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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5652 Reported in House (RH)]

                                                 Union Calendar No. 330
112th CONGRESS
  2d Session
                                H. R. 5652

                          [Report No. 112-470]

To provide for reconciliation pursuant to section 201 of the concurrent 
             resolution on the budget for fiscal year 2013.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 9, 2012

 Mr. Ryan of Wisconsin from the Committee on the Budget, reported the 
following bill; which was committed to the Committee of the Whole House 
          on the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL

 
To provide for reconciliation pursuant to section 201 of the concurrent 
             resolution on the budget for fiscal year 2013.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sequester Replacement Reconciliation 
Act of 2012''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                          TITLE I--AGRICULTURE

Sec. 101. Short title.
Sec. 102. ARRA sunset at June 30, 2012.
Sec. 103. Categorical eligibility limited to cash assistance.
Sec. 104. Standard utility allowances based on the receipt of energy 
                            assistance payments.
Sec. 105. Employment and training; workfare.
Sec. 106. End State bonus program for the supplemental nutrition 
                            assistance program.
Sec. 107. Funding of employment and training programs.
Sec. 108. Turn off indexing for nutrition education and obesity 
                            prevention.
Sec. 109. Extension of Authorization of Food and Nutrition Act of 2008.
Sec. 110. Effective dates and application of amendments.
               TITLE II--COMMITTEE ON ENERGY AND COMMERCE

          Subtitle A--Repeal of Certain ACA Funding Provisions

Sec. 201. Repealing mandatory funding to states to establish American 
                            Health Benefit Exchanges.
Sec. 202. Repealing Prevention and Public Health Fund.
Sec. 203. Rescinding unobligated balances for CO-OP program.
                          Subtitle B--Medicaid

Sec. 211. Revision of provider tax indirect guarantee threshold.
Sec. 212. Rebasing of State DSH allotments for fiscal year 2022.
Sec. 213. Repeal of Medicaid and CHIP maintenance of effort 
                            requirements under PPACA.
Sec. 214. Medicaid payments to territories.
Sec. 215. Repealing bonus payments for enrollment under Medicaid and 
                            CHIP.
                      Subtitle C--Liability Reform

Sec. 221. Findings and purpose.
Sec. 222. Encouraging speedy resolution of claims.
Sec. 223. Compensating patient injury.
Sec. 224. Maximizing patient recovery.
Sec. 225. Additional HEALTH benefits.
Sec. 226. Punitive damages.
Sec. 227. Authorization of payment of future damages to claimants in 
                            HEALTH care lawsuits.
Sec. 228. Definitions.
Sec. 229. Effect on other laws.
Sec. 230. State flexibility and protection of States' rights.
Sec. 231. Applicability; effective date.
                     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.
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.
         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 Federally-
                      subsidized 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 I--AGRICULTURE

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Agricultural Reconciliation Act of 
2012''.

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

    Section 101(a)(2) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120) is amended 
by striking ``October 31, 2013'' and inserting ``June 30, 2012''.

SEC. 103. CATEGORICAL ELIGIBILITY LIMITED TO CASH ASSISTANCE.

    Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended--
            (1) in the 2d sentence of subsection (a) by striking 
        ``households in which each member receives benefits'' and 
        inserting ``households in which each member receives cash 
        assistance'', and
            (2) in subsection (j) by striking ``or who receives 
        benefits under a State program'' and inserting ``or who 
        receives cash assistance under a State program''.

SEC. 104. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY 
              ASSISTANCE PAYMENTS.

    (a) Standard Utility Allowance.--Section 5 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
            (1) in subsection (e)(6)(C) by striking clause (iv), and
            (2) in subsection (k) by striking paragraph (4) and 
        inserting the following:
            ``(4) Third party energy assistance payments.--For purposes 
        of subsection (d)(1), a payment made under a State law (other 
        than a law referred to in paragraph (2)(G)) to provide energy 
        assistance to a household shall be considered money payable 
        directly to the household.''.
    (b) Conforming Amendments.--Section 2605(f)(2) of the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)) is amended--
            (1) by striking ``and for purposes of determining any 
        excess shelter expense deduction under section 5(e) of the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2014(e))'', and
            (2) in subparagraph (A) by inserting before the semicolon 
        the following: ``, except that such payments or allowances 
        shall not be deemed to be expended for purposes of determining 
        any excess shelter expense deduction under section 5(e)(6) of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6))''.

SEC. 105. EMPLOYMENT AND TRAINING; WORKFARE.

    (a) Administrative Cost-sharing for Employment and Training 
Programs.--
            (1) In general.--Section 16 of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2025) is amended--
                    (A) in subsection (a) by inserting ``(other than a 
                program carried out under section 6(d)(4) or section 
                20)'' after ``supplemental nutrition assistance 
                program'' the 1st place it appears, and
                    (B) in subsection (h)--
                            (i) by striking paragraphs (2) and (3), and
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraphs (2) and (3), respectively.
            (2) Conforming amendments.--
                    (A) Section 17(b)(1)(B)(iv)(III)(hh) of the Food 
                and Nutrition Act of 2008 (7 U.S.C. 
                2026(b)(1)(B)(iv)(III)(hh)) is amended by striking 
                ``(g), (h)(2), or (h)(3)'' and inserting ``or (g)''.
                    (B) Section 22(d)(1)(B)(ii) of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is 
                amended is amended by striking ``, (g), (h)(2), and 
                (h)(3)'' and inserting ``and (g)''.
    (b) Administrative Cost-sharing and Reimbursements for Workfare.--
Section 20 of the Food and Nutrition Act of 2008 (7 U.S.C. 2029) is 
amended by striking subsection (g).

SEC. 106. END STATE BONUS PROGRAM FOR THE SUPPLEMENTAL NUTRITION 
              ASSISTANCE PROGRAM.

    Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is 
amended by striking subsection (d).

SEC. 107. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    For purposes of fiscal year 2013, the reference to $90,000,000 in 
section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)(A)) shall be deemed to be a reference to $79,000,000.

SEC. 108. TURN OFF INDEXING FOR NUTRITION EDUCATION AND OBESITY 
              PREVENTION.

    Section 28(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2037(d)) is amended by striking ``years--'' and all that follows 
through the period at the end, and inserting ``years, $375,000,000.''.

SEC. 109. EXTENSION OF AUTHORIZATION OF FOOD AND NUTRITION ACT OF 2008.

    Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2027(a)(1)) is amended by striking ``2012'' and inserting ``2013''.

SEC. 110. EFFECTIVE DATES AND APPLICATION OF AMENDMENTS.

    (a) General Effective Date.--Except as provided in subsection (b), 
this title and the amendments made by this title shall take effect on 
October 1, 2012, and shall apply only with respect to certification 
periods that begin on or after such date.
    (b) Special Effective Date.--Section 107 and the amendments made by 
sections 102, 103, 104, and 109 shall take effect on the date of the 
enactment of this Act and shall apply only with respect to 
certification periods that begin on or after such date.

               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.

    (a) In General.--Section 1311(a) of the Patient Protection and 
Affordable Care Act (42 U.S.C. 18031(a)) is repealed.
    (b) Rescission of Unobligated Funds.--Of the funds made available 
under such section 1311(a), the unobligated balance is rescinded.

SEC. 202. REPEALING PREVENTION AND PUBLIC HEALTH FUND.

    (a) In General.--Section 4002 of the Patient Protection and 
Affordable Care Act (42 U.S.C. 300u-11) is repealed.
    (b) Rescission of Unobligated Funds.--Of the funds made available 
by such section 4002, the unobligated balance is rescinded.

SEC. 203. RESCINDING UNOBLIGATED BALANCES FOR CO-OP PROGRAM.

    Of the funds made available under section 1322(g) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18042(g)), the 
unobligated balance is rescinded.

                          Subtitle B--Medicaid

SEC. 211. REVISION OF PROVIDER TAX INDIRECT GUARANTEE THRESHOLD.

    Section 1903(w)(4)(C)(ii) of the Social Security Act (42 U.S.C. 
1396b(w)(4)(C)(ii)) is amended by inserting ``and for portions of 
fiscal years beginning on or after October 1, 2012,'' after ``October 
1, 2011,''.

SEC. 212. REBASING OF STATE DSH ALLOTMENTS FOR FISCAL YEAR 2022.

    Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f)) 
is amended--
            (1) by redesignating paragraph (9) as paragraph (10);
            (2) in paragraph (3)(A) by striking ``paragraphs (6), (7), 
        and (8)'' and inserting ``paragraphs (6), (7), (8), and (9)''; 
        and
            (3) by inserting after paragraph (8) the following new 
        paragraph:
            ``(9) Rebasing of state dsh allotments for fiscal year 
        2022.--With respect to fiscal 2022, for purposes of applying 
        paragraph (3)(A) to determine the DSH allotment for a State, 
        the amount of the DSH allotment for the State under paragraph 
        (3) for fiscal year 2021 shall be treated as if it were such 
        amount as reduced under paragraph (7).''.

SEC. 213. REPEAL OF MEDICAID AND CHIP MAINTENANCE OF EFFORT 
              REQUIREMENTS UNDER PPACA.

    (a) Repeal of PPACA Medicaid MOE.--Section 1902 of the Social 
Security Act (42 U.S.C. 1396a) is amended by striking subsection (gg).
    (b) Repeal of PPACA CHIP MOE.--Section 2105(d)(3) of the Social 
Security Act (42 U.S.C. 1397ee(d)(3)) is amended--
            (1) by striking subparagraph (A);
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
            (3) in the paragraph heading, by striking ``Continuation of 
        eligibility standards for children until october 1, 2019'' and 
        inserting ``Continuity of coverage''.
    (c) Conforming Amendments.--
            (1) Section 1902(a) of the Social Security Act (42 U.S.C. 
        1396a(a)) is amended by striking paragraph (74).
            (2) Effective January 1, 2014, paragraph (14) of section 
        1902(e) (as added by section 2002(a) of Public Law 111-148) is 
        amended by striking the third sentence of subparagraph (A).
    (d) Effective Date.--Except as provided in subsection (c)(2), the 
amendments made by this section shall take effect on the date of the 
enactment of this section.

SEC. 214. MEDICAID PAYMENTS TO TERRITORIES.

    (a) Limit on Payments.--Section 1108(g) of the Social Security Act 
(42 U.S.C. 1308(g)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``paragraphs (3) and (5)''; and
                    (B) by inserting ``paragraph (3)'' after ``and 
                subject to'';
            (2) in paragraph (4), by striking ``(3), and'' and all that 
        follows through ``of this subsection'' and inserting ``and (3) 
        of this subsection''; and
            (3) by striking paragraph (5).
    (b) FMAP.--The first sentence of section 1905(b) of the Social 
Security Act (42 U.S.C. 1396d(b)) is amended by striking ``shall be 55 
percent'' and inserting ``shall be 50 percent''.

SEC. 215. REPEALING BONUS PAYMENTS FOR ENROLLMENT UNDER MEDICAID AND 
              CHIP.

    (a) In General.--Paragraphs (3) and (4) of section 2105(a) of the 
Social Security Act (42 U.S.C. 1397ee(a)) are repealed.
    (b) Rescission of Unobligated Funds.--Of the funds made available 
by section 2105(a)(3) of the Social Security Act, the unobligated 
balance is rescinded.
    (c) Conforming Changes.--
            (1) Availability of excess funds for performance bonuses.--
        Section 2104(n)(2) of the Social Security Act (42 U.S.C. 
        1397dd(n)(2)) is amended by striking subparagraph (D).
            (2) Outreach or coverage benchmarks.--Section 2111(b)(3) of 
        the Social Security Act (42 U.S.C. 1397kk(b)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by inserting ``or'' 
                        after the semicolon at the end; and
                            (ii) by striking clause (ii); and
                    (B) by striking subparagraph (C).

                      Subtitle C--Liability Reform

SEC. 221. FINDINGS AND PURPOSE.

    (a) Findings.--
            (1) Effect on health care access and costs.--Congress finds 
        that our current civil justice system is adversely affecting 
        patient access to health care services, better patient care, 
        and cost-efficient health care, in that the health care 
        liability system is a costly and ineffective mechanism for 
        resolving claims of health care liability and compensating 
        injured patients, and is a deterrent to the sharing of 
        information among health care professionals which impedes 
        efforts to improve patient safety and quality of care.
            (2) Effect on interstate commerce.--Congress finds that the 
        health care and insurance industries are industries affecting 
        interstate commerce and the health care liability litigation 
        systems existing throughout the United States are activities 
        that affect interstate commerce by contributing to the high 
        costs of health care and premiums for health care liability 
        insurance purchased by health care system providers.
            (3) Effect on federal spending.--Congress finds that the 
        health care liability litigation systems existing throughout 
        the United States have a significant effect on the amount, 
        distribution, and use of Federal funds because of--
                    (A) the large number of individuals who receive 
                health care benefits under programs operated or 
                financed by the Federal Government;
                    (B) the large number of individuals who benefit 
                because of the exclusion from Federal taxes of the 
                amounts spent to provide them with health insurance 
                benefits; and
                    (C) the large number of health care providers who 
                provide items or services for which the Federal 
                Government makes payments.
    (b) Purpose.--It is the purpose of this subtitle to implement 
reasonable, comprehensive, and effective health care liability reforms 
designed to--
            (1) improve the availability of health care services in 
        cases in which health care liability actions have been shown to 
        be a factor in the decreased availability of services;
            (2) reduce the incidence of ``defensive medicine'' and 
        lower the cost of health care liability insurance, all of which 
        contribute to the escalation of health care costs;
            (3) ensure that persons with meritorious health care injury 
        claims receive fair and adequate compensation, including 
        reasonable noneconomic damages;
            (4) improve the fairness and cost-effectiveness of our 
        current health care liability system to resolve disputes over, 
        and provide compensation for, health care liability by reducing 
        uncertainty in the amount of compensation provided to injured 
        individuals; and
            (5) provide an increased sharing of information in the 
        health care system which will reduce unintended injury and 
        improve patient care.

SEC. 222. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS.

    The time for the commencement of a health care lawsuit shall be 3 
years after the date of manifestation of injury or 1 year after the 
claimant discovers, or through the use of reasonable diligence should 
have discovered, the injury, whichever occurs first. In no event shall 
the time for commencement of a health care lawsuit exceed 3 years after 
the date of manifestation of injury unless tolled for any of the 
following--
            (1) upon proof of fraud;
            (2) intentional concealment; or
            (3) the presence of a foreign body, which has no 
        therapeutic or diagnostic purpose or effect, in the person of 
        the injured person.
Actions by a minor shall be commenced within 3 years from the date of 
the alleged manifestation of injury except that actions by a minor 
under the full age of 6 years shall be commenced within 3 years of 
manifestation of injury or prior to the minor's 8th birthday, whichever 
provides a longer period. Such time limitation shall be tolled for 
minors for any period during which a parent or guardian and a health 
care provider or health care organization have committed fraud or 
collusion in the failure to bring an action on behalf of the injured 
minor.

SEC. 223. COMPENSATING PATIENT INJURY.

    (a) Unlimited Amount of Damages for Actual Economic Losses in 
Health Care Lawsuits.--In any health care lawsuit, nothing in this 
subtitle shall limit a claimant's recovery of the full amount of the 
available economic damages, notwithstanding the limitation in 
subsection (b).
    (b) Additional Noneconomic Damages.--In any health care lawsuit, 
the amount of noneconomic damages, if available, may be as much as 
$250,000, regardless of the number of parties against whom the action 
is brought or the number of separate claims or actions brought with 
respect to the same injury.
    (c) No Discount of Award for Noneconomic Damages.--For purposes of 
applying the limitation in subsection (b), future noneconomic damages 
shall not be discounted to present value. The jury shall not be 
informed about the maximum award for noneconomic damages. An award for 
noneconomic damages in excess of $250,000 shall be reduced either 
before the entry of judgment, or by amendment of the judgment after 
entry of judgment, and such reduction shall be made before accounting 
for any other reduction in damages required by law. If separate awards 
are rendered for past and future noneconomic damages and the combined 
awards exceed $250,000, the future noneconomic damages shall be reduced 
first.
    (d) Fair Share Rule.--In any health care lawsuit, each party shall 
be liable for that party's several share of any damages only and not 
for the share of any other person. Each party shall be liable only for 
the amount of damages allocated to such party in direct proportion to 
such party's percentage of responsibility. Whenever a judgment of 
liability is rendered as to any party, a separate judgment shall be 
rendered against each such party for the amount allocated to such 
party. For purposes of this section, the trier of fact shall determine 
the proportion of responsibility of each party for the claimant's harm.

SEC. 224. MAXIMIZING PATIENT RECOVERY.

    (a) Court Supervision of Share of Damages Actually Paid to 
Claimants.--In any health care lawsuit, the court shall supervise the 
arrangements for payment of damages to protect against conflicts of 
interest that may have the effect of reducing the amount of damages 
awarded that are actually paid to claimants. In particular, in any 
health care lawsuit in which the attorney for a party claims a 
financial stake in the outcome by virtue of a contingent fee, the court 
shall have the power to restrict the payment of a claimant's damage 
recovery to such attorney, and to redirect such damages to the claimant 
based upon the interests of justice and principles of equity. In no 
event shall the total of all contingent fees for representing all 
claimants in a health care lawsuit exceed the following limits:
            (1) Forty percent of the first $50,000 recovered by the 
        claimant(s).
            (2) Thirty-three and one-third percent of the next $50,000 
        recovered by the claimant(s).
            (3) Twenty-five percent of the next $500,000 recovered by 
        the claimant(s).
            (4) Fifteen percent of any amount by which the recovery by 
        the claimant(s) is in excess of $600,000.
    (b) Applicability.--The limitations in this section shall apply 
whether the recovery is by judgment, settlement, mediation, 
arbitration, or any other form of alternative dispute resolution. In a 
health care lawsuit involving a minor or incompetent person, a court 
retains the authority to authorize or approve a fee that is less than 
the maximum permitted under this section. The requirement for court 
supervision in the first two sentences of subsection (a) applies only 
in civil actions.

SEC. 225. ADDITIONAL HEALTH BENEFITS.

    In any health care lawsuit involving injury or wrongful death, any 
party may introduce evidence of collateral source benefits. If a party 
elects to introduce such evidence, any opposing party may introduce 
evidence of any amount paid or contributed or reasonably likely to be 
paid or contributed in the future by or on behalf of the opposing party 
to secure the right to such collateral source benefits. No provider of 
collateral source benefits shall recover any amount against the 
claimant or receive any lien or credit against the claimant's recovery 
or be equitably or legally subrogated to the right of the claimant in a 
health care lawsuit involving injury or wrongful death. This section 
shall apply to any health care lawsuit that is settled as well as a 
health care lawsuit that is resolved by a fact finder. This section 
shall not apply to section 1862(b) (42 U.S.C. 1395y(b)) or section 
1902(a)(25) (42 U.S.C. 1396a(a)(25)) of the Social Security Act.

SEC. 226. PUNITIVE DAMAGES.

