IIA

103D CONGRESS

2D SESSION H. R. 3191

IN THE SENATE OF THE UNITED STATES

MAY 4 (legislative day, MAY 2), 1994

Received; read twice and referred to the Committee on Banking, Housing, and

Urban Affairs

AN ACT

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 1994’’.
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1 (b) TABLE OF CONTENTS.—

Sec. 1. Short title and table of contents.

Sec. 2. Declaration of purpose under 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 lenders.

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

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

Sec. 207. Fees for determining applicability of flood insurance purchase requirements.

Sec. 208. Notice requirements.

Sec. 209. Standard hazard determination forms.

Sec. 210. Examinations regarding compliance.

Sec. 211. Financial Institutions Examination Council.

Sec. 212. 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 RISKS

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

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

Sec. 403. Mitigation assistance program.

Sec. 404. Establishment of National Flood Mitigation Fund.

Sec. 405. Insurance premium mitigation surcharge.

Sec. 406. Study of mitigation insurance.

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. Limitation on premium increases.

Sec. 603. Maximum flood insurance coverage amounts.

Sec. 604. Flood insurance program arrangements with private insurance entities.

Sec. 605. Updating of flood maps.

Sec. 606. Technical Mapping Advisory Council.

Sec. 607. Evaluation of erosion hazards.

Sec. 608. Study of economic effects of charging actuarially-based premium

rates for pre-firm structures.
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Sec. 609. Effective dates of policies.

Sec. 610. Regulations.

Sec. 611. Relation to State and local laws.

1 SEC. 2. DECLARATION OF PURPOSE UNDER 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 particu24 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 (2) in paragraph (6), by striking the period at

4 the end and inserting a semicolon; and

5 (3) by inserting after paragraph (6) the follow6 ing new paragraphs:

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

8 agency that makes direct loans secured by improved

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

10 agency acts in such capacity;

11 ‘‘(8) ‘lender’ includes any regulated lending in12 stitution, other lending institution, and Federal

13 agency lender, but does not include any agency en14 gaged primarily in the purchase of mortgage loans;

15 ‘‘(9) ‘other lending institution’ means any lend16 ing institution that is not subject to the supervision,

17 approval, regulation, or insuring of any Federal en18 tity for lending regulation and that is not a Federal

19 agency lender, but does not include institutions en20 gaged primarily in the purchase of mortgage loans;

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

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

23 similar institution subject to the supervision, ap24 proval, regulation, or insuring of a Federal entity for

25 lending regulation; and
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1 ‘‘(11) ‘servicer’ means the person responsible

2 for receiving any scheduled periodic payments from

3 a borrower pursuant to the terms of a loan, includ4 ing amounts for taxes, insurance premiums, and

5 other charges with respect to the property, and mak6 ing the payments of principal and interest and such

7 other payments with respect to the amounts received

8 from the borrower as may be required pursuant to

9 the terms of the loan.’’.

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

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

12 4106(b)) is amended by striking ‘‘Federal instrumentality

13 described in such section shall by regulation require the

14 institutions’’ and inserting ‘‘Federal entity for lending reg15 ulation (with respect to regulated lending institutions), the

16 Secretary of Housing and Urban Development (with re17 spect to other lending institutions), and the appropriate

18 head of each Federal agency lender, shall by regulation

19 require the lenders’’.

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

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

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

23 amended—

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

25 end;
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1 (2) in paragraph (6), by striking the period at

2 the end and inserting a semicolon; and

3 (3) by inserting after paragraph (6) the follow4 ing new paragraphs:

5 ‘‘(7) the term ‘repetitive loss structure’ means

6 a structure covered by a contract for flood insurance

7 under this title that has incurred flood-related dam8 age on 2 occasions during a 10-year period ending

9 on the date of the event for which a second claim

10 is made, in which the cost of repair, on the average,

11 equaled or exceeded 25 percent of the value of the

12 structure at the time of each such flood event;

13 ‘‘(8) the term ‘coastal’ means relating to the

14 coastlines and bays of the tidal waters of the United

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

16 not refer to bayous, riverine areas, and riverine por17 tions of estuaries;

18 ‘‘(9) the term ‘Federal agency lender’ means a

19 Federal agency that makes direct loans secured by

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

21 such agency acts in such capacity;

22 ‘‘(10) the term ‘Federal entity for lending regu23 lation’ means the Board of Governors of the Federal

24 Reserve System, the Federal Deposit Insurance Cor25 poration, the Comptroller of the Currency, the Office
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1 of Thrift Supervision, and the National Credit

2 Union Administration, and with respect to a particu3 lar regulated lending institution means the entity

4 primarily responsible for the supervision, approval,

5 or regulation of the institution;

6 ‘‘(11) the term ‘lender’ includes any regulated

7 lending institution, other lending institution, and

8 Federal agency lender, but does not include any

9 agency engaged primarily in the purchase of mort10 gage loans;

11 ‘‘(12) the term ‘natural and beneficial flood12 plain functions’ means—

13 ‘‘(A) the functions associated with the nat14 ural or relatively undisturbed floodplain that (i)

15 moderate flooding, retain flood waters, reduce

16 erosion and sedimentation, and mitigate the ef17 fect of waves and storm surge from storms, and

18 (ii) reduce flood related damage; and

19 ‘‘(B) ancillary beneficial functions, includ20 ing maintenance of water quality and recharge

21 of ground water, that reduce flood related dam22 age;

23 ‘‘(13) the term ‘regulated lending institution’

24 means a bank, savings and loan association, credit

25 union, or similar institution subject to the super-
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1 vision, approval, regulation, or insuring of a Federal

2 entity for lending regulation;

3 ‘‘(14) the term ‘other lending institution’ means

4 any lending institution that is not subject to the su5 pervision, approval, regulation, or insuring of any

6 Federal entity for lending regulation and that is not

7 a Federal agency lender, but does not include insti8 tutions engaged primarily in the purchase of mort9 gage loans; and

10 ‘‘(15) the term ‘servicer’ means the person re11 sponsible for receiving any scheduled periodic pay12 ments from a borrower pursuant to the terms of a

13 loan, including amounts for taxes, insurance pre14 miums, and other charges with respect to the prop15 erty, and making the payments of principal and in16 terest and such other payments with respect to the

17 amounts received from the borrower as may be re18 quired pursuant to the terms of the loan.’’.

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

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

21 4029(d)) is amended by striking ‘‘federally supervised, ap22 proved, regulated or insured financial institution’’ and in23 serting ‘‘regulated lending institution, other lending insti24 tution, or Federal agency lender’’.
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1 TITLE II—COMPLIANCE AND

2 INCREASED PARTICIPATION

3 SEC. 201. EXISTING FLOOD INSURANCE PURCHASE RE4 QUIREMENTS.

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

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

7 (1) by inserting after ‘‘(a)’’ the following: ‘‘RE8 QUIREMENT FOR FEDERAL ASSISTANCE FOR ACQUI9 SITION OR CONSTRUCTION.—’’; and

10 (2) by adding at the end the following new sen11 tence: ‘‘This subsection may not be construed to per12 mit the provision of any amount of financial assist13 ance with respect to any building or mobile home

14 and related personal property for which flood insur15 ance is required under this subsection, unless the re16 quirements under this subsection are complied with

17 in full. The prohibitions and requirements of this

18 subsection relating to financial assistance may not

19 be waived for any purpose.’’.

20 SEC. 202. EXPANDED FLOOD INSURANCE PURCHASE RE21 QUIREMENTS.

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

23 of 1973 (42 U.S.C. 4012a(b)) is amended to read as fol24 lows:

25 ‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.—
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1 ‘‘(1) REGULATED LENDING INSTITUTIONS.—

2 Each Federal entity for lending regulation (after

3 consultation and coordination with the Financial In4 stitutions Examination Council established under the

5 Federal Financial Institutions Examination Council

6 Act of 1974) shall by regulation direct regulated

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

8 renew, after the expiration of 60 days following the

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

10 by improved real estate or a mobile home located or

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

12 the Director as an area having special flood hazards

13 and in which flood insurance has been made avail14 able under the National Flood Insurance Act of

15 1968, unless the building or mobile home and any

16 personal property securing such loan is covered for

17 the term of the loan by flood insurance in an

18 amount at least equal to the outstanding principal

19 balance of the loan or the maximum limit of cov20 erage made available under the Act with respect to

21 the particular type of property, whichever is less.

22 ‘‘(2) OTHER LENDING INSTITUTIONS.—The

23 Secretary of Housing and Urban Development (after

24 consultation and coordination with the Financial In-
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1 stitutions Examination Council) shall by regulation

2 direct that—

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

4 make, increase, extend, or renew any loan se5 cured by improved real estate consisting of a 1-

6 to 4-family residence or a mobile home located

7 or to be located in an area that has been identi8 fied by the Director of the Federal Emergency

9 Management Agency as an area having special

10 flood hazards and in which flood insurance has

11 been made available under the National Flood

12 Insurance Act of 1968, unless the building or

13 mobile home and any personal property secur14 ing such loan is covered for the term of the loan

15 by flood insurance in the amount provided in

16 paragraph (1); and

17 ‘‘(B) any loan that is—

18 ‘‘(i) secured by improved real estate

19 or a mobile home located in an area that

20 has been identified at the time of the origi21 nation of the loan by the Director of the

22 Federal Emergency Management Agency,

23 as an area of special flood hazards and in

24 which flood insurance is available under
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1 the National Flood Insurance Act of 1968,

2 and

3 ‘‘(ii) purchased by the Government

4 National Mortgage Association,

5 is covered for the term of the loan by flood in6 surance in the amount provided in paragraph

7 (1).

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

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

10 renew any loan secured by improved real estate or

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

12 that has been identified by the Director of the Fed13 eral Emergency Management Agency as an area

14 having special flood hazards and in which flood in15 surance has been made available under the National

16 Flood Insurance Act of 1968, unless the building or

17 mobile home and any personal property securing

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

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

20 The relevant head of each Federal agency lender

21 shall issue any regulations necessary to carry out

22 this paragraph. Such regulations shall be consistent

23 with and substantially identical to the regulations is24 sued under paragraphs (1) and (2).
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1 ‘‘(4) GOVERNMENT-SPONSORED ENTERPRISES

2 FOR HOUSING.—The Federal National Mortgage As3 sociation and the Federal Home Loan Mortgage

4 Corporation shall implement procedures reasonably

5 designed to ensure that any loan that is—

6 ‘‘(A) secured by improved real estate or a

7 mobile home located in an area that has been

8 identified at the time of the origination of the

9 loan by the Director as an area of special flood

10 hazards and in which flood insurance is avail11 able under the National Flood Insurance Act of

12 1968, and

13 ‘‘(B) purchased by either such entity,

14 is covered for the term of the loan by flood insur15 ance in the amount provided in paragraph (1).

16 ‘‘(5) CONTESTED DETERMINATIONS.—If a bor17 rower under a loan disputes or challenges the deter18 mination of the lender that the improved real estate

19 or mobile home securing the loan is located in an

20 area of special flood hazards, the lender shall review

21 and consider any relevant information, as deter22 mined by the Director, submitted to the lender by

23 the borrower.

