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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1309 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1309

To extend the authorization of the national flood insurance program, to 
achieve reforms to improve the financial integrity and stability of the 
program, and to increase the role of private markets in the management 
            of flood insurance risk, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 2011

   Mrs. Biggert (for herself, Ms. Waters, Mr. Dold, Mr. Garrett, Mr. 
  Stivers, and Mrs. Capito) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
To extend the authorization of the national flood insurance program, to 
achieve reforms to improve the financial integrity and stability of the 
program, and to increase the role of private markets in the management 
            of flood insurance risk, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance Reform Act of 
2011''.

SEC. 2. EXTENSIONS.

    (a) Extension of Program.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2011'' and inserting ``September 30, 2016''.
    (b) Extension of Financing.--Section 1309(a) of such Act (42 U.S.C. 
4016(a)) is amended by striking ``September 30, 2011'' and inserting 
``September 30, 2016''.

SEC. 3. MANDATORY PURCHASE.

    (a) Authority To Temporarily Suspend Mandatory Purchase 
Requirement.--
            (1) In general.--Section 102 of the Flood Disaster 
        Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding 
        at the end the following new subsections:
    ``(i) Authority To Temporarily Suspend Mandatory Purchase 
Requirement.--
            ``(1) Finding by administrator that area is an eligible 
        area.--For any area, upon a request submitted to the 
        Administrator by a local government authority having 
        jurisdiction over any portion of the area, the Administrator 
        shall make a finding of whether the area is an eligible area 
        under paragraph (3). If the Administrator finds that such area 
        is an eligible area, the Administrator shall, in the discretion 
        of the Administrator, designate a period during which such 
        finding shall be effective, which shall not be longer in 
        duration than 12 months.
            ``(2) Suspension of mandatory purchase requirement.--If the 
        Administrator makes a finding under paragraph (1) that an area 
        is an eligible area under paragraph (3), during the period 
        specified in the finding, the designation of such eligible area 
        as an area having special flood hazards shall not be effective 
        for purposes of subsection (a), (b), and (e) of this section, 
        and section 202(a) of this Act. Nothing in this paragraph may 
        be construed to prevent any lender, servicer, regulated lending 
        institution, Federal agency lender, the Federal National 
        Mortgage Association, or the Federal Home Loan Mortgage 
        Corporation, at the discretion of such entity, from requiring 
        the purchase of flood insurance coverage in connection with the 
        making, increasing, extending, or renewing of a loan secured by 
        improved real estate or a mobile home located or to be located 
        in such eligible area during such period or a lender or 
        servicer from purchasing coverage on behalf of a borrower 
        pursuant to subsection (e).
            ``(3) Eligible areas.--An eligible area under this 
        paragraph is an area that is designated or will, pursuant to 
        any issuance, revision, updating, or other change in flood 
        insurance maps that takes effect on or after the date of the 
        enactment of the Flood Insurance Reform Act of 2011, become 
        designated as an area having special flood hazards and that 
        meets any one of the following 3 requirements:
                    ``(A) Areas with no history of special flood 
                hazards.--The area does not include any area that has 
                ever previously been designated as an area having 
                special flood hazards.
                    ``(B) Areas with flood protection systems under 
                improvements.--The area was intended to be protected by 
                a flood protection system--
                            ``(i) that has been decertified as 
                        providing protection for the 100-year frequency 