    (a) In General.--Punitive damages may, if otherwise permitted by 
applicable State or Federal law, be awarded against any person in a 
health care lawsuit only if it is proven by clear and convincing 
evidence that such person acted with malicious intent to injure the 
claimant, or that such person deliberately failed to avoid unnecessary 
injury that such person knew the claimant was substantially certain to 
suffer. In any health care lawsuit where no judgment for compensatory 
damages is rendered against such person, no punitive damages may be 
awarded with respect to the claim in such lawsuit. No demand for 
punitive damages shall be included in a health care lawsuit as 
initially filed. A court may allow a claimant to file an amended 
pleading for punitive damages only upon a motion by the claimant and 
after a finding by the court, upon review of supporting and opposing 
affidavits or after a hearing, after weighing the evidence, that the 
claimant has established by a substantial probability that the claimant 
will prevail on the claim for punitive damages. At the request of any 
party in a health care lawsuit, the trier of fact shall consider in a 
separate proceeding--
            (1) whether punitive damages are to be awarded and the 
        amount of such award; and
            (2) the amount of punitive damages following a 
        determination of punitive liability.
If a separate proceeding is requested, evidence relevant only to the 
claim for punitive damages, as determined by applicable State law, 
shall be inadmissible in any proceeding to determine whether 
compensatory damages are to be awarded.
    (b) Determining Amount of Punitive Damages.--
            (1) Factors considered.--In determining the amount of 
        punitive damages, if awarded, in a health care lawsuit, the 
        trier of fact shall consider only the following--
                    (A) the severity of the harm caused by the conduct 
                of such party;
                    (B) the duration of the conduct or any concealment 
                of it by such party;
                    (C) the profitability of the conduct to such party;
                    (D) the number of products sold or medical 
                procedures rendered for compensation, as the case may 
                be, by such party, of the kind causing the harm 
                complained of by the claimant;
                    (E) any criminal penalties imposed on such party, 
                as a result of the conduct complained of by the 
                claimant; and
                    (F) the amount of any civil fines assessed against 
                such party as a result of the conduct complained of by 
                the claimant.
            (2) Maximum award.--The amount of punitive damages, if 
        awarded, in a health care lawsuit may be as much as $250,000 or 
        as much as two times the amount of economic damages awarded, 
        whichever is greater. The jury shall not be informed of this 
        limitation.
    (c) No Punitive Damages for Products That Comply With FDA 
Standards.--
            (1) In general.--
                    (A) No punitive damages may be awarded against the 
                manufacturer or distributor of a medical product, or a 
                supplier of any component or raw material of such 
                medical product, based on a claim that such product 
                caused the claimant's harm where--
                            (i)(I) such medical product was subject to 
                        premarket approval, clearance, or licensure by 
                        the Food and Drug Administration with respect 
                        to the safety of the formulation or performance 
                        of the aspect of such medical product which 
                        caused the claimant's harm or the adequacy of 
                        the packaging or labeling of such medical 
                        product; and
                            (II) such medical product was so approved, 
                        cleared, or licensed; or
                            (ii) such medical product is generally 
                        recognized among qualified experts as safe and 
                        effective pursuant to conditions established by 
                        the Food and Drug Administration and applicable 
                        Food and Drug Administration regulations, 
                        including without limitation those related to 
                        packaging and labeling, unless the Food and 
                        Drug Administration has determined that such 
                        medical product was not manufactured or 
                        distributed in substantial compliance with 
                        applicable Food and Drug Administration 
                        statutes and regulations.
                    (B) Rule of construction.--Subparagraph (A) may not 
                be construed as establishing the obligation of the Food 
                and Drug Administration to demonstrate affirmatively 
                that a manufacturer, distributor, or supplier referred 
                to in such subparagraph meets any of the conditions 
                described in such subparagraph.
            (2) Liability of health care providers.--A health care 
        provider who prescribes, or who dispenses pursuant to a 
        prescription, a medical product approved, licensed, or cleared 
        by the Food and Drug Administration shall not be named as a 
        party to a product liability lawsuit involving such product and 
        shall not be liable to a claimant in a class action lawsuit 
        against the manufacturer, distributor, or seller of such 
        product. Nothing in this paragraph prevents a court from 
        consolidating cases involving health care providers and cases 
        involving products liability claims against the manufacturer, 
        distributor, or product seller of such medical product.
            (3) Packaging.--In a health care lawsuit for harm which is 
        alleged to relate to the adequacy of the packaging or labeling 
        of a drug which is required to have tamper-resistant packaging 
        under regulations of the Secretary of Health and Human Services 
        (including labeling regulations related to such packaging), the 
        manufacturer or product seller of the drug shall not be held 
        liable for punitive damages unless such packaging or labeling 
        is found by the trier of fact by clear and convincing evidence 
        to be substantially out of compliance with such regulations.
            (4) Exception.--Paragraph (1) shall not apply in any health 
        care lawsuit in which--
                    (A) a person, before or after premarket approval, 
                clearance, or licensure of such medical product, 
                knowingly misrepresented to or withheld from the Food 
                and Drug Administration information that is required to 
                be submitted under the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 301 et seq.) or section 351 of the 
                Public Health Service Act (42 U.S.C. 262) that is 
                material and is causally related to the harm which the 
                claimant allegedly suffered;
                    (B) a person made an illegal payment to an official 
                of the Food and Drug Administration for the purpose of 
                either securing or maintaining approval, clearance, or 
                licensure of such medical product; or
                    (C) the defendant caused the medical product which 
                caused the claimant's harm to be misbranded or 
                adulterated (as such terms are used in chapter V of the 
                Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351 et 
                seq.)).

SEC. 227. AUTHORIZATION OF PAYMENT OF FUTURE DAMAGES TO CLAIMANTS IN 
              HEALTH CARE LAWSUITS.

    (a) In General.--In any health care lawsuit, if an award of future 
damages, without reduction to present value, equaling or exceeding 
$50,000 is made against a party with sufficient insurance or other 
assets to fund a periodic payment of such a judgment, the court shall, 
at the request of any party, enter a judgment ordering that the future 
damages be paid by periodic payments, in accordance with the Uniform 
Periodic Payment of Judgments Act promulgated by the National 
Conference of Commissioners on Uniform State Laws.
    (b) Applicability.--This section applies to all actions which have 
not been first set for trial or retrial before the effective date of 
this subtitle.

SEC. 228. DEFINITIONS.

    In this subtitle:
            (1) Alternative dispute resolution system; adr.--The term 
        ``alternative dispute resolution system'' or ``ADR'' means a 
        system that provides for the resolution of health care lawsuits 
        in a manner other than through a civil action brought in a 
        State or Federal court.
            (2) Claimant.--The term ``claimant'' means any person who 
        brings a health care lawsuit, including a person who asserts or 
        claims a right to legal or equitable contribution, indemnity, 
        or subrogation, arising out of a health care liability claim or 
        action, and any person on whose behalf such a claim is asserted 
        or such an action is brought, whether deceased, incompetent, or 
        a minor.
            (3) Collateral source benefits.--The term ``collateral 
        source benefits'' means any amount paid or reasonably likely to 
        be paid in the future to or on behalf of the claimant, or any 
        service, product, or other benefit provided or reasonably 
        likely to be provided in the future to or on behalf of the 
        claimant, as a result of the injury or wrongful death, pursuant 
        to--
                    (A) any State or Federal health, sickness, income-
                disability, accident, or workers' compensation law;
                    (B) any health, sickness, income-disability, or 
                accident insurance that provides health benefits or 
                income-disability coverage;
                    (C) any contract or agreement of any group, 
                organization, partnership, or corporation to provide, 
                pay for, or reimburse the cost of medical, hospital, 
                dental, or income-disability benefits; and
                    (D) any other publicly or privately funded program.
            (4) Compensatory damages.--The term ``compensatory 
        damages'' means objectively verifiable monetary losses incurred 
        as a result of the provision of, use of, or payment for (or 
        failure to provide, use, or pay for) health care services or 
        medical products, such as past and future medical expenses, 
        loss of past and future earnings, cost of obtaining domestic 
        services, loss of employment, and loss of business or 
        employment opportunities, damages for physical and emotional 
        pain, suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss of 
        society and companionship, loss of consortium (other than loss 
        of domestic service), hedonic damages, injury to reputation, 
        and all other nonpecuniary losses of any kind or nature. The 
        term ``compensatory damages'' includes economic damages and 
        noneconomic damages, as such terms are defined in this section.
            (5) Contingent fee.--The term ``contingent fee'' includes 
        all compensation to any person or persons which is payable only 
        if a recovery is effected on behalf of one or more claimants.
            (6) Economic damages.--The term ``economic damages'' means 
        objectively verifiable monetary losses incurred as a result of 
        the provision of, use of, or payment for (or failure to 
        provide, use, or pay for) health care services or medical 
        products, such as past and future medical expenses, loss of 
        past and future earnings, cost of obtaining domestic services, 
        loss of employment, and loss of business or employment 
        opportunities.
            (7) Health care lawsuit.--The term ``health care lawsuit'' 
        means any health care liability claim concerning the provision 
        of health care goods or services or any medical product 
        affecting interstate commerce, or any health care liability 
        action concerning the provision of health care goods or 
        services or any medical product affecting interstate commerce, 
        brought in a State or Federal court or pursuant to an 
        alternative dispute resolution system, against a health care 
        provider, a health care organization, or the manufacturer, 
        distributor, supplier, marketer, promoter, or seller of a 
        medical product, regardless of the theory of liability on which 
        the claim is based, or the number of claimants, plaintiffs, 
        defendants, or other parties, or the number of claims or causes 
        of action, in which the claimant alleges a health care 
        liability claim. Such term does not include a claim or action 
        which is based on criminal liability; which seeks civil fines 
        or penalties paid to Federal, State, or local government; or 
        which is grounded in antitrust.
            (8) Health care liability action.--The term ``health care 
        liability action'' means a civil action brought in a State or 
        Federal court or pursuant to an alternative dispute resolution 
        system, against a health care provider, a health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, regardless 
        of the theory of liability on which the claim is based, or the 
        number of plaintiffs, defendants, or other parties, or the 
        number of causes of action, in which the claimant alleges a 
        health care liability claim.
            (9) Health care liability claim.--The term ``health care 
        liability claim'' means a demand by any person, whether or not 
        pursuant to ADR, against a health care provider, health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, including, 
        but not limited to, third-party claims, cross-claims, counter-
        claims, or contribution claims, which are based upon the 
        provision of, use of, or payment for (or the failure to 
        provide, use, or pay for) health care services or medical 
        products, regardless of the theory of liability on which the 
        claim is based, or the number of plaintiffs, defendants, or 
        other parties, or the number of causes of action.
            (10) Health care organization.--The term ``health care 
        organization'' means any person or entity which is obligated to 
        provide or pay for health benefits under any health plan, 
        including any person or entity acting under a contract or 
        arrangement with a health care organization to provide or 
        administer any health benefit.
            (11) Health care provider.--The term ``health care 
        provider'' means any person or entity required by State or 
        Federal laws or regulations to be licensed, registered, or 
        certified to provide health care services, and being either so 
        licensed, registered, or certified, or exempted from such 
        requirement by other statute or regulation.
            (12) Health care goods or services.--The term ``health care 
        goods or services'' means any goods or services provided by a 
        health care organization, provider, or by any individual 
        working under the supervision of a health care provider, that 
        relates to the diagnosis, prevention, or treatment of any human 
        disease or impairment, or the assessment or care of the health 
        of human beings.
            (13) Malicious intent to injure.--The term ``malicious 
        intent to injure'' means intentionally causing or attempting to 
        cause physical injury other than providing health care goods or 
        services.
            (14) Medical product.--The term ``medical product'' means a 
        drug, device, or biological product intended for humans, and 
        the terms ``drug'', ``device'', and ``biological product'' have 
        the meanings given such terms in sections 201(g)(1) and 201(h) 
        of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321(g)(1) 
        and (h)) and section 351(a) of the Public Health Service Act 
        (42 U.S.C. 262(a)), respectively, including any component or 
        raw material used therein, but excluding health care services.
            (15) Noneconomic damages.--The term ``noneconomic damages'' 
        means damages for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation, and all other 
        nonpecuniary losses of any kind or nature.
            (16) Punitive damages.--The term ``punitive damages'' means 
        damages awarded, for the purpose of punishment or deterrence, 
        and not solely for compensatory purposes, against a health care 
        provider, health care organization, or a manufacturer, 
        distributor, or supplier of a medical product. Punitive damages 
        are neither economic nor noneconomic damages.
            (17) Recovery.--The term ``recovery'' means the net sum 
        recovered after deducting any disbursements or costs incurred 
        in connection with prosecution or settlement of the claim, 
        including all costs paid or advanced by any person. Costs of 
        health care incurred by the plaintiff and the attorneys' office 
        overhead costs or charges for legal services are not deductible 
        disbursements or costs for such purpose.
            (18) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the Northern 
        Mariana Islands, the Trust Territory of the Pacific Islands, 
        and any other territory or possession of the United States, or 
        any political subdivision thereof.

SEC. 229. EFFECT ON OTHER LAWS.

    (a) Vaccine Injury.--
            (1) To the extent that title XXI of the Public Health 
        Service Act establishes a Federal rule of law applicable to a 
        civil action brought for a vaccine-related injury or death--
                    (A) this subtitle does not affect the application 
                of the rule of law to such an action; and
                    (B) any rule of law prescribed by this subtitle in 
                conflict with a rule of law of such title XXI shall not 
                apply to such action.
            (2) If there is an aspect of a civil action brought for a 
        vaccine-related injury or death to which a Federal rule of law 
        under title XXI of the Public Health Service Act does not 
        apply, then this subtitle or otherwise applicable law (as 
        determined under this subtitle) will apply to such aspect of 
        such action.
    (b) Other Federal Law.--Except as provided in this section, nothing 
in this subtitle shall be deemed to affect any defense available to a 
defendant in a health care lawsuit or action under any other provision 
of Federal law.

SEC. 230. STATE FLEXIBILITY AND PROTECTION OF STATES' RIGHTS.

    (a) Health Care Lawsuits.--The provisions governing health care 
lawsuits set forth in this subtitle preempt, subject to subsections (b) 
and (c), State law to the extent that State law prevents the 
application of any provisions of law established by or under this 
subtitle. The provisions governing health care lawsuits set forth in 
this subtitle supersede chapter 171 of title 28, United States Code, to 
the extent that such chapter--
            (1) provides for a greater amount of damages or contingent 
        fees, a longer period in which a health care lawsuit may be 
        commenced, or a reduced applicability or scope of periodic 
        payment of future damages, than provided in this subtitle; or
            (2) prohibits the introduction of evidence regarding 
        collateral source benefits, or mandates or permits subrogation 
        or a lien on collateral source benefits.
    (b) Protection of States' Rights and Other Laws.--(1) Any issue 
that is not governed by any provision of law established by or under 
this subtitle (including State standards of negligence) shall be 
governed by otherwise applicable State or Federal law.
    (2) This subtitle shall not preempt or supersede any State or 
Federal law that imposes greater procedural or substantive protections 
for health care providers and health care organizations from liability, 
loss, or damages than those provided by this subtitle or create a cause 
of action.
    (c) State Flexibility.--No provision of this subtitle shall be 
construed to preempt--
            (1) any State law (whether effective before, on, or after 
        the date of the enactment of this subtitle) that specifies a 
        particular monetary amount of compensatory or punitive damages 
        (or the total amount of damages) that may be awarded in a 
        health care lawsuit, regardless of whether such monetary amount 
        is greater or lesser than is provided for under this subtitle, 
        notwithstanding section 223(a); or
            (2) any defense available to a party in a health care 
        lawsuit under any other provision of State or Federal law.

SEC. 231. APPLICABILITY; EFFECTIVE DATE.

    This subtitle shall apply to any health care lawsuit brought in a 
Federal or State court, or subject to an alternative dispute resolution 
system, that is initiated on or after the date of the enactment of this 
subtitle, except that any health care lawsuit arising from an injury 
occurring prior to the date of the enactment of this subtitle shall be 
governed by the applicable statute of limitations provisions in effect 
at the time the injury occurred.

                     TITLE III--FINANCIAL SERVICES

SEC. 301. TABLE OF CONTENTS.

    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.
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.

                  Subtitle A--Orderly Liquidation Fund

SEC. 311. REPEAL OF LIQUIDATION AUTHORITY.

    (a) In General.--Title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is hereby repealed and any Federal law amended 
by such title shall, on and after the date of enactment of this Act, be 
effective as if title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act had not been enacted.
    (b) Conforming Amendments.--
            (1) Dodd-frank wall street reform and consumer protection 
        act.--The Dodd-Frank Wall Street Reform and Consumer Protection 
        Act is amended--
                    (A) in the table of contents for such Act, by 
                striking all items relating to title II;
                    (B) in section 165(d)(6), by striking ``, a 
                receiver appointed under title II,'';
                    (C) in section 716(g), by striking ``or a covered 
                financial company under title II'';
                    (D) in section 1105(e)(5), by striking ``amount of 
                any securities issued under that chapter 31 for such 
                purpose shall be treated in the same manner as 
                securities issued under section 208(n)(5)(E)'' and 
                inserting ``issuances of such securities under that 
                chapter 31 for such purpose shall by treated as public 
                debt transactions of the United States, and the 
                proceeds from the sale of any obligations acquired by 
                the Secretary under this paragraph shall be deposited 
                into the Treasury of the United States as miscellaneous 
                receipts''; and
                    (E) in section 1106(c)(2), by amending subparagraph 
                (A) to read as follows:
                    ``(A) require the company to file a petition for 
                bankruptcy under section 301 of title 11, United States 
                Code; or''.
            (2) Federal deposit insurance act.--Section 10(b)(3) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended 
        by striking ``, or of such nonbank financial company supervised 
        by the Board of Governors or bank holding company described in 
        section 165(a) of the Financial Stability Act of 2010, for the 
        purpose of implementing its authority to provide for orderly 
        liquidation of any such company under title II of that Act''.
            (3) Federal reserve act.--Section 13(3) of the Federal 
        Reserve Act is amended--
                    (A) in subparagraph (B)--
                            (i) in clause (ii), by striking ``, 
                        resolution under title II of the Dodd-Frank 
                        Wall Street Reform and Consumer Protection Act, 
                        or'' and inserting ``or is subject to 
                        resolution under''; and
                            (ii) in clause (iii), by striking ``, 
                        resolution under title II of the Dodd-Frank 
                        Wall Street Reform and Consumer Protection Act, 
                        or'' and inserting ``or resolution under''; and
                    (B) by striking subparagraph (E).

            Subtitle B--Home Affordable Modification Program

SEC. 321. SHORT TITLE.

    This subtitle may be cited as the ``HAMP Termination Act of 2012''.

SEC. 322. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) According to the Department of the Treasury--
                    (A) the Home Affordable Modification Program (HAMP) 
                is designed to ``help as many as 3 to 4 million 
                financially struggling homeowners avoid foreclosure by 
                modifying loans to a level that is affordable for 
                borrowers now and sustainable over the long term''; and
                    (B) as of February 2012, only 782,609 active 
                permanent mortgage modifications were made under HAMP.
            (2) Many homeowners whose HAMP modifications were canceled 
        suffered because they made futile payments and some of those 
        homeowners were even forced into foreclosure.
            (3) The Special Inspector General for TARP reported that 
        HAMP ``benefits only a small portion of distressed homeowners, 
        offers others little more than false hope, and in certain cases 
        causes more harm than good''.
            (4) Approximately $30 billion was obligated by the 
        Department of the Treasury to HAMP, however, approximately only 
        $2.54 billion has been disbursed.
            (5) Terminating HAMP would save American taxpayers 
        approximately $2.84 billion, according to the Congressional 
        Budget Office.

SEC. 323. TERMINATION OF AUTHORITY.

    Section 120 of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5230) is amended by adding at the end the following new 
subsection:
    ``(c) Termination of Authority To Provide New Assistance Under the 
Home Affordable Modification Program.--
            ``(1) In general.--Except as provided under paragraph (2), 
        after the date of the enactment of this subsection the 
        Secretary may not provide any assistance under the Home 
        Affordable Modification Program under the Making Home 
        Affordable initiative of the Secretary, authorized under this 
        Act, on behalf of any homeowner.
            ``(2) Protection of existing obligations on behalf of 
        homeowners already extended an offer to participate in the 
        program.--Paragraph (1) shall not apply with respect to 
        assistance provided on behalf of a homeowner who, before the 
        date of the enactment of this subsection, was extended an offer 
        to participate in the Home Affordable Modification Program on a 
        trial or permanent basis.
            ``(3) Deficit reduction.--
                    ``(A) Use of unobligated funds.--Notwithstanding 
                any other provision of this title, the amounts 
                described in subparagraph (B) shall not be available 
                after the date of the enactment of this subsection for 
                obligation or expenditure under the Home Affordable 
                Modification Program of the Secretary, but should be 
                covered into the General Fund of the Treasury and 
                should be used only for reducing the budget deficit of 
                the Federal Government.
                    ``(B) Identification of unobligated funds.--The 
                amounts described in this subparagraph are any amounts 
                made available under title I of the Emergency Economic 
                Stabilization Act of 2008 that--
                            ``(i) have been allocated for use, but not 
                        yet obligated as of the date of the enactment 
                        of this subsection, under the Home Affordable 
                        Modification Program of the Secretary; and
                            ``(ii) are not necessary for providing 
                        assistance under such Program on behalf of 
                        homeowners who, pursuant to paragraph (2), may 
                        be provided assistance after the date of the 
                        enactment of this subsection.
            ``(4) Study of use of program by members of the armed 
        forces, veterans, and gold star recipients.--
                    ``(A) Study.--The Secretary shall conduct a study 
                to determine the extent of usage of the Home Affordable 
                Modification Program by, and the impact of such Program 
                on, covered homeowners.
                    ``(B) Report.--Not later than the expiration of the 
                90-day period beginning on the date of the enactment of 
                this subsection, the Secretary shall submit to the 
                Congress a report setting forth the results of the 
                study under subparagraph (A) and identifying best 
                practices, derived from studying the Home Affordable 
                Modification Program, that could be applied to existing 
                mortgage assistance programs available to covered 
                homeowners.
                    ``(C) Covered homeowner.--For purposes of this 
                subsection, the term `covered homeowner' means a 
                homeowner who is--
                            ``(i) a member of the Armed Forces of the 
                        United States on active duty or the spouse or 
                        parent of such a member;
                            ``(ii) a veteran, as such term is defined 
                        in section 101 of title 38, United States Code; 
                        or
                            ``(iii) eligible to receive a Gold Star 
                        lapel pin under section 1126 of title 10, 
                        United States Code, as a widow, parent, or next 
                        of kin of a member of the Armed Forces person 
                        who died in a manner described in subsection 
                        (a) of such section.
            ``(5) Publication of member availability for assistance.--
        Not later than 5 days after the date of the enactment of this 
        subsection, the Secretary of the Treasury shall publish to its 
        Website on the World Wide Web in a prominent location, large 
        point font, and boldface type the following statement: `The 
        Home Affordable Modification Program (HAMP) has been 
        terminated. If you are having trouble paying your mortgage and 
        need help contacting your lender or servicer for purposes of 
        negotiating or acquiring a loan modification, please contact 
        your Member of Congress to assist you in contacting your lender 
        or servicer for the purpose of negotiating or acquiring a loan 
        modification.'.
            ``(6) Notification to hamp applicants required.--Not later 
        than 30 days after the date of the enactment of this 
        subsection, the Secretary of the Treasury shall inform each 
        individual who applied for the Home Affordable Modification 
        Program and will not be considered for a modification under 
        such Program due to termination of such Program under this 
        subsection--
                    ``(A) that such Program has been terminated;
                    ``(B) that loan modifications under such Program 
                are no longer available;
                    ``(C) of the name and contact information of such 
                individual's Member of Congress; and
                    ``(D) that the individual should contact his or her 
                Member of Congress to assist the individual in 
                contacting the individual's lender or servicer for the 
                purpose of negotiating or acquiring a loan 
                modification.''.

