II

103D CONGRESS

1ST SESSION S. 1405

To strengthen the National Flood Insurance Program and to reduce risk

to the national flood insurance fund by increasing compliance, providing

incentives for community floodplain management, providing for mitigation

assistance, and for other purposes.

IN THE SENATE OF THE UNITED STATES

AUGUST 6 (legislative day, JUNE 30), 1993

Mr. KERRY introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To strengthen the National Flood Insurance Program and

to reduce risk to the national flood insurance fund by

increasing compliance, providing incentives for community floodplain management, providing for mitigation assistance, and for other purposes.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘National Flood Insurance Reform Act of 1993’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:
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Sec. 1. Short title and table of contents.

Sec. 2. Congressional findings.

Sec. 3. Declaration of purpose under the National Flood Insurance Act of

1968.

TITLE I—DEFINITIONS

Sec. 101. Flood Disaster Protection Act of 1973.

Sec. 102. National Flood Insurance Act of 1968.

TITLE II—COMPLIANCE AND INCREASED PARTICIPATION

Sec. 201. Expanded flood insurance purchase requirements.

Sec. 202. Escrow of flood insurance payments.

Sec. 203. Notice requirements.

Sec. 204. Placement of flood insurance by regulated lending institution or Federal agency lender.

Sec. 205. Standard flood hazard determination forms.

Sec. 206. Examinations regarding compliance by regulated lending institutions.

Sec. 207. Penalties and corrective actions for failure to require flood insurance,

escrow, or notify.

Sec. 208. Financial Institutions Examination Council.

Sec. 209. Conforming amendment.

TITLE III—RATINGS AND INCENTIVES FOR COMMUNITY

FLOODPLAIN MANAGEMENT PROGRAMS

Sec. 301. Community rating system and incentives for community floodplain

management.

Sec. 302. Funding.

TITLE IV—MITIGATION OF FLOOD AND EROSION RISKS

Sec. 401. Mitigation assistance in Federal Insurance Administration.

Sec. 402. Authorization of National Flood and Erosion Mitigation Funds under

section 1362.

Sec. 403. State and community mitigation assistance program.

Sec. 404. Repeal of program for purchase of certain insured properties.

Sec. 405. Termination of erosion threatened structures program.

Sec. 406. Limitations on new flood insurance coverage in erosion hazard areas.

Sec. 407. Riverine erosion study.

Sec. 408. Coordination with coastal zone management programs.

TITLE V—FLOOD INSURANCE TASK FORCE

Sec. 501. Flood Insurance Interagency Task Force.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Maximum flood insurance coverage amounts.

Sec. 602. Additional coverage for compliance with land use and control measures.

Sec. 603. Flood insurance program arrangements with private insurance entities.

Sec. 604. Updating of flood insurance maps and identification of erosion hazard

areas.

Sec. 605. Technical Mapping Advisory Council.

Sec. 606. Funding for increased administrative and operational responsibilities.
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Sec. 607. Regulations.

1 SEC. 2. CONGRESSIONAL FINDINGS.

2 The Congress finds that—

3 (1) unprecedented growth in population and de4 velopment has occurred along the coasts and rivers

5 of the United States and a significant portion of the

6 United States population is exposed to the hazards

7 of flood, mudslide, and erosion damage;

8 (2) the number of properties insured against

9 floods remained roughly constant during the 1980’s,

10 despite continuing growth in real estate activity in

11 coastal, lakeshore, and riverine areas, and the level

12 of flood insurance coverage that an individual can

13 purchase has not been increased since 1977;

14 (3) due to substantial increases in construction

15 costs, many property owners are prevented from

16 purchasing flood insurance for the replacement value

17 of the building, potentially resulting in an owner not

18 receiving a payment to fully restore flood-damaged

19 property;

20 (4) since 1989, there has been a significant in21 crease in the incidence of major storms and hurri22 canes and severity of related damages in the United

23 States;

24 (5) as a consequence of the increase in the inci25 dence of storms, the national flood insurance fund
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1 has been depleted, creating the risk of borrowing

2 from the Treasury, and threatening to exacerbate

3 the Federal budget deficit;

4 (6) no comprehensive Federal program exists to

5 assist in the removal of structures from high risk

6 areas, such as regulatory floodways and coastal high

7 hazard areas, before disaster strikes;

8 (7) no comprehensive Federal program exists to

9 evaluate and provide technical assistance and funds

10 to communities for the mitigation of damages to re11 petitively and severely damaged structures or in12 sured structures threatened by shoreline erosion,

13 and such a program would reduce the vulnerability

14 of the Federal Government to flood- and erosion-re15 lated losses;

16 (8) a Federal flood insurance program that

17 combines predisaster mitigation efforts together with

18 an insurance and compliance program will reduce

19 the physical and economic effects of flood-related

20 damage on the Federal Government, State and local

21 governments, and individuals;

22 (9) requiring regulated lending institutions,

23 government agencies, and government-sponsored en24 terprises to make sure that flood insurance coverage

25 is purchased on all properties in areas of special
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1 flood hazards in participating communities will in2 crease compliance with the program, and increase

3 the pool of funds, thereby decreasing the impact on

4 the fund of individual flood events;

5 (10) the relative rise in sea level and the fluc6 tuations in water levels of the Great Lakes expose

7 the National Flood Insurance Program to greater

8 risks, and such risks should be adequately consid9 ered in order to determine a comprehensive assess10 ment of risk under the program;