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

25 (4) shall apply only with respect to any loan made,
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1 increased, extended, or renewed after the expiration

2 of the 1-year period beginning on the date of the en3 actment of the National Flood Insurance Reform

4 Act of 1994.’’.

5 SEC. 203. ESCROW OF FLOOD INSURANCE PAYMENTS.

6 Section 102 of the Flood Disaster Protection Act of

7 1973 (42 U.S.C. 4012a) is amended by adding at the end

8 the following new subsection:

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

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

11 residential real estate, each Federal entity for lend12 ing regulation (with respect to any loans of regu13 lated lending institutions) and the Secretary of

14 Housing and Urban Development (with respect to

15 any loans of other lending institutions), after con16 sultation and coordination with the Financial Insti17 tutions Examination Council, shall by regulation re18 quire that, if a lender or other servicer of the loan

19 requires the escrowing of taxes, insurance premiums,

20 fees, or any other charges for a loan secured by resi21 dential real estate or a mobile home, then all pre22 miums and fees for flood insurance under the Na23 tional Flood Insurance Act of 1968 for the residen24 tial real estate or mobile home shall be paid to the

25 lender or servicer of the loan. Premiums and fees
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1 paid to the lender or servicer shall be paid in a man2 ner sufficient to make payments as due for the dura3 tion of the loan. Upon receipt of the premiums, the

4 lender or servicer of the loan shall deposit the pre5 miums in an escrow account on behalf of the bor6 rower. Upon receipt of a notice from the Director or

7 the provider of the insurance that insurance pre8 miums are due, the lender or servicer shall pay from

9 the escrow account to the provider of the insurance

10 the amount of insurance premiums owed.

11 ‘‘(2) FEDERAL AGENCY LENDERS.—The appro12 priate head of each Federal agency lender shall by

13 regulation require and provide for escrow and pay14 ment of any flood insurance premiums and fees re15 lating to residential property securing loans made by

16 the Federal agency lender under the circumstances

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

18 Any regulations issued under this paragraph shall be

19 consistent with and substantially identical to the

20 regulations issued under paragraph (1).

21 ‘‘(3) APPLICABILITY OF RESPA.—Escrow ac22 counts established pursuant to this subsection shall

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

24 Estate Settlement Procedures Act of 1974.
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1 ‘‘(4) APPLICABILITY.—This subsection shall

2 apply only with respect to any loan made, increased,

3 extended, or renewed after the expiration of the 1-

4 year period beginning on the date of the enactment

5 of the National Flood Insurance Reform Act of

6 1994.’’.

7 SEC. 204. PLACEMENT OF FLOOD INSURANCE BY LENDERS.

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

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

10 4012a), as amended by the preceding provisions of this

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

12 new subsection:

13 ‘‘(e) PLACEMENT OF FLOOD INSURANCE BY LEND14 ER.—

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

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

17 loan secured by improved real estate or by a mobile

18 home located in an area that has been identified by

19 the Director as an area having special flood hazards

20 and in which flood insurance is available under the

21 National Flood Insurance Act of 1968, the lender or

22 servicer for the loan determines that the building or

23 mobile home and any personal property securing the

24 loan is covered by flood insurance in an amount less

25 than the amount required for the property pursuant
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1 to subsection (b), the lender or servicer shall notify

2 the borrower under the loan that the borrower

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

4 of flood insurance for the property that is not less

5 than the amount under subsection (b)(1), for the

6 term of the loan.

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

8 BORROWER.—If the borrower fails to purchase such

9 flood insurance within 60 days after such notifica10 tion, the lender or servicer for the loan shall pur11 chase the insurance on behalf of the borrower and

12 may charge the borrower for the cost of premiums

13 and fees incurred by the lender or servicer for the

14 loan in purchasing the insurance.

15 ‘‘(3) REVIEW OF DETERMINATION REGARDING

16 REQUIRED PURCHASE.—

17 ‘‘(A) IN GENERAL.—A borrower may re18 quest that the Director review a determination

19 that the improved real estate or mobile home

20 securing the loan is located in an area of special

21 flood hazards. Not later than 45 days after the

22 Director receives the request, the Director shall

23 review the determination and provide the bor24 rower with a letter stating whether or not the
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1 property is in a special flood hazards area. The

2 determination of the Director shall be final.

3 ‘‘(B) EFFECT OF DETERMINATION.—Any

4 person to whom a borrower provides a letter is5 sued by the Director pursuant to subparagraph

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

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

8 have no obligation under this title to require the

9 purchase of flood insurance on the property

10 during the 1-year period beginning upon the

11 date that such letter is provided.

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

13 apply to all loans outstanding on or after the date

14 of enactment of the National Flood Insurance Re15 form Act of 1994.’’.

16 SEC. 205. PENALTIES FOR FAILURE TO REQUIRE FLOOD IN17 SURANCE OR NOTIFY.

18 Section 102 of the Flood Disaster Protection Act of

19 1973 (42 U.S.C. 4012a), as amended by the preceding

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

21 the end the following new subsections:

22 ‘‘(f) CIVIL MONETARY PENALTIES FOR FAILURE TO

23 REQUIRE FLOOD INSURANCE OR NOTIFY.—

24 ‘‘(1) CIVIL MONETARY PENALTIES AGAINST

25 LENDERS.—Any regulated or other lending institu-
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1 tion that is found to have a pattern or practice of

2 committing violations under paragraph (2) shall be

3 assessed a civil penalty by the appropriate Federal

4 entity for lending regulation (with respect to regu5 lated lending institutions) or the Secretary of Hous6 ing and Urban Development (with respect to other

7 lending institutions) in the amount provided under

8 paragraph (5).

9 ‘‘(2) LENDER VIOLATIONS.—The violations re10 ferred to in paragraph (1) shall be—

11 ‘‘(A) making, increasing, extending, or re12 newing loans in violation of—

13 ‘‘(i) the regulations issued pursuant to

14 subsection (b) of this section;

15 ‘‘(ii) the escrow requirements under

16 subsection (d) of this section; or

17 ‘‘(iii) the notice requirements under

18 section 1364 of the National Flood Insur19 ance Act of 1968; or

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

21 flood insurance coverage in violation of sub22 section (e) of this section.

23 ‘‘(3) CIVIL MONETARY PENALTIES AGAINST

24 GSE’S.—If the Federal National Mortgage Associa25 tion or the Federal Home Loan Mortgage Corpora-
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1 tion is found by the Director of the Office of Federal

2 Housing Enterprise Oversight of the Department of

3 Housing and Urban Development to have a pattern

4 or practice of purchasing loans in violation of the

5 procedures established pursuant to subsection (b)(4)

6 of this section, the Director of such Office shall as7 sess a civil penalty against such enterprise in the

8 amount provided under paragraph (5) of this sub9 section. For purposes of this subsection, the term

10 ‘enterprise’ means the Federal National Mortgage

11 Association or the Federal Home Loan Mortgage

12 Corporation.

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

14 this subsection may be issued only after notice and

15 an opportunity for a hearing on the record.

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

17 this subsection may not exceed $350 for each viola18 tion under paragraph (2) or paragraph (3). The

19 total amount of penalties assessed under this sub20 section against any single regulated lending institu21 tion, other lending institution, or enterprise for any

22 calendar year may not exceed $100,000.

23 ‘‘(6) LENDER COMPLIANCE.—Notwithstanding

24 any State or local law, for purposes of this sub25 section, any lender that purchases flood insurance or
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1 renews a contract for flood insurance on behalf of or

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

3 insurance is required shall be considered to have

4 complied with the regulations issued under sub5 section (b).

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

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

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

9 occurs subsequent to the violation, shall not affect

10 the liability of the transferring lender with respect to

11 any penalty under this subsection. A lender shall not

12 be liable for any violations relating to a loan com13 mitted by another lender who previously held the

14 loan.

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

16 collected under this subsection shall be paid into the

17 National Flood Mitigation Fund under section 1367

18 of the National Flood Insurance Act of 1968.

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

20 under this subsection shall be in addition to any civil

21 remedy or criminal penalty otherwise available.

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

23 may be imposed under this subsection after the expi24 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 ‘‘(g) OTHER ACTIONS TO REMEDY PATTERN OF

4 NONCOMPLIANCE.—

5 ‘‘(1) AUTHORITY OF FEDERAL ENTITIES FOR

6 LENDING REGULATION.—The head of the applicable

7 Federal entity for lending regulation may require a

8 regulated lending institution to take such remedial

9 actions as are necessary to ensure that the regulated

10 lending institution complies with the requirements of

11 the national flood insurance program if the Federal

12 agency for lending regulation makes a determination

13 under paragraph (3) regarding the regulated lending

14 institution.

15 ‘‘(2) AUTHORITY OF SECRETARY OF HUD.—The

16 Secretary of Housing and Urban Development may

17 require an other lending institution to take such re18 medial actions as are necessary to ensure that the

19 other lending institution complies with the require20 ments of the national flood insurance program if

21 such Secretary makes a determination under para22 graph (3) regarding the other lending institution.

23 ‘‘(3) DETERMINATION OF VIOLATIONS.—A de24 termination under this paragraph shall be a finding

25 that—
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1 ‘‘(A) the regulated lending institution or

2 other lending institution, as the case may be,

3 has engaged in a pattern and practice of non4 compliance in violation of the regulations issued

5 pursuant to subsection (b), (d), or (e) of this

6 section or the notice requirements under section

7 1364 of the National Flood Insurance Act of

8 1968; and

9 ‘‘(B) the regulated lending institution or

10 other lending institution, as the case may be,

11 has not demonstrated measurable improvement

12 in compliance despite the assessment of civil

13 monetary penalties under subsection (f).’’.

14 SEC. 206. ONGOING COMPLIANCE WITH FLOOD INSURANCE

15 PURCHASE REQUIREMENTS.

16 Section 102 of the Flood Disaster Protection Act of

17 1973 (42 U.S.C. 4012a), as amended by the preceding

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

19 the end the following new subsection:

20 ‘‘(h) NOTIFICATION OF FLOOD HAZARDS TO LOAN

21 TRANSFEREE.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graphs (2) through (5), before the sale or transfer

24 of any loan secured by improved real estate or a mo25 bile home, the seller or transferor of the loan shall
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1 determine whether the property is in an area that

2 has been designated by the Director as an area hav3 ing special flood hazards. The seller or transferor

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

5 transferee and any servicer of the loan in writing re6 garding the results of the determination. A deter7 mination under this paragraph shall be evidenced

8 using the standard hazard determination form under

9 section 1365 of the National Flood Insurance Act of

10 1968.

11 ‘‘(2) EXCEPTIONS.—For any loan secured by

12 improved real estate or a mobile home, a determina13 tion and notice under paragraph (1) shall not be re14 quired if, during the 5-year period ending on the

15 date of the sale or transfer of the loan—

16 ‘‘(A) a determination and notice under

17 paragraph (1) has been made for the property

18 secured by the loan; or

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

20 extended, or renewed; and

21 ‘‘(ii) the lender making, increasing, extend22 ing, or renewing the loan was subject, at the

23 time of such transaction, to regulations issued

24 pursuant to paragraph (1), (2), or (3) of sub25 section (b).
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1 ‘‘(3) LOANS TRANSFERRED BY FDIC.—

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

3 subparagraph (B), for any loan secured by im4 proved real estate or a mobile home that is sold

5 or transferred by the Federal Deposit Insurance

6 Corporation acting in its corporate capacity or

7 in its capacity as conservator or receiver, the

8 purchaser or transferee of the loan shall deter9 mine whether the property is in an area that

10 has been designated by the Director as an area

11 having special flood hazards.

