112TH CONGRESS 

2D SESSION H. R. 5652 

AN ACT 

To provide for reconciliation pursuant to section 201 of 

the concurrent resolution on the budget for fiscal year 2013. 

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

2 This Act may be cited as the ‘‘Sequester Replacement 

3 Reconciliation Act of 2012’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 The table of contents is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—AGRICULTURE 

Sec. 101. Short title. 

Sec. 102. ARRA sunset at June 30, 2012. 

Sec. 103. Categorical eligibility limited to cash assistance. 

Sec. 104. Standard utility allowances based on the receipt of energy assistance 

payments. 

Sec. 105. Employment and training; workfare. 

Sec. 106. End State bonus program for the supplemental nutrition assistance 

program. 

Sec. 107. Funding of employment and training programs. 

Sec. 108. Turn off indexing for nutrition education and obesity prevention. 

Sec. 109. Extension of Authorization of Food and Nutrition Act of 2008. 

Sec. 110. Effective dates and application of amendments. 

TITLE II—COMMITTEE ON ENERGY AND COMMERCE 

Subtitle A—Repeal of Certain ACA Funding Provisions 

Sec. 201. Repealing mandatory funding to states to establish American Health 

Benefit Exchanges. 

Sec. 202. Repealing Prevention and Public Health Fund. 

Sec. 203. Rescinding unobligated balances for CO-OP program. 

Subtitle B—Medicaid 

Sec. 211. Revision of provider tax indirect guarantee threshold. 

Sec. 212. Rebasing of State DSH allotments for fiscal year 2022. 

Sec. 213. Repeal of Medicaid and CHIP maintenance of effort requirements 

under PPACA. 

Sec. 214. Medicaid payments to territories. 

Sec. 215. Repealing bonus payments for enrollment under Medicaid and CHIP. 

TITLE III—FINANCIAL SERVICES 

Sec. 301. Table of contents. 

Subtitle A—Orderly Liquidation Fund 

Sec. 311. Repeal of liquidation authority. 

Subtitle B—Home Affordable Modification Program 

Sec. 321. Short title. 

Sec. 322. Congressional findings. 
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Sec. 323. Termination of authority. 

Sec. 324. Sense of Congress. 

Subtitle C—Bureau of Consumer Financial Protection 

Sec. 331. Bringing the Bureau of Consumer Financial Protection into the regular appropriations process. 

Subtitle D—Flood Insurance Reform 

Sec. 341. Short title. 

Sec. 342. Extensions. 

Sec. 343. Mandatory purchase. 

Sec. 344. Reforms of coverage terms. 

Sec. 345. Reforms of premium rates. 

Sec. 346. Technical Mapping Advisory Council. 

Sec. 347. FEMA incorporation of new mapping protocols. 

Sec. 348. Treatment of levees. 

Sec. 349. Privatization initiatives. 

Sec. 350. FEMA annual report on insurance program. 

Sec. 351. Mitigation assistance. 

Sec. 352. Notification to homeowners regarding mandatory purchase requirement applicability and rate phase-ins. 

Sec. 353. Notification to members of congress of flood map revisions and updates. 

Sec. 354. Notification and appeal of map changes; notification to communities 

of establishment of flood elevations. 

Sec. 355. Notification to tenants of availability of contents insurance. 

Sec. 356. Notification to policy holders regarding direct management of policy 

by FEMA. 

Sec. 357. Notice of availability of flood insurance and escrow in RESPA good 

faith estimate. 

Sec. 358. Reimbursement for costs incurred by homeowners and communities 

obtaining letters of map amendment or revision. 

Sec. 359. Enhanced communication with certain communities during map updating process. 

Sec. 360. Notification to residents newly included in flood hazard areas. 

Sec. 361. Treatment of swimming pool enclosures outside of hurricane season. 

Sec. 362. Information regarding multiple perils claims. 

Sec. 363. FEMA authority to reject transfer of policies. 

Sec. 364. Appeals. 

Sec. 365. Reserve fund. 

Sec. 366. CDBG eligibility for flood insurance outreach activities and community building code administration grants. 

Sec. 367. Technical corrections. 

Sec. 368. Requiring competition for national flood insurance program policies. 

Sec. 369. Studies of voluntary community-based flood insurance options. 

Sec. 370. Report on inclusion of building codes in floodplain management criteria. 

Sec. 371. Study on graduated risk. 

Sec. 372. Report on flood-in-progress determination. 

Sec. 373. Study on repaying flood insurance debt. 

Sec. 374. No cause of action. 

Sec. 375. Authority for the corps of engineers to provide specialized or technical 

services. 
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Subtitle E—Repeal of the Office of Financial Research 

Sec. 381. Repeal of the Office of Financial Research. 

TITLE IV—COMMITTEE ON THE JUDICIARY 

Sec. 401. Short title. 

Sec. 402. Encouraging speedy resolution of claims. 

Sec. 403. Compensating patient injury. 

Sec. 404. Maximizing patient recovery. 

Sec. 405. Punitive damages. 

Sec. 406. Authorization of payment of future damages to claimants in health 

care lawsuits. 

Sec. 407. Definitions. 

Sec. 408. Effect on other laws. 

Sec. 409. State flexibility and protection of States’ rights. 

Sec. 410. Applicability; effective date. 

TITLE V—COMMITTEE ON OVERSIGHT AND GOVERNMENT 

REFORM 

Sec. 501. Retirement contributions. 

Sec. 502. Annuity supplement. 

Sec. 503. Contributions to Thrift Savings Fund of payments for accrued or accumulated leave. 

TITLE VI—COMMITTEE ON WAYS AND MEANS 

Subtitle A—Recapture of Overpayments Resulting From Certain Federallysubsidized Health Insurance 

Sec. 601. Recapture of overpayments resulting from certain federally-subsidized 

health insurance. 

Subtitle B—Social Security Number Required to Claim the Refundable 

Portion of the Child Tax Credit 

Sec. 611. Social security number required to claim the refundable portion of the 

child tax credit. 

Subtitle C—Human Resources Provisions 

Sec. 621. Repeal of the program of block grants to States for social services. 

TITLE VII—SEQUESTER REPLACEMENT 

Sec. 701. Short title. 

Sec. 702. Protecting veterans programs from sequester. 

Sec. 703. Achieving $19 billion in discretionary savings. 

Sec. 704. Conforming amendments to section 314 of the Congressional Budget 

and Impoundment Control Act of 1974. 

Sec. 705. Treatment for PAYGO purposes. 

Sec. 706. Elimination of the fiscal year 2013 sequestration for defense direct 

spending. 
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1 TITLE I—AGRICULTURE 

2 SEC. 101. SHORT TITLE. 

3 This title may be cited as the ‘‘Agricultural Reconcili4 ation Act of 2012’’. 

5 SEC. 102. ARRA SUNSET AT JUNE 30, 2012. 

6 Section 101(a)(2) of division A of the American Re7 covery and Reinvestment Act of 2009 (Public Law 111– 

8 5; 123 Stat. 120) is amended by striking ‘‘October 31, 

9 2013’’ and inserting ‘‘June 30, 2012’’. 

10 SEC. 103. CATEGORICAL ELIGIBILITY LIMITED TO CASH AS11 SISTANCE. 

12 Section 5 of the Food and Nutrition Act of 2008 (7 

13 U.S.C. 2014) is amended— 

14 (1) in the 2d sentence of subsection (a) by 

15 striking ‘‘households in which each member receives 

16 benefits’’ and inserting ‘‘households in which each 

17 member receives cash assistance’’, and 

18 (2) in subsection (j) by striking ‘‘or who re19 ceives benefits under a State program’’ and inserting 

20 ‘‘or who receives cash assistance under a State pro21 gram’’. 
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1 SEC. 104. STANDARD UTILITY ALLOWANCES BASED ON THE 

2 RECEIPT OF ENERGY ASSISTANCE PAY3 MENTS. 

4 (a) STANDARD UTILITY ALLOWANCE.—Section 5 of 

5 the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 

6 amended— 

7 (1) in subsection (e)(6)(C) by striking clause 

8 (iv), and 

9 (2) in subsection (k) by striking paragraph (4) 

10 and inserting the following: 

11 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY12 MENTS.—For purposes of subsection (d)(1), a pay13 ment made under a State law (other than a law re14 ferred to in paragraph (2)(G)) to provide energy as15 sistance to a household shall be considered money 

16 payable directly to the household.’’. 

17 (b) CONFORMING AMENDMENTS.—Section 

18 2605(f)(2) of the Low-Income Home Energy Assistance 

19 Act of 1981 (42 U.S.C. 8624(f)(2)) is amended— 

20 (1) by striking ‘‘and for purposes of deter21 mining any excess shelter expense deduction under 

22 section 5(e) of the Food and Nutrition Act of 2008 

23 (7 U.S.C. 2014(e))’’, and 

24 (2) in subparagraph (A) by inserting before the 

25 semicolon the following: ‘‘, except that such pay26 ments or allowances shall not be deemed to be ex-
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1 pended for purposes of determining any excess shel2 ter expense deduction under section 5(e)(6) of the 

3 Food and Nutrition Act of 2008 (7 U.S.C. 

4 2014(e)(6))’’. 

5 SEC. 105. EMPLOYMENT AND TRAINING; WORKFARE. 

6 (a) ADMINISTRATIVE COST-SHARING FOR EMPLOY7 MENT AND TRAINING PROGRAMS.— 

8 (1) IN GENERAL.—Section 16 of the Food and 

9 Nutrition Act of 2008 (7 U.S.C. 2025) is amend10 ed— 

11 (A) in subsection (a) by inserting ‘‘(other 

12 than a program carried out under section 

13 6(d)(4) or section 20)’’ after ‘‘supplemental nu14 trition assistance program’’ the 1st place it ap15 pears, and 

16 (B) in subsection (h)— 

17 (i) by striking paragraphs (2) and (3), 

18 and 

19 (ii) by redesignating paragraphs (4) 

20 and (5) as paragraphs (2) and (3), respec21 tively. 

22 (2) CONFORMING AMENDMENTS.— 

23 (A) Section 17(b)(1)(B)(iv)(III)(hh) of the 

24 Food and Nutrition Act of 2008 (7 U.S.C. 

25 2026(b)(1)(B)(iv)(III)(hh)) is amended by 
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1 striking ‘‘(g), (h)(2), or (h)(3)’’ and inserting 

2 ‘‘or (g)’’. 

3 (B) Section 22(d)(1)(B)(ii) of the Food 

4 and Nutrition Act of 2008 (7 U.S.C. 

5 2031(d)(1)(B)(ii)) is amended is amended by 

6 striking ‘‘, (g), (h)(2), and (h)(3)’’ and insert7 ing ‘‘and (g)’’. 

8 (b) ADMINISTRATIVE COST-SHARING AND REIM9 BURSEMENTS FOR WORKFARE.—Section 20 of the Food 

10 and Nutrition Act of 2008 (7 U.S.C. 2029) is amended 

11 by striking subsection (g). 

12 SEC. 106. END STATE BONUS PROGRAM FOR THE SUPPLE13 MENTAL NUTRITION ASSISTANCE PROGRAM. 

14 Section 16 of the Food and Nutrition Act of 2008 

15 (7 U.S.C. 2025) is amended by striking subsection (d). 

16 SEC. 107. FUNDING OF EMPLOYMENT AND TRAINING PRO17 GRAMS. 

18 For purposes of fiscal year 2013, the reference to 

19 $90,000,000 in section 16(h)(1)(A) of the Food and Nu20 trition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) shall be 

21 deemed to be a reference to $79,000,000. 

22 SEC. 108. TURN OFF INDEXING FOR NUTRITION EDU23 CATION AND OBESITY PREVENTION. 

24 Section 28(d) of the Food and Nutrition Act of 2008 

25 (7 U.S.C. 2037(d)) is amended by striking ‘‘years—’’ and 
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1 all that follows through the period at the end, and insert2 ing ‘‘years, $375,000,000.’’. 

3 SEC. 109. EXTENSION OF AUTHORIZATION OF FOOD AND 

4 NUTRITION ACT OF 2008. 

5 Section 18(a)(1) of the Food and Nutrition Act of 

6 2008 (7 U.S.C. 2027(a)(1)) is amended by striking 

7 ‘‘2012’’ and inserting ‘‘2013’’. 

8 SEC. 110. EFFECTIVE DATES AND APPLICATION OF AMEND9 MENTS. 

10 (a) GENERAL EFFECTIVE DATE.—Except as pro11 vided in subsection (b), this title and the amendments 

12 made by this title shall take effect on October 1, 2012, 

13 and shall apply only with respect to certification periods 

14 that begin on or after such date. 

15 (b) SPECIAL EFFECTIVE DATE.—Section 107 and 

16 the amendments made by sections 102, 103, 104, and 109 

17 shall take effect on the date of the enactment of this Act 

18 and shall apply only with respect to certification periods 

19 that begin on or after such date. 
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1 TITLE II—COMMITTEE ON 

2 ENERGY AND COMMERCE 

3 Subtitle A—Repeal of Certain ACA 

4 Funding Provisions 

5 SEC. 201. REPEALING MANDATORY FUNDING TO STATES TO 

6 ESTABLISH AMERICAN HEALTH BENEFIT EX7 CHANGES. 

8 (a) IN GENERAL.—Section 1311(a) of the Patient 

9 Protection and Affordable Care Act (42 U.S.C. 18031(a)) 

10 is repealed. 

11 (b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 

12 funds made available under such section 1311(a), the un13 obligated balance is rescinded. 

14 SEC. 202. REPEALING PREVENTION AND PUBLIC HEALTH 

15 FUND. 

16 (a) IN GENERAL.—Section 4002 of the Patient Pro17 tection and Affordable Care Act (42 U.S.C. 300u–11) is 

18 repealed. 

19 (b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 

20 funds made available by such section 4002, the unobli21 gated balance is rescinded. 
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1 SEC. 203. RESCINDING UNOBLIGATED BALANCES FOR CO2 OP PROGRAM. 

3 Of the funds made available under section 1322(g) 

4 of the Patient Protection and Affordable Care Act (42 

5 U.S.C. 18042(g)), the unobligated balance is rescinded. 

6 Subtitle B—Medicaid 

7 SEC. 211. REVISION OF PROVIDER TAX INDIRECT GUAR8 ANTEE THRESHOLD. 

9 Section 1903(w)(4)(C)(ii) of the Social Security Act 

10 (42 U.S.C. 1396b(w)(4)(C)(ii)) is amended by inserting 

11 ‘‘and for portions of fiscal years beginning on or after Oc12 tober 1, 2012,’’ after ‘‘October 1, 2011,’’. 

13 SEC. 212. REBASING OF STATE DSH ALLOTMENTS FOR FIS14 CAL YEAR 2022. 

15 Section 1923(f) of the Social Security Act (42 U.S.C. 

16 1396r–4(f)) is amended— 

17 (1) by redesignating paragraph (9) as para18 graph (10); 

19 (2) in paragraph (3)(A) by striking ‘‘para20 graphs (6), (7), and (8)’’ and inserting ‘‘paragraphs 

21 (6), (7), (8), and (9)’’; and 

22 (3) by inserting after paragraph (8) the fol23 lowing new paragraph: 

24 ‘‘(9) REBASING OF STATE DSH ALLOTMENTS

25 FOR FISCAL YEAR 2022.—With respect to fiscal 

26 2022, for purposes of applying paragraph (3)(A) to 
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1 determine the DSH allotment for a State, the 

2 amount of the DSH allotment for the State under 

3 paragraph (3) for fiscal year 2021 shall be treated 

4 as if it were such amount as reduced under para5 graph (7).’’. 

6 SEC. 213. REPEAL OF MEDICAID AND CHIP MAINTENANCE 

7 OF EFFORT REQUIREMENTS UNDER PPACA. 

8 (a) REPEAL OF PPACA MEDICAID MOE.—Section 

9 1902 of the Social Security Act (42 U.S.C. 1396a) is 

10 amended by striking subsection (gg). 

11 (b) REPEAL OF PPACA CHIP MOE.—Section 

12 2105(d)(3) of the Social Security Act (42 U.S.C. 

13 1397ee(d)(3)) is amended— 

14 (1) by striking subparagraph (A); 

15 (2) by redesignating subparagraphs (B) and 

16 (C) as subparagraphs (A) and (B), respectively; and 

17 (3) in the paragraph heading, by striking 

18 ‘‘CONTINUATION OF ELIGIBILITY STANDARDS FOR

19 CHILDREN UNTIL OCTOBER 1, 2019’’ and inserting 

20 ‘‘CONTINUITY OF COVERAGE’’. 

21 (c) CONFORMING AMENDMENTS.— 

22 (1) Section 1902(a) of the Social Security Act 

23 (42 U.S.C. 1396a(a)) is amended by striking para24 graph (74). 
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1 (2) Effective January 1, 2014, paragraph (14) 

2 of section 1902(e) (as added by section 2002(a) of 

3 Public Law 111–148) is amended by striking the 

4 third sentence of subparagraph (A). 

5 (d) EFFECTIVE DATE.—Except as provided in sub6 section (c)(2), the amendments made by this section shall 

7 take effect on the date of the enactment of this section. 

8 SEC. 214. MEDICAID PAYMENTS TO TERRITORIES. 

9 (a) LIMIT ON PAYMENTS.—Section 1108(g) of the 

10 Social Security Act (42 U.S.C. 1308(g)) is amended— 

11 (1) in paragraph (2)— 

12 (A) by striking ‘‘paragraphs (3) and (5)’’; 

13 and 

14 (B) by inserting ‘‘paragraph (3)’’ after 

15 ‘‘and subject to’’; 

16 (2) in paragraph (4), by striking ‘‘(3), and’’ 

17 and all that follows through ‘‘of this subsection’’ and 

18 inserting ‘‘and (3) of this subsection’’; and 

19 (3) by striking paragraph (5). 

20 (b) FMAP.—The first sentence of section 1905(b) of 

21 the Social Security Act (42 U.S.C. 1396d(b)) is amended 

22 by striking ‘‘shall be 55 percent’’ and inserting ‘‘shall be 

23 50 percent’’. 
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1 SEC. 215. REPEALING BONUS PAYMENTS FOR ENROLL2 MENT UNDER MEDICAID AND CHIP. 

3 (a) IN GENERAL.—Paragraphs (3) and (4) of section 

4 2105(a) of the Social Security Act (42 U.S.C. 1397ee(a)) 

5 are repealed. 

6 (b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 

7 funds made available by section 2105(a)(3) of the Social 

8 Security Act, the unobligated balance is rescinded. 

9 (c) CONFORMING CHANGES.— 

10 (1) AVAILABILITY OF EXCESS FUNDS FOR PER11 FORMANCE BONUSES.—Section 2104(n)(2) of the 

12 Social Security Act (42 U.S.C. 1397dd(n)(2)) is 

13 amended by striking subparagraph (D). 

14 (2) OUTREACH OR COVERAGE BENCHMARKS.— 

15 Section 2111(b)(3) of the Social Security Act (42 

16 U.S.C. 1397kk(b)(3)) is amended— 

17 (A) in subparagraph (A)— 

18 (i) in clause (i), by inserting ‘‘or’’ 

19 after the semicolon at the end; and 

20 (ii) by striking clause (ii); and 

21 (B) by striking subparagraph (C). 

22 TITLE III—FINANCIAL SERVICES 

23 SEC. 301. TABLE OF CONTENTS. 

24 The table of contents for this title is as follows: 

TITLE III—FINANCIAL SERVICES 

Sec. 301. Table of contents. 
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Subtitle A—Orderly Liquidation Fund 

Sec. 311. Repeal of liquidation authority. 

Subtitle B—Home Affordable Modification Program 

Sec. 321. Short title. 

Sec. 322. Congressional findings. 

Sec. 323. Termination of authority. 

Sec. 324. Sense of Congress. 

Subtitle C—Bureau of Consumer Financial Protection 

Sec. 331. Bringing the Bureau of Consumer Financial Protection into the regular appropriations process. 

Subtitle D—Flood Insurance Reform 

Sec. 341. Short title. 

Sec. 342. Extensions. 

Sec. 343. Mandatory purchase. 

Sec. 344. Reforms of coverage terms. 

Sec. 345. Reforms of premium rates. 

Sec. 346. Technical Mapping Advisory Council. 

Sec. 347. FEMA incorporation of new mapping protocols. 

Sec. 348. Treatment of levees. 

Sec. 349. Privatization initiatives. 

Sec. 350. FEMA annual report on insurance program. 

Sec. 351. Mitigation assistance. 

Sec. 352. Notification to homeowners regarding mandatory purchase requirement applicability and rate phase-ins. 

Sec. 353. Notification to members of congress of flood map revisions and updates. 

Sec. 354. Notification and appeal of map changes; notification to communities 

of establishment of flood elevations. 

Sec. 355. Notification to tenants of availability of contents insurance. 

Sec. 356. Notification to policy holders regarding direct management of policy 

by FEMA. 

Sec. 357. Notice of availability of flood insurance and escrow in RESPA good 

faith estimate. 

Sec. 358. Reimbursement for costs incurred by homeowners and communities 

obtaining letters of map amendment or revision. 

Sec. 359. Enhanced communication with certain communities during map updating process. 

Sec. 360. Notification to residents newly included in flood hazard areas. 

Sec. 361. Treatment of swimming pool enclosures outside of hurricane season. 

Sec. 362. Information regarding multiple perils claims. 

Sec. 363. FEMA authority to reject transfer of policies. 

Sec. 364. Appeals. 

Sec. 365. Reserve fund. 

Sec. 366. CDBG eligibility for flood insurance outreach activities and community building code administration grants. 

Sec. 367. Technical corrections. 

Sec. 368. Requiring competition for national flood insurance program policies. 

Sec. 369. Studies of voluntary community-based flood insurance options. 

Sec. 370. Report on inclusion of building codes in floodplain management criteria. 
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Sec. 371. Study on graduated risk. 

Sec. 372. Report on flood-in-progress determination. 

Sec. 373. Study on repaying flood insurance debt. 

Sec. 374. No cause of action. 

Sec. 375. Authority for the corps of engineers to provide specialized or technical 

services. 

Subtitle E—Repeal of the Office of Financial Research 

Sec. 381. Repeal of the Office of Financial Research. 

1 Subtitle A—Orderly Liquidation 

2 Fund 

3 SEC. 311. REPEAL OF LIQUIDATION AUTHORITY. 

4 (a) IN GENERAL.—Title II of the Dodd-Frank Wall 

5 Street Reform and Consumer Protection Act is hereby re6 pealed and any Federal law amended by such title shall, 

7 on and after the date of enactment of this Act, be effective 

8 as if title II of the Dodd-Frank Wall Street Reform and 

9 Consumer Protection Act had not been enacted. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) DODD-FRANK WALL STREET REFORM AND

12 CONSUMER PROTECTION ACT.—The Dodd-Frank 

13 Wall Street Reform and Consumer Protection Act is 

14 amended— 

15 (A) in the table of contents for such Act, 

16 by striking all items relating to title II; 

17 (B) in section 165(d)(6), by striking ‘‘, a 

18 receiver appointed under title II,’’; 

19 (C) in section 716(g), by striking ‘‘or a 

20 covered financial company under title II’’; 
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1 (D) in section 1105(e)(5), by striking 

2 ‘‘amount of any securities issued under that 

3 chapter 31 for such purpose shall be treated in 

4 the same manner as securities issued under sec5 tion 208(n)(5)(E)’’ and inserting ‘‘issuances of 

6 such securities under that chapter 31 for such 

7 purpose shall by treated as public debt trans8 actions of the United States, and the proceeds 

9 from the sale of any obligations acquired by the 

10 Secretary under this paragraph shall be depos11 ited into the Treasury of the United States as 

12 miscellaneous receipts’’; and 

13 (E) in section 1106(c)(2), by amending 

14 subparagraph (A) to read as follows: 

15 ‘‘(A) require the company to file a petition 

16 for bankruptcy under section 301 of title 11, 

17 United States Code; or’’. 

18 (2) FEDERAL DEPOSIT INSURANCE ACT.—Sec19 tion 10(b)(3) of the Federal Deposit Insurance Act 

20 (12 U.S.C. 1820(b)(3)) is amended by striking ‘‘, or 

21 of such nonbank financial company supervised by 

22 the Board of Governors or bank holding company 

23 described in section 165(a) of the Financial Stability 

24 Act of 2010, for the purpose of implementing its au-
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1 thority to provide for orderly liquidation of any such 

2 company under title II of that Act’’. 