                        flood standard;
                            ``(ii) that is being improved, constructed, 
                        or reconstructed; and
                            ``(iii) for which the Administrator has 
                        determined measurable progress toward 
                        completion of such improvement, construction, 
                        reconstruction is being made and toward 
                        securing financial commitments sufficient to 
                        fund such completion.
                    ``(C) Areas for which appeal has been filed.--An 
                area for which a community has appealed--
                            ``(i) designation of the area as having 
                        special flood hazards in a timely manner under 
                        section 1363; or
                            ``(ii) any decertification or 
                        deaccreditation of a dam, levee, or other flood 
                        protection system or the level of protection 
                        afforded by a dam, levee, or system.
            ``(4) Extension of delay.--Upon a request submitted by a 
        local government authority having jurisdiction over any portion 
        of the eligible area, the Administrator may extend the period 
        during which a finding under paragraph (1) shall be effective, 
        except that--
                    ``(A) each such extension under this paragraph 
                shall not be for a period exceeding 12 months; and
                    ``(B) for any area, the cumulative number of such 
                extensions may not exceed 2.
            ``(5) Rule of construction.--Nothing in this subsection may 
        be construed to affect the applicability of a designation of 
        any area as an area having special flood hazards for purposes 
        of the availability of flood insurance coverage, criteria for 
        land management and use, notification of flood hazards, 
        eligibility for mitigation assistance, or any other purpose or 
        provision not specifically referred to in paragraph (2).
            ``(6) Reports.--The Administrator shall, in each annual 
        report submitted pursuant to section 1320, include information 
        identifying each finding under paragraph (1) by the 
        Administrator during the preceding year that an area is an area 
        having special flood hazards, the basis for each such finding, 
        any extensions pursuant to paragraph (4) of the periods of 
        effectiveness of such findings, and the reasons for such 
        extensions.''.
            (2) No refunds.--Nothing in this subsection or the 
        amendments made by this subsection may be construed to 
        authorize or require any payment or refund for flood insurance 
        coverage purchased for any property that covered any period 
        during which such coverage is not required for the property 
        pursuant to the applicability of the amendment made by 
        paragraph (1).
    (b) Termination of Force-Placed Insurance.--Section 102(e) of the 
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and 6), respectively; and
            (2) by adding inserting after paragraph (2) the following 
        new paragraphs:
            ``(3) Termination of force-placed insurance.--Within 30 
        days of receipt by the lender or servicer of a confirmation of 
        a borrower's existing flood insurance coverage, the lender or 
        servicer shall--
                    ``(A) terminate the force-placed insurance; and
                    ``(B) refund to the borrower all force-placed 
                insurance premiums paid by the borrower during any 
                period during which the borrower's flood insurance 
                coverage and the force-placed flood insurance coverage 
                were each in effect, and any related fees charged to 
                the borrower with respect to the force-placed insurance 
                during such period.
            ``(4) Sufficiency of demonstration.--For purposes of 
        confirming a borrower's existing flood insurance coverage, a 
        lender or servicer for a loan shall accept from the borrower an 
        insurance policy declarations page that includes the existing 
        flood insurance policy number and the identity of, and contact 
        information for, the insurance company or agent.''.