11 (11) erosion hazard areas have not been identi12 fied or adequately considered for the purposes of in13 surance established under the National Flood Insur14 ance Act of 1968;

15 (12) identification of erosion hazard areas and

16 erosion management can improve public safety,

17 guide appropriate development, and help reduce ero18 sion losses to existing structures and protect new

19 structures from erosion losses, thereby reducing

20 Federal, State, local, and private expenditures due

21 to erosion;

22 (13) a community-based approach to mitigation

23 and erosion management, to reduce losses in

24 floodplains and to minimize adverse impacts on nat25 ural and beneficial floodplain functions, is the most
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1 comprehensive, effective, and cost-efficient method

2 to reduce losses in floodplains and disaster assist3 ance expenditures, and such benefits could be en4 hanced if combined with insurance protection for in5 sured property owners to meet the increased recon6 struction costs required by Federal, State, or local

7 mitigation standards;

8 (14) incentives in the form of reduced premium

9 rates for flood insurance under the National Flood

10 Insurance Program should be provided in commu11 nities that have adopted and enforced exemplary or

12 particularly effective measures for comprehensive

13 floodplain and erosion hazard area management; and

14 (15) such community-based and individual miti15 gation and loss prevention methods and incentives

16 should be incorporated into the National Flood In17 surance Program.

18 SEC. 3. DECLARATION OF PURPOSE UNDER THE NATIONAL

19 FLOOD INSURANCE ACT OF 1968.

20 Section 1302(e) of the National Flood Insurance Act

21 of 1968 (42 U.S.C. 4001(e)) is amended—

22 (1) by redesignating paragraphs (3), (4), and

23 (5), as paragraphs (4), (5), and (6), respectively;

24 and
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1 (2) by inserting after the comma at the end of

2 paragraph (2) ‘‘(3) encourage State and local gov3 ernments and Federal agencies to protect natural

4 and beneficial floodplain functions that reduce flood5 related losses,’’.

6 TITLE I—DEFINITIONS

7 SEC. 101. FLOOD DISASTER PROTECTION ACT OF 1973.

8 (a) IN GENERAL.—Section 3(a) of the Flood Disaster

9 Protection Act of 1973 (42 U.S.C. 4003(a)) is amended—

10 (1) by striking paragraph (5) and inserting the

11 following new paragraph:

12 ‘‘(5) ‘Federal entity for lending regulation’

13 means the Board of Governors of the Federal Re14 serve System, the Federal Deposit Insurance Cor15 poration, the Comptroller of the Currency, the Office

16 of Thrift Supervision, and the National Credit

17 Union Administration Board, and with respect to a

18 particular regulated lending institution means the

19 entity primarily responsible for the supervision, ap20 proval, insuring, or regulation of the institution;’’;

21 (2) in paragraph (6), by striking the period at

22 the end and inserting a semicolon; and

23 (3) by inserting after paragraph (6) the follow24 ing new paragraphs:
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1 ‘‘(7) ‘regulated lending institution’ means a

2 bank, savings association, credit union, or similar in3 stitution subject to the supervision, approval, regula4 tion, or insuring of a Federal entity for lending reg5 ulation; and

6 ‘‘(8) the term ‘Federal agency lender’ means

7 the Federal Housing Administration, the Farm

8 Credit Administration, the Farmers Home Adminis9 tration, the Small Business Administration, and the

10 Veterans’ Administration, when such agency makes

11 loans secured by improved real estate or a manufac12 tured home.’’.

13 (b) CONFORMING AMENDMENTS.—

14 (1) REQUIREMENTS TO PURCHASE FLOOD IN15 SURANCE.—Section 102(b) of the Flood Disaster

16 Protection Act of 1973 (42 U.S.C. 4012a(b)) is

17 amended by striking ‘‘Each Federal instrumentality

18 responsible for the supervision, approval, regulation,

19 or insuring of banks, savings and loan associations,

20 or similar institutions shall by regulation direct such

21 institutions’’ and inserting ‘‘Each Federal entity for

22 lending regulation shall by regulation direct regu23 lated lending institutions’’.

24 (2) EFFECT OF NONPARTICIPATION IN FLOOD

25 INSURANCE PROGRAM.—Section 202(b) of the Flood
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1 Disaster Protection Act of 1973 (42 U.S.C.

2 4106(b)) is amended by striking ‘‘Federal instru3 mentality described in such section shall by regula4 tion require the institutions’’ and inserting ‘‘Federal

5 entity for lending regulation (with respect to regu6 lated lending institutions)’’.

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

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

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

10 amended—

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

12 end;

13 (2) in paragraph (6), by striking the period at

14 the end and inserting a semicolon; and

15 (3) by adding at the end the following new

16 paragraphs:

17 ‘‘(7) the term ‘Federal entity for lending regu18 lation’ means the Board of Governors of the Federal

19 Reserve System, the Federal Deposit Insurance Cor20 poration, the Comptroller of the Currency, the Office

21 of Thrift Supervision, and the National Credit

22 Union Administration Board, and with respect to a

23 particular regulated lending institution, means the

24 entity primarily responsible for the supervision, ap25 proval, insuring, or regulation of the institution;
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1 ‘‘(8) the term ‘regulated lending institution’

2 means a bank, savings and loan association, credit

3 union, or similar institution subject to the super4 vision, approval, regulation, or insuring of a Federal

5 entity for lending regulation;