SEC. 324. SENSE OF CONGRESS.

    The Congress encourages banks to work with homeowners to provide 
loan modifications to those that are eligible. The Congress also 
encourages banks to work and assist homeowners and prospective 
homeowners with foreclosure prevention programs and information on loan 
modifications.

          Subtitle C--Bureau of Consumer Financial Protection

SEC. 331. BRINGING THE BUREAU OF CONSUMER FINANCIAL PROTECTION INTO THE 
              REGULAR APPROPRIATIONS PROCESS.

    Section 1017 of the Consumer Financial Protection Act of 2010 is 
amended--
            (1) in subsection (a)--
                    (A) by amending the heading of such subsection to 
                read as follows: ``Budget, Financial Management, and 
                Audit.--'';
                    (B) by striking paragraphs (1), (2), and (3);
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (1) and (2), respectively; and
                    (D) by striking subparagraphs (E) and (F) of 
                paragraph (1), as so redesignated;
            (2) by striking subsections (b), (c), and (d);
            (3) by redesignating subsection (e) as subsection (b); and
            (4) in subsection (b), as so redesignated--
                    (A) by striking paragraphs (1), (2), and (3) and 
                inserting the following:
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated $200,000,000 to carry out this title for 
        each of fiscal years 2012 and 2013.''; and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).

                   Subtitle D--Flood Insurance Reform

SEC. 341. SHORT TITLE.

    This subtitle may be cited as the ``Flood Insurance Reform Act of 
2012''.

SEC. 342. EXTENSIONS.

    (a) Extension of Program.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking ``the 
earlier of the date of the enactment into law of an Act that 
specifically amends the date specified in this section or May 31, 
2012'' and inserting ``September 30, 2016''.
    (b) Extension of Financing.--Section 1309(a) of such Act (42 U.S.C. 
4016(a)) is amended by striking ``the earlier of the date of the 
enactment into law of an Act that specifically amends the date 
specified in this section or May 31, 2012'' and inserting ``September 
30, 2016''.

SEC. 343. MANDATORY PURCHASE.

    (a) Authority To Temporarily Suspend Mandatory Purchase 
Requirement.--
            (1) In general.--Section 102 of the Flood Disaster 
        Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding 
        at the end the following new subsection:
    ``(i) Authority To Temporarily Suspend Mandatory Purchase 
Requirement.--
            ``(1) Finding by administrator that area is an eligible 
        area.--For any area, upon a request submitted to the 
        Administrator by a local government authority having 
        jurisdiction over any portion of the area, the Administrator 
        shall make a finding of whether the area is an eligible area 
        under paragraph (3). If the Administrator finds that such area 
        is an eligible area, the Administrator shall, in the discretion 
        of the Administrator, designate a period during which such 
        finding shall be effective, which shall not be longer in 
        duration than 12 months.
            ``(2) Suspension of mandatory purchase requirement.--If the 
        Administrator makes a finding under paragraph (1) that an area 
        is an eligible area under paragraph (3), during the period 
        specified in the finding, the designation of such eligible area 
        as an area having special flood hazards shall not be effective 
        for purposes of subsections (a), (b), and (e) of this section, 
        and section 202(a) of this Act. Nothing in this paragraph may 
        be construed to prevent any lender, servicer, regulated lending 
        institution, Federal agency lender, the Federal National 
        Mortgage Association, or the Federal Home Loan Mortgage 
        Corporation, at the discretion of such entity, from requiring 
        the purchase of flood insurance coverage in connection with the 
        making, increasing, extending, or renewing of a loan secured by 
        improved real estate or a mobile home located or to be located 
        in such eligible area during such period or a lender or 
        servicer from purchasing coverage on behalf of a borrower 
        pursuant to subsection (e).
            ``(3) Eligible areas.--An eligible area under this 
        paragraph is an area that is designated or will, pursuant to 
        any issuance, revision, updating, or other change in flood 
        insurance maps that takes effect on or after the date of the 
        enactment of the Flood Insurance Reform Act of 2012, become 
        designated as an area having special flood hazards and that 
        meets any one of the following 3 requirements:
                    ``(A) Areas with no history of special flood 
                hazards.--The area does not include any area that has 
                ever previously been designated as an area having 
                special flood hazards.
                    ``(B) Areas with flood protection systems under 
                improvements.--The area was intended to be protected by 
                a flood protection system--
                            ``(i) that has been decertified, or is 
                        required to be certified, as providing 
                        protection for the 100-year frequency flood 
                        standard;
                            ``(ii) that is being improved, constructed, 
                        or reconstructed; and
                            ``(iii) for which the Administrator has 
                        determined measurable progress toward 
                        completion of such improvement, construction, 
                        reconstruction is being made and toward 
                        securing financial commitments sufficient to 
                        fund such completion.
                    ``(C) Areas for which appeal has been filed.--An 
                area for which a community has appealed designation of 
                the area as having special flood hazards in a timely 
                manner under section 1363.
            ``(4) Extension of delay.--Upon a request submitted by a 
        local government authority having jurisdiction over any portion 
        of the eligible area, the Administrator may extend the period 
        during which a finding under paragraph (1) shall be effective, 
        except that--
                    ``(A) each such extension under this paragraph 
                shall not be for a period exceeding 12 months; and
                    ``(B) for any area, the cumulative number of such 
                extensions may not exceed 2.
            ``(5) Additional extension for communities making more than 
        adequate progress on flood protection system.--
                    ``(A) Extension.--
                            ``(i) Authority.--Except as provided in 
                        subparagraph (B), in the case of an eligible 
                        area for which the Administrator has, pursuant 
                        to paragraph (4), extended the period of 
                        effectiveness of the finding under paragraph 
                        (1) for the area, upon a request submitted by a 
                        local government authority having jurisdiction 
                        over any portion of the eligible area, if the 
                        Administrator finds that more than adequate 
                        progress has been made on the construction of a 
                        flood protection system for such area, as 
                        determined in accordance with the last sentence 
                        of section 1307(e) of the National Flood 
                        Insurance Act of 1968 (42 U.S.C. 4014(e)), the 
                        Administrator may, in the discretion of the 
                        Administrator, further extend the period during 
                        which the finding under paragraph (1) shall be 
                        effective for such area for an additional 12 
                        months.
                            ``(ii) Limit.--For any eligible area, the 
                        cumulative number of extensions under this 
                        subparagraph may not exceed 2.
                    ``(B) Exclusion for new mortgages.--
                            ``(i) Exclusion.--Any extension under 
                        subparagraph (A) of this paragraph of a finding 
                        under paragraph (1) shall not be effective with 
                        respect to any excluded property after the 
                        origination, increase, extension, or renewal of 
                        the loan referred to in clause (ii)(II) for the 
                        property.
                            ``(ii) Excluded properties.--For purposes 
                        of this subparagraph, the term `excluded 
                        property' means any improved real estate or 
                        mobile home--
                                    ``(I) that is located in an 
                                eligible area; and
                                    ``(II) for which, during the period 
                                that any extension under subparagraph 
                                (A) of this paragraph of a finding 
                                under paragraph (1) is otherwise in 
                                effect for the eligible area in which 
                                such property is located--
                                            ``(aa) a loan that is 
                                        secured by the property is 
                                        originated; or
                                            ``(bb) any existing loan 
                                        that is secured by the property 
                                        is increased, extended, or 
                                        renewed.
            ``(6) Rule of construction.--Nothing in this subsection may 
        be construed to affect the applicability of a designation of 
        any area as an area having special flood hazards for purposes 
        of the availability of flood insurance coverage, criteria for 
        land management and use, notification of flood hazards, 
        eligibility for mitigation assistance, or any other purpose or 
        provision not specifically referred to in paragraph (2).
            ``(7) Reports.--The Administrator shall, in each annual 
        report submitted pursuant to section 1320, include information 
        identifying each finding under paragraph (1) by the 
        Administrator during the preceding year that an area is an area 
        having special flood hazards, the basis for each such finding, 
        any extensions pursuant to paragraph (4) of the periods of 
        effectiveness of such findings, and the reasons for such 
        extensions.''.
            (2) No refunds.--Nothing in this subsection or the 
        amendments made by this subsection may be construed to 
        authorize or require any payment or refund for flood insurance 
        coverage purchased for any property that covered any period 
        during which such coverage is not required for the property 
        pursuant to the applicability of the amendment made by 
        paragraph (1).
    (b) Termination of Force-Placed Insurance.--Section 102(e) of the 
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended--
            (1) in paragraph (2), by striking ``insurance.'' and 
        inserting ``insurance, including premiums or fees incurred for 
        coverage beginning on the date on which flood insurance 
        coverage lapsed or did not provide a sufficient coverage 
        amount.'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and 6), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraphs:
            ``(3) Termination of force-placed insurance.--Within 30 
        days of receipt by the lender or servicer of a confirmation of 
        a borrower's existing flood insurance coverage, the lender or 
        servicer shall--
                    ``(A) terminate the force-placed insurance; and
                    ``(B) refund to the borrower all force-placed 
                insurance premiums paid by the borrower during any 
                period during which the borrower's flood insurance 
                coverage and the force-placed flood insurance coverage 
                were each in effect, and any related fees charged to 
                the borrower with respect to the force-placed insurance 
                during such period.
            ``(4) Sufficiency of demonstration.--For purposes of 
        confirming a borrower's existing flood insurance coverage, a 
        lender or servicer for a loan shall accept from the borrower an 
        insurance policy declarations page that includes the existing 
        flood insurance policy number and the identity of, and contact 
        information for, the insurance company or agent.''.
    (c) Use of Private Insurance to Satisfy Mandatory Purchase 
Requirement.--Section 102(b) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``lending institutions not to 
                make'' and inserting ``lending institutions--
                    ``(A) not to make'';
                    (B) in subparagraph (A), as designated by 
                subparagraph (A) of this paragraph, by striking 
                ``less.'' and inserting ``less; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) to accept private flood insurance as 
                satisfaction of the flood insurance coverage 
                requirement under subparagraph (A) if the coverage 
                provided by such private flood insurance meets the 
                requirements for coverage under such subparagraph.'';
            (2) in paragraph (2), by inserting after ``provided in 
        paragraph (1).'' the following new sentence: ``Each Federal 
        agency lender shall accept private flood insurance as 
        satisfaction of the flood insurance coverage requirement under 
        the preceding sentence if the flood insurance coverage provided 
        by such private flood insurance meets the requirements for 
        coverage under such sentence.'';
            (3) in paragraph (3), in the matter following subparagraph 
        (B), by adding at the end the following new sentence: ``The 
        Federal National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation shall accept private flood insurance as 
        satisfaction of the flood insurance coverage requirement under 
        the preceding sentence if the flood insurance coverage provided 
        by such private flood insurance meets the requirements for 
        coverage under such sentence.''; and
            (4) by adding at the end the following new paragraph:
            ``(5) Private flood insurance defined.--In this subsection, 
        the term `private flood insurance' means a contract for flood 
        insurance coverage allowed for sale under the laws of any 
        State.''.

SEC. 344. REFORMS OF COVERAGE TERMS.

    (a) Minimum Deductibles for Claims.--Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended--
            (1) by striking ``The Director is'' and inserting the 
        following: ``(a) In General.--The Administrator is''; and
            (2) by adding at the end the following:
    ``(b) Minimum Annual Deductibles.--
            ``(1) Subsidized rate properties.--For any structure that 
        is covered by flood insurance under this title, and for which 
        the chargeable rate for such coverage is less than the 
        applicable estimated risk premium rate under section 1307(a)(1) 
        for the area (or subdivision thereof) in which such structure 
        is located, the minimum annual deductible for damage to or loss 
        of such structure shall be $2,000.
            ``(2) Actuarial rate properties.--For any structure that is 
        covered by flood insurance under this title, for which the 
        chargeable rate for such coverage is not less than the 
        applicable estimated risk premium rate under section 1307(a)(1) 
        for the area (or subdivision thereof) in which such structure 
        is located, the minimum annual deductible for damage to or loss 
        of such structure shall be $1,000.''.
    (b) Clarification of Residential and Commercial Coverage Limits.--
Section 1306(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4013(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``in the case of any residential 
                property'' and inserting ``in the case of any 
                residential building designed for the occupancy of from 
                one to four families''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance 
                so as to enable such insured or applicant to receive 
                coverage up to a total amount (including such limits 
                specified in paragraph (1)(A)(i)) of $250,000'' and 
                inserting ``shall be made available, with respect to 
                any single such building, up to an aggregate liability 
                (including such limits specified in paragraph 
                (1)(A)(i)) of $250,000''; and
            (2) in paragraph (4)--
                    (A) by striking ``in the case of any nonresidential 
                property, including churches,'' and inserting ``in the 
                case of any nonresidential building, including a 
                church,''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance, 
                in respect to any single structure, up to a total 
                amount (including such limit specified in subparagraph 
                (B) or (C) of paragraph (1), as applicable) of $500,000 
                for each structure and $500,000 for any contents 
                related to each structure'' and inserting ``shall be 
                made available with respect to any single such 
                building, up to an aggregate liability (including such 
                limits specified in subparagraph (B) or (C) of 
                paragraph (1), as applicable) of $500,000, and coverage 
                shall be made available up to a total of $500,000 
                aggregate liability for contents owned by the building 
                owner and $500,000 aggregate liability for each unit 
                within the building for contents owned by the tenant''.
    (c) Indexing of Maximum Coverage Limits.--Subsection (b) of section 
1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is 
amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and'';
            (3) by redesignating paragraph (5) as paragraph (7); and
            (4) by adding at the end the following new paragraph:
            ``(8) each of the dollar amount limitations under 
        paragraphs (2), (3), (4), (5), and (6) shall be adjusted 
        effective on the date of the enactment of the Flood Insurance 
        Reform Act of 2012, such adjustments shall be calculated using 
        the percentage change, over the period beginning on September 
        30, 1994, and ending on such date of enactment, in such 
        inflationary index as the Administrator shall, by regulation, 
        specify, and the dollar amount of such adjustment shall be 
        rounded to the next lower dollar; and the Administrator shall 
        cause to be published in the Federal Register the adjustments 
        under this paragraph to such dollar amount limitations; except 
        that in the case of coverage for a property that is made 
        available, pursuant to this paragraph, in an amount that 
        exceeds the limitation otherwise applicable to such coverage as 
        specified in paragraph (2), (3), (4), (5), or (6), the total of 
        such coverage shall be made available only at chargeable rates 
        that are not less than the estimated premium rates for such 
        coverage determined in accordance with section 1307(a)(1).''.
    (d) Optional Coverage for Loss of Use of Personal Residence and 
Business Interruption.--Subsection (b) of section 1306 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(b)), as amended by the 
preceding provisions of this section, is further amended by inserting 
after paragraph (4) the following new paragraphs:
            ``(5) the Administrator may provide that, in the case of 
        any residential property, each renewal or new contract for 
        flood insurance coverage may provide not more than $5,000 
        aggregate liability per dwelling unit for any necessary 
        increases in living expenses incurred by the insured when 
        losses from a flood make the residence unfit to live in, except 
        that--
                    ``(A) purchase of such coverage shall be at the 
                option of the insured;
                    ``(B) any such coverage shall be made available 
                only at chargeable rates that are not less than the 
                estimated premium rates for such coverage determined in 
                accordance with section 1307(a)(1); and
                    ``(C) the Administrator may make such coverage 
                available only if the Administrator makes a 
                determination and causes notice of such determination 
                to be published in the Federal Register that--
                            ``(i) a competitive private insurance 
                        market for such coverage does not exist; and
                            ``(ii) the national flood insurance program 
                        has the capacity to make such coverage 
                        available without borrowing funds from the 
                        Secretary of the Treasury under section 1309 or 
                        otherwise;
            ``(6) the Administrator may provide that, in the case of 
        any commercial property or other residential property, 
        including multifamily rental property, coverage for losses 
        resulting from any partial or total interruption of the 
        insured's business caused by damage to, or loss of, such 
        property from a flood may be made available to every insured 
        upon renewal and every applicant, up to a total amount of 
        $20,000 per property, except that--
                    ``(A) purchase of such coverage shall be at the 
                option of the insured;
                    ``(B) any such coverage shall be made available 
                only at chargeable rates that are not less than the 
                estimated premium rates for such coverage determined in 
                accordance with section 1307(a)(1); and
                    ``(C) the Administrator may make such coverage 
                available only if the Administrator makes a 
                determination and causes notice of such determination 
                to be published in the Federal Register that--
                            ``(i) a competitive private insurance 
                        market for such coverage does not exist; and
                            ``(ii) the national flood insurance program 
                        has the capacity to make such coverage 
                        available without borrowing funds from the 
                        Secretary of the Treasury under section 1309 or 
                        otherwise;''.
    (e) Payment of Premiums in Installments for Residential 
Properties.--Section 1306 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013) is amended by adding at the end the following new 
subsection:
    ``(d) Payment of Premiums in Installments for Residential 
Properties.--
            ``(1) Authority.--In addition to any other terms and 
        conditions under subsection (a), such regulations shall provide 
        that, in the case of any residential property, premiums for 
        flood insurance coverage made available under this title for 
        such property may be paid in installments.
            ``(2) Limitations.--In implementing the authority under 
        paragraph (1), the Administrator may establish increased 
        chargeable premium rates and surcharges, and deny coverage and 
        establish such other sanctions, as the Administrator considers 
        necessary to ensure that insureds purchase, pay for, and 
        maintain coverage for the full term of a contract for flood 
        insurance coverage or to prevent insureds from purchasing 
        coverage only for periods during a year when risk of flooding 
        is comparatively higher or canceling coverage for periods when 
        such risk is comparatively lower.''.
    (f) Effective Date of Policies Covering Properties Affected by 
Floods in Progress.--Paragraph (1) of section 1306(c) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(c)) is amended by adding 
after the period at the end the following: ``With respect to any flood 
that has commenced or is in progress before the expiration of such 30-
day period, such flood insurance coverage for a property shall take 
effect upon the expiration of such 30-day period and shall cover damage 
to such property occurring after the expiration of such period that 
results from such flood, but only if the property has not suffered 
damage or loss as a result of such flood before the expiration of such 
30-day period.''.

SEC. 345. REFORMS OF PREMIUM RATES.