SEC. 4. REFORMS OF COVERAGE TERMS.

    (a) Minimum Deductibles for Claims.--Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended--
            (1) by striking ``The Director is'' and inserting the 
        following: ``(a) In General.--The Administrator is''; and
            (2) by adding at the end the following:
    ``(b) Minimum Annual Deductibles.--
            ``(1) Subsidized rate properties.--For any structure that 
        is covered by flood insurance under this title, and for which 
        the chargeable rate for such coverage is less than the 
        applicable estimated risk premium rate under section 1307(a)(1) 
        for the area (or subdivision thereof) in which such structure 
        is located, the minimum annual deductible for damage to or loss 
        of such structure shall be $2,000.
            ``(2) Actuarial rate properties.--For any structure that is 
        covered by flood insurance under this title, for which the 
        chargeable rate for such coverage is not less than the 
        applicable estimated risk premium rate under section 1307(a)(1) 
        for the area (or subdivision thereof) in which such structure 
        is located, the minimum annual deductible for damage to or loss 
        of such structure shall be $1,000.''.
    (b) Indexing of Maximum Coverage Limits.--Subsection (b) of section 
1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is 
amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and'';
            (3) by redesignating paragraph (5) as paragraph (7); and
            (4) by adding at the end the following new paragraph:
            ``(8) each of the dollar amount limitations under 
        paragraphs (2), (3), (4), (5), and (6) shall be adjusted 
        effective January 1 of each year (commencing in 2012), such 
        adjustments shall be calculated using the percentage change in 
        such inflationary index as the Administrator shall, by 
        regulation, specify, and the dollar amount of any such 
        adjustment shall be rounded to the next lower dollar; and the 
        Administrator shall cause to be published in the Federal 
        Register any adjustments under this paragraph to such dollar 
        amount limitations.''.
    (c) Optional Coverage for Loss of Use of Personal Residence and 
Business Interruption.--Subsection (b) of section 1306 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(b)), as amended by the 
preceding provisions of this section, is further amended by inserting 
after paragraph (4) the following new paragraphs:
            ``(5) the Administrator may provide that, in the case of 
        any residential property, each renewal or new contract for 
        flood insurance coverage may provide not more than $5,000 
        aggregate liability per dwelling unit for any necessary 
        increases in living expenses incurred by the insured when 
        losses from a flood make the residence unfit to live in, except 
        that--
                    ``(A) purchase of such coverage shall be at the 
                option of the insured;
                    ``(B) any such coverage shall be made available 
                only at chargeable rates that are not less than the 
                estimated premium rates for such coverage determined in 
                accordance with section 1307(a)(1); and
                    ``(C) the Administrator may make such coverage 
                available only if the Administrator makes a 
                determination and causes notice of such determination 
                to be published in the Federal Register that--
                            ``(i) a competitive private insurance 
                        market for such coverage does not exist; and
                            ``(ii) the national flood insurance program 
                        has the capacity to make such coverage 
                        available without borrowing funds from the 
                        Secretary of the Treasury under section 1309 or 
                        otherwise;
            ``(6) the Administrator may provide that, in the case of 
        any commercial property or other residential property, 
        including multifamily rental property, coverage for losses 
        resulting from any partial or total interruption of the 
        insured's business caused by damage to, or loss of, such 
        property from a flood may be made available to every insured 
        upon renewal and every applicant, up to a total amount of 
        $20,000 per property, except that--
                    ``(A) purchase of such coverage shall be at the 
                option of the insured;
                    ``(B) any such coverage shall be made available 
                only at chargeable rates that are not less than the 
                estimated premium rates for such coverage determined in 
                accordance with section 1307(a)(1); and
                    ``(C) the Administrator may make such coverage 
                available only if the Administrator makes a 
                determination and causes notice of such determination 
                to be published in the Federal Register that--
                            ``(i) a competitive private insurance 
                        market for such coverage does not exist; and
                            ``(ii) the national flood insurance program 
                        has the capacity to make such coverage 
                        available without borrowing funds from the 
                        Secretary of the Treasury under section 1309 or 
                        otherwise;''.
    (d) Payment of Premiums in Installments for Residential 
Properties.--Section 1306 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013) is amended by adding at the end the following new 
subsection:
    ``(d) Payment of Premiums in Installments for Residential 
Properties.--
            ``(1) Authority.--In addition to any other terms and 
        conditions under subsection (a), such regulations shall provide 
        that, in the case of any residential property, premiums for 
        flood insurance coverage made available under this title for 
        such property may be paid in quarterly installments.
            ``(2) Limitations.--In implementing the authority under 
        paragraph (1), the Administrator may establish increased 
        chargeable premium rates and surcharges, and deny coverage and 
        establish such other sanctions, as the Administrator considers 
        necessary to ensure that insureds purchase, pay for, and 
        maintain coverage for the full term of a contract for flood 
        insurance coverage and to prevent insureds from purchasing 
        coverage only for periods during a year when risk of flooding 
        is comparatively higher or canceling coverage for periods when 
        such risk is comparatively lower.''.

SEC. 5. REFORMS OF PREMIUM RATES.