3 (3) FEDERAL RESERVE ACT.—Section 13(3) of 

4 the Federal Reserve Act is amended— 

5 (A) in subparagraph (B)— 

6 (i) in clause (ii), by striking ‘‘, resolu7 tion under title II of the Dodd-Frank Wall 

8 Street Reform and Consumer Protection 

9 Act, or’’ and inserting ‘‘or is subject to 

10 resolution under’’; and 

11 (ii) in clause (iii), by striking ‘‘, reso12 lution under title II of the Dodd-Frank 

13 Wall Street Reform and Consumer Protec14 tion Act, or’’ and inserting ‘‘or resolution 

15 under’’; and 

16 (B) by striking subparagraph (E). 

17 Subtitle B—Home Affordable 

18 Modification Program 

19 SEC. 321. SHORT TITLE. 

20 This subtitle may be cited as the ‘‘HAMP Termi21 nation Act of 2012’’. 

22 SEC. 322. CONGRESSIONAL FINDINGS. 

23 The Congress finds the following: 

24 (1) According to the Department of the Treas25 ury— 
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1 (A) the Home Affordable Modification Pro2 gram (HAMP) is designed to ‘‘help as many as 

3 3 to 4 million financially struggling homeowners 

4 avoid foreclosure by modifying loans to a level 

5 that is affordable for borrowers now and sus6 tainable over the long term’’; and 

7 (B) as of February 2012, only 782,609 ac8 tive permanent mortgage modifications were 

9 made under HAMP. 

10 (2) Many homeowners whose HAMP modifica11 tions were canceled suffered because they made fu12 tile payments and some of those homeowners were 

13 even forced into foreclosure. 

14 (3) The Special Inspector General for TARP 

15 reported that HAMP ‘‘benefits only a small portion 

16 of distressed homeowners, offers others little more 

17 than false hope, and in certain cases causes more 

18 harm than good’’. 

19 (4) Approximately $30 billion was obligated by 

20 the Department of the Treasury to HAMP, however, 

21 approximately only $2.54 billion has been disbursed. 

22 (5) Terminating HAMP would save American 

23 taxpayers approximately $2.84 billion, according to 

24 the Congressional Budget Office. 
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1 SEC. 323. TERMINATION OF AUTHORITY. 

2 Section 120 of the Emergency Economic Stabilization 

3 Act of 2008 (12 U.S.C. 5230) is amended by adding at 

4 the end the following new subsection: 

5 ‘‘(c) TERMINATION OF AUTHORITY TO PROVIDE

6 NEW ASSISTANCE UNDER THE HOME AFFORDABLE

7 MODIFICATION PROGRAM.— 

8 ‘‘(1) IN GENERAL.—Except as provided under 

9 paragraph (2), after the date of the enactment of 

10 this subsection the Secretary may not provide any 

11 assistance under the Home Affordable Modification 

12 Program under the Making Home Affordable initia13 tive of the Secretary, authorized under this Act, on 

14 behalf of any homeowner. 

15 ‘‘(2) PROTECTION OF EXISTING OBLIGATIONS

16 ON BEHALF OF HOMEOWNERS ALREADY EXTENDED

17 AN OFFER TO PARTICIPATE IN THE PROGRAM.— 

18 Paragraph (1) shall not apply with respect to assist19 ance provided on behalf of a homeowner who, before 

20 the date of the enactment of this subsection, was ex21 tended an offer to participate in the Home Afford22 able Modification Program on a trial or permanent 

23 basis. 

24 ‘‘(3) DEFICIT REDUCTION.— 

25 ‘‘(A) USE OF UNOBLIGATED FUNDS.—Not26 withstanding any other provision of this title, 
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1 the amounts described in subparagraph (B) 

2 shall not be available after the date of the en3 actment of this subsection for obligation or ex4 penditure under the Home Affordable Modifica5 tion Program of the Secretary, but should be 

6 covered into the General Fund of the Treasury 

7 and should be used only for reducing the budg8 et deficit of the Federal Government. 

9 ‘‘(B) IDENTIFICATION OF UNOBLIGATED

10 FUNDS.—The amounts described in this sub11 paragraph are any amounts made available 

12 under title I of the Emergency Economic Sta13 bilization Act of 2008 that— 

14 ‘‘(i) have been allocated for use, but 

15 not yet obligated as of the date of the en16 actment of this subsection, under the 

17 Home Affordable Modification Program of 

18 the Secretary; and 

19 ‘‘(ii) are not necessary for providing 

20 assistance under such Program on behalf 

21 of homeowners who, pursuant to para22 graph (2), may be provided assistance 

23 after the date of the enactment of this sub24 section. 
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1 ‘‘(4) STUDY OF USE OF PROGRAM BY MEMBERS

2 OF THE ARMED FORCES, VETERANS, AND GOLD

3 STAR RECIPIENTS.— 

4 ‘‘(A) STUDY.—The Secretary shall conduct 

5 a study to determine the extent of usage of the 

6 Home Affordable Modification Program by, and 

7 the impact of such Program on, covered home8 owners. 

9 ‘‘(B) REPORT.—Not later than the expira10 tion of the 90-day period beginning on the date 

11 of the enactment of this subsection, the Sec12 retary shall submit to the Congress a report 

13 setting forth the results of the study under sub14 paragraph (A) and identifying best practices, 

15 derived from studying the Home Affordable 

16 Modification Program, that could be applied to 

17 existing mortgage assistance programs available 

18 to covered homeowners. 

19 ‘‘(C) COVERED HOMEOWNER.—For pur20 poses of this subsection, the term ‘covered 

21 homeowner’ means a homeowner who is— 

22 ‘‘(i) a member of the Armed Forces of 

23 the United States on active duty or the 

24 spouse or parent of such a member; 
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1 ‘‘(ii) a veteran, as such term is de2 fined in section 101 of title 38, United 

3 States Code; or 

4 ‘‘(iii) eligible to receive a Gold Star 

5 lapel pin under section 1126 of title 10, 

6 United States Code, as a widow, parent, or 

7 next of kin of a member of the Armed 

8 Forces person who died in a manner de9 scribed in subsection (a) of such section. 

10 ‘‘(5) PUBLICATION OF MEMBER AVAILABILITY

11 FOR ASSISTANCE.—Not later than 5 days after the 

12 date of the enactment of this subsection, the Sec13 retary of the Treasury shall publish to its Website 

14 on the World Wide Web in a prominent location, 

15 large point font, and boldface type the following 

16 statement: ‘The Home Affordable Modification Pro17 gram (HAMP) has been terminated. If you are hav18 ing trouble paying your mortgage and need help con19 tacting your lender or servicer for purposes of nego20 tiating or acquiring a loan modification, please con21 tact your Member of Congress to assist you in con22 tacting your lender or servicer for the purpose of ne23 gotiating or acquiring a loan modification.’. 

24 ‘‘(6) NOTIFICATION TO HAMP APPLICANTS RE25 QUIRED.—Not later than 30 days after the date of 
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1 the enactment of this subsection, the Secretary of 

2 the Treasury shall inform each individual who ap3 plied for the Home Affordable Modification Program 

4 and will not be considered for a modification under 

5 such Program due to termination of such Program 

6 under this subsection— 

7 ‘‘(A) that such Program has been termi8 nated; 

9 ‘‘(B) that loan modifications under such 

10 Program are no longer available; 

11 ‘‘(C) of the name and contact information 

12 of such individual’s Member of Congress; and 

13 ‘‘(D) that the individual should contact his 

14 or her Member of Congress to assist the indi15 vidual in contacting the individual’s lender or 

16 servicer for the purpose of negotiating or ac17 quiring a loan modification.’’. 

18 SEC. 324. SENSE OF CONGRESS. 

19 The Congress encourages banks to work with home20 owners to provide loan modifications to those that are eli21 gible. The Congress also encourages banks to work and 

22 assist homeowners and prospective homeowners with fore23 closure prevention programs and information on loan 

24 modifications. 
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1 Subtitle C—Bureau of Consumer 

2 Financial Protection 

3 SEC. 331. BRINGING THE BUREAU OF CONSUMER FINAN4 CIAL PROTECTION INTO THE REGULAR AP5 PROPRIATIONS PROCESS. 

6 Section 1017 of the Consumer Financial Protection 

7 Act of 2010 is amended— 

8 (1) in subsection (a)— 

9 (A) by amending the heading of such sub10 section to read as follows: ‘‘BUDGET, FINAN11 CIAL MANAGEMENT, AND AUDIT.—’’; 

12 (B) by striking paragraphs (1), (2), and 

13 (3); 

14 (C) by redesignating paragraphs (4) and 

15 (5) as paragraphs (1) and (2), respectively; and 

16 (D) by striking subparagraphs (E) and (F) 

17 of paragraph (1), as so redesignated; 

18 (2) by striking subsections (b), (c), and (d); 

19 (3) by redesignating subsection (e) as sub20 section (b); and 

21 (4) in subsection (b), as so redesignated— 

22 (A) by striking paragraphs (1), (2), and 

23 (3) and inserting the following: 

24 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

25 There is authorized to be appropriated 
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1 $200,000,000 to carry out this title for each of fiscal 

2 years 2012 and 2013.’’; and 

3 (B) by redesignating paragraph (4) as 

4 paragraph (2). 

5 Subtitle D—Flood Insurance 

6 Reform 

7 SEC. 341. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Flood Insurance 

9 Reform Act of 2012’’. 

10 SEC. 342. EXTENSIONS. 

11 (a) EXTENSION OF PROGRAM.—Section 1319 of the 

12 National Flood Insurance Act of 1968 (42 U.S.C. 4026) 

13 is amended by striking ‘‘the earlier of the date of the en14 actment into law of an Act that specifically amends the 

15 date specified in this section or May 31, 2012’’ and insert16 ing ‘‘September 30, 2016’’. 

17 (b) EXTENSION OF FINANCING.—Section 1309(a) of 

18 such Act (42 U.S.C. 4016(a)) is amended by striking ‘‘the 

19 earlier of the date of the enactment into law of an Act 

20 that specifically amends the date specified in this section 

21 or May 31, 2012’’ and inserting ‘‘September 30, 2016’’. 

22 SEC. 343. MANDATORY PURCHASE. 

23 (a) AUTHORITY TO TEMPORARILY SUSPEND MANDA24 TORY PURCHASE REQUIREMENT.— 
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1 (1) IN GENERAL.—Section 102 of the Flood 

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

3 is amended by adding at the end the following new 

4 subsection: 

5 ‘‘(i) AUTHORITY TO TEMPORARILY SUSPEND MAN6 DATORY PURCHASE REQUIREMENT.— 

7 ‘‘(1) FINDING BY ADMINISTRATOR THAT AREA

8 IS AN ELIGIBLE AREA.—For any area, upon a re9 quest submitted to the Administrator by a local gov10 ernment authority having jurisdiction over any por11 tion of the area, the Administrator shall make a 

12 finding of whether the area is an eligible area under 

13 paragraph (3). If the Administrator finds that such 

14 area is an eligible area, the Administrator shall, in 

15 the discretion of the Administrator, designate a pe16 riod during which such finding shall be effective, 

17 which shall not be longer in duration than 12 

18 months. 

19 ‘‘(2) SUSPENSION OF MANDATORY PURCHASE

20 REQUIREMENT.—If the Administrator makes a find21 ing under paragraph (1) that an area is an eligible 

22 area under paragraph (3), during the period speci23 fied in the finding, the designation of such eligible 

24 area as an area having special flood hazards shall 

25 not be effective for purposes of subsections (a), (b), 
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1 and (e) of this section, and section 202(a) of this 

2 Act. Nothing in this paragraph may be construed to 

3 prevent any lender, servicer, regulated lending insti4 tution, Federal agency lender, the Federal National 

5 Mortgage Association, or the Federal Home Loan 

6 Mortgage Corporation, at the discretion of such enti7 ty, from requiring the purchase of flood insurance 

8 coverage in connection with the making, increasing, 

9 extending, or renewing of a loan secured by im10 proved real estate or a mobile home located or to be 

11 located in such eligible area during such period or 

12 a lender or servicer from purchasing coverage on be13 half of a borrower pursuant to subsection (e). 

14 ‘‘(3) ELIGIBLE AREAS.—An eligible area under 

15 this paragraph is an area that is designated or will, 

16 pursuant to any issuance, revision, updating, or 

17 other change in flood insurance maps that takes ef18 fect on or after the date of the enactment of the 

19 Flood Insurance Reform Act of 2012, become des20 ignated as an area having special flood hazards and 

21 that meets any one of the following 3 requirements: 

22 ‘‘(A) AREAS WITH NO HISTORY OF SPE23 CIAL FLOOD HAZARDS.—The area does not in24 clude any area that has ever previously been 
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1 designated as an area having special flood haz2 ards. 

3 ‘‘(B) AREAS WITH FLOOD PROTECTION

4 SYSTEMS UNDER IMPROVEMENTS.—The area 

5 was intended to be protected by a flood protec6 tion system— 

7 ‘‘(i) that has been decertified, or is re8 quired to be certified, as providing protec9 tion for the 100-year frequency flood 

10 standard; 

11 ‘‘(ii) that is being improved, con12 structed, or reconstructed; and 

13 ‘‘(iii) for which the Administrator has 

14 determined measurable progress toward 

15 completion of such improvement, construc16 tion, reconstruction is being made and to17 ward securing financial commitments suffi18 cient to fund such completion. 

19 ‘‘(C) AREAS FOR WHICH APPEAL HAS

20 BEEN FILED.—An area for which a community 

21 has appealed designation of the area as having 

22 special flood hazards in a timely manner under 

23 section 1363. 

24 ‘‘(4) EXTENSION OF DELAY.—Upon a request 

25 submitted by a local government authority having 
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1 jurisdiction over any portion of the eligible area, the 

2 Administrator may extend the period during which a 

3 finding under paragraph (1) shall be effective, ex4 cept that— 

5 ‘‘(A) each such extension under this para6 graph shall not be for a period exceeding 12 

7 months; and 

8 ‘‘(B) for any area, the cumulative number 

9 of such extensions may not exceed 2. 

10 ‘‘(5) ADDITIONAL EXTENSION FOR COMMU11 NITIES MAKING MORE THAN ADEQUATE PROGRESS

12 ON FLOOD PROTECTION SYSTEM.— 

13 ‘‘(A) EXTENSION.— 

14 ‘‘(i) AUTHORITY.—Except as provided 

15 in subparagraph (B), in the case of an eli16 gible area for which the Administrator has, 

17 pursuant to paragraph (4), extended the 

18 period of effectiveness of the finding under 

19 paragraph (1) for the area, upon a request 

20 submitted by a local government authority 

21 having jurisdiction over any portion of the 

22 eligible area, if the Administrator finds 

23 that more than adequate progress has been 

24 made on the construction of a flood protec25 tion system for such area, as determined in 
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1 accordance with the last sentence of sec2 tion 1307(e) of the National Flood Insur3 ance Act of 1968 (42 U.S.C. 4014(e)), the 

4 Administrator may, in the discretion of the 

5 Administrator, further extend the period 

6 during which the finding under paragraph 

7 (1) shall be effective for such area for an 

8 additional 12 months. 

9 ‘‘(ii) LIMIT.— For any eligible area, 

10 the cumulative number of extensions under 

11 this subparagraph may not exceed 2. 

12 ‘‘(B) EXCLUSION FOR NEW MORTGAGES.— 

13 ‘‘(i) EXCLUSION.—Any extension 

14 under subparagraph (A) of this paragraph 

15 of a finding under paragraph (1) shall not 

16 be effective with respect to any excluded 

17 property after the origination, increase, ex18 tension, or renewal of the loan referred to 

19 in clause (ii)(II) for the property. 

20 ‘‘(ii) EXCLUDED PROPERTIES.—For 

21 purposes of this subparagraph, the term 

22 ‘excluded property’ means any improved 

23 real estate or mobile home— 

24 ‘‘(I) that is located in an eligible 

25 area; and 
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1 ‘‘(II) for which, during the period 

2 that any extension under subpara3 graph (A) of this paragraph of a find4 ing under paragraph (1) is otherwise 

5 in effect for the eligible area in which 

6 such property is located— 

7 ‘‘(aa) a loan that is secured 

8 by the property is originated; or 

9 ‘‘(bb) any existing loan that 

10 is secured by the property is in11 creased, extended, or renewed. 

12 ‘‘(6) RULE OF CONSTRUCTION.—Nothing in 

13 this subsection may be construed to affect the appli14 cability of a designation of any area as an area hav15 ing special flood hazards for purposes of the avail16 ability of flood insurance coverage, criteria for land 

17 management and use, notification of flood hazards, 

18 eligibility for mitigation assistance, or any other pur19 pose or provision not specifically referred to in para20 graph (2). 

21 ‘‘(7) REPORTS.—The Administrator shall, in 

22 each annual report submitted pursuant to section 

23 1320, include information identifying each finding 

24 under paragraph (1) by the Administrator during 

25 the preceding year that an area is an area having 
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1 special flood hazards, the basis for each such find2 ing, any extensions pursuant to paragraph (4) of the 

3 periods of effectiveness of such findings, and the 

4 reasons for such extensions.’’. 

5 (2) NO REFUNDS.—Nothing in this subsection 

6 or the amendments made by this subsection may be 

7 construed to authorize or require any payment or re8 fund for flood insurance coverage purchased for any 

9 property that covered any period during which such 

10 coverage is not required for the property pursuant to 

11 the applicability of the amendment made by para12 graph (1). 

13 (b) TERMINATION OF FORCE-PLACED INSURANCE.— 

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

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

16 (1) in paragraph (2), by striking ‘‘insurance.’’ 

17 and inserting ‘‘insurance, including premiums or 

18 fees incurred for coverage beginning on the date on 

19 which flood insurance coverage lapsed or did not 

20 provide a sufficient coverage amount.’’; 

21 (2) by redesignating paragraphs (3) and (4) as 

22 paragraphs (5) and 6), respectively; and 

23 (3) by inserting after paragraph (2) the fol24 lowing new paragraphs: 
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1 ‘‘(3) TERMINATION OF FORCE-PLACED INSUR2 ANCE.—Within 30 days of receipt by the lender or 

3 servicer of a confirmation of a borrower’s existing 

4 flood insurance coverage, the lender or servicer 

5 shall— 

6 ‘‘(A) terminate the force-placed insurance; 

7 and 

8 ‘‘(B) refund to the borrower all force9 placed insurance premiums paid by the bor10 rower during any period during which the bor11 rower’s flood insurance coverage and the force12 placed flood insurance coverage were each in ef13 fect, and any related fees charged to the bor14 rower with respect to the force-placed insurance 

15 during such period. 

16 ‘‘(4) SUFFICIENCY OF DEMONSTRATION.—For 

17 purposes of confirming a borrower’s existing flood 

18 insurance coverage, a lender or servicer for a loan 

19 shall accept from the borrower an insurance policy 

20 declarations page that includes the existing flood in21 surance policy number and the identity of, and con22 tact information for, the insurance company or 

23 agent.’’. 

24 (c) USE OF PRIVATE INSURANCE TO SATISFY MAN25 DATORY PURCHASE REQUIREMENT.—Section 102(b) of 
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1 the Flood Disaster Protection Act of 1973 (42 U.S.C. 

2 4012a(b)) is amended— 

3 (1) in paragraph (1)— 

4 (A) by striking ‘‘lending institutions not to 

5 make’’ and inserting ‘‘lending institutions— 

6 ‘‘(A) not to make’’; 

7 (B) in subparagraph (A), as designated by 

8 subparagraph (A) of this paragraph, by striking 

9 ‘‘less.’’ and inserting ‘‘less; and’’; and 

10 (C) by adding at the end the following new 

11 subparagraph: 

12 ‘‘(B) to accept private flood insurance as 

13 satisfaction of the flood insurance coverage re14 quirement under subparagraph (A) if the cov15 erage provided by such private flood insurance 

16 meets the requirements for coverage under such 

17 subparagraph.’’; 

18 (2) in paragraph (2), by inserting after ‘‘pro19 vided in paragraph (1).’’ the following new sentence: 

20 ‘‘Each Federal agency lender shall accept private 

21 flood insurance as satisfaction of the flood insurance 

22 coverage requirement under the preceding sentence 

23 if the flood insurance coverage provided by such pri24 vate flood insurance meets the requirements for cov25 erage under such sentence.’’; 
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1 (3) in paragraph (3), in the matter following 

2 subparagraph (B), by adding at the end the fol3 lowing new sentence: ‘‘The Federal National Mort4 gage Association and the Federal Home Loan Mort5 gage Corporation shall accept private flood insurance 

6 as satisfaction of the flood insurance coverage re7 quirement under the preceding sentence if the flood 

8 insurance coverage provided by such private flood in9 surance meets the requirements for coverage under 

10 such sentence.’’; and 

11 (4) by adding at the end the following new 

12 paragraph: 

13 ‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.— 

14 In this subsection, the term ‘private flood insurance’ 

15 means a contract for flood insurance coverage al16 lowed for sale under the laws of any State.’’. 

17 SEC. 344. REFORMS OF COVERAGE TERMS. 

18 (a) MINIMUM DEDUCTIBLES FOR CLAIMS.—Section 

19 1312 of the National Flood Insurance Act of 1968 (42 

20 U.S.C. 4019) is amended— 

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

22 the following: ‘‘(a) IN GENERAL.—The Adminis23 trator is’’; and 

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

25 ‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 
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1 ‘‘(1) SUBSIDIZED RATE PROPERTIES.—For any 

2 structure that is covered by flood insurance under 

3 this title, and for which the chargeable rate for such 

4 coverage is less than the applicable estimated risk 

5 premium rate under section 1307(a)(1) for the area 

6 (or subdivision thereof) in which such structure is 

7 located, the minimum annual deductible for damage 

8 to or loss of such structure shall be $2,000. 

9 ‘‘(2) ACTUARIAL RATE PROPERTIES.—For any 

10 structure that is covered by flood insurance under 

11 this title, for which the chargeable rate for such cov12 erage is not less than the applicable estimated risk 

13 premium rate under section 1307(a)(1) for the area 

14 (or subdivision thereof) in which such structure is 

15 located, the minimum annual deductible for damage 

16 to or loss of such structure shall be $1,000.’’. 

17 (b) CLARIFICATION OF RESIDENTIAL AND COMMER18 CIAL COVERAGE LIMITS.—Section 1306(b) of the Na19 tional Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) 

20 is amended— 

21 (1) in paragraph (2)— 

22 (A) by striking ‘‘in the case of any residen23 tial property’’ and inserting ‘‘in the case of any 

24 residential building designed for the occupancy 

25 of from one to four families’’; and 
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1 (B) by striking ‘‘shall be made available to 

2 every insured upon renewal and every applicant 

3 for insurance so as to enable such insured or 

4 applicant to receive coverage up to a total 

5 amount (including such limits specified in para6 graph (1)(A)(i)) of $250,000’’ and inserting 

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

8 single such building, up to an aggregate liability 

9 (including such limits specified in paragraph 

10 (1)(A)(i)) of $250,000’’; and 

11 (2) in paragraph (4)— 

12 (A) by striking ‘‘in the case of any nonresi13 dential property, including churches,’’ and in14 serting ‘‘in the case of any nonresidential build15 ing, including a church,’’; and 

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

17 every insured upon renewal and every applicant 

18 for insurance, in respect to any single structure, 

19 up to a total amount (including such limit spec20 ified in subparagraph (B) or (C) of paragraph 

21 (1), as applicable) of $500,000 for each struc22 ture and $500,000 for any contents related to 

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

24 available with respect to any single such build25 ing, up to an aggregate liability (including such 
39 

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

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

3 coverage shall be made available up to a total 

4 of $500,000 aggregate liability for contents 

5 owned by the building owner and $500,000 ag6 gregate liability for each unit within the build7 ing for contents owned by the tenant’’. 