6 ‘‘(9) the term ‘Federal agency lender’ means

7 the Federal Housing Administration, the Farm

8 Credit Administration, the Farmers Home Adminis9 tration, the Small Business Administration, and the

10 Veterans’ Administration, when such agency makes

11 loans secured by improved real estate or a manufac12 tured home;

13 ‘‘(10) the term ‘natural and beneficial flood14 plain functions’ means—

15 ‘‘(A) the functions associated with the nat16 ural or relatively undisturbed floodplain that

17 moderate flooding, retain flood waters, reduce

18 erosion and sedimentation, and mitigate the ef19 fects of waves and storm surge from storms;

20 and

21 ‘‘(B) ancillary beneficial functions, includ22 ing maintenance of water quality, recharge of

23 ground water, and provision of fish and wildlife

24 habitats;
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1 ‘‘(11) the term ‘erosion hazard area’ means,

2 based on erosion rate information and other histori3 cal data available, an area where erosion or avulsion

4 is likely to result in damage to or loss of buildings

5 and infrastructure within a 60-year period;

6 ‘‘(12) the term ‘erosion control measures’

7 means a community’s efforts to control erosion

8 through nonstructural and structural projects;

9 ‘‘(13) the term ‘baseline reference feature’

10 means an identifiable and prevalent physical or

11 mapped feature of a shoreline from which erosion

12 shall be measured;

13 ‘‘(14) the term ‘readily movable structure’

14 means a small permanent structure of less than

15 5,000 square feet that is designed, sited, and built

16 to accomplish relocation at a reasonable cost relative

17 to other structures of the same size and construction

18 and that has access of sufficient width and accept19 able grade to permit such relocation; and

20 ‘‘(15) the term ‘repetitive loss structure’ means

21 an insured property that has incurred flood-related

22 damage on 2 occasions during a 10-year period end23 ing on the date of the event for which a second

24 claim is made, in which the cost of repair, on the av-
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1 erage, equaled or exceeded 25 percent of the value

2 of the structure at the time of each flood event.’’.

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

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

5 4029(d)) is amended by striking ‘‘federally supervised, ap6 proved, regulated or insured financial institution’’ and in7 serting ‘‘regulated lending institution’’.

8 TITLE II—COMPLIANCE AND

9 INCREASED PARTICIPATION

10 SEC. 201. EXPANDED FLOOD INSURANCE PURCHASE RE11 QUIREMENTS.

12 (a) IN GENERAL.—Section 102(b) of the Flood Dis13 aster Protection Act of 1973 (42 U.S.C. 4012a(b)) (as

14 amended by section 101(b)) is further amended—

15 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’;

16 (2) by inserting before ‘‘shall by regulation’’ the

17 following: ‘‘(after consultation and coordination with

18 the Federal Financial Institutions Examination

19 Council established under the Federal Financial In20 stitutions Examination Council Act of 1974)’’; and

21 (3) by adding at the end the following new

22 paragraphs:

23 ‘‘(2) The Director of the Office of Federal Housing

24 Enterprise Oversight (after consultation and coordination

25 with the Federal Financial Institutions Examination
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1 Council) shall by regulation direct that the Federal Na2 tional Mortgage Association and the Federal Home Loan

3 Mortgage Corporation implement procedures reasonably

4 designed to assure that all loans that are—

5 ‘‘(A) secured by improved real estate or a man6 ufactured home located in an area that has been

7 identified at the time of the origination of the loan

8 by the Director of the Federal Emergency Manage9 ment Agency, as an area of special flood hazards

10 and in which flood insurance is available under the

11 National Flood Insurance Act of 1968, and

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

13 are covered for the term of the loan by flood insur14 ance in the amount provided in paragraph (1).

15 ‘‘(3) Each Federal agency lender shall implement

16 procedures reasonably designed to assure that all prop17 erty—

18 ‘‘(A) that secures loans that the Federal agency

19 lender makes, increases, extends, renews, or pur20 chases, and

21 ‘‘(B) that is improved by real estate or a manu22 factured home located in an area that has been iden23 tified at the time of the origination of the loan by

24 the Director of the Federal Emergency Management

25 Agency as an area of special flood hazards and in
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1 which flood insurance is available under the National

2 Flood Insurance Act of 1968,

3 is covered for the term of the loan by flood insurance in

4 the amount provided in paragraph (1).’’.

5 (b) EFFECTIVE DATE.—The provisions of this sec6 tion shall apply to all transactions occurring after the ex7 piration of the 1-year period beginning on the date of en8 actment of this Act.

9 SEC. 202. ESCROW OF FLOOD INSURANCE PAYMENTS.

10 (a) IN GENERAL.—Section 102 of the Flood Disaster

11 Protection Act of 1973 (42 U.S.C. 4012a) is amended by

12 adding at the end the following new subsection:

13 ‘‘(d)(1) Each Federal entity for lending regulation,

14 after consultation and coordination with the Federal Fi15 nancial Institutions Examination Council, shall by regula16 tion require that, if a regulated lending institution re17 quires the escrowing of taxes, insurance premiums, fees,

18 or any other charges for loans secured by residential real

19 estate or manufactured homes, all charges for flood insur20 ance under this title for the property shall be paid by the

21 borrower to the institution. Upon receipt of a notice from

22 the Director or the provider of the insurance that insur23 ance premiums, fees, or other charges are due, the institu24 tion shall pay from the escrow account to the provider of
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1 the insurance the amount of insurance premiums, fees or

2 other charges owed.