    (a) Increase in Annual Limitation on Premium Increases.--Section 
1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) 
is amended by striking ``10 percent'' and inserting ``20 percent''.
    (b) Phase-In of Rates for Newly Mapped Areas.--
            (1) In general.--Section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by inserting ``or notice'' after 
                ``prescribe by regulation'';
                    (B) in subsection (c), by inserting ``and 
                subsection (g)'' before the first comma; and
                    (C) by adding at the end the following new 
                subsection:
    ``(g) 5-Year Phase-In of Flood Insurance Rates for Newly Mapped 
Areas.--
            ``(1) 50 percent rate for initial year.--Notwithstanding 
        subsection (c) or any other provision of law relating to 
        chargeable risk premium rates for flood insurance coverage 
        under this title, in the case of any area that was not 
        previously designated as an area having special flood hazards 
        and that, pursuant to any issuance, revision, updating, or 
        other change in flood insurance maps, becomes designated as 
        such an area, during the 12-month period that begins upon the 
        date that such maps, as issued, revised, update, or otherwise 
        changed, become effective, the chargeable premium rate for 
        flood insurance under this title with respect to any property 
        that is located within such area shall be 50 percent of the 
        chargeable risk premium rate otherwise applicable under this 
        title to the property.
            ``(2) Phase-in of full actuarial rates.--With respect to 
        any area described in paragraph (1), upon the expiration of the 
        12-month period under paragraph (1) for such area, the 
        Administrator shall increase the chargeable risk premium rates 
        for flood insurance under this title for properties in such 
        area by 20 percent, and by 20 percent upon the expiration of 
        each successive 12-month period thereafter until the chargeable 
        risk premium rates comply with subsection (c).''.
            (2) Regulation or notice.--The Administrator of the Federal 
        Emergency Management Agency shall issue an interim final rule 
        or notice to implement this subsection and the amendments made 
        by this subsection as soon as practicable after the date of the 
        enactment of this Act.
    (c) Phase-In of Actuarial Rates for Certain Properties.--
            (1) In general.--Section 1308(c) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (7); and
                    (B) by inserting after paragraph (1) the following 
                new paragraphs:
            ``(2) Commercial properties.--Any nonresidential property.
            ``(3) Second homes and vacation homes.--Any residential 
        property that is not the primary residence of any individual.
            ``(4) Homes sold to new owners.--Any single family property 
        that--
                    ``(A) has been constructed or substantially 
                improved and for which such construction or improvement 
                was started, as determined by the Administrator, before 
                December 31, 1974, or before the effective date of the 
                initial rate map published by the Administrator under 
                paragraph (2) of section 1360(a) for the area in which 
                such property is located, whichever is later; and
                    ``(B) is purchased after the effective date of this 
                paragraph, pursuant to section 5(c)(3)(A) of the Flood 
                Insurance Reform Act of 2011.
            ``(5) Homes damaged or improved.--Any property that, on or 
        after the date of the enactment of the Flood Insurance Reform 
        Act of 2011, has experienced or sustained--
                    ``(A) substantial damage exceeding 50 percent of 
                the fair market value of such property; or
                    ``(B) substantial improvement exceeding 30 percent 
                of the fair market value of such property.
            ``(6) Homes with multiple claims.--Any severe repetitive 
        loss property (as such term is defined in section 1361A(b)).''.
            (2) Technical amendments.--Section 1308 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--
                    (A) in subsection (c)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``the limitations provided under 
                        paragraphs (1) and (2)'' and inserting 
                        ``subsection (e)''; and
                            (ii) in paragraph (1), by striking ``, 
                        except'' and all that follows through 
                        ``subsection (e)''; and
                    (B) in subsection (e), by striking ``paragraph (2) 
                or (3)'' and inserting ``paragraph (7)''.
            (3) Effective date and transition.--
                    (A) Effective date.--The amendments made by 
                paragraphs (1) and (2) shall apply beginning upon the 
                expiration of the 12-month period that begins on the 
                date of the enactment of this Act, except as provided 
                in subparagraph (B) of this paragraph.
                    (B) Transition for properties covered by flood 
                insurance upon effective date.--
                            (i) Increase of rates over time.--In the 
                        case of any property described in paragraph 
                        (2), (3), (4), (5), or (6) of section 1308(c) 
                        of the National Flood Insurance Act of 1968, as 
                        amended by paragraph (1) of this subsection, 
                        that, as of the effective date under 
                        subparagraph (A) of this paragraph, is covered 
                        under a policy for flood insurance made 
                        available under the national flood insurance 
                        program for which the chargeable premium rates 