12 ‘‘(B) EXCEPTIONS.—Such determination

13 and notice shall not be required for any loan—

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

15 under the control of the Federal Deposit

16 Insurance Corporation; or

17 ‘‘(ii) for which the purchaser or trans18 feree exercises any available option to

19 transfer or put the loan back to the Fed20 eral Deposit Insurance Corporation.

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

22 or transferee of a loan required to make a de23 termination and notification under subpara24 graph (A) shall notify the Director and any

25 servicer of the loan of the results of the deter-
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1 mination (using the standard hazard determina2 tion form under section 1365 of the National

3 Flood Insurance Act of 1968) before the expira4 tion of the 90-day period beginning on the later

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

6 (ii) the expiration of any option that the pur7 chaser or transferee may have to transfer or

8 put the loan back to the Federal Deposit Insur9 ance Corporation.

10 ‘‘(4) LOANS TRANSFERRED BY RTC.—

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

12 by improved real estate or a mobile home that

13 is sold or transferred by the Resolution Trust

14 Corporation acting in its corporate capacity or

15 in its capacity as a conservator or receiver, the

16 purchaser or transferee of the loan shall deter17 mine whether the property is in an area that

18 has been designated by the Director as an area

19 having special flood hazards if—

20 ‘‘(i) the Resolution Trust Corporation

21 acquires the loan after the date of the ef22 fectiveness of this subsection and sells or

23 transfers the loan before the expiration of

24 the 12-month period beginning on such ef25 fective date; or
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1 ‘‘(ii) the Corporation holds the loan

2 on the date of the effectiveness of this sub3 section and sells or transfers the loan be4 fore the expiration of the 6-month period

5 beginning on such effective date.

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

7 or transferee of a loan required to make a de8 termination and notification under subpara9 graph (A) shall notify the Director and any

10 servicer of the loan of the results of the deter11 mination (using the standard hazard determina12 tion form under section 1365 of the National

13 Flood Insurance Act of 1968) before the expira14 tion of the 90-day period beginning upon the

15 purchase or transfer of the loan.

16 ‘‘(5) LOANS TRANSFERRED BY NCUA.—

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

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

20 or transferred by the National Credit Union

21 Administration acting in its corporate capacity

22 or in its capacity as a conservator or liquidating

23 agent, the purchaser or transferee of the loan

24 shall determine whether the property is in an
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1 area that has been designated by the Director

2 as an area having special flood hazards.

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

4 or transferee of a loan required to make a de5 termination and notification under subpara6 graph (A) shall notify the Director and any

7 servicer of the loan of the results of the deter8 mination (using the standard hazard determina9 tion form under section 1365 of the National

10 Flood Insurance Act of 1968) before the expira11 tion of the 90-day period beginning upon the

12 purchase or transfer of the loan.

13 ‘‘(C) EXCEPTION.—Such determination

14 and notice shall not be required for any loan

15 sold or transferred to an entity under the con16 trol of the National Credit Union Administra17 tion.

18 ‘‘(6) APPLICABILITY.—This subsection shall

19 apply only with respect to any loan outstanding or

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

21 beginning on the date of the enactment of the Na22 tional Flood Insurance Reform Act of 1994.’’.
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1 SEC. 207. FEES FOR DETERMINING APPLICABILITY OF

2 FLOOD INSURANCE PURCHASE REQUIRE3 MENTS.

4 Section 102 of the Flood Disaster Protection Act of

5 1973 (42 U.S.C. 4012a) as amended by the preceding pro6 visions of this Act, is further amended by adding at the

7 end the following new subsection:

8 ‘‘(i) FEE FOR DETERMINING LOCATION.—Notwith9 standing any other Federal or State law, any lender for

10 a loan described in paragraph (1), (2), or (3) of subsection

11 (b) may charge a reasonable fee (as determined by the

12 Director) for the costs of determining whether the prop13 erty securing the loan is located in an area of special flood

14 hazards, but only in accordance with the following require15 ments:

16 ‘‘(1) BORROWER FEE.—The borrower under

17 such a loan may be charged the fee, but only if the

18 determination is made pursuant to—

19 ‘‘(A) the making, increasing, extending, or

20 renewing of the loan that is initiated by the

21 borrower; or

22 ‘‘(B) a revision or updating under section

23 1360(f) of the floodplain areas and flood-risk

24 zones or publication of a notice or compendia

25 under subsection (h) or (i) of section 1360 that

26 affects the area in which the property securing
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1 the loan is located or that, in the determination

2 of the Director, may reasonably be considered

3 to require a determination under this sub4 section.

5 ‘‘(2) PURCHASER OR TRANSFEREE FEE.—The

6 purchaser or transferee of such a loan may be

7 charged the fee in the case of sale or transfer of the

8 loan.’’.

9 SEC. 208. NOTICE REQUIREMENTS.

10 Section 1364 of the National Flood Insurance Act of

11 1968 (42 U.S.C. 4104a) is amended to read as follows:

12 ‘‘NOTICE REQUIREMENTS

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

14 HAZARDS.—

15 ‘‘(1) REGULATED LENDING INSTITUTIONS.—

16 Each Federal entity for lending regulation, after

17 consultation and coordination with the Financial In18 stitutions Examination Council, shall by regulation

19 require regulated lending institutions, as a condition

20 of making, increasing, extending, or renewing any

21 loan secured by improved real estate or a mobile

22 home located or to be located in an area that has

23 been identified by the Director under this title or the

24 Flood Disaster Protection Act of 1973 as an area

25 having special flood hazards, to notify the purchaser

26 or lessee (or obtain satisfactory assurances that the
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1 seller or lessor has notified the purchaser or lessee)

2 and the servicer of the loan of such special flood

3 hazards, in writing, a reasonable period in advance

4 of the signing of the purchase agreement, lease, or

5 other documents involved in the transaction. The

6 regulations shall also require that the lenders retain

7 a record of the receipt of the notices by the pur8 chaser or lessee and the servicer.

9 ‘‘(2) OTHER LENDING INSTITUTIONS.—The

10 Secretary of Housing and Urban Development shall

11 by regulation require notification in the manner pro12 vided under paragraph (1) with respect to any loan

13 made by another lending institution and secured by

14 improved real estate consisting of a 1- to 4-family

15 residence or a mobile home located or to be located

16 in an area that has been identified by the Director

17 under this title or the Flood Disaster Protection Act

18 of 1973 as an area having special flood hazards. Any

19 regulations issued under this paragraph shall be con20 sistent with and substantially identical to the regula21 tions issued under paragraph (1) (except to the ex22 tent necessary to provide for differences between the

23 types of loans for which notice is required under this

24 paragraph and the types for which notice is required

25 under paragraph (1)).
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1 ‘‘(3) FEDERAL AGENCY LENDERS.—The appro2 priate head of each Federal agency lender shall by

3 regulation require notification in the manner pro4 vided under paragraph (1) with respect to any loan

5 that is made by the Federal agency lender and se6 cured by improved real estate or a mobile home lo7 cated or to be located in an area that has been iden8 tified by the Director under this title or the Flood

9 Disaster Protection Act of 1973 as an area having

10 special flood hazards. Any regulations issued under

11 this paragraph shall be consistent with and substan12 tially identical to the regulations issued under para13 graph (1).

14 ‘‘(4) CONTENTS OF NOTICE.—Written notifica15 tion required under this subsection shall include—

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

17 in consultation with and subject to the approval

18 of the Director, stating that the real estate or

19 mobile home securing the loan is located or is

20 to be located in an area having special flood

21 hazards;

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

23 purchase requirements under section 102(b) of

24 the Flood Disaster Protection Act of 1973;
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1 ‘‘(C) a statement that flood insurance cov2 erage may be purchased under the national

3 flood insurance program and is also available

4 from private insurers; and

5 ‘‘(D) any other information that the Direc6 tor considers necessary to carry out the pur7 poses of the national flood insurance program.

8 ‘‘(b) NOTIFICATION OF CHANGE OF SERVICER.—

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

10 entity for lending regulation (with respect to regu11 lated lending institutions) and the Secretary of

12 Housing and Urban Development (with respect to

13 other lending institutions), after consultation and co14 ordination with the Financial Institutions Examina15 tion Council, shall by regulation require such institu16 tions, as a condition of making, increasing, extend17 ing, renewing, selling, or transferring any loan de18 scribed in subsection (a)(1), to notify the Director

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

20 the term of the loan of the servicer of the loan. Such

21 institutions shall also notify the Director (or such

22 designee) of any change in the servicer of the loan,

23 not later than 60 days after the effective date of

24 such change. The regulations under this subsection

25 shall provide that upon any change in the servicing
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1 of a loan, the duty to provide notification under this

2 subsection shall transfer to the transferee servicer of

3 the loan.

4 ‘‘(2) FEDERAL AGENCY LENDERS.—The appro5 priate head of each Federal agency lender shall by

6 regulation provide for notification in the manner

7 provided under paragraph (1) with respect to any

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

9 the Federal agency lender. Any regulations issued

10 under this paragraph shall be consistent with and

11 substantially identical to the regulations issued

12 under paragraph (1) of this subsection.

13 ‘‘(c) NOTIFICATION OF EXPIRATION OF INSUR14 ANCE.—The Director (or the designee of the Director)

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

16 contract for flood insurance under this title, issue notice

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

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

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

20 SEC. 209. STANDARD HAZARD DETERMINATION FORMS.

21 Chapter III of the National Flood Insurance Act of

22 1968 (42 U.S.C. 4101 et seq.) is amended by adding at

23 the end the following new section:

24 ‘‘STANDARD HAZARD DETERMINATION FORMS

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

26 consultation with representatives of the mortgage and
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1 lending industry, the Federal entities for lending regula2 tion, the Federal agency lenders, and any other appro3 priate individuals, shall develop standard written and elec4 tronic forms for determining the flood hazard exposure of

5 a property for use in connection with loans secured by im6 proved real estate or a mobile home. The written and elec7 tronic forms shall be established by regulations issued not

8 later than 270 days after the date of the enactment of

9 the National Flood Insurance Reform Act of 1994.

10 ‘‘(b) DESIGN AND CONTENTS.—

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

12 shall be designed to facilitate a determination of the

13 exposure to flood hazards of structures located on

14 the property to which the loan application relates.

15 The form shall be designed to facilitate compliance

16 with the provisions of this title.

17 ‘‘(2) CONTENTS.—The form shall require iden18 tification of the type of flood-risk zone in which the

19 property is located, the complete map and panel

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

21 used for the determination, with respect to flood

22 hazard information on file with the Director. If the

23 property is not located in an area of special flood

24 hazards the form shall require a statement to such

25 effect and shall indicate the complete map and panel
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1 numbers of the property. If the complete map and

2 panel numbers for the property are not available be3 cause the property is not located in a community

4 that is participating in the national flood insurance

5 program or because no map exists for the relevant

6 area, the form shall require a statement to such ef7 fect. The form shall provide for inclusion or attach8 ment of any relevant documents indicating revisions

9 or amendments to maps.

