II 

Calendar No. 398 

112TH CONGRESS 

2D SESSION H. R. 5652 

IN THE SENATE OF THE UNITED STATES 

MAY 14, 2012 

Received and read the first time 

MAY 15, 2012 

Read the second time and placed on the calendar 

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, 

3 SECTION 1. SHORT TITLE. 

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

5 Reconciliation Act of 2012’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—AGRICULTURE 

Sec. 101. Short title. 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

HR 5652 PCS 

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. 

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. 

mstockstill on DSK4VPTVN1PROD with BILLS

3 

HR 5652 PCS 

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. 

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. 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

HR 5652 PCS 

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. 

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’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

HR 5652 PCS 

1 SEC. 103. CATEGORICAL ELIGIBILITY LIMITED TO CASH AS2 SISTANCE. 

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

4 U.S.C. 2014) is amended— 

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

6 striking ‘‘households in which each member receives 

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

8 member receives cash assistance’’, and 

9 (2) in subsection (j) by striking ‘‘or who re10 ceives benefits under a State program’’ and inserting 

11 ‘‘or who receives cash assistance under a State pro12 gram’’. 

13 SEC. 104. STANDARD UTILITY ALLOWANCES BASED ON THE 

14 RECEIPT OF ENERGY ASSISTANCE PAY15 MENTS. 

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

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

18 amended— 

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

20 (iv), and 

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

22 and inserting the following: 

23 ‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY24 MENTS.—For purposes of subsection (d)(1), a pay25 ment made under a State law (other than a law re26 ferred to in paragraph (2)(G)) to provide energy asmstockstill on DSK4VPTVN1PROD with BILLS

6 

HR 5652 PCS 

1 sistance to a household shall be considered money 

2 payable directly to the household.’’. 

3 (b) CONFORMING AMENDMENTS.—Section 

4 2605(f)(2) of the Low-Income Home Energy Assistance 

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

6 (1) by striking ‘‘and for purposes of deter7 mining any excess shelter expense deduction under 

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

9 (7 U.S.C. 2014(e))’’, and 

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

11 semicolon the following: ‘‘, except that such pay12 ments or allowances shall not be deemed to be ex13 pended for purposes of determining any excess shel14 ter expense deduction under section 5(e)(6) of the 

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

16 2014(e)(6))’’. 

17 SEC. 105. EMPLOYMENT AND TRAINING; WORKFARE. 

18 (a) ADMINISTRATIVE COST-SHARING FOR EMPLOY19 MENT AND TRAINING PROGRAMS.— 

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

21 Nutrition Act of 2008 (7 U.S.C. 2025) is amend22 ed— 

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

24 than a program carried out under section 

25 6(d)(4) or section 20)’’ after ‘‘supplemental numstockstill on DSK4VPTVN1PROD with BILLS

7 

HR 5652 PCS 

1 trition assistance program’’ the 1st place it ap2 pears, and 

3 (B) in subsection (h)— 

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

5 and 

6 (ii) by redesignating paragraphs (4) 

7 and (5) as paragraphs (2) and (3), respec8 tively. 

9 (2) CONFORMING AMENDMENTS.— 

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

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

12 2026(b)(1)(B)(iv)(III)(hh)) is amended by 

13 striking ‘‘(g), (h)(2), or (h)(3)’’ and inserting 

14 ‘‘or (g)’’. 

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

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

17 2031(d)(1)(B)(ii)) is amended is amended by 

18 striking ‘‘, (g), (h)(2), and (h)(3)’’ and insert19 ing ‘‘and (g)’’. 

20 (b) ADMINISTRATIVE COST-SHARING AND REIM21 BURSEMENTS FOR WORKFARE.—Section 20 of the Food 

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

23 by striking subsection (g). 

mstockstill on DSK4VPTVN1PROD with BILLS

8 

HR 5652 PCS 

1 SEC. 106. END STATE BONUS PROGRAM FOR THE SUPPLE2 MENTAL NUTRITION ASSISTANCE PROGRAM. 

3 Section 16 of the Food and Nutrition Act of 2008 

4 (7 U.S.C. 2025) is amended by striking subsection (d). 

5 SEC. 107. FUNDING OF EMPLOYMENT AND TRAINING PRO6 GRAMS. 

7 For purposes of fiscal year 2013, the reference to 

8 $90,000,000 in section 16(h)(1)(A) of the Food and Nu9 trition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) shall be 

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

11 SEC. 108. TURN OFF INDEXING FOR NUTRITION EDU12 CATION AND OBESITY PREVENTION. 

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

14 (7 U.S.C. 2037(d)) is amended by striking ‘‘years—’’ and 

15 all that follows through the period at the end, and insert16 ing ‘‘years, $375,000,000.’’. 

17 SEC. 109. EXTENSION OF AUTHORIZATION OF FOOD AND 

18 NUTRITION ACT OF 2008. 

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

20 2008 (7 U.S.C. 2027(a)(1)) is amended by striking 

21 ‘‘2012’’ and inserting ‘‘2013’’. 

22 SEC. 110. EFFECTIVE DATES AND APPLICATION OF AMEND23 MENTS. 

24 (a) GENERAL EFFECTIVE DATE.—Except as pro25 vided in subsection (b), this title and the amendments 

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

mstockstill on DSK4VPTVN1PROD with BILLS

9 

HR 5652 PCS 

1 and shall apply only with respect to certification periods 

2 that begin on or after such date. 

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

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

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

6 and shall apply only with respect to certification periods 

7 that begin on or after such date. 

8 TITLE II—COMMITTEE ON 

9 ENERGY AND COMMERCE 

10 Subtitle A—Repeal of Certain ACA 

11 Funding Provisions 

12 SEC. 201. REPEALING MANDATORY FUNDING TO STATES TO 

13 ESTABLISH AMERICAN HEALTH BENEFIT EX14 CHANGES. 

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

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

17 is repealed. 

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

19 funds made available under such section 1311(a), the un20 obligated balance is rescinded. 

21 SEC. 202. REPEALING PREVENTION AND PUBLIC HEALTH 

22 FUND. 

23 (a) IN GENERAL.—Section 4002 of the Patient Pro24 tection and Affordable Care Act (42 U.S.C. 300u–11) is 

25 repealed. 

mstockstill on DSK4VPTVN1PROD with BILLS

10 

HR 5652 PCS 

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

2 funds made available by such section 4002, the unobli3 gated balance is rescinded. 

4 SEC. 203. RESCINDING UNOBLIGATED BALANCES FOR CO5 OP PROGRAM. 

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

7 of the Patient Protection and Affordable Care Act (42 

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

9 Subtitle B—Medicaid 

10 SEC. 211. REVISION OF PROVIDER TAX INDIRECT GUAR11 ANTEE THRESHOLD. 

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

13 (42 U.S.C. 1396b(w)(4)(C)(ii)) is amended by inserting 

14 ‘‘and for portions of fiscal years beginning on or after Oc15 tober 1, 2012,’’ after ‘‘October 1, 2011,’’. 

16 SEC. 212. REBASING OF STATE DSH ALLOTMENTS FOR FIS17 CAL YEAR 2022. 

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

19 1396r–4(f)) is amended— 

20 (1) by redesignating paragraph (9) as para21 graph (10); 

22 (2) in paragraph (3)(A) by striking ‘‘para23 graphs (6), (7), and (8)’’ and inserting ‘‘paragraphs 

24 (6), (7), (8), and (9)’’; and 

mstockstill on DSK4VPTVN1PROD with BILLS

11 

HR 5652 PCS 

1 (3) by inserting after paragraph (8) the fol2 lowing new paragraph: 

3 ‘‘(9) REBASING OF STATE DSH ALLOTMENTS

4 FOR FISCAL YEAR 2022.—With respect to fiscal 

5 2022, for purposes of applying paragraph (3)(A) to 

6 determine the DSH allotment for a State, the 

7 amount of the DSH allotment for the State under 

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

9 as if it were such amount as reduced under para10 graph (7).’’. 

11 SEC. 213. REPEAL OF MEDICAID AND CHIP MAINTENANCE 

12 OF EFFORT REQUIREMENTS UNDER PPACA. 

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

14 1902 of the Social Security Act (42 U.S.C. 1396a) is 

15 amended by striking subsection (gg). 

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

17 2105(d)(3) of the Social Security Act (42 U.S.C. 

18 1397ee(d)(3)) is amended— 

19 (1) by striking subparagraph (A); 

20 (2) by redesignating subparagraphs (B) and 

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

22 (3) in the paragraph heading, by striking 

23 ‘‘CONTINUATION OF ELIGIBILITY STANDARDS FOR

24 CHILDREN UNTIL OCTOBER 1, 2019’’ and inserting 

25 ‘‘CONTINUITY OF COVERAGE’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

12 

HR 5652 PCS 

1 (c) CONFORMING AMENDMENTS.— 

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

3 (42 U.S.C. 1396a(a)) is amended by striking para4 graph (74). 

5 (2) Effective January 1, 2014, paragraph (14) 

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

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

8 third sentence of subparagraph (A). 

9 (d) EFFECTIVE DATE.—Except as provided in sub10 section (c)(2), the amendments made by this section shall 

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

12 SEC. 214. MEDICAID PAYMENTS TO TERRITORIES. 

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

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

15 (1) in paragraph (2)— 

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

17 and 

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

19 ‘‘and subject to’’; 

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

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

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

23 (3) by striking paragraph (5). 

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

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

mstockstill on DSK4VPTVN1PROD with BILLS

13 

HR 5652 PCS 

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

2 50 percent’’. 

3 SEC. 215. REPEALING BONUS PAYMENTS FOR ENROLL4 MENT UNDER MEDICAID AND CHIP. 

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

6 2105(a) of the Social Security Act (42 U.S.C. 1397ee(a)) 

7 are repealed. 

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

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

10 Security Act, the unobligated balance is rescinded. 

11 (c) CONFORMING CHANGES.— 

12 (1) AVAILABILITY OF EXCESS FUNDS FOR PER13 FORMANCE BONUSES.—Section 2104(n)(2) of the 

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

15 amended by striking subparagraph (D). 

16 (2) OUTREACH OR COVERAGE BENCHMARKS.— 

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

18 U.S.C. 1397kk(b)(3)) is amended— 

19 (A) in subparagraph (A)— 

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

21 after the semicolon at the end; and 

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

23 (B) by striking subparagraph (C). 

mstockstill on DSK4VPTVN1PROD with BILLS

14 

HR 5652 PCS 

1 TITLE III—FINANCIAL SERVICES 

2 SEC. 301. TABLE OF CONTENTS. 

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

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. 

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. 

mstockstill on DSK4VPTVN1PROD with BILLS

15 

HR 5652 PCS 

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. 

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; 

mstockstill on DSK4VPTVN1PROD with BILLS

16 

HR 5652 PCS 

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

2 receiver appointed under title II,’’; 

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

4 covered financial company under title II’’; 

5 (D) in section 1105(e)(5), by striking 

6 ‘‘amount of any securities issued under that 

7 chapter 31 for such purpose shall be treated in 

8 the same manner as securities issued under sec9 tion 208(n)(5)(E)’’ and inserting ‘‘issuances of 

10 such securities under that chapter 31 for such 

11 purpose shall by treated as public debt trans12 actions of the United States, and the proceeds 

13 from the sale of any obligations acquired by the 

14 Secretary under this paragraph shall be depos15 ited into the Treasury of the United States as 

16 miscellaneous receipts’’; and 

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

18 subparagraph (A) to read as follows: 

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

20 for bankruptcy under section 301 of title 11, 

21 United States Code; or’’. 

22 (2) FEDERAL DEPOSIT INSURANCE ACT.—Sec23 tion 10(b)(3) of the Federal Deposit Insurance Act 

24 (12 U.S.C. 1820(b)(3)) is amended by striking ‘‘, or 

25 of such nonbank financial company supervised by 

mstockstill on DSK4VPTVN1PROD with BILLS

17 

HR 5652 PCS 

1 the Board of Governors or bank holding company 

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

3 Act of 2010, for the purpose of implementing its au4 thority to provide for orderly liquidation of any such 

5 company under title II of that Act’’. 

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

7 the Federal Reserve Act is amended— 

8 (A) in subparagraph (B)— 

9 (i) in clause (ii), by striking ‘‘, resolu10 tion under title II of the Dodd-Frank Wall 

11 Street Reform and Consumer Protection 

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

13 resolution under’’; and 

14 (ii) in clause (iii), by striking ‘‘, reso15 lution under title II of the Dodd-Frank 

16 Wall Street Reform and Consumer Protec17 tion Act, or’’ and inserting ‘‘or resolution 

18 under’’; and 

19 (B) by striking subparagraph (E). 

20 Subtitle B—Home Affordable 

21 Modification Program 

22 SEC. 321. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘HAMP Termi24 nation Act of 2012’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

18 

HR 5652 PCS 

1 SEC. 322. CONGRESSIONAL FINDINGS. 

2 The Congress finds the following: 

3 (1) According to the Department of the Treas4 ury— 

5 (A) the Home Affordable Modification Pro6 gram (HAMP) is designed to ‘‘help as many as 

7 3 to 4 million financially struggling homeowners 

8 avoid foreclosure by modifying loans to a level 

9 that is affordable for borrowers now and sus10 tainable over the long term’’; and 

11 (B) as of February 2012, only 782,609 ac12 tive permanent mortgage modifications were 

13 made under HAMP. 

14 (2) Many homeowners whose HAMP modifica15 tions were canceled suffered because they made fu16 tile payments and some of those homeowners were 

17 even forced into foreclosure. 

18 (3) The Special Inspector General for TARP 

19 reported that HAMP ‘‘benefits only a small portion 

20 of distressed homeowners, offers others little more 

21 than false hope, and in certain cases causes more 

22 harm than good’’. 

23 (4) Approximately $30 billion was obligated by 

24 the Department of the Treasury to HAMP, however, 

25 approximately only $2.54 billion has been disbursed. 

mstockstill on DSK4VPTVN1PROD with BILLS

19 

HR 5652 PCS 

1 (5) Terminating HAMP would save American 

2 taxpayers approximately $2.84 billion, according to 

3 the Congressional Budget Office. 

4 SEC. 323. TERMINATION OF AUTHORITY. 

5 Section 120 of the Emergency Economic Stabilization 

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

7 the end the following new subsection: 

8 ‘‘(c) TERMINATION OF AUTHORITY TO PROVIDE

9 NEW ASSISTANCE UNDER THE HOME AFFORDABLE

10 MODIFICATION PROGRAM.— 

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

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

13 this subsection the Secretary may not provide any 

14 assistance under the Home Affordable Modification 

15 Program under the Making Home Affordable initia16 tive of the Secretary, authorized under this Act, on 

17 behalf of any homeowner. 

18 ‘‘(2) PROTECTION OF EXISTING OBLIGATIONS

19 ON BEHALF OF HOMEOWNERS ALREADY EXTENDED

20 AN OFFER TO PARTICIPATE IN THE PROGRAM.— 

21 Paragraph (1) shall not apply with respect to assist22 ance provided on behalf of a homeowner who, before 

23 the date of the enactment of this subsection, was ex24 tended an offer to participate in the Home Affordmstockstill on DSK4VPTVN1PROD with BILLS

20 

HR 5652 PCS 

1 able Modification Program on a trial or permanent 

2 basis. 

3 ‘‘(3) DEFICIT REDUCTION.— 

4 ‘‘(A) USE OF UNOBLIGATED FUNDS.—Not5 withstanding any other provision of this title, 

6 the amounts described in subparagraph (B) 

7 shall not be available after the date of the en8 actment of this subsection for obligation or ex9 penditure under the Home Affordable Modifica10 tion Program of the Secretary, but should be 

11 covered into the General Fund of the Treasury 

12 and should be used only for reducing the budg13 et deficit of the Federal Government. 

14 ‘‘(B) IDENTIFICATION OF UNOBLIGATED

15 FUNDS.—The amounts described in this sub16 paragraph are any amounts made available 

17 under title I of the Emergency Economic Sta18 bilization Act of 2008 that— 

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

20 not yet obligated as of the date of the en21 actment of this subsection, under the 

22 Home Affordable Modification Program of 

23 the Secretary; and 

24 ‘‘(ii) are not necessary for providing 

25 assistance under such Program on behalf 

mstockstill on DSK4VPTVN1PROD with BILLS

21 

HR 5652 PCS 

1 of homeowners who, pursuant to para2 graph (2), may be provided assistance 

3 after the date of the enactment of this sub4 section. 

5 ‘‘(4) STUDY OF USE OF PROGRAM BY MEMBERS

6 OF THE ARMED FORCES, VETERANS, AND GOLD

7 STAR RECIPIENTS.— 

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

9 a study to determine the extent of usage of the 

10 Home Affordable Modification Program by, and 

11 the impact of such Program on, covered home12 owners. 

13 ‘‘(B) REPORT.—Not later than the expira14 tion of the 90-day period beginning on the date 

15 of the enactment of this subsection, the Sec16 retary shall submit to the Congress a report 

17 setting forth the results of the study under sub18 paragraph (A) and identifying best practices, 

19 derived from studying the Home Affordable 

20 Modification Program, that could be applied to 

21 existing mortgage assistance programs available 

22 to covered homeowners. 

23 ‘‘(C) COVERED HOMEOWNER.—For pur24 poses of this subsection, the term ‘covered 

25 homeowner’ means a homeowner who is— 

mstockstill on DSK4VPTVN1PROD with BILLS

22 

HR 5652 PCS 

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

2 the United States on active duty or the 

3 spouse or parent of such a member; 

4 ‘‘(ii) a veteran, as such term is de5 fined in section 101 of title 38, United 

6 States Code; or 

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

8 lapel pin under section 1126 of title 10, 

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

10 next of kin of a member of the Armed 

11 Forces person who died in a manner de12 scribed in subsection (a) of such section. 

13 ‘‘(5) PUBLICATION OF MEMBER AVAILABILITY

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

15 date of the enactment of this subsection, the Sec16 retary of the Treasury shall publish to its Website 

17 on the World Wide Web in a prominent location, 

18 large point font, and boldface type the following 

19 statement: ‘The Home Affordable Modification Pro20 gram (HAMP) has been terminated. If you are hav21 ing trouble paying your mortgage and need help con22 tacting your lender or servicer for purposes of nego23 tiating or acquiring a loan modification, please con24 tact your Member of Congress to assist you in conmstockstill on DSK4VPTVN1PROD with BILLS

23 

HR 5652 PCS 

1 tacting your lender or servicer for the purpose of ne2 gotiating or acquiring a loan modification.’. 

3 ‘‘(6) NOTIFICATION TO HAMP APPLICANTS RE4 QUIRED.—Not later than 30 days after the date of 

5 the enactment of this subsection, the Secretary of 

6 the Treasury shall inform each individual who ap7 plied for the Home Affordable Modification Program 

8 and will not be considered for a modification under 

9 such Program due to termination of such Program 

10 under this subsection— 

11 ‘‘(A) that such Program has been termi12 nated; 

13 ‘‘(B) that loan modifications under such 

14 Program are no longer available; 

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

16 of such individual’s Member of Congress; and 

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

18 or her Member of Congress to assist the indi19 vidual in contacting the individual’s lender or 

20 servicer for the purpose of negotiating or ac21 quiring a loan modification.’’. 

22 SEC. 324. SENSE OF CONGRESS. 

23 The Congress encourages banks to work with home24 owners to provide loan modifications to those that are eli25 gible. The Congress also encourages banks to work and 

mstockstill on DSK4VPTVN1PROD with BILLS

24 

HR 5652 PCS 

1 assist homeowners and prospective homeowners with fore2 closure prevention programs and information on loan 

3 modifications. 

4 Subtitle C—Bureau of Consumer 

5 Financial Protection 

6 SEC. 331. BRINGING THE BUREAU OF CONSUMER FINAN7 CIAL PROTECTION INTO THE REGULAR AP8 PROPRIATIONS PROCESS. 

9 Section 1017 of the Consumer Financial Protection 

10 Act of 2010 is amended— 

11 (1) in subsection (a)— 

12 (A) by amending the heading of such sub13 section to read as follows: ‘‘BUDGET, FINAN14 CIAL MANAGEMENT, AND AUDIT.—’’; 

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

16 (3); 

17 (C) by redesignating paragraphs (4) and 

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

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

20 of paragraph (1), as so redesignated; 

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

22 (3) by redesignating subsection (e) as sub23 section (b); and 

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

mstockstill on DSK4VPTVN1PROD with BILLS

25 

HR 5652 PCS 

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

2 (3) and inserting the following: 

3 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

4 There is authorized to be appropriated 

5 $200,000,000 to carry out this title for each of fiscal 

6 years 2012 and 2013.’’; and 

7 (B) by redesignating paragraph (4) as 

8 paragraph (2). 

9 Subtitle D—Flood Insurance 

10 Reform 

11 SEC. 341. SHORT TITLE. 

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

13 Reform Act of 2012’’. 

14 SEC. 342. EXTENSIONS. 

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

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

17 is amended by striking ‘‘the earlier of the date of the en18 actment into law of an Act that specifically amends the 

19 date specified in this section or May 31, 2012’’ and insert20 ing ‘‘September 30, 2016’’. 

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

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

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

24 that specifically amends the date specified in this section 

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

mstockstill on DSK4VPTVN1PROD with BILLS

26 

HR 5652 PCS 

1 SEC. 343. MANDATORY PURCHASE. 

2 (a) AUTHORITY TO TEMPORARILY SUSPEND MANDA3 TORY PURCHASE REQUIREMENT.— 

4 (1) IN GENERAL.—Section 102 of the Flood 

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

6 is amended by adding at the end the following new 

7 subsection: 

8 ‘‘(i) AUTHORITY TO TEMPORARILY SUSPEND MAN9 DATORY PURCHASE REQUIREMENT.— 

10 ‘‘(1) FINDING BY ADMINISTRATOR THAT AREA

11 IS AN ELIGIBLE AREA.—For any area, upon a re12 quest submitted to the Administrator by a local gov13 ernment authority having jurisdiction over any por14 tion of the area, the Administrator shall make a 

15 finding of whether the area is an eligible area under 

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

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

18 the discretion of the Administrator, designate a pe19 riod during which such finding shall be effective, 

20 which shall not be longer in duration than 12 

21 months. 