                        are less than the applicable estimated risk 
                        premium rate under section 1307(a)(1) of such 
                        Act for the area in which the property is 
                        located, the Administrator of the Federal 
                        Emergency Management Agency shall increase the 
                        chargeable premium rates for such property over 
                        time to such applicable estimated risk premium 
                        rate under section 1307(a)(1).
                            (ii) Amount of annual increase.--Such 
                        increase shall be made by increasing the 
                        chargeable premium rates for the property 
                        (after application of any increase in the 
                        premium rates otherwise applicable to such 
                        property), once during the 12-month period that 
                        begins upon the effective date under 
                        subparagraph (A) of this paragraph and once 
                        every 12 months thereafter until such increase 
                        is accomplished, by 20 percent (or such lesser 
                        amount as may be necessary so that the 
                        chargeable rate does not exceed such applicable 
                        estimated risk premium rate or to comply with 
                        clause (iii)).
                            (iii) Properties subject to phase-in and 
                        annual increases.--In the case of any pre-FIRM 
                        property (as such term is defined in section 
                        578(b) of the National Flood Insurance Reform 
                        Act of 1974), the aggregate increase, during 
                        any 12-month period, in the chargeable premium 
                        rate for the property that is attributable to 
                        this subparagraph or to an increase described 
                        in section 1308(e) of the National Flood 
                        Insurance Act of 1968 may not exceed 20 
                        percent.
                            (iv) Full actuarial rates.--The provisions 
                        of paragraphs (2), (3), (4), (5), and (6) of 
                        such section 1308(c) shall apply to such a 
                        property upon the accomplishment of the 
                        increase under this subparagraph and 
                        thereafter.
    (d) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by the preceding provisions of this Act, is 
further amended--
            (1) in subsection (e), by inserting ``or subsection (h)'' 
        after ``subsection (c)'';
            (2) by adding at the end the following new subsection:
    ``(h) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--Notwithstanding any other provision of law relating to 
chargeable risk premium rates for flood insurance coverage under this 
title, the Administrator shall not provide flood insurance coverage 
under this title for any property for which a policy for such coverage 
for the property has previously lapsed in coverage as a result of the 
deliberate choice of the holder of such policy, at a rate less than the 
applicable estimated risk premium rates for the area (or subdivision 
thereof) in which such property is located.''.
    (e) Recognition of State and Local Funding for Construction, 
Reconstruction, and Improvement of Flood Protection Systems in 
Determination of Rates.--
            (1) In general.--Section 1307 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (e)--
                            (i) in the first sentence, by striking 
                        ``construction of a flood protection system'' 
                        and inserting ``construction, reconstruction, 
                        or improvement of a flood protection system 
                        (without respect to the level of Federal 
                        investment or participation)''; and
                            (ii) in the second sentence--
                                    (I) by striking ``construction of a 
                                flood protection system'' and inserting 
                                ``construction, reconstruction, or 
                                improvement of a flood protection 
                                system''; and
                                    (II) by inserting ``based on the 
                                present value of the completed system'' 
                                after ``has been expended''; and
                    (B) in subsection (f)--
                            (i) in the first sentence in the matter 
                        preceding paragraph (1), by inserting 
                        ``(without respect to the level of Federal 
                        investment or participation)'' before the 
                        period at the end;
                            (ii) in the third sentence in the matter 
                        preceding paragraph (1), by inserting ``, 
                        whether coastal or riverine,'' after ``special 
                        flood hazard''; and
                            (iii) in paragraph (1), by striking ``a 
                        Federal agency in consultation with the local 
                        project sponsor'' and inserting ``the entity or 
                        entities that own, operate, maintain, or repair 
                        such system''.
            (2) Regulations.--The Administrator of the Federal 
        Emergency Management Agency shall promulgate regulations to 
        implement this subsection and the amendments made by this 
        subsection as soon as practicable, but not more than 18 months 
        after the date of the enactment of this Act. Paragraph (3) may 
        not be construed to annul, alter, affect, authorize any waiver 
        of, or establish any exception to, the requirement under the 
        preceding sentence.