10 ‘‘(c) REQUIRED USE.—The Federal entities for lend11 ing regulation shall by regulation require the use of the

12 form under this section by regulated lending institutions.

13 The appropriate head of each Federal agency lender shall

14 by regulation provide for the use of the form with respect

15 to any loan made by such Federal agency lender. The Sec16 retary of Housing and Urban Development shall by regu17 lation require use of the form in connection with loans

18 purchased by Federal National Mortgage Association and

19 the Federal Home Loan Mortgage Corporation and the

20 Government National Mortgage Association. The Sec21 retary of Housing and Urban Development shall encour22 age the use of the form by other lending institutions.

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

24 providing information regarding special flood hazards on

25 the form developed under this section (or otherwise re-
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1 quired of a lender not required to use the form under this

2 section) any lender making, increasing, extending, or re3 newing a loan secured by improved real estate or a mobile

4 home may provide for the acquisition or determination of

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

6 institution, only to the extent such person guarantees the

7 accuracy of the information. The Director shall by regula8 tions establish requirements relating to the nature and

9 manner of such guarantees.

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

11 lending regulation, the Secretary of Housing and Urban

12 Development, and the appropriate head of each Federal

13 agency lender shall by regulation require any lender using

14 the electronic form developed under this section with re15 spect to any loan to make available upon the request of

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

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

18 such request.

19 ‘‘(f) EFFECTIVE DATE.—The regulations under this

20 section requiring use of the written and electronic forms

21 established pursuant to this section shall be issued to22 gether with the regulations required under subsection (a)

23 and shall take effect upon the expiration of the 90-day

24 period beginning on such issuance.’’.
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1 SEC. 210. EXAMINATIONS REGARDING COMPLIANCE.

2 (a) AMENDMENT TO FEDERAL DEPOSIT INSURANCE

3 ACT.—Section 10 of the Federal Deposit Insurance Act

4 (12 U.S.C. 1820) is amended by adding at the end the

5 following new subsection:

6 ‘‘(h) FLOOD INSURANCE COMPLIANCE BY INSURED

7 DEPOSITORY INSTITUTIONS.—

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

9 banking agency shall, during each scheduled on-site

10 examination required by this section, determine

11 whether the insured depository institution is comply12 ing with the requirements of the national flood in13 surance program.

14 ‘‘(2) REPORT.—

15 ‘‘(A) REQUIREMENT.—Not later than 1

16 year after the date of enactment of the Na17 tional Flood Insurance Reform Act of 1994 and

18 biennially thereafter for the next 4 years, each

19 appropriate Federal banking agency shall sub20 mit a report to the Congress on compliance by

21 insured depository institutions with the require22 ments of the national flood insurance program.

23 ‘‘(B) CONTENTS.—The report shall include

24 a description of the methods used to determine

25 compliance, the number of institutions exam26 ined during the reporting year, a listing and
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1 total number of institutions found not to be in

2 compliance, actions taken to correct incidents of

3 noncompliance, and an analysis of compliance,

4 including a discussion of any trends, patterns,

5 and problems, and recommendations regarding

6 reasonable actions to improve the efficiency of

7 the examinations processes.’’.

8 (b) AMENDMENT TO FEDERAL CREDIT UNION

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

10 U.S.C. 1784) is amended by adding at the end the follow11 ing new subsection:

12 ‘‘(e) FLOOD INSURANCE COMPLIANCE BY INSURED

13 CREDIT UNIONS.—

14 ‘‘(1) EXAMINATION.—The Board shall, during

15 each examination conducted under this section, de16 termine whether the insured credit union is comply17 ing with the requirements of the national flood in18 surance program.

19 ‘‘(2) REPORT.—

20 ‘‘(A) REQUIREMENT.—Not later than 1

21 year after the date of enactment of the Na22 tional Flood Insurance Reform Act of 1994 and

23 biennially thereafter for the next 4 years, the

24 Board shall submit a report to Congress on

25 compliance by insured credit unions with the re-
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1 quirements of the national flood insurance pro2 gram.

3 ‘‘(B) CONTENTS.—The report shall include

4 a description of the methods used to determine

5 compliance, the number of insured credit unions

6 examined during the reporting year, a listing

7 and total number of insured credit unions found

8 not to be in compliance, actions taken to correct

9 incidents of noncompliance, and an analysis of

10 compliance, including a discussion of any

11 trends, patterns, and problems, and rec12 ommendations regarding reasonable actions to

13 improve the efficiency of the examinations proc14 esses.’’.

15 (c) AMENDMENT TO FEDERAL HOUSING ENTER16 PRISES FINANCIAL SAFETY AND SOUNDNESS ACT OF

17 1992.—Section 1317 of the Federal Housing Enterprises

18 Financial Safety and Soundness Act of 1992 (12 U.S.C.

19 4517) is amended by adding at the end the following new

20 subsection:

21 ‘‘(g) FLOOD INSURANCE COMPLIANCE BY ENTER22 PRISES.—

23 ‘‘(1) EXAMINATION.—After the submission of

24 the report under section 210(d) of the National

25 Flood Insurance Reform Act of 1994, the Director
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1 shall, during each annual examination of an enter2 prise conducted under this section, determine wheth3 er the enterprise has established adequate proce4 dures required under section 102(b)(4) of the Flood

5 Disaster Protection Act of 1973 and is complying

6 with such procedures.

7 ‘‘(2) EXCEPTION.—The provisions of paragraph

8 (1) shall not apply with respect to an enterprise if

9 the Director—

10 ‘‘(A) determines, pursuant to the report

11 under section 210(d) of the National Flood In12 surance Reform Act of 1994, that the enter13 prise has established adequate procedures pur14 suant to section 102(b)(4) of the Flood Disas15 ter Protection Act of 1973 and has a pattern

16 of compliance with such procedures; and

17 ‘‘(B) certifies such finding in writing to

18 the Congress.

19 ‘‘(3) REPORT.—

20 ‘‘(A) REQUIREMENT.—Not later than 1

21 year after the date of enactment of the Na22 tional Flood Insurance Reform Act of 1994 and

23 biennially thereafter for the next 4 years, the

24 Director shall submit a report to Congress on

25 compliance by the enterprises with the proce-
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1 dures established pursuant to section 102(b)(4)

2 of the Flood Disaster Protection Act of 1973.

3 ‘‘(B) CONTENTS.—The report shall include

4 a description of the methods used to determine

5 compliance, identification of any enterprise

6 found not to be in compliance, actions taken to

7 correct incidents of noncompliance, and an

8 analysis of compliance, including a discussion of

9 any trends, patterns, and problems, and rec10 ommendations regarding reasonable actions to

11 improve the efficiency of the examinations proc12 esses.’’.

13 (d) GAO REPORT ON GSE COMPLIANCE.—Not later

14 than 18 months after the date of enactment of this Act,

15 the Comptroller General of the United States shall submit

16 a report to the Congress and the Director of the Office

17 of Federal Housing Enterprise Oversight of the Depart18 ment of Housing and Urban Development regarding the

19 procedures established by the Federal National Mortgage

20 Association and the Federal Home Loan Mortgage Cor21 poration pursuant to section 102(b)(4) of the Flood Disas22 ter Protection Act of 1973. The report shall include a de23 scription of such procedures, an analysis of whether such

24 procedures are sufficient to comply with the requirements

25 of such section, a determination of whether each enter-
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1 prise has complied with such procedures, a description of

2 any actions taken by each enterprise to correct any inci3 dents of noncompliance, and any recommendations regard4 ing reasonable actions to improve the procedures estab5 lished by the enterprises and compliance with such proce6 dures.

7 SEC. 211. FINANCIAL INSTITUTIONS EXAMINATION COUN8 CIL.

9 Section 1006 of the Federal Financial Institutions

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

11 amended by adding at the end the following new sub12 section:

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

14 entities for lending regulation and the Secretary of Hous15 ing and Urban Development in developing and coordinat16 ing uniform standards and requirements for use by lenders

17 as provided under the National Flood Insurance Act of

18 1968 and the Flood Disaster Protection Act of 1973.’’.

19 SEC. 212. CLERICAL AMENDMENTS.

20 Section 102 of the Flood Disaster Protection Act of

21 1973 (42 U.S.C. 4012a) is amended—

22 (1) by striking the section heading and insert23 ing the following new section heading:
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1 ‘‘FLOOD INSURANCE PURCHASE AND COMPLIANCE

2 REQUIREMENTS AND ESCROW ACCOUNTS’’; and

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

4 TO PURCHASE REQUIREMENTS FOR STATE-OWNED

5 PROPERTY.—’’ before ‘‘Notwithstanding’’.

6 TITLE III—RATINGS AND INCEN7 TIVES FOR COMMUNITY

8 FLOODPLAIN MANAGEMENT

9 PROGRAMS

10 SEC. 301. COMMUNITY RATING SYSTEM AND INCENTIVES

11 FOR COMMUNITY FLOODPLAIN MANAGE12 MENT.

13 Section 1315 of the National Flood Insurance Act of

14 1968 (42 U.S.C. 4022) is amended—

15 (1) by inserting after ‘‘SEC. 1315.’’ the follow16 ing: ‘‘(a) REQUIREMENT FOR PARTICIPATION IN

17 FLOOD INSURANCE PROGRAM.—’’; and

18 (2) by adding at the end the following new sub19 section:

20 ‘‘(b) COMMUNITY RATING SYSTEM AND INCENTIVES

21 FOR COMMUNITY FLOODPLAIN MANAGEMENT.—

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

23 shall carry out a community rating system program

24 to evaluate the measures adopted by areas (and sub25 divisions thereof) in which the Director has made
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1 flood insurance coverage available to provide for ade2 quate land use and control provisions consistent with

3 the comprehensive criteria for such land manage4 ment and use under section 1361, to facilitate accu5 rate risk-rating, to promote flood insurance aware6 ness, and to complement adoption of more effective

7 measures for floodplain and erosion management.

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

9 subsection shall provide incentives in the form of ad10 justments in the premium rates for flood insurance

11 coverage in areas that the Director determines have

12 adopted and enforced the goals of the community

13 rating system under this subsection. In providing in14 centives under this paragraph, the Director may pro15 vide for additional adjustments in premium rates for

16 flood insurance coverage (A) in areas that the Direc17 tor determines have implemented measures relating

18 to the protection of natural and beneficial floodplain

19 functions, and (B) in areas within which such pre20 mium rates have increased as a result of induced

21 flooding risk from flood control or mitigation

22 projects, as determined by the Director, except that

23 the adjustment shall not reduce premium rates

24 below the rate which would have been charged ab-
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1 sent the risk of induced flooding from the flood con2 trol or mitigation projects.

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

4 program under this subsection with amounts, as the

5 Director determines necessary, from the National

6 Flood Insurance Fund under section 1310 and any

7 other amounts that may be appropriated for such

8 purpose.