22 ‘‘(2) SUSPENSION OF MANDATORY PURCHASE

23 REQUIREMENT.—If the Administrator makes a find24 ing under paragraph (1) that an area is an eligible 

25 area under paragraph (3), during the period speci26 fied in the finding, the designation of such eligible 

mstockstill on DSK4VPTVN1PROD with BILLS

27 

HR 5652 PCS 

1 area as an area having special flood hazards shall 

2 not be effective for purposes of subsections (a), (b), 

3 and (e) of this section, and section 202(a) of this 

4 Act. Nothing in this paragraph may be construed to 

5 prevent any lender, servicer, regulated lending insti6 tution, Federal agency lender, the Federal National 

7 Mortgage Association, or the Federal Home Loan 

8 Mortgage Corporation, at the discretion of such enti9 ty, from requiring the purchase of flood insurance 

10 coverage in connection with the making, increasing, 

11 extending, or renewing of a loan secured by im12 proved real estate or a mobile home located or to be 

13 located in such eligible area during such period or 

14 a lender or servicer from purchasing coverage on be15 half of a borrower pursuant to subsection (e). 

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

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

18 pursuant to any issuance, revision, updating, or 

19 other change in flood insurance maps that takes ef20 fect on or after the date of the enactment of the 

21 Flood Insurance Reform Act of 2012, become des22 ignated as an area having special flood hazards and 

23 that meets any one of the following 3 requirements: 

24 ‘‘(A) AREAS WITH NO HISTORY OF SPE25 CIAL FLOOD HAZARDS.—The area does not inmstockstill on DSK4VPTVN1PROD with BILLS

28 

HR 5652 PCS 

1 clude any area that has ever previously been 

2 designated as an area having special flood haz3 ards. 

4 ‘‘(B) AREAS WITH FLOOD PROTECTION

5 SYSTEMS UNDER IMPROVEMENTS.—The area 

6 was intended to be protected by a flood protec7 tion system— 

8 ‘‘(i) that has been decertified, or is re9 quired to be certified, as providing protec10 tion for the 100-year frequency flood 

11 standard; 

12 ‘‘(ii) that is being improved, con13 structed, or reconstructed; and 

14 ‘‘(iii) for which the Administrator has 

15 determined measurable progress toward 

16 completion of such improvement, construc17 tion, reconstruction is being made and to18 ward securing financial commitments suffi19 cient to fund such completion. 

20 ‘‘(C) AREAS FOR WHICH APPEAL HAS

21 BEEN FILED.—An area for which a community 

22 has appealed designation of the area as having 

23 special flood hazards in a timely manner under 

24 section 1363. 

mstockstill on DSK4VPTVN1PROD with BILLS

29 

HR 5652 PCS 

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

2 submitted by a local government authority having 

3 jurisdiction over any portion of the eligible area, the 

4 Administrator may extend the period during which a 

5 finding under paragraph (1) shall be effective, ex6 cept that— 

7 ‘‘(A) each such extension under this para8 graph shall not be for a period exceeding 12 

9 months; and 

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

11 of such extensions may not exceed 2. 

12 ‘‘(5) ADDITIONAL EXTENSION FOR COMMU13 NITIES MAKING MORE THAN ADEQUATE PROGRESS

14 ON FLOOD PROTECTION SYSTEM.— 

15 ‘‘(A) EXTENSION.— 

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

17 in subparagraph (B), in the case of an eli18 gible area for which the Administrator has, 

19 pursuant to paragraph (4), extended the 

20 period of effectiveness of the finding under 

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

22 submitted by a local government authority 

23 having jurisdiction over any portion of the 

24 eligible area, if the Administrator finds 

25 that more than adequate progress has been 

mstockstill on DSK4VPTVN1PROD with BILLS

30 

HR 5652 PCS 

1 made on the construction of a flood protec2 tion system for such area, as determined in 

3 accordance with the last sentence of sec4 tion 1307(e) of the National Flood Insur5 ance Act of 1968 (42 U.S.C. 4014(e)), the 

6 Administrator may, in the discretion of the 

7 Administrator, further extend the period 

8 during which the finding under paragraph 

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

10 additional 12 months. 

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

12 the cumulative number of extensions under 

13 this subparagraph may not exceed 2. 

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

15 ‘‘(i) EXCLUSION.—Any extension 

16 under subparagraph (A) of this paragraph 

17 of a finding under paragraph (1) shall not 

18 be effective with respect to any excluded 

19 property after the origination, increase, ex20 tension, or renewal of the loan referred to 

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

22 ‘‘(ii) EXCLUDED PROPERTIES.—For 

23 purposes of this subparagraph, the term 

24 ‘excluded property’ means any improved 

25 real estate or mobile home— 

mstockstill on DSK4VPTVN1PROD with BILLS

31 

HR 5652 PCS 

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

2 area; and 

3 ‘‘(II) for which, during the period 

4 that any extension under subpara5 graph (A) of this paragraph of a find6 ing under paragraph (1) is otherwise 

7 in effect for the eligible area in which 

8 such property is located— 

9 ‘‘(aa) a loan that is secured 

10 by the property is originated; or 

11 ‘‘(bb) any existing loan that 

12 is secured by the property is in13 creased, extended, or renewed. 

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

15 this subsection may be construed to affect the appli16 cability of a designation of any area as an area hav17 ing special flood hazards for purposes of the avail18 ability of flood insurance coverage, criteria for land 

19 management and use, notification of flood hazards, 

20 eligibility for mitigation assistance, or any other pur21 pose or provision not specifically referred to in para22 graph (2). 

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

24 each annual report submitted pursuant to section 

25 1320, include information identifying each finding 

mstockstill on DSK4VPTVN1PROD with BILLS

32 

HR 5652 PCS 

1 under paragraph (1) by the Administrator during 

2 the preceding year that an area is an area having 

3 special flood hazards, the basis for each such find4 ing, any extensions pursuant to paragraph (4) of the 

5 periods of effectiveness of such findings, and the 

6 reasons for such extensions.’’. 

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

8 or the amendments made by this subsection may be 

9 construed to authorize or require any payment or re10 fund for flood insurance coverage purchased for any 

11 property that covered any period during which such 

12 coverage is not required for the property pursuant to 

13 the applicability of the amendment made by para14 graph (1). 

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

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

17 1973 (42 U.S.C. 4012a(e)) is amended— 

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

19 and inserting ‘‘insurance, including premiums or 

20 fees incurred for coverage beginning on the date on 

21 which flood insurance coverage lapsed or did not 

22 provide a sufficient coverage amount.’’; 

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

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

mstockstill on DSK4VPTVN1PROD with BILLS

33 

HR 5652 PCS 

1 (3) by inserting after paragraph (2) the fol2 lowing new paragraphs: 

3 ‘‘(3) TERMINATION OF FORCE-PLACED INSUR4 ANCE.—Within 30 days of receipt by the lender or 

5 servicer of a confirmation of a borrower’s existing 

6 flood insurance coverage, the lender or servicer 

7 shall— 

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

9 and 

10 ‘‘(B) refund to the borrower all force11 placed insurance premiums paid by the bor12 rower during any period during which the bor13 rower’s flood insurance coverage and the force14 placed flood insurance coverage were each in ef15 fect, and any related fees charged to the bor16 rower with respect to the force-placed insurance 

17 during such period. 

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

19 purposes of confirming a borrower’s existing flood 

20 insurance coverage, a lender or servicer for a loan 

21 shall accept from the borrower an insurance policy 

22 declarations page that includes the existing flood in23 surance policy number and the identity of, and con24 tact information for, the insurance company or 

25 agent.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

34 

HR 5652 PCS 

1 (c) USE OF PRIVATE INSURANCE TO SATISFY MAN2 DATORY PURCHASE REQUIREMENT.—Section 102(b) of 

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

4 4012a(b)) is amended— 

5 (1) in paragraph (1)— 

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

7 make’’ and inserting ‘‘lending institutions— 

8 ‘‘(A) not to make’’; 

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

10 subparagraph (A) of this paragraph, by striking 

11 ‘‘less.’’ and inserting ‘‘less; and’’; and 

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

13 subparagraph: 

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

15 satisfaction of the flood insurance coverage re16 quirement under subparagraph (A) if the cov17 erage provided by such private flood insurance 

18 meets the requirements for coverage under such 

19 subparagraph.’’; 

20 (2) in paragraph (2), by inserting after ‘‘pro21 vided in paragraph (1).’’ the following new sentence: 

22 ‘‘Each Federal agency lender shall accept private 

23 flood insurance as satisfaction of the flood insurance 

24 coverage requirement under the preceding sentence 

25 if the flood insurance coverage provided by such primstockstill on DSK4VPTVN1PROD with BILLS

35 

HR 5652 PCS 

1 vate flood insurance meets the requirements for cov2 erage under such sentence.’’; 

3 (3) in paragraph (3), in the matter following 

4 subparagraph (B), by adding at the end the fol5 lowing new sentence: ‘‘The Federal National Mort6 gage Association and the Federal Home Loan Mort7 gage Corporation shall accept private flood insurance 

8 as satisfaction of the flood insurance coverage re9 quirement under the preceding sentence if the flood 

10 insurance coverage provided by such private flood in11 surance meets the requirements for coverage under 

12 such sentence.’’; and 

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

14 paragraph: 

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

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

17 means a contract for flood insurance coverage al18 lowed for sale under the laws of any State.’’. 

19 SEC. 344. REFORMS OF COVERAGE TERMS. 

20 (a) MINIMUM DEDUCTIBLES FOR CLAIMS.—Section 

21 1312 of the National Flood Insurance Act of 1968 (42 

22 U.S.C. 4019) is amended— 

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

24 the following: ‘‘(a) IN GENERAL.—The Adminis25 trator is’’; and 

mstockstill on DSK4VPTVN1PROD with BILLS

36 

HR 5652 PCS 

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

2 ‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 

3 ‘‘(1) SUBSIDIZED RATE PROPERTIES.—For any 

4 structure that is covered by flood insurance under 

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

6 coverage is less than the applicable estimated risk 

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

8 (or subdivision thereof) in which such structure is 

9 located, the minimum annual deductible for damage 

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

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

12 structure that is covered by flood insurance under 

13 this title, for which the chargeable rate for such cov14 erage is not less than the applicable estimated risk 

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

16 (or subdivision thereof) in which such structure is 

17 located, the minimum annual deductible for damage 

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

19 (b) CLARIFICATION OF RESIDENTIAL AND COMMER20 CIAL COVERAGE LIMITS.—Section 1306(b) of the Na21 tional Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) 

22 is amended— 

23 (1) in paragraph (2)— 

24 (A) by striking ‘‘in the case of any residen25 tial property’’ and inserting ‘‘in the case of any 

mstockstill on DSK4VPTVN1PROD with BILLS

37 

HR 5652 PCS 

1 residential building designed for the occupancy 

2 of from one to four families’’; and 

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

4 every insured upon renewal and every applicant 

5 for insurance so as to enable such insured or 

6 applicant to receive coverage up to a total 

7 amount (including such limits specified in para8 graph (1)(A)(i)) of $250,000’’ and inserting 

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

10 single such building, up to an aggregate liability 

11 (including such limits specified in paragraph 

12 (1)(A)(i)) of $250,000’’; and 

13 (2) in paragraph (4)— 

14 (A) by striking ‘‘in the case of any nonresi15 dential property, including churches,’’ and in16 serting ‘‘in the case of any nonresidential build17 ing, including a church,’’; and 

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

19 every insured upon renewal and every applicant 

20 for insurance, in respect to any single structure, 

21 up to a total amount (including such limit spec22 ified in subparagraph (B) or (C) of paragraph 

23 (1), as applicable) of $500,000 for each struc24 ture and $500,000 for any contents related to 

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

mstockstill on DSK4VPTVN1PROD with BILLS

38 

HR 5652 PCS 

1 available with respect to any single such build2 ing, up to an aggregate liability (including such 

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

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

5 coverage shall be made available up to a total 

6 of $500,000 aggregate liability for contents 

7 owned by the building owner and $500,000 ag8 gregate liability for each unit within the build9 ing for contents owned by the tenant’’. 

10 (c) INDEXING OF MAXIMUM COVERAGE LIMITS.— 

11 Subsection (b) of section 1306 of the National Flood In12 surance Act of 1968 (42 U.S.C. 4013(b)) is amended— 

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

14 end; 

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

16 the end and inserting ‘‘; and’’; 

17 (3) by redesignating paragraph (5) as para18 graph (7); and 

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

20 paragraph: 

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

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

23 adjusted effective on the date of the enactment of 

24 the Flood Insurance Reform Act of 2012, such ad25 justments shall be calculated using the percentage 

mstockstill on DSK4VPTVN1PROD with BILLS

39 

HR 5652 PCS 

1 change, over the period beginning on September 30, 

2 1994, and ending on such date of enactment, in 

3 such inflationary index as the Administrator shall, 

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

5 adjustment shall be rounded to the next lower dollar; 

6 and the Administrator shall cause to be published in 

7 the Federal Register the adjustments under this 

8 paragraph to such dollar amount limitations; except 

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

10 made available, pursuant to this paragraph, in an 

11 amount that exceeds the limitation otherwise appli12 cable to such coverage as specified in paragraph (2), 

13 (3), (4), (5), or (6), the total of such coverage shall 

14 be made available only at chargeable rates that are 

15 not less than the estimated premium rates for such 

16 coverage determined in accordance with section 

17 1307(a)(1).’’. 

18 (d) OPTIONAL COVERAGE FOR LOSS OF USE OF PER19 SONAL RESIDENCE AND BUSINESS INTERRUPTION.—Sub20 section (b) of section 1306 of the National Flood Insur21 ance Act of 1968 (42 U.S.C. 4013(b)), as amended by 

22 the preceding provisions of this section, is further amend23 ed by inserting after paragraph (4) the following new 

24 paragraphs: 

mstockstill on DSK4VPTVN1PROD with BILLS

40 

HR 5652 PCS 

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

2 case of any residential property, each renewal or new 

3 contract for flood insurance coverage may provide 

4 not more than $5,000 aggregate liability per dwell5 ing unit for any necessary increases in living ex6 penses incurred by the insured when losses from a 

7 flood make the residence unfit to live in, except 

8 that— 

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

10 the option of the insured; 

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

12 available only at chargeable rates that are not 

13 less than the estimated premium rates for such 

14 coverage determined in accordance with section 

15 1307(a)(1); and 

16 ‘‘(C) the Administrator may make such 

17 coverage available only if the Administrator 

18 makes a determination and causes notice of 

19 such determination to be published in the Fed20 eral Register that— 

21 ‘‘(i) a competitive private insurance 

22 market for such coverage does not exist; 

23 and 

24 ‘‘(ii) the national flood insurance pro25 gram has the capacity to make such covmstockstill on DSK4VPTVN1PROD with BILLS

41 

HR 5652 PCS 

1 erage available without borrowing funds 

2 from the Secretary of the Treasury under 

3 section 1309 or otherwise; 

4 ‘‘(6) the Administrator may provide that, in the 

5 case of any commercial property or other residential 

6 property, including multifamily rental property, cov7 erage for losses resulting from any partial or total 

8 interruption of the insured’s business caused by 

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

10 may be made available to every insured upon re11 newal and every applicant, up to a total amount of 

12 $20,000 per property, except that— 

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

14 the option of the insured; 

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

16 available only at chargeable rates that are not 

17 less than the estimated premium rates for such 

18 coverage determined in accordance with section 

19 1307(a)(1); and 

20 ‘‘(C) the Administrator may make such 

21 coverage available only if the Administrator 

22 makes a determination and causes notice of 

23 such determination to be published in the Fed24 eral Register that— 

mstockstill on DSK4VPTVN1PROD with BILLS

42 

HR 5652 PCS 

1 ‘‘(i) a competitive private insurance 

2 market for such coverage does not exist; 

3 and 

4 ‘‘(ii) the national flood insurance pro5 gram has the capacity to make such cov6 erage available without borrowing funds 

7 from the Secretary of the Treasury under 

8 section 1309 or otherwise;’’. 

9 (e) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR

10 RESIDENTIAL PROPERTIES.—Section 1306 of the Na11 tional Flood Insurance Act of 1968 (42 U.S.C. 4013) is 

12 amended by adding at the end the following new sub13 section: 

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

15 RESIDENTIAL PROPERTIES.— 

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

17 terms and conditions under subsection (a), such reg18 ulations shall provide that, in the case of any resi19 dential property, premiums for flood insurance cov20 erage made available under this title for such prop21 erty may be paid in installments. 

22 ‘‘(2) LIMITATIONS.—In implementing the au23 thority under paragraph (1), the Administrator may 

24 establish increased chargeable premium rates and 

25 surcharges, and deny coverage and establish such 

mstockstill on DSK4VPTVN1PROD with BILLS

43 

HR 5652 PCS 

1 other sanctions, as the Administrator considers nec2 essary to ensure that insureds purchase, pay for, 

3 and maintain coverage for the full term of a contract 

4 for flood insurance coverage or to prevent insureds 

5 from purchasing coverage only for periods during a 

6 year when risk of flooding is comparatively higher or 

7 canceling coverage for periods when such risk is 

8 comparatively lower.’’. 

9 (f) EFFECTIVE DATE OF POLICIES COVERING PROP10 ERTIES AFFECTED BY FLOODS IN PROGRESS.—Para11 graph (1) of section 1306(c) of the National Flood Insur12 ance Act of 1968 (42 U.S.C. 4013(c)) is amended by add13 ing after the period at the end the following: ‘‘With respect 

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

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

16 coverage for a property shall take effect upon the expira17 tion of such 30-day period and shall cover damage to such 

18 property occurring after the expiration of such period that 

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

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

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

22 SEC. 345. REFORMS OF PREMIUM RATES. 

23 (a) INCREASE IN ANNUAL LIMITATION ON PREMIUM

24 INCREASES.—Section 1308(e) of the National Flood Inmstockstill on DSK4VPTVN1PROD with BILLS

44 

HR 5652 PCS 

1 surance Act of 1968 (42 U.S.C. 4015(e)) is amended by 

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

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

4 IN NEWLY MAPPED AREAS.— 

5 (1) IN GENERAL.—Section 1308 of the Na6 tional Flood Insurance Act of 1968 (42 U.S.C. 

7 4015) is amended— 

8 (A) in subsection (a), in the matter pre9 ceding paragraph (1), by inserting ‘‘or notice’’ 

10 after ‘‘prescribe by regulation’’; 

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

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

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

14 subsection: 

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

16 RATES FOR CERTAIN PROPERTIES IN NEWLY MAPPED

17 AREAS.— 

18 ‘‘(1) 5-YEAR PHASE-IN PERIOD.—Notwith19 standing subsection (c) or any other provision of law 

20 relating to chargeable risk premium rates for flood 

21 insurance coverage under this title, in the case of 

22 any area that was not previously designated as an 

23 area having special flood hazards and that, pursuant 

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

25 in flood insurance maps, becomes designated as such 

mstockstill on DSK4VPTVN1PROD with BILLS

45 

HR 5652 PCS 

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

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

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

4 changed, become effective, the chargeable premium 

5 rate for flood insurance under this title with respect 

6 to any covered property that is located within such 

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

8 ‘‘(2) APPLICABILITY TO PREFERRED RISK RATE

9 AREAS.—In the case of any area described in para10 graph (1) that consists of or includes an area that, 

11 as of date of the effectiveness of the flood insurance 

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

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

14 for any reason for preferred risk rate method pre15 miums for flood insurance coverage and was eligible 

16 for such premiums as of the enactment of the Flood 

17 Insurance Reform Act of 2012, the 5-year period re18 ferred to in paragraph (1) for such area eligible for 

19 preferred risk rate method premiums shall begin 

20 upon the expiration of the period during which such 

21 area is eligible for such preferred risk rate method 

22 premiums. 

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

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

25 the chargeable risk premium rate for flood insurance 

mstockstill on DSK4VPTVN1PROD with BILLS

46 

HR 5652 PCS 

1 under this title for a covered property that is located 

2 in such area shall be— 

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

4 referred to in paragraph (1), the greater of— 

5 ‘‘(i) 20 percent of the chargeable risk 

6 premium rate otherwise applicable under 

7 this title to the property; and 

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

9 as of the beginning of such first year, is el10 igible for preferred risk rate method pre11 miums for flood insurance coverage, such 

12 preferred risk rate method premium for 

13 the property; 

14 ‘‘(B) for the second year of such 5-year pe15 riod, 40 percent of the chargeable risk premium 

16 rate otherwise applicable under this title to the 

17 property; 

18 ‘‘(C) for the third year of such 5-year pe19 riod, 60 percent of the chargeable risk premium 

20 rate otherwise applicable under this title to the 

21 property; 

22 ‘‘(D) for the fourth year of such 5-year pe23 riod, 80 percent of the chargeable risk premium 

24 rate otherwise applicable under this title to the 

25 property; and 

mstockstill on DSK4VPTVN1PROD with BILLS

47 

HR 5652 PCS 

1 ‘‘(E) for the fifth year of such 5-year pe2 riod, 100 percent of the chargeable risk pre3 mium rate otherwise applicable under this title 

4 to the property. 

5 ‘‘(4) COVERED PROPERTIES.—For purposes of 

6 the subsection, the term ‘covered property’ means 

7 any residential property occupied by its owner or a 

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

9 (2) REGULATION OR NOTICE.—The Adminis10 trator of the Federal Emergency Management Agen11 cy shall issue an interim final rule or notice to im12 plement this subsection and the amendments made 

13 by this subsection as soon as practicable after the 

14 date of the enactment of this Act. 

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

16 PROPERTIES.— 

17 (1) IN GENERAL.—Section 1308(c) of the Na18 tional Flood Insurance Act of 1968 (42 U.S.C. 

19 4015(c)) is amended— 

20 (A) by redesignating paragraph (2) as 

21 paragraph (7); and 

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

23 following new paragraphs: 

24 ‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi25 dential property. 

mstockstill on DSK4VPTVN1PROD with BILLS

48 

HR 5652 PCS 

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

2 Any residential property that is not the primary res3 idence of any individual. 

4 ‘‘(4) HOMES SOLD TO NEW OWNERS.—Any sin5 gle family property that— 

6 ‘‘(A) has been constructed or substantially 

7 improved and for which such construction or 

8 improvement was started, as determined by the 

9 Administrator, before December 31, 1974, or 

10 before the effective date of the initial rate map 

11 published by the Administrator under para12 graph (2) of section 1360(a) for the area in 

13 which such property is located, whichever is 

14 later; and 

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

16 of this paragraph, pursuant to section 

17 345(c)(3)(A) of the Flood Insurance Reform 

18 Act of 2012. 

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

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

21 of the Flood Insurance Reform Act of 2012, has ex22 perienced or sustained— 

23 ‘‘(A) substantial flood damage exceeding 

24 50 percent of the fair market value of such 

25 property; or 

mstockstill on DSK4VPTVN1PROD with BILLS

49 

HR 5652 PCS 

1 ‘‘(B) substantial improvement exceeding 

2 30 percent of the fair market value of such 

3 property. 