8 (c) INDEXING OF MAXIMUM COVERAGE LIMITS.— 

9 Subsection (b) of section 1306 of the National Flood In10 surance Act of 1968 (42 U.S.C. 4013(b)) is amended— 

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

12 end; 

13 (2) in paragraph (5), by striking the period at 

14 the end and inserting ‘‘; and’’; 

15 (3) by redesignating paragraph (5) as para16 graph (7); and 

17 (4) by adding at the end the following new 

18 paragraph: 

19 ‘‘(8) each of the dollar amount limitations 

20 under paragraphs (2), (3), (4), (5), and (6) shall be 

21 adjusted effective on the date of the enactment of 

22 the Flood Insurance Reform Act of 2012, such ad23 justments shall be calculated using the percentage 

24 change, over the period beginning on September 30, 

25 1994, and ending on such date of enactment, in 
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1 such inflationary index as the Administrator shall, 

2 by regulation, specify, and the dollar amount of such 

3 adjustment shall be rounded to the next lower dollar; 

4 and the Administrator shall cause to be published in 

5 the Federal Register the adjustments under this 

6 paragraph to such dollar amount limitations; except 

7 that in the case of coverage for a property that is 

8 made available, pursuant to this paragraph, in an 

9 amount that exceeds the limitation otherwise appli10 cable to such coverage as specified in paragraph (2), 

11 (3), (4), (5), or (6), the total of such coverage shall 

12 be made available only at chargeable rates that are 

13 not less than the estimated premium rates for such 

14 coverage determined in accordance with section 

15 1307(a)(1).’’. 

16 (d) OPTIONAL COVERAGE FOR LOSS OF USE OF PER17 SONAL RESIDENCE AND BUSINESS INTERRUPTION.—Sub18 section (b) of section 1306 of the National Flood Insur19 ance Act of 1968 (42 U.S.C. 4013(b)), as amended by 

20 the preceding provisions of this section, is further amend21 ed by inserting after paragraph (4) the following new 

22 paragraphs: 

23 ‘‘(5) the Administrator may provide that, in the 

24 case of any residential property, each renewal or new 

25 contract for flood insurance coverage may provide 
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1 not more than $5,000 aggregate liability per dwell2 ing unit for any necessary increases in living ex3 penses incurred by the insured when losses from a 

4 flood make the residence unfit to live in, except 

5 that— 

6 ‘‘(A) purchase of such coverage shall be at 

7 the option of the insured; 

8 ‘‘(B) any such coverage shall be made 

9 available only at chargeable rates that are not 

10 less than the estimated premium rates for such 

11 coverage determined in accordance with section 

12 1307(a)(1); and 

13 ‘‘(C) the Administrator may make such 

14 coverage available only if the Administrator 

15 makes a determination and causes notice of 

16 such determination to be published in the Fed17 eral Register that— 

18 ‘‘(i) a competitive private insurance 

19 market for such coverage does not exist; 

20 and 

21 ‘‘(ii) the national flood insurance pro22 gram has the capacity to make such cov23 erage available without borrowing funds 

24 from the Secretary of the Treasury under 

25 section 1309 or otherwise; 
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1 ‘‘(6) the Administrator may provide that, in the 

2 case of any commercial property or other residential 

3 property, including multifamily rental property, cov4 erage for losses resulting from any partial or total 

5 interruption of the insured’s business caused by 

6 damage to, or loss of, such property from a flood 

7 may be made available to every insured upon re8 newal and every applicant, up to a total amount of 

9 $20,000 per property, except that— 

10 ‘‘(A) purchase of such coverage shall be at 

11 the option of the insured; 

12 ‘‘(B) any such coverage shall be made 

13 available only at chargeable rates that are not 

14 less than the estimated premium rates for such 

15 coverage determined in accordance with section 

16 1307(a)(1); and 

17 ‘‘(C) the Administrator may make such 

18 coverage available only if the Administrator 

19 makes a determination and causes notice of 

20 such determination to be published in the Fed21 eral Register that— 

22 ‘‘(i) a competitive private insurance 

23 market for such coverage does not exist; 

24 and 
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1 ‘‘(ii) the national flood insurance pro2 gram has the capacity to make such cov3 erage available without borrowing funds 

4 from the Secretary of the Treasury under 

5 section 1309 or otherwise;’’. 

6 (e) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR

7 RESIDENTIAL PROPERTIES.—Section 1306 of the Na8 tional Flood Insurance Act of 1968 (42 U.S.C. 4013) is 

9 amended by adding at the end the following new sub10 section: 

11 ‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR

12 RESIDENTIAL PROPERTIES.— 

13 ‘‘(1) AUTHORITY.—In addition to any other 

14 terms and conditions under subsection (a), such reg15 ulations shall provide that, in the case of any resi16 dential property, premiums for flood insurance cov17 erage made available under this title for such prop18 erty may be paid in installments. 

19 ‘‘(2) LIMITATIONS.—In implementing the au20 thority under paragraph (1), the Administrator may 

21 establish increased chargeable premium rates and 

22 surcharges, and deny coverage and establish such 

23 other sanctions, as the Administrator considers nec24 essary to ensure that insureds purchase, pay for, 

25 and maintain coverage for the full term of a contract 
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1 for flood insurance coverage or to prevent insureds 

2 from purchasing coverage only for periods during a 

3 year when risk of flooding is comparatively higher or 

4 canceling coverage for periods when such risk is 

5 comparatively lower.’’. 

6 (f) EFFECTIVE DATE OF POLICIES COVERING PROP7 ERTIES AFFECTED BY FLOODS IN PROGRESS.—Para8 graph (1) of section 1306(c) of the National Flood Insur9 ance Act of 1968 (42 U.S.C. 4013(c)) is amended by add10 ing after the period at the end the following: ‘‘With respect 

11 to any flood that has commenced or is in progress before 

12 the expiration of such 30-day period, such flood insurance 

13 coverage for a property shall take effect upon the expira14 tion of such 30-day period and shall cover damage to such 

15 property occurring after the expiration of such period that 

16 results from such flood, but only if the property has not 

17 suffered damage or loss as a result of such flood before 

18 the expiration of such 30-day period.’’. 

19 SEC. 345. REFORMS OF PREMIUM RATES. 

20 (a) INCREASE IN ANNUAL LIMITATION ON PREMIUM

21 INCREASES.—Section 1308(e) of the National Flood In22 surance Act of 1968 (42 U.S.C. 4015(e)) is amended by 

23 striking ‘‘10 percent’’ and inserting ‘‘20 percent’’. 

24 (b) PHASE-IN OF RATES FOR CERTAIN PROPERTIES

25 IN NEWLY MAPPED AREAS.— 
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1 (1) IN GENERAL.—Section 1308 of the Na2 tional Flood Insurance Act of 1968 (42 U.S.C. 

3 4015) is amended— 

4 (A) in subsection (a), in the matter pre5 ceding paragraph (1), by inserting ‘‘or notice’’ 

6 after ‘‘prescribe by regulation’’; 

7 (B) in subsection (c), by inserting ‘‘and 

8 subsection (g)’’ before the first comma; and 

9 (C) by adding at the end the following new 

10 subsection: 

11 ‘‘(g) 5-YEAR PHASE-IN OF FLOOD INSURANCE

12 RATES FOR CERTAIN PROPERTIES IN NEWLY MAPPED

13 AREAS.— 

14 ‘‘(1) 5-YEAR PHASE-IN PERIOD.—Notwith15 standing subsection (c) or any other provision of law 

16 relating to chargeable risk premium rates for flood 

17 insurance coverage under this title, in the case of 

18 any area that was not previously designated as an 

19 area having special flood hazards and that, pursuant 

20 to any issuance, revision, updating, or other change 

21 in flood insurance maps, becomes designated as such 

22 an area, during the 5-year period that begins, except 

23 as provided in paragraph (2), upon the date that 

24 such maps, as issued, revised, updated, or otherwise 

25 changed, become effective, the chargeable premium 
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1 rate for flood insurance under this title with respect 

2 to any covered property that is located within such 

3 area shall be the rate described in paragraph (3). 

4 ‘‘(2) APPLICABILITY TO PREFERRED RISK RATE

5 AREAS.—In the case of any area described in para6 graph (1) that consists of or includes an area that, 

7 as of date of the effectiveness of the flood insurance 

8 maps for such area referred to in paragraph (1) as 

9 so issued, revised, updated, or changed, is eligible 

10 for any reason for preferred risk rate method pre11 miums for flood insurance coverage and was eligible 

12 for such premiums as of the enactment of the Flood 

13 Insurance Reform Act of 2012, the 5-year period re14 ferred to in paragraph (1) for such area eligible for 

15 preferred risk rate method premiums shall begin 

16 upon the expiration of the period during which such 

17 area is eligible for such preferred risk rate method 

18 premiums. 

19 ‘‘(3) PHASE-IN OF FULL ACTUARIAL RATES.— 

20 With respect to any area described in paragraph (1), 

21 the chargeable risk premium rate for flood insurance 

22 under this title for a covered property that is located 

23 in such area shall be— 

24 ‘‘(A) for the first year of the 5-year period 

25 referred to in paragraph (1), the greater of— 
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1 ‘‘(i) 20 percent of the chargeable risk 

2 premium rate otherwise applicable under 

3 this title to the property; and 

4 ‘‘(ii) in the case of any property that, 

5 as of the beginning of such first year, is el6 igible for preferred risk rate method pre7 miums for flood insurance coverage, such 

8 preferred risk rate method premium for 

9 the property; 

10 ‘‘(B) for the second year of such 5-year pe11 riod, 40 percent of the chargeable risk premium 

12 rate otherwise applicable under this title to the 

13 property; 

14 ‘‘(C) for the third year of such 5-year pe15 riod, 60 percent of the chargeable risk premium 

16 rate otherwise applicable under this title to the 

17 property; 

18 ‘‘(D) for the fourth year of such 5-year pe19 riod, 80 percent of the chargeable risk premium 

20 rate otherwise applicable under this title to the 

21 property; and 

22 ‘‘(E) for the fifth year of such 5-year pe23 riod, 100 percent of the chargeable risk pre24 mium rate otherwise applicable under this title 

25 to the property. 
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1 ‘‘(4) COVERED PROPERTIES.—For purposes of 

2 the subsection, the term ‘covered property’ means 

3 any residential property occupied by its owner or a 

4 bona fide tenant as a primary residence.’’. 

5 (2) REGULATION OR NOTICE.—The Adminis6 trator of the Federal Emergency Management Agen7 cy shall issue an interim final rule or notice to im8 plement this subsection and the amendments made 

9 by this subsection as soon as practicable after the 

10 date of the enactment of this Act. 

11 (c) PHASE-IN OF ACTUARIAL RATES FOR CERTAIN

12 PROPERTIES.— 

13 (1) IN GENERAL.—Section 1308(c) of the Na14 tional Flood Insurance Act of 1968 (42 U.S.C. 

15 4015(c)) is amended— 

16 (A) by redesignating paragraph (2) as 

17 paragraph (7); and 

18 (B) by inserting after paragraph (1) the 

19 following new paragraphs: 

20 ‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi21 dential property. 

22 ‘‘(3) SECOND HOMES AND VACATION HOMES.— 

23 Any residential property that is not the primary res24 idence of any individual. 
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1 ‘‘(4) HOMES SOLD TO NEW OWNERS.—Any sin2 gle family property that— 

3 ‘‘(A) has been constructed or substantially 

4 improved and for which such construction or 

5 improvement was started, as determined by the 

6 Administrator, before December 31, 1974, or 

7 before the effective date of the initial rate map 

8 published by the Administrator under para9 graph (2) of section 1360(a) for the area in 

10 which such property is located, whichever is 

11 later; and 

12 ‘‘(B) is purchased after the effective date 

13 of this paragraph, pursuant to section 

14 345(c)(3)(A) of the Flood Insurance Reform 

15 Act of 2012. 

16 ‘‘(5) HOMES DAMAGED OR IMPROVED.—Any 

17 property that, on or after the date of the enactment 

18 of the Flood Insurance Reform Act of 2012, has ex19 perienced or sustained— 

20 ‘‘(A) substantial flood damage exceeding 

21 50 percent of the fair market value of such 

22 property; or 

23 ‘‘(B) substantial improvement exceeding 

24 30 percent of the fair market value of such 

25 property. 
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1 ‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se2 vere repetitive loss property (as such term is defined 

3 in section 1366(j)).’’. 

4 (2) TECHNICAL AMENDMENTS.—Section 1308 

5 of the National Flood Insurance Act of 1968 (42 

6 U.S.C. 4015) is amended— 

7 (A) in subsection (c)— 

8 (i) in the matter preceding paragraph 

9 (1), by striking ‘‘the limitations provided 

10 under paragraphs (1) and (2)’’ and insert11 ing ‘‘subsection (e)’’; and 

12 (ii) in paragraph (1), by striking ‘‘, 

13 except’’ and all that follows through ‘‘sub14 section (e)’’; and 

15 (B) in subsection (e), by striking ‘‘para16 graph (2) or (3)’’ and inserting ‘‘paragraph 

17 (7)’’. 

18 (3) EFFECTIVE DATE AND TRANSITION.— 

19 (A) EFFECTIVE DATE.—The amendments 

20 made by paragraphs (1) and (2) shall apply be21 ginning upon the expiration of the 12-month 

22 period that begins on the date of the enactment 

23 of this Act, except as provided in subparagraph 

24 (B) of this paragraph. 
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1 (B) TRANSITION FOR PROPERTIES COV2 ERED BY FLOOD INSURANCE UPON EFFECTIVE

3 DATE.— 

4 (i) INCREASE OF RATES OVER TIME.— 

5 In the case of any property described in 

6 paragraph (2), (3), (4), (5), or (6) of sec7 tion 1308(c) of the National Flood Insur8 ance Act of 1968, as amended by para9 graph (1) of this subsection, that, as of the 

10 effective date under subparagraph (A) of 

11 this paragraph, is covered under a policy 

12 for flood insurance made available under 

13 the national flood insurance program for 

14 which the chargeable premium rates are 

15 less than the applicable estimated risk pre16 mium rate under section 1307(a)(1) of 

17 such Act for the area in which the prop18 erty is located, the Administrator of the 

19 Federal Emergency Management Agency 

20 shall increase the chargeable premium 

21 rates for such property over time to such 

22 applicable estimated risk premium rate 

23 under section 1307(a)(1). 

24 (ii) AMOUNT OF ANNUAL INCREASE.— 

25 Such increase shall be made by increasing 
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1 the chargeable premium rates for the prop2 erty (after application of any increase in 

3 the premium rates otherwise applicable to 

4 such property), once during the 12-month 

5 period that begins upon the effective date 

6 under subparagraph (A) of this paragraph 

7 and once every 12 months thereafter until 

8 such increase is accomplished, by 20 per9 cent (or such lesser amount as may be nec10 essary so that the chargeable rate does not 

11 exceed such applicable estimated risk pre12 mium rate or to comply with clause (iii)). 

13 (iii) PROPERTIES SUBJECT TO PHASE14 IN AND ANNUAL INCREASES.—In the case 

15 of any pre-FIRM property (as such term is 

16 defined in section 578(b) of the National 

17 Flood Insurance Reform Act of 1974), the 

18 aggregate increase, during any 12-month 

19 period, in the chargeable premium rate for 

20 the property that is attributable to this 

21 subparagraph or to an increase described 

22 in section 1308(e) of the National Flood 

23 Insurance Act of 1968 may not exceed 20 

24 percent. 
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1 (iv) FULL ACTUARIAL RATES.—The 

2 provisions of paragraphs (2), (3), (4), (5), 

3 and (6) of such section 1308(c) shall apply 

4 to such a property upon the accomplish5 ment of the increase under this subpara6 graph and thereafter. 

7 (d) PROHIBITION OF EXTENSION OF SUBSIDIZED

8 RATES TO LAPSED POLICIES.—Section 1308 of the Na9 tional Flood Insurance Act of 1968 (42 U.S.C. 4015), as 

10 amended by the preceding provisions of this subtitle, is 

11 further amended— 

12 (1) in subsection (e), by inserting ‘‘or sub13 section (h)’’ after ‘‘subsection (c)’’; and 

14 (2) by adding at the end the following new sub15 section: 

16 ‘‘(h) PROHIBITION OF EXTENSION OF SUBSIDIZED

17 RATES TO LAPSED POLICIES.—Notwithstanding any 

18 other provision of law relating to chargeable risk premium 

19 rates for flood insurance coverage under this title, the Ad20 ministrator shall not provide flood insurance coverage 

21 under this title for any property for which a policy for 

22 such coverage for the property has previously lapsed in 

23 coverage as a result of the deliberate choice of the holder 

24 of such policy, at a rate less than the applicable estimated 
54 

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1 risk premium rates for the area (or subdivision thereof) 

2 in which such property is located.’’. 

3 (e) RECOGNITION OF STATE AND LOCAL FUNDING

4 FOR CONSTRUCTION, RECONSTRUCTION, AND IMPROVE5 MENT OF FLOOD PROTECTION SYSTEMS IN DETERMINA6 TION OF RATES.— 

7 (1) IN GENERAL.—Section 1307 of the Na8 tional Flood Insurance Act of 1968 (42 U.S.C. 

9 4014) is amended— 

10 (A) in subsection (e)— 

11 (i) in the first sentence, by striking 

12 ‘‘construction of a flood protection system’’ 

13 and inserting ‘‘construction, reconstruc14 tion, or improvement of a flood protection 

15 system (without respect to the level of Fed16 eral investment or participation)’’; and 

17 (ii) in the second sentence— 

18 (I) by striking ‘‘construction of a 

19 flood protection system’’ and inserting 

20 ‘‘construction, reconstruction, or im21 provement of a flood protection sys22 tem’’; and 

23 (II) by inserting ‘‘based on the 

24 present value of the completed sys25 tem’’ after ‘‘has been expended’’; and 
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1 (B) in subsection (f)— 

2 (i) in the first sentence in the matter 

3 preceding paragraph (1), by inserting 

4 ‘‘(without respect to the level of Federal 

5 investment or participation)’’ before the 

6 period at the end; 

7 (ii) in the third sentence in the matter 

8 preceding paragraph (1), by inserting ‘‘, 

9 whether coastal or riverine,’’ after ‘‘special 

10 flood hazard’’; and 

11 (iii) in paragraph (1), by striking ‘‘a 

12 Federal agency in consultation with the 

13 local project sponsor’’ and inserting ‘‘the 

14 entity or entities that own, operate, main15 tain, or repair such system’’. 

16 (2) REGULATIONS.—The Administrator of the 

17 Federal Emergency Management Agency shall pro18 mulgate regulations to implement this subsection 

19 and the amendments made by this subsection as 

20 soon as practicable, but not more than 18 months 

21 after the date of the enactment of this Act. Para22 graph (3) may not be construed to annul, alter, af23 fect, authorize any waiver of, or establish any excep24 tion to, the requirement under the preceding sen25 tence. 
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1 SEC. 346. TECHNICAL MAPPING ADVISORY COUNCIL. 

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

3 to be known as the Technical Mapping Advisory Council 

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

5 (b) MEMBERSHIP.— 

6 (1) IN GENERAL.—The Council shall consist 

7 of— 

8 (A) the Administrator of the Federal 

9 Emergency Management Agency (in this section 

10 referred to as the ‘‘Administrator’’), or the des11 ignee thereof; 

12 (B) the Director of the United States Geo13 logical Survey of the Department of the Inte14 rior, or the designee thereof; 

15 (C) the Under Secretary of Commerce for 

16 Oceans and Atmosphere, or the designee there17 of; 

18 (D) the commanding officer of the United 

19 States Army Corps of Engineers, or the des20 ignee thereof; 

21 (E) the chief of the Natural Resources 

22 Conservation Service of the Department of Ag23 riculture, or the designee thereof; 

24 (F) the Director of the United States Fish 

25 and Wildlife Service of the Department of the 

26 Interior, or the designee thereof; 
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1 (G) the Assistant Administrator for Fish2 eries of the National Oceanic and Atmospheric 

3 Administration of the Department of Com4 merce, or the designee thereof; and 

5 (H) 14 additional members to be appointed 

6 by the Administrator of the Federal Emergency 

7 Management Agency, who shall be— 

8 (i) an expert in data management; 

9 (ii) an expert in real estate; 

10 (iii) an expert in insurance; 

11 (iv) a member of a recognized regional 

12 flood and storm water management organi13 zation; 

14 (v) a representative of a State emer15 gency management agency or association 

16 or organization for such agencies; 

17 (vi) a member of a recognized profes18 sional surveying association or organiza19 tion; 

20 (vii) a member of a recognized profes21 sional mapping association or organization; 

22 (viii) a member of a recognized pro23 fessional engineering association or organi24 zation; 
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1 (ix) a member of a recognized profes2 sional association or organization rep3 resenting flood hazard determination firms; 

4 (x) a representative of State national 

5 flood insurance coordination offices; 

6 (xi) representatives of two local gov7 ernments, at least one of whom is a local 

8 levee flood manager or executive, des9 ignated by the Federal Emergency Man10 agement Agency as Cooperating Technical 

11 Partners; and 

12 (xii) representatives of two State gov13 ernments designated by the Federal Emer14 gency Management Agency as Cooperating 

15 Technical States. 

16 (2) QUALIFICATIONS.—Members of the Council 

17 shall be appointed based on their demonstrated 

18 knowledge and competence regarding surveying, car19 tography, remote sensing, geographic information 

20 systems, or the technical aspects of preparing and 

21 using flood insurance rate maps. In appointing 

22 members under paragraph (1)(H), the Administrator 

23 shall ensure that the membership of the Council has 

24 a balance of Federal, State, local, and private mem25 bers, and includes an adequate number of represent-
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1 atives from the States with coastline on the Gulf of 

2 Mexico and other States containing areas identified 

3 by the Administrator of the Federal Emergency 

4 Management Agency as at high-risk for flooding or 

5 special flood hazard areas. 

6 (c) DUTIES.— 

7 (1) NEW MAPPING STANDARDS.—Not later than 

8 the expiration of the 12-month period beginning 

9 upon the date of the enactment of this Act, the 

10 Council shall develop and submit to the Adminis11 trator and the Congress proposed new mapping 

12 standards for 100-year flood insurance rate maps 

13 used under the national flood insurance program 

14 under the National Flood Insurance Act of 1968. In 

15 developing such proposed standards the Council 

16 shall— 

17 (A) ensure that the flood insurance rate 

18 maps reflect true risk, including graduated risk 

19 that better reflects the financial risk to each 

20 property; such reflection of risk should be at 

21 the smallest geographic level possible (but not 

22 necessarily property-by-property) to ensure that 

23 communities are mapped in a manner that 

24 takes into consideration different risk levels 

25 within the community; 
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1 (B) ensure the most efficient generation, 

2 display, and distribution of flood risk data, 

3 models, and maps where practicable through 

4 dynamic digital environments using spatial 

5 database technology and the Internet; 

6 (C) ensure that flood insurance rate maps 

7 reflect current hydrologic and hydraulic data, 

8 current land use, and topography, incorporating 

9 the most current and accurate ground and 

10 bathymetric elevation data; 

11 (D) determine the best ways to include in 

12 such flood insurance rate maps levees, decerti13 fied levees, and areas located below dams, in14 cluding determining a methodology for ensuring 

15 that decertified levees and other protections are 

16 included in flood insurance rate maps and their 

17 corresponding flood zones reflect the level of 

18 protection conferred; 

19 (E) consider how to incorporate restored 

20 wetlands and other natural buffers into flood 

21 insurance rate maps, which may include wet22 lands, groundwater recharge areas, erosion 

23 zones, meander belts, endangered species habi24 tat, barrier islands and shoreline buffer fea25 tures, riparian forests, and other features; 
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1 (F) consider whether to use vertical posi2 tioning (as defined by the Administrator) for 

3 flood insurance rate maps; 

4 (G) ensure that flood insurance rate maps 

5 differentiate between a property that is located 

6 in a flood zone and a structure located on such 

7 property that is not at the same risk level for 

8 flooding as such property due to the elevation 

9 of the structure; 

10 (H) ensure that flood insurance rate maps 

11 take into consideration the best scientific data 

12 and potential future conditions (including pro13 jections for sea level rise); and 

14 (I) consider how to incorporate the new 

15 standards proposed pursuant to this paragraph 

16 in existing mapping efforts. 

