencing or have recently experienced

22 erosion rates in excess of the annual average

23 erosion rate, due to storms, high lake levels, or

24 other factors; and
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1 ‘‘(B) areas where nonstructural and struc2 tural measures have been implemented by a

3 community to control erosion or erosion rates

4 have been otherwise significantly altered by

5 manmade or induced activity.’’.

6 SEC. 605. FUNDING FOR INCREASED ADMINISTRATIVE AND

7 OPERATIONAL RESPONSIBILITIES.

8 (a) AVAILABILITY OF FUND.—Section 1310(a) of the

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

10 4017(a)) is amended—

11 (1) in the matter preceding paragraph (1), by

12 inserting ‘‘(except as otherwise provided in this sec13 tion)’’ after ‘‘without fiscal year limitation’’; and

14 (2) by inserting after paragraph (6) (as added

15 by the preceding provisions of this Act) the following

16 new paragraphs:

17 ‘‘(7) for assessment and mapping of erosion

18 hazard zones under section 1360(g), except that the

19 fund shall be available for the purpose under this

20 paragraph in an amount not to exceed an aggregate

21 of $25,000,000 over the 6-year period beginning on

22 the date of the enactment of the National Flood In23 surance Reform Act of 1993;

24 ‘‘(8) for the revision and updating of erosion

25 hazard zones under section 1360(g)(4), except that
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1 the fund shall be available for the purpose under

2 this paragraph in an amount not to exceed

3 $2,000,000 in each fiscal year beginning after the

4 expiration of the 6-year period beginning on the date

5 of the enactment of the National Flood Insurance

6 Reform Act of 1993; and’’.

7 SEC. 606. REGULATIONS.

8 The Director of the Federal Emergency Management

9 Agency, the Secretary of Housing and Urban Develop10 ment, and any appropriate head of any Federal agency

11 may each issue any regulations necessary to carry out the

12 applicable provisions of this Act and the applicable amend13 ments made by this Act.

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