4 ‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se5 vere repetitive loss property (as such term is defined 

6 in section 1366(j)).’’. 

7 (2) TECHNICAL AMENDMENTS.—Section 1308 

8 of the National Flood Insurance Act of 1968 (42 

9 U.S.C. 4015) is amended— 

10 (A) in subsection (c)— 

11 (i) in the matter preceding paragraph 

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

13 under paragraphs (1) and (2)’’ and insert14 ing ‘‘subsection (e)’’; and 

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

16 except’’ and all that follows through ‘‘sub17 section (e)’’; and 

18 (B) in subsection (e), by striking ‘‘para19 graph (2) or (3)’’ and inserting ‘‘paragraph 

20 (7)’’. 

21 (3) EFFECTIVE DATE AND TRANSITION.— 

22 (A) EFFECTIVE DATE.—The amendments 

23 made by paragraphs (1) and (2) shall apply be24 ginning upon the expiration of the 12-month 

25 period that begins on the date of the enactment 

mstockstill on DSK4VPTVN1PROD with BILLS

50 

HR 5652 PCS 

1 of this Act, except as provided in subparagraph 

2 (B) of this paragraph. 

3 (B) TRANSITION FOR PROPERTIES COV4 ERED BY FLOOD INSURANCE UPON EFFECTIVE

5 DATE.— 

6 (i) INCREASE OF RATES OVER TIME.— 

7 In the case of any property described in 

8 paragraph (2), (3), (4), (5), or (6) of sec9 tion 1308(c) of the National Flood Insur10 ance Act of 1968, as amended by para11 graph (1) of this subsection, that, as of the 

12 effective date under subparagraph (A) of 

13 this paragraph, is covered under a policy 

14 for flood insurance made available under 

15 the national flood insurance program for 

16 which the chargeable premium rates are 

17 less than the applicable estimated risk pre18 mium rate under section 1307(a)(1) of 

19 such Act for the area in which the prop20 erty is located, the Administrator of the 

21 Federal Emergency Management Agency 

22 shall increase the chargeable premium 

23 rates for such property over time to such 

24 applicable estimated risk premium rate 

25 under section 1307(a)(1). 

mstockstill on DSK4VPTVN1PROD with BILLS

51 

HR 5652 PCS 

1 (ii) AMOUNT OF ANNUAL INCREASE.— 

2 Such increase shall be made by increasing 

3 the chargeable premium rates for the prop4 erty (after application of any increase in 

5 the premium rates otherwise applicable to 

6 such property), once during the 12-month 

7 period that begins upon the effective date 

8 under subparagraph (A) of this paragraph 

9 and once every 12 months thereafter until 

10 such increase is accomplished, by 20 per11 cent (or such lesser amount as may be nec12 essary so that the chargeable rate does not 

13 exceed such applicable estimated risk pre14 mium rate or to comply with clause (iii)). 

15 (iii) PROPERTIES SUBJECT TO PHASE16 IN AND ANNUAL INCREASES.—In the case 

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

18 defined in section 578(b) of the National 

19 Flood Insurance Reform Act of 1974), the 

20 aggregate increase, during any 12-month 

21 period, in the chargeable premium rate for 

22 the property that is attributable to this 

23 subparagraph or to an increase described 

24 in section 1308(e) of the National Flood 

mstockstill on DSK4VPTVN1PROD with BILLS

52 

HR 5652 PCS 

1 Insurance Act of 1968 may not exceed 20 

2 percent. 

3 (iv) FULL ACTUARIAL RATES.—The 

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

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

6 to such a property upon the accomplish7 ment of the increase under this subpara8 graph and thereafter. 

9 (d) PROHIBITION OF EXTENSION OF SUBSIDIZED

10 RATES TO LAPSED POLICIES.—Section 1308 of the Na11 tional Flood Insurance Act of 1968 (42 U.S.C. 4015), as 

12 amended by the preceding provisions of this subtitle, is 

13 further amended— 

14 (1) in subsection (e), by inserting ‘‘or sub15 section (h)’’ after ‘‘subsection (c)’’; and 

16 (2) by adding at the end the following new sub17 section: 

18 ‘‘(h) PROHIBITION OF EXTENSION OF SUBSIDIZED

19 RATES TO LAPSED POLICIES.—Notwithstanding any 

20 other provision of law relating to chargeable risk premium 

21 rates for flood insurance coverage under this title, the Ad22 ministrator shall not provide flood insurance coverage 

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

24 such coverage for the property has previously lapsed in 

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

mstockstill on DSK4VPTVN1PROD with BILLS

53 

HR 5652 PCS 

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

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

3 in which such property is located.’’. 

4 (e) RECOGNITION OF STATE AND LOCAL FUNDING

5 FOR CONSTRUCTION, RECONSTRUCTION, AND IMPROVE6 MENT OF FLOOD PROTECTION SYSTEMS IN DETERMINA7 TION OF RATES.— 

8 (1) IN GENERAL.—Section 1307 of the Na9 tional Flood Insurance Act of 1968 (42 U.S.C. 

10 4014) is amended— 

11 (A) in subsection (e)— 

12 (i) in the first sentence, by striking 

13 ‘‘construction of a flood protection system’’ 

14 and inserting ‘‘construction, reconstruc15 tion, or improvement of a flood protection 

16 system (without respect to the level of Fed17 eral investment or participation)’’; and 

18 (ii) in the second sentence— 

19 (I) by striking ‘‘construction of a 

20 flood protection system’’ and inserting 

21 ‘‘construction, reconstruction, or im22 provement of a flood protection sys23 tem’’; and 

mstockstill on DSK4VPTVN1PROD with BILLS

54 

HR 5652 PCS 

1 (II) by inserting ‘‘based on the 

2 present value of the completed sys3 tem’’ after ‘‘has been expended’’; and 

4 (B) in subsection (f)— 

5 (i) in the first sentence in the matter 

6 preceding paragraph (1), by inserting 

7 ‘‘(without respect to the level of Federal 

8 investment or participation)’’ before the 

9 period at the end; 

10 (ii) in the third sentence in the matter 

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

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

13 flood hazard’’; and 

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

15 Federal agency in consultation with the 

16 local project sponsor’’ and inserting ‘‘the 

17 entity or entities that own, operate, main18 tain, or repair such system’’. 

19 (2) REGULATIONS.—The Administrator of the 

20 Federal Emergency Management Agency shall pro21 mulgate regulations to implement this subsection 

22 and the amendments made by this subsection as 

23 soon as practicable, but not more than 18 months 

24 after the date of the enactment of this Act. Para25 graph (3) may not be construed to annul, alter, afmstockstill on DSK4VPTVN1PROD with BILLS

55 

HR 5652 PCS 

1 fect, authorize any waiver of, or establish any excep2 tion to, the requirement under the preceding sen3 tence. 

4 SEC. 346. TECHNICAL MAPPING ADVISORY COUNCIL. 

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

6 to be known as the Technical Mapping Advisory Council 

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

8 (b) MEMBERSHIP.— 

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

10 of— 

11 (A) the Administrator of the Federal 

12 Emergency Management Agency (in this section 

13 referred to as the ‘‘Administrator’’), or the des14 ignee thereof; 

15 (B) the Director of the United States Geo16 logical Survey of the Department of the Inte17 rior, or the designee thereof; 

18 (C) the Under Secretary of Commerce for 

19 Oceans and Atmosphere, or the designee there20 of; 

21 (D) the commanding officer of the United 

22 States Army Corps of Engineers, or the des23 ignee thereof; 

mstockstill on DSK4VPTVN1PROD with BILLS

56 

HR 5652 PCS 

1 (E) the chief of the Natural Resources 

2 Conservation Service of the Department of Ag3 riculture, or the designee thereof; 

4 (F) the Director of the United States Fish 

5 and Wildlife Service of the Department of the 

6 Interior, or the designee thereof; 

7 (G) the Assistant Administrator for Fish8 eries of the National Oceanic and Atmospheric 

9 Administration of the Department of Com10 merce, or the designee thereof; and 

11 (H) 14 additional members to be appointed 

12 by the Administrator of the Federal Emergency 

13 Management Agency, who shall be— 

14 (i) an expert in data management; 

15 (ii) an expert in real estate; 

16 (iii) an expert in insurance; 

17 (iv) a member of a recognized regional 

18 flood and storm water management organi19 zation; 

20 (v) a representative of a State emer21 gency management agency or association 

22 or organization for such agencies; 

23 (vi) a member of a recognized profes24 sional surveying association or organiza25 tion; 

mstockstill on DSK4VPTVN1PROD with BILLS

57 

HR 5652 PCS 

1 (vii) a member of a recognized profes2 sional mapping association or organization; 

3 (viii) a member of a recognized pro4 fessional engineering association or organi5 zation; 

6 (ix) a member of a recognized profes7 sional association or organization rep8 resenting flood hazard determination firms; 

9 (x) a representative of State national 

10 flood insurance coordination offices; 

11 (xi) representatives of two local gov12 ernments, at least one of whom is a local 

13 levee flood manager or executive, des14 ignated by the Federal Emergency Man15 agement Agency as Cooperating Technical 

16 Partners; and 

17 (xii) representatives of two State gov18 ernments designated by the Federal Emer19 gency Management Agency as Cooperating 

20 Technical States. 

21 (2) QUALIFICATIONS.—Members of the Council 

22 shall be appointed based on their demonstrated 

23 knowledge and competence regarding surveying, car24 tography, remote sensing, geographic information 

25 systems, or the technical aspects of preparing and 

mstockstill on DSK4VPTVN1PROD with BILLS

58 

HR 5652 PCS 

1 using flood insurance rate maps. In appointing 

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

3 shall ensure that the membership of the Council has 

4 a balance of Federal, State, local, and private mem5 bers, and includes an adequate number of represent6 atives from the States with coastline on the Gulf of 

7 Mexico and other States containing areas identified 

8 by the Administrator of the Federal Emergency 

9 Management Agency as at high-risk for flooding or 

10 special flood hazard areas. 

11 (c) DUTIES.— 

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

13 the expiration of the 12-month period beginning 

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

15 Council shall develop and submit to the Adminis16 trator and the Congress proposed new mapping 

17 standards for 100-year flood insurance rate maps 

18 used under the national flood insurance program 

19 under the National Flood Insurance Act of 1968. In 

20 developing such proposed standards the Council 

21 shall— 

22 (A) ensure that the flood insurance rate 

23 maps reflect true risk, including graduated risk 

24 that better reflects the financial risk to each 

25 property; such reflection of risk should be at 

mstockstill on DSK4VPTVN1PROD with BILLS

59 

HR 5652 PCS 

1 the smallest geographic level possible (but not 

2 necessarily property-by-property) to ensure that 

3 communities are mapped in a manner that 

4 takes into consideration different risk levels 

5 within the community; 

6 (B) ensure the most efficient generation, 

7 display, and distribution of flood risk data, 

8 models, and maps where practicable through 

9 dynamic digital environments using spatial 

10 database technology and the Internet; 

11 (C) ensure that flood insurance rate maps 

12 reflect current hydrologic and hydraulic data, 

13 current land use, and topography, incorporating 

14 the most current and accurate ground and 

15 bathymetric elevation data; 

16 (D) determine the best ways to include in 

17 such flood insurance rate maps levees, decerti18 fied levees, and areas located below dams, in19 cluding determining a methodology for ensuring 

20 that decertified levees and other protections are 

21 included in flood insurance rate maps and their 

22 corresponding flood zones reflect the level of 

23 protection conferred; 

24 (E) consider how to incorporate restored 

25 wetlands and other natural buffers into flood 

mstockstill on DSK4VPTVN1PROD with BILLS

60 

HR 5652 PCS 

1 insurance rate maps, which may include wet2 lands, groundwater recharge areas, erosion 

3 zones, meander belts, endangered species habi4 tat, barrier islands and shoreline buffer fea5 tures, riparian forests, and other features; 

6 (F) consider whether to use vertical posi7 tioning (as defined by the Administrator) for 

8 flood insurance rate maps; 

9 (G) ensure that flood insurance rate maps 

10 differentiate between a property that is located 

11 in a flood zone and a structure located on such 

12 property that is not at the same risk level for 

13 flooding as such property due to the elevation 

14 of the structure; 

15 (H) ensure that flood insurance rate maps 

16 take into consideration the best scientific data 

17 and potential future conditions (including pro18 jections for sea level rise); and 

19 (I) consider how to incorporate the new 

20 standards proposed pursuant to this paragraph 

21 in existing mapping efforts. 

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

23 an ongoing basis, review the mapping protocols de24 veloped pursuant to paragraph (1), and make rec25 ommendations to the Administrator when the Counmstockstill on DSK4VPTVN1PROD with BILLS

61 

HR 5652 PCS 

1 cil determines that mapping protocols should be al2 tered. 

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

4 under this section, the Council shall consult with 

5 stakeholders through at least 4 public meetings an6 nually, and shall seek input of all stakeholder inter7 ests including State and local representatives, envi8 ronmental and conservation organizations, insurance 

9 industry representatives, advocacy groups, planning 

10 organizations, and mapping organizations. 

11 (d) PROHIBITION ON COMPENSATION.—Members of 

12 the Council shall receive no additional compensation by 

13 reason of their service on the Council. 

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

15 the Chairperson of the Council. 

16 (f) STAFF.— 

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

18 the Administrator may detail, on a nonreimbursable 

19 basis, personnel of the Federal Emergency Manage20 ment Agency to assist the Council in carrying out its 

21 duties. 

22 (2) OTHER FEDERAL AGENCIES.—Upon request 

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

24 member of the Council may detail, on a non-reimmstockstill on DSK4VPTVN1PROD with BILLS

62 

HR 5652 PCS 

1 bursable basis, personnel to assist the Council in 

2 carrying out its duties. 

3 (g) POWERS.—In carrying out this section, the Coun4 cil may hold hearings, receive evidence and assistance, pro5 vide information, and conduct research, as the Council 

6 considers appropriate. 

7 (h) TERMINATION.—The Council shall terminate 

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

9 date of the enactment of this Act. 

10 (i) MORATORIUM ON FLOOD MAP CHANGES.— 

11 (1) MORATORIUM.—Except as provided in para12 graph (2) and notwithstanding any other provision 

13 of this subtitle, the National Flood Insurance Act of 

14 1968, or the Flood Disaster Protection Act of 1973, 

15 during the period beginning upon the date of the en16 actment of this Act and ending upon the submission 

17 by the Council to the Administrator and the Con18 gress of the proposed new mapping standards re19 quired under subsection (c)(1), the Administrator 

20 may not make effective any new or updated rate 

21 maps for flood insurance coverage under the na22 tional flood insurance program that were not in ef23 fect for such program as of such date of enactment, 

24 or otherwise revise, update, or change the flood inmstockstill on DSK4VPTVN1PROD with BILLS

63 

HR 5652 PCS 

1 surance rate maps in effect for such program as of 

2 such date. 

3 (2) LETTERS OF MAP CHANGE.—During the pe4 riod described in paragraph (1), the Administrator 

5 may revise, update, and change the flood insurance 

6 rate maps in effect for the national flood insurance 

7 program only pursuant to a letter of map change 

8 (including a letter of map amendment, letter of map 

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

10 SEC. 347. FEMA INCORPORATION OF NEW MAPPING PROTO11 COLS. 

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

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

14 submission by the Technical Mapping Advisory Council 

15 under section 346 of the proposed new mapping standards 

16 for flood insurance rate maps used under the national 

17 flood insurance program developed by the Council pursu18 ant to section 346(c), the Administrator of the Federal 

19 Emergency Management Agency (in this section referred 

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

21 for such rate maps based on such proposed new standards 

22 and the recommendations of the Council. 

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

24 insurance rate maps established by the Administrator pur25 suant to subsection (a) shall— 

mstockstill on DSK4VPTVN1PROD with BILLS

64 

HR 5652 PCS 

1 (1) delineate and include in any such rate 

2 maps— 

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

4 flood plain; and 

5 (B) areas subject to graduated and other 

6 risk levels, to the maximum extent possible; 

7 (2) ensure that any such rate maps— 

8 (A) include levees, including decertified lev9 ees, and the level of protection they confer; 

10 (B) reflect current land use and topog11 raphy and incorporate the most current and ac12 curate ground level data; 

13 (C) take into consideration the impacts 

14 and use of fill and the flood risks associated 

15 with altered hydrology; 

16 (D) differentiate between a property that 

17 is located in a flood zone and a structure lo18 cated on such property that is not at the same 

19 risk level for flooding as such property due to 

20 the elevation of the structure; 

21 (E) identify and incorporate natural fea22 tures and their associated flood protection bene23 fits into mapping and rates; and 

24 (F) identify, analyze, and incorporate the 

25 impact of significant changes to building and 

mstockstill on DSK4VPTVN1PROD with BILLS

65 

HR 5652 PCS 

1 development throughout any river or costal 

2 water system, including all tributaries, which 

3 may impact flooding in areas downstream; and 

4 (3) provide that such rate maps are developed 

5 on a watershed basis. 

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

7 flood insurance rate maps pursuant to subsection (a) of 

8 this section, the Administrator does not implement all of 

9 the recommendations of the Council made under the pro10 posed new mapping standards developed by the Council 

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

12 standards the Administrator shall submit a report to the 

13 Committee on Financial Services of the House of Rep14 resentatives and the Committee on Banking, Housing, and 

15 Urban Affairs of the Senate specifying which such rec16 ommendations were not adopted and explaining the rea17 sons such recommendations were not adopted. 

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

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

20 upon establishment of the new standards for flood insur21 ance rate maps pursuant to subsection (a) of this section, 

22 commence use of the new standards and updating of flood 

23 insurance rate maps in accordance with the new stand24 ards. Not later than the expiration of the 10-year period 

25 beginning upon the establishment of such new standards, 

mstockstill on DSK4VPTVN1PROD with BILLS

66 

HR 5652 PCS 

1 the Administrator shall complete updating of all flood in2 surance rate maps in accordance with the new standards, 

3 subject to the availability of sufficient amounts for such 

4 activities provided in appropriation Acts. 

5 (e) TEMPORARY SUSPENSION OF MANDATORY PUR6 CHASE REQUIREMENT FOR CERTAIN PROPERTIES.— 

7 (1) SUBMISSION OF ELEVATION CERTIFI8 CATE.—Subject to paragraphs (2) and (3) of this 

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

10 102 of the Flood Disaster Protection Act of 1973 

11 (42 U.S.C. 4012a), and section 202(a) of such Act, 

12 shall not apply to a property located in an area des13 ignated as having a special flood hazard if the owner 

14 of such property submits to the Administrator an 

15 elevation certificate for such property showing that 

16 the lowest level of the primary residence on such 

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

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

19 (2) REVIEW OF CERTIFICATE.—The Adminis20 trator shall accept as conclusive each elevation cer21 tificate submitted under paragraph (1) unless the 

22 Administrator conducts a subsequent elevation sur23 vey and determines that the lowest level of the pri24 mary residence on the property in question is not at 

25 an elevation that is at least three feet higher than 

mstockstill on DSK4VPTVN1PROD with BILLS

67 

HR 5652 PCS 

1 the elevation of the 100-year flood plain. The Ad2 ministrator shall provide any such subsequent ele3 vation survey to the owner of such property. 

4 (3) DETERMINATIONS FOR PROPERTIES ON

5 BORDERS OF SPECIAL FLOOD HAZARD AREAS.— 

6 (A) EXPEDITED DETERMINATION.—In the 

7 case of any survey for a property submitted to 

8 the Administrator pursuant to paragraph (1) 

9 showing that a portion of the property is lo10 cated within an area having special flood haz11 ards and that a structure located on the prop12 erty is not located within such area having spe13 cial flood hazards, the Administrator shall expe14 ditiously process any request made by an owner 

15 of the property for a determination pursuant to 

16 paragraph (2) or a determination of whether 

17 the structure is located within the area having 

18 special flood hazards. 

19 (B) PROHIBITION OF FEE.—If the Admin20 istrator determines pursuant to subparagraph 

21 (A) that the structure on the property is not lo22 cated within the area having special flood haz23 ards, the Administrator shall not charge a fee 

24 for reviewing the flood hazard data and shall 

mstockstill on DSK4VPTVN1PROD with BILLS

68 

HR 5652 PCS 

1 not require the owner to provide any additional 

2 elevation data. 

3 (C) SIMPLIFICATION OF REVIEW PROC4 ESS.—The Administrator shall collaborate with 

5 private sector flood insurers to simplify the re6 view process for properties described in sub7 paragraph (A) and to ensure that the review 

8 process provides for accurate determinations. 

9 (4) TERMINATION OF AUTHORITY.—This sub10 section shall cease to apply to a property on the date 

11 on which the Administrator updates the flood insur12 ance rate map that applies to such property in ac13 cordance with the requirements of subsection (d). 

14 SEC. 348. TREATMENT OF LEVEES. 

15 Section 1360 of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4101) is amended by adding at the end 

17 the following new subsection: 

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

19 may not issue flood insurance maps, or make effective up20 dated flood insurance maps, that omit or disregard the 

21 actual protection afforded by an existing levee, floodwall, 

22 pump or other flood protection feature, regardless of the 

23 accreditation status of such feature.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

69 

HR 5652 PCS 

1 SEC. 349. PRIVATIZATION INITIATIVES. 

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

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

4 of the enactment of this Act, the Administrator of the 

5 Federal Emergency Management Agency and the Comp6 troller General of the United States shall each conduct a 

7 separate study to assess a broad range of options, meth8 ods, and strategies for privatizing the national flood insur9 ance program and shall each submit a report to the Com10 mittee on Financial Services of the House of Representa11 tives and the Committee on Banking, Housing, and Urban 

12 Affairs of the Senate with recommendations for the best 

13 manner to accomplish such privatization. 

14 (b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 

15 (1) AUTHORITY.—The Administrator of the 

16 Federal Emergency Management Agency may carry 

17 out such private risk-management initiatives under 

18 the national flood insurance program as the Admin19 istrator considers appropriate to determine the ca20 pacity of private insurers, reinsurers, and financial 

21 markets to assist communities, on a voluntary basis 

22 only, in managing the full range of financial risks 

23 associated with flooding. 

24 (2) ASSESSMENT.—Not later than the expira25 tion of the 12-month period beginning on the date 

26 of the enactment of this Act, the Administrator shall 

mstockstill on DSK4VPTVN1PROD with BILLS

70 

HR 5652 PCS 

1 assess the capacity of the private reinsurance, cap2 ital, and financial markets by seeking proposals to 

3 assume a portion of the program’s insurance risk 

4 and submit to the Congress a report describing the 

5 response to such request for proposals and the re6 sults of such assessment. 