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

10 report to the Congress regarding the program under

11 this subsection not later than the expiration of the

12 2-year period beginning on the date of the enact13 ment of the National Flood Insurance Reform Act of

14 1994. The Director shall submit a report under this

15 paragraph not less than every 2 years thereafter.

16 Each report under this paragraph shall include an

17 analysis of the cost-effectiveness and other accom18 plishments and shortcomings of the program and

19 any recommendations of the Director for legislation

20 regarding the program.’’.

21 SEC. 302. FUNDING.

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

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

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

25 end;
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1 (2) by redesignating paragraph (5) as para2 graph (7); and

3 (3) by inserting after paragraph (4) the follow4 ing new paragraph:

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

6 1315(b);’’.

7 TITLE IV—MITIGATION OF

8 FLOOD RISKS

9 SEC. 401. REPEAL OF FLOODED PROPERTY PURCHASE AND

10 LOAN PROGRAM.

11 (a) REPEAL.—Section 1362 of the National Flood In12 surance Act of 1968 (42 U.S.C. 4103) is hereby repealed.

13 (b) TRANSITION PHASE.—Notwithstanding sub14 section (a), during the 1-year period beginning on the date

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

16 Emergency Management Agency may enter into loan and

17 purchase commitments as provided under section 1362 of

18 such Act (as in effect immediately before the enactment

19 of this Act).

20 (c) SAVINGS PROVISION.—Notwithstanding sub21 section (a), the Director shall take any action necessary

22 to comply with any purchase or loan commitment entered

23 into before the expiration of the period referred to in sub24 section (b) pursuant to authority under section 1362 of
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1 the National Flood Insurance Act of 1968 or subsection

2 (b).

3 SEC. 402. TERMINATION OF EROSION-THREATENED STRUC4 TURES PROGRAM.

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

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

7 by striking subsection (c).

8 (b) TRANSITION PHASE.—Notwithstanding sub9 section (a), during the 1-year period beginning on the date

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

11 Emergency Management Agency may pay amounts under

12 flood insurance contracts for demolition or relocation of

13 structures as provided in section 1306(c) of the National

14 Flood Insurance Act of 1968 (as in effect immediately be15 fore the enactment of this Act).

16 (c) SAVINGS PROVISION.—Notwithstanding sub17 section (a), the Director shall take any action necessary

18 to make payments under flood insurance contracts pursu19 ant to any commitments made before the expiration of the

20 period referred to in subsection (b) pursuant to the au21 thority under section 1306(c) of the National Flood Insur22 ance Act of 1968 or subsection (b).

23 (d) REPEAL OF FINDINGS PROVISION.—Section

24 1302 of the National Flood Insurance Act of 1968 (42

25 U.S.C. 4001) is amended by striking subsection (g).
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1 SEC. 403. MITIGATION ASSISTANCE PROGRAM.

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

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

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

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

6 ‘‘MITIGATION ASSISTANCE

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

8 carry out a program to provide financial assistance to

9 States, communities, and individuals, using amounts made

10 available from the National Flood Mitigation Fund under

11 section 1367, for planning and carrying out activities de12 signed to reduce the risk of flood damage to structures

13 covered under contracts for flood insurance under this

14 title. Such financial assistance shall be made available to

15 States and communities in the form of grants under sub16 section (b) for planning assistance and to States, commu17 nities, and individuals in the form of grants under this

18 section for carrying out mitigation activities.

19 ‘‘(b) PLANNING ASSISTANCE GRANTS.—

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

21 grants under this subsection to States and commu22 nities to assist in developing mitigation plans under

23 subsection (c)(1).

24 ‘‘(2) FUNDING.—Of any amounts made avail25 able from the National Flood Mitigation Fund for

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

2 planning assistance grants under this subsection.

3 ‘‘(3) LIMITATIONS.—

4 ‘‘(A) TIMING.—A grant under this sub5 section may be awarded to a State or commu6 nity not more than once every 5 years and each

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

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

9 for planning assistance may not exceed—

10 ‘‘(i) $150,000, to any State; or

11 ‘‘(ii) $50,000, to any community.

12 ‘‘(C) CUMULATIVE STATE GRANT

13 AMOUNT.—The sum of the amounts of grants

14 made under this subsection in any fiscal year to

15 any one State and all communities located in

16 such State may not exceed $300,000.

17 ‘‘(c) ELIGIBILITY FOR MITIGATION ASSISTANCE.—

18 ‘‘(1) STATES AND COMMUNITIES.—To be eligi19 ble to receive financial assistance under this section

20 for mitigation activities, a State or community shall

21 develop, and have approved by the Director, a flood

22 risk mitigation plan (in this section referred to as a

23 ‘mitigation plan’), that describes the mitigation ac24 tivities to be carried out with assistance provided

25 under this section, is consistent with the criteria es-
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1 tablished by the Director under section 1361, and

2 provides protection against flood losses to structures

3 covered by contracts for flood insurance under this

4 title. The mitigation plan shall be consistent with a

5 comprehensive strategy for mitigation activities for

6 the area affected by the mitigation plan, that has

7 been adopted by the State or community following a

8 public hearing.

9 ‘‘(2) INDIVIDUALS.—An individual shall be eli10 gible to receive financial assistance under this sec11 tion only if—

12 ‘‘(A) the individual submits to the Direc13 tor, and the Director approves, an application

14 for mitigation assistance that describes the

15 mitigation activities to be carried out with as16 sistance provided under this section;

17 ‘‘(B) the assistance provided under this

18 section is to be used for mitigation activities for

19 a structure that has been damaged as a result

20 of a flood event that occurred not more than 60

21 days before the submission of the application

22 for the assistance;

23 ‘‘(C) because of damage caused by the

24 flood event, expenditures are necessary to bring

25 the structure into compliance with the measures
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1 adopted by the applicable State or community

2 pursuant to section 1315 and the mitigation ac3 tivities described in the application will result in

4 such compliance; and

5 ‘‘(D) the structure was covered by a con6 tract for flood insurance at the time of the flood

7 event.

8 ‘‘(d) NOTIFICATION OF APPROVAL AND GRANT

9 AWARD.—

10 ‘‘(1) GENERAL STATE AND COMMUNITY

11 PLANS.—Except as provided under paragraph (2),

12 the Director shall notify a State or community sub13 mitting a mitigation plan of the approval or dis14 approval of the plan not later than 120 days after

15 submission of the plan.

16 ‘‘(2) STATE AND COMMUNITY PLANS FOR MITI17 GATION ACTIVITIES TO RESPOND TO FLOOD

18 EVENTS.—If a State or community submits a miti19 gation plan not later than 15 days after the occur20 rence of a flood event that proposes mitigation ac21 tivities for structures damaged as a result of the

22 flood event that are necessary to bring such struc23 tures into compliance with the measures adopted by

24 the applicable State or community pursuant to sec25 tion 1315, then the Director shall notify the State
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1 or community of the approval or disapproval of the

2 plan not later than 30 days after submission of the

3 plan.

4 ‘‘(3) INDIVIDUAL APPLICATIONS FOR MITIGA5 TION ASSISTANCE TO RESPOND TO FLOOD

6 EVENTS.—The Director shall notify an individual

7 who submits an application for mitigation assistance

8 under subsection (c)(2) of the approval or dis9 approval of the application not later than—

10 ‘‘(A) 30 days after the submission of the

11 application, except in cases described in sub12 paragraph (B); or

13 ‘‘(B) in any case in which the structure

14 subject to the application submitted by the indi15 vidual is subject to a mitigation plan subse16 quently submitted under paragraph (2) by the

17 State or community in which the structure is

18 located, the expiration of the 30-day period re19 ferred to in paragraph (2).

20 ‘‘(4) NOTIFICATION OF DISAPPROVAL.—If the

21 Director does not approve a mitigation plan or appli22 cation submitted under this subsection, the Director

23 shall notify, in writing, the State, community, or in24 dividual submitting the plan or application of the

25 reasons for such disapproval.
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1 ‘‘(5) AVAILABILITY OF GRANT AMOUNTS.—Any

2 financial assistance to be provided under this section

3 to an individual pursuant to an application for miti4 gation assistance submitted and approved under

5 subsection (c)(2) shall be made available to the indi6 vidual not later than 15 days after the individual is

7 notified under paragraph (2) of this subsection of

8 the approval of the application, unless otherwise

9 agreed to by the Director and the individual.

10 ‘‘(e) ELIGIBLE MITIGATION ACTIVITIES.—

11 ‘‘(1) DETERMINATION.—Amounts provided

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

13 may be used only for mitigation activities specified

14 in an application for mitigation assistance or mitiga15 tion plan approved by the Director under subsection

16 (d). The Director may approve only applications and

17 mitigation plans that specify mitigation activities

18 that the Director determines are technically feasible

19 and cost-effective and only such applications and

20 plans that propose activities that are cost-beneficial

21 to the National Flood Mitigation Fund. The Direc22 tor shall provide assistance under this section to the

23 extent amounts are available in the National Flood

24 Mitigation Fund pursuant to appropriation Acts,
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1 subject only to the absence of approvable applica2 tions and mitigation plans.

3 ‘‘(2) PRIORITY.—The Director shall make every

4 effort to provide mitigation assistance under this

5 section for applications and mitigation plans propos6 ing activities for repetitive loss structures and struc7 tures that have incurred substantial damage.

8 ‘‘(3) ELIGIBLE ACTIVITIES.—The Director shall

9 determine whether mitigation activities described in

10 an application for mitigation assistance or a mitiga11 tion plan submitted under subsection (d) comply

12 with the requirements under paragraph (1). Such

13 activities may include—

14 ‘‘(A) demolition or relocation of any struc15 ture located on land that is along the shore of

16 a lake or other body of water and is certified

17 by an appropriate State or local land use au18 thority to be subject to imminent collapse or

19 subsidence as a result of erosion or flooding;

20 ‘‘(B) elevation, relocation, demolition, or

21 floodproofing of structures (including public

22 structures) located in special flood hazard areas

23 or other areas of flood risk;

24 ‘‘(C) acquisition by States and commu25 nities of properties (including public properties)
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1 located in special flood hazard areas or other

2 areas of flood risk and properties substantially

3 damaged by flood, for public use, as the Direc4 tor determines is consistent with sound land

5 management and use in such area;

6 ‘‘(D) minor physical mitigation efforts that

7 do not duplicate the flood prevention activities

8 of other Federal agencies and that lessen the

9 frequency or severity of flooding and decrease

10 predicted flood damages, which shall not in11 clude major flood control projects such as dikes,

12 levees, seawalls, groins, and jetties unless the

13 Director specifically determines in approving a

14 mitigation plan that such activities are the most

15 cost-effective mitigation activities for the Na16 tional Flood Mitigation Fund;

17 ‘‘(E) beach nourishment activities;

18 ‘‘(F) the provision of technical assistance

19 by States to communities and individuals to

20 conduct eligible mitigation activities;

21 ‘‘(G) other activities that the Director con22 siders appropriate and specifies in regulation;

23 and

24 ‘‘(H) other mitigation activities not de25 scribed in subparagraphs (A) through (F) or
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1 the regulations issued under subparagraph (G),

2 that are described in the mitigation plan of a

3 State or community or the application of an in4 dividual for mitigation assistance.

5 ‘‘(f) LIMITATIONS ON AMOUNT OF ASSISTANCE.—

6 ‘‘(1) AMOUNT.—The sum of the amounts of

7 mitigation assistance provided under this section

8 during any 5-year period may not exceed—

9 ‘‘(A) $10,000,000, to any State;

10 ‘‘(B) $3,300,000, to any community; or

11 ‘‘(C) $20,000, to any individual.