3 ‘‘(2) If a Federal agency lender requires the

4 escrowing of taxes, insurance premiums, fees, or any other

5 charges, then any charges for flood insurance under this

6 title for the residential real estate or the manufactured

7 home shall be paid by the borrower to the Federal agency

8 lender. Upon receipt of a notice from the Director or the

9 provider of the insurance that insurance premiums, fees,

10 or other charges are due, the Federal agency lender shall

11 pay from the escrow account to the provider of the insur12 ance the amount of insurance premiums, fees or other

13 charges owed.

14 ‘‘(3) Escrow accounts used to collect flood insurance

15 premiums, fees, or other charges under this subsection

16 shall be subject to the provisions of section 10 of the Real

17 Estate Settlement Procedures Act of 1974.’’.

18 (b) APPLICABILITY.—Section 102(d) of the Flood

19 Disaster Protection Act of 1973 (as added by subsection

20 (a)) shall apply with respect to any loan made, increased,

21 extended, or renewed after the expiration of the 1-year pe22 riod beginning on the date of enactment of this Act.

23 SEC. 203. NOTICE REQUIREMENTS.

24 Section 1364 of the National Flood Insurance Act of

25 1968 (42 U.S.C. 4104a) is amended to read as follows:
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1 ‘‘SEC. 1364. NOTICE REQUIREMENTS.

2 ‘‘(a) LENDING INSTITUTIONS.—Each Federal entity

3 for lending regulation, after consultation and coordination

4 with the Federal Financial Institutions Examination

5 Council, shall by regulation require that before a regulated

6 lending institution makes, increases, extends, or renews a

7 loan secured by improved real estate or a manufactured

8 home located in an area that has been identified by the

9 Director as an area of special flood hazards, the institu10 tion shall notify the borrower of the special flood hazards

11 and of the need to purchase and maintain flood insurance.

12 ‘‘(b) FEDERAL AGENCY LENDERS.—Before a Fed13 eral agency lender makes, increases, extends, or renews

14 a loan secured by improved real estate or a manufactured

15 home located in an area that has been identified by the

16 Director as an area of special flood hazards, the Federal

17 agency lender shall notify the borrower of the special flood

18 hazards and of the need to purchase and maintain flood

19 insurance.

20 ‘‘(c) PARTICIPATING COMMUNITIES.—The Director

21 shall by regulation require each participating community,

22 upon receiving the semiannual list prepared by the Direc23 tor of all changes, revisions, and amendments made to the

24 flood insurance rate maps during the preceding 6 months,

25 to determine whether any properties in their community

26 have been affected, and to provide annual notice by mail,
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1 notice by publication, or notice by other reasonable meth2 od, to regulated lending institutions that are known to

3 lend in the community, and to the owners of all properties

4 newly determined to be in special flood hazard areas, of

5 the requirement that Federal flood insurance be purchased

6 for insurable structures located within the special flood

7 hazard areas in the community.

8 ‘‘(d) CONTENTS OF NOTICE.—Notification required

9 by this section shall include a warning, in a form to be

10 established by the Director, stating that the real estate

11 or manufactured home securing the loan is located in an

12 area of special flood hazards, a description of the flood

13 insurance purchase requirements under section 102(b) of

14 this title, a statement that flood insurance coverage may

15 be purchased under the National Flood Insurance Pro16 gram and may also be available from private insurers, and

17 any other information that the Director considers nec18 essary to carry out the purposes of the National Flood

19 Insurance Program.’’.

20 SEC. 204. PLACEMENT OF FLOOD INSURANCE BY REGU21 LATED LENDING INSTITUTION OR FEDERAL

22 AGENCY LENDER.

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

24 of the Flood Disaster Protection Act of 1973 (42 U.S.C.
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1 4012a) (as amended by section 202(a)) is further amend2 ed by adding at the end the following new subsection:

3 ‘‘(e) REQUIRED ACTIONS BY LENDER.—

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

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

6 loan secured by improved real estate or by a manu7 factured home located in an area that has been iden8 tified by the Director as an area of special flood haz9 ards and in which flood insurance is available under

10 this title, a regulated lending institution or Federal

11 agency lender determines that the building or manu12 factured home and any personal property securing

13 the loan held or serviced by the regulated lending in14 stitution or Federal agency lender is not covered by

15 flood insurance, in an amount not less than the

16 amount required by subsection (b)(1), the regulated

17 lending institution or Federal agency lender shall

18 notify the borrower that the borrower should obtain,

19 at the borrower’s expense, an amount of flood insur20 ance that is not less than the amount required by

21 subsection (b)(1), for the term of the loan. If, not

22 later than 60 days after receiving such notification,

23 the borrower fails to purchase such flood insurance,

24 the regulated lending institution or Federal agency

25 lender shall purchase the insurance on behalf of the
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1 borrower and may charge the borrower for the cost

2 of premiums and fees incurred by the regulated

3 lending institution or Federal agency lender in pur4 chasing the insurance.

5 ‘‘(2) REVIEW.—

6 ‘‘(A) BY THE DIRECTOR.—A borrower may

7 request that the Director review a determina8 tion that the improved real estate or manufac9 tured home securing the loan is located in an

10 area of special flood hazards. Not later than 45

11 days after the Director receives the request, the

12 Director shall review the determination and

13 provide the borrower with a letter stating

14 whether or not the property is in a special flood

15 hazards area. The determination of the Director

16 shall be final.