7 (3) PROTOCOL FOR RELEASE OF DATA.—The 

8 Administrator shall develop a protocol to provide for 

9 the release of data sufficient to conduct the assess10 ment required under paragraph (2). 

11 (c) REINSURANCE.—The National Flood Insurance 

12 Act of 1968 is amended— 

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

14 4051(a)(2)), by inserting ‘‘, including as reinsurance 

15 of insurance coverage provided by the flood insur16 ance program’’ before ‘‘, on such terms’’; 

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

18 4052(c)(2)), by inserting ‘‘or reinsurance’’ after 

19 ‘‘flood insurance coverage’’; 

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

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

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

23 paragraph: 

24 ‘‘(2) The Administrator is authorized to secure rein25 surance coverage of coverage provided by the flood insurmstockstill on DSK4VPTVN1PROD with BILLS

71 

HR 5652 PCS 

1 ance program from private market insurance, reinsurance, 

2 and capital market sources at rates and on terms deter3 mined by the Administrator to be reasonable and appro4 priate in an amount sufficient to maintain the ability of 

5 the program to pay claims and that minimizes the likeli6 hood that the program will utilize the borrowing authority 

7 provided under section 1309.’’; 

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

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

10 by inserting ‘‘, or for purposes of securing rein11 surance of insurance coverage provided by the 

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

13 (B) in paragraph (1)— 

14 (i) by striking ‘‘estimating’’ and in15 serting ‘‘Estimating’’; and 

16 (ii) by striking the semicolon at the 

17 end and inserting a period; 

18 (C) in paragraph (2)— 

19 (i) by striking ‘‘receiving’’ and insert20 ing ‘‘Receiving’’; and 

21 (ii) by striking the semicolon at the 

22 end and inserting a period; 

23 (D) in paragraph (3)— 

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

25 ‘‘Making’’; and 

mstockstill on DSK4VPTVN1PROD with BILLS

72 

HR 5652 PCS 

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

2 a period; 

3 (E) in paragraph (4)— 

4 (i) by striking ‘‘otherwise’’ and insert5 ing ‘‘Otherwise’’; and 

6 (ii) by redesignating such paragraph 

7 as paragraph (5); and 

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

9 following new paragraph: 

10 ‘‘(4) Placing reinsurance coverage on insurance 

11 provided by such program.’’; and 

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

13 4121(a)(3)), by inserting before the semicolon at the 

14 end the following: ‘‘, is subject to the reporting re15 quirements of the Securities Exchange Act of 1934, 

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

17 U.S.C. 78m(a), 78o(d)), or is authorized by the Ad18 ministrator to assume reinsurance on risks insured 

19 by the flood insurance program’’. 

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

21 (1) ASSESSMENT.—Not later than September 

22 30 of each year, the Administrator of the Federal 

23 Emergency Management Agency shall conduct an 

24 assessment of the claims-paying ability of the na25 tional flood insurance program, including the promstockstill on DSK4VPTVN1PROD with BILLS

73 

HR 5652 PCS 

1 gram’s utilization of private sector reinsurance and 

2 reinsurance equivalents, with and without reliance 

3 on borrowing authority under section 1309 of the 

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

5 4016). In conducting the assessment, the Adminis6 trator shall take into consideration regional con7 centrations of coverage written by the program, peak 

8 flood zones, and relevant mitigation measures. 

9 (2) REPORT.—The Administrator shall submit 

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

11 assessment, and make such report available to the 

12 public, not later than 30 days after completion of 

13 the assessment. 

14 SEC. 350. FEMA ANNUAL REPORT ON INSURANCE PRO15 GRAM. 

16 Section 1320 of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4027) is amended— 

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

19 TO THE PRESIDENT’’ and inserting ‘‘ANNUAL RE20 PORT TO CONGRESS’’; 

21 (2) in subsection (a)— 

22 (A) by striking ‘‘biennially’’; 

23 (B) by striking ‘‘the President for submis24 sion to’’; and 

mstockstill on DSK4VPTVN1PROD with BILLS

74 

HR 5652 PCS 

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

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

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

4 inserting ‘‘annual’’; and 

5 (4) by adding at the end the following new sub6 section: 

7 ‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 

8 under this section for each year shall include information 

9 regarding the financial status of the national flood insur10 ance program under this title, including a description of 

11 the financial status of the National Flood Insurance Fund 

12 and current and projected levels of claims, premium re13 ceipts, expenses, and borrowing under the program.’’. 

14 SEC. 351. MITIGATION ASSISTANCE. 

15 (a) MITIGATION ASSISTANCE GRANTS.—Section 

16 1366 of the National Flood Insurance Act of 1968 (42 

17 U.S.C. 4104c) is amended— 

18 (1) in subsection (a), by striking the last sen19 tence and inserting the following: ‘‘Such financial 

20 assistance shall be made available— 

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

22 grants under this section for carrying out mitigation 

23 activities; 

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

25 grants under this section for carrying out mitigation 

mstockstill on DSK4VPTVN1PROD with BILLS

75 

HR 5652 PCS 

1 activities that reduce flood damage to severe repet2 itive loss structures; and 

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

4 grants under this section for carrying out mitigation 

5 activities that reduce flood damage to individual 

6 structures for which 2 or more claim payments for 

7 losses have been made under flood insurance cov8 erage under this title if the Administrator, after con9 sultation with the State and community, determines 

10 that neither the State nor community in which such 

11 a structure is located has the capacity to manage 

12 such grants.’’. 

13 (2) by striking subsection (b); 

14 (3) in subsection (c)— 

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

16 ‘‘multi-hazard’’; 

17 (B) by striking ‘‘provides protection 

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

19 and 

20 (C) by redesignating such subsection as 

21 subsection (b); 

22 (4) by striking subsection (d); 

23 (5) in subsection (e)— 

24 (A) in paragraph (1), by striking the para25 graph designation and all that follows through 

mstockstill on DSK4VPTVN1PROD with BILLS

76 

HR 5652 PCS 

1 the end of the first sentence and inserting the 

2 following: 

3 ‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP4 PROVED MITIGATION PLAN.—Amounts provided 

5 under this section may be used only for mitigation 

6 activities that are consistent with mitigation plans 

7 that are approved by the Administrator and identi8 fied under subparagraph (4).’’; 

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

10 (4) and inserting the following new paragraphs: 

11 ‘‘(2) REQUIREMENTS OF TECHNICAL FEASI12 BILITY, COST EFFECTIVENESS, AND INTEREST OF

13 NFIF.—The Administrator may approve only mitiga14 tion activities that the Administrator determines are 

15 technically feasible and cost-effective and in the in16 terest of, and represent savings to, the National 

17 Flood Insurance Fund. In making such determina18 tions, the Administrator shall take into consideration 

19 recognized benefits that are difficult to quantify. 

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

21 In providing grants under this section for mitigation 

22 activities, the Administrator shall give priority for 

23 funding to activities that the Administrator deter24 mines will result in the greatest savings to the Namstockstill on DSK4VPTVN1PROD with BILLS

77 

HR 5652 PCS 

1 tional Flood Insurance Fund, including activities 

2 for— 

3 ‘‘(A) severe repetitive loss structures; 

4 ‘‘(B) repetitive loss structures; and 

5 ‘‘(C) other subsets of structures as the Ad6 ministrator may establish.’’; 

7 (C) in paragraph (5)— 

8 (i) by striking all of the matter that 

9 precedes subparagraph (A) and inserting 

10 the following: 

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

12 may include—’’; 

13 (ii) by striking subparagraphs (E) and 

14 (H); 

15 (iii) by redesignating subparagraphs 

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

17 (G), and (H); 

18 (iv) by inserting after subparagraph 

19 (C) the following new subparagraph: 

20 ‘‘(D) elevation, relocation, and 

21 floodproofing of utilities (including equipment 

22 that serve structures);’’; 

23 (v) by inserting after subparagraph 

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

mstockstill on DSK4VPTVN1PROD with BILLS

78 

HR 5652 PCS 

1 this subparagraph, the following new sub2 paragraph: 

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

4 local, or Indian tribal mitigation plans which 

5 meet the planning criteria established by the 

6 Administrator, except that the amount from 

7 grants under this section that may be used 

8 under this subparagraph may not exceed 

9 $50,000 for any mitigation plan of a State or 

10 $25,000 for any mitigation plan of a local gov11 ernment or Indian tribe;’’; 

12 (vi) in subparagraph (H); as so redes13 ignated by clause (iii) of this subpara14 graph, by striking ‘‘and’’ at the end; and 

15 (vii) by adding at the end the fol16 lowing new subparagraphs: 

17 ‘‘(I) other mitigation activities not de18 scribed in subparagraphs (A) through (G) or 

19 the regulations issued under subparagraph (H), 

20 that are described in the mitigation plan of a 

21 State, community, or Indian tribe; and 

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

23 provide technical assistance to communities to 

24 identify eligible activities, to develop grant ap25 plications, and to implement grants awarded 

mstockstill on DSK4VPTVN1PROD with BILLS

79 

HR 5652 PCS 

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

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

3 State applied for and was awarded at least 

4 $1,000,000 in grants available under this sec5 tion in the prior Federal fiscal year; the re6 quirements of subsections (d)(1) and (d)(2) 

7 shall not apply to the activity under this sub8 paragraph.’’; 

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

10 paragraph: 

11 ‘‘(6) ELIGIBILITY OF DEMOLITION AND RE12 BUILDING OF PROPERTIES.—The Administrator 

13 shall consider as an eligible activity the demolition 

14 and rebuilding of properties to at least base flood 

15 elevation or greater, if required by the Administrator 

16 or if required by any State regulation or local ordi17 nance, and in accordance with criteria established by 

18 the Administrator.’’; and 

19 (E) by redesignating such subsection as 

20 subsection (c); 

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

22 inserting the following new subsection: 

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

24 may provide grants for eligible mitigation activities as fol25 lows: 

mstockstill on DSK4VPTVN1PROD with BILLS

80 

HR 5652 PCS 

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

2 In the case of mitigation activities to severe repet3 itive loss structures, in an amount up to 100 percent 

4 of all eligible costs. 

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

6 case of mitigation activities to repetitive loss struc7 tures, in an amount up to 90 percent of all eligible 

8 costs. 

9 ‘‘(3) OTHER MITIGATION ACTIVITIES.—In the 

10 case of all other mitigation activities, in an amount 

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

12 (7) in subsection (i)— 

13 (A) in paragraph (2)— 

14 (i) by striking ‘‘certified under sub15 section (g)’’ and inserting ‘‘required under 

16 subsection (d)’’; and 

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

18 and inserting ‘‘the amount’’; and 

19 (B) by redesignating such subsection as 

20 subsection (e); 

21 (8) in subsection (j)— 

22 (A) by striking ‘‘Riegle Community Devel23 opment and Regulatory Improvement Act of 

24 1994’’ and inserting ‘‘Flood Insurance Reform 

25 Act of 2012’’; 

mstockstill on DSK4VPTVN1PROD with BILLS

81 

HR 5652 PCS 

1 (B) by redesignating such subsection as 

2 subsection (f); and 

3 (9) by striking subsections (k) and (m) and in4 serting the following new subsections: 

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

6 YEARS.—For any application for a grant under this sec7 tion for which the Administrator fails to make a grant 

8 award within 5 years of the date of application, the grant 

9 application shall be considered to be denied and any fund10 ing amounts allocated for such grant applications shall re11 main in the National Flood Mitigation Fund under section 

12 1367 of this title and shall be made available for grants 

13 under this section. 

14 ‘‘(h) LIMITATION ON FUNDING FOR MITIGATION AC15 TIVITIES FOR SEVERE REPETITIVE LOSS STRUCTURES.— 

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

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

18 available until expended. 

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

20 following definitions shall apply: 

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

22 means— 

23 ‘‘(A) a political subdivision that— 

mstockstill on DSK4VPTVN1PROD with BILLS

82 

HR 5652 PCS 

1 ‘‘(i) has zoning and building code ju2 risdiction over a particular area having 

3 special flood hazards, and 

4 ‘‘(ii) is participating in the national 

5 flood insurance program; or 

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

7 other authority, that is designated by political 

8 subdivisions, all of which meet the requirements 

9 of subparagraph (A), to administer grants for 

10 mitigation activities for such political subdivi11 sions. 

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

13 ‘repetitive loss structure’ has the meaning given 

14 such term in section 1370. 

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

16 The term ‘severe repetitive loss structure’ means a 

17 structure that— 

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

19 insurance made available under this title; and 

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

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

22 claims payments have been made under 

23 flood insurance coverage under this title, 

24 with the amount of each such claim ex25 ceeding $15,000, and with the cumulative 

mstockstill on DSK4VPTVN1PROD with BILLS

83 

HR 5652 PCS 

1 amount of such claims payments exceeding 

2 $60,000; or 

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

4 claims payments have been made under 

5 such coverage, with the cumulative amount 

6 of such claims exceeding the value of the 

7 insured structure.’’. 

8 (b) ELIMINATION OF GRANTS PROGRAM FOR REPET9 ITIVE INSURANCE CLAIMS PROPERTIES.—Chapter I of 

10 the National Flood Insurance Act of 1968 is amended by 

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

12 (c) ELIMINATION OF PILOT PROGRAM FOR MITIGA13 TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Chap14 ter III of the National Flood Insurance Act of 1968 is 

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

16 (d) NATIONAL FLOOD INSURANCE FUND.—Section 

17 1310(a) of the National Flood Insurance Act of 1968 (42 

18 U.S.C. 4017(a)) is amended— 

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

20 the semicolon; and 

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

22 (e) NATIONAL FLOOD MITIGATION FUND.—Section 

23 1367 of the National Flood Insurance Act of 1968 (42 

24 U.S.C. 4104d) is amended— 

25 (1) in subsection (b)— 

mstockstill on DSK4VPTVN1PROD with BILLS

84 

HR 5652 PCS 

1 (A) by striking paragraph (1) and insert2 ing the following new paragraph: 

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

4 Flood Insurance Fund in amounts not exceeding 

5 $90,000,000 to remain available until expended, of 

6 which— 

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

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

10 1366(a)(1); 

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

12 available pursuant to subsection (a) of this sec13 tion only for assistance described in section 

14 1366(a)(2); and 

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

16 available pursuant to subsection (a) of this sec17 tion only for assistance described in section 

18 1366(a)(3).’’. 

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

20 1366(i)’’ and inserting ‘‘section 1366(e)’’; 

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

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

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

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

mstockstill on DSK4VPTVN1PROD with BILLS

85 

HR 5652 PCS 

1 (4) by inserting after subsection (c) the fol2 lowing new subsections: 

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

4 Notwithstanding any other provision of this title, amounts 

5 made available pursuant to this section shall not be sub6 ject to offsetting collections through premium rates for 

7 flood insurance coverage under this title. 

8 ‘‘(e) CONTINUED AVAILABILITY AND REALLOCA9 TION.—Any amounts made available pursuant to subpara10 graph (A), (B), or (C) of subsection (b)(1) that are not 

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

12 the purposes specified in such subparagraph of subsection 

13 (b)(1) pursuant to which such amounts were made avail14 able, unless the Administrator determines that realloca15 tion of such unused amounts to meet demonstrated need 

16 for other mitigation activities under section 1366 is in the 

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

18 (f) INCREASED COST OF COMPLIANCE COVERAGE.— 

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

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

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

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

23 and (E) as subparagraphs (B), (C), and (D), respec24 tively. 

mstockstill on DSK4VPTVN1PROD with BILLS

86 

HR 5652 PCS 

1 SEC. 352. NOTIFICATION TO HOMEOWNERS REGARDING 

2 MANDATORY PURCHASE REQUIREMENT AP3 PLICABILITY AND RATE PHASE-INS. 

4 Section 201 of the Flood Disaster Protection Act of 

5 1973 (42 U.S.C. 4105) is amended by adding at the end 

6 the following new subsection: 

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

8 consultation with affected communities, shall establish and 

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

10 flood hazards, on an annual basis— 

11 ‘‘(1) that they reside in such an area; 

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

13 area; 

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

15 Flood Insurance Act of 1968 applies to properties 

16 within such area; 

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

18 purchase of flood insurance coverage for properties 

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

20 such provisions apply with respect to such area, tak21 ing into consideration section 102(i); and 

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

23 homeowners in similar areas typically pay for flood 

24 insurance coverage, taking into consideration section 

25 1308(g) of the National Flood Insurance Act of 

26 1968.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

87 

HR 5652 PCS 

1 SEC. 353. NOTIFICATION TO MEMBERS OF CONGRESS OF 

2 FLOOD MAP REVISIONS AND UPDATES. 

3 Section 1360 of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4101), as amended by the preceding pro5 visions of this subtitle, is further amended by adding at 

6 the end the following new subsection: 

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

8 MAP MODERNIZATION.—Upon any revision or update of 

9 any floodplain area or flood-risk zone pursuant to sub10 section (f), any decision pursuant to subsection (f)(1) that 

11 such revision or update is necessary, any issuance of pre12 liminary maps for such revision or updating, or any other 

13 significant action relating to any such revision or update, 

14 the Administrator shall notify the Senators for each State 

15 affected, and each Member of the House of Representa16 tives for each congressional district affected, by such revi17 sion or update in writing of the action taken.’’. 

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

19 NOTIFICATION TO COMMUNITIES OF ESTAB20 LISHMENT OF FLOOD ELEVATIONS. 

21 Section 1363 of the National Flood Insurance Act of 

22 1968 (42 U.S.C. 4104) is amended by striking the section 

23 designation and all that follows through the end of sub24 section (a) and inserting the following: 

25 ‘‘SEC. 1363. (a) In establishing projected flood ele26 vations for land use purposes with respect to any commumstockstill on DSK4VPTVN1PROD with BILLS

88 

HR 5652 PCS 

1 nity pursuant to section 1361, the Administrator shall 

2 first propose such determinations— 

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

4 each community affected by the proposed elevations, 

5 by certified mail, with a return receipt requested, 

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

7 for the elevations for such community and a state8 ment explaining the process under this section to ap9 peal for changes in such elevations; 

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

11 published in the Federal Register, which notice shall 

12 include information sufficient to identify the ele13 vation determinations and the communities affected, 

14 information explaining how to obtain copies of the 

15 elevations, and a statement explaining the process 

16 under this section to appeal for changes in the ele17 vations; 

18 ‘‘(3) by publishing in a prominent local news19 paper the elevations, a description of the appeals 

20 process for flood determinations, and the mailing ad21 dress and telephone number of a person the owner 

22 may contact for more information or to initiate an 

23 appeal; 

mstockstill on DSK4VPTVN1PROD with BILLS

89 

HR 5652 PCS 

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

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

3 the proposed elevations of— 

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

5 prior to and after the effective date of the pro6 posed determination, with respect to flood zone 

7 and flood insurance requirements under this 

8 Act and the Flood Disaster Protection Act of 

9 1973; 

10 ‘‘(B) the process under this section to ap11 peal a flood elevation determination; and 

12 ‘‘(C) the mailing address and phone num13 ber of a person the owner may contact for more 

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

15 SEC. 355. NOTIFICATION TO TENANTS OF AVAILABILITY OF 

16 CONTENTS INSURANCE. 

17 The National Flood Insurance Act of 1968 is amend18 ed by inserting after section 1308 (42 U.S.C. 4015) the 

19 following new section: 

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

21 OF CONTENTS INSURANCE. 

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

23 entering into a contract for flood insurance coverage under 

24 this title for any property— 

mstockstill on DSK4VPTVN1PROD with BILLS

90 

HR 5652 PCS 

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

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

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

4 the notice, or otherwise provide notification of the 

5 information under subsection (b) in the manner that 

6 the manager or landlord deems most appropriate, to 

7 each such tenant and to each new tenant upon com8 mencement of such a tenancy. 

9 ‘‘(b) NOTICE.—Notice to a tenant of a property in 

10 accordance with this subsection is written notice that 

11 clearly informs a tenant— 

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

13 having special flood hazards; 

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

15 under the national flood insurance program under 

16 this title for contents of the unit or structure leased 

17 by the tenant; 

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

19 for contents available under this title at that time; 

20 and 

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

22 how to obtain such coverage, including a telephone 

23 number, mailing address, and Internet site of the 

24 Administrator where such information is available.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

91 

HR 5652 PCS 

1 SEC. 356. NOTIFICATION TO POLICY HOLDERS REGARDING 

2 DIRECT MANAGEMENT OF POLICY BY FEMA. 

3 Part C of chapter II of the National Flood Insurance 

4 Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add5 ing at the end the following new section: 

6 ‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD7 ING DIRECT MANAGEMENT OF POLICY BY 

8 FEMA. 

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

10 the date on which a transferred flood insurance policy ex11 pires, and annually thereafter until such time as the Fed12 eral Emergency Management Agency is no longer directly 

13 administering such policy, the Administrator shall notify 

14 the holder of such policy that— 

15 ‘‘(1) the Federal Emergency Management 

16 Agency is directly administering the policy; 

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

18 that is directly administered by an insurance com19 pany; and 

20 ‘‘(3) purchasing flood insurance offered under 

21 the National Flood Insurance Program that is di22 rectly administered by an insurance company will 

23 not alter the coverage provided or the premiums 

24 charged to such holder that otherwise would be pro25 vided or charged if the policy was directly adminismstockstill on DSK4VPTVN1PROD with BILLS

92 

HR 5652 PCS 

1 tered by the Federal Emergency Management Agen2 cy. 

3 ‘‘(b) DEFINITION.—In this section, the term ‘trans4 ferred flood insurance policy’ means a flood insurance pol5 icy that— 

6 ‘‘(1) was directly administered by an insurance 

7 company at the time the policy was originally pur8 chased by the policy holder; and 

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

10 administration of the policy was or will be trans11 ferred to the Federal Emergency Management Agen12 cy.’’. 