12 ‘‘(2) GEOGRAPHIC.—The sum of the amounts

13 of mitigation assistance provided under this section

14 during any 5-year period to any one State and all

15 communities located in such State may not exceed

16 $20,000,000.

17 ‘‘(3) WAIVER.—The Director may waive the

18 dollar amount limitations under subparagraphs (A)

19 and (B) of paragraph (1) and paragraph (2) for any

20 State or community for any 5-year period during

21 which a major disaster or emergency declared by the

22 President (pursuant to the Robert T. Stafford Dis23 aster Relief and Emergency Assistance Act) as a re24 sult of flood conditions is in effect with respect to

25 areas in the State or community.
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1 ‘‘(g) MATCHING REQUIREMENT.—

2 ‘‘(1) IN GENERAL.—The Director may not pro3 vide mitigation assistance under this section to a

4 State, community, or individual in an amount ex5 ceeding 3 times the amount that the State, commu6 nity, or individual certifies, as the Director shall re7 quire, that the State, community, or individual will

8 contribute from non-Federal funds to develop a miti9 gation plan or application under subsection (c) and

10 to carry out mitigation activities under the approved

11 mitigation plan or application. In no case shall any

12 in-kind contribution by any State, community, or in13 dividual exceed one-half of the amount of non-Fed14 eral funds contributed by the State, community, or

15 individual.

16 ‘‘(2) NON-FEDERAL FUNDS.—For purposes of

17 this subsection, the term ‘non-Federal funds’ in18 cludes State or local agency funds, in-kind contribu19 tions, any salary paid to staff to carry out the miti20 gation activities of the recipient, the value of the

21 time and services contributed by volunteers to carry

22 out such activities (at a rate determined by the Di23 rector), and the value of any donated material or

24 building and the value of any lease on a building.
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1 ‘‘(h) OVERSIGHT OF MITIGATION PLANS.—The Di2 rector shall conduct oversight of recipients of mitigation

3 assistance under this section to ensure that the assistance

4 is used in compliance with the approved mitigation plans

5 or applications of the recipients and that matching funds

6 certified under subsection (g) are used in accordance with

7 such certification.

8 ‘‘(i) RECAPTURE.—

9 ‘‘(1) NONCOMPLIANCE WITH PLAN.—If the Di10 rector determines that a State, community, or indi11 vidual that has received mitigation assistance under

12 this section has not carried out the mitigation activi13 ties as set forth in the mitigation plan or applica14 tion, the Director shall recapture any unexpended

15 amounts and deposit the amounts in the National

16 Flood Mitigation Fund under section 1367.

17 ‘‘(2) FAILURE TO PROVIDE MATCHING

18 FUNDS.—If the Director determines that a State,

19 community, or individual that has received mitiga20 tion assistance under this section has not provided

21 matching funds in the amount certified under sub22 section (g), the Director shall recapture any unex23 pended amounts of mitigation assistance exceeding 3

24 times the amount of such matching funds actually
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1 provided and deposit the amounts in the National

2 Flood Mitigation Fund under section 1367.

3 ‘‘(j) REPORTS.—Not later than 1 year after the date

4 of enactment of the National Flood Insurance Reform Act

5 of 1994 and biennially thereafter, the Director shall sub6 mit a report to the Congress describing the status of miti7 gation activities carried out with assistance provided under

8 this section.

9 ‘‘(k) DEFINITION OF COMMUNITY.—For purposes of

10 this section, the term ‘community’ means—

11 ‘‘(1) a political subdivision that (A) has zoning

12 and building code jurisdiction over a particular area

13 of special flood hazards, and (B) is participating in

14 the national flood insurance program; or

15 ‘‘(2) a political subdivision of a State, or other

16 authority, that is designated to develop and admin17 ister a mitigation plan by political subdivisions, all

18 of which meet the requirements of paragraph (1).’’.

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

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

21 Emergency Management Agency shall issue regulations to

22 carry out section 1366 of the National Flood Insurance

23 Act of 1968, as added by subsection (a).
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1 SEC. 404. ESTABLISHMENT OF NATIONAL FLOOD MITIGA2 TION FUND.

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

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

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

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

7 ‘‘NATIONAL FLOOD MITIGATION FUND

8 ‘‘SEC. 1367. (a) ESTABLISHMENT AND AVAILABIL9 ITY.—The Director shall establish in the Treasury of the

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

11 Mitigation Fund, which shall be credited with amounts de12 scribed in subsection (b) and shall be available, to the ex13 tent provided in appropriation Acts, for providing assist14 ance under section 1366.

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

16 shall be credited with—

17 ‘‘(1) any premium surcharges assessed under

18 section 1308(f);

19 ‘‘(2) any penalties collected under section

20 102(f) of the Flood Disaster Protection Act of 1973;

21 and

22 ‘‘(3) any amounts recaptured under section

23 1366(i).

24 ‘‘(c) INVESTMENT.—If the Director determines that

25 the amounts in the National Flood Mitigation Fund are

26 in excess of amounts needed under subsection (a), the Di-
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1 rector may invest any excess amounts the Director deter2 mines advisable in interest-bearing obligations issued or

3 guaranteed by the United States.

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

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

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

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

8 period thereafter. The report shall describe the status of

9 the Fund and any activities carried out with amounts from

10 the Fund.’’.

11 (b) NATIONAL FLOOD INSURANCE FUND AS SEPA12 RATE ACCOUNT.—Section 1310(a) of the National Flood

13 Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended

14 in the matter preceding paragraph (1)—

15 (1) by striking ‘‘is authorized to’’ and inserting

16 ‘‘shall’’; and

17 (2) by inserting after ‘‘which shall be’’ the fol18 lowing: ‘‘an account separate from any other ac19 counts or funds available to the Director and shall

20 be’’.

21 SEC. 405. INSURANCE PREMIUM MITIGATION SURCHARGE.

22 Section 1308 of the National Flood Insurance Act of

23 1968 (42 U.S.C. 4015) is amended by adding at the end

24 the following new subsection:
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1 ‘‘(f) INSURANCE PREMIUM MITIGATION SUR2 CHARGE.—

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

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

5 respect to each contract for flood insurance coverage

6 under this title issued or renewed after the date of

7 the enactment of the National Flood Insurance Re8 form Act of 1994, a mitigation surcharge of—

9 ‘‘(A) $10 per policy term, for policies hav10 ing a total coverage amount of $150,000 or less

11 that cover structures that are principal resi12 dences;

13 ‘‘(B) $20 per policy term, for policies hav14 ing a total coverage amount of more than

15 $150,000 that cover structures that are prin16 cipal residences; and

17 ‘‘(C) the amount established by the Direc18 tor not to exceed $40 per policy term, for poli19 cies covering other structures.

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

21 mitigation surcharges collected shall be paid into the

22 National Flood Mitigation Fund under section 1367.

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

24 shall not be subject to any agents’ commissions,
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1 company expenses allowances, or State or local pre2 mium taxes.’’.

3 SEC. 406. STUDY OF MITIGATION INSURANCE.

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

5 Management Agency shall conduct a study to determine

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

7 policy, insurance coverage to provide for increases in the

8 costs of repair and reconstruction of repetitively and sub9 stantially flood-damaged insured buildings, in order to re10 pair, reconstruct, or otherwise mitigate future hazards to

11 those buildings to comply with local building codes and

12 floodplain management ordinances to the greatest extent

13 possible. In conducting the study, the Director shall seek

14 involvement from other Federal, State, and local agencies,

15 and representation from the insurance, construction, and

16 floodplain management interests. Under the study the Di17 rector shall—

18 (1) identify potential activities related to repair,

19 reconstruction, or otherwise achieving mitigation re20 quired to comply with standards under the national

21 flood insurance program and local building codes,

22 and evaluate the costs of such activities;

23 (2) evaluate how such insurance coverage could

24 be utilized to achieve economically justified acquisi-
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1 tion, relocation, or elevation of certain structures

2 under certain circumstances;

3 (3) evaluate the cost of providing the additional

4 coverage and investigate a full range of measures for

5 funding such costs, including changes in coverage,

6 rates, and deductibles;

7 (4) evaluate the effects changes identified in

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

9 the cost of flood insurance, retention of policies,

10 marketing of policies, the number and magnitude of

11 claims paid, and the economic soundness and value

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

13 effects by State and, for communities participating

14 in the national flood insurance program, by commu15 nity; and

16 (5) identify mechanisms required to identify

17 qualifying structures, determine appropriate mitiga18 tion measures, coordinate with State and local offi19 cials, provide consistency with State and local plans

20 and programs, deliver the increased insurance pay21 ments, and verify appropriate actions by policy22 holders.

23 (b) REPORT.—The Director shall submit to the Con24 gress a report describing the study not later than the expi25 ration of the 18-month period beginning on the date of
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1 the enactment of this Act. The report shall include conclu2 sions and recommendations of the Director in conducting

3 the study.

4 TITLE V—FLOOD INSURANCE

5 TASK FORCE

6 SEC. 501. FLOOD INSURANCE INTERAGENCY TASK FORCE.

7 (a) ESTABLISHMENT.—There is hereby established

8 an interagency task force to be known as the Flood Insur9 ance Task Force (in this section referred to as the ‘‘Task

10 Force’’).

11 (b) MEMBERSHIP.—

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

13 composed of 12 members, who shall be the designees

14 of—

15 (A) the Federal Insurance Administrator;

16 (B) the Federal Housing Commissioner;

17 (C) the Secretary of Veterans Affairs;

18 (D) the Administrator of the Farmers

19 Home Administration;

20 (E) the Administrator of the Small Busi21 ness Administration;

22 (F) a designee of the Financial Institutions

23 Examination Council;
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1 (G) the chairman of the Board of Direc2 tors of the Federal Home Loan Mortgage Cor3 poration;

4 (H) the chairman of the Board of Direc5 tors of the Federal National Mortgage Associa6 tion;

7 (I) the Under Secretary of Commerce for

8 Oceans and Atmosphere;

9 (J) the Director of the United States Fish

10 and Wildlife Service;

11 (K) the Administrator of the Environ12 mental Protection Agency; and

13 (L) the Secretary of the Army, acting

14 through the Chief of Engineers.

15 (2) QUALIFICATIONS.—Members of the Task

16 Force shall be designated for membership on the

17 Task Force by reason of demonstrated knowledge

18 and competence regarding the national flood insur19 ance program.

20 (c) DUTIES.—The Task Force shall carry out the fol21 lowing duties:

22 (1) Make recommendations to the head of each

23 Federal agency and enterprise referred to under sub24 section (b)(1) regarding establishment or adoption of

25 standardized enforcement procedures among such
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1 agencies and corporations responsible for enforcing

2 compliance with the requirements under the national

3 flood insurance program to ensure fullest possible

4 compliance with such requirements.