17 ‘‘(B) INSURANCE NOT REQUIRED.—If a

18 person is provided by the borrower with a letter

19 issued by the Director pursuant to subpara20 graph (A) during the preceding 1-year period,

21 stating that the property is not in an area of

22 special flood hazards, such person shall have no

23 obligation under this title to require the pur24 chase of flood insurance on the property.’’.
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1 (b) APPLICABILITY.—Section 102(e) of the Flood

2 Disaster Protection Act (as added by subsection (a)) shall

3 apply to all loans outstanding on or after the date of en4 actment of the National Flood Insurance Reform Act of

5 1993.

6 SEC. 205. STANDARD FLOOD HAZARD DETERMINATION

7 FORMS.

8 Chapter III of the National Flood Insurance Act of

9 1968 (42 U.S.C. 4101 et seq.) is amended by adding at

10 the end the following new section:

11 ‘‘SEC. 1365. STANDARD FLOOD HAZARD DETERMINATION

12 FORMS.

13 ‘‘(a) DEVELOPMENT.—The Director, in consultation

14 with the Federal entities for lending regulation, shall de15 velop a standard flood hazard determination form (here16 after in this section referred to as the ‘determination

17 form’) for use in connection with loans secured by im18 proved real estate or a manufactured home located in an

19 area of special flood hazards and in which flood insurance

20 is available under this title.

21 ‘‘(b) DESIGN AND CONTENTS.—The determination

22 form shall state whether the property is in an area of spe23 cial flood hazards, the risk premium rate classification es24 tablished for the special flood hazard area in which the

25 property is located, the complete map and panel numbers
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1 for the property, and the date of the map used for the

2 determination. If the complete map and panel numbers for

3 the property are not available because the property is not

4 located in a community that is participating in the Na5 tional Flood Insurance Program or because no map exists

6 for the relevant area, the determination form shall so

7 state.

8 ‘‘(c) REQUIRED USE.—Each Federal entity for lend9 ing regulation shall by regulation require the use of the

10 determination form by regulated lending institutions.

11 Each Federal agency lender shall by regulation provide for

12 the use of the determination form. The Federal National

13 Mortgage Association and the Federal Home Loan Mort14 gage Corporation shall require use of the determination

15 form by any person from whom they purchase loans.

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

17 recording information on a determination form, a person

18 may rely on information provided by a third party to the

19 extent that the third party guarantees the accuracy of the

20 information.

21 ‘‘(e) RELIANCE ON PREVIOUS DETERMINATION.—A

22 person or institution increasing, extending, renewing, pur23 chasing, or servicing a loan may rely on a previous deter24 mination as to whether property is in a special flood or

25 erosion hazard area, if the previous determination was
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1 made not later than 5 years after the date of the trans2 action, and the basis for the previous determination has

3 been set forth on a determination form.’’.

4 SEC. 206. EXAMINATIONS REGARDING COMPLIANCE BY

5 REGULATED LENDING INSTITUTIONS.

6 (a) AMENDMENT TO FEDERAL DEPOSIT INSURANCE

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

8 (12 U.S.C. 1820) is amended by adding at the end the

9 following new subsection:

10 ‘‘(h) FLOOD HAZARD INSURANCE COMPLIANCE BY

11 INSURED DEPOSITORY INSTITUTIONS REQUIRED.—

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

13 banking agency shall, during each scheduled on-site

14 examination required by this section, determine

15 whether the insured depository institution is comply16 ing with the requirements of the National Flood In17 surance Program.

18 ‘‘(2) REPORT.—Not later than 1 year after the

19 date of enactment of the National Flood Insurance

20 Reform Act of 1993, and biannually thereafter for

21 the next 4 years, each appropriate Federal banking

22 agency shall submit a report to Congress on compli23 ance by insured depository institutions with the re24 quirements of the National Flood Insurance Pro25 gram. The report shall include a description of the
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1 methods used to determine compliance, the number

2 of institutions examined during the reporting year,

3 a listing and total number of institutions found to

4 be in noncompliance, actions taken to correct inci5 dents of noncompliance, and an analysis of compli6 ance, including a discussion of any trends, patterns,

7 and problems, and recommendations regarding rea8 sonable actions to improve the efficiency of the ex9 aminations processes.’’.

10 (b) AMENDMENT TO THE FEDERAL CREDIT UNION

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

12 U.S.C. 1784) is amended by adding at the end the follow13 ing new subsection:

14 ‘‘(e) FLOOD HAZARD INSURANCE COMPLIANCE BY

15 INSURED CREDIT UNIONS REQUIRED.—

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

17 each examination conducted under this section, de18 termine whether the insured credit union is comply19 ing with the requirements of the National Flood In20 surance Program.

21 ‘‘(2) REPORT.—Not later than 1 year after the

22 date of enactment of the National Flood Insurance

23 Reform Act of 1993, and biannually thereafter for

24 the next 4 years, the Board shall submit a report to

25 Congress on compliance by insured credit unions
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1 with the requirements of the National Flood Insur2 ance Program. The report shall include a description

3 of the methods used to determine compliance, the

4 number of insured credit unions examined during

5 the reporting year, a listing and total number of in6 sured credit unions found to be in noncompliance,

7 actions taken to correct incidents of noncompliance,

8 and an analysis of compliance, including a discussion

9 of any trends, patterns, and problems, and rec10 ommendations regarding reasonable actions to im11 prove the efficiency of the examinations processes.’’.