13 SEC. 357. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 

14 AND ESCROW IN RESPA GOOD FAITH ESTI15 MATE. 

16 Subsection (c) of section 5 of the Real Estate Settle17 ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 

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

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

20 conspicuous statements and information: (1) that flood in21 surance coverage for residential real estate is generally 

22 available under the national flood insurance program 

23 whether or not the real estate is located in an area having 

24 special flood hazards and that, to obtain such coverage, 

25 a home owner or purchaser should contact the national 

mstockstill on DSK4VPTVN1PROD with BILLS

93 

HR 5652 PCS 

1 flood insurance program; (2) a telephone number and a 

2 location on the Internet by which a home owner or pur3 chaser can contact the national flood insurance program; 

4 and (3) that the escrowing of flood insurance payments 

5 is required for many loans under section 102(d) of the 

6 Flood Disaster Protection Act of 1973, and may be a con7 venient and available option with respect to other loans.’’. 

8 SEC. 358. REIMBURSEMENT FOR COSTS INCURRED BY 

9 HOMEOWNERS AND COMMUNITIES OBTAIN10 ING LETTERS OF MAP AMENDMENT OR REVI11 SION. 

12 (a) IN GENERAL.—Section 1360 of the National 

13 Flood Insurance Act of 1968 (42 U.S.C. 4101), as amend14 ed by the preceding provisions of this subtitle, is further 

15 amended by adding at the end the following new sub16 section: 

17 ‘‘(m) REIMBURSEMENT.— 

18 ‘‘(1) REQUIREMENT UPON BONA FIDE

19 ERROR.—If an owner of any property located in an 

20 area described in section 102(i)(3) of the Flood Dis21 aster Protection Act of 1973, or a community in 

22 which such a property is located, obtains a letter of 

23 map amendment, or a letter of map revision, due to 

24 a bona fide error on the part of the Administrator 

25 of the Federal Emergency Management Agency, the 

mstockstill on DSK4VPTVN1PROD with BILLS

94 

HR 5652 PCS 

1 Administrator shall reimburse such owner, or such 

2 entity or jurisdiction acting on such owner’s behalf, 

3 or such community, as applicable, for any reasonable 

4 costs incurred in obtaining such letter. 

5 ‘‘(2) REASONABLE COSTS.—The Administrator 

6 shall, by regulation or notice, determine a reasonable 

7 amount of costs to be reimbursed under paragraph 

8 (1), except that such costs shall not include legal or 

9 attorneys fees. In determining the reasonableness of 

10 costs, the Administrator shall only consider the ac11 tual costs to the owner or community, as applicable, 

12 of utilizing the services of an engineer, surveyor, or 

13 similar services.’’. 

14 (b) REGULATIONS.—Not later than 90 days after the 

15 date of the enactment of this Act, the Administrator of 

16 the Federal Emergency Management Agency shall issue 

17 the regulations or notice required under section 

18 1360(m)(2) of the National Flood Insurance Act of 1968, 

19 as added by the amendment made by subsection (a) of 

20 this section. 

21 SEC. 359. ENHANCED COMMUNICATION WITH CERTAIN 

22 COMMUNITIES DURING MAP UPDATING 

23 PROCESS. 

24 Section 1360 of the National Flood Insurance Act of 

25 1968 (42 U.S.C. 4101), as amended by the preceding promstockstill on DSK4VPTVN1PROD with BILLS

95 

HR 5652 PCS 

1 visions of this subtitle, is further amended by adding at 

2 the end the following new subsection: 

3 ‘‘(n) ENHANCED COMMUNICATION WITH CERTAIN

4 COMMUNITIES DURING MAP UPDATING PROCESS.—In 

5 updating flood insurance maps under this section, the Ad6 ministrator shall communicate with communities located 

7 in areas where flood insurance rate maps have not been 

8 updated in 20 years or more and the appropriate State 

9 emergency agencies to resolve outstanding issues, provide 

10 technical assistance, and disseminate all necessary infor11 mation to reduce the prevalence of outdated maps in flood12 prone areas.’’. 

13 SEC. 360. NOTIFICATION TO RESIDENTS NEWLY INCLUDED 

14 IN FLOOD HAZARD AREAS. 

15 Section 1360 of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4101), as amended by the preceding pro17 visions of this subtitle, is further amended by adding at 

18 the end the following new subsection: 

19 ‘‘(o) NOTIFICATION TO RESIDENTS NEWLY IN20 CLUDED IN FLOOD HAZARD AREA.—In revising or updat21 ing any areas having special flood hazards, the Adminis22 trator shall provide to each owner of a property to be 

23 newly included in such a special flood hazard area, at the 

24 time of issuance of such proposed revised or updated flood 

25 insurance maps, a copy of the proposed revised or updated 

mstockstill on DSK4VPTVN1PROD with BILLS

96 

HR 5652 PCS 

1 flood insurance maps together with information regarding 

2 the appeals process under section 1363 (42 U.S.C. 

3 4104).’’. 

4 SEC. 361. TREATMENT OF SWIMMING POOL ENCLOSURES 

5 OUTSIDE OF HURRICANE SEASON. 

6 Chapter I of the National Flood Insurance Act of 

7 1968 (42 U.S.C. 4001 et seq.) is amended by adding at 

8 the end the following new section: 

9 ‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 

10 OUTSIDE OF HURRICANE SEASON. 

11 ‘‘In the case of any property that is otherwise in com12 pliance with the coverage and building requirements of the 

13 national flood insurance program, the presence of an en14 closed swimming pool located at ground level or in the 

15 space below the lowest floor of a building after November 

16 30 and before June 1 of any year shall have no effect on 

17 the terms of coverage or the ability to receive coverage 

18 for such building under the national flood insurance pro19 gram established pursuant to this title, if the pool is en20 closed with non-supporting breakaway walls.’’. 

21 SEC. 362. INFORMATION REGARDING MULTIPLE PERILS 

22 CLAIMS. 

23 Section 1345 of the National Flood Insurance Act of 

24 1968 (42 U.S.C. 4081) is amended by adding at the end 

25 the following new subsection: 

mstockstill on DSK4VPTVN1PROD with BILLS

97 

HR 5652 PCS 

1 ‘‘(d) INFORMATION REGARDING MULTIPLE PERILS

2 CLAIMS.— 

3 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

4 if an insured having flood insurance coverage under 

5 a policy issued under the program under this title by 

6 the Administrator or a company, insurer, or entity 

7 offering flood insurance coverage under such pro8 gram (in this subsection referred to as a ‘partici9 pating company’) has wind or other homeowners 

10 coverage from any company, insurer, or other entity 

11 covering property covered by such flood insurance, in 

12 the case of damage to such property that may have 

13 been caused by flood or by wind, the Administrator 

14 and the participating company, upon the request of 

15 the insured, shall provide to the insured, within 30 

16 days of such request— 

17 ‘‘(A) a copy of the estimate of structure 

18 damage; 

19 ‘‘(B) proofs of loss; 

20 ‘‘(C) any expert or engineering reports or 

21 documents commissioned by or relied upon by 

22 the Administrator or participating company in 

23 determining whether the damage was caused by 

24 flood or any other peril; and 

mstockstill on DSK4VPTVN1PROD with BILLS

98 

HR 5652 PCS 

1 ‘‘(D) the Administrator’s or the partici2 pating company’s final determination on the 

3 claim. 

4 ‘‘(2) TIMING.—Paragraph (1) shall apply only 

5 with respect to a request described in such para6 graph made by an insured after the Administrator 

7 or the participating company, or both, as applicable, 

8 have issued a final decision on the flood claim in9 volved and resolution of all appeals with respect to 

10 such claim.’’. 

11 SEC. 363. FEMA AUTHORITY TO REJECT TRANSFER OF 

12 POLICIES. 

13 Section 1345 of the National Flood Insurance Act of 

14 1968 (42 U.S.C. 4081) is amended by adding at the end 

15 the following new subsection: 

16 ‘‘(e) FEMA AUTHORITY TO REJECT TRANSFER OF

17 POLICIES.—Notwithstanding any other provision of this 

18 Act, the Administrator may, at the discretion of the Ad19 ministrator, refuse to accept the transfer of the adminis20 tration of policies for coverage under the flood insurance 

21 program under this title that are written and administered 

22 by any insurance company or other insurer, or any insur23 ance agent or broker.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

99 

HR 5652 PCS 

1 SEC. 364. APPEALS. 

2 (a) TELEVISION AND RADIO ANNOUNCEMENT.—Sec3 tion 1363 of the National Flood Insurance Act of 1968 

4 (42 U.S.C. 4104), as amended by the preceding provisions 

5 of this subtitle, is further amended— 

6 (1) in subsection (a), by adding at the end the 

7 following new paragraph: 

8 ‘‘(5) by notifying a local television and radio 

9 station,’’; and 

10 (2) in the first sentence of subsection (b), by in11 serting before the period at the end the following: 

12 ‘‘and shall notify a local television and radio station 

13 at least once during the same 10-day period’’. 

14 (b) EXTENSION OF APPEALS PERIOD.—Subsection 

15 (b) of section 1363 of the National Flood Insurance Act 

16 of 1968 (42 U.S.C. 4104(b)) is amended— 

17 (1) by striking ‘‘(b) The Director’’ and insert18 ing ‘‘(b)(1) The Administrator’’; and 

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

20 paragraph: 

21 ‘‘(2) The Administrator shall grant an extension of 

22 the 90-day period for appeals referred to in paragraph (1) 

23 for 90 additional days if an affected community certifies 

24 to the Administrator, after the expiration of at least 60 

25 days of such period, that the community— 

mstockstill on DSK4VPTVN1PROD with BILLS

100 

HR 5652 PCS 

1 ‘‘(A) believes there are property owners or les2 sees in the community who are unaware of such pe3 riod for appeals; and 

4 ‘‘(B) will utilize the extension under this para5 graph to notify property owners or lessees who are 

6 affected by the proposed flood elevation determina7 tions of the period for appeals and the opportunity 

8 to appeal the determinations proposed by the Ad9 ministrator.’’. 

10 (c) APPLICABILITY.—The amendments made by sub11 sections (a) and (b) shall apply with respect to any flood 

12 elevation determination for any area in a community that 

13 has not, as of the date of the enactment of this Act, been 

14 issued a Letter of Final Determination for such deter15 mination under the flood insurance map modernization 

16 process. 

17 SEC. 365. RESERVE FUND. 

18 (a) ESTABLISHMENT.—Chapter I of the National 

19 Flood Insurance Act of 1968 is amended by inserting after 

20 section 1310 (42 U.S.C. 4017) the following new section: 

21 ‘‘SEC. 1310A. RESERVE FUND. 

22 ‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car23 rying out the flood insurance program authorized by this 

24 title, the Administrator shall establish in the Treasury of 

25 the United States a National Flood Insurance Reserve 

mstockstill on DSK4VPTVN1PROD with BILLS

101 

HR 5652 PCS 

1 Fund (in this section referred to as the ‘Reserve Fund’) 

2 which shall— 

3 ‘‘(1) be an account separate from any other ac4 counts or funds available to the Administrator; and 

5 ‘‘(2) be available for meeting the expected fu6 ture obligations of the flood insurance program. 

7 ‘‘(b) RESERVE RATIO.—Subject to the phase-in re8 quirements under subsection (d), the Reserve Fund shall 

9 maintain a balance equal to— 

10 ‘‘(1) 1 percent of the sum of the total potential 

11 loss exposure of all outstanding flood insurance poli12 cies in force in the prior fiscal year; or 

13 ‘‘(2) such higher percentage as the Adminis14 trator determines to be appropriate, taking into con15 sideration any circumstance that may raise a signifi16 cant risk of substantial future losses to the Reserve 

17 Fund. 

18 ‘‘(c) MAINTENANCE OF RESERVE RATIO.— 

19 ‘‘(1) IN GENERAL.—The Administrator shall 

20 have the authority to establish, increase, or decrease 

21 the amount of aggregate annual insurance premiums 

22 to be collected for any fiscal year necessary— 

23 ‘‘(A) to maintain the reserve ratio required 

24 under subsection (b); and 

mstockstill on DSK4VPTVN1PROD with BILLS

102 

HR 5652 PCS 

1 ‘‘(B) to achieve such reserve ratio, if the 

2 actual balance of such reserve is below the 

3 amount required under subsection (b). 

4 ‘‘(2) CONSIDERATIONS.—In exercising the au5 thority under paragraph (1), the Administrator shall 

6 consider— 

7 ‘‘(A) the expected operating expenses of 

8 the Reserve Fund; 

9 ‘‘(B) the insurance loss expenditures under 

10 the flood insurance program; 

11 ‘‘(C) any investment income generated 

12 under the flood insurance program; and 

13 ‘‘(D) any other factor that the Adminis14 trator determines appropriate. 

15 ‘‘(3) LIMITATIONS.—In exercising the authority 

16 under paragraph (1), the Administrator shall be 

17 subject to all other provisions of this Act, including 

18 any provisions relating to chargeable premium rates 

19 and annual increases of such rates. 

20 ‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re21 quirements under this subsection are as follows: 

22 ‘‘(1) IN GENERAL.—Beginning in fiscal year 

23 2012 and not ending until the fiscal year in which 

24 the ratio required under subsection (b) is achieved, 

25 in each such fiscal year the Administrator shall 

mstockstill on DSK4VPTVN1PROD with BILLS

103 

HR 5652 PCS 

1 place in the Reserve Fund an amount equal to not 

2 less than 7.5 percent of the reserve ratio required 

3 under subsection (b). 

4 ‘‘(2) AMOUNT SATISFIED.—As soon as the ratio 

5 required under subsection (b) is achieved, and except 

6 as provided in paragraph (3), the Administrator 

7 shall not be required to set aside any amounts for 

8 the Reserve Fund. 

9 ‘‘(3) EXCEPTION.—If at any time after the 

10 ratio required under subsection (b) is achieved, the 

11 Reserve Fund falls below the required ratio under 

12 subsection (b), the Administrator shall place in the 

13 Reserve Fund for that fiscal year an amount equal 

14 to not less than 7.5 percent of the reserve ratio re15 quired under subsection (b). 

16 ‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 

17 fiscal year, if the Administrator determines that the re18 serve ratio required under subsection (b) cannot be 

19 achieved, the Administrator shall submit a report to the 

20 Congress that— 

21 ‘‘(1) describes and details the specific concerns 

22 of the Administrator regarding such consequences; 

23 ‘‘(2) demonstrates how such consequences 

24 would harm the long-term financial soundness of the 

25 flood insurance program; and 

mstockstill on DSK4VPTVN1PROD with BILLS

104 

HR 5652 PCS 

1 ‘‘(3) indicates the maximum attainable reserve 

2 ratio for that particular fiscal year. 

3 ‘‘(f) AVAILABILITY OF AMOUNTS.—The reserve ratio 

4 requirements under subsection (b) and the phase-in re5 quirements under subsection (d) shall be subject to the 

6 availability of amounts in the National Flood Insurance 

7 Fund for transfer under section 1310(a)(10), as provided 

8 in section 1310(f).’’. 

9 (b) FUNDING.—Subsection (a) of section 1310 of the 

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

11 4017(a)), as amended by the preceding provisions of this 

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

13 new paragraph: 

14 ‘‘(10) for transfers to the National Flood Insur15 ance Reserve Fund under section 1310A, in accord16 ance with such section.’’. 

17 SEC. 366. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT18 REACH ACTIVITIES AND COMMUNITY BUILD19 ING CODE ADMINISTRATION GRANTS. 

20 Section 105(a) of the Housing and Community De21 velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 

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

23 end; 

24 (2) in paragraph (25), by striking the period at 

25 the end and inserting a semicolon; and 

mstockstill on DSK4VPTVN1PROD with BILLS

105 

HR 5652 PCS 

1 (3) by adding at the end the following new 

2 paragraphs: 

3 ‘‘(26) supplementing existing State or local 

4 funding for administration of building code enforce5 ment by local building code enforcement depart6 ments, including for increasing staffing, providing 

7 staff training, increasing staff competence and pro8 fessional qualifications, and supporting individual 

9 certification or departmental accreditation, and for 

10 capital expenditures specifically dedicated to the ad11 ministration of the building code enforcement de12 partment, except that, to be eligible to use amounts 

13 as provided in this paragraph— 

14 ‘‘(A) a building code enforcement depart15 ment shall provide matching, non-Federal funds 

16 to be used in conjunction with amounts used 

17 under this paragraph in an amount— 

18 ‘‘(i) in the case of a building code en19 forcement department serving an area with 

20 a population of more than 50,000, equal to 

21 not less than 50 percent of the total 

22 amount of any funds made available under 

23 this title that are used under this para24 graph; 

mstockstill on DSK4VPTVN1PROD with BILLS

106 

HR 5652 PCS 

1 ‘‘(ii) in the case of a building code en2 forcement department serving an area with 

3 a population of between 20,001 and 

4 50,000, equal to not less than 25 percent 

5 of the total amount of any funds made 

6 available under this title that are used 

7 under this paragraph; and 

8 ‘‘(iii) in the case of a building code 

9 enforcement department serving an area 

10 with a population of less than 20,000, 

11 equal to not less than 12.5 percent of the 

12 total amount of any funds made available 

13 under this title that are used under this 

14 paragraph, 

15 except that the Secretary may waive the match16 ing fund requirements under this subparagraph, 

17 in whole or in part, based upon the level of eco18 nomic distress of the jurisdiction in which is lo19 cated the local building code enforcement de20 partment that is using amounts for purposes 

21 under this paragraph, and shall waive such 

22 matching fund requirements in whole for any 

23 recipient jurisdiction that has dedicated all 

24 building code permitting fees to the conduct of 

25 local building code enforcement; and 

mstockstill on DSK4VPTVN1PROD with BILLS

107 

HR 5652 PCS 

1 ‘‘(B) any building code enforcement de2 partment using funds made available under this 

3 title for purposes under this paragraph shall 

4 empanel a code administration and enforcement 

5 team consisting of at least 1 full-time building 

6 code enforcement officer, a city planner, and a 

7 health planner or similar officer; and 

8 ‘‘(27) provision of assistance to local govern9 mental agencies responsible for floodplain manage10 ment activities (including such agencies of Indians 

11 tribes, as such term is defined in section 4 of the 

12 Native American Housing Assistance and Self-De13 termination Act of 1996 (25 U.S.C. 4103)) in com14 munities that participate in the national flood insur15 ance program under the National Flood Insurance 

16 Act of 1968 (42 U.S.C. 4001 et seq.), only for car17 rying out outreach activities to encourage and facili18 tate the purchase of flood insurance protection 

19 under such Act by owners and renters of properties 

20 in such communities and to promote educational ac21 tivities that increase awareness of flood risk reduc22 tion; except that— 

23 ‘‘(A) amounts used as provided under this 

24 paragraph shall be used only for activities de25 signed to— 

mstockstill on DSK4VPTVN1PROD with BILLS

108 

HR 5652 PCS 

1 ‘‘(i) identify owners and renters of 

2 properties in communities that participate 

3 in the national flood insurance program, 

4 including owners of residential and com5 mercial properties; 

6 ‘‘(ii) notify such owners and renters 

7 when their properties become included in, 

8 or when they are excluded from, an area 

9 having special flood hazards and the effect 

10 of such inclusion or exclusion on the appli11 cability of the mandatory flood insurance 

12 purchase requirement under section 102 of 

13 the Flood Disaster Protection Act of 1973 

14 (42 U.S.C. 4012a) to such properties; 

15 ‘‘(iii) educate such owners and renters 

16 regarding the flood risk and reduction of 

17 this risk in their community, including the 

18 continued flood risks to areas that are no 

19 longer subject to the flood insurance man20 datory purchase requirement; 

21 ‘‘(iv) educate such owners and renters 

22 regarding the benefits and costs of main23 taining or acquiring flood insurance, in24 cluding, where applicable, lower-cost pre25 ferred risk policies under this title for such 

mstockstill on DSK4VPTVN1PROD with BILLS

109 

HR 5652 PCS 

1 properties and the contents of such prop2 erties; 

3 ‘‘(v) encourage such owners and rent4 ers to maintain or acquire such coverage; 

5 ‘‘(vi) notify such owners of where to 

6 obtain information regarding how to obtain 

7 such coverage, including a telephone num8 ber, mailing address, and Internet site of 

9 the Administrator of the Federal Emer10 gency Management Agency (in this para11 graph referred to as the ‘Administrator’) 

12 where such information is available; and 

13 ‘‘(vii) educate local real estate agents 

14 in communities participating in the na15 tional flood insurance program regarding 

16 the program and the availability of cov17 erage under the program for owners and 

18 renters of properties in such communities, 

19 and establish coordination and liaisons 

20 with such real estate agents to facilitate 

21 purchase of coverage under the National 

22 Flood Insurance Act of 1968 and increase 

23 awareness of flood risk reduction; 

24 ‘‘(B) in any fiscal year, a local govern25 mental agency may not use an amount under 

mstockstill on DSK4VPTVN1PROD with BILLS

110 

HR 5652 PCS 

1 this paragraph that exceeds 3 times the amount 

2 that the agency certifies, as the Secretary, in 

3 consultation with the Administrator, shall re4 quire, that the agency will contribute from non5 Federal funds to be used with such amounts 

6 used under this paragraph only for carrying out 

7 activities described in subparagraph (A); and 

8 for purposes of this subparagraph, the term 

9 ‘non-Federal funds’ includes State or local gov10 ernment agency amounts, in-kind contributions, 

11 any salary paid to staff to carry out the eligible 

12 activities of the local governmental agency in13 volved, the value of the time and services con14 tributed by volunteers to carry out such services 

15 (at a rate determined by the Secretary), and 

16 the value of any donated material or building 

17 and the value of any lease on a building; 

18 ‘‘(C) a local governmental agency that uses 

19 amounts as provided under this paragraph may 

20 coordinate or contract with other agencies and 

21 entities having particular capacities, specialties, 

22 or experience with respect to certain popu23 lations or constituencies, including elderly or 

24 disabled families or persons, to carry out activimstockstill on DSK4VPTVN1PROD with BILLS

111 

HR 5652 PCS 

1 ties described in subparagraph (A) with respect 

2 to such populations or constituencies; and 

3 ‘‘(D) each local government agency that 

4 uses amounts as provided under this paragraph 

5 shall submit a report to the Secretary and the 

6 Administrator, not later than 12 months after 

7 such amounts are first received, which shall in8 clude such information as the Secretary and the 

9 Administrator jointly consider appropriate to 

10 describe the activities conducted using such 

11 amounts and the effect of such activities on the 

12 retention or acquisition of flood insurance cov13 erage.’’. 

14 SEC. 367. TECHNICAL CORRECTIONS. 

15 (a) FLOOD DISASTER PROTECTION ACT OF 1973.— 

16 The Flood Disaster Protection Act of 1973 (42 U.S.C. 

17 4002 et seq.) is amended— 

18 (1) by striking ‘‘Director’’ each place such term 

19 appears, except in section 102(f)(3) (42 U.S.C. 