SEC. 6. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of--
                    (A) the Administrator of the Federal Emergency 
                Management Agency (in this section referred to as the 
                ``Administrator''), or the designee thereof;
                    (B) the Director of the United States Geological 
                Survey of the Department of the Interior, or the 
                designee thereof;
                    (C) the Under Secretary of Commerce for Oceans and 
                Atmosphere, or the designee thereof;
                    (D) the commanding officer of the United States 
                Army Corps of Engineers, or the designee thereof;
                    (E) the chief of the Natural Resources Conservation 
                Service of the Department of Agriculture, or the 
                designee thereof;
                    (F) the Director of the United States Fish and 
                Wildlife Service of the Department of the Interior, or 
                the designee thereof;
                    (G) the Assistant Administrator for Fisheries of 
                the National Oceanic and Atmospheric Administration of 
                the Department of Commerce, or the designee thereof; 
                and
                    (H) 9 additional members to be appointed by the 
                Administrator of the Federal Emergency Management 
                Agency, who shall be--
                            (i) an expert in data management;
                            (ii) an expert in real estate;
                            (iii) an expert in insurance;
                            (iv) a member of a recognized regional 
                        flood and storm water management organization;
                            (v) a representative of a State emergency 
                        management agency or association or 
                        organization for such agencies;
                            (vi) a member of a recognized professional 
                        surveying association or organization;
                            (vii) a member of a recognized professional 
                        mapping association or organization;
                            (viii) a member of a recognized 
                        professional engineering association or 
                        organization; and
                            (ix) a member of a recognized professional 
                        association or organization representing flood 
                        hazard determination firms.
            (2) Qualifications.--Members of the Council shall be 
        appointed based on their demonstrated knowledge and competence 
        regarding surveying, cartography, remote sensing, geographic 
        information systems, or the technical aspects of preparing and 
        using flood insurance rate maps. In appointing members under 
        paragraph (1)(I), the Administrator shall ensure that the 
        membership of the Council has a balance of Federal, State, 
        local, and private members.
    (c) Duties.--
            (1) New mapping standards.--Not later than the expiration 
        of the 12-month period beginning upon the date of the enactment 
        of this Act, the Council shall develop and submit to the 
        Administrator and the Congress proposed new mapping standards 
        for 100-year flood insurance rate maps used under the national 
        flood insurance program under the National Flood Insurance Act 
        of 1968. In developing such proposed standards the Council 
        shall--
                    (A) ensure that the flood insurance rate maps 
                reflect true risk, including graduated risk that better 
                reflects risk to each property; such reflection of risk 
                should be at the smallest geographic level possible 
                (but not necessarily property-by-property) to ensure 
                that communities are mapped in a manner that takes into 
                consideration different risk levels within the 
                community;
                    (B) ensure that flood insurance rate maps reflect 
                current land use and topography and incorporate the 
                most current and accurate ground elevation data;
                    (C) determine the best ways to include in such 
                flood insurance rate maps levees, decertified levees, 
                and areas located below dams, including determining a 
                methodology for ensuring that decertified levees and 
                other protections are included in flood insurance rate 
                maps and their corresponding flood zones reflect the 
                level of protection conferred;
                    (D) consider how to incorporate restored wetlands 
                and other natural buffers into flood insurance rate 
                maps, which may include wetlands, groundwater recharge 
                areas, erosion zones, meander belts, endangered species 
                habitat, barrier islands and shoreline buffer features, 
                riparian forests, and other features;
                    (E) ensure that flood insurance rate maps take into 
                consideration the best scientific data and potential 
                future conditions (including projections for sea level 
                rise); and
                    (F) consider how to incorporate the new standards 
                proposed pursuant to this paragraph in existing mapping 
                efforts.
            (2) Ongoing duties.--The Council shall, on an ongoing 
        basis, review the mapping protocols developed pursuant to 
        paragraph (1), and make recommendations to the Administrator 
        when the Council determines that mapping protocols should be 
        altered.
            (3) Meetings.--In carrying out its duties under this 
        section, the Council shall consult with stakeholders through at 
        least 4 public meetings annually, and shall seek input of all 
        stakeholder interests including State and local 
        representatives, environmental and conservation organizations, 
        insurance industry representatives, advocacy groups, planning 
        organizations, and mapping organizations.
    (d) Prohibition on Compensation.--Members of the Council shall 
receive no additional compensation by reason of their service on the 
Council.
    (e) Chairperson.--The Administrator shall serve as the Chairperson 
of the Council.
    (f) Staff.--
            (1) FEMA.--Upon the request of the Council, the 
        Administrator may detail, on a nonreimbursable basis, personnel 
        of the Federal Emergency Management Agency to assist the 
        Council in carrying out its duties.
            (2) Other federal agencies.--Upon request of the Council, 
        any other Federal agency that is a member of the Council may 
        detail, on a non-reimbursable basis, personnel to assist the 
        Council in carrying out its duties.
    (g) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as the Council considers appropriate.
    (h) Termination.--The Council shall terminate upon the expiration 
of the 5-year period beginning on the date of the enactment of this 
Act.