12 SEC. 207. PENALTIES AND CORRECTIVE ACTIONS FOR FAIL13 URE TO REQUIRE FLOOD INSURANCE, ES14 CROW, OR NOTIFY.

15 Section 102 of the Flood Disaster Protection Act of

16 1973 (42 U.S.C. 4012a) (as amended by sections 202(a)

17 and 204(a)) is further amended by adding at the end the

18 following new subsections:

19 ‘‘(f) CIVIL PENALTIES.—

20 ‘‘(1) IN GENERAL.—A regulated lending institu21 tion that is found to have a pattern or practice of

22 violating this section shall be assessed a civil penalty

23 by the appropriate Federal entity for lending regula24 tion of not more than $350 for each such violation.

25 A penalty under this subsection may be issued only
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1 after notice and an opportunity for a hearing on the

2 record.

3 ‘‘(2) TOTAL AMOUNT.—The total amount of

4 penalties assessed under this subsection against a

5 single regulated lending institution for any calendar

6 year may not exceed $100,000.

7 ‘‘(3) SALES OR TRANSFERS.—The subsequent

8 sale or other transfer of a loan by a regulated lend9 ing institution that has committed a violation of this

10 section shall not affect the liability of the transfer11 ring institution with respect to any penalty under

12 this subsection. An institution shall not be liable for

13 a violation relating to a loan committed by another

14 institution that previously held the loan.

15 ‘‘(4) 3-YEAR LIMIT.—No penalty may be im16 posed under this subsection after the expiration of

17 the 3-year period beginning on the date of the occur18 rence of the violation.

19 ‘‘(g) ADDITIONAL ACTIONS.—If a Federal entity for

20 lending regulation determines—

21 ‘‘(1) that a regulated lending institution has

22 demonstrated a pattern and practice of noncompli23 ance in violation of the regulations issued pursuant

24 to subsection (b) or subsection (d) or the notice re-
26

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1 quirements under section 1364 of the National

2 Flood Insurance Act of 1968, and

3 ‘‘(2) that the regulated lending institution has

4 not demonstrated measurable improvement in com5 pliance despite the issuance of penalties under sub6 section (f),

7 the agency may require the regulated lending institution

8 to take such remedial actions as are necessary to ensure

9 that the regulated lending institution is in satisfactory

10 compliance with the requirements of the National Flood

11 Insurance Program.’’.

12 SEC. 208. FINANCIAL INSTITUTIONS EXAMINATION COUN13 CIL.

14 Section 1006 of the Federal Financial Institutions

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

16 amended by adding at the end the following new sub17 section:

18 ‘‘(g) FLOOD INSURANCE.—The Council shall consult

19 and assist the Federal entities for lending regulation, as

20 such term is defined in section 1370(a)(7) of the National

21 Flood Insurance Act of 1968, in developing and coordinat22 ing uniform standards and requirements for use by regu23 lated lending institutions and Federal agency lenders

24 under the National Flood Insurance Program.’’.
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1 SEC. 209. CONFORMING AMENDMENT.

2 The section heading for section 102 of the Flood Dis3 aster Protection Act of 1973 (42 U.S.C. 4012a) is amend4 ed to read as follows:

5 ‘‘FLOOD INSURANCE PURCHASE AND COMPLIANCE

6 REQUIREMENTS AND ESCROW ACCOUNTS’’.

7 TITLE III—RATINGS AND INCEN8 TIVES FOR COMMUNITY

9 FLOODPLAIN MANAGEMENT

10 PROGRAMS

11 SEC. 301. COMMUNITY RATING SYSTEM AND INCENTIVES

12 FOR COMMUNITY FLOODPLAIN MANAGE13 MENT.

14 (a) REQUIREMENT FOR PARTICIPATION IN FLOOD

15 INSURANCE PROGRAM.—Section 1315 of the National

16 Flood Insurance Act of 1968 (42 U.S.C. 4022) is amend17 ed—

18 (1) by inserting after ‘‘SEC. 1315.’’ the follow19 ing: ‘‘(a) REQUIREMENT FOR PARTICIPATION IN

20 FLOOD INSURANCE PROGRAM.—’’; and

21 (2) by adding at the end the following new sub22 section:

23 ‘‘(b) COMMUNITY RATING SYSTEM AND INCENTIVES

24 FOR COMMUNITY FLOODPLAIN MANAGEMENT.—

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

26 shall carry out a community rating system program
28

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1 to evaluate the measures adopted by communities

2 voluntarily participating in the community rating

3 system, to provide incentives for measures to reduce

4 the risk of flood or erosion damage that exceed the

5 criteria set forth in section 1361, to encourage adop6 tion of more effective measures for floodplain and

7 erosion management, and to promote the reduction

8 of Federal flood insurance losses.

9 ‘‘(2) INCENTIVES.—The program shall provide

10 incentives in the form of credits on premium rates

11 for flood insurance coverage in communities that the

12 Director determines have adopted and enforced

13 measures to reduce the risk of flood and erosion

14 damage that exceed the criteria set forth in section

15 1361. In providing incentives under this paragraph,

16 the Director may provide for credits to flood insur17 ance premium rates in communities that the Direc18 tor determines have implemented measures relating

19 to—

20 ‘‘(A) the protection of natural and bene21 ficial floodplain functions; and

22 ‘‘(B) the management of erosion hazards.

23 ‘‘(3) CREDITS.—The credits on premium rates

24 for flood insurance coverage shall be based on the

25 estimated reduction in flood damage risks resulting
29

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1 from the measures adopted by the community under

2 this program.’’.