5 (2) Conduct a study of the extent to which Fed6 eral agencies and the secondary mortgage market

7 can provide assistance in ensuring compliance with

8 the requirements under the national flood insurance

9 program and submit to the Congress a report de10 scribing the study and any conclusions.

11 (3) Conduct a study of the extent to which ex12 isting programs of Federal agencies and corpora13 tions for compliance with the requirements under

14 the national flood insurance program can serve as a

15 model for other Federal agencies responsible for en16 forcing compliance, and submit to the Congress a re17 port describing the study and any conclusions.

18 (4) Develop guidelines regarding enforcement

19 and compliance procedures, based on the studies and

20 findings of the Task Force, and publish the guide21 lines in a usable format.

22 (d) NONCOMPENSATION.—Members of the Task

23 Force shall receive no additional pay by reason of their

24 service on the Task Force.
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1 (e) CHAIRPERSON.—The members of the Task Force

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

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

4 meet at the call of the chairman or a majority of the mem5 bers of the Task Force and may take action by a vote

6 of the majority of the members. The Federal Insurance

7 Administrator shall coordinate and call the initial meeting

8 of the Task Force.

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

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

11 Task Force under subsection (c).

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

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

14 the Federal agencies and corporations referred to under

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

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

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

18 this Act.

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

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

21 take testimony, receive evidence and assistance, provide

22 information, and conduct research as the Task Force con23 siders appropriate.

24 (j) SUBCOMMITTEE ON NATURAL AND BENEFICIAL

25 FUNCTIONS OF THE FLOODPLAIN.—The members of the
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1 Task Force appointed under subparagraphs (I), (J), (K),

2 and (L) of subsection (b)(1) shall constitute a select sub3 committee which, in addition to carrying out the duties

4 under subsection (c), shall make recommendations regard5 ing the implementation of the provisions of the National

6 Flood Insurance Act of 1968 that deal with protection of

7 the natural and beneficial functions of the floodplain.

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

9 upon the expiration of the 24-month period beginning

10 upon the designation of the last member to be designated

11 under subsection (b)(1).

12 TITLE VI—MISCELLANEOUS

13 PROVISIONS

14 SEC. 601. EXTENSION OF FLOOD INSURANCE PROGRAM.

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

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

17 by striking ‘‘September 30, 1995’’ and inserting ‘‘Septem18 ber 30, 1996’’.

19 (b) EMERGENCY IMPLEMENTATION.—Section

20 1336(a) of the National Flood Insurance Act of 1968 (42

21 U.S.C. 4056(a)) is amended by striking ‘‘September 30,

22 1995’’ and inserting ‘‘September 30, 1996’’.
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1 SEC. 602. LIMITATION ON PREMIUM INCREASES.

2 (a) PROPERTY-SPECIFIC LIMITATION.—Section 1308

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

4 4013(b)) is amended—

5 (1) in subsection (c), by striking ‘‘Notwith6 standing any other provision of this title’’ and in7 serting ‘‘Subject only to the limitation under sub8 section (e)’’; and

9 (2) by inserting after subsection (d) the follow10 ing new subsection:

11 ‘‘(e) ANNUAL LIMITATION ON PREMIUM IN12 CREASES.—Notwithstanding any other provision of this

13 title, the risk premium rate for flood insurance that is

14 charged under this title for any property may not be in15 creased in an amount that would result in such rate in16 creases for the property during any 12-month period ex17 ceeding 10 percent of the amount of the risk premium rate

18 applicable to the property upon the commencement of such

19 12-month period.’’.

20 (b) REPEAL OF PROGRAM-WIDE LIMITATION.—Sub21 section (d) of section 541 of the Housing and Community

22 Development Act of 1987 (42 U.S.C. 4015 note) is hereby

23 repealed.
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1 SEC. 603. MAXIMUM FLOOD INSURANCE COVERAGE

2 AMOUNTS.

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

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

5 amended as follows:

6 (1) RESIDENTIAL PROPERTY.—In paragraph

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

8 provisions of this clause’’ and inserting the follow9 ing: ‘‘a total amount (including such limits specified

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

11 limitation pursuant to section 305(a)(2) of the Fed12 eral Home Loan Mortgage Corporation Act in effect

13 for a single-family residence’’.

14 (2) RESIDENTIAL PROPERTY CONTENTS.—In

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

16 under the provisions of this clause’’ and inserting

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

18 specified in paragraph (1)(A)(ii)) of $100,000’’.

19 (3) NONRESIDENTIAL PROPERTY AND CON20 TENTS.—By striking paragraph (4) and inserting

21 the following new paragraph:

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

23 including churches, for which the risk premium rate

24 is determined in accordance with the provisions of

25 section 1307(a)(1), additional flood insurance in ex26 cess of the limits specified in subparagraphs (B) and
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1 (C) of paragraph (1) shall be made available to

2 every insured upon renewal and every applicant for

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

4 a total amount (including such limits specified in

5 subparagraph (B) or (C) or paragraph (1), as appli6 cable) of $500,000 for each structure and $500,000

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

8 (b) REMOVAL OF CEILING ON COVERAGE RE9 QUIRED.—Section 1306(b) of the National Flood Insur10 ance Act of 1968 (42 U.S.C. 4013(b)) is amended—

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

12 end and inserting a period; and

13 (2) by striking paragraph (6).

14 SEC. 604. FLOOD INSURANCE PROGRAM ARRANGEMENTS

15 WITH PRIVATE INSURANCE ENTITIES.

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

17 of 1968 (42 U.S.C. 4081(b)) is amended by striking the

18 period at the end and inserting the following: ‘‘and without

19 regard to the provisions of the Federal Advisory Commit20 tee Act (5 U.S.C. App.).’’.

21 SEC. 605. UPDATING OF FLOOD MAPS.

22 Section 1360 of the National Flood Insurance Act of

23 1968 (42 U.S.C. 4101) is amended by adding at the end

24 the following new subsections:
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1 ‘‘(e) REVIEW OF FLOOD MAPS.—Once during each

2 5-year period (the 1st such period beginning on the date

3 of the enactment of the National Flood Insurance Reform

4 Act of 1994) or more often as the Director determines

5 necessary, the Director shall assess the need to revise and

6 update all floodplain areas and flood risk zones identified,

7 delineated, or established under this section.

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

9 revise and update any floodplain areas and flood-risk

10 zones—

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

12 according to the assessment under subsection (e),

13 that revision and updating are necessary for the

14 areas and zones; or

15 ‘‘(2) upon the request from any State or local

16 government stating that specific floodplain areas or

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

18 or updating, if sufficient technical data justifying

19 the request is submitted and the unit of government

20 making the request agrees to provide funds in an

21 amount equal to the amount of funds provided by

22 the Director (or the equivalent value of data, tech23 nical analysis, or other in-kind services) for the re24 quested revision or update.
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1 ‘‘(g) AVAILABILITY OF FLOOD MAPS.—To promote

2 compliance with the requirements of this title, the Director

3 shall make flood insurance rate maps and related informa4 tion available free of charge to State agencies directly re5 sponsible for coordinating the national flood insurance

6 program and to appropriate representatives of commu7 nities participating in the national flood insurance pro8 gram, and at a reasonable cost to all other persons. Any

9 receipts resulting from this subsection shall be deposited

10 in the National Flood Insurance Fund, pursuant to sec11 tion 1310(b)(6).

12 ‘‘(h) NOTIFICATION OF FLOOD MAP CHANGES.—The

13 Director shall cause notice to be published in the Federal

14 Register (or shall provide notice by another comparable

15 method) of any change to flood insurance map panels and

16 any change to flood insurance map panels issued in the

17 form of a letter of map amendment or a letter of map

18 revision. Such notice shall be published or otherwise pro19 vided not later than 30 days after the map change or revi20 sion becomes effective. Notice by any method other than

21 publication in the Federal Register shall include all perti22 nent information, provide for regular and frequent dis23 tribution, and be at least as accessible to map users as

24 notice in the Federal Register. All notices under this sub-
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1 section shall include information on how to obtain copies

2 of the changes or revisions.

3 ‘‘(i) COMPENDIA OF FLOOD MAP CHANGES.—Every

4 6 months, the Director shall publish separately in their

5 entirety within a compendium, all changes and revisions

6 to flood insurance map panels and all letters of map

7 amendment and letters of map revision for which notice

8 was published in the Federal Register or otherwise pro9 vided during the preceding 6 months. The Director shall

10 make such compendia available, free of charge, to States

11 and communities participating in the national flood insur12 ance program pursuant to section 1310 and at cost to all

13 other parties. Any receipts resulting from this subsection

14 shall be deposited in the National Flood Insurance Fund,

15 pursuant to section 1310(b)(6).’’.

16 SEC. 606. TECHNICAL MAPPING ADVISORY COUNCIL.

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

18 to be known as the Technical Mapping Advisory Council

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

20 (b) MEMBERSHIP.—

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

22 the Director of the Federal Emergency Management

23 Agency, or the Director’s designee, and 11 addi24 tional members to be appointed by the Director or

25 the designee of the Director, and shall include—
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1 (A) the Under Secretary of Commerce for

2 Oceans and Atmosphere (or his or her des3 ignee);

4 (B) a member of recognized surveying and

5 mapping professional associations and organiza6 tions;

7 (C) a member of recognized professional

8 engineering associations and organizations;

9 (D) a member of recognized professional

10 associations or organizations representing flood

11 hazard determination firms;

12 (E) a representative of the United States

13 Geologic Survey;

14 (F) a representative of State geologic sur15 vey programs;

16 (G) a representative of State national flood

17 insurance coordination offices; and

18 (H) a representative of a regulated lending

19 institution.

20 (2) QUALIFICATIONS.—Members of the Council

21 shall be appointed based on their demonstrated

22 knowledge and competence regarding surveying, car23 tography, remote sensing, geographic information

24 systems, or the technical aspects of preparing and

25 using flood insurance rate maps.
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1 (c) DUTIES.—The Council shall—

2 (1) make recommendations to the Director on

3 how to improve in a cost-effective manner the accu4 racy, general quality, ease of use, and distribution

5 and dissemination of flood insurance rate maps;

6 (2) recommend to the Director mapping stand7 ards and guidelines for flood insurance rate maps;

8 and

9 (3) submit an annual report to the Director

10 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 established pursuant to

17 the amendment made by section 605; and

18 (C) a summary of recommendations made

19 by the Council to the Director.

20 (d) CHAIRPERSON.—The members of the Council

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

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

23 (e) COORDINATION.—To ensure that the Council’s

24 recommendations are consistent to the maximum extent

25 practicable with national digital spatial data collection and
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1 management standards, the Chairperson shall consult with

2 the Chairperson of the Federal Geographic Data Commit3 tee (established pursuant to OMB Circular A–16).

4 (f) COMPENSATION.—Members of the Council shall

5 receive no additional compensation by reason of their serv6 ice on the Council.

7 (g) MEETINGS AND ACTIONS.—

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

9 less than twice each year at the request of the

10 Chairperson or a majority of its members and may

11 take action by a vote of the majority of the mem12 bers.