20 4012a(f)(3)), and inserting ‘‘Administrator’’; and 

21 (2) in section 201(b) (42 U.S.C. 4105(b)), by 

22 striking ‘‘Director’s’’ and inserting ‘‘Administra23 tor’s’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

112 

HR 5652 PCS 

1 (b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 

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

3 4001 et seq.) is amended— 

4 (1) by striking ‘‘Director’’ each place such term 

5 appears and inserting ‘‘Administrator’’; and 

6 (2) in section 1363 (42 U.S.C. 4104), by strik7 ing ‘‘Director’s’’ each place such term appears and 

8 inserting ‘‘Administrator’s’’. 

9 (c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 

10 Section 15(e) of the Federal Flood Insurance Act of 1956 

11 (42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 

12 each place such term appears and inserting ‘‘Adminis13 trator’’. 

14 SEC. 368. REQUIRING COMPETITION FOR NATIONAL FLOOD 

15 INSURANCE PROGRAM POLICIES. 

16 (a) REPORT.—Not later than the expiration of the 

17 90-day period beginning upon the date of the enactment 

18 of this Act, the Administrator of the Federal Emergency 

19 Management Agency, in consultation with insurance com20 panies, insurance agents and other organizations with 

21 which the Administrator has contracted, shall submit to 

22 the Congress a report describing procedures and policies 

23 that the Administrator shall implement to limit the per24 centage of policies for flood insurance coverage under the 

25 national flood insurance program that are directly manmstockstill on DSK4VPTVN1PROD with BILLS

113 

HR 5652 PCS 

1 aged by the Agency to not more than 10 percent of the 

2 aggregate number of flood insurance policies in force 

3 under such program. 

4 (b) IMPLEMENTATION.—Upon submission of the re5 port under subsection (a) to the Congress, the Adminis6 trator shall implement the policies and procedures de7 scribed in the report. The Administrator shall, not later 

8 than the expiration of the 12-month period beginning 

9 upon submission of such report, reduce the number of 

10 policies for flood insurance coverage that are directly man11 aged by the Agency, or by the Agency’s direct servicing 

12 contractor that is not an insurer, to not more than 10 

13 percent of the aggregate number of flood insurance poli14 cies in force as of the expiration of such 12-month period. 

15 (c) CONTINUATION OF CURRENT AGENT RELATION16 SHIPS.—In carrying out subsection (b), the Administrator 

17 shall ensure that— 

18 (1) agents selling or servicing policies described 

19 in such subsection are not prevented from con20 tinuing to sell or service such policies; and 

21 (2) insurance companies are not prevented from 

22 waiving any limitation such companies could other23 wise enforce to limit any such activity. 

mstockstill on DSK4VPTVN1PROD with BILLS

114 

HR 5652 PCS 

1 SEC. 369. STUDIES OF VOLUNTARY COMMUNITY-BASED 

2 FLOOD INSURANCE OPTIONS. 

3 (a) STUDIES.—The Administrator of the Federal 

4 Emergency Management Agency and the Comptroller 

5 General of the United States shall each conduct a separate 

6 study to assess options, methods, and strategies for offer7 ing voluntary community-based flood insurance policy op8 tions and incorporating such options into the national 

9 flood insurance program. Such studies shall take into con10 sideration and analyze how the policy options would affect 

11 communities having varying economic bases, geographic 

12 locations, flood hazard characteristics or classifications, 

13 and flood management approaches. 

14 (b) REPORTS.—Not later than the expiration of the 

15 18-month period beginning on the date of the enactment 

16 of this Act, the Administrator of the Federal Emergency 

17 Management Agency and the Comptroller General of the 

18 United States shall each submit a report to the Committee 

19 on Financial Services of the House of Representatives and 

20 the Committee on Banking, Housing, and Urban Affairs 

21 of the Senate on the results and conclusions of the study 

22 such agency conducted under subsection (a), and each 

23 such report shall include recommendations for the best 

24 manner to incorporate voluntary community-based flood 

25 insurance options into the national flood insurance pro26 gram and for a strategy to implement such options that 

mstockstill on DSK4VPTVN1PROD with BILLS

115 

HR 5652 PCS 

1 would encourage communities to undertake flood mitiga2 tion activities. 

3 SEC. 370. REPORT ON INCLUSION OF BUILDING CODES IN 

4 FLOODPLAIN MANAGEMENT CRITERIA. 

5 Not later than the expiration of the 6-month period 

6 beginning on the date of the enactment of this Act, the 

7 Administrator of the Federal Emergency Management 

8 Agency shall conduct a study and submit a report to the 

9 Committee on Financial Services of the House of Rep10 resentatives and the Committee on Banking, Housing, and 

11 Urban Affairs of the Senate regarding the impact, effec12 tiveness, and feasibility of amending section 1361 of the 

13 National Flood Insurance Act of 1968 (42 U.S.C. 4102) 

14 to include widely used and nationally recognized building 

15 codes as part of the floodplain management criteria devel16 oped under such section, and shall determine— 

17 (1) the regulatory, financial, and economic im18 pacts of such a building code requirement on home19 owners, States and local communities, local land use 

20 policies, and the Federal Emergency Management 

21 Agency; 

22 (2) the resources required of State and local 

23 communities to administer and enforce such a build24 ing code requirement; 

mstockstill on DSK4VPTVN1PROD with BILLS

116 

HR 5652 PCS 

1 (3) the effectiveness of such a building code re2 quirement in reducing flood-related damage to build3 ings and contents; 

4 (4) the impact of such a building code require5 ment on the actuarial soundness of the National 

6 Flood Insurance Program; 

7 (5) the effectiveness of nationally recognized 

8 codes in allowing innovative materials and systems 

9 for flood-resistant construction; 

10 (6) the feasibility and effectiveness of providing 

11 an incentive in lower premium rates for flood insur12 ance coverage under such Act for structures meeting 

13 whichever of such widely used and nationally recog14 nized building code or any applicable local building 

15 code provides greater protection from flood damage; 

16 (7) the impact of such a building code require17 ment on rural communities with different building 

18 code challenges than more urban environments; and 

19 (8) the impact of such a building code require20 ment on Indian reservations. 

21 SEC. 371. STUDY ON GRADUATED RISK. 

22 (a) STUDY.—The National Academy of Sciences shall 

23 conduct a study exploring methods for understanding 

24 graduated risk behind levees and the associated land demstockstill on DSK4VPTVN1PROD with BILLS

117 

HR 5652 PCS 

1 velopment, insurance, and risk communication dimensions, 

2 which shall— 

3 (1) research, review, and recommend current 

4 best practices for estimating direct annualized flood 

5 losses behind levees for residential and commercial 

6 structures; 

7 (2) rank such practices based on their best 

8 value, balancing cost, scientific integrity, and the in9 herent uncertainties associated with all aspects of 

10 the loss estimate, including geotechnical engineering, 

11 flood frequency estimates, economic value, and direct 

12 damages; 

13 (3) research, review, and identify current best 

14 floodplain management and land use practices be15 hind levees that effectively balance social, economic, 

16 and environmental considerations as part of an over17 all flood risk management strategy; 

18 (4) identify examples where such practices have 

19 proven effective and recommend methods and proc20 esses by which they could be applied more broadly 

21 across the United States, given the variety of dif22 ferent flood risks, State and local legal frameworks, 

23 and evolving judicial opinions; 

24 (5) research, review, and identify a variety of 

25 flood insurance pricing options for flood hazards bemstockstill on DSK4VPTVN1PROD with BILLS

118 

HR 5652 PCS 

1 hind levees which are actuarially sound and based on 

2 the flood risk data developed using the top three 

3 best value approaches identified pursuant to para4 graph (1); 

5 (6) evaluate and recommend methods to reduce 

6 insurance costs through creative arrangements be7 tween insureds and insurers while keeping a clear 

8 accounting of how much financial risk is being borne 

9 by various parties such that the entire risk is ac10 counted for, including establishment of explicit limits 

11 on disaster aid or other assistance in the event of a 

12 flood; and 

13 (7) taking into consideration the recommenda14 tions pursuant to paragraphs (1) through (3), rec15 ommend approaches to communicating the associ16 ated risks to community officials, homeowners, and 

17 other residents. 

18 (b) REPORT.—Not later than the expiration of the 

19 12-month period beginning on the date of the enactment 

20 of this Act, the National Academy of Sciences shall submit 

21 a report to the Committees on Financial Services and 

22 Science, Space, and Technology of the House of Rep23 resentatives and the Committees on Banking, Housing, 

24 and Urban Affairs and Commerce, Science and Transpor25 tation of the Senate on the study under subsection (a) inmstockstill on DSK4VPTVN1PROD with BILLS

119 

HR 5652 PCS 

1 cluding the information and recommendations required 

2 under such subsection. 

3 SEC. 372. REPORT ON FLOOD-IN-PROGRESS DETERMINA4 TION. 

5 The Administrator of the Federal Emergency Man6 agement Agency shall review the processes and procedures 

7 for determining that a flood event has commenced or is 

8 in progress for purposes of flood insurance coverage made 

9 available under the national flood insurance program 

10 under the National Flood Insurance Act of 1968 and for 

11 providing public notification that such an event has com12 menced or is in progress. In such review, the Adminis13 trator shall take into consideration the effects and implica14 tions that weather conditions, such as rainfall, snowfall, 

15 projected snowmelt, existing water levels, and other condi16 tions have on the determination that a flood event has 

17 commenced or is in progress. Not later than the expiration 

18 of the 6-month period beginning upon the date of the en19 actment of this Act, the Administrator shall submit a re20 port to the Congress setting forth the results and conclu21 sions of the review undertaken pursuant to this section 

22 and any actions undertaken or proposed actions to be 

23 taken to provide for a more precise and technical deter24 mination that a flooding event has commenced or is in 

25 progress. 

mstockstill on DSK4VPTVN1PROD with BILLS

120 

HR 5652 PCS 

1 SEC. 373. STUDY ON REPAYING FLOOD INSURANCE DEBT. 

2 Not later than the expiration of the 6-month period 

3 beginning on the date of the enactment of this Act, the 

4 Administrator of the Federal Emergency Management 

5 Agency shall submit a report to the Congress setting forth 

6 a plan for repaying within 10 years all amounts, including 

7 any amounts previously borrowed but not yet repaid, owed 

8 pursuant to clause (2) of subsection (a) of section 1309 

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

10 4016(a)(2)). 

11 SEC. 374. NO CAUSE OF ACTION. 

12 No cause of action shall exist and no claim may be 

13 brought against the United States for violation of any no14 tification requirement imposed upon the United States by 

15 this subtitle or any amendment made by this subtitle. 

16 SEC. 375. AUTHORITY FOR THE CORPS OF ENGINEERS TO 

17 PROVIDE SPECIALIZED OR TECHNICAL SERV18 ICES. 

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of law, upon the request of a State or local govern21 ment, the Secretary of the Army may evaluate a levee sys22 tem that was designed or constructed by the Secretary for 

23 the purposes of the National Flood Insurance Program es24 tablished under chapter 1 of the National Flood Insurance 

25 Act of 1968 (42 U.S.C. 4011 et seq.). 

mstockstill on DSK4VPTVN1PROD with BILLS

121 

HR 5652 PCS 

1 (b) REQUIREMENTS.—A levee system evaluation 

2 under subsection (a) shall— 

3 (1) comply with applicable regulations related 

4 to areas protected by a levee system; 

5 (2) be carried out in accordance with such pro6 cedures as the Secretary, in consultation with the 

7 Administrator of the Federal Emergency Manage8 ment Agency, may establish; and 

9 (3) be carried out only if the State or local gov10 ernment agrees to reimburse the Secretary for all 

11 cost associated with the performance of the activi12 ties. 

13 Subtitle E—Repeal of the Office of 

14 Financial Research 

15 SEC. 381. REPEAL OF THE OFFICE OF FINANCIAL RE16 SEARCH. 

17 (a) IN GENERAL.—Subtitle B of title I of the Dodd18 Frank Wall Street Reform and Consumer Protection Act 

19 is hereby repealed. 

20 (b) CONFORMING AMENDMENTS TO THE DODD21 FRANK ACT.—The Dodd-Frank Wall Street Reform and 

22 Consumer Protection Act is amended— 

23 (1) in section 102(a), by striking paragraph 

24 (5); 

25 (2) in section 111— 

mstockstill on DSK4VPTVN1PROD with BILLS

122 

HR 5652 PCS 

1 (A) in subsection (b)(2)— 

2 (i) by striking subparagraph (A); and 

3 (ii) by redesignating subparagraphs 

4 (B), (C), (D), and (E) as subparagraphs 

5 (A), (B), (C), and (D), respectively; 

6 (B) in subsection (c)(1), by striking ‘‘sub7 paragraphs (C), (D), and (E)’’ and inserting 

8 ‘‘subparagraphs (B), (C), and (D)’’; 

9 (3) in section 112— 

10 (A) in subsection (a)(2)— 

11 (i) in subparagraph (A), by striking 

12 ‘‘direct the Office of Financial Research 

13 to’’; 

14 (ii) by striking subparagraph (B); and 

15 (iii) by redesignating subparagraphs 

16 (C), (D), (E), (F), (G), (H), (I), (J), (K), 

17 (L), (M), and (N) as subparagraphs (B), 

18 (C), (D), (E), (F), (G), (H), (I), (J), (K), 

19 (L), and (M), respectively; and 

20 (B) in subsection (d)— 

21 (i) in paragraph (1), by striking ‘‘the 

22 Office of Financial Research, member 

23 agencies, and’’ and inserting ‘‘member 

24 agencies and’’; 

mstockstill on DSK4VPTVN1PROD with BILLS

123 

HR 5652 PCS 

1 (ii) in paragraph (2), by striking ‘‘the 

2 Office of Financial Research, any member 

3 agency, and’’ and inserting ‘‘any member 

4 agency and’’; 

5 (iii) in paragraph (3)— 

6 (I) by striking ‘‘, acting through 

7 the Office of Financial Research,’’ 

8 each place it appears; and 

9 (II) in subparagraph (B), by 

10 striking ‘‘the Office of Financial Re11 search or’’; and 

12 (iv) in paragraph (5)(A), by striking 

13 ‘‘, the Office of Financial Research,’’; 

14 (4) in section 116, by striking ‘‘, acting through 

15 the Office of Financial Research,’’ each place it ap16 pears; and 

17 (5) by striking section 118. 

18 (c) CONFORMING AMENDMENT TO THE PAPERWORK

19 REDUCTION ACT.—Effective as of the date specified in 

20 section 1100H of the Dodd-Frank Wall Street Reform and 

21 Consumer Protection Act, section 1100D(a) of such Act 

22 is amended to read as follows: 

23 ‘‘(a) DESIGNATION AS AN INDEPENDENT AGENCY.— 

24 Section 3502(5) of subchapter I of chapter 35 of title 44, 

25 United States Code (commonly known as the Paperwork 

mstockstill on DSK4VPTVN1PROD with BILLS

124 

HR 5652 PCS 

1 Reduction Act) is amended by inserting ‘the Bureau of 

2 Consumer Financial Protection,’ after ‘the Securities and 

3 Exchange Commission,’.’’. 

4 (d) TECHNICAL AMENDMENTS.—The table of con5 tents for the Dodd-Frank Wall Street Reform and Con6 sumer Protection Act is amended— 

7 (1) by striking the item relating to section 118; 

8 and 

9 (2) by striking the items relating to subtitle B 

10 of title I. 

11 TITLE IV—COMMITTEE ON THE 

12 JUDICIARY 

13 SEC. 401. SHORT TITLE. 

14 This title may be cited as the ‘‘Help Efficient, Acces15 sible, Low-cost, Timely Healthcare (HEALTH) Act of 

16 2011’’. 

17 SEC. 402. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS. 

18 The time for the commencement of a health care law19 suit shall be 3 years after the date of manifestation of 

20 injury or 1 year after the claimant discovers, or through 

21 the use of reasonable diligence should have discovered, the 

22 injury, whichever occurs first. In no event shall the time 

23 for commencement of a health care lawsuit exceed 3 years 

24 after the date of manifestation of injury unless tolled for 

25 any of the following— 

mstockstill on DSK4VPTVN1PROD with BILLS

125 

HR 5652 PCS 

1 (1) upon proof of fraud; 

2 (2) intentional concealment; or 

3 (3) the presence of a foreign body, which has no 

4 therapeutic or diagnostic purpose or effect, in the 

5 person of the injured person. 

6 Actions by a minor shall be commenced within 3 years 

7 from the date of the alleged manifestation of injury except 

8 that actions by a minor under the full age of 6 years shall 

9 be commenced within 3 years of manifestation of injury 

10 or prior to the minor’s 8th birthday, whichever provides 

11 a longer period. Such time limitation shall be tolled for 

12 minors for any period during which a parent or guardian 

13 and a health care provider or health care organization 

14 have committed fraud or collusion in the failure to bring 

15 an action on behalf of the injured minor. 

16 SEC. 403. COMPENSATING PATIENT INJURY. 

17 (a) UNLIMITED AMOUNT OF DAMAGES FOR ACTUAL

18 ECONOMIC LOSSES IN HEALTH CARE LAWSUITS.—In any 

19 health care lawsuit, nothing in this title shall limit a claim20 ant’s recovery of the full amount of the available economic 

21 damages, notwithstanding the limitation in subsection (b). 

22 (b) ADDITIONAL NONECONOMIC DAMAGES.—In any 

23 health care lawsuit, the amount of noneconomic damages, 

24 if available, may be as much as $250,000, regardless of 

25 the number of parties against whom the action is brought 

mstockstill on DSK4VPTVN1PROD with BILLS

126 

HR 5652 PCS 

1 or the number of separate claims or actions brought with 

2 respect to the same injury. 

3 (c) NO DISCOUNT OF AWARD FOR NONECONOMIC

4 DAMAGES.—For purposes of applying the limitation in 

5 subsection (b), future noneconomic damages shall not be 

6 discounted to present value. The jury shall not be in7 formed about the maximum award for noneconomic dam8 ages. An award for noneconomic damages in excess of 

9 $250,000 shall be reduced either before the entry of judg10 ment, or by amendment of the judgment after entry of 

11 judgment, and such reduction shall be made before ac12 counting for any other reduction in damages required by 

13 law. If separate awards are rendered for past and future 

14 noneconomic damages and the combined awards exceed 

15 $250,000, the future noneconomic damages shall be re16 duced first. 

17 (d) FAIR SHARE RULE.—In any health care lawsuit, 

18 each party shall be liable for that party’s several share 

19 of any damages only and not for the share of any other 

20 person. Each party shall be liable only for the amount of 

21 damages allocated to such party in direct proportion to 

22 such party’s percentage of responsibility. Whenever a 

23 judgment of liability is rendered as to any party, a sepa24 rate judgment shall be rendered against each such party 

25 for the amount allocated to such party. For purposes of 

mstockstill on DSK4VPTVN1PROD with BILLS

127 

HR 5652 PCS 

1 this section, the trier of fact shall determine the propor2 tion of responsibility of each party for the claimant’s 

3 harm. 

4 SEC. 404. MAXIMIZING PATIENT RECOVERY. 

5 (a) COURT SUPERVISION OF SHARE OF DAMAGES

6 ACTUALLY PAID TO CLAIMANTS.—In any health care law7 suit, the court shall supervise the arrangements for pay8 ment of damages to protect against conflicts of interest 

9 that may have the effect of reducing the amount of dam10 ages awarded that are actually paid to claimants. In par11 ticular, in any health care lawsuit in which the attorney 

12 for a party claims a financial stake in the outcome by vir13 tue of a contingent fee, the court shall have the power 

14 to restrict the payment of a claimant’s damage recovery 

15 to such attorney, and to redirect such damages to the 

16 claimant based upon the interests of justice and principles 

17 of equity. In no event shall the total of all contingent fees 

18 for representing all claimants in a health care lawsuit ex19 ceed the following limits: 

20 (1) Forty percent of the first $50,000 recovered 

21 by the claimant(s). 

22 (2) Thirty-three and one-third percent of the 

23 next $50,000 recovered by the claimant(s). 

24 (3) Twenty-five percent of the next $500,000 

25 recovered by the claimant(s). 

mstockstill on DSK4VPTVN1PROD with BILLS

128 

HR 5652 PCS 

1 (4) Fifteen percent of any amount by which the 

2 recovery by the claimant(s) is in excess of $600,000. 

3 (b) APPLICABILITY.—The limitations in this section 

4 shall apply whether the recovery is by judgment, settle5 ment, mediation, arbitration, or any other form of alter6 native dispute resolution. In a health care lawsuit involv7 ing a minor or incompetent person, a court retains the 

8 authority to authorize or approve a fee that is less than 

9 the maximum permitted under this section. The require10 ment for court supervision in the first two sentences of 

11 subsection (a) applies only in civil actions. 

12 SEC. 405. PUNITIVE DAMAGES. 

13 (a) IN GENERAL.—Punitive damages may, if other14 wise permitted by applicable State or Federal law, be 

15 awarded against any person in a health care lawsuit only 

16 if it is proven by clear and convincing evidence that such 

17 person acted with malicious intent to injure the claimant, 

18 or that such person deliberately failed to avoid unneces19 sary injury that such person knew the claimant was sub20 stantially certain to suffer. In any health care lawsuit 

21 where no judgment for compensatory damages is rendered 

22 against such person, no punitive damages may be awarded 

23 with respect to the claim in such lawsuit. No demand for 

24 punitive damages shall be included in a health care lawsuit 

25 as initially filed. A court may allow a claimant to file an 

mstockstill on DSK4VPTVN1PROD with BILLS

129 

HR 5652 PCS 

1 amended pleading for punitive damages only upon a mo2 tion by the claimant and after a finding by the court, upon 

3 review of supporting and opposing affidavits or after a 

4 hearing, after weighing the evidence, that the claimant has 

5 established by a substantial probability that the claimant 

6 will prevail on the claim for punitive damages. At the re7 quest of any party in a health care lawsuit, the trier of 

8 fact shall consider in a separate proceeding— 

9 (1) whether punitive damages are to be award10 ed and the amount of such award; and 

11 (2) the amount of punitive damages following a 

12 determination of punitive liability. 

13 If a separate proceeding is requested, evidence relevant 

14 only to the claim for punitive damages, as determined by 

15 applicable State law, shall be inadmissible in any pro16 ceeding to determine whether compensatory damages are 

17 to be awarded. 