    (a) Increase in Annual Limitation on Premium Increases.--Section 
1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) 
is amended by striking ``10 percent'' and inserting ``20 percent''.
    (b) Phase-In of Rates for Certain Properties in Newly Mapped 
Areas.--
            (1) In general.--Section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by inserting ``or notice'' after 
                ``prescribe by regulation'';
                    (B) in subsection (c), by inserting ``and 
                subsection (g)'' before the first comma; and
                    (C) by adding at the end the following new 
                subsection:
    ``(g) 5-Year Phase-In of Flood Insurance Rates for Certain 
Properties in Newly Mapped Areas.--
            ``(1) 5-year phase-in period.--Notwithstanding subsection 
        (c) or any other provision of law relating to chargeable risk 
        premium rates for flood insurance coverage under this title, in 
        the case of any area that was not previously designated as an 
        area having special flood hazards and that, pursuant to any 
        issuance, revision, updating, or other change in flood 
        insurance maps, becomes designated as such an area, during the 
        5-year period that begins, except as provided in paragraph (2), 
        upon the date that such maps, as issued, revised, updated, or 
        otherwise changed, become effective, the chargeable premium 
        rate for flood insurance under this title with respect to any 
        covered property that is located within such area shall be the 
        rate described in paragraph (3).
            ``(2) Applicability to preferred risk rate areas.--In the 
        case of any area described in paragraph (1) that consists of or 
        includes an area that, as of date of the effectiveness of the 
        flood insurance maps for such area referred to in paragraph (1) 
        as so issued, revised, updated, or changed, is eligible for any 
        reason for preferred risk rate method premiums for flood 
        insurance coverage and was eligible for such premiums as of the 
        enactment of the Flood Insurance Reform Act of 2012, the 5-year 
        period referred to in paragraph (1) for such area eligible for 
        preferred risk rate method premiums shall begin upon the 
        expiration of the period during which such area is eligible for 
        such preferred risk rate method premiums.
            ``(3) Phase-in of full actuarial rates.--With respect to 
        any area described in paragraph (1), the chargeable risk 
        premium rate for flood insurance under this title for a covered 
        property that is located in such area shall be--
                    ``(A) for the first year of the 5-year period 
                referred to in paragraph (1), the greater of--
                            ``(i) 20 percent of the chargeable risk 
                        premium rate otherwise applicable under this 
                        title to the property; and
                            ``(ii) in the case of any property that, as 
                        of the beginning of such first year, is 
                        eligible for preferred risk rate method 
                        premiums for flood insurance coverage, such 
                        preferred risk rate method premium for the 
                        property;
                    ``(B) for the second year of such 5-year period, 40 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(C) for the third year of such 5-year period, 60 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(D) for the fourth year of such 5-year period, 80 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property; and
                    ``(E) for the fifth year of such 5-year period, 100 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property.
            ``(4) Covered properties.--For purposes of the subsection, 
        the term `covered property' means any residential property 
        occupied by its owner or a bona fide tenant as a primary 
        residence.''.
            (2) Regulation or notice.--The Administrator of the Federal 
        Emergency Management Agency shall issue an interim final rule 
        or notice to implement this subsection and the amendments made 
        by this subsection as soon as practicable after the date of the 
        enactment of this Act.
    (c) Phase-In of Actuarial Rates for Certain Properties.--
            (1) In general.--Section 1308(c) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (7); and
                    (B) by inserting after paragraph (1) the following 
                new paragraphs:
            ``(2) Commercial properties.--Any nonresidential property.
            ``(3) Second homes and vacation homes.--Any residential 
        property that is not the primary residence of any individual.
            ``(4) Homes sold to new owners.--Any single family property 
        that--
                    ``(A) has been constructed or substantially 
                improved and for which such construction or improvement 
                was started, as determined by the Administrator, before 
                December 31, 1974, or before the effective date of the 
                initial rate map published by the Administrator under 
                paragraph (2) of section 1360(a) for the area in which 
                such property is located, whichever is later; and
                    ``(B) is purchased after the effective date of this 
                paragraph, pursuant to section 345(c)(3)(A) of the 
                Flood Insurance Reform Act of 2012.
            ``(5) Homes damaged or improved.--Any property that, on or 
        after the date of the enactment of the Flood Insurance Reform 
        Act of 2012, has experienced or sustained--
                    ``(A) substantial flood damage exceeding 50 percent 
                of the fair market value of such property; or
                    ``(B) substantial improvement exceeding 30 percent 
                of the fair market value of such property.
            ``(6) Homes with multiple claims.--Any severe repetitive 
        loss property (as such term is defined in section 1366(j)).''.
            (2) Technical amendments.--Section 1308 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--
                    (A) in subsection (c)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``the limitations provided under 
                        paragraphs (1) and (2)'' and inserting 
                        ``subsection (e)''; and
                            (ii) in paragraph (1), by striking ``, 
                        except'' and all that follows through 
                        ``subsection (e)''; and
                    (B) in subsection (e), by striking ``paragraph (2) 
                or (3)'' and inserting ``paragraph (7)''.
            (3) Effective date and transition.--
                    (A) Effective date.--The amendments made by 
                paragraphs (1) and (2) shall apply beginning upon the 
                expiration of the 12-month period that begins on the 
                date of the enactment of this Act, except as provided 
                in subparagraph (B) of this paragraph.
                    (B) Transition for properties covered by flood 
                insurance upon effective date.--
                            (i) Increase of rates over time.--In the 
                        case of any property described in paragraph 
                        (2), (3), (4), (5), or (6) of section 1308(c) 
                        of the National Flood Insurance Act of 1968, as 
                        amended by paragraph (1) of this subsection, 
                        that, as of the effective date under 
                        subparagraph (A) of this paragraph, is covered 
                        under a policy for flood insurance made 
                        available under the national flood insurance 
                        program for which the chargeable premium rates 
                        are less than the applicable estimated risk 
                        premium rate under section 1307(a)(1) of such 
                        Act for the area in which the property is 
                        located, the Administrator of the Federal 
                        Emergency Management Agency shall increase the 
                        chargeable premium rates for such property over 
                        time to such applicable estimated risk premium 
                        rate under section 1307(a)(1).
                            (ii) Amount of annual increase.--Such 
                        increase shall be made by increasing the 
                        chargeable premium rates for the property 
                        (after application of any increase in the 
                        premium rates otherwise applicable to such 
                        property), once during the 12-month period that 
                        begins upon the effective date under 
                        subparagraph (A) of this paragraph and once 
                        every 12 months thereafter until such increase 
                        is accomplished, by 20 percent (or such lesser 
                        amount as may be necessary so that the 
                        chargeable rate does not exceed such applicable 
                        estimated risk premium rate or to comply with 
                        clause (iii)).
                            (iii) Properties subject to phase-in and 
                        annual increases.--In the case of any pre-FIRM 
                        property (as such term is defined in section 
                        578(b) of the National Flood Insurance Reform 
                        Act of 1974), the aggregate increase, during 
                        any 12-month period, in the chargeable premium 
                        rate for the property that is attributable to 
                        this subparagraph or to an increase described 
                        in section 1308(e) of the National Flood 
                        Insurance Act of 1968 may not exceed 20 
                        percent.
                            (iv) Full actuarial rates.--The provisions 
                        of paragraphs (2), (3), (4), (5), and (6) of 
                        such section 1308(c) shall apply to such a 
                        property upon the accomplishment of the 
                        increase under this subparagraph and 
                        thereafter.
    (d) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by the preceding provisions of this subtitle, 
is further amended--
            (1) in subsection (e), by inserting ``or subsection (h)'' 
        after ``subsection (c)''; and
            (2) by adding at the end the following new subsection:
    ``(h) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--Notwithstanding any other provision of law relating to 
chargeable risk premium rates for flood insurance coverage under this 
title, the Administrator shall not provide flood insurance coverage 
under this title for any property for which a policy for such coverage 
for the property has previously lapsed in coverage as a result of the 
deliberate choice of the holder of such policy, at a rate less than the 
applicable estimated risk premium rates for the area (or subdivision 
thereof) in which such property is located.''.
    (e) Recognition of State and Local Funding for Construction, 
Reconstruction, and Improvement of Flood Protection Systems in 
Determination of Rates.--
            (1) In general.--Section 1307 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (e)--
                            (i) in the first sentence, by striking 
                        ``construction of a flood protection system'' 
                        and inserting ``construction, reconstruction, 
                        or improvement of a flood protection system 
                        (without respect to the level of Federal 
                        investment or participation)''; and
                            (ii) in the second sentence--
                                    (I) by striking ``construction of a 
                                flood protection system'' and inserting 
                                ``construction, reconstruction, or 
                                improvement of a flood protection 
                                system''; and
                                    (II) by inserting ``based on the 
                                present value of the completed system'' 
                                after ``has been expended''; and
                    (B) in subsection (f)--
                            (i) in the first sentence in the matter 
                        preceding paragraph (1), by inserting 
                        ``(without respect to the level of Federal 
                        investment or participation)'' before the 
                        period at the end;
                            (ii) in the third sentence in the matter 
                        preceding paragraph (1), by inserting ``, 
                        whether coastal or riverine,'' after ``special 
                        flood hazard''; and
                            (iii) in paragraph (1), by striking ``a 
                        Federal agency in consultation with the local 
                        project sponsor'' and inserting ``the entity or 
                        entities that own, operate, maintain, or repair 
                        such system''.
            (2) Regulations.--The Administrator of the Federal 
        Emergency Management Agency shall promulgate regulations to 
        implement this subsection and the amendments made by this 
        subsection as soon as practicable, but not more than 18 months 
        after the date of the enactment of this Act. Paragraph (3) may 
        not be construed to annul, alter, affect, authorize any waiver 
        of, or establish any exception to, the requirement under the 
        preceding sentence.

SEC. 346. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of--
                    (A) the Administrator of the Federal Emergency 
                Management Agency (in this section referred to as the 
                ``Administrator''), or the designee thereof;
                    (B) the Director of the United States Geological 
                Survey of the Department of the Interior, or the 
                designee thereof;
                    (C) the Under Secretary of Commerce for Oceans and 
                Atmosphere, or the designee thereof;
                    (D) the commanding officer of the United States 
                Army Corps of Engineers, or the designee thereof;
                    (E) the chief of the Natural Resources Conservation 
                Service of the Department of Agriculture, or the 
                designee thereof;
                    (F) the Director of the United States Fish and 
                Wildlife Service of the Department of the Interior, or 
                the designee thereof;
                    (G) the Assistant Administrator for Fisheries of 
                the National Oceanic and Atmospheric Administration of 
                the Department of Commerce, or the designee thereof; 
                and
                    (H) 14 additional members to be appointed by the 
                Administrator of the Federal Emergency Management 
                Agency, who shall be--
                            (i) an expert in data management;
                            (ii) an expert in real estate;
                            (iii) an expert in insurance;
                            (iv) a member of a recognized regional 
                        flood and storm water management organization;
                            (v) a representative of a State emergency 
                        management agency or association or 
                        organization for such agencies;
                            (vi) a member of a recognized professional 
                        surveying association or organization;
                            (vii) a member of a recognized professional 
                        mapping association or organization;
                            (viii) a member of a recognized 
                        professional engineering association or 
                        organization;
                            (ix) a member of a recognized professional 
                        association or organization representing flood 
                        hazard determination firms;
                            (x) a representative of State national 
                        flood insurance coordination offices;
                            (xi) representatives of two local 
                        governments, at least one of whom is a local 
                        levee flood manager or executive, designated by 
                        the Federal Emergency Management Agency as 
                        Cooperating Technical Partners; and
                            (xii) representatives of two State 
                        governments designated by the Federal Emergency 
                        Management Agency as Cooperating Technical 
                        States.
            (2) Qualifications.--Members of the Council shall be 
        appointed based on their demonstrated knowledge and competence 
        regarding surveying, cartography, remote sensing, geographic 
        information systems, or the technical aspects of preparing and 
        using flood insurance rate maps. In appointing members under 
        paragraph (1)(H), the Administrator shall ensure that the 
        membership of the Council has a balance of Federal, State, 
        local, and private members, and includes an adequate number of 
        representatives from the States with coastline on the Gulf of 
        Mexico and other States containing areas identified by the 
        Administrator of the Federal Emergency Management Agency as at 
        high-risk for flooding or special flood hazard areas.
    (c) Duties.--
            (1) New mapping standards.--Not later than the expiration 
        of the 12-month period beginning upon the date of the enactment 
        of this Act, the Council shall develop and submit to the 
        Administrator and the Congress proposed new mapping standards 
        for 100-year flood insurance rate maps used under the national 
        flood insurance program under the National Flood Insurance Act 
        of 1968. In developing such proposed standards the Council 
        shall--
                    (A) ensure that the flood insurance rate maps 
                reflect true risk, including graduated risk that better 
                reflects the financial risk to each property; such 
                reflection of risk should be at the smallest geographic 
                level possible (but not necessarily property-by-
                property) to ensure that communities are mapped in a 
                manner that takes into consideration different risk 
                levels within the community;
                    (B) ensure the most efficient generation, display, 
                and distribution of flood risk data, models, and maps 
                where practicable through dynamic digital environments 
                using spatial database technology and the Internet;
                    (C) ensure that flood insurance rate maps reflect 
                current hydrologic and hydraulic data, current land 
                use, and topography, incorporating the most current and 
                accurate ground and bathymetric elevation data;
                    (D) determine the best ways to include in such 
                flood insurance rate maps levees, decertified levees, 
                and areas located below dams, including determining a 
                methodology for ensuring that decertified levees and 
                other protections are included in flood insurance rate 
                maps and their corresponding flood zones reflect the 
                level of protection conferred;
                    (E) consider how to incorporate restored wetlands 
                and other natural buffers into flood insurance rate 
                maps, which may include wetlands, groundwater recharge 
                areas, erosion zones, meander belts, endangered species 
                habitat, barrier islands and shoreline buffer features, 
                riparian forests, and other features;
                    (F) consider whether to use vertical positioning 
                (as defined by the Administrator) for flood insurance 
                rate maps;
                    (G) ensure that flood insurance rate maps 
                differentiate between a property that is located in a 
                flood zone and a structure located on such property 
                that is not at the same risk level for flooding as such 
                property due to the elevation of the structure;
                    (H) ensure that flood insurance rate maps take into 
                consideration the best scientific data and potential 
                future conditions (including projections for sea level 
                rise); and
                    (I) consider how to incorporate the new standards 
                proposed pursuant to this paragraph in existing mapping 
                efforts.
            (2) Ongoing duties.--The Council shall, on an ongoing 
        basis, review the mapping protocols developed pursuant to 
        paragraph (1), and make recommendations to the Administrator 
        when the Council determines that mapping protocols should be 
        altered.
            (3) Meetings.--In carrying out its duties under this 
        section, the Council shall consult with stakeholders through at 
        least 4 public meetings annually, and shall seek input of all 
        stakeholder interests including State and local 
        representatives, environmental and conservation organizations, 
        insurance industry representatives, advocacy groups, planning 
        organizations, and mapping organizations.
    (d) Prohibition on Compensation.--Members of the Council shall 
receive no additional compensation by reason of their service on the 
Council.
    (e) Chairperson.--The Administrator shall serve as the Chairperson 
of the Council.
    (f) Staff.--
            (1) FEMA.--Upon the request of the Council, the 
        Administrator may detail, on a nonreimbursable basis, personnel 
        of the Federal Emergency Management Agency to assist the 
        Council in carrying out its duties.
            (2) Other federal agencies.--Upon request of the Council, 
        any other Federal agency that is a member of the Council may 
        detail, on a non-reimbursable basis, personnel to assist the 
        Council in carrying out its duties.
    (g) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as the Council considers appropriate.
    (h) Termination.--The Council shall terminate upon the expiration 
of the 5-year period beginning on the date of the enactment of this 
Act.
    (i) Moratorium on Flood Map Changes.--
            (1) Moratorium.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of this subtitle, the 
        National Flood Insurance Act of 1968, or the Flood Disaster 
        Protection Act of 1973, during the period beginning upon the 
        date of the enactment of this Act and ending upon the 
        submission by the Council to the Administrator and the Congress 
        of the proposed new mapping standards required under subsection 
        (c)(1), the Administrator may not make effective any new or 
        updated rate maps for flood insurance coverage under the 
        national flood insurance program that were not in effect for 
        such program as of such date of enactment, or otherwise revise, 
        update, or change the flood insurance rate maps in effect for 
        such program as of such date.
            (2) Letters of map change.--During the period described in 
        paragraph (1), the Administrator may revise, update, and change 
        the flood insurance rate maps in effect for the national flood 
        insurance program only pursuant to a letter of map change 
        (including a letter of map amendment, letter of map revision, 
        and letter of map revision based on fill).

SEC. 347. FEMA INCORPORATION OF NEW MAPPING PROTOCOLS.

    (a) New Rate Mapping Standards.--Not later than the expiration of 
the 6-month period beginning upon submission by the Technical Mapping 
Advisory Council under section 346 of the proposed new mapping 
standards for flood insurance rate maps used under the national flood 
insurance program developed by the Council pursuant to section 346(c), 
the Administrator of the Federal Emergency Management Agency (in this 
section referred to as the ``Administrator'') shall establish new 
standards for such rate maps based on such proposed new standards and 
the recommendations of the Council.
    (b) Requirements.--The new standards for flood insurance rate maps 
established by the Administrator pursuant to subsection (a) shall--
            (1) delineate and include in any such rate maps--
                    (A) all areas located within the 100-year flood 
                plain; and
                    (B) areas subject to graduated and other risk 
                levels, to the maximum extent possible;
            (2) ensure that any such rate maps--
                    (A) include levees, including decertified levees, 
                and the level of protection they confer;
                    (B) reflect current land use and topography and 
                incorporate the most current and accurate ground level 
                data;
                    (C) take into consideration the impacts and use of 
                fill and the flood risks associated with altered 
                hydrology;
                    (D) differentiate between a property that is 
                located in a flood zone and a structure located on such 
                property that is not at the same risk level for 
                flooding as such property due to the elevation of the 
                structure;
                    (E) identify and incorporate natural features and 
                their associated flood protection benefits into mapping 
                and rates; and
                    (F) identify, analyze, and incorporate the impact 
                of significant changes to building and development 
                throughout any river or costal water system, including 
                all tributaries, which may impact flooding in areas 
                downstream; and
            (3) provide that such rate maps are developed on a 
        watershed basis.
    (c) Report.--If, in establishing new standards for flood insurance 
rate maps pursuant to subsection (a) of this section, the Administrator 
does not implement all of the recommendations of the Council made under 
the proposed new mapping standards developed by the Council pursuant to 
section 346(c), upon establishment of the new standards the 
Administrator shall submit a report to the Committee on Financial 
Services of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate specifying which such 
recommendations were not adopted and explaining the reasons such 
recommendations were not adopted.
    (d) Implementation.--The Administrator shall, not later than the 
expiration of the 6-month period beginning upon establishment of the 
new standards for flood insurance rate maps pursuant to subsection (a) 
of this section, commence use of the new standards and updating of 
flood insurance rate maps in accordance with the new standards. Not 
later than the expiration of the 10-year period beginning upon the 
establishment of such new standards, the Administrator shall complete 
updating of all flood insurance rate maps in accordance with the new 
standards, subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts.
    (e) Temporary Suspension of Mandatory Purchase Requirement for 
Certain Properties.--
            (1) Submission of elevation certificate.--Subject to 
        paragraphs (2) and (3) of this subsection, subsections (a), 
        (b), and (e) of section 102 of the Flood Disaster Protection 
        Act of 1973 (42 U.S.C. 4012a), and section 202(a) of such Act, 
        shall not apply to a property located in an area designated as 
        having a special flood hazard if the owner of such property 
        submits to the Administrator an elevation certificate for such 
        property showing that the lowest level of the primary residence 
        on such property is at an elevation that is at least three feet 
        higher than the elevation of the 100-year flood plain.
            (2) Review of certificate.--The Administrator shall accept 
        as conclusive each elevation certificate submitted under 
        paragraph (1) unless the Administrator conducts a subsequent 
        elevation survey and determines that the lowest level of the 
        primary residence on the property in question is not at an 
        elevation that is at least three feet higher than the elevation 
        of the 100-year flood plain. The Administrator shall provide 
        any such subsequent elevation survey to the owner of such 
        property.
            (3) Determinations for properties on borders of special 
        flood hazard areas.--
                    (A) Expedited determination.--In the case of any 
                survey for a property submitted to the Administrator 
                pursuant to paragraph (1) showing that a portion of the 
                property is located within an area having special flood 
                hazards and that a structure located on the property is 
                not located within such area having special flood 
                hazards, the Administrator shall expeditiously process 
                any request made by an owner of the property for a 
                determination pursuant to paragraph (2) or a 
                determination of whether the structure is located 
                within the area having special flood hazards.
                    (B) Prohibition of fee.--If the Administrator 
                determines pursuant to subparagraph (A) that the 
                structure on the property is not located within the 
                area having special flood hazards, the Administrator 
                shall not charge a fee for reviewing the flood hazard 
                data and shall not require the owner to provide any 
                additional elevation data.
                    (C) Simplification of review process.--The 
                Administrator shall collaborate with private sector 
                flood insurers to simplify the review process for 
                properties described in subparagraph (A) and to ensure 
                that the review process provides for accurate 
                determinations.
            (4) Termination of authority.--This subsection shall cease 
        to apply to a property on the date on which the Administrator 
        updates the flood insurance rate map that applies to such 
        property in accordance with the requirements of subsection (d).

SEC. 348. TREATMENT OF LEVEES.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following new subsection:
    ``(k) Treatment of Levees.--The Administrator may not issue flood 
insurance maps, or make effective updated flood insurance maps, that 
omit or disregard the actual protection afforded by an existing levee, 
floodwall, pump or other flood protection feature, regardless of the 
accreditation status of such feature.''.

SEC. 349. PRIVATIZATION INITIATIVES.