3 (b) REPORTS.—Two years after the date of enact4 ment of the National Flood Insurance Reform Act of 1993

5 and biannually thereafter, the Director shall submit a re6 port to the Congress regarding the program under section

7 1315(a) of the National Flood Insurance Act of 1968.

8 Each report shall include an analysis of the cost-effective9 ness and other accomplishments and shortcomings of the

10 program and any recommendations of the Director for leg11 islation regarding the program.

12 SEC. 302. FUNDING.

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

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

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

16 end;

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

18 the end and inserting a semicolon; and

19 (3) by adding after paragraph (5) the following

20 new paragraph:

21 ‘‘(6) for carrying out the program under section

22 1315(b);’’.
30

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1 TITLE IV—MITIGATION OF

2 FLOOD AND EROSION RISKS

3 SEC. 401. MITIGATION ASSISTANCE IN FEDERAL INSUR4 ANCE ADMINISTRATION.

5 Section 1105(a) of the Housing and Urban Develop6 ment Act of 1968 (42 U.S.C. 4129(a)) is amended—

7 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

8 (2) by adding at the end the following new

9 paragraph:

10 ‘‘(2) The Director of the Federal Emergency Man11 agement Agency shall coordinate all mitigation activities,

12 including the administration of the program for mitigation

13 assistance under section 1367, under the Federal Insur14 ance Administrator. These activities shall include the de15 velopment and implementation of various mitigation ac16 tivities and techniques, the provision of advice and assist17 ance regarding mitigation to States, communities, and in18 dividuals, including planning assistance under section

19 1367(d), coordination with other Federal flood and erosion

20 mitigation efforts, and coordination with State and local

21 governments and public and private agencies and organi22 zations for collection and dissemination of information re23 garding erosion.’’.
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1 SEC. 402. AUTHORIZATION OF NATIONAL FLOOD AND ERO2 SION MITIGATION FUNDS UNDER SECTION

3 1362.

4 Chapter III of the National Flood Insurance Act of

5 1968 (42 U.S.C. 4101 et seq.), is amended by adding at

6 the end the following new section:

7 ‘‘SEC. 1366. NATIONAL FLOOD AND EROSION MITIGATION

8 PROGRAM.

9 ‘‘(a) EXPENDITURES.—For flood and erosion mitiga10 tion activities authorized under section 1367, the Director

11 may expend from the National Flood Insurance Fund—

12 ‘‘(1) up to $10,000,000 in the fiscal year end13 ing September 30, 1994;

14 ‘‘(2) up to $15,000,000 in the fiscal year end15 ing September 30, 1995;

16 ‘‘(3) up to $20,000,000 in the fiscal year end17 ing September 30, 1996;

18 ‘‘(4) up to $20,000,000 in each fiscal year

19 thereafter; and

20 ‘‘(5) any amounts recaptured under section

21 1367(i).

22 ‘‘(b) REPORT.—Not later than 1 year after the date

23 of enactment of the National Flood Insurance Reform Act

24 of 1993 and biannually thereafter, the Director shall sub25 mit a report to the Congress describing the status of flood
32

•S 1405 IS

1 and erosion mitigation activities carried out with funds au2 thorized under this section.’’.

3 SEC. 403. STATE AND COMMUNITY MITIGATION ASSIST4 ANCE PROGRAM.

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

6 Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amend7 ed by adding at the end the following new section:

8 ‘‘SEC. 1367. STATE AND COMMUNITY MITIGATION ASSIST9 ANCE.

10 ‘‘(a) AUTHORITY.—The Director shall develop and

11 implement a financial assistance program with amounts

12 made available under section 1366 to States and commu13 nities for planning and activities designed to reduce the

14 risk of flood and erosion damage to insured structures.

15 ‘‘(b) MITIGATION PLAN REQUIREMENT.—To be eligi16 ble to receive financial mitigation assistance, a State or

17 community shall develop, and have approved by the Direc18 tor, a flood and erosion risk mitigation plan (hereafter in

19 this section referred to as a ‘mitigation plan’), that is more

20 protective against flood losses and if applicable, erosion

21 losses, than the criteria established by the Director under

22 section 1361. The mitigation plan shall include a com23 prehensive strategy for mitigation activities adopted by the

24 State or community following a public hearing.
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1 ‘‘(c) NOTIFICATION OF APPROVAL.—Not later than

2 120 days after the submission of a mitigation plan, the

3 Director shall notify the State or community submitting

4 the plan of the Director’s approval or disapproval of the

5 plan. If the Director does not approve a plan, the Director

6 shall notify the State or community in writing of the rea7 sons for such disapproval.

8 ‘‘(d) PLANNING ASSISTANCE.—

9 ‘‘(1) IN GENERAL.—The Director shall make

10 planning assistance available to States and commu11 nities for developing mitigation plans.

12 ‘‘(2) FUNDING.—From any amounts made

13 available for use under section 1366 of the National

14 Flood Insurance Act of 1968 in any fiscal year, the

15 Director may use not more than $1,500,000 to pro16 vide planning assistance grants to States or commu17 nities to develop mitigation plans under this sub18 section.

19 ‘‘(3) LIMITATIONS.—

20 ‘‘(A) TIMING.—A grant for planning as21 sistance may be awarded to a State or commu22 nity once every 5 years and each grant may

23 cover a period of 1 to 3 years.

24 ‘‘(B) AMOUNT.—A grant for planning as25 sistance may not exceed—
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1 ‘‘(i) $150,000, to any State; or

2 ‘‘(ii) $50,000, to any community.