18 (b) DETERMINING AMOUNT OF PUNITIVE DAM19 AGES.— 

20 (1) FACTORS CONSIDERED.—In determining 

21 the amount of punitive damages, if awarded, in a 

22 health care lawsuit, the trier of fact shall consider 

23 only the following— 

24 (A) the severity of the harm caused by the 

25 conduct of such party; 

mstockstill on DSK4VPTVN1PROD with BILLS

130 

HR 5652 PCS 

1 (B) the duration of the conduct or any 

2 concealment of it by such party; 

3 (C) the profitability of the conduct to such 

4 party; 

5 (D) the number of products sold or med6 ical procedures rendered for compensation, as 

7 the case may be, by such party, of the kind 

8 causing the harm complained of by the claim9 ant; 

10 (E) any criminal penalties imposed on such 

11 party, as a result of the conduct complained of 

12 by the claimant; and 

13 (F) the amount of any civil fines assessed 

14 against such party as a result of the conduct 

15 complained of by the claimant. 

16 (2) MAXIMUM AWARD.—The amount of punitive 

17 damages, if awarded, in a health care lawsuit may 

18 be as much as $250,000 or as much as two times 

19 the amount of economic damages awarded, which20 ever is greater. The jury shall not be informed of 

21 this limitation. 

22 (c) NO PUNITIVE DAMAGES FOR PRODUCTS THAT

23 COMPLY WITH FDA STANDARDS.— 

24 (1) IN GENERAL.— 

mstockstill on DSK4VPTVN1PROD with BILLS

131 

HR 5652 PCS 

1 (A) No punitive damages may be awarded 

2 against the manufacturer or distributor of a 

3 medical product, or a supplier of any compo4 nent or raw material of such medical product, 

5 based on a claim that such product caused the 

6 claimant’s harm where— 

7 (i)(I) such medical product was sub8 ject to premarket approval, clearance, or li9 censure by the Food and Drug Administra10 tion with respect to the safety of the for11 mulation or performance of the aspect of 

12 such medical product which caused the 

13 claimant’s harm or the adequacy of the 

14 packaging or labeling of such medical 

15 product; and 

16 (II) such medical product was so ap17 proved, cleared, or licensed; or 

18 (ii) such medical product is generally 

19 recognized among qualified experts as safe 

20 and effective pursuant to conditions estab21 lished by the Food and Drug Administra22 tion and applicable Food and Drug Admin23 istration regulations, including without 

24 limitation those related to packaging and 

25 labeling, unless the Food and Drug Adminmstockstill on DSK4VPTVN1PROD with BILLS

132 

HR 5652 PCS 

1 istration has determined that such medical 

2 product was not manufactured or distrib3 uted in substantial compliance with appli4 cable Food and Drug Administration stat5 utes and regulations. 

6 (B) RULE OF CONSTRUCTION.—Subpara7 graph (A) may not be construed as establishing 

8 the obligation of the Food and Drug Adminis9 tration to demonstrate affirmatively that a 

10 manufacturer, distributor, or supplier referred 

11 to in such subparagraph meets any of the con12 ditions described in such subparagraph. 

13 (2) LIABILITY OF HEALTH CARE PROVIDERS.— 

14 A health care provider who prescribes, or who dis15 penses pursuant to a prescription, a medical product 

16 approved, licensed, or cleared by the Food and Drug 

17 Administration shall not be named as a party to a 

18 product liability lawsuit involving such product and 

19 shall not be liable to a claimant in a class action 

20 lawsuit against the manufacturer, distributor, or 

21 seller of such product. Nothing in this paragraph 

22 prevents a court from consolidating cases involving 

23 health care providers and cases involving products li24 ability claims against the manufacturer, distributor, 

25 or product seller of such medical product. 

mstockstill on DSK4VPTVN1PROD with BILLS

133 

HR 5652 PCS 

1 (3) PACKAGING.—In a health care lawsuit for 

2 harm which is alleged to relate to the adequacy of 

3 the packaging or labeling of a drug which is required 

4 to have tamper-resistant packaging under regula5 tions of the Secretary of Health and Human Serv6 ices (including labeling regulations related to such 

7 packaging), the manufacturer or product seller of 

8 the drug shall not be held liable for punitive dam9 ages unless such packaging or labeling is found by 

10 the trier of fact by clear and convincing evidence to 

11 be substantially out of compliance with such regula12 tions. 

13 (4) EXCEPTION.—Paragraph (1) shall not 

14 apply in any health care lawsuit in which— 

15 (A) a person, before or after premarket ap16 proval, clearance, or licensure of such medical 

17 product, knowingly misrepresented to or with18 held from the Food and Drug Administration 

19 information that is required to be submitted 

20 under the Federal Food, Drug, and Cosmetic 

21 Act (21 U.S.C. 301 et seq.) or section 351 of 

22 the Public Health Service Act (42 U.S.C. 262) 

23 that is material and is causally related to the 

24 harm which the claimant allegedly suffered 

mstockstill on DSK4VPTVN1PROD with BILLS

134 

HR 5652 PCS 

1 (B) a person made an illegal payment to 

2 an official of the Food and Drug Administra3 tion for the purpose of either securing or main4 taining approval, clearance, or licensure of such 

5 medical product; or 

6 (C) the defendant caused the medical prod7 uct which caused the claimant’s harm to be 

8 misbranded or adulterated (as such terms are 

9 used in chapter V of the Federal Food, Drug, 

10 and Cosmetic Act (21 U.S.C. 351 et seq.)). 

11 SEC. 406. AUTHORIZATION OF PAYMENT OF FUTURE DAM12 AGES TO CLAIMANTS IN HEALTH CARE LAW13 SUITS. 

14 (a) IN GENERAL.—In any health care lawsuit, if an 

15 award of future damages, without reduction to present 

16 value, equaling or exceeding $50,000 is made against a 

17 party with sufficient insurance or other assets to fund a 

18 periodic payment of such a judgment, the court shall, at 

19 the request of any party, enter a judgment ordering that 

20 the future damages be paid by periodic payments, in ac21 cordance with the Uniform Periodic Payment of Judg22 ments Act promulgated by the National Conference of 

23 Commissioners on Uniform State Laws. 

mstockstill on DSK4VPTVN1PROD with BILLS

135 

HR 5652 PCS 

1 (b) APPLICABILITY.—This section applies to all ac2 tions which have not been first set for trial or retrial be3 fore the effective date of this title. 

4 SEC. 407. DEFINITIONS. 

5 In this title: 

6 (1) ALTERNATIVE DISPUTE RESOLUTION SYS7 TEM; ADR.—The term ‘‘alternative dispute resolution 

8 system’’ or ‘‘ADR’’ means a system that provides 

9 for the resolution of health care lawsuits in a man10 ner other than through a civil action brought in a 

11 State or Federal court. 

12 (2) CLAIMANT.—The term ‘‘claimant’’ means 

13 any person who brings a health care lawsuit, includ14 ing a person who asserts or claims a right to legal 

15 or equitable contribution, indemnity, or subrogation, 

16 arising out of a health care liability claim or action, 

17 and any person on whose behalf such a claim is as18 serted or such an action is brought, whether de19 ceased, incompetent, or a minor. 

20 (3) COMPENSATORY DAMAGES.—The term 

21 ‘‘compensatory damages’’ means objectively 

22 verifiable monetary losses incurred as a result of the 

23 provision of, use of, or payment for (or failure to 

24 provide, use, or pay for) health care services or med25 ical products, such as past and future medical exmstockstill on DSK4VPTVN1PROD with BILLS

136 

HR 5652 PCS 

1 penses, loss of past and future earnings, cost of ob2 taining domestic services, loss of employment, and 

3 loss of business or employment opportunities, dam4 ages for physical and emotional pain, suffering, in5 convenience, physical impairment, mental anguish, 

6 disfigurement, loss of enjoyment of life, loss of soci7 ety and companionship, loss of consortium (other 

8 than loss of domestic service), hedonic damages, in9 jury to reputation, and all other nonpecuniary losses 

10 of any kind or nature. The term ‘‘compensatory 

11 damages’’ includes economic damages and non12 economic damages, as such terms are defined in this 

13 section. 

14 (4) CONTINGENT FEE.—The term ‘‘contingent 

15 fee’’ includes all compensation to any person or per16 sons which is payable only if a recovery is effected 

17 on behalf of one or more claimants. 

18 (5) ECONOMIC DAMAGES.—The term ‘‘economic 

19 damages’’ means objectively verifiable monetary 

20 losses incurred as a result of the provision of, use 

21 of, or payment for (or failure to provide, use, or pay 

22 for) health care services or medical products, such as 

23 past and future medical expenses, loss of past and 

24 future earnings, cost of obtaining domestic services, 

mstockstill on DSK4VPTVN1PROD with BILLS

137 

HR 5652 PCS 

1 loss of employment, and loss of business or employ2 ment opportunities. 

3 (6) HEALTH CARE LAWSUIT.—The term 

4 ‘‘health care lawsuit’’ means any health care liability 

5 claim concerning the provision of health care goods 

6 or services or any medical product affecting inter7 state commerce, or any health care liability action 

8 concerning the provision of health care goods or 

9 services or any medical product affecting interstate 

10 commerce, brought in a State or Federal court or 

11 pursuant to an alternative dispute resolution system, 

12 against a health care provider, a health care organi13 zation, or the manufacturer, distributor, supplier, 

14 marketer, promoter, or seller of a medical product, 

15 regardless of the theory of liability on which the 

16 claim is based, or the number of claimants, plain17 tiffs, defendants, or other parties, or the number of 

18 claims or causes of action, in which the claimant al19 leges a health care liability claim. Such term does 

20 not include a claim or action which is based on 

21 criminal liability; which seeks civil fines or penalties 

22 paid to Federal, State, or local government; or which 

23 is grounded in antitrust. 

24 (7) HEALTH CARE LIABILITY ACTION.—The 

25 term ‘‘health care liability action’’ means a civil acmstockstill on DSK4VPTVN1PROD with BILLS

138 

HR 5652 PCS 

1 tion brought in a State or Federal court or pursuant 

2 to an alternative dispute resolution system, against 

3 a health care provider, a health care organization, or 

4 the manufacturer, distributor, supplier, marketer, 

5 promoter, or seller of a medical product, regardless 

6 of the theory of liability on which the claim is based, 

7 or the number of plaintiffs, defendants, or other par8 ties, or the number of causes of action, in which the 

9 claimant alleges a health care liability claim. 

10 (8) HEALTH CARE LIABILITY CLAIM.—The 

11 term ‘‘health care liability claim’’ means a demand 

12 by any person, whether or not pursuant to ADR, 

13 against a health care provider, health care organiza14 tion, or the manufacturer, distributor, supplier, mar15 keter, promoter, or seller of a medical product, in16 cluding, but not limited to, third-party claims, cross17 claims, counter-claims, or contribution claims, which 

18 are based upon the provision of, use of, or payment 

19 for (or the failure to provide, use, or pay for) health 

20 care services or medical products, regardless of the 

21 theory of liability on which the claim is based, or the 

22 number of plaintiffs, defendants, or other parties, or 

23 the number of causes of action. 

24 (9) HEALTH CARE ORGANIZATION.—The term 

25 ‘‘health care organization’’ means any person or enmstockstill on DSK4VPTVN1PROD with BILLS

139 

HR 5652 PCS 

1 tity which is obligated to provide or pay for health 

2 benefits under any health plan, including any person 

3 or entity acting under a contract or arrangement 

4 with a health care organization to provide or admin5 ister any health benefit. 

6 (10) HEALTH CARE PROVIDER.—The term 

7 ‘‘health care provider’’ means any person or entity 

8 required by State or Federal laws or regulations to 

9 be licensed, registered, or certified to provide health 

10 care services, and being either so licensed, reg11 istered, or certified, or exempted from such require12 ment by other statute or regulation. 

13 (11) HEALTH CARE GOODS OR SERVICES.—The 

14 term ‘‘health care goods or services’’ means any 

15 goods or services provided by a health care organiza16 tion, provider, or by any individual working under 

17 the supervision of a health care provider, that relates 

18 to the diagnosis, prevention, or treatment of any 

19 human disease or impairment, or the assessment or 

20 care of the health of human beings. 

21 (12) MALICIOUS INTENT TO INJURE.—The 

22 term ‘‘malicious intent to injure’’ means inten23 tionally causing or attempting to cause physical in24 jury other than providing health care goods or serv25 ices. 

mstockstill on DSK4VPTVN1PROD with BILLS

140 

HR 5652 PCS 

1 (13) MEDICAL PRODUCT.—The term ‘‘medical 

2 product’’ means a drug, device, or biological product 

3 intended for humans, and the terms ‘‘drug’’, ‘‘de4 vice’’, and ‘‘biological product’’ have the meanings 

5 given such terms in sections 201(g)(1) and 201(h) 

6 of the Federal Food, Drug and Cosmetic Act (21 

7 U.S.C. 321(g)(1) and (h)) and section 351(a) of the 

8 Public Health Service Act (42 U.S.C. 262(a)), re9 spectively, including any component or raw material 

10 used therein, but excluding health care services. 

11 (14) NONECONOMIC DAMAGES.—The term 

12 ‘‘noneconomic damages’’ means damages for phys13 ical and emotional pain, suffering, inconvenience, 

14 physical impairment, mental anguish, disfigurement, 

15 loss of enjoyment of life, loss of society and compan16 ionship, loss of consortium (other than loss of do17 mestic service), hedonic damages, injury to reputa18 tion, and all other nonpecuniary losses of any kind 

19 or nature. 

20 (15) PUNITIVE DAMAGES.—The term ‘‘punitive 

21 damages’’ means damages awarded, for the purpose 

22 of punishment or deterrence, and not solely for com23 pensatory purposes, against a health care provider, 

24 health care organization, or a manufacturer, dis25 tributor, or supplier of a medical product. Punitive 

mstockstill on DSK4VPTVN1PROD with BILLS

141 

HR 5652 PCS 

1 damages are neither economic nor noneconomic 

2 damages. 

3 (16) RECOVERY.—The term ‘‘recovery’’ means 

4 the net sum recovered after deducting any disburse5 ments or costs incurred in connection with prosecu6 tion or settlement of the claim, including all costs 

7 paid or advanced by any person. Costs of health care 

8 incurred by the plaintiff and the attorneys’ office 

9 overhead costs or charges for legal services are not 

10 deductible disbursements or costs for such purpose. 

11 (17) STATE.—The term ‘‘State’’ means each of 

12 the several States, the District of Columbia, the 

13 Commonwealth of Puerto Rico, the Virgin Islands, 

14 Guam, American Samoa, the Northern Mariana Is15 lands, the Trust Territory of the Pacific Islands, and 

16 any other territory or possession of the United 

17 States, or any political subdivision thereof. 

18 SEC. 408. EFFECT ON OTHER LAWS. 

19 (a) VACCINE INJURY.— 

20 (1) To the extent that title XXI of the Public 

21 Health Service Act establishes a Federal rule of law 

22 applicable to a civil action brought for a vaccine-re23 lated injury or death— 

24 (A) this title does not affect the application 

25 of the rule of law to such an action; and 

mstockstill on DSK4VPTVN1PROD with BILLS

142 

HR 5652 PCS 

1 (B) any rule of law prescribed by this title 

2 in conflict with a rule of law of such title XXI 

3 shall not apply to such action. 

4 (2) If there is an aspect of a civil action 

5 brought for a vaccine-related injury or death to 

6 which a Federal rule of law under title XXI of the 

7 Public Health Service Act does not apply, then this 

8 title or otherwise applicable law (as determined 

9 under this title) will apply to such aspect of such ac10 tion. 

11 (b) OTHER FEDERAL LAW.—Except as provided in 

12 this section, nothing in this title shall be deemed to affect 

13 any defense available to a defendant in a health care law14 suit or action under any other provision of Federal law. 

15 SEC. 409. STATE FLEXIBILITY AND PROTECTION OF 

16 STATES’ RIGHTS. 

17 (a) HEALTH CARE LAWSUITS.—The provisions gov18 erning health care lawsuits set forth in this title preempt, 

19 subject to subsections (b) and (c), State law to the extent 

20 that State law prevents the application of any provisions 

21 of law established by or under this title. The provisions 

22 governing health care lawsuits set forth in this title super23 sede chapter 171 of title 28, United States Code, to the 

24 extent that such chapter— 

mstockstill on DSK4VPTVN1PROD with BILLS

143 

HR 5652 PCS 

1 (1) provides for a greater amount of damages 

2 or contingent fees, a longer period in which a health 

3 care lawsuit may be commenced, or a reduced appli4 cability or scope of periodic payment of future dam5 ages, than provided in this title; or 

6 (2) prohibits the introduction of evidence re7 garding collateral source benefits, or mandates or 

8 permits subrogation or a lien on collateral source 

9 benefits. 

10 (b) PROTECTION OF STATES’ RIGHTS AND OTHER

11 LAWS.—(1) Any issue that is not governed by any provi12 sion of law established by or under this title (including 

13 State standards of negligence) shall be governed by other14 wise applicable State or Federal law. 

15 (2) This title shall not preempt or supersede any 

16 State or Federal law that imposes greater procedural or 

17 substantive protections for health care providers and 

18 health care organizations from liability, loss, or damages 

19 than those provided by this title or create a cause of ac20 tion. 

21 (c) STATE FLEXIBILITY.—No provision of this title 

22 shall be construed to preempt— 

23 (1) any State law (whether effective before, on, 

24 or after the date of the enactment of this Act) that 

25 specifies a particular monetary amount of compenmstockstill on DSK4VPTVN1PROD with BILLS

144 

HR 5652 PCS 

1 satory or punitive damages (or the total amount of 

2 damages) that may be awarded in a health care law3 suit, regardless of whether such monetary amount is 

4 greater or lesser than is provided for under this title, 

5 notwithstanding section 303(a); or 

6 (2) any defense available to a party in a health 

7 care lawsuit under any other provision of State or 

8 Federal law. 

9 SEC. 410. APPLICABILITY; EFFECTIVE DATE. 

10 This title shall apply to any health care lawsuit 

11 brought in a Federal or State court, or subject to an alter12 native dispute resolution system, that is initiated on or 

13 after the date of the enactment of this Act, except that 

14 any health care lawsuit arising from an injury occurring 

15 prior to the date of the enactment of this Act shall be 

16 governed by the applicable statute of limitations provisions 

17 in effect at the time the injury occurred. 

18 TITLE V—COMMITTEE ON OVER19 SIGHT AND GOVERNMENT RE20 FORM 

21 SEC. 501. RETIREMENT CONTRIBUTIONS. 

22 (a) CIVIL SERVICE RETIREMENT SYSTEM.— 

23 (1) INDIVIDUAL CONTRIBUTIONS.—Section 

24 8334(c) of title 5, United States Code, is amended— 

mstockstill on DSK4VPTVN1PROD with BILLS

145 

HR 5652 PCS 

1 (A) by striking ‘‘(c) Each’’ and inserting 

2 ‘‘(c)(1) Each’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(2) Notwithstanding any other provision of this sub5 section, the applicable percentage of basic pay under this 

6 subsection shall— 

7 ‘‘(A) except as provided in subparagraph (B) or 

8 (C), for purposes of computing an amount— 

9 ‘‘(i) for a period in calendar year 2013, be 

10 equal to the applicable percentage under this 

11 subsection for calendar year 2012, plus an ad12 ditional 1.5 percentage points; 

13 ‘‘(ii) for a period in calendar year 2014, be 

14 equal to the applicable percentage under this 

15 subsection for calendar year 2013 (as deter16 mined under clause (i)), plus an additional 0.5 

17 percentage point; 

18 ‘‘(iii) for a period in calendar year 2015, 

19 2016, or 2017, be equal to the applicable per20 centage under this subsection for the preceding 

21 calendar year (as determined under clause (ii) 

22 or this clause, as the case may be), plus an ad23 ditional 1.0 percentage point; and 

24 ‘‘(iv) for a period in any calendar year 

25 after 2017, be equal to the applicable percentmstockstill on DSK4VPTVN1PROD with BILLS

146 

HR 5652 PCS 

1 age under this subsection for calendar year 

2 2017 (as determined under clause (iii)); 

3 ‘‘(B) for purposes of computing an amount with 

4 respect to a Member for Member service— 

5 ‘‘(i) for a period in calendar year 2013, be 

6 equal to the applicable percentage under this 

7 subsection for calendar year 2012, plus an ad8 ditional 2.5 percentage points; 

9 ‘‘(ii) for a period in calendar year 2014, 

10 2015, 2016, or 2017, be equal to the applicable 

11 percentage under this subsection for the pre12 ceding calendar year (as determined under 

13 clause (i) or this clause, as the case may be), 

14 plus an additional 1.5 percentage points; and 

15 ‘‘(iii) for a period in any calendar year 

16 after 2017, be equal to the applicable percent17 age under this subsection for calendar year 

18 2017 (as determined under clause (ii)); and 

19 ‘‘(C) for purposes of computing an amount with 

20 respect to a Member or employee for Congressional 

21 employee service— 

22 ‘‘(i) for a period in calendar year 2013, be 

23 equal to the applicable percentage under this 

24 subsection for calendar year 2012, plus an ad25 ditional 2.5 percentage points; 

mstockstill on DSK4VPTVN1PROD with BILLS

147 

HR 5652 PCS 

1 ‘‘(ii) for a period in calendar year 2014, 

2 2015, 2016, or 2017, be equal to the applicable 

3 percentage under this subsection for the pre4 ceding calendar year (as determined under 

5 clause (i) or this clause, as the case may be), 

6 plus an additional 1.5 percentage points; and 

7 ‘‘(iii) for a period in any calendar year 

8 after 2017, be equal to the applicable percent9 age under this subsection for calendar year 

10 2017 (as determined under clause (ii)). 

11 ‘‘(3)(A) Notwithstanding subsection (a)(2), any ex12 cess contributions under subsection (a)(1)(A) (including 

13 the portion of any deposit under this subsection allocable 

14 to excess contributions) shall, if made by an employee of 

15 the United States Postal Service or the Postal Regulatory 

16 Commission, be deposited to the credit of the Postal Serv17 ice Fund under section 2003 of title 39, rather than the 

18 Civil Service Retirement and Disability Fund. 

19 ‘‘(B) For purposes of this paragraph, the term ‘ex20 cess contributions’, as used with respect to contributions 

21 made under subsection (a)(1)(A) by an employee of the 

22 United States Postal Service or the Postal Regulatory 

23 Commission, means the amount by which— 

24 ‘‘(i) deductions from basic pay of such employee 

25 which are made under subsection (a)(1)(A), exceed 

mstockstill on DSK4VPTVN1PROD with BILLS

148 

HR 5652 PCS 

1 ‘‘(ii) deductions from basic pay of such em2 ployee which would have been so made if paragraph 

3 (2) had not been enacted.’’. 