    (a) FEMA and GAO Reports.--Not later than the expiration of the 18-
month period beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management Agency and the 
Comptroller General of the United States shall each conduct a separate 
study to assess a broad range of options, methods, and strategies for 
privatizing the national flood insurance program and shall each submit 
a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate with recommendations for the best manner to 
accomplish such privatization.
    (b) Private Risk-Management Initiatives.--
            (1) Authority.--The Administrator of the Federal Emergency 
        Management Agency may carry out such private risk-management 
        initiatives under the national flood insurance program as the 
        Administrator considers appropriate to determine the capacity 
        of private insurers, reinsurers, and financial markets to 
        assist communities, on a voluntary basis only, in managing the 
        full range of financial risks associated with flooding.
            (2) Assessment.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this 
        Act, the Administrator shall assess the capacity of the private 
        reinsurance, capital, and financial markets by seeking 
        proposals to assume a portion of the program's insurance risk 
        and submit to the Congress a report describing the response to 
        such request for proposals and the results of such assessment.
            (3) Protocol for release of data.--The Administrator shall 
        develop a protocol to provide for the release of data 
        sufficient to conduct the assessment required under paragraph 
        (2).
    (c) Reinsurance.--The National Flood Insurance Act of 1968 is 
amended--
            (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
        inserting ``, including as reinsurance of insurance coverage 
        provided by the flood insurance program'' before ``, on such 
        terms'';
            (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by 
        inserting ``or reinsurance'' after ``flood insurance 
        coverage'';
            (3) in section 1335(a) (42 U.S.C. 4055(a))--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The Administrator is authorized to secure reinsurance 
coverage of coverage provided by the flood insurance program from 
private market insurance, reinsurance, and capital market sources at 
rates and on terms determined by the Administrator to be reasonable and 
appropriate in an amount sufficient to maintain the ability of the 
program to pay claims and that minimizes the likelihood that the 
program will utilize the borrowing authority provided under section 
1309.'';
            (4) in section 1346(a) (12 U.S.C. 4082(a))--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, or for purposes of securing reinsurance 
                of insurance coverage provided by the program,'' before 
                ``of any or all of'';
                    (B) in paragraph (1)--
                            (i) by striking ``estimating'' and 
                        inserting ``Estimating''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period;
                    (C) in paragraph (2)--
                            (i) by striking ``receiving'' and inserting 
                        ``Receiving''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period;
                    (D) in paragraph (3)--
                            (i) by striking ``making'' and inserting 
                        ``Making''; and
                            (ii) by striking ``; and'' and inserting a 
                        period;
                    (E) in paragraph (4)--
                            (i) by striking ``otherwise'' and inserting 
                        ``Otherwise''; and
                            (ii) by redesignating such paragraph as 
                        paragraph (5); and
                    (F) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Placing reinsurance coverage on insurance provided by 
        such program.''; and
            (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by 
        inserting before the semicolon at the end the following: ``, is 
        subject to the reporting requirements of the Securities 
        Exchange Act of 1934, pursuant to section 13(a) or 15(d) of 
        such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the 
        Administrator to assume reinsurance on risks insured by the 
        flood insurance program''.
    (d) Assessment of Claims-Paying Ability.--
            (1) Assessment.--Not later than September 30 of each year, 
        the Administrator of the Federal Emergency Management Agency 
        shall conduct an assessment of the claims-paying ability of the 
        national flood insurance program, including the program's 
        utilization of private sector reinsurance and reinsurance 
        equivalents, with and without reliance on borrowing authority 
        under section 1309 of the National Flood Insurance Act of 1968 
        (42 U.S.C. 4016). In conducting the assessment, the 
        Administrator shall take into consideration regional 
        concentrations of coverage written by the program, peak flood 
        zones, and relevant mitigation measures.
            (2) Report.--The Administrator shall submit a report to the 
        Congress of the results of each such assessment, and make such 
        report available to the public, not later than 30 days after 
        completion of the assessment.

SEC. 350. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.

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

SEC. 351. MITIGATION ASSISTANCE.

    (a) Mitigation Assistance Grants.--Section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
            (1) in subsection (a), by striking the last sentence and 
        inserting the following: ``Such financial assistance shall be 
        made available--
            ``(1) to States and communities in the form of grants under 
        this section for carrying out mitigation activities;
            ``(2) to States and communities in the form of grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to severe repetitive loss structures; and
            ``(3) to property owners in the form of direct grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to individual structures for which 2 or more claim 
        payments for losses have been made under flood insurance 
        coverage under this title if the Administrator, after 
        consultation with the State and community, determines that 
        neither the State nor community in which such a structure is 
        located has the capacity to manage such grants.''.
            (2) by striking subsection (b);
            (3) in subsection (c)--
                    (A) by striking ``flood risk'' and inserting 
                ``multi-hazard'';
                    (B) by striking ``provides protection against'' and 
                inserting ``examines reduction of''; and
                    (C) by redesignating such subsection as subsection 
                (b);
            (4) by striking subsection (d);
            (5) in subsection (e)--
                    (A) in paragraph (1), by striking the paragraph 
                designation and all that follows through the end of the 
                first sentence and inserting the following:
            ``(1) Requirement of consistency with approved mitigation 
        plan.--Amounts provided under this section may be used only for 
        mitigation activities that are consistent with mitigation plans 
        that are approved by the Administrator and identified under 
        subparagraph (4).'';
                    (B) by striking paragraphs (2), (3), and (4) and 
                inserting the following new paragraphs:
            ``(2) Requirements of technical feasibility, cost 
        effectiveness, and interest of nfif.--The Administrator may 
        approve only mitigation activities that the Administrator 
        determines are technically feasible and cost-effective and in 
        the interest of, and represent savings to, the National Flood 
        Insurance Fund. In making such determinations, the 
        Administrator shall take into consideration recognized benefits 
        that are difficult to quantify.
            ``(3) Priority for mitigation assistance.--In providing 
        grants under this section for mitigation activities, the 
        Administrator shall give priority for funding to activities 
        that the Administrator determines will result in the greatest 
        savings to the National Flood Insurance Fund, including 
        activities for--
                    ``(A) severe repetitive loss structures;
                    ``(B) repetitive loss structures; and
                    ``(C) other subsets of structures as the 
                Administrator may establish.'';
                    (C) in paragraph (5)--
                            (i) by striking all of the matter that 
                        precedes subparagraph (A) and inserting the 
                        following:
            ``(4) Eligible activities.--Eligible activities may 
        include--'';
                            (ii) by striking subparagraphs (E) and (H);
                            (iii) by redesignating subparagraphs (D), 
                        (F), and (G) as subparagraphs (E), (G), and 
                        (H);
                            (iv) by inserting after subparagraph (C) 
                        the following new subparagraph:
                    ``(D) elevation, relocation, and floodproofing of 
                utilities (including equipment that serve 
                structures);'';
                            (v) by inserting after subparagraph (E), as 
                        so redesignated by clause (iii) of this 
                        subparagraph, the following new subparagraph:
                    ``(F) the development or update of State, local, or 
                Indian tribal mitigation plans which meet the planning 
                criteria established by the Administrator, except that 
                the amount from grants under this section that may be 
                used under this subparagraph may not exceed $50,000 for 
                any mitigation plan of a State or $25,000 for any 
                mitigation plan of a local government or Indian 
                tribe;'';
                            (vi) in subparagraph (H); as so 
                        redesignated by clause (iii) of this 
                        subparagraph, by striking ``and'' at the end; 
                        and
                            (vii) by adding at the end the following 
                        new subparagraphs:
                    ``(I) other mitigation activities not described in 
                subparagraphs (A) through (G) or the regulations issued 
                under subparagraph (H), that are described in the 
                mitigation plan of a State, community, or Indian tribe; 
                and
                    ``(J) personnel costs for State staff that provide 
                technical assistance to communities to identify 
                eligible activities, to develop grant applications, and 
                to implement grants awarded under this section, not to 
                exceed $50,000 per State in any Federal fiscal year, so 
                long as the State applied for and was awarded at least 
                $1,000,000 in grants available under this section in 
                the prior Federal fiscal year; the requirements of 
                subsections (d)(1) and (d)(2) shall not apply to the 
                activity under this subparagraph.'';
                    (D) by adding at the end the following new 
                paragraph:
            ``(6) Eligibility of demolition and rebuilding of 
        properties.--The Administrator shall consider as an eligible 
        activity the demolition and rebuilding of properties to at 
        least base flood elevation or greater, if required by the 
        Administrator or if required by any State regulation or local 
        ordinance, and in accordance with criteria established by the 
        Administrator.''; and
                    (E) by redesignating such subsection as subsection 
                (c);
            (6) by striking subsections (f), (g), and (h) and inserting 
        the following new subsection:
    ``(d) Matching Requirement.--The Administrator may provide grants 
for eligible mitigation activities as follows:
            ``(1) Severe repetitive loss structures.--In the case of 
        mitigation activities to severe repetitive loss structures, in 
        an amount up to 100 percent of all eligible costs.
            ``(2) Repetitive loss structures.--In the case of 
        mitigation activities to repetitive loss structures, in an 
        amount up to 90 percent of all eligible costs.
            ``(3) Other mitigation activities.--In the case of all 
        other mitigation activities, in an amount up to 75 percent of 
        all eligible costs.'';
            (7) in subsection (i)--
                    (A) in paragraph (2)--
                            (i) by striking ``certified under 
                        subsection (g)'' and inserting ``required under 
                        subsection (d)''; and
                            (ii) by striking ``3 times the amount'' and 
                        inserting ``the amount''; and
                    (B) by redesignating such subsection as subsection 
                (e);
            (8) in subsection (j)--
                    (A) by striking ``Riegle Community Development and 
                Regulatory Improvement Act of 1994'' and inserting 
                ``Flood Insurance Reform Act of 2012'';
                    (B) by redesignating such subsection as subsection 
                (f); and
            (9) by striking subsections (k) and (m) and inserting the 
        following new subsections:
    ``(g) Failure to Make Grant Award Within 5 Years.--For any 
application for a grant under this section for which the Administrator 
fails to make a grant award within 5 years of the date of application, 
the grant application shall be considered to be denied and any funding 
amounts allocated for such grant applications shall remain in the 
National Flood Mitigation Fund under section 1367 of this title and 
shall be made available for grants under this section.
    ``(h) Limitation on Funding for Mitigation Activities for Severe 
Repetitive Loss Structures.--The amount used pursuant to section 
1310(a)(8) in any fiscal year may not exceed $40,000,000 and shall 
remain available until expended.
    ``(i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Community.--The term `community' means--
                    ``(A) a political subdivision that--
                            ``(i) has zoning and building code 
                        jurisdiction over a particular area having 
                        special flood hazards, and
                            ``(ii) is participating in the national 
                        flood insurance program; or
                    ``(B) a political subdivision of a State, or other 
                authority, that is designated by political 
                subdivisions, all of which meet the requirements of 
                subparagraph (A), to administer grants for mitigation 
                activities for such political subdivisions.
            ``(2) Repetitive loss structure.--The term `repetitive loss 
        structure' has the meaning given such term in section 1370.
            ``(3) Severe repetitive loss structure.--The term `severe 
        repetitive loss structure' means a structure that--
                    ``(A) is covered under a contract for flood 
                insurance made available under this title; and
                    ``(B) has incurred flood-related damage--
                            ``(i) for which 4 or more separate claims 
                        payments have been made under flood insurance 
                        coverage under this title, with the amount of 
                        each such claim exceeding $15,000, and with the 
                        cumulative amount of such claims payments 
                        exceeding $60,000; or
                            ``(ii) for which at least 2 separate claims 
                        payments have been made under such coverage, 
                        with the cumulative amount of such claims 
                        exceeding the value of the insured 
                        structure.''.
    (b) Elimination of Grants Program for Repetitive Insurance Claims 
Properties.--Chapter I of the National Flood Insurance Act of 1968 is 
amended by striking section 1323 (42 U.S.C. 4030).
    (c) Elimination of Pilot Program for Mitigation of Severe 
Repetitive Loss Properties.--Chapter III of the National Flood 
Insurance Act of 1968 is amended by striking section 1361A (42 U.S.C. 
4102a).
    (d) National Flood Insurance Fund.--Section 1310(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
            (1) in paragraph (7), by inserting ``and'' after the 
        semicolon; and
            (2) by striking paragraphs (8) and (9).
    (e) National Flood Mitigation Fund.--Section 1367 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) in each fiscal year, from the National Flood 
        Insurance Fund in amounts not exceeding $90,000,000 to remain 
        available until expended, of which--
                    ``(A) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section only for 
                assistance described in section 1366(a)(1);
                    ``(B) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section only for 
                assistance described in section 1366(a)(2); and
                    ``(C) not more than $10,000,000 shall be available 
                pursuant to subsection (a) of this section only for 
                assistance described in section 1366(a)(3).''.
                    (B) in paragraph (3), by striking ``section 
                1366(i)'' and inserting ``section 1366(e)'';
            (2) in subsection (c), by striking ``sections 1366 and 
        1323'' and inserting ``section 1366'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (f) and (g), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsections:
    ``(d) Prohibition on Offsetting Collections.--Notwithstanding any 
other provision of this title, amounts made available pursuant to this 
section shall not be subject to offsetting collections through premium 
rates for flood insurance coverage under this title.
    ``(e) Continued Availability and Reallocation.--Any amounts made 
available pursuant to subparagraph (A), (B), or (C) of subsection 
(b)(1) that are not used in any fiscal year shall continue to be 
available for the purposes specified in such subparagraph of subsection 
(b)(1) pursuant to which such amounts were made available, unless the 
Administrator determines that reallocation of such unused amounts to 
meet demonstrated need for other mitigation activities under section 
1366 is in the best interest of the National Flood Insurance Fund.''.
    (f) Increased Cost of Compliance Coverage.--Section 1304(b)(4) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is 
amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (B), (C), and (D), respectively.

SEC. 352. NOTIFICATION TO HOMEOWNERS REGARDING MANDATORY PURCHASE 
              REQUIREMENT APPLICABILITY AND RATE PHASE-INS.

    Section 201 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4105) is amended by adding at the end the following new subsection:
    ``(f) Annual Notification.--The Administrator, in consultation with 
affected communities, shall establish and carry out a plan to notify 
residents of areas having special flood hazards, on an annual basis--
            ``(1) that they reside in such an area;
            ``(2) of the geographical boundaries of such area;
            ``(3) of whether section 1308(g) of the National Flood 
        Insurance Act of 1968 applies to properties within such area;
            ``(4) of the provisions of section 102 requiring purchase 
        of flood insurance coverage for properties located in such an 
        area, including the date on which such provisions apply with 
        respect to such area, taking into consideration section 102(i); 
        and
            ``(5) of a general estimate of what similar homeowners in 
        similar areas typically pay for flood insurance coverage, 
        taking into consideration section 1308(g) of the National Flood 
        Insurance Act of 1968.''.

SEC. 353. NOTIFICATION TO MEMBERS OF CONGRESS OF FLOOD MAP REVISIONS 
              AND UPDATES.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101), as amended by the preceding provisions of this subtitle, is 
further amended by adding at the end the following new subsection:
    ``(l) Notification to Members of Congress of Map Modernization.--
Upon any revision or update of any floodplain area or flood-risk zone 
pursuant to subsection (f), any decision pursuant to subsection (f)(1) 
that such revision or update is necessary, any issuance of preliminary 
maps for such revision or updating, or any other significant action 
relating to any such revision or update, the Administrator shall notify 
the Senators for each State affected, and each Member of the House of 
Representatives for each congressional district affected, by such 
revision or update in writing of the action taken.''.

SEC. 354. NOTIFICATION AND APPEAL OF MAP CHANGES; NOTIFICATION TO 
              COMMUNITIES OF ESTABLISHMENT OF FLOOD ELEVATIONS.

    Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104) is amended by striking the section designation and all that 
follows through the end of subsection (a) and inserting the following:
    ``Sec. 1363. (a) In establishing projected flood elevations for 
land use purposes with respect to any community pursuant to section 
1361, the Administrator shall first propose such determinations--
            ``(1) by providing the chief executive officer of each 
        community affected by the proposed elevations, by certified 
        mail, with a return receipt requested, notice of the 
        elevations, including a copy of the maps for the elevations for 
        such community and a statement explaining the process under 
        this section to appeal for changes in such elevations;
            ``(2) by causing notice of such elevations to be published 
        in the Federal Register, which notice shall include information 
        sufficient to identify the elevation determinations and the 
        communities affected, information explaining how to obtain 
        copies of the elevations, and a statement explaining the 
        process under this section to appeal for changes in the 
        elevations;
            ``(3) by publishing in a prominent local newspaper the 
        elevations, a description of the appeals process for flood 
        determinations, and the mailing address and telephone number of 
        a person the owner may contact for more information or to 
        initiate an appeal;
            ``(4) by providing written notification, by first class 
        mail, to each owner of real property affected by the proposed 
        elevations of--
                    ``(A) the status of such property, both prior to 
                and after the effective date of the proposed 
                determination, with respect to flood zone and flood 
                insurance requirements under this Act and the Flood 
                Disaster Protection Act of 1973;
                    ``(B) the process under this section to appeal a 
                flood elevation determination; and
                    ``(C) the mailing address and phone number of a 
                person the owner may contact for more information or to 
                initiate an appeal; and''.

SEC. 355. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS 
              INSURANCE.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1308 (42 U.S.C. 4015) the following new section:

``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS 
              INSURANCE.

    ``(a) In General.--The Administrator shall, upon entering into a 
contract for flood insurance coverage under this title for any 
property--
            ``(1) provide to the insured sufficient copies of the 
        notice developed pursuant to subsection (b); and
            ``(2) require the insured to provide a copy of the notice, 
        or otherwise provide notification of the information under 
        subsection (b) in the manner that the manager or landlord deems 
        most appropriate, to each such tenant and to each new tenant 
        upon commencement of such a tenancy.
    ``(b) Notice.--Notice to a tenant of a property in accordance with 
this subsection is written notice that clearly informs a tenant--
            ``(1) whether the property is located in an area having 
        special flood hazards;
            ``(2) that flood insurance coverage is available under the 
        national flood insurance program under this title for contents 
        of the unit or structure leased by the tenant;
            ``(3) of the maximum amount of such coverage for contents 
        available under this title at that time; and
            ``(4) of where to obtain information regarding how to 
        obtain such coverage, including a telephone number, mailing 
        address, and Internet site of the Administrator where such 
        information is available.''.

SEC. 356. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT MANAGEMENT OF 
              POLICY BY FEMA.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.) is amended by adding at the end the following 
new section:

``SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT MANAGEMENT 
              OF POLICY BY FEMA.

    ``(a) Notification.--Not later than 60 days before the date on 
which a transferred flood insurance policy expires, and annually 
thereafter until such time as the Federal Emergency Management Agency 
is no longer directly administering such policy, the Administrator 
shall notify the holder of such policy that--
            ``(1) the Federal Emergency Management Agency is directly 
        administering the policy;
            ``(2) such holder may purchase flood insurance that is 
        directly administered by an insurance company; and
            ``(3) purchasing flood insurance offered under the National 
        Flood Insurance Program that is directly administered by an 
        insurance company will not alter the coverage provided or the 
        premiums charged to such holder that otherwise would be 
        provided or charged if the policy was directly administered by 
        the Federal Emergency Management Agency.
    ``(b) Definition.--In this section, the term `transferred flood 
insurance policy' means a flood insurance policy that--
            ``(1) was directly administered by an insurance company at 
        the time the policy was originally purchased by the policy 
        holder; and
            ``(2) at the time of renewal of the policy, direct 
        administration of the policy was or will be transferred to the 
        Federal Emergency Management Agency.''.

SEC. 357. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA 
              GOOD FAITH ESTIMATE.

    Subsection (c) of section 5 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the 
end the following new sentence: ``Each such good faith estimate shall 
include the following conspicuous statements and information: (1) that 
flood insurance coverage for residential real estate is generally 
available under the national flood insurance program whether or not the 
real estate is located in an area having special flood hazards and 
that, to obtain such coverage, a home owner or purchaser should contact 
the national flood insurance program; (2) a telephone number and a 
location on the Internet by which a home owner or purchaser can contact 
the national flood insurance program; and (3) that the escrowing of 
flood insurance payments is required for many loans under section 
102(d) of the Flood Disaster Protection Act of 1973, and may be a 
convenient and available option with respect to other loans.''.

SEC. 358. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS AND 
              COMMUNITIES OBTAINING LETTERS OF MAP AMENDMENT OR 
              REVISION.

    (a) In General.--Section 1360 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4101), as amended by the preceding provisions of 
this subtitle, is further amended by adding at the end the following 
new subsection:
    ``(m) Reimbursement.--
            ``(1) Requirement upon bona fide error.--If an owner of any 
        property located in an area described in section 102(i)(3) of 
        the Flood Disaster Protection Act of 1973, or a community in 
        which such a property is located, obtains a letter of map 
        amendment, or a letter of map revision, due to a bona fide 
        error on the part of the Administrator of the Federal Emergency 
        Management Agency, the Administrator shall reimburse such 
        owner, or such entity or jurisdiction acting on such owner's 
        behalf, or such community, as applicable, for any reasonable 
        costs incurred in obtaining such letter.
            ``(2) Reasonable costs.--The Administrator shall, by 
        regulation or notice, determine a reasonable amount of costs to 
        be reimbursed under paragraph (1), except that such costs shall 
        not include legal or attorneys fees. In determining the 
        reasonableness of costs, the Administrator shall only consider 
        the actual costs to the owner or community, as applicable, of 
        utilizing the services of an engineer, surveyor, or similar 
        services.''.
    (b) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Administrator of the Federal Emergency 
Management Agency shall issue the regulations or notice required under 
section 1360(m)(2) of the National Flood Insurance Act of 1968, as 
added by the amendment made by subsection (a) of this section.