17 (2) ONGOING DUTIES.—The Council shall, on 

18 an ongoing basis, review the mapping protocols de19 veloped pursuant to paragraph (1), and make rec20 ommendations to the Administrator when the Coun21 cil determines that mapping protocols should be al22 tered. 

23 (3) MEETINGS.—In carrying out its duties 

24 under this section, the Council shall consult with 

25 stakeholders through at least 4 public meetings an-
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1 nually, and shall seek input of all stakeholder inter2 ests including State and local representatives, envi3 ronmental and conservation organizations, insurance 

4 industry representatives, advocacy groups, planning 

5 organizations, and mapping organizations. 

6 (d) PROHIBITION ON COMPENSATION.—Members of 

7 the Council shall receive no additional compensation by 

8 reason of their service on the Council. 

9 (e) CHAIRPERSON.—The Administrator shall serve as 

10 the Chairperson of the Council. 

11 (f) STAFF.— 

12 (1) FEMA.—Upon the request of the Council, 

13 the Administrator may detail, on a nonreimbursable 

14 basis, personnel of the Federal Emergency Manage15 ment Agency to assist the Council in carrying out its 

16 duties. 

17 (2) OTHER FEDERAL AGENCIES.—Upon request 

18 of the Council, any other Federal agency that is a 

19 member of the Council may detail, on a non-reim20 bursable basis, personnel to assist the Council in 

21 carrying out its duties. 

22 (g) POWERS.—In carrying out this section, the Coun23 cil may hold hearings, receive evidence and assistance, pro24 vide information, and conduct research, as the Council 

25 considers appropriate. 
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1 (h) TERMINATION.—The Council shall terminate 

2 upon the expiration of the 5-year period beginning on the 

3 date of the enactment of this Act. 

4 (i) MORATORIUM ON FLOOD MAP CHANGES.— 

5 (1) MORATORIUM.—Except as provided in para6 graph (2) and notwithstanding any other provision 

7 of this subtitle, the National Flood Insurance Act of 

8 1968, or the Flood Disaster Protection Act of 1973, 

9 during the period beginning upon the date of the en10 actment of this Act and ending upon the submission 

11 by the Council to the Administrator and the Con12 gress of the proposed new mapping standards re13 quired under subsection (c)(1), the Administrator 

14 may not make effective any new or updated rate 

15 maps for flood insurance coverage under the na16 tional flood insurance program that were not in ef17 fect for such program as of such date of enactment, 

18 or otherwise revise, update, or change the flood in19 surance rate maps in effect for such program as of 

20 such date. 

21 (2) LETTERS OF MAP CHANGE.—During the pe22 riod described in paragraph (1), the Administrator 

23 may revise, update, and change the flood insurance 

24 rate maps in effect for the national flood insurance 

25 program only pursuant to a letter of map change 
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1 (including a letter of map amendment, letter of map 

2 revision, and letter of map revision based on fill). 

3 SEC. 347. FEMA INCORPORATION OF NEW MAPPING PROTO4 COLS. 

5 (a) NEW RATE MAPPING STANDARDS.—Not later 

6 than the expiration of the 6-month period beginning upon 

7 submission by the Technical Mapping Advisory Council 

8 under section 346 of the proposed new mapping standards 

9 for flood insurance rate maps used under the national 

10 flood insurance program developed by the Council pursu11 ant to section 346(c), the Administrator of the Federal 

12 Emergency Management Agency (in this section referred 

13 to as the ‘‘Administrator’’) shall establish new standards 

14 for such rate maps based on such proposed new standards 

15 and the recommendations of the Council. 

16 (b) REQUIREMENTS.—The new standards for flood 

17 insurance rate maps established by the Administrator pur18 suant to subsection (a) shall— 

19 (1) delineate and include in any such rate 

20 maps— 

21 (A) all areas located within the 100-year 

22 flood plain; and 

23 (B) areas subject to graduated and other 

24 risk levels, to the maximum extent possible; 

25 (2) ensure that any such rate maps— 
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1 (A) include levees, including decertified lev2 ees, and the level of protection they confer; 

3 (B) reflect current land use and topog4 raphy and incorporate the most current and ac5 curate ground level data; 

6 (C) take into consideration the impacts 

7 and use of fill and the flood risks associated 

8 with altered hydrology; 

9 (D) differentiate between a property that 

10 is located in a flood zone and a structure lo11 cated on such property that is not at the same 

12 risk level for flooding as such property due to 

13 the elevation of the structure; 

14 (E) identify and incorporate natural fea15 tures and their associated flood protection bene16 fits into mapping and rates; and 

17 (F) identify, analyze, and incorporate the 

18 impact of significant changes to building and 

19 development throughout any river or costal 

20 water system, including all tributaries, which 

21 may impact flooding in areas downstream; and 

22 (3) provide that such rate maps are developed 

23 on a watershed basis. 

24 (c) REPORT.—If, in establishing new standards for 

25 flood insurance rate maps pursuant to subsection (a) of 
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1 this section, the Administrator does not implement all of 

2 the recommendations of the Council made under the pro3 posed new mapping standards developed by the Council 

4 pursuant to section 346(c), upon establishment of the new 

5 standards the Administrator shall submit a report to the 

6 Committee on Financial Services of the House of Rep7 resentatives and the Committee on Banking, Housing, and 

8 Urban Affairs of the Senate specifying which such rec9 ommendations were not adopted and explaining the rea10 sons such recommendations were not adopted. 

11 (d) IMPLEMENTATION.—The Administrator shall, not 

12 later than the expiration of the 6-month period beginning 

13 upon establishment of the new standards for flood insur14 ance rate maps pursuant to subsection (a) of this section, 

15 commence use of the new standards and updating of flood 

16 insurance rate maps in accordance with the new stand17 ards. Not later than the expiration of the 10-year period 

18 beginning upon the establishment of such new standards, 

19 the Administrator shall complete updating of all flood in20 surance rate maps in accordance with the new standards, 

21 subject to the availability of sufficient amounts for such 

22 activities provided in appropriation Acts. 

23 (e) TEMPORARY SUSPENSION OF MANDATORY PUR24 CHASE REQUIREMENT FOR CERTAIN PROPERTIES.— 
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1 (1) SUBMISSION OF ELEVATION CERTIFI2 CATE.—Subject to paragraphs (2) and (3) of this 

3 subsection, subsections (a), (b), and (e) of section 

4 102 of the Flood Disaster Protection Act of 1973 

5 (42 U.S.C. 4012a), and section 202(a) of such Act, 

6 shall not apply to a property located in an area des7 ignated as having a special flood hazard if the owner 

8 of such property submits to the Administrator an 

9 elevation certificate for such property showing that 

10 the lowest level of the primary residence on such 

11 property is at an elevation that is at least three feet 

12 higher than the elevation of the 100-year flood plain. 

13 (2) REVIEW OF CERTIFICATE.—The Adminis14 trator shall accept as conclusive each elevation cer15 tificate submitted under paragraph (1) unless the 

16 Administrator conducts a subsequent elevation sur17 vey and determines that the lowest level of the pri18 mary residence on the property in question is not at 

19 an elevation that is at least three feet higher than 

20 the elevation of the 100-year flood plain. The Ad21 ministrator shall provide any such subsequent ele22 vation survey to the owner of such property. 

23 (3) DETERMINATIONS FOR PROPERTIES ON

24 BORDERS OF SPECIAL FLOOD HAZARD AREAS.— 
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1 (A) EXPEDITED DETERMINATION.—In the 

2 case of any survey for a property submitted to 

3 the Administrator pursuant to paragraph (1) 

4 showing that a portion of the property is lo5 cated within an area having special flood haz6 ards and that a structure located on the prop7 erty is not located within such area having spe8 cial flood hazards, the Administrator shall expe9 ditiously process any request made by an owner 

10 of the property for a determination pursuant to 

11 paragraph (2) or a determination of whether 

12 the structure is located within the area having 

13 special flood hazards. 

14 (B) PROHIBITION OF FEE.—If the Admin15 istrator determines pursuant to subparagraph 

16 (A) that the structure on the property is not lo17 cated within the area having special flood haz18 ards, the Administrator shall not charge a fee 

19 for reviewing the flood hazard data and shall 

20 not require the owner to provide any additional 

21 elevation data. 

22 (C) SIMPLIFICATION OF REVIEW PROC23 ESS.—The Administrator shall collaborate with 

24 private sector flood insurers to simplify the re25 view process for properties described in sub-
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1 paragraph (A) and to ensure that the review 

2 process provides for accurate determinations. 

3 (4) TERMINATION OF AUTHORITY.—This sub4 section shall cease to apply to a property on the date 

5 on which the Administrator updates the flood insur6 ance rate map that applies to such property in ac7 cordance with the requirements of subsection (d). 

8 SEC. 348. TREATMENT OF LEVEES. 

9 Section 1360 of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4101) is amended by adding at the end 

11 the following new subsection: 

12 ‘‘(k) TREATMENT OF LEVEES.—The Administrator 

13 may not issue flood insurance maps, or make effective up14 dated flood insurance maps, that omit or disregard the 

15 actual protection afforded by an existing levee, floodwall, 

16 pump or other flood protection feature, regardless of the 

17 accreditation status of such feature.’’. 

18 SEC. 349. PRIVATIZATION INITIATIVES. 

19 (a) FEMA AND GAO REPORTS.—Not later than the 

20 expiration of the 18-month period beginning on the date 

21 of the enactment of this Act, the Administrator of the 

22 Federal Emergency Management Agency and the Comp23 troller General of the United States shall each conduct a 

24 separate study to assess a broad range of options, meth25 ods, and strategies for privatizing the national flood insur-
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1 ance program and shall each submit a report to the Com2 mittee on Financial Services of the House of Representa3 tives and the Committee on Banking, Housing, and Urban 

4 Affairs of the Senate with recommendations for the best 

5 manner to accomplish such privatization. 

6 (b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 

7 (1) AUTHORITY.—The Administrator of the 

8 Federal Emergency Management Agency may carry 

9 out such private risk-management initiatives under 

10 the national flood insurance program as the Admin11 istrator considers appropriate to determine the ca12 pacity of private insurers, reinsurers, and financial 

13 markets to assist communities, on a voluntary basis 

14 only, in managing the full range of financial risks 

15 associated with flooding. 

16 (2) ASSESSMENT.—Not later than the expira17 tion of the 12-month period beginning on the date 

18 of the enactment of this Act, the Administrator shall 

19 assess the capacity of the private reinsurance, cap20 ital, and financial markets by seeking proposals to 

21 assume a portion of the program’s insurance risk 

22 and submit to the Congress a report describing the 

23 response to such request for proposals and the re24 sults of such assessment. 
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1 (3) PROTOCOL FOR RELEASE OF DATA.—The 

2 Administrator shall develop a protocol to provide for 

3 the release of data sufficient to conduct the assess4 ment required under paragraph (2). 

5 (c) REINSURANCE.—The National Flood Insurance 

6 Act of 1968 is amended— 

7 (1) in section 1331(a)(2) (42 U.S.C. 

8 4051(a)(2)), by inserting ‘‘, including as reinsurance 

9 of insurance coverage provided by the flood insur10 ance program’’ before ‘‘, on such terms’’; 

11 (2) in section 1332(c)(2) (42 U.S.C. 

12 4052(c)(2)), by inserting ‘‘or reinsurance’’ after 

13 ‘‘flood insurance coverage’’; 

14 (3) in section 1335(a) (42 U.S.C. 4055(a))— 

15 (A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

16 (B) by adding at the end the following new 

17 paragraph: 

18 ‘‘(2) The Administrator is authorized to secure rein19 surance coverage of coverage provided by the flood insur20 ance program from private market insurance, reinsurance, 

21 and capital market sources at rates and on terms deter22 mined by the Administrator to be reasonable and appro23 priate in an amount sufficient to maintain the ability of 

24 the program to pay claims and that minimizes the likeli-
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1 hood that the program will utilize the borrowing authority 

2 provided under section 1309.’’; 

3 (4) in section 1346(a) (12 U.S.C. 4082(a))— 

4 (A) in the matter preceding paragraph (1), 

5 by inserting ‘‘, or for purposes of securing rein6 surance of insurance coverage provided by the 

7 program,’’ before ‘‘of any or all of’’; 

8 (B) in paragraph (1)— 

9 (i) by striking ‘‘estimating’’ and in10 serting ‘‘Estimating’’; and 

11 (ii) by striking the semicolon at the 

12 end and inserting a period; 

13 (C) in paragraph (2)— 

14 (i) by striking ‘‘receiving’’ and insert15 ing ‘‘Receiving’’; and 

16 (ii) by striking the semicolon at the 

17 end and inserting a period; 

18 (D) in paragraph (3)— 

19 (i) by striking ‘‘making’’ and inserting 

20 ‘‘Making’’; and 

21 (ii) by striking ‘‘; and’’ and inserting 

22 a period; 

23 (E) in paragraph (4)— 

24 (i) by striking ‘‘otherwise’’ and insert25 ing ‘‘Otherwise’’; and 
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1 (ii) by redesignating such paragraph 

2 as paragraph (5); and 

3 (F) by inserting after paragraph (3) the 

4 following new paragraph: 

5 ‘‘(4) Placing reinsurance coverage on insurance 

6 provided by such program.’’; and 

7 (5) in section 1370(a)(3) (42 U.S.C. 

8 4121(a)(3)), by inserting before the semicolon at the 

9 end the following: ‘‘, is subject to the reporting re10 quirements of the Securities Exchange Act of 1934, 

11 pursuant to section 13(a) or 15(d) of such Act (15 

12 U.S.C. 78m(a), 78o(d)), or is authorized by the Ad13 ministrator to assume reinsurance on risks insured 

14 by the flood insurance program’’. 

15 (d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 

16 (1) ASSESSMENT.—Not later than September 

17 30 of each year, the Administrator of the Federal 

18 Emergency Management Agency shall conduct an 

19 assessment of the claims-paying ability of the na20 tional flood insurance program, including the pro21 gram’s utilization of private sector reinsurance and 

22 reinsurance equivalents, with and without reliance 

23 on borrowing authority under section 1309 of the 

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

25 4016). In conducting the assessment, the Adminis-
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1 trator shall take into consideration regional con2 centrations of coverage written by the program, peak 

3 flood zones, and relevant mitigation measures. 

4 (2) REPORT.—The Administrator shall submit 

5 a report to the Congress of the results of each such 

6 assessment, and make such report available to the 

7 public, not later than 30 days after completion of 

8 the assessment. 

9 SEC. 350. FEMA ANNUAL REPORT ON INSURANCE PRO10 GRAM. 

11 Section 1320 of the National Flood Insurance Act of 

12 1968 (42 U.S.C. 4027) is amended— 

13 (1) in the section heading, by striking ‘‘REPORT

14 TO THE PRESIDENT’’ and inserting ‘‘ANNUAL RE15 PORT TO CONGRESS’’; 

16 (2) in subsection (a)— 

17 (A) by striking ‘‘biennially’’; 

18 (B) by striking ‘‘the President for submis19 sion to’’; and 

20 (C) by inserting ‘‘not later than June 30 

21 of each year’’ before the period at the end; 

22 (3) in subsection (b), by striking ‘‘biennial’’ and 

23 inserting ‘‘annual’’; and 

24 (4) by adding at the end the following new sub25 section: 
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1 ‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 

2 under this section for each year shall include information 

3 regarding the financial status of the national flood insur4 ance program under this title, including a description of 

5 the financial status of the National Flood Insurance Fund 

6 and current and projected levels of claims, premium re7 ceipts, expenses, and borrowing under the program.’’. 

8 SEC. 351. MITIGATION ASSISTANCE. 

9 (a) MITIGATION ASSISTANCE GRANTS.—Section 

10 1366 of the National Flood Insurance Act of 1968 (42 

11 U.S.C. 4104c) is amended— 

12 (1) in subsection (a), by striking the last sen13 tence and inserting the following: ‘‘Such financial 

14 assistance shall be made available— 

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

16 grants under this section for carrying out mitigation 

17 activities; 

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

19 grants under this section for carrying out mitigation 

20 activities that reduce flood damage to severe repet21 itive loss structures; and 

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

23 grants under this section for carrying out mitigation 

24 activities that reduce flood damage to individual 

25 structures for which 2 or more claim payments for 
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1 losses have been made under flood insurance cov2 erage under this title if the Administrator, after con3 sultation with the State and community, determines 

4 that neither the State nor community in which such 

5 a structure is located has the capacity to manage 

6 such grants.’’. 

7 (2) by striking subsection (b); 

8 (3) in subsection (c)— 

9 (A) by striking ‘‘flood risk’’ and inserting 

10 ‘‘multi-hazard’’; 

11 (B) by striking ‘‘provides protection 

12 against’’ and inserting ‘‘examines reduction of’’; 

13 and 

14 (C) by redesignating such subsection as 

15 subsection (b); 

16 (4) by striking subsection (d); 

17 (5) in subsection (e)— 

18 (A) in paragraph (1), by striking the para19 graph designation and all that follows through 

20 the end of the first sentence and inserting the 

21 following: 

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

24 under this section may be used only for mitigation 

25 activities that are consistent with mitigation plans 
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1 that are approved by the Administrator and identi2 fied under subparagraph (4).’’; 

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

4 (4) and inserting the following new paragraphs: 

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

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

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

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

13 recognized benefits that are difficult to quantify. 

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

15 In providing grants under this section for mitigation 

16 activities, the Administrator shall give priority for 

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

20 for— 

21 ‘‘(A) severe repetitive loss structures; 

22 ‘‘(B) repetitive loss structures; and 

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

25 (C) in paragraph (5)— 
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1 (i) by striking all of the matter that 

2 precedes subparagraph (A) and inserting 

3 the following: 

4 ‘‘(4) ELIGIBLE ACTIVITIES.—Eligible activities 

5 may include—’’; 

6 (ii) by striking subparagraphs (E) and 

7 (H); 

8 (iii) by redesignating subparagraphs 

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

10 (G), and (H); 

11 (iv) by inserting after subparagraph 

12 (C) the following new subparagraph: 

13 ‘‘(D) elevation, relocation, and 

14 floodproofing of utilities (including equipment 

15 that serve structures);’’; 

16 (v) by inserting after subparagraph 

17 (E), as so redesignated by clause (iii) of 

18 this subparagraph, the following new sub19 paragraph: 

20 ‘‘(F) the development or update of State, 

21 local, or Indian tribal mitigation plans which 

22 meet the planning criteria established by the 

23 Administrator, except that the amount from 

24 grants under this section that may be used 

25 under this subparagraph may not exceed 
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1 $50,000 for any mitigation plan of a State or 

2 $25,000 for any mitigation plan of a local gov3 ernment or Indian tribe;’’; 

4 (vi) in subparagraph (H); as so redes5 ignated by clause (iii) of this subpara6 graph, by striking ‘‘and’’ at the end; and 

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

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

11 the regulations issued under subparagraph (H), 

12 that are described in the mitigation plan of a 

13 State, community, or Indian tribe; and 

14 ‘‘(J) personnel costs for State staff that 

15 provide technical assistance to communities to 

16 identify eligible activities, to develop grant ap17 plications, and to implement grants awarded 

18 under this section, not to exceed $50,000 per 

19 State in any Federal fiscal year, so long as the 

20 State applied for and was awarded at least 

21 $1,000,000 in grants available under this sec22 tion in the prior Federal fiscal year; the re23 quirements of subsections (d)(1) and (d)(2) 

24 shall not apply to the activity under this sub25 paragraph.’’; 
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1 (D) by adding at the end the following new 

2 paragraph: 

3 ‘‘(6) ELIGIBILITY OF DEMOLITION AND RE4 BUILDING OF PROPERTIES.—The Administrator 

5 shall consider as an eligible activity the demolition 

6 and rebuilding of properties to at least base flood 

7 elevation or greater, if required by the Administrator 

8 or if required by any State regulation or local ordi9 nance, and in accordance with criteria established by 

10 the Administrator.’’; and 

11 (E) by redesignating such subsection as 

12 subsection (c); 

13 (6) by striking subsections (f), (g), and (h) and 

14 inserting the following new subsection: 

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

16 may provide grants for eligible mitigation activities as fol17 lows: 

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

19 In the case of mitigation activities to severe repet20 itive loss structures, in an amount up to 100 percent 

21 of all eligible costs. 

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

23 case of mitigation activities to repetitive loss struc24 tures, in an amount up to 90 percent of all eligible 

25 costs. 
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1 ‘‘(3) OTHER MITIGATION ACTIVITIES.— In the 

2 case of all other mitigation activities, in an amount 

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

4 (7) in subsection (i)— 

5 (A) in paragraph (2)— 

6 (i) by striking ‘‘certified under sub7 section (g)’’ and inserting ‘‘required under 

8 subsection (d)’’; and 

9 (ii) by striking ‘‘3 times the amount’’ 

10 and inserting ‘‘the amount’’; and 

11 (B) by redesignating such subsection as 

12 subsection (e); 

13 (8) in subsection (j)— 

14 (A) by striking ‘‘Riegle Community Devel15 opment and Regulatory Improvement Act of 

16 1994’’ and inserting ‘‘Flood Insurance Reform 

17 Act of 2012’’; 

18 (B) by redesignating such subsection as 

19 subsection (f); and 

20 (9) by striking subsections (k) and (m) and in21 serting the following new subsections: 

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

23 YEARS.—For any application for a grant under this sec24 tion for which the Administrator fails to make a grant 

25 award within 5 years of the date of application, the grant 
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1 application shall be considered to be denied and any fund2 ing amounts allocated for such grant applications shall re3 main in the National Flood Mitigation Fund under section 

4 1367 of this title and shall be made available for grants 

5 under this section. 

6 ‘‘(h) LIMITATION ON FUNDING FOR MITIGATION AC7 TIVITIES FOR SEVERE REPETITIVE LOSS STRUCTURES.— 

8 The amount used pursuant to section 1310(a)(8) in any 

9 fiscal year may not exceed $40,000,000 and shall remain 

10 available until expended. 

11 ‘‘(i) DEFINITIONS.—For purposes of this section, the 

12 following definitions shall apply: 

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

14 means— 

15 ‘‘(A) a political subdivision that— 

16 ‘‘(i) has zoning and building code ju17 risdiction over a particular area having 

18 special flood hazards, and 

19 ‘‘(ii) is participating in the national 

20 flood insurance program; or 

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

22 other authority, that is designated by political 

23 subdivisions, all of which meet the requirements 

24 of subparagraph (A), to administer grants for 
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1 mitigation activities for such political subdivi2 sions. 

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

4 ‘repetitive loss structure’ has the meaning given 

5 such term in section 1370. 

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

7 The term ‘severe repetitive loss structure’ means a 

8 structure that— 

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

10 insurance made available under this title; and 

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

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

13 claims payments have been made under 

14 flood insurance coverage under this title, 

15 with the amount of each such claim ex16 ceeding $15,000, and with the cumulative 

17 amount of such claims payments exceeding 

18 $60,000; or 

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

20 claims payments have been made under 

21 such coverage, with the cumulative amount 

22 of such claims exceeding the value of the 

23 insured structure.’’. 

24 (b) ELIMINATION OF GRANTS PROGRAM FOR REPET25 ITIVE INSURANCE CLAIMS PROPERTIES.—Chapter I of 
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1 the National Flood Insurance Act of 1968 is amended by 

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

3 (c) ELIMINATION OF PILOT PROGRAM FOR MITIGA4 TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Chap5 ter III of the National Flood Insurance Act of 1968 is 

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

7 (d) NATIONAL FLOOD INSURANCE FUND.—Section 

8 1310(a) of the National Flood Insurance Act of 1968 (42 

9 U.S.C. 4017(a)) is amended— 

10 (1) in paragraph (7), by inserting ‘‘and’’ after 

11 the semicolon; and 

12 (2) by striking paragraphs (8) and (9). 