4 (2) GOVERNMENT CONTRIBUTIONS.—Section 

5 8334(a)(1)(B) of title 5, United States Code, is 

6 amended— 

7 (A) in clause (i), by striking ‘‘Except as 

8 provided in clause (ii),’’ and inserting ‘‘Except 

9 as provided in clause (ii) or (iii),’’; and 

10 (B) by adding at the end the following: 

11 ‘‘(iii) The amount to be contributed under clause (i) 

12 shall, with respect to a period in any year beginning after 

13 December 31, 2012, be equal to— 

14 ‘‘(I) the amount which would otherwise apply 

15 under clause (i) with respect to such period, reduced 

16 by 

17 ‘‘(II) the amount by which, with respect to such 

18 period, the withholding under subparagraph (A) ex19 ceeds the amount which would otherwise have been 

20 withheld from the basic pay of the employee or elect21 ed official involved under subparagraph (A) based on 

22 the percentage applicable under subsection (c) for 

23 calendar year 2012.’’. 

24 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 

mstockstill on DSK4VPTVN1PROD with BILLS

149 

HR 5652 PCS 

1 (1) INDIVIDUAL CONTRIBUTIONS.—Section 

2 8422(a)(3) of title 5, United States Code, is amend3 ed— 

4 (A) by redesignating subparagraph (B) as 

5 subparagraph (C); 

6 (B) by inserting after subparagraph (A) 

7 the following: 

8 ‘‘(B) Notwithstanding any other provision of this 

9 paragraph, the applicable percentage under this para10 graph for civilian service by employees or Members other 

11 than revised annuity employees shall— 

12 ‘‘(i) except as provided in clause (ii) or (iii), for 

13 purposes of computing an amount— 

14 ‘‘(I) for a period in calendar year 2013, be 

15 equal to the applicable percentage under this 

16 paragraph for calendar year 2012, plus an ad17 ditional 1.5 percentage points; 

18 ‘‘(II) for a period in calendar year 2014, 

19 be equal to the applicable percentage under this 

20 paragraph for calendar year 2013 (as deter21 mined under subclause (I)), plus an additional 

22 0.5 percentage point; 

23 ‘‘(III) for a period in calendar year 2015, 

24 2016, or 2017, be equal to the applicable per25 centage under this paragraph for the preceding 

mstockstill on DSK4VPTVN1PROD with BILLS

150 

HR 5652 PCS 

1 calendar year (as determined under subclause 

2 (II) or this subclause, as the case may be), plus 

3 an additional 1.0 percentage point; and 

4 ‘‘(IV) for a period in any calendar year 

5 after 2017, be equal to the applicable percent6 age under this paragraph for calendar year 

7 2017 (as determined under subclause (III)); 

8 ‘‘(ii) for purposes of computing an amount with 

9 respect to a Member— 

10 ‘‘(I) for a period in calendar year 2013, be 

11 equal to the applicable percentage under this 

12 paragraph for calendar year 2012, plus an ad13 ditional 2.5 percentage points; 

14 ‘‘(II) for a period in calendar year 2014, 

15 2015, 2016, or 2017, be equal to the applicable 

16 percentage under this paragraph for the pre17 ceding calendar year (as determined under sub18 clause (I) or this subclause, as the case may 

19 be), plus an additional 1.5 percentage points; 

20 and 

21 ‘‘(III) for a period in any calendar year 

22 after 2017, be equal to the applicable percent23 age under this paragraph for calendar year 

24 2017 (as determined under subclause (II)); and 

mstockstill on DSK4VPTVN1PROD with BILLS

151 

HR 5652 PCS 

1 ‘‘(iii) for purposes of computing an amount 

2 with respect to a Congressional employee— 

3 ‘‘(I) for a period in calendar year 2013, 

4 2014, 2015, 2016, or 2017, be equal to the ap5 plicable percentage under this paragraph for 

6 the preceding calendar year (including as in7 creased under this subclause, if applicable), plus 

8 an additional 1.5 percentage points; and 

9 ‘‘(II) for a period in any calendar year 

10 after 2017, be equal to the applicable percent11 age under this paragraph for calendar year 

12 2017 (as determined under subclause (I)).’’; 

13 and 

14 (C) in subparagraph (C) (as so redesig15 nated by subparagraph (A))— 

16 (i) by striking ‘‘9.3’’ each place it ap17 pears and inserting ‘‘12’’; and 

18 (ii) by striking ‘‘9.8’’ each place it ap19 pears and inserting ‘‘12.5’’. 

20 (2) GOVERNMENT CONTRIBUTIONS.—Section 

21 8423(a)(2) of title 5, United States Code, is amend22 ed— 

23 (A) by striking ‘‘(2)’’ and inserting 

24 ‘‘(2)(A)’’; and 

25 (B) by adding at the end the following: 

mstockstill on DSK4VPTVN1PROD with BILLS

152 

HR 5652 PCS 

1 ‘‘(B)(i) Subject to clauses (ii) and (iii), for purposes 

2 of any period in any year beginning after December 31, 

3 2012, the normal-cost percentage under this subsection 

4 shall be determined and applied as if section 501(b)(1) 

5 of the Sequester Replacement Reconciliation Act of 2012 

6 had not been enacted. 

7 ‘‘(ii) Any contributions under this subsection in ex8 cess of the amounts which (but for clause (i)) would other9 wise have been payable shall be applied toward reducing 

10 the unfunded liability of the Civil Service Retirement Sys11 tem. 

12 ‘‘(iii) After the unfunded liability of the Civil Service 

13 Retirement System has been eliminated, as determined by 

14 the Office, Government contributions under this sub15 section shall be determined and made disregarding this 

16 subparagraph. 

17 ‘‘(iv) The preceding provisions of this subparagraph 

18 shall be disregarded for purposes of determining the con19 tributions payable by the United States Postal Service and 

20 the Postal Regulatory Commission.’’. 

21 SEC. 502. ANNUITY SUPPLEMENT. 

22 Section 8421(a) of title 5, United States Code, is 

23 amended— 

24 (1) in paragraph (1), by striking ‘‘paragraph 

25 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 

mstockstill on DSK4VPTVN1PROD with BILLS

153 

HR 5652 PCS 

1 (2) in paragraph (2), by striking ‘‘paragraph 

2 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(4)(A) Except as provided in subparagraph (B), no 

5 annuity supplement under this section shall be payable in 

6 the case of an individual who first becomes subject to this 

7 chapter after December 31, 2012. 

8 ‘‘(B) Nothing in this paragraph applies in the case 

9 of an individual separating under subsection (d) or (e) of 

10 section 8412.’’. 

11 SEC. 503. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 

12 PAYMENTS FOR ACCRUED OR ACCUMULATED 

13 LEAVE. 

14 (a) AMENDMENTS RELATING TO CSRS.—Section 

15 8351(b) of title 5, United States Code, is amended— 

16 (1) by striking paragraph (2)(A) and inserting 

17 the following: 

18 ‘‘(2)(A) An employee or Member may contribute to 

19 the Thrift Savings Fund in any pay period any amount 

20 of such employee’s or Member’s basic pay for such pay 

21 period, and may contribute (by direct transfer to the 

22 Fund) any part of any payment that the employee or 

23 Member receives for accumulated and accrued annual or 

24 vacation leave under section 5551 or 5552. Notwith25 standing section 2105(e), in this paragraph the term ‘emmstockstill on DSK4VPTVN1PROD with BILLS

154 

HR 5652 PCS 

1 ployee’ includes an employee of the United States Postal 

2 Service or of the Postal Regulatory Commission.’’; 

3 (2) by striking subparagraph (B) of paragraph 

4 (2); and 

5 (3) by redesignating subparagraph (C) of para6 graph (2) as subparagraph (B). 

7 (b) AMENDMENTS RELATING TO FERS.—Section 

8 8432(a) of title 5, United States Code, is amended— 

9 (1) by striking all that precedes paragraph (3) 

10 and inserting the following: 

11 ‘‘(a)(1) An employee or Member— 

12 ‘‘(A) may contribute to the Thrift Savings 

13 Fund in any pay period, pursuant to an election 

14 under subsection (b), any amount of such employee’s 

15 or Member’s basic pay for such pay period; and 

16 ‘‘(B) may contribute (by direct transfer to the 

17 Fund) any part of any payment that the employee 

18 or Member receives for accumulated and accrued an19 nual or vacation leave under section 5551 or 5552. 

20 ‘‘(2) Contributions made under paragraph (1)(A) 

21 pursuant to an election under subsection (b) shall, with 

22 respect to each pay period for which such election remains 

23 in effect, be made in accordance with a program of regular 

24 contributions provided in regulations prescribed by the 

25 Executive Director.’’; and 

mstockstill on DSK4VPTVN1PROD with BILLS

155 

HR 5652 PCS 

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

2 ‘‘(4) Notwithstanding section 2105(e), in this sub3 section the term ‘employee’ includes an employee of the 

4 United States Postal Service or of the Postal Regulatory 

5 Commission.’’. 

6 (c) REGULATIONS.—The Executive Director of the 

7 Federal Retirement Thrift Investment Board shall pro8 mulgate regulations to carry out the amendments made 

9 by this section. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 subsections (a) and (b) shall take effect 1 year after the 

12 date of the enactment of this Act. 

13 TITLE VI—COMMITTEE ON WAYS 

14 AND MEANS 

15 Subtitle A—Recapture of Overpay16 ments Resulting From Certain 

17 Federally-subsidized Health In18 surance 

19 SEC. 601. RECAPTURE OF OVERPAYMENTS RESULTING 

20 FROM CERTAIN FEDERALLY-SUBSIDIZED 

21 HEALTH INSURANCE. 

22 (a) IN GENERAL.—Paragraph (2) of section 36B(f) 

23 of the Internal Revenue Code of 1986 is amended by strik24 ing subparagraph (B). 

mstockstill on DSK4VPTVN1PROD with BILLS

156 

HR 5652 PCS 

1 (b) CONFORMING AMENDMENT.—So much of para2 graph (2) of section 36B(f) of such Code, as amended by 

3 subsection (a), as precedes ‘‘advance payments’’ is amend4 ed to read as follows: 

5 ‘‘(2) EXCESS ADVANCE PAYMENTS.—If the’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years ending after De8 cember 31, 2013. 

9 Subtitle B—Social Security Num10 ber Required to Claim the Re11 fundable Portion of the Child 

12 Tax Credit 

13 SEC. 611. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM 

14 THE REFUNDABLE PORTION OF THE CHILD 

15 TAX CREDIT. 

16 (a) IN GENERAL.—Subsection (d) of section 24 of the 

17 Internal Revenue Code of 1986 is amended by adding at 

18 the end the following new paragraph: 

19 ‘‘(5) IDENTIFICATION REQUIREMENT WITH RE20 SPECT TO TAXPAYER.— 

21 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

22 not apply to any taxpayer for any taxable year 

23 unless the taxpayer includes the taxpayer’s So24 cial Security number on the return of tax for 

25 such taxable year. 

mstockstill on DSK4VPTVN1PROD with BILLS

157 

HR 5652 PCS 

1 ‘‘(B) JOINT RETURNS.—In the case of a 

2 joint return, the requirement of subparagraph 

3 (A) shall be treated as met if the Social Secu4 rity number of either spouse is included on such 

5 return. 

6 ‘‘(C) LIMITATION.—Subparagraph (A) 

7 shall not apply to the extent the tentative min8 imum tax (as defined in section 55(b)(1)(A)) 

9 exceeds the credit allowed under section 32.’’. 

10 (b) OMISSION TREATED AS MATHEMATICAL OR

11 CLERICAL ERROR.—Subparagraph (I) of section 

12 6213(g)(2) of such Code is amended to read as follows: 

13 ‘‘(I) an omission of a correct Social Secu14 rity number required under section 24(d)(5) 

15 (relating to refundable portion of child tax cred16 it), or a correct TIN under section 24(e) (relat17 ing to child tax credit), to be included on a re18 turn,’’. 

19 (c) CONFORMING AMENDMENT.—Subsection (e) of 

20 section 24 of such Code is amended by inserting ‘‘WITH

21 RESPECT TO QUALIFYING CHILDREN’’ after ‘‘IDENTI22 FICATION REQUIREMENT’’ in the heading thereof. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 the date of the enactment of this Act. 

mstockstill on DSK4VPTVN1PROD with BILLS

158 

HR 5652 PCS 

1 Subtitle C—Human Resources 

2 Provisions 

3 SEC. 621. REPEAL OF THE PROGRAM OF BLOCK GRANTS TO 

4 STATES FOR SOCIAL SERVICES. 

5 (a) REPEALS.—Sections 2001 through 2007 of the 

6 Social Security Act (42 U.S.C. 1397–1397f) are repealed. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 404(d) of the Social Security Act 

9 (42 U.S.C. 604(d)) is amended— 

10 (A) in paragraph (1), by striking ‘‘any or 

11 all of the following provisions of law:’’ and all 

12 that follows through ‘‘The’’ and inserting 

13 ‘‘the’’; 

14 (B) in paragraph (3)— 

15 (i) by striking ‘‘RULES’’ and all that 

16 follows through ‘‘any amount paid’’ and in17 serting ‘‘RULES.—Any amount paid’’; 

18 (ii) by striking ‘‘a provision of law 

19 specified in paragraph (1)’’ and inserting 

20 ‘‘the Child Care and Development Block 

21 Grant Act of 1990’’; and 

22 (iii) by striking subparagraph (B); 

23 and 

24 (C) by striking paragraph (2) and redesig25 nating paragraph (3) as paragraph (2). 

mstockstill on DSK4VPTVN1PROD with BILLS

159 

HR 5652 PCS 

1 (2) Section 422(b) of the Social Security Act 

2 (42 U.S.C. 622(b)) is amended— 

3 (A) in paragraph (1)(A)— 

4 (i) by striking ‘‘administers or super5 vises’’ and inserting ‘‘administered or su6 pervised’’; and 

7 (ii) by striking ‘‘subtitle 1 of title 

8 XX’’ and inserting ‘‘subtitle A of title XX 

9 (as in effect before the repeal of such sub10 title)’’; and 

11 (B) in paragraph (2), by striking ‘‘under 

12 subtitle 1 of title XX,’’. 

13 (3) Section 471(a) of the Social Security Act 

14 (42 U.S.C. 671(a)) is amended— 

15 (A) in paragraph (4), by striking ‘‘, under 

16 subtitle 1 of title XX of this Act,’’; and 

17 (B) in paragraph (8), by striking ‘‘XIX, or 

18 XX’’ and inserting ‘‘or XIX’’. 

19 (4) Section 472(h)(1) of the Social Security Act 

20 (42 U.S.C. 672(h)(1)) is amended by striking the 

21 2nd sentence. 

22 (5) Section 473(b) of the Social Security Act 

23 (42 U.S.C. 673(b)) is amended— 

24 (A) in paragraph (1), by striking ‘‘(3)’’ 

25 and inserting ‘‘(2)’’; 

mstockstill on DSK4VPTVN1PROD with BILLS

160 

HR 5652 PCS 

1 (B) in paragraph (4), by striking ‘‘para2 graphs (1) and (2)’’ and inserting ‘‘paragraph 

3 (1)’’; and 

4 (C) by striking paragraph (2) and redesig5 nating paragraphs (3) and (4) as paragraphs 

6 (2) and (3), respectively. 

7 (6) Section 504(b)(6) of the Social Security Act 

8 (42 U.S.C. 704(b)(6)) is amended in each of sub9 paragraphs (A) and (B) by striking ‘‘XIX, or XX’’ 

10 and inserting ‘‘or XIX’’. 

11 (7) Section 1101(a)(1) of the Social Security 

12 Act (42 U.S.C. 1301(a)(1)) is amended by striking 

13 the penultimate sentence. 

14 (8) Section 1128(h) of the Social Security Act 

15 (42 U.S.C. 1320a–7(h)) is amended— 

16 (A) by adding ‘‘or’’ at the end of para17 graph (2); and 

18 (B) by striking paragraph (3) and redesig19 nating paragraph (4) as paragraph (3). 

20 (9) Section 1128A(i)(1) of the Social Security 

21 Act (42 U.S.C. 1320a–7a(i)(1)) is amended by strik22 ing ‘‘or subtitle 1 of title XX’’. 

23 (10) Section 1132(a)(1) of the Social Security 

24 Act (42 U.S.C. 1320b–2(a)(1)) is amended by strik25 ing ‘‘XIX, or XX’’ and inserting ‘‘or XIX’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

161 

HR 5652 PCS 

1 (11) Section 1902(e)(13)(F)(iii) of the Social 

2 Security Act (42 U.S.C. 1396a(e)(13)(F)(iii)) is 

3 amended— 

4 (A) by striking ‘‘EXCLUSIONS’’ and insert5 ing ‘‘EXCLUSION’’; and 

6 (B) by striking ‘‘an agency that determines 

7 eligibility for a program established under the 

8 Social Services Block Grant established under 

9 title XX or’’. 

10 (12) The heading for title XX of the Social Se11 curity Act is amended by striking ‘‘BLOCK 

12 GRANTS TO STATES FOR SOCIAL SERVICES’’ 

13 and inserting ‘‘HEALTH PROFESSIONS DEM14 ONSTRATIONS AND ENVIRONMENTAL 

15 HEALTH CONDITION DETECTION’’. 

16 (13) The heading for subtitle A of title XX of 

17 the Social Security Act is amended by striking 

18 ‘‘Block Grants to States for Social Serv19 ices’’ and inserting ‘‘Health Professions 

20 Demonstrations and Environmental 

21 Health Condition Detection’’. 

22 (14) Section 16(k)(5)(B)(i) of the Food and 

23 Nutrition Act of 2008 (7 U.S.C. 2025(k)(5)(B)(i)) 

24 is amended by striking ‘‘, or title XX,’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

162 

HR 5652 PCS 

1 (15) Section 402(b)(3) of the Personal Respon2 sibility and Work Opportunity Reconciliation Act of 

3 1996 (8 U.S.C. 1612(b)(3)) is amended by striking 

4 subparagraph (B) and redesignating subparagraph 

5 (C) as subparagraph (B). 

6 (16) Section 245A(h)(4)(I) of the Immigration 

7 Reform and Control Act of 1986 (8 U.S.C. 

8 1255a(h)(4)(I)) is amended by striking ‘‘, XVI, and 

9 XX’’ and inserting ‘‘and XVI’’. 

10 (17) Section 17 of the Richard B. Russell Na11 tional School Lunch Act (42 U.S.C. 1766) is amend12 ed— 

13 (A) in subsection (a)(2)— 

14 (i) in subparagraph (B)— 

15 (I) by striking ‘‘—’’ and all that 

16 follows through ‘‘(i)’’; 

17 (II) by striking ‘‘or’’ at the end 

18 of clause (i); and 

19 (III) by striking clause (ii); and 

20 (ii) in subparagraph (D)(ii), by strik21 ing ‘‘or title XX’’; and 

22 (B) in subsection (o)(2)(B)— 

23 (i) by striking ‘‘or title XX’’ each 

24 place it appears; and 

25 (ii) by striking ‘‘or XX’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

163 

HR 5652 PCS 

1 (18) Section 201(b) of the Indian Child Welfare 

2 Act of 1978 (25 U.S.C. 1931(b)) is amended by 

3 striking ‘‘titles IV–B and XX’’ each place it appears 

4 and inserting ‘‘part B of title IV’’. 

5 (19) Section 3803(c)(2)(C) of title 31, United 

6 States Code, is amended by striking clause (vi) and 

7 redesignating clauses (vii) through (xvi) as clauses 

8 (vi) through (xv), respectively. 

9 (20) Section 14502(d)(3) of title 40, United 

10 States Code, is amended— 

11 (A) by striking ‘‘and title XX’’; and 

12 (B) by striking ‘‘, 1397 et seq.’’. 

13 (21) Section 2006(a)(15) of the Public Health 

14 Service Act (42 U.S.C. 300z–5(a)(15)) is amended 

15 by striking ‘‘and title XX’’. 

16 (22) Section 203(b)(3) of the Older Americans 

17 Act of 1965 (42 U.S.C. 3013(b)(3)) is amended by 

18 striking ‘‘XIX, and XX’’ and inserting ‘‘and XIX’’. 

19 (23) Section 213 of the Older Americans Act of 

20 1965 (42 U.S.C. 3020d) is amended by striking ‘‘or 

21 title XX’’. 

22 (24) Section 306(d) of the Older Americans Act 

23 of 1965 (42 U.S.C. 3026(d)) is amended in each of 

24 paragraphs (1) and (2) by striking ‘‘titles XIX and 

25 XX’’ and inserting ‘‘title XIX’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

164 

HR 5652 PCS 

1 (25) Section 2605 of the Low-Income Home 

2 Energy Assistance Act of 1981 (42 U.S.C. 8624) is 

3 amended in each of subsections (b)(4) and (j) by 

4 striking ‘‘under title XX of the Social Security 

5 Act,’’. 

6 (26) Section 602 of the Child Development As7 sociate Scholarship Assistance Act of 1985 (42 

8 U.S.C. 10901) is repealed. 

9 (27) Section 3(d)(1) of the Assisted Suicide 

10 Funding Restriction Act of 1997 (42 U.S.C. 

11 14402(d)(1)) is amended by striking subparagraph 

12 (C) and redesignating subparagraphs (D) through 

13 (K) as subparagraphs (C) through (J), respectively. 

14 (c) EFFECTIVE DATE.—The repeals and amend15 ments made by this section shall take effect on October 

16 1, 2012. 

17 TITLE VII—SEQUESTER 

18 REPLACEMENT 

19 SEC. 701. SHORT TITLE. 

20 This title may be cited as the ‘‘Sequester Replace21 ment Act of 2012’’. 

22 SEC. 702. PROTECTING VETERANS PROGRAMS FROM SE23 QUESTER. 

24 Section 256(e)(2)(E) of the Balanced Budget and 

25 Emergency Deficit Control Act of 1985 is repealed. 

mstockstill on DSK4VPTVN1PROD with BILLS

165 

HR 5652 PCS 

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 

mstockstill on DSK4VPTVN1PROD with BILLS

166 

HR 5652 PCS 

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— 

mstockstill on DSK4VPTVN1PROD with BILLS

167 

HR 5652 PCS 

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 pursu21 ant to section 251A of such Act shall have no force or 

22 effect. 

Passed the House of Representatives May 10, 2012. 

Attest: KAREN L. HAAS, 

Clerk. 

mstockstill on DSK4VPTVN1PROD with BILLS

Calendar No. 398 

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 

MAY 15, 2012 

Read the second time and placed on the calendar 

mstockstill on DSK4VPTVN1PROD with BILLS