SEC. 359. ENHANCED COMMUNICATION WITH CERTAIN COMMUNITIES DURING MAP 
              UPDATING PROCESS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101), as amended by the preceding provisions of this subtitle, is 
further amended by adding at the end the following new subsection:
    ``(n) Enhanced Communication With Certain Communities During Map 
Updating Process.--In updating flood insurance maps under this section, 
the Administrator shall communicate with communities located in areas 
where flood insurance rate maps have not been updated in 20 years or 
more and the appropriate State emergency agencies to resolve 
outstanding issues, provide technical assistance, and disseminate all 
necessary information to reduce the prevalence of outdated maps in 
flood-prone areas.''.

SEC. 360. NOTIFICATION TO RESIDENTS NEWLY INCLUDED IN FLOOD HAZARD 
              AREAS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101), as amended by the preceding provisions of this subtitle, is 
further amended by adding at the end the following new subsection:
    ``(o) Notification to Residents Newly Included in Flood Hazard 
Area.--In revising or updating any areas having special flood hazards, 
the Administrator shall provide to each owner of a property to be newly 
included in such a special flood hazard area, at the time of issuance 
of such proposed revised or updated flood insurance maps, a copy of the 
proposed revised or updated flood insurance maps together with 
information regarding the appeals process under section 1363 (42 U.S.C. 
4104).''.

SEC. 361. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE 
              SEASON.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) is amended by adding at the end the following new 
section:

``SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE 
              SEASON.

    ``In the case of any property that is otherwise in compliance with 
the coverage and building requirements of the national flood insurance 
program, the presence of an enclosed swimming pool located at ground 
level or in the space below the lowest floor of a building after 
November 30 and before June 1 of any year shall have no effect on the 
terms of coverage or the ability to receive coverage for such building 
under the national flood insurance program established pursuant to this 
title, if the pool is enclosed with non-supporting breakaway walls.''.

SEC. 362. INFORMATION REGARDING MULTIPLE PERILS CLAIMS.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(d) Information Regarding Multiple Perils Claims.--
            ``(1) In general.--Subject to paragraph (2), if an insured 
        having flood insurance coverage under a policy issued under the 
        program under this title by the Administrator or a company, 
        insurer, or entity offering flood insurance coverage under such 
        program (in this subsection referred to as a `participating 
        company') has wind or other homeowners coverage from any 
        company, insurer, or other entity covering property covered by 
        such flood insurance, in the case of damage to such property 
        that may have been caused by flood or by wind, the 
        Administrator and the participating company, upon the request 
        of the insured, shall provide to the insured, within 30 days of 
        such request--
                    ``(A) a copy of the estimate of structure damage;
                    ``(B) proofs of loss;
                    ``(C) any expert or engineering reports or 
                documents commissioned by or relied upon by the 
                Administrator or participating company in determining 
                whether the damage was caused by flood or any other 
                peril; and
                    ``(D) the Administrator's or the participating 
                company's final determination on the claim.
            ``(2) Timing.--Paragraph (1) shall apply only with respect 
        to a request described in such paragraph made by an insured 
        after the Administrator or the participating company, or both, 
        as applicable, have issued a final decision on the flood claim 
        involved and resolution of all appeals with respect to such 
        claim.''.

SEC. 363. FEMA AUTHORITY TO REJECT TRANSFER OF POLICIES.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(e) FEMA Authority to Reject Transfer of Policies.--
Notwithstanding any other provision of this Act, the Administrator may, 
at the discretion of the Administrator, refuse to accept the transfer 
of the administration of policies for coverage under the flood 
insurance program under this title that are written and administered by 
any insurance company or other insurer, or any insurance agent or 
broker.''.

SEC. 364. APPEALS.

    (a) Television and Radio Announcement.--Section 1363 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104), as amended by 
the preceding provisions of this subtitle, is further amended--
            (1) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(5) by notifying a local television and radio station,''; 
        and
            (2) in the first sentence of subsection (b), by inserting 
        before the period at the end the following: ``and shall notify 
        a local television and radio station at least once during the 
        same 10-day period''.
    (b) Extension of Appeals Period.--Subsection (b) of section 1363 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4104(b)) is 
amended--
            (1) by striking ``(b) The Director'' and inserting ``(b)(1) 
        The Administrator''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Administrator shall grant an extension of the 90-day 
period for appeals referred to in paragraph (1) for 90 additional days 
if an affected community certifies to the Administrator, after the 
expiration of at least 60 days of such period, that the community--
            ``(A) believes there are property owners or lessees in the 
        community who are unaware of such period for appeals; and
            ``(B) will utilize the extension under this paragraph to 
        notify property owners or lessees who are affected by the 
        proposed flood elevation determinations of the period for 
        appeals and the opportunity to appeal the determinations 
        proposed by the Administrator.''.
    (c) Applicability.--The amendments made by subsections (a) and (b) 
shall apply with respect to any flood elevation determination for any 
area in a community that has not, as of the date of the enactment of 
this Act, been issued a Letter of Final Determination for such 
determination under the flood insurance map modernization process.

SEC. 365. RESERVE FUND.

    (a) Establishment.--Chapter I of the National Flood Insurance Act 
of 1968 is amended by inserting after section 1310 (42 U.S.C. 4017) the 
following new section:

``SEC. 1310A. RESERVE FUND.

    ``(a) Establishment of Reserve Fund.--In carrying out the flood 
insurance program authorized by this title, the Administrator shall 
establish in the Treasury of the United States a National Flood 
Insurance Reserve Fund (in this section referred to as the `Reserve 
Fund') which shall--
            ``(1) be an account separate from any other accounts or 
        funds available to the Administrator; and
            ``(2) be available for meeting the expected future 
        obligations of the flood insurance program.
    ``(b) Reserve Ratio.--Subject to the phase-in requirements under 
subsection (d), the Reserve Fund shall maintain a balance equal to--
            ``(1) 1 percent of the sum of the total potential loss 
        exposure of all outstanding flood insurance policies in force 
        in the prior fiscal year; or
            ``(2) such higher percentage as the Administrator 
        determines to be appropriate, taking into consideration any 
        circumstance that may raise a significant risk of substantial 
        future losses to the Reserve Fund.
    ``(c) Maintenance of Reserve Ratio.--
            ``(1) In general.--The Administrator shall have the 
        authority to establish, increase, or decrease the amount of 
        aggregate annual insurance premiums to be collected for any 
        fiscal year necessary--
                    ``(A) to maintain the reserve ratio required under 
                subsection (b); and
                    ``(B) to achieve such reserve ratio, if the actual 
                balance of such reserve is below the amount required 
                under subsection (b).
            ``(2) Considerations.--In exercising the authority under 
        paragraph (1), the Administrator shall consider--
                    ``(A) the expected operating expenses of the 
                Reserve Fund;
                    ``(B) the insurance loss expenditures under the 
                flood insurance program;
                    ``(C) any investment income generated under the 
                flood insurance program; and
                    ``(D) any other factor that the Administrator 
                determines appropriate.
            ``(3) Limitations.--In exercising the authority under 
        paragraph (1), the Administrator shall be subject to all other 
        provisions of this Act, including any provisions relating to 
        chargeable premium rates and annual increases of such rates.
    ``(d) Phase-in Requirements.--The phase-in requirements under this 
subsection are as follows:
            ``(1) In general.--Beginning in fiscal year 2012 and not 
        ending until the fiscal year in which the ratio required under 
        subsection (b) is achieved, in each such fiscal year the 
        Administrator shall place in the Reserve Fund an amount equal 
        to not less than 7.5 percent of the reserve ratio required 
        under subsection (b).
            ``(2) Amount satisfied.--As soon as the ratio required 
        under subsection (b) is achieved, and except as provided in 
        paragraph (3), the Administrator shall not be required to set 
        aside any amounts for the Reserve Fund.
            ``(3) Exception.--If at any time after the ratio required 
        under subsection (b) is achieved, the Reserve Fund falls below 
        the required ratio under subsection (b), the Administrator 
        shall place in the Reserve Fund for that fiscal year an amount 
        equal to not less than 7.5 percent of the reserve ratio 
        required under subsection (b).
    ``(e) Limitation on Reserve Ratio.--In any given fiscal year, if 
the Administrator determines that the reserve ratio required under 
subsection (b) cannot be achieved, the Administrator shall submit a 
report to the Congress that--
            ``(1) describes and details the specific concerns of the 
        Administrator regarding such consequences;
            ``(2) demonstrates how such consequences would harm the 
        long-term financial soundness of the flood insurance program; 
        and
            ``(3) indicates the maximum attainable reserve ratio for 
        that particular fiscal year.
    ``(f) Availability of Amounts.--The reserve ratio requirements 
under subsection (b) and the phase-in requirements under subsection (d) 
shall be subject to the availability of amounts in the National Flood 
Insurance Fund for transfer under section 1310(a)(10), as provided in 
section 1310(f).''.
    (b) Funding.--Subsection (a) of section 1310 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(a)), as amended by the preceding 
provisions of this Act, is further amended by adding at the end the 
following new paragraph:
            ``(10) for transfers to the National Flood Insurance 
        Reserve Fund under section 1310A, in accordance with such 
        section.''.

SEC. 366. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH ACTIVITIES AND 
              COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

    Section 105(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(26) supplementing existing State or local funding for 
        administration of building code enforcement by local building 
        code enforcement departments, including for increasing 
        staffing, providing staff training, increasing staff competence 
        and professional qualifications, and supporting individual 
        certification or departmental accreditation, and for capital 
        expenditures specifically dedicated to the administration of 
        the building code enforcement department, except that, to be 
        eligible to use amounts as provided in this paragraph--
                    ``(A) a building code enforcement department shall 
                provide matching, non-Federal funds to be used in 
                conjunction with amounts used under this paragraph in 
                an amount--
                            ``(i) in the case of a building code 
                        enforcement department serving an area with a 
                        population of more than 50,000, equal to not 
                        less than 50 percent of the total amount of any 
                        funds made available under this title that are 
                        used under this paragraph;
                            ``(ii) in the case of a building code 
                        enforcement department serving an area with a 
                        population of between 20,001 and 50,000, equal 
                        to not less than 25 percent of the total amount 
                        of any funds made available under this title 
                        that are used under this paragraph; and
                            ``(iii) in the case of a building code 
                        enforcement department serving an area with a 
                        population of less than 20,000, equal to not 
                        less than 12.5 percent of the total amount of 
                        any funds made available under this title that 
                        are used under this paragraph,
                except that the Secretary may waive the matching fund 
                requirements under this subparagraph, in whole or in 
                part, based upon the level of economic distress of the 
                jurisdiction in which is located the local building 
                code enforcement department that is using amounts for 
                purposes under this paragraph, and shall waive such 
                matching fund requirements in whole for any recipient 
                jurisdiction that has dedicated all building code 
                permitting fees to the conduct of local building code 
                enforcement; and
                    ``(B) any building code enforcement department 
                using funds made available under this title for 
                purposes under this paragraph shall empanel a code 
                administration and enforcement team consisting of at 
                least 1 full-time building code enforcement officer, a 
                city planner, and a health planner or similar officer; 
                and
            ``(27) provision of assistance to local governmental 
        agencies responsible for floodplain management activities 
        (including such agencies of Indians tribes, as such term is 
        defined in section 4 of the Native American Housing Assistance 
        and Self-Determination Act of 1996 (25 U.S.C. 4103)) in 
        communities that participate in the national flood insurance 
        program under the National Flood Insurance Act of 1968 (42 
        U.S.C. 4001 et seq.), only for carrying out outreach activities 
        to encourage and facilitate the purchase of flood insurance 
        protection under such Act by owners and renters of properties 
        in such communities and to promote educational activities that 
        increase awareness of flood risk reduction; except that--
                    ``(A) amounts used as provided under this paragraph 
                shall be used only for activities designed to--
                            ``(i) identify owners and renters of 
                        properties in communities that participate in 
                        the national flood insurance program, including 
                        owners of residential and commercial 
                        properties;
                            ``(ii) notify such owners and renters when 
                        their properties become included in, or when 
                        they are excluded from, an area having special 
                        flood hazards and the effect of such inclusion 
                        or exclusion on the applicability of the 
                        mandatory flood insurance purchase requirement 
                        under section 102 of the Flood Disaster 
                        Protection Act of 1973 (42 U.S.C. 4012a) to 
                        such properties;
                            ``(iii) educate such owners and renters 
                        regarding the flood risk and reduction of this 
                        risk in their community, including the 
                        continued flood risks to areas that are no 
                        longer subject to the flood insurance mandatory 
                        purchase requirement;
                            ``(iv) educate such owners and renters 
                        regarding the benefits and costs of maintaining 
                        or acquiring flood insurance, including, where 
                        applicable, lower-cost preferred risk policies 
                        under this title for such properties and the 
                        contents of such properties;
                            ``(v) encourage such owners and renters to 
                        maintain or acquire such coverage;
                            ``(vi) notify such owners of where to 
                        obtain information regarding how to obtain such 
                        coverage, including a telephone number, mailing 
                        address, and Internet site of the Administrator 
                        of the Federal Emergency Management Agency (in 
                        this paragraph referred to as the 
                        `Administrator') where such information is 
                        available; and
                            ``(vii) educate local real estate agents in 
                        communities participating in the national flood 
                        insurance program regarding the program and the 
                        availability of coverage under the program for 
                        owners and renters of properties in such 
                        communities, and establish coordination and 
                        liaisons with such real estate agents to 
                        facilitate purchase of coverage under the 
                        National Flood Insurance Act of 1968 and 
                        increase awareness of flood risk reduction;
                    ``(B) in any fiscal year, a local governmental 
                agency may not use an amount under this paragraph that 
                exceeds 3 times the amount that the agency certifies, 
                as the Secretary, in consultation with the 
                Administrator, shall require, that the agency will 
                contribute from non-Federal funds to be used with such 
                amounts used under this paragraph only for carrying out 
                activities described in subparagraph (A); and for 
                purposes of this subparagraph, the term `non-Federal 
                funds' includes State or local government agency 
                amounts, in-kind contributions, any salary paid to 
                staff to carry out the eligible activities of the local 
                governmental agency involved, the value of the time and 
                services contributed by volunteers to carry out such 
                services (at a rate determined by the Secretary), and 
                the value of any donated material or building and the 
                value of any lease on a building;
                    ``(C) a local governmental agency that uses amounts 
                as provided under this paragraph may coordinate or 
                contract with other agencies and entities having 
                particular capacities, specialties, or experience with 
                respect to certain populations or constituencies, 
                including elderly or disabled families or persons, to 
                carry out activities described in subparagraph (A) with 
                respect to such populations or constituencies; and
                    ``(D) each local government agency that uses 
                amounts as provided under this paragraph shall submit a 
                report to the Secretary and the Administrator, not 
                later than 12 months after such amounts are first 
                received, which shall include such information as the 
                Secretary and the Administrator jointly consider 
                appropriate to describe the activities conducted using 
                such amounts and the effect of such activities on the 
                retention or acquisition of flood insurance 
                coverage.''.

SEC. 367. TECHNICAL CORRECTIONS.

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

SEC. 368. REQUIRING COMPETITION FOR NATIONAL FLOOD INSURANCE PROGRAM 
              POLICIES.

    (a) Report.--Not later than the expiration of the 90-day period 
beginning upon the date of the enactment of this Act, the Administrator 
of the Federal Emergency Management Agency, in consultation with 
insurance companies, insurance agents and other organizations with 
which the Administrator has contracted, shall submit to the Congress a 
report describing procedures and policies that the Administrator shall 
implement to limit the percentage of policies for flood insurance 
coverage under the national flood insurance program that are directly 
managed by the Agency to not more than 10 percent of the aggregate 
number of flood insurance policies in force under such program.
    (b) Implementation.--Upon submission of the report under subsection 
(a) to the Congress, the Administrator shall implement the policies and 
procedures described in the report. The Administrator shall, not later 
than the expiration of the 12-month period beginning upon submission of 
such report, reduce the number of policies for flood insurance coverage 
that are directly managed by the Agency, or by the Agency's direct 
servicing contractor that is not an insurer, to not more than 10 
percent of the aggregate number of flood insurance policies in force as 
of the expiration of such 12-month period.
    (c) Continuation of Current Agent Relationships.--In carrying out 
subsection (b), the Administrator shall ensure that--
            (1) agents selling or servicing policies described in such 
        subsection are not prevented from continuing to sell or service 
        such policies; and
            (2) insurance companies are not prevented from waiving any 
        limitation such companies could otherwise enforce to limit any 
        such activity.

SEC. 369. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS.

    (a) Studies.--The Administrator of the Federal Emergency Management 
Agency and the Comptroller General of the United States shall each 
conduct a separate study to assess options, methods, and strategies for 
offering voluntary community-based flood insurance policy options and 
incorporating such options into the national flood insurance program. 
Such studies shall take into consideration and analyze how the policy 
options would affect communities having varying economic bases, 
geographic locations, flood hazard characteristics or classifications, 
and flood management approaches.
    (b) Reports.--Not later than the expiration of the 18-month period 
beginning on the date of the enactment of this Act, the Administrator 
of the Federal Emergency Management Agency and the Comptroller General 
of the United States shall each submit a report to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate on the results and 
conclusions of the study such agency conducted under subsection (a), 
and each such report shall include recommendations for the best manner 
to incorporate voluntary community-based flood insurance options into 
the national flood insurance program and for a strategy to implement 
such options that would encourage communities to undertake flood 
mitigation activities.

SEC. 370. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
              MANAGEMENT CRITERIA.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall conduct a study and submit a report 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the impact, effectiveness, and feasibility of amending 
section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102) to include widely used and nationally recognized building codes 
as part of the floodplain management criteria developed under such 
section, and shall determine--
            (1) the regulatory, financial, and economic impacts of such 
        a building code requirement on homeowners, States and local 
        communities, local land use policies, and the Federal Emergency 
        Management Agency;
            (2) the resources required of State and local communities 
        to administer and enforce such a building code requirement;
            (3) the effectiveness of such a building code requirement 
        in reducing flood-related damage to buildings and contents;
            (4) the impact of such a building code requirement on the 
        actuarial soundness of the National Flood Insurance Program;
            (5) the effectiveness of nationally recognized codes in 
        allowing innovative materials and systems for flood-resistant 
        construction;
            (6) the feasibility and effectiveness of providing an 
        incentive in lower premium rates for flood insurance coverage 
        under such Act for structures meeting whichever of such widely 
        used and nationally recognized building code or any applicable 
        local building code provides greater protection from flood 
        damage;
            (7) the impact of such a building code requirement on rural 
        communities with different building code challenges than more 
        urban environments; and
            (8) the impact of such a building code requirement on 
        Indian reservations.

SEC. 371. STUDY ON GRADUATED RISK.

    (a) Study.--The National Academy of Sciences shall conduct a study 
exploring methods for understanding graduated risk behind levees and 
the associated land development, insurance, and risk communication 
dimensions, which shall--
            (1) research, review, and recommend current best practices 
        for estimating direct annualized flood losses behind levees for 
        residential and commercial structures;
            (2) rank such practices based on their best value, 
        balancing cost, scientific integrity, and the inherent 
        uncertainties associated with all aspects of the loss estimate, 
        including geotechnical engineering, flood frequency estimates, 
        economic value, and direct damages;
            (3) research, review, and identify current best floodplain 
        management and land use practices behind levees that 
        effectively balance social, economic, and environmental 
        considerations as part of an overall flood risk management 
        strategy;
            (4) identify examples where such practices have proven 
        effective and recommend methods and processes by which they 
        could be applied more broadly across the United States, given 
        the variety of different flood risks, State and local legal 
        frameworks, and evolving judicial opinions;
            (5) research, review, and identify a variety of flood 
        insurance pricing options for flood hazards behind levees which 
        are actuarially sound and based on the flood risk data 
        developed using the top three best value approaches identified 
        pursuant to paragraph (1);
            (6) evaluate and recommend methods to reduce insurance 
        costs through creative arrangements between insureds and 
        insurers while keeping a clear accounting of how much financial 
        risk is being borne by various parties such that the entire 
        risk is accounted for, including establishment of explicit 
        limits on disaster aid or other assistance in the event of a 
        flood; and
            (7) taking into consideration the recommendations pursuant 
        to paragraphs (1) through (3), recommend approaches to 
        communicating the associated risks to community officials, 
        homeowners, and other residents.
    (b) Report.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the National 
Academy of Sciences shall submit a report to the Committees on 
Financial Services and Science, Space, and Technology of the House of 
Representatives and the Committees on Banking, Housing, and Urban 
Affairs and Commerce, Science and Transportation of the Senate on the 
study under subsection (a) including the information and 
recommendations required under such subsection.

SEC. 372. REPORT ON FLOOD-IN-PROGRESS DETERMINATION.