13 (e) NATIONAL FLOOD MITIGATION FUND.—Section 

14 1367 of the National Flood Insurance Act of 1968 (42 

15 U.S.C. 4104d) is amended— 

16 (1) in subsection (b)— 

17 (A) by striking paragraph (1) and insert18 ing the following new paragraph: 

19 ‘‘(1) in each fiscal year, from the National 

20 Flood Insurance Fund in amounts not exceeding 

21 $90,000,000 to remain available until expended, of 

22 which— 

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

24 available pursuant to subsection (a) of this sec-
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1 tion only for assistance described in section 

2 1366(a)(1); 

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

4 available pursuant to subsection (a) of this sec5 tion only for assistance described in section 

6 1366(a)(2); and 

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

8 available pursuant to subsection (a) of this sec9 tion only for assistance described in section 

10 1366(a)(3).’’. 

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

12 1366(i)’’ and inserting ‘‘section 1366(e)’’; 

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

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

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

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

17 (4) by inserting after subsection (c) the fol18 lowing new subsections: 

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

20 Notwithstanding any other provision of this title, amounts 

21 made available pursuant to this section shall not be sub22 ject to offsetting collections through premium rates for 

23 flood insurance coverage under this title. 

24 ‘‘(e) CONTINUED AVAILABILITY AND REALLOCA25 TION.—Any amounts made available pursuant to subpara-
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1 graph (A), (B), or (C) of subsection (b)(1) that are not 

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

3 the purposes specified in such subparagraph of subsection 

4 (b)(1) pursuant to which such amounts were made avail5 able, unless the Administrator determines that realloca6 tion of such unused amounts to meet demonstrated need 

7 for other mitigation activities under section 1366 is in the 

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

9 (f) INCREASED COST OF COMPLIANCE COVERAGE.— 

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

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

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

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

14 and (E) as subparagraphs (B), (C), and (D), respec15 tively. 

16 SEC. 352. NOTIFICATION TO HOMEOWNERS REGARDING 

17 MANDATORY PURCHASE REQUIREMENT AP18 PLICABILITY AND RATE PHASE-INS. 

19 Section 201 of the Flood Disaster Protection Act of 

20 1973 (42 U.S.C. 4105) is amended by adding at the end 

21 the following new subsection: 

22 ‘‘(f) ANNUAL NOTIFICATION.—The Administrator, in 

23 consultation with affected communities, shall establish and 

24 carry out a plan to notify residents of areas having special 

25 flood hazards, on an annual basis— 
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1 ‘‘(1) that they reside in such an area; 

2 ‘‘(2) of the geographical boundaries of such 

3 area; 

4 ‘‘(3) of whether section 1308(g) of the National 

5 Flood Insurance Act of 1968 applies to properties 

6 within such area; 

7 ‘‘(4) of the provisions of section 102 requiring 

8 purchase of flood insurance coverage for properties 

9 located in such an area, including the date on which 

10 such provisions apply with respect to such area, tak11 ing into consideration section 102(i); and 

12 ‘‘(5) of a general estimate of what similar 

13 homeowners in similar areas typically pay for flood 

14 insurance coverage, taking into consideration section 

15 1308(g) of the National Flood Insurance Act of 

16 1968.’’. 

17 SEC. 353. NOTIFICATION TO MEMBERS OF CONGRESS OF 

18 FLOOD MAP REVISIONS AND UPDATES. 

19 Section 1360 of the National Flood Insurance Act of 

20 1968 (42 U.S.C. 4101), as amended by the preceding pro21 visions of this subtitle, is further amended by adding at 

22 the end the following new subsection: 

23 ‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF

24 MAP MODERNIZATION.—Upon any revision or update of 

25 any floodplain area or flood-risk zone pursuant to sub-
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1 section (f), any decision pursuant to subsection (f)(1) that 

2 such revision or update is necessary, any issuance of pre3 liminary maps for such revision or updating, or any other 

4 significant action relating to any such revision or update, 

5 the Administrator shall notify the Senators for each State 

6 affected, and each Member of the House of Representa7 tives for each congressional district affected, by such revi8 sion or update in writing of the action taken.’’. 

9 SEC. 354. NOTIFICATION AND APPEAL OF MAP CHANGES; 

10 NOTIFICATION TO COMMUNITIES OF ESTAB11 LISHMENT OF FLOOD ELEVATIONS. 

12 Section 1363 of the National Flood Insurance Act of 

13 1968 (42 U.S.C. 4104) is amended by striking the section 

14 designation and all that follows through the end of sub15 section (a) and inserting the following: 

16 ‘‘SEC. 1363. (a) In establishing projected flood ele17 vations for land use purposes with respect to any commu18 nity pursuant to section 1361, the Administrator shall 

19 first propose such determinations— 

20 ‘‘(1) by providing the chief executive officer of 

21 each community affected by the proposed elevations, 

22 by certified mail, with a return receipt requested, 

23 notice of the elevations, including a copy of the maps 

24 for the elevations for such community and a state-
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1 ment explaining the process under this section to ap2 peal for changes in such elevations; 

3 ‘‘(2) by causing notice of such elevations to be 

4 published in the Federal Register, which notice shall 

5 include information sufficient to identify the ele6 vation determinations and the communities affected, 

7 information explaining how to obtain copies of the 

8 elevations, and a statement explaining the process 

9 under this section to appeal for changes in the ele10 vations; 

11 ‘‘(3) by publishing in a prominent local news12 paper the elevations, a description of the appeals 

13 process for flood determinations, and the mailing ad14 dress and telephone number of a person the owner 

15 may contact for more information or to initiate an 

16 appeal; 

17 ‘‘(4) by providing written notification, by first 

18 class mail, to each owner of real property affected by 

19 the proposed elevations of— 

20 ‘‘(A) the status of such property, both 

21 prior to and after the effective date of the pro22 posed determination, with respect to flood zone 

23 and flood insurance requirements under this 

24 Act and the Flood Disaster Protection Act of 

25 1973; 
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1 ‘‘(B) the process under this section to ap2 peal a flood elevation determination; and 

3 ‘‘(C) the mailing address and phone num4 ber of a person the owner may contact for more 

5 information or to initiate an appeal; and’’. 

6 SEC. 355. NOTIFICATION TO TENANTS OF AVAILABILITY OF 

7 CONTENTS INSURANCE. 

8 The National Flood Insurance Act of 1968 is amend9 ed by inserting after section 1308 (42 U.S.C. 4015) the 

10 following new section: 

11 ‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 

12 OF CONTENTS INSURANCE. 

13 ‘‘(a) IN GENERAL.—The Administrator shall, upon 

14 entering into a contract for flood insurance coverage under 

15 this title for any property— 

16 ‘‘(1) provide to the insured sufficient copies of 

17 the notice developed pursuant to subsection (b); and 

18 ‘‘(2) require the insured to provide a copy of 

19 the notice, or otherwise provide notification of the 

20 information under subsection (b) in the manner that 

21 the manager or landlord deems most appropriate, to 

22 each such tenant and to each new tenant upon com23 mencement of such a tenancy. 
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1 ‘‘(b) NOTICE.—Notice to a tenant of a property in 

2 accordance with this subsection is written notice that 

3 clearly informs a tenant— 

4 ‘‘(1) whether the property is located in an area 

5 having special flood hazards; 

6 ‘‘(2) that flood insurance coverage is available 

7 under the national flood insurance program under 

8 this title for contents of the unit or structure leased 

9 by the tenant; 

10 ‘‘(3) of the maximum amount of such coverage 

11 for contents available under this title at that time; 

12 and 

13 ‘‘(4) of where to obtain information regarding 

14 how to obtain such coverage, including a telephone 

15 number, mailing address, and Internet site of the 

16 Administrator where such information is available.’’. 

17 SEC. 356. NOTIFICATION TO POLICY HOLDERS REGARDING 

18 DIRECT MANAGEMENT OF POLICY BY FEMA. 

19 Part C of chapter II of the National Flood Insurance 

20 Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add21 ing at the end the following new section: 
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1 ‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD2 ING DIRECT MANAGEMENT OF POLICY BY 

3 FEMA. 

4 ‘‘(a) NOTIFICATION.—Not later than 60 days before 

5 the date on which a transferred flood insurance policy ex6 pires, and annually thereafter until such time as the Fed7 eral Emergency Management Agency is no longer directly 

8 administering such policy, the Administrator shall notify 

9 the holder of such policy that— 

10 ‘‘(1) the Federal Emergency Management 

11 Agency is directly administering the policy; 

12 ‘‘(2) such holder may purchase flood insurance 

13 that is directly administered by an insurance com14 pany; and 

15 ‘‘(3) purchasing flood insurance offered under 

16 the National Flood Insurance Program that is di17 rectly administered by an insurance company will 

18 not alter the coverage provided or the premiums 

19 charged to such holder that otherwise would be pro20 vided or charged if the policy was directly adminis21 tered by the Federal Emergency Management Agen22 cy. 

23 ‘‘(b) DEFINITION.—In this section, the term ‘trans24 ferred flood insurance policy’ means a flood insurance pol25 icy that— 
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1 ‘‘(1) was directly administered by an insurance 

2 company at the time the policy was originally pur3 chased by the policy holder; and 

4 ‘‘(2) at the time of renewal of the policy, direct 

5 administration of the policy was or will be trans6 ferred to the Federal Emergency Management Agen7 cy.’’. 

8 SEC. 357. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 

9 AND ESCROW IN RESPA GOOD FAITH ESTI10 MATE. 

11 Subsection (c) of section 5 of the Real Estate Settle12 ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 

13 amended by adding at the end the following new sentence: 

14 ‘‘Each such good faith estimate shall include the following 

15 conspicuous statements and information: (1) that flood in16 surance coverage for residential real estate is generally 

17 available under the national flood insurance program 

18 whether or not the real estate is located in an area having 

19 special flood hazards and that, to obtain such coverage, 

20 a home owner or purchaser should contact the national 

21 flood insurance program; (2) a telephone number and a 

22 location on the Internet by which a home owner or pur23 chaser can contact the national flood insurance program; 

24 and (3) that the escrowing of flood insurance payments 

25 is required for many loans under section 102(d) of the 
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1 Flood Disaster Protection Act of 1973, and may be a con2 venient and available option with respect to other loans.’’. 

3 SEC. 358. REIMBURSEMENT FOR COSTS INCURRED BY 

4 HOMEOWNERS AND COMMUNITIES OBTAIN5 ING LETTERS OF MAP AMENDMENT OR REVI6 SION. 

7 (a) IN GENERAL.—Section 1360 of the National 

8 Flood Insurance Act of 1968 (42 U.S.C. 4101), as amend9 ed by the preceding provisions of this subtitle, is further 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(m) REIMBURSEMENT.— 

13 ‘‘(1) REQUIREMENT UPON BONA FIDE

14 ERROR.—If an owner of any property located in an 

15 area described in section 102(i)(3) of the Flood Dis16 aster Protection Act of 1973, or a community in 

17 which such a property is located, obtains a letter of 

18 map amendment, or a letter of map revision, due to 

19 a bona fide error on the part of the Administrator 

20 of the Federal Emergency Management Agency, the 

21 Administrator shall reimburse such owner, or such 

22 entity or jurisdiction acting on such owner’s behalf, 

23 or such community, as applicable, for any reasonable 

24 costs incurred in obtaining such letter. 
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1 ‘‘(2) REASONABLE COSTS.—The Administrator 

2 shall, by regulation or notice, determine a reasonable 

3 amount of costs to be reimbursed under paragraph 

4 (1), except that such costs shall not include legal or 

5 attorneys fees. In determining the reasonableness of 

6 costs, the Administrator shall only consider the ac7 tual costs to the owner or community, as applicable, 

8 of utilizing the services of an engineer, surveyor, or 

9 similar services.’’. 

10 (b) REGULATIONS.—Not later than 90 days after the 

11 date of the enactment of this Act, the Administrator of 

12 the Federal Emergency Management Agency shall issue 

13 the regulations or notice required under section 

14 1360(m)(2) of the National Flood Insurance Act of 1968, 

15 as added by the amendment made by subsection (a) of 

16 this section. 

17 SEC. 359. ENHANCED COMMUNICATION WITH CERTAIN 

18 COMMUNITIES DURING MAP UPDATING 

19 PROCESS. 

20 Section 1360 of the National Flood Insurance Act of 

21 1968 (42 U.S.C. 4101), as amended by the preceding pro22 visions of this subtitle, is further amended by adding at 

23 the end the following new subsection: 

24 ‘‘(n) ENHANCED COMMUNICATION WITH CERTAIN

25 COMMUNITIES DURING MAP UPDATING PROCESS.—In 
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1 updating flood insurance maps under this section, the Ad2 ministrator shall communicate with communities located 

3 in areas where flood insurance rate maps have not been 

4 updated in 20 years or more and the appropriate State 

5 emergency agencies to resolve outstanding issues, provide 

6 technical assistance, and disseminate all necessary infor7 mation to reduce the prevalence of outdated maps in flood8 prone areas.’’. 

9 SEC. 360. NOTIFICATION TO RESIDENTS NEWLY INCLUDED 

10 IN FLOOD HAZARD AREAS. 

11 Section 1360 of the National Flood Insurance Act of 

12 1968 (42 U.S.C. 4101), as amended by the preceding pro13 visions of this subtitle, is further amended by adding at 

14 the end the following new subsection: 

15 ‘‘(o) NOTIFICATION TO RESIDENTS NEWLY IN16 CLUDED IN FLOOD HAZARD AREA.—In revising or updat17 ing any areas having special flood hazards, the Adminis18 trator shall provide to each owner of a property to be 

19 newly included in such a special flood hazard area, at the 

20 time of issuance of such proposed revised or updated flood 

21 insurance maps, a copy of the proposed revised or updated 

22 flood insurance maps together with information regarding 

23 the appeals process under section 1363 (42 U.S.C. 

24 4104).’’. 
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1 SEC. 361. TREATMENT OF SWIMMING POOL ENCLOSURES 

2 OUTSIDE OF HURRICANE SEASON. 

3 Chapter I of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4001 et seq.) is amended by adding at 

5 the end the following new section: 

6 ‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 

7 OUTSIDE OF HURRICANE SEASON. 

8 ‘‘In the case of any property that is otherwise in com9 pliance with the coverage and building requirements of the 

10 national flood insurance program, the presence of an en11 closed swimming pool located at ground level or in the 

12 space below the lowest floor of a building after November 

13 30 and before June 1 of any year shall have no effect on 

14 the terms of coverage or the ability to receive coverage 

15 for such building under the national flood insurance pro16 gram established pursuant to this title, if the pool is en17 closed with non-supporting breakaway walls.’’. 

18 SEC. 362. INFORMATION REGARDING MULTIPLE PERILS 

19 CLAIMS. 

20 Section 1345 of the National Flood Insurance Act of 

21 1968 (42 U.S.C. 4081) is amended by adding at the end 

22 the following new subsection: 

23 ‘‘(d) INFORMATION REGARDING MULTIPLE PERILS

24 CLAIMS.— 

25 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

26 if an insured having flood insurance coverage under 
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1 a policy issued under the program under this title by 

2 the Administrator or a company, insurer, or entity 

3 offering flood insurance coverage under such pro4 gram (in this subsection referred to as a ‘partici5 pating company’) has wind or other homeowners 

6 coverage from any company, insurer, or other entity 

7 covering property covered by such flood insurance, in 

8 the case of damage to such property that may have 

9 been caused by flood or by wind, the Administrator 

10 and the participating company, upon the request of 

11 the insured, shall provide to the insured, within 30 

12 days of such request— 

13 ‘‘(A) a copy of the estimate of structure 

14 damage; 

15 ‘‘(B) proofs of loss; 

16 ‘‘(C) any expert or engineering reports or 

17 documents commissioned by or relied upon by 

18 the Administrator or participating company in 

19 determining whether the damage was caused by 

20 flood or any other peril; and 

21 ‘‘(D) the Administrator’s or the partici22 pating company’s final determination on the 

23 claim. 

24 ‘‘(2) TIMING.—Paragraph (1) shall apply only 

25 with respect to a request described in such para-
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1 graph made by an insured after the Administrator 

2 or the participating company, or both, as applicable, 

3 have issued a final decision on the flood claim in4 volved and resolution of all appeals with respect to 

5 such claim.’’. 

6 SEC. 363. FEMA AUTHORITY TO REJECT TRANSFER OF 

7 POLICIES. 

8 Section 1345 of the National Flood Insurance Act of 

9 1968 (42 U.S.C. 4081) is amended by adding at the end 

10 the following new subsection: 

11 ‘‘(e) FEMA AUTHORITY TO REJECT TRANSFER OF

12 POLICIES.—Notwithstanding any other provision of this 

13 Act, the Administrator may, at the discretion of the Ad14 ministrator, refuse to accept the transfer of the adminis15 tration of policies for coverage under the flood insurance 

16 program under this title that are written and administered 

17 by any insurance company or other insurer, or any insur18 ance agent or broker.’’. 

19 SEC. 364. APPEALS. 

20 (a) TELEVISION AND RADIO ANNOUNCEMENT.—Sec21 tion 1363 of the National Flood Insurance Act of 1968 

22 (42 U.S.C. 4104), as amended by the preceding provisions 

23 of this subtitle, is further amended— 

24 (1) in subsection (a), by adding at the end the 

25 following new paragraph: 
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1 ‘‘(5) by notifying a local television and radio 

2 station,’’; and 

3 (2) in the first sentence of subsection (b), by in4 serting before the period at the end the following: 

5 ‘‘and shall notify a local television and radio station 

6 at least once during the same 10-day period’’. 

7 (b) EXTENSION OF APPEALS PERIOD.—Subsection 

8 (b) of section 1363 of the National Flood Insurance Act 

9 of 1968 (42 U.S.C. 4104(b)) is amended— 

10 (1) by striking ‘‘(b) The Director’’ and insert11 ing ‘‘(b)(1) The Administrator’’; and 

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

13 paragraph: 

14 ‘‘(2) The Administrator shall grant an extension of 

15 the 90-day period for appeals referred to in paragraph (1) 

16 for 90 additional days if an affected community certifies 

17 to the Administrator, after the expiration of at least 60 

18 days of such period, that the community— 

19 ‘‘(A) believes there are property owners or les20 sees in the community who are unaware of such pe21 riod for appeals; and 

22 ‘‘(B) will utilize the extension under this para23 graph to notify property owners or lessees who are 

24 affected by the proposed flood elevation determina25 tions of the period for appeals and the opportunity 
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1 to appeal the determinations proposed by the Ad2 ministrator.’’. 

3 (c) APPLICABILITY.—The amendments made by sub4 sections (a) and (b) shall apply with respect to any flood 

5 elevation determination for any area in a community that 

6 has not, as of the date of the enactment of this Act, been 

7 issued a Letter of Final Determination for such deter8 mination under the flood insurance map modernization 

9 process. 

10 SEC. 365. RESERVE FUND. 

11 (a) ESTABLISHMENT.—Chapter I of the National 

12 Flood Insurance Act of 1968 is amended by inserting after 

13 section 1310 (42 U.S.C. 4017) the following new section: 

14 ‘‘SEC. 1310A. RESERVE FUND. 

15 ‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car16 rying out the flood insurance program authorized by this 

17 title, the Administrator shall establish in the Treasury of 

18 the United States a National Flood Insurance Reserve 

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

20 which shall— 

21 ‘‘(1) be an account separate from any other ac22 counts or funds available to the Administrator; and 

23 ‘‘(2) be available for meeting the expected fu24 ture obligations of the flood insurance program. 
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1 ‘‘(b) RESERVE RATIO.—Subject to the phase-in re2 quirements under subsection (d), the Reserve Fund shall 

3 maintain a balance equal to— 

4 ‘‘(1) 1 percent of the sum of the total potential 

5 loss exposure of all outstanding flood insurance poli6 cies in force in the prior fiscal year; or 

7 ‘‘(2) such higher percentage as the Adminis8 trator determines to be appropriate, taking into con9 sideration any circumstance that may raise a signifi10 cant risk of substantial future losses to the Reserve 

11 Fund. 

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

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

14 have the authority to establish, increase, or decrease 

15 the amount of aggregate annual insurance premiums 

16 to be collected for any fiscal year necessary— 

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

18 under subsection (b); and 

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

20 actual balance of such reserve is below the 

21 amount required under subsection (b). 

22 ‘‘(2) CONSIDERATIONS.—In exercising the au23 thority under paragraph (1), the Administrator shall 

24 consider— 
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1 ‘‘(A) the expected operating expenses of 

2 the Reserve Fund; 

3 ‘‘(B) the insurance loss expenditures under 

4 the flood insurance program; 

5 ‘‘(C) any investment income generated 

6 under the flood insurance program; and 

7 ‘‘(D) any other factor that the Adminis8 trator determines appropriate. 

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

10 under paragraph (1), the Administrator shall be 

11 subject to all other provisions of this Act, including 

12 any provisions relating to chargeable premium rates 

13 and annual increases of such rates. 

14 ‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re15 quirements under this subsection are as follows: 

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

17 2012 and not ending until the fiscal year in which 

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

19 in each such fiscal year the Administrator shall 

20 place in the Reserve Fund an amount equal to not 

21 less than 7.5 percent of the reserve ratio required 

22 under subsection (b). 

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

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

25 as provided in paragraph (3), the Administrator 
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1 shall not be required to set aside any amounts for 

2 the Reserve Fund. 

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

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

5 Reserve Fund falls below the required ratio under 

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

7 Reserve Fund for that fiscal year an amount equal 

8 to not less than 7.5 percent of the reserve ratio re9 quired under subsection (b). 

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

11 fiscal year, if the Administrator determines that the re12 serve ratio required under subsection (b) cannot be 

13 achieved, the Administrator shall submit a report to the 

14 Congress that— 

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

16 of the Administrator regarding such consequences; 

17 ‘‘(2) demonstrates how such consequences 

18 would harm the long-term financial soundness of the 

19 flood insurance program; and 

20 ‘‘(3) indicates the maximum attainable reserve 

21 ratio for that particular fiscal year. 

22 ‘‘(f) AVAILABILITY OF AMOUNTS.—The reserve ratio 

23 requirements under subsection (b) and the phase-in re24 quirements under subsection (d) shall be subject to the 

25 availability of amounts in the National Flood Insurance 
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1 Fund for transfer under section 1310(a)(10), as provided 

2 in section 1310(f).’’. 

3 (b) FUNDING.—Subsection (a) of section 1310 of the 

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

5 4017(a)), as amended by the preceding provisions of this 

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

7 new paragraph: 

8 ‘‘(10) for transfers to the National Flood Insur9 ance Reserve Fund under section 1310A, in accord10 ance with such section.’’. 

11 SEC. 366. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT12 REACH ACTIVITIES AND COMMUNITY BUILD13 ING CODE ADMINISTRATION GRANTS. 