SEC. 7. FEMA INCORPORATION OF NEW MAPPING PROTOCOLS.

    (a) New Rate Mapping Standards.--Not later than the expiration of 
the 6-month period beginning upon submission by the Technical Mapping 
Advisory Council under section 6 of the proposed new mapping standards 
for flood insurance rate maps used under the national flood insurance 
program developed by the Council pursuant to section 6(c), the 
Administrator of the Federal Emergency Management Agency (in this 
section referred to as the ``Administrator'') shall establish new 
standards for such rate maps based on such proposed new standards and 
the recommendations of the Council.
    (b) Requirements.--The new standards for flood insurance rate maps 
established by the Administrator pursuant to subsection (a) shall--
            (1) delineate and include in any such rate maps--
                    (A) all areas located within the 100-year flood 
                plain;
                    (B) all areas located within the 250-year 
                floodplain;
                    (C) areas of residual risk, including areas behind 
                levees, dams, and other man-made structures; and
                    (D) areas subject to graduated and other risk 
                levels, to the maximum extent possible;
            (2) ensure that any such rate maps--
                    (A) include levees, including decertified levees, 
                and the level of protection they confer;
                    (B) reflect current land use and topography and 
                incorporate the most current and accurate ground level 
                data;
                    (C) take into consideration the impacts and use of 
                fill and the flood risks associated with altered 
                hydrology;
                    (D) identify and incorporate natural features and 
                their associated flood protection benefits into mapping 
                and rates; and
                    (E) identify, analyze, and incorporate the impact 
                of significant changes to building and development 
                throughout any river or costal water system, including 
                all tributaries, which may impact flooding in areas 
                downstream; and
            (3) provide that such rate maps are developed on a 
        watershed basis.
    (c) Report.--If, in establishing new standards for flood insurance 
rate maps pursuant to subsection (a) of this section, the Administrator 
does not implement all of the recommendations of the Council made under 
the proposed new mapping standards developed by the Council pursuant to 
section 6(c), upon establishment of the new standards the Administrator 
shall submit a report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate specifying which such recommendations were 
not adopted and explaining the reasons such recommendations were not 
adopted.
    (d) Implementation.--The Administrator shall, not later than the 
expiration of the 6-month period beginning upon establishment of the 
new standards for flood insurance rate maps pursuant to subsection (a) 
of this section, commence use of the new standards and updating of 
flood insurance rate maps in accordance with the new standards. Not 
later than the expiration of the 5-year period beginning upon the 
establishment of such new standards, the Administrator shall complete 
updating of all flood insurance rate maps in accordance with the new 
standards, subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts.

SEC. 8. PRIVATIZATION INITIATIVES.

    (a) FEMA and GAO Reports.--Not later than the expiration of the 18-
month period beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management Agency and the 
Comptroller General of the United States shall each conduct a separate 
study to assess a broad range of options, methods, and strategies for 
privatizing the national flood insurance program and shall each submit 
a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate with recommendations for the best manner to 
accomplish such privatization.
    (b) Private Risk-Management Initiatives.--
            (1) Authority.--The Administrator of the Federal Emergency 
        Management Agency may carry out such private risk-management 
        initiatives under the national flood insurance program as the 
        Administrator considers appropriate to determine the capacity 
        of private insurers, reinsurers, and financial markets to 
        assist communities, on a voluntary basis only, in managing the 
        full range of financial risks associated with flooding.
            (2) Assessment.--Not later than the expiration of the 6-
        month period beginning on the date of the enactment of this 
        Act, the Administrator shall assess the capacity of the private 
        reinsurance, capital, and financial markets by seeking 
        proposals to assume a portion of the program's insurance risk 
        and submit to the Congress a report describing the response to 
        such request for proposals and the results of such assessment.
    (c) Reinsurance.--The National Flood Insurance Act of 1968 is 
amended--
            (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
        inserting ``, including as reinsurance of insurance coverage 
        provided by the flood insurance program'' before ``, on such 
        terms'';
            (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by 
        inserting ``or reinsurance'' after ``flood insurance 
        coverage'';
            (3) in section 1335(a) (42 U.S.C. 4055(a))--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The Director is authorized to secure reinsurance coverage of 
coverage provided by the flood insurance program from private market 
insurance, reinsurance, and capital market sources at rates and on 
terms determined by the Director to be reasonable and appropriate in an 
amount sufficient to maintain the ability of the program to pay claims 
and that minimizes the likelihood that the program will utilize the 
borrowing authority provided under section 1309.'';
            (4) in section 1346(a) (12 U.S.C. 4082(a))--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, or for purposes of securing reinsurance 
                of insurance coverage provided by the program,'' before 
                ``of any or all of'';
                    (B) in paragraph (1)--
                            (i) by striking ``estimating'' and 
                        inserting ``Estimating''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period;
                    (C) in paragraph (2)--
                            (i) by striking ``receiving'' and inserting 
                        ``Receiving''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period;
                    (D) in paragraph (3)--
                            (i) by striking ``making'' and inserting 
                        ``Making''; and
                            (ii) by striking ``; and'' and inserting a 
                        period;
                    (E) in paragraph (4)--
                            (i) by striking ``otherwise'' and inserting 
                        ``Otherwise''; and
                            (ii) by redesignating such paragraph as 
                        paragraph (5); and
                    (F) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Placing reinsurance coverage on insurance provided by 
        such program.''; and
            (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by 
        inserting before the semicolon at the end the following: ``, is 
        subject to the reporting requirements of the Securities 
        Exchange Act of 1934, pursuant to section 13(a) or 15(d) of 
        such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the 
        Director to assume reinsurance on risks insured by the flood 
        insurance program''.