    The Administrator of the Federal Emergency Management Agency shall 
review the processes and procedures for determining that a flood event 
has commenced or is in progress for purposes of flood insurance 
coverage made available under the national flood insurance program 
under the National Flood Insurance Act of 1968 and for providing public 
notification that such an event has commenced or is in progress. In 
such review, the Administrator shall take into consideration the 
effects and implications that weather conditions, such as rainfall, 
snowfall, projected snowmelt, existing water levels, and other 
conditions have on the determination that a flood event has commenced 
or is in progress. Not later than the expiration of the 6-month period 
beginning upon the date of the enactment of this Act, the Administrator 
shall submit a report to the Congress setting forth the results and 
conclusions of the review undertaken pursuant to this section and any 
actions undertaken or proposed actions to be taken to provide for a 
more precise and technical determination that a flooding event has 
commenced or is in progress.

SEC. 373. STUDY ON REPAYING FLOOD INSURANCE DEBT.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall submit a report to the Congress 
setting forth a plan for repaying within 10 years all amounts, 
including any amounts previously borrowed but not yet repaid, owed 
pursuant to clause (2) of subsection (a) of section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)(2)).

SEC. 374. NO CAUSE OF ACTION.

    No cause of action shall exist and no claim may be brought against 
the United States for violation of any notification requirement imposed 
upon the United States by this subtitle or any amendment made by this 
subtitle.

SEC. 375. AUTHORITY FOR THE CORPS OF ENGINEERS TO PROVIDE SPECIALIZED 
              OR TECHNICAL SERVICES.

    (a) In General.--Notwithstanding any other provision of law, upon 
the request of a State or local government, the Secretary of the Army 
may evaluate a levee system that was designed or constructed by the 
Secretary for the purposes of the National Flood Insurance Program 
established under chapter 1 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.).
    (b) Requirements.--A levee system evaluation under subsection (a) 
shall--
            (1) comply with applicable regulations related to areas 
        protected by a levee system;
            (2) be carried out in accordance with such procedures as 
        the Secretary, in consultation with the Administrator of the 
        Federal Emergency Management Agency, may establish; and
            (3) be carried out only if the State or local government 
        agrees to reimburse the Secretary for all cost associated with 
        the performance of the activities.

         Subtitle E--Repeal of the Office of Financial Research

SEC. 381. REPEAL OF THE OFFICE OF FINANCIAL RESEARCH.

    (a) In General.--Subtitle B of title I of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby repealed.
    (b) Conforming Amendments to the Dodd-Frank Act.--The Dodd-Frank 
Wall Street Reform and Consumer Protection Act is amended--
            (1) in section 102(a), by striking paragraph (5);
            (2) in section 111--
                    (A) in subsection (b)(2)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B), 
                        (C), (D), and (E) as subparagraphs (A), (B), 
                        (C), and (D), respectively;
                    (B) in subsection (c)(1), by striking 
                ``subparagraphs (C), (D), and (E)'' and inserting 
                ``subparagraphs (B), (C), and (D)'';
            (3) in section 112--
                    (A) in subsection (a)(2)--
                            (i) in subparagraph (A), by striking 
                        ``direct the Office of Financial Research to'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C), 
                        (D), (E), (F), (G), (H), (I), (J), (K), (L), 
                        (M), and (N) as subparagraphs (B), (C), (D), 
                        (E), (F), (G), (H), (I), (J), (K), (L), and 
                        (M), respectively; and
                    (B) in subsection (d)--
                            (i) in paragraph (1), by striking ``the 
                        Office of Financial Research, member agencies, 
                        and'' and inserting ``member agencies and'';
                            (ii) in paragraph (2), by striking ``the 
                        Office of Financial Research, any member 
                        agency, and'' and inserting ``any member agency 
                        and'';
                            (iii) in paragraph (3)--
                                    (I) by striking ``, acting through 
                                the Office of Financial Research,'' 
                                each place it appears; and
                                    (II) in subparagraph (B), by 
                                striking ``the Office of Financial 
                                Research or''; and
                            (iv) in paragraph (5)(A), by striking ``, 
                        the Office of Financial Research,'';
            (4) in section 116, by striking ``, acting through the 
        Office of Financial Research,'' each place it appears; and
            (5) by striking section 118.
    (c) Conforming Amendment to the Paperwork Reduction Act.--Effective 
as of the date specified in section 1100H of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act, section 1100D(a) of such Act is 
amended to read as follows:
    ``(a) Designation as an Independent Agency.--Section 3502(5) of 
subchapter I of chapter 35 of title 44, United States Code (commonly 
known as the Paperwork Reduction Act) is amended by inserting `the 
Bureau of Consumer Financial Protection,' after `the Securities and 
Exchange Commission,'.''.
    (d) Technical Amendments.--The table of contents for the Dodd-Frank 
Wall Street Reform and Consumer Protection Act is amended--
            (1) by striking the item relating to section 118; and
            (2) by striking the items relating to subtitle B of title 
        I.

                  TITLE IV--COMMITTEE ON THE JUDICIARY

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Help Efficient, Accessible, Low-
cost, Timely Healthcare (HEALTH) Act of 2011''.

SEC. 402. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS.

    The time for the commencement of a health care lawsuit shall be 3 
years after the date of manifestation of injury or 1 year after the 
claimant discovers, or through the use of reasonable diligence should 
have discovered, the injury, whichever occurs first. In no event shall 
the time for commencement of a health care lawsuit exceed 3 years after 
the date of manifestation of injury unless tolled for any of the 
following--
            (1) upon proof of fraud;
            (2) intentional concealment; or
            (3) the presence of a foreign body, which has no 
        therapeutic or diagnostic purpose or effect, in the person of 
        the injured person.
Actions by a minor shall be commenced within 3 years from the date of 
the alleged manifestation of injury except that actions by a minor 
under the full age of 6 years shall be commenced within 3 years of 
manifestation of injury or prior to the minor's 8th birthday, whichever 
provides a longer period. Such time limitation shall be tolled for 
minors for any period during which a parent or guardian and a health 
care provider or health care organization have committed fraud or 
collusion in the failure to bring an action on behalf of the injured 
minor.

SEC. 403. COMPENSATING PATIENT INJURY.

    (a) Unlimited Amount of Damages for Actual Economic Losses in 
Health Care Lawsuits.--In any health care lawsuit, nothing in this 
title shall limit a claimant's recovery of the full amount of the 
available economic damages, notwithstanding the limitation in 
subsection (b).
    (b) Additional Noneconomic Damages.--In any health care lawsuit, 
the amount of noneconomic damages, if available, may be as much as 
$250,000, regardless of the number of parties against whom the action 
is brought or the number of separate claims or actions brought with 
respect to the same injury.
    (c) No Discount of Award for Noneconomic Damages.--For purposes of 
applying the limitation in subsection (b), future noneconomic damages 
shall not be discounted to present value. The jury shall not be 
informed about the maximum award for noneconomic damages. An award for 
noneconomic damages in excess of $250,000 shall be reduced either 
before the entry of judgment, or by amendment of the judgment after 
entry of judgment, and such reduction shall be made before accounting 
for any other reduction in damages required by law. If separate awards 
are rendered for past and future noneconomic damages and the combined 
awards exceed $250,000, the future noneconomic damages shall be reduced 
first.
    (d) Fair Share Rule.--In any health care lawsuit, each party shall 
be liable for that party's several share of any damages only and not 
for the share of any other person. Each party shall be liable only for 
the amount of damages allocated to such party in direct proportion to 
such party's percentage of responsibility. Whenever a judgment of 
liability is rendered as to any party, a separate judgment shall be 
rendered against each such party for the amount allocated to such 
party. For purposes of this section, the trier of fact shall determine 
the proportion of responsibility of each party for the claimant's harm.

SEC. 404. MAXIMIZING PATIENT RECOVERY.

    (a) Court Supervision of Share of Damages Actually Paid to 
Claimants.--In any health care lawsuit, the court shall supervise the 
arrangements for payment of damages to protect against conflicts of 
interest that may have the effect of reducing the amount of damages 
awarded that are actually paid to claimants. In particular, in any 
health care lawsuit in which the attorney for a party claims a 
financial stake in the outcome by virtue of a contingent fee, the court 
shall have the power to restrict the payment of a claimant's damage 
recovery to such attorney, and to redirect such damages to the claimant 
based upon the interests of justice and principles of equity. In no 
event shall the total of all contingent fees for representing all 
claimants in a health care lawsuit exceed the following limits:
            (1) Forty percent of the first $50,000 recovered by the 
        claimant(s).
            (2) Thirty-three and one-third percent of the next $50,000 
        recovered by the claimant(s).
            (3) Twenty-five percent of the next $500,000 recovered by 
        the claimant(s).
            (4) Fifteen percent of any amount by which the recovery by 
        the claimant(s) is in excess of $600,000.
    (b) Applicability.--The limitations in this section shall apply 
whether the recovery is by judgment, settlement, mediation, 
arbitration, or any other form of alternative dispute resolution. In a 
health care lawsuit involving a minor or incompetent person, a court 
retains the authority to authorize or approve a fee that is less than 
the maximum permitted under this section. The requirement for court 
supervision in the first two sentences of subsection (a) applies only 
in civil actions.

SEC. 405. PUNITIVE DAMAGES.

    (a) In General.--Punitive damages may, if otherwise permitted by 
applicable State or Federal law, be awarded against any person in a 
health care lawsuit only if it is proven by clear and convincing 
evidence that such person acted with malicious intent to injure the 
claimant, or that such person deliberately failed to avoid unnecessary 
injury that such person knew the claimant was substantially certain to 
suffer. In any health care lawsuit where no judgment for compensatory 
damages is rendered against such person, no punitive damages may be 
awarded with respect to the claim in such lawsuit. No demand for 
punitive damages shall be included in a health care lawsuit as 
initially filed. A court may allow a claimant to file an amended 
pleading for punitive damages only upon a motion by the claimant and 
after a finding by the court, upon review of supporting and opposing 
affidavits or after a hearing, after weighing the evidence, that the 
claimant has established by a substantial probability that the claimant 
will prevail on the claim for punitive damages. At the request of any 
party in a health care lawsuit, the trier of fact shall consider in a 
separate proceeding--
            (1) whether punitive damages are to be awarded and the 
        amount of such award; and
            (2) the amount of punitive damages following a 
        determination of punitive liability.
If a separate proceeding is requested, evidence relevant only to the 
claim for punitive damages, as determined by applicable State law, 
shall be inadmissible in any proceeding to determine whether 
compensatory damages are to be awarded.
    (b) Determining Amount of Punitive Damages.--
            (1) Factors considered.--In determining the amount of 
        punitive damages, if awarded, in a health care lawsuit, the 
        trier of fact shall consider only the following--
                    (A) the severity of the harm caused by the conduct 
                of such party;
                    (B) the duration of the conduct or any concealment 
                of it by such party;
                    (C) the profitability of the conduct to such party;
                    (D) the number of products sold or medical 
                procedures rendered for compensation, as the case may 
                be, by such party, of the kind causing the harm 
                complained of by the claimant;
                    (E) any criminal penalties imposed on such party, 
                as a result of the conduct complained of by the 
                claimant; and
                    (F) the amount of any civil fines assessed against 
                such party as a result of the conduct complained of by 
                the claimant.
            (2) Maximum award.--The amount of punitive damages, if 
        awarded, in a health care lawsuit may be as much as $250,000 or 
        as much as two times the amount of economic damages awarded, 
        whichever is greater. The jury shall not be informed of this 
        limitation.
    (c) No Punitive Damages for Products That Comply With FDA 
Standards.--
            (1) In general.--
                    (A) No punitive damages may be awarded against the 
                manufacturer or distributor of a medical product, or a 
                supplier of any component or raw material of such 
                medical product, based on a claim that such product 
                caused the claimant's harm where--
                            (i)(I) such medical product was subject to 
                        premarket approval, clearance, or licensure by 
                        the Food and Drug Administration with respect 
                        to the safety of the formulation or performance 
                        of the aspect of such medical product which 
                        caused the claimant's harm or the adequacy of 
                        the packaging or labeling of such medical 
                        product; and
                            (II) such medical product was so approved, 
                        cleared, or licensed; or
                            (ii) such medical product is generally 
                        recognized among qualified experts as safe and 
                        effective pursuant to conditions established by 
                        the Food and Drug Administration and applicable 
                        Food and Drug Administration regulations, 
                        including without limitation those related to 
                        packaging and labeling, unless the Food and 
                        Drug Administration has determined that such 
                        medical product was not manufactured or 
                        distributed in substantial compliance with 
                        applicable Food and Drug Administration 
                        statutes and regulations.
                    (B) Rule of construction.--Subparagraph (A) may not 
                be construed as establishing the obligation of the Food 
                and Drug Administration to demonstrate affirmatively 
                that a manufacturer, distributor, or supplier referred 
                to in such subparagraph meets any of the conditions 
                described in such subparagraph.
            (2) Liability of health care providers.--A health care 
        provider who prescribes, or who dispenses pursuant to a 
        prescription, a medical product approved, licensed, or cleared 
        by the Food and Drug Administration shall not be named as a 
        party to a product liability lawsuit involving such product and 
        shall not be liable to a claimant in a class action lawsuit 
        against the manufacturer, distributor, or seller of such 
        product. Nothing in this paragraph prevents a court from 
        consolidating cases involving health care providers and cases 
        involving products liability claims against the manufacturer, 
        distributor, or product seller of such medical product.
            (3) Packaging.--In a health care lawsuit for harm which is 
        alleged to relate to the adequacy of the packaging or labeling 
        of a drug which is required to have tamper-resistant packaging 
        under regulations of the Secretary of Health and Human Services 
        (including labeling regulations related to such packaging), the 
        manufacturer or product seller of the drug shall not be held 
        liable for punitive damages unless such packaging or labeling 
        is found by the trier of fact by clear and convincing evidence 
        to be substantially out of compliance with such regulations.
            (4) Exception.--Paragraph (1) shall not apply in any health 
        care lawsuit in which--
                    (A) a person, before or after premarket approval, 
                clearance, or licensure of such medical product, 
                knowingly misrepresented to or withheld from the Food 
                and Drug Administration information that is required to 
                be submitted under the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 301 et seq.) or section 351 of the 
                Public Health Service Act (42 U.S.C. 262) that is 
                material and is causally related to the harm which the 
                claimant allegedly suffered
                    (B) a person made an illegal payment to an official 
                of the Food and Drug Administration for the purpose of 
                either securing or maintaining approval, clearance, or 
                licensure of such medical product; or
                    (C) the defendant caused the medical product which 
                caused the claimant's harm to be misbranded or 
                adulterated (as such terms are used in chapter V of the 
                Federal Food, Drug, and Cosmetic Act (21 U.S.C. 351 et 
                seq.)).

SEC. 406. AUTHORIZATION OF PAYMENT OF FUTURE DAMAGES TO CLAIMANTS IN 
              HEALTH CARE LAWSUITS.

    (a) In General.--In any health care lawsuit, if an award of future 
damages, without reduction to present value, equaling or exceeding 
$50,000 is made against a party with sufficient insurance or other 
assets to fund a periodic payment of such a judgment, the court shall, 
at the request of any party, enter a judgment ordering that the future 
damages be paid by periodic payments, in accordance with the Uniform 
Periodic Payment of Judgments Act promulgated by the National 
Conference of Commissioners on Uniform State Laws.
    (b) Applicability.--This section applies to all actions which have 
not been first set for trial or retrial before the effective date of 
this title.

SEC. 407. DEFINITIONS.

    In this title:
            (1) Alternative dispute resolution system; adr.--The term 
        ``alternative dispute resolution system'' or ``ADR'' means a 
        system that provides for the resolution of health care lawsuits 
        in a manner other than through a civil action brought in a 
        State or Federal court.
            (2) Claimant.--The term ``claimant'' means any person who 
        brings a health care lawsuit, including a person who asserts or 
        claims a right to legal or equitable contribution, indemnity, 
        or subrogation, arising out of a health care liability claim or 
        action, and any person on whose behalf such a claim is asserted 
        or such an action is brought, whether deceased, incompetent, or 
        a minor.
            (3) Compensatory damages.--The term ``compensatory 
        damages'' means objectively verifiable monetary losses incurred 
        as a result of the provision of, use of, or payment for (or 
        failure to provide, use, or pay for) health care services or 
        medical products, such as past and future medical expenses, 
        loss of past and future earnings, cost of obtaining domestic 
        services, loss of employment, and loss of business or 
        employment opportunities, damages for physical and emotional 
        pain, suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss of 
        society and companionship, loss of consortium (other than loss 
        of domestic service), hedonic damages, injury to reputation, 
        and all other nonpecuniary losses of any kind or nature. The 
        term ``compensatory damages'' includes economic damages and 
        noneconomic damages, as such terms are defined in this section.
            (4) Contingent fee.--The term ``contingent fee'' includes 
        all compensation to any person or persons which is payable only 
        if a recovery is effected on behalf of one or more claimants.
            (5) Economic damages.--The term ``economic damages'' means 
        objectively verifiable monetary losses incurred as a result of 
        the provision of, use of, or payment for (or failure to 
        provide, use, or pay for) health care services or medical 
        products, such as past and future medical expenses, loss of 
        past and future earnings, cost of obtaining domestic services, 
        loss of employment, and loss of business or employment 
        opportunities.
            (6) Health care lawsuit.--The term ``health care lawsuit'' 
        means any health care liability claim concerning the provision 
        of health care goods or services or any medical product 
        affecting interstate commerce, or any health care liability 
        action concerning the provision of health care goods or 
        services or any medical product affecting interstate commerce, 
        brought in a State or Federal court or pursuant to an 
        alternative dispute resolution system, against a health care 
        provider, a health care organization, or the manufacturer, 
        distributor, supplier, marketer, promoter, or seller of a 
        medical product, regardless of the theory of liability on which 
        the claim is based, or the number of claimants, plaintiffs, 
        defendants, or other parties, or the number of claims or causes 
        of action, in which the claimant alleges a health care 
        liability claim. Such term does not include a claim or action 
        which is based on criminal liability; which seeks civil fines 
        or penalties paid to Federal, State, or local government; or 
        which is grounded in antitrust.
            (7) Health care liability action.--The term ``health care 
        liability action'' means a civil action brought in a State or 
        Federal court or pursuant to an alternative dispute resolution 
        system, against a health care provider, a health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, regardless 
        of the theory of liability on which the claim is based, or the 
        number of plaintiffs, defendants, or other parties, or the 
        number of causes of action, in which the claimant alleges a 
        health care liability claim.
            (8) Health care liability claim.--The term ``health care 
        liability claim'' means a demand by any person, whether or not 
        pursuant to ADR, against a health care provider, health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, including, 
        but not limited to, third-party claims, cross-claims, counter-
        claims, or contribution claims, which are based upon the 
        provision of, use of, or payment for (or the failure to 
        provide, use, or pay for) health care services or medical 
        products, regardless of the theory of liability on which the 
        claim is based, or the number of plaintiffs, defendants, or 
        other parties, or the number of causes of action.
            (9) Health care organization.--The term ``health care 
        organization'' means any person or entity which is obligated to 
        provide or pay for health benefits under any health plan, 
        including any person or entity acting under a contract or 
        arrangement with a health care organization to provide or 
        administer any health benefit.
            (10) Health care provider.--The term ``health care 
        provider'' means any person or entity required by State or 
        Federal laws or regulations to be licensed, registered, or 
        certified to provide health care services, and being either so 
        licensed, registered, or certified, or exempted from such 
        requirement by other statute or regulation.
            (11) Health care goods or services.--The term ``health care 
        goods or services'' means any goods or services provided by a 
        health care organization, provider, or by any individual 
        working under the supervision of a health care provider, that 
        relates to the diagnosis, prevention, or treatment of any human 
        disease or impairment, or the assessment or care of the health 
        of human beings.
            (12) Malicious intent to injure.--The term ``malicious 
        intent to injure'' means intentionally causing or attempting to 
        cause physical injury other than providing health care goods or 
        services.
            (13) Medical product.--The term ``medical product'' means a 
        drug, device, or biological product intended for humans, and 
        the terms ``drug'', ``device'', and ``biological product'' have 
        the meanings given such terms in sections 201(g)(1) and 201(h) 
        of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321(g)(1) 
        and (h)) and section 351(a) of the Public Health Service Act 
        (42 U.S.C. 262(a)), respectively, including any component or 
        raw material used therein, but excluding health care services.
            (14) Noneconomic damages.--The term ``noneconomic damages'' 
        means damages for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation, and all other 
        nonpecuniary losses of any kind or nature.
            (15) Punitive damages.--The term ``punitive damages'' means 
        damages awarded, for the purpose of punishment or deterrence, 
        and not solely for compensatory purposes, against a health care 
        provider, health care organization, or a manufacturer, 
        distributor, or supplier of a medical product. Punitive damages 
        are neither economic nor noneconomic damages.
            (16) Recovery.--The term ``recovery'' means the net sum 
        recovered after deducting any disbursements or costs incurred 
        in connection with prosecution or settlement of the claim, 
        including all costs paid or advanced by any person. Costs of 
        health care incurred by the plaintiff and the attorneys' office 
        overhead costs or charges for legal services are not deductible 
        disbursements or costs for such purpose.
            (17) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the Northern 
        Mariana Islands, the Trust Territory of the Pacific Islands, 
        and any other territory or possession of the United States, or 
        any political subdivision thereof.