14 Section 105(a) of the Housing and Community De15 velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 

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

17 end; 

18 (2) in paragraph (25), by striking the period at 

19 the end and inserting a semicolon; and 

20 (3) by adding at the end the following new 

21 paragraphs: 

22 ‘‘(26) supplementing existing State or local 

23 funding for administration of building code enforce24 ment by local building code enforcement depart25 ments, including for increasing staffing, providing 
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1 staff training, increasing staff competence and pro2 fessional qualifications, and supporting individual 

3 certification or departmental accreditation, and for 

4 capital expenditures specifically dedicated to the ad5 ministration of the building code enforcement de6 partment, except that, to be eligible to use amounts 

7 as provided in this paragraph— 

8 ‘‘(A) a building code enforcement depart9 ment shall provide matching, non-Federal funds 

10 to be used in conjunction with amounts used 

11 under this paragraph in an amount— 

12 ‘‘(i) in the case of a building code en13 forcement department serving an area with 

14 a population of more than 50,000, equal to 

15 not less than 50 percent of the total 

16 amount of any funds made available under 

17 this title that are used under this para18 graph; 

19 ‘‘(ii) in the case of a building code en20 forcement department serving an area with 

21 a population of between 20,001 and 

22 50,000, equal to not less than 25 percent 

23 of the total amount of any funds made 

24 available under this title that are used 

25 under this paragraph; and 
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1 ‘‘(iii) in the case of a building code 

2 enforcement department serving an area 

3 with a population of less than 20,000, 

4 equal to not less than 12.5 percent of the 

5 total amount of any funds made available 

6 under this title that are used under this 

7 paragraph, 

8 except that the Secretary may waive the match9 ing fund requirements under this subparagraph, 

10 in whole or in part, based upon the level of eco11 nomic distress of the jurisdiction in which is lo12 cated the local building code enforcement de13 partment that is using amounts for purposes 

14 under this paragraph, and shall waive such 

15 matching fund requirements in whole for any 

16 recipient jurisdiction that has dedicated all 

17 building code permitting fees to the conduct of 

18 local building code enforcement; and 

19 ‘‘(B) any building code enforcement de20 partment using funds made available under this 

21 title for purposes under this paragraph shall 

22 empanel a code administration and enforcement 

23 team consisting of at least 1 full-time building 

24 code enforcement officer, a city planner, and a 

25 health planner or similar officer; and 
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1 ‘‘(27) provision of assistance to local govern2 mental agencies responsible for floodplain manage3 ment activities (including such agencies of Indians 

4 tribes, as such term is defined in section 4 of the 

5 Native American Housing Assistance and Self-De6 termination Act of 1996 (25 U.S.C. 4103)) in com7 munities that participate in the national flood insur8 ance program under the National Flood Insurance 

9 Act of 1968 (42 U.S.C. 4001 et seq.), only for car10 rying out outreach activities to encourage and facili11 tate the purchase of flood insurance protection 

12 under such Act by owners and renters of properties 

13 in such communities and to promote educational ac14 tivities that increase awareness of flood risk reduc15 tion; except that— 

16 ‘‘(A) amounts used as provided under this 

17 paragraph shall be used only for activities de18 signed to— 

19 ‘‘(i) identify owners and renters of 

20 properties in communities that participate 

21 in the national flood insurance program, 

22 including owners of residential and com23 mercial properties; 

24 ‘‘(ii) notify such owners and renters 

25 when their properties become included in, 
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1 or when they are excluded from, an area 

2 having special flood hazards and the effect 

3 of such inclusion or exclusion on the appli4 cability of the mandatory flood insurance 

5 purchase requirement under section 102 of 

6 the Flood Disaster Protection Act of 1973 

7 (42 U.S.C. 4012a) to such properties; 

8 ‘‘(iii) educate such owners and renters 

9 regarding the flood risk and reduction of 

10 this risk in their community, including the 

11 continued flood risks to areas that are no 

12 longer subject to the flood insurance man13 datory purchase requirement; 

14 ‘‘(iv) educate such owners and renters 

15 regarding the benefits and costs of main16 taining or acquiring flood insurance, in17 cluding, where applicable, lower-cost pre18 ferred risk policies under this title for such 

19 properties and the contents of such prop20 erties; 

21 ‘‘(v) encourage such owners and rent22 ers to maintain or acquire such coverage; 

23 ‘‘(vi) notify such owners of where to 

24 obtain information regarding how to obtain 

25 such coverage, including a telephone num-
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1 ber, mailing address, and Internet site of 

2 the Administrator of the Federal Emer3 gency Management Agency (in this para4 graph referred to as the ‘Administrator’) 

5 where such information is available; and 

6 ‘‘(vii) educate local real estate agents 

7 in communities participating in the na8 tional flood insurance program regarding 

9 the program and the availability of cov10 erage under the program for owners and 

11 renters of properties in such communities, 

12 and establish coordination and liaisons 

13 with such real estate agents to facilitate 

14 purchase of coverage under the National 

15 Flood Insurance Act of 1968 and increase 

16 awareness of flood risk reduction; 

17 ‘‘(B) in any fiscal year, a local govern18 mental agency may not use an amount under 

19 this paragraph that exceeds 3 times the amount 

20 that the agency certifies, as the Secretary, in 

21 consultation with the Administrator, shall re22 quire, that the agency will contribute from non23 Federal funds to be used with such amounts 

24 used under this paragraph only for carrying out 

25 activities described in subparagraph (A); and 
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1 for purposes of this subparagraph, the term 

2 ‘non-Federal funds’ includes State or local gov3 ernment agency amounts, in-kind contributions, 

4 any salary paid to staff to carry out the eligible 

5 activities of the local governmental agency in6 volved, the value of the time and services con7 tributed by volunteers to carry out such services 

8 (at a rate determined by the Secretary), and 

9 the value of any donated material or building 

10 and the value of any lease on a building; 

11 ‘‘(C) a local governmental agency that uses 

12 amounts as provided under this paragraph may 

13 coordinate or contract with other agencies and 

14 entities having particular capacities, specialties, 

15 or experience with respect to certain popu16 lations or constituencies, including elderly or 

17 disabled families or persons, to carry out activi18 ties described in subparagraph (A) with respect 

19 to such populations or constituencies; and 

20 ‘‘(D) each local government agency that 

21 uses amounts as provided under this paragraph 

22 shall submit a report to the Secretary and the 

23 Administrator, not later than 12 months after 

24 such amounts are first received, which shall in25 clude such information as the Secretary and the 
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1 Administrator jointly consider appropriate to 

2 describe the activities conducted using such 

3 amounts and the effect of such activities on the 

4 retention or acquisition of flood insurance cov5 erage.’’. 

6 SEC. 367. TECHNICAL CORRECTIONS. 

7 (a) FLOOD DISASTER PROTECTION ACT OF 1973.— 

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

9 4002 et seq.) is amended— 

10 (1) by striking ‘‘Director’’ each place such term 

11 appears, except in section 102(f)(3) (42 U.S.C. 

12 4012a(f)(3)), and inserting ‘‘Administrator’’; and 

13 (2) in section 201(b) (42 U.S.C. 4105(b)), by 

14 striking ‘‘Director’s’’ and inserting ‘‘Administra15 tor’s’’. 

16 (b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 

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

18 4001 et seq.) is amended— 

19 (1) by striking ‘‘Director’’ each place such term 

20 appears and inserting ‘‘Administrator’’; and 

21 (2) in section 1363 (42 U.S.C. 4104), by strik22 ing ‘‘Director’s’’ each place such term appears and 

23 inserting ‘‘Administrator’s’’. 

24 (c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 

25 Section 15(e) of the Federal Flood Insurance Act of 1956 
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1 (42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 

2 each place such term appears and inserting ‘‘Adminis3 trator’’. 

4 SEC. 368. REQUIRING COMPETITION FOR NATIONAL FLOOD 

5 INSURANCE PROGRAM POLICIES. 

6 (a) REPORT.—Not later than the expiration of the 

7 90-day period beginning upon the date of the enactment 

8 of this Act, the Administrator of the Federal Emergency 

9 Management Agency, in consultation with insurance com10 panies, insurance agents and other organizations with 

11 which the Administrator has contracted, shall submit to 

12 the Congress a report describing procedures and policies 

13 that the Administrator shall implement to limit the per14 centage of policies for flood insurance coverage under the 

15 national flood insurance program that are directly man16 aged by the Agency to not more than 10 percent of the 

17 aggregate number of flood insurance policies in force 

18 under such program. 

19 (b) IMPLEMENTATION.—Upon submission of the re20 port under subsection (a) to the Congress, the Adminis21 trator shall implement the policies and procedures de22 scribed in the report. The Administrator shall, not later 

23 than the expiration of the 12-month period beginning 

24 upon submission of such report, reduce the number of 

25 policies for flood insurance coverage that are directly man-
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1 aged by the Agency, or by the Agency’s direct servicing 

2 contractor that is not an insurer, to not more than 10 

3 percent of the aggregate number of flood insurance poli4 cies in force as of the expiration of such 12-month period. 

5 (c) CONTINUATION OF CURRENT AGENT RELATION6 SHIPS.—In carrying out subsection (b), the Administrator 

7 shall ensure that— 

8 (1) agents selling or servicing policies described 

9 in such subsection are not prevented from con10 tinuing to sell or service such policies; and 

11 (2) insurance companies are not prevented from 

12 waiving any limitation such companies could other13 wise enforce to limit any such activity. 

14 SEC. 369. STUDIES OF VOLUNTARY COMMUNITY-BASED 

15 FLOOD INSURANCE OPTIONS. 

16 (a) STUDIES.—The Administrator of the Federal 

17 Emergency Management Agency and the Comptroller 

18 General of the United States shall each conduct a separate 

19 study to assess options, methods, and strategies for offer20 ing voluntary community-based flood insurance policy op21 tions and incorporating such options into the national 

22 flood insurance program. Such studies shall take into con23 sideration and analyze how the policy options would affect 

24 communities having varying economic bases, geographic 
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1 locations, flood hazard characteristics or classifications, 

2 and flood management approaches. 

3 (b) REPORTS.—Not later than the expiration of the 

4 18-month period beginning on the date of the enactment 

5 of this Act, the Administrator of the Federal Emergency 

6 Management Agency and the Comptroller General of the 

7 United States shall each submit a report to the Committee 

8 on Financial Services of the House of Representatives and 

9 the Committee on Banking, Housing, and Urban Affairs 

10 of the Senate on the results and conclusions of the study 

11 such agency conducted under subsection (a), and each 

12 such report shall include recommendations for the best 

13 manner to incorporate voluntary community-based flood 

14 insurance options into the national flood insurance pro15 gram and for a strategy to implement such options that 

16 would encourage communities to undertake flood mitiga17 tion activities. 

18 SEC. 370. REPORT ON INCLUSION OF BUILDING CODES IN 

19 FLOODPLAIN MANAGEMENT CRITERIA. 

20 Not later than the expiration of the 6-month period 

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

22 Administrator of the Federal Emergency Management 

23 Agency shall conduct a study and submit a report to the 

24 Committee on Financial Services of the House of Rep25 resentatives and the Committee on Banking, Housing, and 
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1 Urban Affairs of the Senate regarding the impact, effec2 tiveness, and feasibility of amending section 1361 of the 

3 National Flood Insurance Act of 1968 (42 U.S.C. 4102) 

4 to include widely used and nationally recognized building 

5 codes as part of the floodplain management criteria devel6 oped under such section, and shall determine— 

7 (1) the regulatory, financial, and economic im8 pacts of such a building code requirement on home9 owners, States and local communities, local land use 

10 policies, and the Federal Emergency Management 

11 Agency; 

12 (2) the resources required of State and local 

13 communities to administer and enforce such a build14 ing code requirement; 

15 (3) the effectiveness of such a building code re16 quirement in reducing flood-related damage to build17 ings and contents; 

18 (4) the impact of such a building code require19 ment on the actuarial soundness of the National 

20 Flood Insurance Program; 

21 (5) the effectiveness of nationally recognized 

22 codes in allowing innovative materials and systems 

23 for flood-resistant construction; 

24 (6) the feasibility and effectiveness of providing 

25 an incentive in lower premium rates for flood insur-
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1 ance coverage under such Act for structures meeting 

2 whichever of such widely used and nationally recog3 nized building code or any applicable local building 

4 code provides greater protection from flood damage; 

5 (7) the impact of such a building code require6 ment on rural communities with different building 

7 code challenges than more urban environments; and 

8 (8) the impact of such a building code require9 ment on Indian reservations. 

10 SEC. 371. STUDY ON GRADUATED RISK. 

11 (a) STUDY.—The National Academy of Sciences shall 

12 conduct a study exploring methods for understanding 

13 graduated risk behind levees and the associated land de14 velopment, insurance, and risk communication dimensions, 

15 which shall— 

16 (1) research, review, and recommend current 

17 best practices for estimating direct annualized flood 

18 losses behind levees for residential and commercial 

19 structures; 

20 (2) rank such practices based on their best 

21 value, balancing cost, scientific integrity, and the in22 herent uncertainties associated with all aspects of 

23 the loss estimate, including geotechnical engineering, 

24 flood frequency estimates, economic value, and direct 

25 damages; 
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1 (3) research, review, and identify current best 

2 floodplain management and land use practices be3 hind levees that effectively balance social, economic, 

4 and environmental considerations as part of an over5 all flood risk management strategy; 

6 (4) identify examples where such practices have 

7 proven effective and recommend methods and proc8 esses by which they could be applied more broadly 

9 across the United States, given the variety of dif10 ferent flood risks, State and local legal frameworks, 

11 and evolving judicial opinions; 

12 (5) research, review, and identify a variety of 

13 flood insurance pricing options for flood hazards be14 hind levees which are actuarially sound and based on 

15 the flood risk data developed using the top three 

16 best value approaches identified pursuant to para17 graph (1); 

18 (6) evaluate and recommend methods to reduce 

19 insurance costs through creative arrangements be20 tween insureds and insurers while keeping a clear 

21 accounting of how much financial risk is being borne 

22 by various parties such that the entire risk is ac23 counted for, including establishment of explicit limits 

24 on disaster aid or other assistance in the event of a 

25 flood; and 
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1 (7) taking into consideration the recommenda2 tions pursuant to paragraphs (1) through (3), rec3 ommend approaches to communicating the associ4 ated risks to community officials, homeowners, and 

5 other residents. 

6 (b) REPORT.—Not later than the expiration of the 

7 12-month period beginning on the date of the enactment 

8 of this Act, the National Academy of Sciences shall submit 

9 a report to the Committees on Financial Services and 

10 Science, Space, and Technology of the House of Rep11 resentatives and the Committees on Banking, Housing, 

12 and Urban Affairs and Commerce, Science and Transpor13 tation of the Senate on the study under subsection (a) in14 cluding the information and recommendations required 

15 under such subsection. 

16 SEC. 372. REPORT ON FLOOD-IN-PROGRESS DETERMINA17 TION. 

18 The Administrator of the Federal Emergency Man19 agement Agency shall review the processes and procedures 

20 for determining that a flood event has commenced or is 

21 in progress for purposes of flood insurance coverage made 

22 available under the national flood insurance program 

23 under the National Flood Insurance Act of 1968 and for 

24 providing public notification that such an event has com25 menced or is in progress. In such review, the Adminis-
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1 trator shall take into consideration the effects and implica2 tions that weather conditions, such as rainfall, snowfall, 

3 projected snowmelt, existing water levels, and other condi4 tions have on the determination that a flood event has 

5 commenced or is in progress. Not later than the expiration 

6 of the 6-month period beginning upon the date of the en7 actment of this Act, the Administrator shall submit a re8 port to the Congress setting forth the results and conclu9 sions of the review undertaken pursuant to this section 

10 and any actions undertaken or proposed actions to be 

11 taken to provide for a more precise and technical deter12 mination that a flooding event has commenced or is in 

13 progress. 

14 SEC. 373. STUDY ON REPAYING FLOOD INSURANCE DEBT. 

15 Not later than the expiration of the 6-month period 

16 beginning on the date of the enactment of this Act, the 

17 Administrator of the Federal Emergency Management 

18 Agency shall submit a report to the Congress setting forth 

19 a plan for repaying within 10 years all amounts, including 

20 any amounts previously borrowed but not yet repaid, owed 

21 pursuant to clause (2) of subsection (a) of section 1309 

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

23 4016(a)(2)). 
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1 SEC. 374. NO CAUSE OF ACTION. 

2 No cause of action shall exist and no claim may be 

3 brought against the United States for violation of any no4 tification requirement imposed upon the United States by 

5 this subtitle or any amendment made by this subtitle. 

6 SEC. 375. AUTHORITY FOR THE CORPS OF ENGINEERS TO 

7 PROVIDE SPECIALIZED OR TECHNICAL SERV8 ICES. 

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, upon the request of a State or local govern11 ment, the Secretary of the Army may evaluate a levee sys12 tem that was designed or constructed by the Secretary for 

13 the purposes of the National Flood Insurance Program es14 tablished under chapter 1 of the National Flood Insurance 

15 Act of 1968 (42 U.S.C. 4011 et seq.). 

16 (b) REQUIREMENTS.—A levee system evaluation 

17 under subsection (a) shall— 

18 (1) comply with applicable regulations related 

19 to areas protected by a levee system; 

20 (2) be carried out in accordance with such pro21 cedures as the Secretary, in consultation with the 

22 Administrator of the Federal Emergency Manage23 ment Agency, may establish; and 

24 (3) be carried out only if the State or local gov25 ernment agrees to reimburse the Secretary for all 
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1 cost associated with the performance of the activi2 ties. 

3 Subtitle E—Repeal of the Office of 

4 Financial Research 

5 SEC. 381. REPEAL OF THE OFFICE OF FINANCIAL RE6 SEARCH. 

7 (a) IN GENERAL.—Subtitle B of title I of the Dodd8 Frank Wall Street Reform and Consumer Protection Act 

9 is hereby repealed. 

10 (b) CONFORMING AMENDMENTS TO THE DODD11 FRANK ACT.—The Dodd-Frank Wall Street Reform and 

12 Consumer Protection Act is amended— 

13 (1) in section 102(a), by striking paragraph 

14 (5); 

15 (2) in section 111— 

16 (A) in subsection (b)(2)— 

17 (i) by striking subparagraph (A); and 

18 (ii) by redesignating subparagraphs 

19 (B), (C), (D), and (E) as subparagraphs 

20 (A), (B), (C), and (D), respectively; 

21 (B) in subsection (c)(1), by striking ‘‘sub22 paragraphs (C), (D), and (E)’’ and inserting 

23 ‘‘subparagraphs (B), (C), and (D)’’; 

24 (3) in section 112— 

25 (A) in subsection (a)(2)— 
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1 (i) in subparagraph (A), by striking 

2 ‘‘direct the Office of Financial Research 

3 to’’; 

4 (ii) by striking subparagraph (B); and 

5 (iii) by redesignating subparagraphs 

6 (C), (D), (E), (F), (G), (H), (I), (J), (K), 

7 (L), (M), and (N) as subparagraphs (B), 

8 (C), (D), (E), (F), (G), (H), (I), (J), (K), 

9 (L), and (M), respectively; and 

10 (B) in subsection (d)— 

11 (i) in paragraph (1), by striking ‘‘the 

12 Office of Financial Research, member 

13 agencies, and’’ and inserting ‘‘member 

14 agencies and’’; 

15 (ii) in paragraph (2), by striking ‘‘the 

16 Office of Financial Research, any member 

17 agency, and’’ and inserting ‘‘any member 

18 agency and’’; 

19 (iii) in paragraph (3)— 

20 (I) by striking ‘‘, acting through 

21 the Office of Financial Research,’’ 

22 each place it appears; and 

23 (II) in subparagraph (B), by 

24 striking ‘‘the Office of Financial Re25 search or’’; and 
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1 (iv) in paragraph (5)(A), by striking 

2 ‘‘, the Office of Financial Research,’’; 

3 (4) in section 116, by striking ‘‘, acting through 

4 the Office of Financial Research,’’ each place it ap5 pears; and 

6 (5) by striking section 118. 

7 (c) CONFORMING AMENDMENT TO THE PAPERWORK

8 REDUCTION ACT.—Effective as of the date specified in 

9 section 1100H of the Dodd-Frank Wall Street Reform and 

10 Consumer Protection Act, section 1100D(a) of such Act 

11 is amended to read as follows: 

12 ‘‘(a) DESIGNATION AS AN INDEPENDENT AGENCY.— 

13 Section 3502(5) of subchapter I of chapter 35 of title 44, 

14 United States Code (commonly known as the Paperwork 

15 Reduction Act) is amended by inserting ‘the Bureau of 

16 Consumer Financial Protection,’ after ‘the Securities and 

17 Exchange Commission,’.’’. 

18 (d) TECHNICAL AMENDMENTS.—The table of con19 tents for the Dodd-Frank Wall Street Reform and Con20 sumer Protection Act is amended— 

21 (1) by striking the item relating to section 118; 

22 and 

23 (2) by striking the items relating to subtitle B 

24 of title I. 
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1 TITLE IV—COMMITTEE ON THE 

2 JUDICIARY 

3 SEC. 401. SHORT TITLE. 

4 This title may be cited as the ‘‘Help Efficient, Acces5 sible, Low-cost, Timely Healthcare (HEALTH) Act of 

6 2011’’. 

7 SEC. 402. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS. 

8 The time for the commencement of a health care law9 suit shall be 3 years after the date of manifestation of 

10 injury or 1 year after the claimant discovers, or through 

11 the use of reasonable diligence should have discovered, the 

12 injury, whichever occurs first. In no event shall the time 

13 for commencement of a health care lawsuit exceed 3 years 

14 after the date of manifestation of injury unless tolled for 

15 any of the following— 

16 (1) upon proof of fraud; 

17 (2) intentional concealment; or 

18 (3) the presence of a foreign body, which has no 

19 therapeutic or diagnostic purpose or effect, in the 

20 person of the injured person. 

21 Actions by a minor shall be commenced within 3 years 

22 from the date of the alleged manifestation of injury except 

23 that actions by a minor under the full age of 6 years shall 

24 be commenced within 3 years of manifestation of injury 

25 or prior to the minor’s 8th birthday, whichever provides 
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1 a longer period. Such time limitation shall be tolled for 

2 minors for any period during which a parent or guardian 

3 and a health care provider or health care organization 

4 have committed fraud or collusion in the failure to bring 

5 an action on behalf of the injured minor. 

6 SEC. 403. COMPENSATING PATIENT INJURY. 

7 (a) UNLIMITED AMOUNT OF DAMAGES FOR ACTUAL

8 ECONOMIC LOSSES IN HEALTH CARE LAWSUITS.—In any 

9 health care lawsuit, nothing in this title shall limit a claim10 ant’s recovery of the full amount of the available economic 

11 damages, notwithstanding the limitation in subsection (b). 

12 (b) ADDITIONAL NONECONOMIC DAMAGES.—In any 

13 health care lawsuit, the amount of noneconomic damages, 

14 if available, may be as much as $250,000, regardless of 

15 the number of parties against whom the action is brought 

16 or the number of separate claims or actions brought with 

17 respect to the same injury. 

18 (c) NO DISCOUNT OF AWARD FOR NONECONOMIC

19 DAMAGES.—For purposes of applying the limitation in 

20 subsection (b), future noneconomic damages shall not be 

21 discounted to present value. The jury shall not be in22 formed about the maximum award for noneconomic dam23 ages. An award for noneconomic damages in excess of 

24 $250,000 shall be reduced either before the entry of judg25 ment, or by amendment of the judgment after entry of 
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1 judgment, and such reduction shall be made before ac2 counting for any other reduction in damages required by 

3 law. If separate awards are rendered for past and future 

4 noneconomic damages and the combined awards exceed 

5 $250,000, the future noneconomic damages shall be re6 duced first. 

7 (d) FAIR SHARE RULE.—In any health care lawsuit, 

8 each party shall be liable for that party’s several share 

9 of any damages only and not for the share of any other 

10 person. Each party shall be liable only for the amount of 

11 damages allocated to such party in direct proportion to 

12 such party’s percentage of responsibility. Whenever a 

13 judgment of liability is rendered as to any party, a sepa14 rate judgment shall be rendered against each such party 

15 for the amount allocated to such party. For purposes of 

16 this section, the trier of fact shall determine the propor17 tion of responsibility of each party for the claimant’s 

18 harm. 

19 SEC. 404. MAXIMIZING PATIENT RECOVERY. 

20 (a) COURT SUPERVISION OF SHARE OF DAMAGES

21 ACTUALLY PAID TO CLAIMANTS.—In any health care law22 suit, the court shall supervise the arrangements for pay23 ment of damages to protect against conflicts of interest 

24 that may have the effect of reducing the amount of dam25 ages awarded that are actually paid to claimants. In par-
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1 ticular, in any health care lawsuit in which the attorney 

2 for a party claims a financial stake in the outcome by vir3 tue of a contingent fee, the court shall have the power 

4 to restrict the payment of a claimant’s damage recovery 

5 to such attorney, and to redirect such damages to the 

6 claimant based upon the interests of justice and principles 

7 of equity. In no event shall the total of all contingent fees 

8 for representing all claimants in a health care lawsuit ex9 ceed the following limits: 

10 (1) Forty percent of the first $50,000 recovered 

11 by the claimant(s). 