SEC. 9. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4027) is amended--
            (1) in the section heading, by striking ``report to the 
        president'' and inserting ``annual report to congress'';
            (2) in subsection (a)--
                    (A) by striking ``biennially'';
                    (B) by striking ``the President for submission 
                to''; and
                    (C) by inserting ``not later than June 30 of each 
                year'' before the period at the end;
            (3) in subsection (b), by striking ``biennial'' and 
        inserting ``annual''; and
            (4) by adding at the end the following new subsection:
    ``(c) Financial Status of Program.--The report under this section 
for each year shall include information regarding the financial status 
of the national flood insurance program under this title, including a 
description of the financial status of the National Flood Insurance 
Fund and current and projected levels of claims, premium receipts, 
expenses, and borrowing under the program.''.

SEC. 10. MITIGATION ASSISTANCE.

    Subsection (e) of section 1366 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104c(e)) is amended by adding at the end the 
following new paragraph:
            ``(6) Eligibility of demolition and rebuilding of 
        properties.--The Administrator shall consider as an eligible 
        activity the demolition and rebuilding of properties to at 
        least base flood levels or higher, if required by the 
        Administrator or if required by any State or local ordinance, 
        and in accordance with project implementation criteria 
        established by the Administrator.''.

SEC. 11. TECHNICAL CORRECTIONS.

    (a) Flood Disaster Protection Act of 1973.--The Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4002 et seq.) is amended--
            (1) by striking ``Director'' each place such term appears, 
        except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and 
        inserting ``Administrator''; and
            (2) in section 201(b) (42 U.S.C. 4105(b)), by striking 
        ``Director's'' and inserting ``Administrator's''.
    (b) National Flood Insurance Act of 1968.--The National Flood 
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
            (1) by striking ``Director'' each place such term appears 
        and inserting ``Administrator''; and
            (2) in sections 1363 (42 U.S.C. 4104), by striking 
        ``Director's'' each place such term appears and inserting 
        ``Administrator's''.
    (c) Federal Flood Insurance Act of 1956.--Section 15(e) of the 
Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is amended by 
striking ``Director'' each place such term appears and inserting 
``Administrator''.

SEC. 12. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

    Section 105(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(26) to supplement existing State or local funding for 
        administration of building code enforcement by local building 
        code enforcement departments, including for increasing 
        staffing, providing staff training, increasing staff competence 
        and professional qualifications, and supporting individual 
        certification or departmental accreditation, and for capital 
        expenditures specifically dedicated to the administration of 
        the building code enforcement department, except that, to be 
        eligible to use amounts as provided in this paragraph--
                    ``(A) a building code enforcement department shall 
                provide matching, non-Federal funds to be used in 
                conjunction with amounts used under this paragraph in 
                an amount--
                            ``(i) in the case of a building code 
                        enforcement department serving an area with a 
                        population of more than 50,000, equal to not 
                        less than 50 percent of the total amount of any 
                        funds made available under this title that are 
                        used under this paragraph;
                            ``(ii) in the case of a building code 
                        enforcement department serving an area with a 
                        population of between 20,001 and 50,000, equal 
                        to not less than 25 percent of the total amount 
                        of any funds made available under this title 
                        that are used under this paragraph; and
                            ``(iii) in the case of a building code 
                        enforcement department serving an area with a 
                        population of less than 20,000, equal to not 
                        less than 12.5 percent of the total amount of 
                        any funds made available under this title that 
                        are used under this paragraph;
                except that the Secretary may waive the matching fund 
                requirements under this subparagraph, in whole or in 
                part, based upon the level of economic distress of the 
                jurisdiction in which is located the local building 
                code enforcement department that is using amounts for 
                purposes under this paragraph, and shall waive such 
                matching fund requirements in whole for any recipient 
                jurisdiction that has dedicated all building code 
                permitting fees to the conduct of local building code 
                enforcement; and
                    ``(B) any building code enforcement department 
                using funds made available under this title for 
                purposes under this paragraph shall empanel a code 
                administration and enforcement team consisting of at 
                least 1 full-time building code enforcement officer, a 
                city planner, and a health planner or similar 
                officer.''.
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