SEC. 408. EFFECT ON OTHER LAWS.

    (a) Vaccine Injury.--
            (1) To the extent that title XXI of the Public Health 
        Service Act establishes a Federal rule of law applicable to a 
        civil action brought for a vaccine-related injury or death--
                    (A) this title does not affect the application of 
                the rule of law to such an action; and
                    (B) any rule of law prescribed by this title in 
                conflict with a rule of law of such title XXI shall not 
                apply to such action.
            (2) If there is an aspect of a civil action brought for a 
        vaccine-related injury or death to which a Federal rule of law 
        under title XXI of the Public Health Service Act does not 
        apply, then this title or otherwise applicable law (as 
        determined under this title) will apply to such aspect of such 
        action.
    (b) Other Federal Law.--Except as provided in this section, nothing 
in this title shall be deemed to affect any defense available to a 
defendant in a health care lawsuit or action under any other provision 
of Federal law.

SEC. 409. STATE FLEXIBILITY AND PROTECTION OF STATES' RIGHTS.

    (a) Health Care Lawsuits.--The provisions governing health care 
lawsuits set forth in this title preempt, subject to subsections (b) 
and (c), State law to the extent that State law prevents the 
application of any provisions of law established by or under this 
title. The provisions governing health care lawsuits set forth in this 
title supersede chapter 171 of title 28, United States Code, to the 
extent that such chapter--
            (1) provides for a greater amount of damages or contingent 
        fees, a longer period in which a health care lawsuit may be 
        commenced, or a reduced applicability or scope of periodic 
        payment of future damages, than provided in this title; or
            (2) prohibits the introduction of evidence regarding 
        collateral source benefits, or mandates or permits subrogation 
        or a lien on collateral source benefits.
    (b) Protection of States' Rights and Other Laws.--(1) Any issue 
that is not governed by any provision of law established by or under 
this title (including State standards of negligence) shall be governed 
by otherwise applicable State or Federal law.
    (2) This title shall not preempt or supersede any State or Federal 
law that imposes greater procedural or substantive protections for 
health care providers and health care organizations from liability, 
loss, or damages than those provided by this title or create a cause of 
action.
    (c) State Flexibility.--No provision of this title shall be 
construed to preempt--
            (1) any State law (whether effective before, on, or after 
        the date of the enactment of this Act) that specifies a 
        particular monetary amount of compensatory or punitive damages 
        (or the total amount of damages) that may be awarded in a 
        health care lawsuit, regardless of whether such monetary amount 
        is greater or lesser than is provided for under this title, 
        notwithstanding section 303(a); or
            (2) any defense available to a party in a health care 
        lawsuit under any other provision of State or Federal law.

SEC. 410. APPLICABILITY; EFFECTIVE DATE.

    This title shall apply to any health care lawsuit brought in a 
Federal or State court, or subject to an alternative dispute resolution 
system, that is initiated on or after the date of the enactment of this 
Act, except that any health care lawsuit arising from an injury 
occurring prior to the date of the enactment of this Act shall be 
governed by the applicable statute of limitations provisions in effect 
at the time the injury occurred.

         TITLE V--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

SEC. 501. RETIREMENT CONTRIBUTIONS.

    (a) Civil Service Retirement System.--
            (1) Individual contributions.--Section 8334(c) of title 5, 
        United States Code, is amended--
                    (A) by striking ``(c) Each'' and inserting ``(c)(1) 
                Each''; and
                    (B) by adding at the end the following:
    ``(2) Notwithstanding any other provision of this subsection, the 
applicable percentage of basic pay under this subsection shall--
            ``(A) except as provided in subparagraph (B) or (C), for 
        purposes of computing an amount--
                    ``(i) for a period in calendar year 2013, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2012, plus an additional 1.5 percentage 
                points;
                    ``(ii) for a period in calendar year 2014, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2013 (as determined under clause (i)), 
                plus an additional 0.5 percentage point;
                    ``(iii) for a period in calendar year 2015, 2016, 
                or 2017, be equal to the applicable percentage under 
                this subsection for the preceding calendar year (as 
                determined under clause (ii) or this clause, as the 
                case may be), plus an additional 1.0 percentage point; 
                and
                    ``(iv) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                subsection for calendar year 2017 (as determined under 
                clause (iii));
            ``(B) for purposes of computing an amount with respect to a 
        Member for Member service--
                    ``(i) for a period in calendar year 2013, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2012, plus an additional 2.5 percentage 
                points;
                    ``(ii) for a period in calendar year 2014, 2015, 
                2016, or 2017, be equal to the applicable percentage 
                under this subsection for the preceding calendar year 
                (as determined under clause (i) or this clause, as the 
                case may be), plus an additional 1.5 percentage points; 
                and
                    ``(iii) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                subsection for calendar year 2017 (as determined under 
                clause (ii)); and
            ``(C) for purposes of computing an amount with respect to a 
        Member or employee for Congressional employee service--
                    ``(i) for a period in calendar year 2013, be equal 
                to the applicable percentage under this subsection for 
                calendar year 2012, plus an additional 2.5 percentage 
                points;
                    ``(ii) for a period in calendar year 2014, 2015, 
                2016, or 2017, be equal to the applicable percentage 
                under this subsection for the preceding calendar year 
                (as determined under clause (i) or this clause, as the 
                case may be), plus an additional 1.5 percentage points; 
                and
                    ``(iii) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                subsection for calendar year 2017 (as determined under 
                clause (ii)).''.
            (2) Government contributions.--Section 8334(a)(1)(B) of 
        title 5, United States Code, is amended--
                    (A) in clause (i), by striking ``Except as provided 
                in clause (ii),'' and inserting ``Except as provided in 
                clause (ii) or (iii),''; and
                    (B) by adding at the end the following:
    ``(iii) The amount to be contributed under clause (i) shall, with 
respect to a period in any year beginning after December 31, 2012, be 
equal to--
            ``(I) the amount which would otherwise apply under clause 
        (i) with respect to such period, reduced by
            ``(II) the amount by which, with respect to such period, 
        the withholding under subparagraph (A) exceeds the amount which 
        would otherwise have been withheld from the basic pay of the 
        employee or elected official involved under subparagraph (A) 
        based on the percentage applicable under subsection (c) for 
        calendar year 2012.''.
    (b) Federal Employees' Retirement System.--Section 8422(a)(3) of 
title 5, United States Code, is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C);
            (2) by inserting after subparagraph (A) the following:
    ``(B) Notwithstanding any other provision of this paragraph, the 
applicable percentage under this paragraph shall--
            ``(i) except as provided in clause (ii) or (iii), for 
        purposes of computing an amount--
                    ``(I) for a period in calendar year 2013, be equal 
                to the applicable percentage under this paragraph for 
                calendar year 2012, plus an additional 1.5 percentage 
                points;
                    ``(II) for a period in calendar year 2014, be equal 
                to the applicable percentage under this paragraph for 
                calendar year 2013 (as determined under subclause (I)), 
                plus an additional 0.5 percentage point;
                    ``(III) for a period in calendar year 2015, 2016, 
                or 2017, be equal to the applicable percentage under 
                this paragraph for the preceding calendar year (as 
                determined under subclause (II) or this subclause, as 
                the case may be), plus an additional 1.0 percentage 
                point; and
                    ``(IV) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                paragraph for calendar year 2017 (as determined under 
                subclause (III));
            ``(ii) for purposes of computing an amount with respect to 
        a Member--
                    ``(I) for a period in calendar year 2013, be equal 
                to the applicable percentage under this paragraph for 
                calendar year 2012, plus an additional 2.5 percentage 
                points;
                    ``(II) for a period in calendar year 2014, 2015, 
                2016, or 2017, be equal to the applicable percentage 
                under this paragraph for the preceding calendar year 
                (as determined under subclause (I) or this subclause, 
                as the case may be), plus an additional 1.5 percentage 
                points; and
                    ``(III) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                paragraph for calendar year 2017 (as determined under 
                subclause (II)); and
            ``(iii) for purposes of computing an amount with respect to 
        a Congressional employee--
                    ``(I) for a period in calendar year 2013, 2014, 
                2015, 2016, or 2017, be equal to the applicable 
                percentage under this paragraph for the preceding 
                calendar year (including as increased under this 
                subclause, if applicable), plus an additional 1.5 
                percentage points; and
                    ``(II) for a period in any calendar year after 
                2017, be equal to the applicable percentage under this 
                paragraph for calendar year 2017 (as determined under 
                subclause (I)).''; and
            (3) in subparagraph (C) (as so redesignated by paragraph 
        (1))--
                    (A) by striking ``9.3'' each place it appears and 
                inserting ``12''; and
                    (B) by striking ``9.8'' each place it appears and 
                inserting ``12.5''.

SEC. 502. ANNUITY SUPPLEMENT.

    Section 8421(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)'';
            (2) in paragraph (2), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)''; and
            (3) by adding at the end the following:
    ``(4)(A) Except as provided in subparagraph (B), no annuity 
supplement under this section shall be payable in the case of an 
individual who first becomes subject to this chapter after December 31, 
2012.
    ``(B) Nothing in this paragraph applies in the case of an 
individual separating under subsection (d) or (e) of section 8412.''.

SEC. 503. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF PAYMENTS FOR ACCRUED 
              OR ACCUMULATED LEAVE.

    (a) Amendments Relating to CSRS.--Section 8351(b) of title 5, 
United States Code, is amended--
            (1) by striking paragraph (2)(A) and inserting the 
        following:
    ``(2)(A) An employee or Member may contribute to the Thrift Savings 
Fund in any pay period any amount of such employee's or Member's basic 
pay for such pay period, and may contribute (by direct transfer to the 
Fund) any part of any payment that the employee or Member receives for 
accumulated and accrued annual or vacation leave under section 5551 or 
5552. Notwithstanding section 2105(e), in this paragraph the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.'';
            (2) by striking subparagraph (B) of paragraph (2); and
            (3) by redesignating subparagraph (C) of paragraph (2) as 
        subparagraph (B).
    (b) Amendments Relating to FERS.--Section 8432(a) of title 5, 
United States Code, is amended--
            (1) by striking all that precedes paragraph (3) and 
        inserting the following:
    ``(a)(1) An employee or Member--
            ``(A) may contribute to the Thrift Savings Fund in any pay 
        period, pursuant to an election under subsection (b), any 
        amount of such employee's or Member's basic pay for such pay 
        period; and
            ``(B) may contribute (by direct transfer to the Fund) any 
        part of any payment that the employee or Member receives for 
        accumulated and accrued annual or vacation leave under section 
        5551 or 5552.
    ``(2) Contributions made under paragraph (1)(A) pursuant to an 
election under subsection (b) shall, with respect to each pay period 
for which such election remains in effect, be made in accordance with a 
program of regular contributions provided in regulations prescribed by 
the Executive Director.''; and
            (2) by adding at the end the following:
    ``(4) Notwithstanding section 2105(e), in this subsection the term 
`employee' includes an employee of the United States Postal Service or 
of the Postal Regulatory Commission.''.
    (c) Regulations.--The Executive Director of the Federal Retirement 
Thrift Investment Board shall promulgate regulations to carry out the 
amendments made by this section.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect 1 year after the date of the enactment of this Act.

                 TITLE VI--COMMITTEE ON WAYS AND MEANS

Subtitle A--Recapture of Overpayments Resulting From Certain Federally-
                      subsidized Health Insurance

SEC. 601. RECAPTURE OF OVERPAYMENTS RESULTING FROM CERTAIN FEDERALLY-
              SUBSIDIZED HEALTH INSURANCE.

    (a) In General.--Paragraph (2) of section 36B(f) of the Internal 
Revenue Code of 1986 is amended by striking subparagraph (B).
    (b) Conforming Amendment.--So much of paragraph (2) of section 
36B(f) of such Code, as amended by subsection (a), as precedes 
``advance payments'' is amended to read as follows:
            ``(2) Excess advance payments.--If the''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2013.

  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.

    (a) In General.--Subsection (d) of section 24 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Identification requirement with respect to 
        taxpayer.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any taxpayer for any taxable year unless the taxpayer 
                includes the taxpayer's Social Security number on the 
                return of tax for such taxable year.
                    ``(B) Joint returns.--In the case of a joint 
                return, the requirement of subparagraph (A) shall be 
                treated as met if the Social Security number of either 
                spouse is included on such return.
                    ``(C) Limitation.--Subparagraph (A) shall not apply 
                to the extent the tentative minimum tax (as defined in 
                section 55(b)(1)(A)) exceeds the credit allowed under 
                section 32.''.
    (b) Omission Treated as Mathematical or Clerical Error.--
Subparagraph (I) of section 6213(g)(2) of such Code is amended to read 
as follows:
                    ``(I) an omission of a correct Social Security 
                number required under section 24(d)(5) (relating to 
                refundable portion of child tax credit), or a correct 
                TIN under section 24(e) (relating to child tax credit), 
                to be included on a return,''.
    (c) Conforming Amendment.--Subsection (e) of section 24 of such 
Code is amended by inserting ``With Respect to Qualifying Children'' 
after ``Identification Requirement'' in the heading thereof.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

                 Subtitle C--Human Resources Provisions

SEC. 621. REPEAL OF THE PROGRAM OF BLOCK GRANTS TO STATES FOR SOCIAL 
              SERVICES.

    (a) Repeals.--Sections 2001 through 2007 of the Social Security Act 
(42 U.S.C. 1397-1397f) are repealed.
    (b) Conforming Amendments.--
            (1) Section 404(d) of the Social Security Act (42 U.S.C. 
        604(d)) is amended--
                    (A) in paragraph (1), by striking ``any or all of 
                the following provisions of law:'' and all that follows 
                through ``The'' and inserting ``the'';
                    (B) in paragraph (3)--
                            (i) by striking ``rules'' and all that 
                        follows through ``any amount paid'' and 
                        inserting ``rules.--Any amount paid'';
                            (ii) by striking ``a provision of law 
                        specified in paragraph (1)'' and inserting 
                        ``the Child Care and Development Block Grant 
                        Act of 1990''; and
                            (iii) by striking subparagraph (B); and
                    (C) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).
            (2) Section 422(b) of the Social Security Act (42 U.S.C. 
        622(b)) is amended--
                    (A) in paragraph (1)(A)--
                            (i) by striking ``administers or 
                        supervises'' and inserting ``administered or 
                        supervised''; and
                            (ii) by striking ``subtitle 1 of title XX'' 
                        and inserting ``subtitle A of title XX (as in 
                        effect before the repeal of such subtitle)''; 
                        and
                    (B) in paragraph (2), by striking ``under subtitle 
                1 of title XX,''.
            (3) Section 471(a) of the Social Security Act (42 U.S.C. 
        671(a)) is amended--
                    (A) in paragraph (4), by striking ``, under 
                subtitle 1 of title XX of this Act,''; and
                    (B) in paragraph (8), by striking ``XIX, or XX'' 
                and inserting ``or XIX''.
            (4) Section 472(h)(1) of the Social Security Act (42 U.S.C. 
        672(h)(1)) is amended by striking the 2nd sentence.
            (5) Section 473(b) of the Social Security Act (42 U.S.C. 
        673(b)) is amended--
                    (A) in paragraph (1), by striking ``(3)'' and 
                inserting ``(2)'';
                    (B) in paragraph (4), by striking ``paragraphs (1) 
                and (2)'' and inserting ``paragraph (1)''; and
                    (C) by striking paragraph (2) and redesignating 
                paragraphs (3) and (4) as paragraphs (2) and (3), 
                respectively.
            (6) Section 504(b)(6) of the Social Security Act (42 U.S.C. 
        704(b)(6)) is amended in each of subparagraphs (A) and (B) by 
        striking ``XIX, or XX'' and inserting ``or XIX''.
            (7) Section 1101(a)(1) of the Social Security Act (42 
        U.S.C. 1301(a)(1)) is amended by striking the penultimate 
        sentence.
            (8) Section 1128(h) of the Social Security Act (42 U.S.C. 
        1320a-7(h)) is amended--
                    (A) by adding ``or'' at the end of paragraph (2); 
                and
                    (B) by striking paragraph (3) and redesignating 
                paragraph (4) as paragraph (3).
            (9) Section 1128A(i)(1) of the Social Security Act (42 
        U.S.C. 1320a-7a(i)(1)) is amended by striking ``or subtitle 1 
        of title XX''.
            (10) Section 1132(a)(1) of the Social Security Act (42 
        U.S.C. 1320b-2(a)(1)) is amended by striking ``XIX, or XX'' and 
        inserting ``or XIX''.
            (11) Section 1902(e)(13)(F)(iii) of the Social Security Act 
        (42 U.S.C. 1396a(e)(13)(F)(iii)) is amended--
                    (A) by striking ``Exclusions'' and inserting 
                ``Exclusion''; and
                    (B) by striking ``an agency that determines 
                eligibility for a program established under the Social 
                Services Block Grant established under title XX or''.
            (12) The heading for title XX of the Social Security Act is 
        amended by striking ``BLOCK GRANTS TO STATES FOR SOCIAL 
        SERVICES'' and inserting ``HEALTH PROFESSIONS DEMONSTRATIONS 
        AND ENVIRONMENTAL HEALTH CONDITION DETECTION''.
            (13) The heading for subtitle A of title XX of the Social 
        Security Act is amended by striking ``Block Grants to States 
        for Social Services'' and inserting ``Health Professions 
        Demonstrations and Environmental Health Condition Detection''.
            (14) Section 16(k)(5)(B)(i) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2025(k)(5)(B)(i)) is amended by striking ``, 
        or title XX,''.
            (15) Section 402(b)(3) of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
        1612(b)(3)) is amended by striking subparagraph (B) and 
        redesignating subparagraph (C) as subparagraph (B).
            (16) Section 245A(h)(4)(I) of the Immigration Reform and 
        Control Act of 1986 (8 U.S.C. 1255a(h)(4)(I)) is amended by 
        striking ``, XVI, and XX'' and inserting ``and XVI''.
            (17) Section 17 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1766) is amended--
                    (A) in subsection (a)(2)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``--'' and all that 
                                follows through ``(i)'';
                                    (II) by striking ``or'' at the end 
                                of clause (i); and
                                    (III) by striking clause (ii); and
                            (ii) in subparagraph (D)(ii), by striking 
                        ``or title XX''; and
                    (B) in subsection (o)(2)(B)--
                            (i) by striking ``or title XX'' each place 
                        it appears; and
                            (ii) by striking ``or XX''.
            (18) Section 201(b) of the Indian Child Welfare Act of 1978 
        (25 U.S.C. 1931(b)) is amended by striking ``titles IV-B and 
        XX'' each place it appears and inserting ``part B of title 
        IV''.
            (19) Section 3803(c)(2)(C) of title 31, United States Code, 
        is amended by striking clause (vi) and redesignating clauses 
        (vii) through (xvi) as clauses (vi) through (xv), respectively.
            (20) Section 14502(d)(3) of title 40, United States Code, 
        is amended--
                    (A) by striking ``and title XX''; and
                    (B) by striking ``, 1397 et seq.''.
            (21) Section 2006(a)(15) of the Public Health Service Act 
        (42 U.S.C. 300z-5(a)(15)) is amended by striking ``and title 
        XX''.
            (22) Section 203(b)(3) of the Older Americans Act of 1965 
        (42 U.S.C. 3013(b)(3)) is amended by striking ``XIX, and XX'' 
        and inserting ``and XIX''.
            (23) Section 213 of the Older Americans Act of 1965 (42 
        U.S.C. 3020d) is amended by striking ``or title XX''.
            (24) Section 306(d) of the Older Americans Act of 1965 (42 
        U.S.C. 3026(d)) is amended in each of paragraphs (1) and (2) by 
        striking ``titles XIX and XX'' and inserting ``title XIX''.
            (25) Section 2605 of the Low-Income Home Energy Assistance 
        Act of 1981 (42 U.S.C. 8624) is amended in each of subsections 
        (b)(4) and (j) by striking ``under title XX of the Social 
        Security Act,''.
            (26) Section 602 of the Child Development Associate 
        Scholarship Assistance Act of 1985 (42 U.S.C. 10901) is 
        repealed.
            (27) Section 3(d)(1) of the Assisted Suicide Funding 
        Restriction Act of 1997 (42 U.S.C. 14402(d)(1)) is amended by 
        striking subparagraph (C) and redesignating subparagraphs (D) 
        through (K) as subparagraphs (C) through (J), respectively.
    (c) Effective Date.--The repeals and amendments made by this 
section shall take effect on October 1, 2012.
                                                 Union Calendar No. 330

112th CONGRESS

  2d Session

                               H. R. 5652

                          [Report No. 112-470]

_______________________________________________________________________

                                 A BILL

To provide for reconciliation pursuant to section 201 of the concurrent 
             resolution on the budget for fiscal year 2013.

_______________________________________________________________________

                              May 9, 2012

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
```