12 (2) Thirty-three and one-third percent of the 

13 next $50,000 recovered by the claimant(s). 

14 (3) Twenty-five percent of the next $500,000 

15 recovered by the claimant(s). 

16 (4) Fifteen percent of any amount by which the 

17 recovery by the claimant(s) is in excess of $600,000. 

18 (b) APPLICABILITY.—The limitations in this section 

19 shall apply whether the recovery is by judgment, settle20 ment, mediation, arbitration, or any other form of alter21 native dispute resolution. In a health care lawsuit involv22 ing a minor or incompetent person, a court retains the 

23 authority to authorize or approve a fee that is less than 

24 the maximum permitted under this section. The require-
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1 ment for court supervision in the first two sentences of 

2 subsection (a) applies only in civil actions. 

3 SEC. 405. PUNITIVE DAMAGES. 

4 (a) IN GENERAL.—Punitive damages may, if other5 wise permitted by applicable State or Federal law, be 

6 awarded against any person in a health care lawsuit only 

7 if it is proven by clear and convincing evidence that such 

8 person acted with malicious intent to injure the claimant, 

9 or that such person deliberately failed to avoid unneces10 sary injury that such person knew the claimant was sub11 stantially certain to suffer. In any health care lawsuit 

12 where no judgment for compensatory damages is rendered 

13 against such person, no punitive damages may be awarded 

14 with respect to the claim in such lawsuit. No demand for 

15 punitive damages shall be included in a health care lawsuit 

16 as initially filed. A court may allow a claimant to file an 

17 amended pleading for punitive damages only upon a mo18 tion by the claimant and after a finding by the court, upon 

19 review of supporting and opposing affidavits or after a 

20 hearing, after weighing the evidence, that the claimant has 

21 established by a substantial probability that the claimant 

22 will prevail on the claim for punitive damages. At the re23 quest of any party in a health care lawsuit, the trier of 

24 fact shall consider in a separate proceeding— 
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1 (1) whether punitive damages are to be award2 ed and the amount of such award; and 

3 (2) the amount of punitive damages following a 

4 determination of punitive liability. 

5 If a separate proceeding is requested, evidence relevant 

6 only to the claim for punitive damages, as determined by 

7 applicable State law, shall be inadmissible in any pro8 ceeding to determine whether compensatory damages are 

9 to be awarded. 

10 (b) DETERMINING AMOUNT OF PUNITIVE DAM11 AGES.— 

12 (1) FACTORS CONSIDERED.—In determining 

13 the amount of punitive damages, if awarded, in a 

14 health care lawsuit, the trier of fact shall consider 

15 only the following— 

16 (A) the severity of the harm caused by the 

17 conduct of such party; 

18 (B) the duration of the conduct or any 

19 concealment of it by such party; 

20 (C) the profitability of the conduct to such 

21 party; 

22 (D) the number of products sold or med23 ical procedures rendered for compensation, as 

24 the case may be, by such party, of the kind 
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1 causing the harm complained of by the claim2 ant; 

3 (E) any criminal penalties imposed on such 

4 party, as a result of the conduct complained of 

5 by the claimant; and 

6 (F) the amount of any civil fines assessed 

7 against such party as a result of the conduct 

8 complained of by the claimant. 

9 (2) MAXIMUM AWARD.—The amount of punitive 

10 damages, if awarded, in a health care lawsuit may 

11 be as much as $250,000 or as much as two times 

12 the amount of economic damages awarded, which13 ever is greater. The jury shall not be informed of 

14 this limitation. 

15 (c) NO PUNITIVE DAMAGES FOR PRODUCTS THAT

16 COMPLY WITH FDA STANDARDS.— 

17 (1) IN GENERAL.— 

18 (A) No punitive damages may be awarded 

19 against the manufacturer or distributor of a 

20 medical product, or a supplier of any compo21 nent or raw material of such medical product, 

22 based on a claim that such product caused the 

23 claimant’s harm where— 

24 (i)(I) such medical product was sub25 ject to premarket approval, clearance, or li-
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1 censure by the Food and Drug Administra2 tion with respect to the safety of the for3 mulation or performance of the aspect of 

4 such medical product which caused the 

5 claimant’s harm or the adequacy of the 

6 packaging or labeling of such medical 

7 product; and 

8 (II) such medical product was so ap9 proved, cleared, or licensed; or 

10 (ii) such medical product is generally 

11 recognized among qualified experts as safe 

12 and effective pursuant to conditions estab13 lished by the Food and Drug Administra14 tion and applicable Food and Drug Admin15 istration regulations, including without 

16 limitation those related to packaging and 

17 labeling, unless the Food and Drug Admin18 istration has determined that such medical 

19 product was not manufactured or distrib20 uted in substantial compliance with appli21 cable Food and Drug Administration stat22 utes and regulations. 

23 (B) RULE OF CONSTRUCTION.—Subpara24 graph (A) may not be construed as establishing 

25 the obligation of the Food and Drug Adminis-
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1 tration to demonstrate affirmatively that a 

2 manufacturer, distributor, or supplier referred 

3 to in such subparagraph meets any of the con4 ditions described in such subparagraph. 

5 (2) LIABILITY OF HEALTH CARE PROVIDERS.— 

6 A health care provider who prescribes, or who dis7 penses pursuant to a prescription, a medical product 

8 approved, licensed, or cleared by the Food and Drug 

9 Administration shall not be named as a party to a 

10 product liability lawsuit involving such product and 

11 shall not be liable to a claimant in a class action 

12 lawsuit against the manufacturer, distributor, or 

13 seller of such product. Nothing in this paragraph 

14 prevents a court from consolidating cases involving 

15 health care providers and cases involving products li16 ability claims against the manufacturer, distributor, 

17 or product seller of such medical product. 

18 (3) PACKAGING.—In a health care lawsuit for 

19 harm which is alleged to relate to the adequacy of 

20 the packaging or labeling of a drug which is required 

21 to have tamper-resistant packaging under regula22 tions of the Secretary of Health and Human Serv23 ices (including labeling regulations related to such 

24 packaging), the manufacturer or product seller of 

25 the drug shall not be held liable for punitive dam-
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1 ages unless such packaging or labeling is found by 

2 the trier of fact by clear and convincing evidence to 

3 be substantially out of compliance with such regula4 tions. 

5 (4) EXCEPTION.—Paragraph (1) shall not 

6 apply in any health care lawsuit in which— 

7 (A) a person, before or after premarket ap8 proval, clearance, or licensure of such medical 

9 product, knowingly misrepresented to or with10 held from the Food and Drug Administration 

11 information that is required to be submitted 

12 under the Federal Food, Drug, and Cosmetic 

13 Act (21 U.S.C. 301 et seq.) or section 351 of 

14 the Public Health Service Act (42 U.S.C. 262) 

15 that is material and is causally related to the 

16 harm which the claimant allegedly suffered 

17 (B) a person made an illegal payment to 

18 an official of the Food and Drug Administra19 tion for the purpose of either securing or main20 taining approval, clearance, or licensure of such 

21 medical product; or 

22 (C) the defendant caused the medical prod23 uct which caused the claimant’s harm to be 

24 misbranded or adulterated (as such terms are 
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1 used in chapter V of the Federal Food, Drug, 

2 and Cosmetic Act (21 U.S.C. 351 et seq.)). 

3 SEC. 406. AUTHORIZATION OF PAYMENT OF FUTURE DAM4 AGES TO CLAIMANTS IN HEALTH CARE LAW5 SUITS. 

6 (a) IN GENERAL.—In any health care lawsuit, if an 

7 award of future damages, without reduction to present 

8 value, equaling or exceeding $50,000 is made against a 

9 party with sufficient insurance or other assets to fund a 

10 periodic payment of such a judgment, the court shall, at 

11 the request of any party, enter a judgment ordering that 

12 the future damages be paid by periodic payments, in ac13 cordance with the Uniform Periodic Payment of Judg14 ments Act promulgated by the National Conference of 

15 Commissioners on Uniform State Laws. 

16 (b) APPLICABILITY.—This section applies to all ac17 tions which have not been first set for trial or retrial be18 fore the effective date of this title. 

19 SEC. 407. DEFINITIONS. 

20 In this title: 

21 (1) ALTERNATIVE DISPUTE RESOLUTION SYS22 TEM; ADR.—The term ‘‘alternative dispute resolution 

23 system’’ or ‘‘ADR’’ means a system that provides 

24 for the resolution of health care lawsuits in a man-
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1 ner other than through a civil action brought in a 

2 State or Federal court. 

3 (2) CLAIMANT.—The term ‘‘claimant’’ means 

4 any person who brings a health care lawsuit, includ5 ing a person who asserts or claims a right to legal 

6 or equitable contribution, indemnity, or subrogation, 

7 arising out of a health care liability claim or action, 

8 and any person on whose behalf such a claim is as9 serted or such an action is brought, whether de10 ceased, incompetent, or a minor. 

11 (3) COMPENSATORY DAMAGES.—The term 

12 ‘‘compensatory damages’’ means objectively 

13 verifiable monetary losses incurred as a result of the 

14 provision of, use of, or payment for (or failure to 

15 provide, use, or pay for) health care services or med16 ical products, such as past and future medical ex17 penses, loss of past and future earnings, cost of ob18 taining domestic services, loss of employment, and 

19 loss of business or employment opportunities, dam20 ages for physical and emotional pain, suffering, in21 convenience, physical impairment, mental anguish, 

22 disfigurement, loss of enjoyment of life, loss of soci23 ety and companionship, loss of consortium (other 

24 than loss of domestic service), hedonic damages, in25 jury to reputation, and all other nonpecuniary losses 
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1 of any kind or nature. The term ‘‘compensatory 

2 damages’’ includes economic damages and non3 economic damages, as such terms are defined in this 

4 section. 

5 (4) CONTINGENT FEE.—The term ‘‘contingent 

6 fee’’ includes all compensation to any person or per7 sons which is payable only if a recovery is effected 

8 on behalf of one or more claimants. 

9 (5) ECONOMIC DAMAGES.—The term ‘‘economic 

10 damages’’ means objectively verifiable monetary 

11 losses incurred as a result of the provision of, use 

12 of, or payment for (or failure to provide, use, or pay 

13 for) health care services or medical products, such as 

14 past and future medical expenses, loss of past and 

15 future earnings, cost of obtaining domestic services, 

16 loss of employment, and loss of business or employ17 ment opportunities. 

18 (6) HEALTH CARE LAWSUIT.—The term 

19 ‘‘health care lawsuit’’ means any health care liability 

20 claim concerning the provision of health care goods 

21 or services or any medical product affecting inter22 state commerce, or any health care liability action 

23 concerning the provision of health care goods or 

24 services or any medical product affecting interstate 

25 commerce, brought in a State or Federal court or 
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1 pursuant to an alternative dispute resolution system, 

2 against a health care provider, a health care organi3 zation, or the manufacturer, distributor, supplier, 

4 marketer, promoter, or seller of a medical product, 

5 regardless of the theory of liability on which the 

6 claim is based, or the number of claimants, plain7 tiffs, defendants, or other parties, or the number of 

8 claims or causes of action, in which the claimant al9 leges a health care liability claim. Such term does 

10 not include a claim or action which is based on 

11 criminal liability; which seeks civil fines or penalties 

12 paid to Federal, State, or local government; or which 

13 is grounded in antitrust. 

14 (7) HEALTH CARE LIABILITY ACTION.—The 

15 term ‘‘health care liability action’’ means a civil ac16 tion brought in a State or Federal court or pursuant 

17 to an alternative dispute resolution system, against 

18 a health care provider, a health care organization, or 

19 the manufacturer, distributor, supplier, marketer, 

20 promoter, or seller of a medical product, regardless 

21 of the theory of liability on which the claim is based, 

22 or the number of plaintiffs, defendants, or other par23 ties, or the number of causes of action, in which the 

24 claimant alleges a health care liability claim. 
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1 (8) HEALTH CARE LIABILITY CLAIM.—The 

2 term ‘‘health care liability claim’’ means a demand 

3 by any person, whether or not pursuant to ADR, 

4 against a health care provider, health care organiza5 tion, or the manufacturer, distributor, supplier, mar6 keter, promoter, or seller of a medical product, in7 cluding, but not limited to, third-party claims, cross8 claims, counter-claims, or contribution claims, which 

9 are based upon the provision of, use of, or payment 

10 for (or the failure to provide, use, or pay for) health 

11 care services or medical products, regardless of the 

12 theory of liability on which the claim is based, or the 

13 number of plaintiffs, defendants, or other parties, or 

14 the number of causes of action. 

15 (9) HEALTH CARE ORGANIZATION.—The term 

16 ‘‘health care organization’’ means any person or en17 tity which is obligated to provide or pay for health 

18 benefits under any health plan, including any person 

19 or entity acting under a contract or arrangement 

20 with a health care organization to provide or admin21 ister any health benefit. 

22 (10) HEALTH CARE PROVIDER.—The term 

23 ‘‘health care provider’’ means any person or entity 

24 required by State or Federal laws or regulations to 

25 be licensed, registered, or certified to provide health 
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1 care services, and being either so licensed, reg2 istered, or certified, or exempted from such require3 ment by other statute or regulation. 

4 (11) HEALTH CARE GOODS OR SERVICES.—The 

5 term ‘‘health care goods or services’’ means any 

6 goods or services provided by a health care organiza7 tion, provider, or by any individual working under 

8 the supervision of a health care provider, that relates 

9 to the diagnosis, prevention, or treatment of any 

10 human disease or impairment, or the assessment or 

11 care of the health of human beings. 

12 (12) MALICIOUS INTENT TO INJURE.—The 

13 term ‘‘malicious intent to injure’’ means inten14 tionally causing or attempting to cause physical in15 jury other than providing health care goods or serv16 ices. 

17 (13) MEDICAL PRODUCT.—The term ‘‘medical 

18 product’’ means a drug, device, or biological product 

19 intended for humans, and the terms ‘‘drug’’, ‘‘de20 vice’’, and ‘‘biological product’’ have the meanings 

21 given such terms in sections 201(g)(1) and 201(h) 

22 of the Federal Food, Drug and Cosmetic Act (21 

23 U.S.C. 321(g)(1) and (h)) and section 351(a) of the 

24 Public Health Service Act (42 U.S.C. 262(a)), re-
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1 spectively, including any component or raw material 

2 used therein, but excluding health care services. 

3 (14) NONECONOMIC DAMAGES.—The term 

4 ‘‘noneconomic damages’’ means damages for phys5 ical and emotional pain, suffering, inconvenience, 

6 physical impairment, mental anguish, disfigurement, 

7 loss of enjoyment of life, loss of society and compan8 ionship, loss of consortium (other than loss of do9 mestic service), hedonic damages, injury to reputa10 tion, and all other nonpecuniary losses of any kind 

11 or nature. 

12 (15) PUNITIVE DAMAGES.—The term ‘‘punitive 

13 damages’’ means damages awarded, for the purpose 

14 of punishment or deterrence, and not solely for com15 pensatory purposes, against a health care provider, 

16 health care organization, or a manufacturer, dis17 tributor, or supplier of a medical product. Punitive 

18 damages are neither economic nor noneconomic 

19 damages. 

20 (16) RECOVERY.—The term ‘‘recovery’’ means 

21 the net sum recovered after deducting any disburse22 ments or costs incurred in connection with prosecu23 tion or settlement of the claim, including all costs 

24 paid or advanced by any person. Costs of health care 

25 incurred by the plaintiff and the attorneys’ office 
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1 overhead costs or charges for legal services are not 

2 deductible disbursements or costs for such purpose. 

3 (17) STATE.—The term ‘‘State’’ means each of 

4 the several States, the District of Columbia, the 

5 Commonwealth of Puerto Rico, the Virgin Islands, 

6 Guam, American Samoa, the Northern Mariana Is7 lands, the Trust Territory of the Pacific Islands, and 

8 any other territory or possession of the United 

9 States, or any political subdivision thereof. 

10 SEC. 408. EFFECT ON OTHER LAWS. 

11 (a) VACCINE INJURY.— 

12 (1) To the extent that title XXI of the Public 

13 Health Service Act establishes a Federal rule of law 

14 applicable to a civil action brought for a vaccine-re15 lated injury or death— 

16 (A) this title does not affect the application 

17 of the rule of law to such an action; and 

18 (B) any rule of law prescribed by this title 

19 in conflict with a rule of law of such title XXI 

20 shall not apply to such action. 

21 (2) If there is an aspect of a civil action 

22 brought for a vaccine-related injury or death to 

23 which a Federal rule of law under title XXI of the 

24 Public Health Service Act does not apply, then this 

25 title or otherwise applicable law (as determined 
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1 under this title) will apply to such aspect of such ac2 tion. 

3 (b) OTHER FEDERAL LAW.—Except as provided in 

4 this section, nothing in this title shall be deemed to affect 

5 any defense available to a defendant in a health care law6 suit or action under any other provision of Federal law. 

7 SEC. 409. STATE FLEXIBILITY AND PROTECTION OF 

8 STATES’ RIGHTS. 

9 (a) HEALTH CARE LAWSUITS.—The provisions gov10 erning health care lawsuits set forth in this title preempt, 

11 subject to subsections (b) and (c), State law to the extent 

12 that State law prevents the application of any provisions 

13 of law established by or under this title. The provisions 

14 governing health care lawsuits set forth in this title super15 sede chapter 171 of title 28, United States Code, to the 

16 extent that such chapter— 

17 (1) provides for a greater amount of damages 

18 or contingent fees, a longer period in which a health 

19 care lawsuit may be commenced, or a reduced appli20 cability or scope of periodic payment of future dam21 ages, than provided in this title; or 

22 (2) prohibits the introduction of evidence re23 garding collateral source benefits, or mandates or 

24 permits subrogation or a lien on collateral source 

25 benefits. 
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1 (b) PROTECTION OF STATES’ RIGHTS AND OTHER

2 LAWS.—(1) Any issue that is not governed by any provi3 sion of law established by or under this title (including 

4 State standards of negligence) shall be governed by other5 wise applicable State or Federal law. 

6 (2) This title shall not preempt or supersede any 

7 State or Federal law that imposes greater procedural or 

8 substantive protections for health care providers and 

9 health care organizations from liability, loss, or damages 

10 than those provided by this title or create a cause of ac11 tion. 

12 (c) STATE FLEXIBILITY.—No provision of this title 

13 shall be construed to preempt— 

14 (1) any State law (whether effective before, on, 

15 or after the date of the enactment of this Act) that 

16 specifies a particular monetary amount of compen17 satory or punitive damages (or the total amount of 

18 damages) that may be awarded in a health care law19 suit, regardless of whether such monetary amount is 

20 greater or lesser than is provided for under this title, 

21 notwithstanding section 303(a); or 

22 (2) any defense available to a party in a health 

23 care lawsuit under any other provision of State or 

24 Federal law. 
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1 SEC. 410. APPLICABILITY; EFFECTIVE DATE. 

2 This title shall apply to any health care lawsuit 

3 brought in a Federal or State court, or subject to an alter4 native dispute resolution system, that is initiated on or 

5 after the date of the enactment of this Act, except that 

6 any health care lawsuit arising from an injury occurring 

7 prior to the date of the enactment of this Act shall be 

8 governed by the applicable statute of limitations provisions 

9 in effect at the time the injury occurred. 

10 TITLE V—COMMITTEE ON OVER11 SIGHT AND GOVERNMENT RE12 FORM 

13 SEC. 501. RETIREMENT CONTRIBUTIONS. 

14 (a) CIVIL SERVICE RETIREMENT SYSTEM.— 

15 (1) INDIVIDUAL CONTRIBUTIONS.—Section 

16 8334(c) of title 5, United States Code, is amended— 

17 (A) by striking ‘‘(c) Each’’ and inserting 

18 ‘‘(c)(1) Each’’; and 

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

20 ‘‘(2) Notwithstanding any other provision of this sub21 section, the applicable percentage of basic pay under this 

22 subsection shall— 

23 ‘‘(A) except as provided in subparagraph (B) or 

24 (C), for purposes of computing an amount— 

25 ‘‘(i) for a period in calendar year 2013, be 

26 equal to the applicable percentage under this 
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1 subsection for calendar year 2012, plus an ad2 ditional 1.5 percentage points; 

3 ‘‘(ii) for a period in calendar year 2014, be 

4 equal to the applicable percentage under this 

5 subsection for calendar year 2013 (as deter6 mined under clause (i)), plus an additional 0.5 

7 percentage point; 

8 ‘‘(iii) for a period in calendar year 2015, 

9 2016, or 2017, be equal to the applicable per10 centage under this subsection for the preceding 

11 calendar year (as determined under clause (ii) 

12 or this clause, as the case may be), plus an ad13 ditional 1.0 percentage point; and 

14 ‘‘(iv) for a period in any calendar year 

15 after 2017, be equal to the applicable percent16 age under this subsection for calendar year 

17 2017 (as determined under clause (iii)); 

18 ‘‘(B) for purposes of computing an amount with 

19 respect to a Member for Member service— 

20 ‘‘(i) for a period in calendar year 2013, be 

21 equal to the applicable percentage under this 

22 subsection for calendar year 2012, plus an ad23 ditional 2.5 percentage points; 

24 ‘‘(ii) for a period in calendar year 2014, 

25 2015, 2016, or 2017, be equal to the applicable 
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1 percentage under this subsection for the pre2 ceding calendar year (as determined under 

3 clause (i) or this clause, as the case may be), 

4 plus an additional 1.5 percentage points; and 

5 ‘‘(iii) for a period in any calendar year 

6 after 2017, be equal to the applicable percent7 age under this subsection for calendar year 

8 2017 (as determined under clause (ii)); and 

9 ‘‘(C) for purposes of computing an amount with 

10 respect to a Member or employee for Congressional 

11 employee service— 

12 ‘‘(i) for a period in calendar year 2013, be 

13 equal to the applicable percentage under this 

14 subsection for calendar year 2012, plus an ad15 ditional 2.5 percentage points; 

16 ‘‘(ii) for a period in calendar year 2014, 

17 2015, 2016, or 2017, be equal to the applicable 

18 percentage under this subsection for the pre19 ceding calendar year (as determined under 

20 clause (i) or this clause, as the case may be), 

21 plus an additional 1.5 percentage points; and 

22 ‘‘(iii) for a period in any calendar year 

23 after 2017, be equal to the applicable percent24 age under this subsection for calendar year 

25 2017 (as determined under clause (ii)). 
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1 ‘‘(3)(A) Notwithstanding subsection (a)(2), any ex2 cess contributions under subsection (a)(1)(A) (including 

3 the portion of any deposit under this subsection allocable 

4 to excess contributions) shall, if made by an employee of 

5 the United States Postal Service or the Postal Regulatory 

6 Commission, be deposited to the credit of the Postal Serv7 ice Fund under section 2003 of title 39, rather than the 

8 Civil Service Retirement and Disability Fund. 

9 ‘‘(B) For purposes of this paragraph, the term ‘ex10 cess contributions’, as used with respect to contributions 

11 made under subsection (a)(1)(A) by an employee of the 

12 United States Postal Service or the Postal Regulatory 

13 Commission, means the amount by which— 

14 ‘‘(i) deductions from basic pay of such employee 

15 which are made under subsection (a)(1)(A), exceed 

16 ‘‘(ii) deductions from basic pay of such em17 ployee which would have been so made if paragraph 

18 (2) had not been enacted.’’. 

19 (2) GOVERNMENT CONTRIBUTIONS.—Section 

20 8334(a)(1)(B) of title 5, United States Code, is 

21 amended— 

22 (A) in clause (i), by striking ‘‘Except as 

23 provided in clause (ii),’’ and inserting ‘‘Except 

24 as provided in clause (ii) or (iii),’’; and 

25 (B) by adding at the end the following: 
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1 ‘‘(iii) The amount to be contributed under clause (i) 

2 shall, with respect to a period in any year beginning after 

3 December 31, 2012, be equal to— 

4 ‘‘(I) the amount which would otherwise apply 

5 under clause (i) with respect to such period, reduced 

6 by 

7 ‘‘(II) the amount by which, with respect to such 

8 period, the withholding under subparagraph (A) ex9 ceeds the amount which would otherwise have been 

10 withheld from the basic pay of the employee or elect11 ed official involved under subparagraph (A) based on 

12 the percentage applicable under subsection (c) for 

13 calendar year 2012.’’. 