13 (2) INITIAL MEETING.—The Director, or a per14 son designated by the Director, shall request and co15 ordinate the initial meeting of the Council.

16 (h) OFFICERS.—The Chairperson may appoint offi17 cers to assist in carrying out the duties of the Council

18 under subsection (c).

19 (i) STAFF OF THE FEDERAL EMERGENCY MANAGE20 MENT AGENCY.—Upon the request of the Chairperson,

21 the Director may detail, on a nonreimbursable basis, per22 sonnel of the Federal Emergency Management Agency to

23 assist the Council in carrying out its duties.

24 (j) POWERS.—In carrying out this section, the Coun25 cil may hold hearings, receive evidence and assistance, pro-
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1 vide information, and conduct research as it considers ap2 propriate.

3 (k) TERMINATION.—The Council shall terminate 5

4 years after the date on which all members of the Council

5 have been appointed under subsection (b)(1).

6 SEC. 607. EVALUATION OF EROSION HAZARDS.

7 (a) REPORT REQUIREMENT.—The Director of the

8 Federal Emergency Management Agency (in this section

9 referred to as the ‘‘Director’’) shall submit a report under

10 this section to the Congress evaluating erosion hazards,

11 determining the economic impact of erosion hazards, and

12 assessing the costs and benefits of mapping erosion hazard

13 areas.

14 (b) EROSION HAZARD AREAS AND NFIP COSTS.—

15 The report required under this section shall—

16 (1) identify all communities that are likely to be

17 identified as having erosion hazard areas;

18 (2) estimate the amount of flood insurance

19 claims under the national flood insurance program

20 that are attributable to erosion;

21 (3) state the amount of flood insurance claims

22 under such program that are attributable to claims

23 under section 1306(c) of the National Flood Insur24 ance Act of 1968;
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1 (4) assess the full economic impact of erosion

2 on the National Flood Insurance Fund; and

3 (5) determine the costs and benefits of expendi4 tures necessary from the National Flood Insurance

5 Fund to complete mapping of erosion hazard areas.

6 To identify communities under paragraph (1), the Direc7 tor may map a statistically valid and representative num8 ber of communities with erosion hazard areas throughout

9 the United States, including coastal, Great Lakes, and,

10 if technologically feasible, riverine areas. The information

11 provided under this subsection shall take into consider12 ation the efforts of State and local governments to assess,

13 measure, and reduce erosion hazards.

14 (c) ECONOMIC IMPACT.—The report under this sec15 tion shall—

16 (1) assess the economic impact of—

17 (A) the mapping of erosion hazard areas;

18 (B) the denial of flood insurance for struc19 tures that are newly constructed in whole in

20 communities likely to be identified as having

21 erosion hazard areas and the establishment of

22 actuarial rates for existing structures in such

23 communities;
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1 (C) the denial of flood insurance pursuant

2 to existing requirements for coverage under the

3 national flood insurance program; and

4 (D) erosion hazard management activities

5 undertaken by State and local governments, in6 cluding building restrictions, beach nourish7 ment, construction of sea walls and levees, and

8 other activities that reduce the risk of damage

9 due to erosion; and

10 (2) address the economic impact of designating

11 erosion hazard areas on—

12 (A) the value of residential and commercial

13 properties in communities with erosion hazards;

14 (B) community tax revenues due to poten15 tial changes in property values or commercial

16 activity;

17 (C) employment, including the potential

18 loss or gain of existing and new jobs in the

19 community;

20 (D) existing businesses and future eco21 nomic development; and

22 (E) the estimated cost of Federal and

23 State disaster assistance to flood victims.

24 (d) COSTS AND BENEFITS OF MAPPING.—The report

25 under this section shall—
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1 (1) determine the costs and benefits of mapping

2 erosion hazard areas, based upon the Director’s esti3 mate of the actual and prospective amount of flood

4 insurance claims attributable to erosion, and if the

5 Director determines that the savings to the National

6 Flood Insurance Fund will exceed the cost of map7 ping erosion hazard areas, the report shall assess

8 whether using flood insurance premiums for costs of

9 mapping erosion hazard areas is cost-beneficial com10 pared to alternative uses of such amounts, includ11 ing—

12 (A) funding the mitigation assistance pro13 gram under section 1366 of the National Flood

14 Insurance Act of 1968 (as added by section 403

15 of this Act); and

16 (B) funding a program that would provide

17 additional coverage under the national flood in18 surance program for compliance with land use

19 and control measures; and

20 (C) reviewing, revising, and updating flood

21 insurance rate maps under subsections (e) and

22 (f) of section 1360 of the National Flood Insur23 ance Act of 1968 (as added by the amendment

24 made by section 605 of this Act);
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1 (2) if the Director determines under subsection

2 (b) that mapping of riverine areas for erosion hazard

3 areas is technologically feasible, determine the costs

4 and benefits of mapping erosion in riverine areas;

5 and

6 (3) determine the costs and benefits of mapping

7 erosion, other than those directly related to the fi8 nancial condition of the National Flood Insurance

9 Program, and the costs of not mapping erosion.

10 (e) DEFINITION.—For purposes of this section, the

11 term ‘‘erosion hazard area’’ means, based on erosion rate

12 information and other historical data available, an area

13 where erosion or avulsion is likely to result in damage to

14 or loss of buildings and infrastructure within a 60-year

15 period.

16 (f) PROCEDURE.—

17 (1) PREPARATION AND SUBMISSION.—The re18 port required under this section shall be prepared by

19 a private independent entity selected by the Direc20 tor. The Director shall submit the report to the Con21 gress as soon as practicable, but not later than 2

22 years after the date of the enactment of this Act.

23 (2) CONSULTATION.—In preparing the report,

24 the private entity shall consult with—
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1 (A) a statistically valid and representative

2 number of communities likely to be identified as

3 having erosion hazard areas;

4 (B) representatives from State coastal zone

5 management programs approved under section

6 306 of the Coastal Zone Management Act of

7 1972;

8 (C) the Administrator of the National Oce9 anic and Atmospheric Administration;

10 (D) the Director of the Federal Emergency

11 Management Agency; and

12 (E) and any other persons, officials, or en13 tities that the Director considers appropriate.

14 (g) AVAILABILITY OF NATIONAL FLOOD INSURANCE

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

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

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

18 inserting ‘‘(except as otherwise provided in this sec19 tion)’’ after ‘‘without fiscal year limitation’’; and

20 (2) by inserting after paragraph (5) (as added

21 by the preceding provisions of this Act) the following

22 new paragraph:

23 ‘‘(6) for costs of preparing the report under

24 section 607 of the National Flood Insurance Reform

25 Act of 1994, except that the fund shall be available
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1 for the purpose under this paragraph in an amount

2 not to exceed an aggregate of $5,000,000 over the

3 2-year period beginning on the date of the enact4 ment of the National Flood Insurance Reform Act of

5 1994; and’’.

6 SEC. 608. STUDY OF ECONOMIC EFFECTS OF CHARGING AC7 TUARIALLY-BASED PREMIUM RATES FOR

8 PRE-FIRM STRUCTURES.

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

10 Management Agency (in this section referred to as the

11 ‘‘Director’’) shall conduct a study of the economic effects

12 that would result from increasing premium rates for flood

13 insurance coverage made available under the national

14 flood insurance program for pre-FIRM structures to the

15 full actuarial risk based premium rate determined under

16 section 1307(a)(1) of the National Flood Insurance Act

17 of 1968 for the area in which the property is located. In

18 conducting the study, the Director shall—

19 (1) determine each area that would be subject

20 to such increased premium rates; and

21 (2) for each such area, determine—

22 (A) the amount by which premium rates

23 would be increased;

24 (B) the number and types of properties af25 fected and the number and types of properties
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1 covered by flood insurance under this title likely

2 to cancel such insurance if the rate increases

3 were made;

4 (C) the effects that the increased premium

5 rates would have on land values and property

6 taxes; and

7 (D) any other effects that the increased

8 premium rates would have on the economy and

9 homeowners.

10 (b) DEFINITION OF ‘‘PRE-FIRM STRUCTURE’’.—For

11 purposes of subsection (a), the term ‘‘pre-FIRM struc12 ture’’ means a structure that was not constructed or sub13 stantially improved after the later of—

14 (1) December 31, 1974; or

15 (2) the effective date of the initial rate map

16 published by the Director under section 1360(a)(2)

17 of the National Flood Insurance Act of 1968 for the

18 area in which such structure is located.

19 (c) REPORT.—The Director shall submit a report to

20 the Congress describing and explaining the findings of the

21 study conducted under this section. The report shall be

22 submitted not later than 12 months after the date of the

23 enactment of this Act.
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1 SEC. 609. EFFECTIVE DATES OF POLICIES.

2 (a) 30-DAY DELAY.—Section 1306 of the National

3 Flood Insurance Act of 1968 (42 U.S.C. 4013), as amend4 ed by the preceding provisions of this Act, is further

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

7 ‘‘(c) EFFECTIVE DATE OF POLICIES.—

8 ‘‘(1) WAITING PERIOD.—Except as provided in

9 paragraph (2), coverage under a new contract for

10 flood insurance coverage under this title entered into

11 after the date of the enactment of the National

12 Flood Insurance Reform Act of 1994, and any modi13 fication to coverage under an existing flood insur14 ance contract made after such date, shall become ef15 fective upon the expiration of the 30-day period be16 ginning on the date that all obligations for such cov17 erage (including completion of the application and

18 payment of any initial premiums owed) are satisfac19 torily completed.

20 ‘‘(2) EXCEPTION.—The provisions of paragraph

21 (1) shall not apply to coverage under a flood insur22 ance contract for newly constructed property and

23 coverage for newly acquired property, that is ob24 tained before or upon the completion of the con25 struction or transfer of title to the property, as ap26 plicable.’’.
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1 (b) STUDY.—The Director of the Federal Emergency

2 Management Agency shall conduct a study to determine

3 the appropriateness of existing requirements regarding the

4 effective date and time of coverage under flood insurance

5 contracts obtained through the national flood insurance

6 program. In conducting the study, the Director shall de7 termine whether any delay between the time of purchase

8 of flood insurance coverage and the time of initial effec9 tiveness of the coverage should differ for various classes

10 of properties (based upon the type of property, location

11 of the property, or any other factors related to the prop12 erty) or for various circumstances under which such insur13 ance was purchased. Not later than the expiration of the

14 6-month period beginning on the date of the enactment

15 of this Act, the Director shall submit to the Congress a

16 report on the results of the study.

17 SEC. 610. REGULATIONS.

18 The Director of the Federal Emergency Management

19 Agency, the Secretary of Housing and Urban Develop20 ment, and any appropriate head of any Federal agency

21 may each issue any regulations necessary to carry out the

22 applicable provisions of this Act and the applicable amend23 ments made by this Act.
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1 SEC. 611. RELATION TO STATE AND LOCAL LAWS.

2 This Act and the amendments made by this Act may

3 not be construed to preempt, annul, alter, amend, or ex4 empt any person from compliance with any law, ordinance,

5 or regulation of any State or local government with respect

6 to land use, management, or control.

Passed the House of Representatives May 3, 1994.

Attest: DONNALD K. ANDERSON,

Clerk.

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