14 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 

15 (1) INDIVIDUAL CONTRIBUTIONS.—Section 

16 8422(a)(3) of title 5, United States Code, is amend17 ed— 

18 (A) by redesignating subparagraph (B) as 

19 subparagraph (C); 

20 (B) by inserting after subparagraph (A) 

21 the following: 

22 ‘‘(B) Notwithstanding any other provision of this 

23 paragraph, the applicable percentage under this para24 graph for civilian service by employees or Members other 

25 than revised annuity employees shall— 
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1 ‘‘(i) except as provided in clause (ii) or (iii), for 

2 purposes of computing an amount— 

3 ‘‘(I) for a period in calendar year 2013, be 

4 equal to the applicable percentage under this 

5 paragraph for calendar year 2012, plus an ad6 ditional 1.5 percentage points; 

7 ‘‘(II) for a period in calendar year 2014, 

8 be equal to the applicable percentage under this 

9 paragraph for calendar year 2013 (as deter10 mined under subclause (I)), plus an additional 

11 0.5 percentage point; 

12 ‘‘(III) for a period in calendar year 2015, 

13 2016, or 2017, be equal to the applicable per14 centage under this paragraph for the preceding 

15 calendar year (as determined under subclause 

16 (II) or this subclause, as the case may be), plus 

17 an additional 1.0 percentage point; and 

18 ‘‘(IV) for a period in any calendar year 

19 after 2017, be equal to the applicable percent20 age under this paragraph for calendar year 

21 2017 (as determined under subclause (III)); 

22 ‘‘(ii) for purposes of computing an amount with 

23 respect to a Member— 

24 ‘‘(I) for a period in calendar year 2013, be 

25 equal to the applicable percentage under this 
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1 paragraph for calendar year 2012, plus an ad2 ditional 2.5 percentage points; 

3 ‘‘(II) for a period in calendar year 2014, 

4 2015, 2016, or 2017, be equal to the applicable 

5 percentage under this paragraph for the pre6 ceding calendar year (as determined under sub7 clause (I) or this subclause, as the case may 

8 be), plus an additional 1.5 percentage points; 

9 and 

10 ‘‘(III) for a period in any calendar year 

11 after 2017, be equal to the applicable percent12 age under this paragraph for calendar year 

13 2017 (as determined under subclause (II)); and 

14 ‘‘(iii) for purposes of computing an amount 

15 with respect to a Congressional employee— 

16 ‘‘(I) for a period in calendar year 2013, 

17 2014, 2015, 2016, or 2017, be equal to the ap18 plicable percentage under this paragraph for 

19 the preceding calendar year (including as in20 creased under this subclause, if applicable), plus 

21 an additional 1.5 percentage points; and 

22 ‘‘(II) for a period in any calendar year 

23 after 2017, be equal to the applicable percent24 age under this paragraph for calendar year 
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1 2017 (as determined under subclause (I)).’’; 

2 and 

3 (C) in subparagraph (C) (as so redesig4 nated by subparagraph (A))— 

5 (i) by striking ‘‘9.3’’ each place it ap6 pears and inserting ‘‘12’’; and 

7 (ii) by striking ‘‘9.8’’ each place it ap8 pears and inserting ‘‘12.5’’. 

9 (2) GOVERNMENT CONTRIBUTIONS.—Section 

10 8423(a)(2) of title 5, United States Code, is amend11 ed— 

12 (A) by striking ‘‘(2)’’ and inserting 

13 ‘‘(2)(A)’’; and 

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

15 ‘‘(B)(i) Subject to clauses (ii) and (iii), for purposes 

16 of any period in any year beginning after December 31, 

17 2012, the normal-cost percentage under this subsection 

18 shall be determined and applied as if section 501(b)(1) 

19 of the Sequester Replacement Reconciliation Act of 2012 

20 had not been enacted. 

21 ‘‘(ii) Any contributions under this subsection in ex22 cess of the amounts which (but for clause (i)) would other23 wise have been payable shall be applied toward reducing 

24 the unfunded liability of the Civil Service Retirement Sys25 tem. 
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1 ‘‘(iii) After the unfunded liability of the Civil Service 

2 Retirement System has been eliminated, as determined by 

3 the Office, Government contributions under this sub4 section shall be determined and made disregarding this 

5 subparagraph. 

6 ‘‘(iv) The preceding provisions of this subparagraph 

7 shall be disregarded for purposes of determining the con8 tributions payable by the United States Postal Service and 

9 the Postal Regulatory Commission.’’. 

10 SEC. 502. ANNUITY SUPPLEMENT. 

11 Section 8421(a) of title 5, United States Code, is 

12 amended— 

13 (1) in paragraph (1), by striking ‘‘paragraph 

14 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 

15 (2) in paragraph (2), by striking ‘‘paragraph 

16 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 

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

18 ‘‘(4)(A) Except as provided in subparagraph (B), no 

19 annuity supplement under this section shall be payable in 

20 the case of an individual who first becomes subject to this 

21 chapter after December 31, 2012. 

22 ‘‘(B) Nothing in this paragraph applies in the case 

23 of an individual separating under subsection (d) or (e) of 

24 section 8412.’’. 
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1 SEC. 503. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 

2 PAYMENTS FOR ACCRUED OR ACCUMULATED 

3 LEAVE. 

4 (a) AMENDMENTS RELATING TO CSRS.—Section 

5 8351(b) of title 5, United States Code, is amended— 

6 (1) by striking paragraph (2)(A) and inserting 

7 the following: 

8 ‘‘(2)(A) An employee or Member may contribute to 

9 the Thrift Savings Fund in any pay period any amount 

10 of such employee’s or Member’s basic pay for such pay 

11 period, and may contribute (by direct transfer to the 

12 Fund) any part of any payment that the employee or 

13 Member receives for accumulated and accrued annual or 

14 vacation leave under section 5551 or 5552. Notwith15 standing section 2105(e), in this paragraph the term ‘em16 ployee’ includes an employee of the United States Postal 

17 Service or of the Postal Regulatory Commission.’’; 

18 (2) by striking subparagraph (B) of paragraph 

19 (2); and 

20 (3) by redesignating subparagraph (C) of para21 graph (2) as subparagraph (B). 

22 (b) AMENDMENTS RELATING TO FERS.—Section 

23 8432(a) of title 5, United States Code, is amended— 

24 (1) by striking all that precedes paragraph (3) 

25 and inserting the following: 

26 ‘‘(a)(1) An employee or Member— 
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1 ‘‘(A) may contribute to the Thrift Savings 

2 Fund in any pay period, pursuant to an election 

3 under subsection (b), any amount of such employee’s 

4 or Member’s basic pay for such pay period; and 

5 ‘‘(B) may contribute (by direct transfer to the 

6 Fund) any part of any payment that the employee 

7 or Member receives for accumulated and accrued an8 nual or vacation leave under section 5551 or 5552. 

9 ‘‘(2) Contributions made under paragraph (1)(A) 

10 pursuant to an election under subsection (b) shall, with 

11 respect to each pay period for which such election remains 

12 in effect, be made in accordance with a program of regular 

13 contributions provided in regulations prescribed by the 

14 Executive Director.’’; and 

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

16 ‘‘(4) Notwithstanding section 2105(e), in this sub17 section the term ‘employee’ includes an employee of the 

18 United States Postal Service or of the Postal Regulatory 

19 Commission.’’. 

20 (c) REGULATIONS.—The Executive Director of the 

21 Federal Retirement Thrift Investment Board shall pro22 mulgate regulations to carry out the amendments made 

23 by this section. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 subsections (a) and (b) shall take effect 1 year after the 

3 date of the enactment of this Act. 

4 TITLE VI—COMMITTEE ON WAYS 

5 AND MEANS 

6 Subtitle A—Recapture of Overpay7 ments Resulting From Certain 

8 Federally-subsidized Health In9 surance 

10 SEC. 601. RECAPTURE OF OVERPAYMENTS RESULTING 

11 FROM CERTAIN FEDERALLY-SUBSIDIZED 

12 HEALTH INSURANCE. 

13 (a) IN GENERAL.—Paragraph (2) of section 36B(f) 

14 of the Internal Revenue Code of 1986 is amended by strik15 ing subparagraph (B). 

16 (b) CONFORMING AMENDMENT.—So much of para17 graph (2) of section 36B(f) of such Code, as amended by 

18 subsection (a), as precedes ‘‘advance payments’’ is amend19 ed to read as follows: 

20 ‘‘(2) EXCESS ADVANCE PAYMENTS.—If the’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years ending after De23 cember 31, 2013. 
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1 Subtitle B—Social Security Num2 ber Required to Claim the Re3 fundable Portion of the Child 

4 Tax Credit 

5 SEC. 611. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM 

6 THE REFUNDABLE PORTION OF THE CHILD 

7 TAX CREDIT. 

8 (a) IN GENERAL.—Subsection (d) of section 24 of the 

9 Internal Revenue Code of 1986 is amended by adding at 

10 the end the following new paragraph: 

11 ‘‘(5) IDENTIFICATION REQUIREMENT WITH RE12 SPECT TO TAXPAYER.— 

13 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

14 not apply to any taxpayer for any taxable year 

15 unless the taxpayer includes the taxpayer’s So16 cial Security number on the return of tax for 

17 such taxable year. 

18 ‘‘(B) JOINT RETURNS.—In the case of a 

19 joint return, the requirement of subparagraph 

20 (A) shall be treated as met if the Social Secu21 rity number of either spouse is included on such 

22 return. 

23 ‘‘(C) LIMITATION.—Subparagraph (A) 

24 shall not apply to the extent the tentative min-
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1 imum tax (as defined in section 55(b)(1)(A)) 

2 exceeds the credit allowed under section 32.’’. 

3 (b) OMISSION TREATED AS MATHEMATICAL OR

4 CLERICAL ERROR.—Subparagraph (I) of section 

5 6213(g)(2) of such Code is amended to read as follows: 

6 ‘‘(I) an omission of a correct Social Secu7 rity number required under section 24(d)(5) 

8 (relating to refundable portion of child tax cred9 it), or a correct TIN under section 24(e) (relat10 ing to child tax credit), to be included on a re11 turn,’’. 

12 (c) CONFORMING AMENDMENT.—Subsection (e) of 

13 section 24 of such Code is amended by inserting ‘‘WITH

14 RESPECT TO QUALIFYING CHILDREN’’ after ‘‘IDENTI15 FICATION REQUIREMENT’’ in the heading thereof. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 the date of the enactment of this Act. 

19 Subtitle C—Human Resources 

20 Provisions 

21 SEC. 621. REPEAL OF THE PROGRAM OF BLOCK GRANTS TO 

22 STATES FOR SOCIAL SERVICES. 

23 (a) REPEALS.—Sections 2001 through 2007 of the 

24 Social Security Act (42 U.S.C. 1397–1397f) are repealed. 

25 (b) CONFORMING AMENDMENTS.— 
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1 (1) Section 404(d) of the Social Security Act 

2 (42 U.S.C. 604(d)) is amended— 

3 (A) in paragraph (1), by striking ‘‘any or 

4 all of the following provisions of law:’’ and all 

5 that follows through ‘‘The’’ and inserting 

6 ‘‘the’’; 

7 (B) in paragraph (3)— 

8 (i) by striking ‘‘RULES’’ and all that 

9 follows through ‘‘any amount paid’’ and in10 serting ‘‘RULES.—Any amount paid’’; 

11 (ii) by striking ‘‘a provision of law 

12 specified in paragraph (1)’’ and inserting 

13 ‘‘the Child Care and Development Block 

14 Grant Act of 1990’’; and 

15 (iii) by striking subparagraph (B); 

16 and 

17 (C) by striking paragraph (2) and redesig18 nating paragraph (3) as paragraph (2). 

19 (2) Section 422(b) of the Social Security Act 

20 (42 U.S.C. 622(b)) is amended— 

21 (A) in paragraph (1)(A)— 

22 (i) by striking ‘‘administers or super23 vises’’ and inserting ‘‘administered or su24 pervised’’; and 
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1 (ii) by striking ‘‘subtitle 1 of title 

2 XX’’ and inserting ‘‘subtitle A of title XX 

3 (as in effect before the repeal of such sub4 title)’’; and 

5 (B) in paragraph (2), by striking ‘‘under 

6 subtitle 1 of title XX,’’. 

7 (3) Section 471(a) of the Social Security Act 

8 (42 U.S.C. 671(a)) is amended— 

9 (A) in paragraph (4), by striking ‘‘, under 

10 subtitle 1 of title XX of this Act,’’; and 

11 (B) in paragraph (8), by striking ‘‘XIX, or 

12 XX’’ and inserting ‘‘or XIX’’. 

13 (4) Section 472(h)(1) of the Social Security Act 

14 (42 U.S.C. 672(h)(1)) is amended by striking the 

15 2nd sentence. 

16 (5) Section 473(b) of the Social Security Act 

17 (42 U.S.C. 673(b)) is amended— 

18 (A) in paragraph (1), by striking ‘‘(3)’’ 

19 and inserting ‘‘(2)’’; 

20 (B) in paragraph (4), by striking ‘‘para21 graphs (1) and (2)’’ and inserting ‘‘paragraph 

22 (1)’’; and 

23 (C) by striking paragraph (2) and redesig24 nating paragraphs (3) and (4) as paragraphs 

25 (2) and (3), respectively. 
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1 (6) Section 504(b)(6) of the Social Security Act 

2 (42 U.S.C. 704(b)(6)) is amended in each of sub3 paragraphs (A) and (B) by striking ‘‘XIX, or XX’’ 

4 and inserting ‘‘or XIX’’. 

5 (7) Section 1101(a)(1) of the Social Security 

6 Act (42 U.S.C. 1301(a)(1)) is amended by striking 

7 the penultimate sentence. 

8 (8) Section 1128(h) of the Social Security Act 

9 (42 U.S.C. 1320a–7(h)) is amended— 

10 (A) by adding ‘‘or’’ at the end of para11 graph (2); and 

12 (B) by striking paragraph (3) and redesig13 nating paragraph (4) as paragraph (3). 

14 (9) Section 1128A(i)(1) of the Social Security 

15 Act (42 U.S.C. 1320a–7a(i)(1)) is amended by strik16 ing ‘‘or subtitle 1 of title XX’’. 

17 (10) Section 1132(a)(1) of the Social Security 

18 Act (42 U.S.C. 1320b–2(a)(1)) is amended by strik19 ing ‘‘XIX, or XX’’ and inserting ‘‘or XIX’’. 

20 (11) Section 1902(e)(13)(F)(iii) of the Social 

21 Security Act (42 U.S.C. 1396a(e)(13)(F)(iii)) is 

22 amended— 

23 (A) by striking ‘‘EXCLUSIONS’’ and insert24 ing ‘‘EXCLUSION’’; and 
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1 (B) by striking ‘‘an agency that determines 

2 eligibility for a program established under the 

3 Social Services Block Grant established under 

4 title XX or’’. 

5 (12) The heading for title XX of the Social Se6 curity Act is amended by striking ‘‘BLOCK 

7 GRANTS TO STATES FOR SOCIAL SERVICES’’ 

8 and inserting ‘‘HEALTH PROFESSIONS DEM9 ONSTRATIONS AND ENVIRONMENTAL 

10 HEALTH CONDITION DETECTION’’. 

11 (13) The heading for subtitle A of title XX of 

12 the Social Security Act is amended by striking 

13 ‘‘Block Grants to States for Social Serv14 ices’’ and inserting ‘‘Health Professions 

15 Demonstrations and Environmental 

16 Health Condition Detection’’. 

17 (14) Section 16(k)(5)(B)(i) of the Food and 

18 Nutrition Act of 2008 (7 U.S.C. 2025(k)(5)(B)(i)) 

19 is amended by striking ‘‘, or title XX,’’. 

20 (15) Section 402(b)(3) of the Personal Respon21 sibility and Work Opportunity Reconciliation Act of 

22 1996 (8 U.S.C. 1612(b)(3)) is amended by striking 

23 subparagraph (B) and redesignating subparagraph 

24 (C) as subparagraph (B). 
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1 (16) Section 245A(h)(4)(I) of the Immigration 

2 Reform and Control Act of 1986 (8 U.S.C. 

3 1255a(h)(4)(I)) is amended by striking ‘‘, XVI, and 

4 XX’’ and inserting ‘‘and XVI’’. 

5 (17) Section 17 of the Richard B. Russell Na6 tional School Lunch Act (42 U.S.C. 1766) is amend7 ed— 

8 (A) in subsection (a)(2)— 

9 (i) in subparagraph (B)— 

10 (I) by striking ‘‘—’’ and all that 

11 follows through ‘‘(i)’’; 

12 (II) by striking ‘‘or’’ at the end 

13 of clause (i); and 

14 (III) by striking clause (ii); and 

15 (ii) in subparagraph (D)(ii), by strik16 ing ‘‘or title XX’’; and 

17 (B) in subsection (o)(2)(B)— 

18 (i) by striking ‘‘or title XX’’ each 

19 place it appears; and 

20 (ii) by striking ‘‘or XX’’. 

21 (18) Section 201(b) of the Indian Child Welfare 

22 Act of 1978 (25 U.S.C. 1931(b)) is amended by 

23 striking ‘‘titles IV–B and XX’’ each place it appears 

24 and inserting ‘‘part B of title IV’’. 
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1 (19) Section 3803(c)(2)(C) of title 31, United 

2 States Code, is amended by striking clause (vi) and 

3 redesignating clauses (vii) through (xvi) as clauses 

4 (vi) through (xv), respectively. 

5 (20) Section 14502(d)(3) of title 40, United 

6 States Code, is amended— 

7 (A) by striking ‘‘and title XX’’; and 

8 (B) by striking ‘‘, 1397 et seq.’’. 

9 (21) Section 2006(a)(15) of the Public Health 

10 Service Act (42 U.S.C. 300z–5(a)(15)) is amended 

11 by striking ‘‘and title XX’’. 

12 (22) Section 203(b)(3) of the Older Americans 

13 Act of 1965 (42 U.S.C. 3013(b)(3)) is amended by 

14 striking ‘‘XIX, and XX’’ and inserting ‘‘and XIX’’. 

15 (23) Section 213 of the Older Americans Act of 

16 1965 (42 U.S.C. 3020d) is amended by striking ‘‘or 

17 title XX’’. 

18 (24) Section 306(d) of the Older Americans Act 

19 of 1965 (42 U.S.C. 3026(d)) is amended in each of 

20 paragraphs (1) and (2) by striking ‘‘titles XIX and 

21 XX’’ and inserting ‘‘title XIX’’. 

22 (25) Section 2605 of the Low-Income Home 

23 Energy Assistance Act of 1981 (42 U.S.C. 8624) is 

24 amended in each of subsections (b)(4) and (j) by 
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1 striking ‘‘under title XX of the Social Security 

2 Act,’’. 

3 (26) Section 602 of the Child Development As4 sociate Scholarship Assistance Act of 1985 (42 

5 U.S.C. 10901) is repealed. 

6 (27) Section 3(d)(1) of the Assisted Suicide 

7 Funding Restriction Act of 1997 (42 U.S.C. 

8 14402(d)(1)) is amended by striking subparagraph 

9 (C) and redesignating subparagraphs (D) through 

10 (K) as subparagraphs (C) through (J), respectively. 

11 (c) EFFECTIVE DATE.—The repeals and amend12 ments made by this section shall take effect on October 

13 1, 2012. 

14 TITLE VII—SEQUESTER 

15 REPLACEMENT 

16 SEC. 701. SHORT TITLE. 

17 This title may be cited as the ‘‘Sequester Replace18 ment Act of 2012’’. 

19 SEC. 702. PROTECTING VETERANS PROGRAMS FROM SE20 QUESTER. 

21 Section 256(e)(2)(E) of the Balanced Budget and 

22 Emergency Deficit Control Act of 1985 is repealed. 
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1 SEC. 703. ACHIEVING $19 BILLION IN DISCRETIONARY SAV2 INGS. 

3 (a) REVISED 2013 DISCRETIONARY SPENDING

4 LIMIT.—Paragraph (2) of section 251(c) of the Balanced 

5 Budget and Emergency Deficit Control Act of 1985 is 

6 amended to read as follows: 

7 ‘‘(2) with respect to fiscal year 2013, for the 

8 discretionary category, $1,047,000,000,000 in new 

9 budget authority;’’. 

10 (b) DISCRETIONARY SAVINGS.—Section 251A(7)(A) 

11 of the Balanced Budget and Emergency Deficit Control 

12 Act of 1985 is amended to read as follows: 

13 ‘‘(A) FISCAL YEAR 2013.— 

14 ‘‘(i) FISCAL YEAR 2013 ADJUST15 MENT.—On January 2, 2013, the discre16 tionary category set forth in section 

17 251(c)(2) shall be decreased by 

18 $19,104,000,000 in budget authority. 

19 ‘‘(ii) SUPPLEMENTAL SEQUESTRATION

20 ORDER.—On January 15, 2013, OMB 

21 shall issue a supplemental sequestration 

22 report for fiscal year 2013 and take the 

23 form of a final sequestration report as set 

24 forth in section 254(f)(2) and using the 

25 procedures set forth in section 253(f), to 

26 eliminate any discretionary spending 
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1 breach of the spending limit set forth in 

2 section 251(c)(2) as adjusted by clause (i), 

3 and the President shall order a sequestra4 tion, if any, as required by such report.’’. 

5 SEC. 704. CONFORMING AMENDMENTS TO SECTION 314 OF 

6 THE CONGRESSIONAL BUDGET AND IM7 POUNDMENT CONTROL ACT OF 1974. 

8 Section 314(a) of the Congressional Budget Act of 

9 1974 is amended to read as follows: 

10 ‘‘(a) ADJUSTMENTS.— 

11 ‘‘(1) IN GENERAL.—The chair of the Committee 

12 on the Budget of the House of Representatives or 

13 the Senate may make adjustments as set forth in 

14 paragraph (2) for a bill or joint resolution, amend15 ment thereto or conference report thereon, by the 

16 amount of new budget authority and outlays flowing 

17 therefrom in the same amount as required by section 

18 251(b) of the Balanced Budget and Emergency Def19 icit Control Act of 1985. 

20 ‘‘(2) MATTERS TO BE ADJUSTED.—The chair of 

21 the Committee on the Budget of the House of Rep22 resentatives or the Senate may make the adjust23 ments referred to in paragraph (1) to— 
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1 ‘‘(A) the allocations made pursuant to the 

2 appropriate concurrent resolution on the budget 

3 pursuant to section 302(a); 

4 ‘‘(B) the budgetary aggregates as set forth 

5 in the appropriate concurrent resolution on the 

6 budget; and 

7 ‘‘(C) the discretionary spending limits, if 

8 any, set forth in the appropriate concurrent res9 olution on the budget.’’. 

10 SEC. 705. TREATMENT FOR PAYGO PURPOSES. 

11 The budgetary effects of this Act and any amendment 

12 made by it shall not be entered on either PAYGO score13 card maintained pursuant to section 4(d) of the Statutory 

14 Pay-As-You-Go Act of 2010. 

15 SEC. 706. ELIMINATION OF THE FISCAL YEAR 2013 SEQUES16 TRATION FOR DEFENSE DIRECT SPENDING. 

17 Any sequestration order issued by the President 

18 under the Balanced Budget and Emergency Deficit Con19 trol Act of 1985 to carry out reductions to direct spending 

20 for the defense function (050) for fiscal year 2013 pursu-
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1 ant to section 251A of such Act shall have no force or 

2 effect. 

Passed the House of Representatives May 10, 2012. 

Attest: 

Clerk. 
112TH CONGRESS 

2D SESSION H. R. 5652 

AN ACT 

To provide for reconciliation pursuant to section 

for fiscal year 2013. 201 of the concurrent resolution on the budget