3 ‘‘(C) GEOGRAPHIC.—Not more than

4 $300,000 may be awarded to any 1 State and

5 all communities located in that State for plan6 ning assistance in each fiscal year.

7 ‘‘(e) ELIGIBLE MITIGATION ACTIVITIES.—The Direc8 tor shall determine eligibility for assistance under this sec9 tion for mitigation activities that shall be technically fea10 sible and cost-effective. These activities may include—

11 ‘‘(1) elevation, relocation, demolition, or

12 floodproofing of structures;

13 ‘‘(2) acquisition by States and communities of

14 property substantially damaged by flood for public

15 use as the Director determines is consistent with

16 sound land management and use in such area; and

17 ‘‘(3) the provision of technical assistance by

18 States to communities and individuals to conduct eli19 gible mitigation activities.

20 ‘‘(f) LIMITATIONS ON MITIGATION ASSISTANCE.—

21 ‘‘(1) AMOUNT.—The amount of mitigation as22 sistance provided under subsection (e) may not ex23 ceed in any 5-year period—

24 ‘‘(A) $10,000,000, to any State; or

25 ‘‘(B) $3,300,000, to any community.
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•S 1405 IS

1 ‘‘(2) GEOGRAPHIC.—Not more than

2 $20,000,000 may be awarded to any 1 State and all

3 communities located in that State for mitigation as4 sistance in any 5-year period.

5 ‘‘(g) MATCHING REQUIREMENT.—The Director may

6 provide mitigation assistance to a State or community in

7 an amount not to exceed 3 times the amount that the

8 State or community certifies, as the Director shall require,

9 that the State or community will contribute from other

10 funds to carry out mitigation planning under subsection

11 (d) and eligible activities under subsection (e).

12 ‘‘(h) OVERSIGHT OF MITIGATION PLANS.—The Di13 rector shall conduct oversight of recipients of mitigation

14 assistance to ensure that the mitigation assistance is used

15 in compliance with approved plans.

16 ‘‘(i) RECAPTURE.—If the Director determines that a

17 State or community that has received mitigation assist18 ance has not carried out the mitigation activities as set

19 forth in the mitigation plan, the Director shall recapture

20 any unexpended amounts and deposit the amounts in the

21 Fund.

22 ‘‘(j) DEFINITION OF COMMUNITY.—For purposes of

23 this section, the term ‘community’ means a political sub24 division that has zoning and building code jurisdiction over
36

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1 a particular area of special flood hazards, and that is par2 ticipating in the National Flood Insurance Program.’’.

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

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

5 Emergency Management Agency shall issue regulations

6 implementing section 1367 of the National Flood Insur7 ance Act of 1968, as added by subsection (a).

8 SEC. 404. REPEAL OF PROGRAM FOR PURCHASE OF CER9 TAIN INSURED PROPERTIES.

10 (a) REPEAL.—Section 1362 of the National Flood In11 surance Act of 1968 (42 U.S.C. 4103) is repealed.

12 (b) TRANSITION.—Notwithstanding the repeal under

13 subsection (a), the Director of the Federal Emergency

14 Management Agency may continue to purchase property

15 under subsections (a) and (b) of section 1362 of the Na16 tional Flood Insurance Act of 1968, as such section ex17 isted immediately before the date of enactment of this Act,

18 for a period of 1 year beginning on the date of enactment

19 of this Act.

20 SEC. 405. TERMINATION OF EROSION THREATENED STRUC21 TURES PROGRAM.

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

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

24 by striking subsection (c).
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•S 1405 IS

1 (b) TRANSITION.—The Director of the Federal

2 Emergency Management Agency (hereafter in this title re3 ferred to as the ‘‘Director’’) may pay amounts under flood

4 insurance contracts for demolition or relocation of struc5 tures as provided in section 1306(c) of the National Flood

6 Insurance Act of 1968 (as in effect immediately before the

7 date of enactment of this Act) only during the 1-year pe8 riod beginning on the date of enactment of this Act.

9 SEC. 406. LIMITATIONS ON NEW FLOOD INSURANCE COV10 ERAGE IN EROSION HAZARD AREAS.

11 The National Flood Insurance Act of 1968 (42

12 U.S.C. 4001 et seq.) is amended by inserting after section

13 1313 the following new section:

14 ‘‘SEC. 1314. PROPERTIES LOCATED WITHIN 30-YEAR AND 60-

15 YEAR EROSION HAZARD AREAS.

16 ‘‘(a) PROPERTIES LOCATED WITHIN 30-YEAR ERO17 SION HAZARD AREA.—After the establishment of erosion

18 hazard areas under section 1360(i), the Director may not

19 make flood insurance available within a 30-year erosion

20 hazard area with respect to any new—

21 ‘‘(1) construction; or

22 ‘‘(2) addition to an existing structure, if the ad23 dition makes the structure not readily movable.

24 ‘‘(b) PROPERTIES LOCATED WITHIN 60-YEAR ERO25 SION HAZARD AREA AND OUTSIDE 30-YEAR EROSION
38

•S 1405 IS

1 HAZARD AREA.—After the establishment of erosion haz2 ard areas under section 1360(i), the Director may not

3 make flood insurance available with respect to any new—

4 ‘‘(1) nonresidential structure;

5 ‘‘(2) residential structure that is not readily

6 movable; or

7 ‘‘(3) addition to an existing structure, if the ad8 dition makes the structure not readily movable;

9 that is constructed or relocated landward of the 30-year

10 erosion hazard area and within the 60-year erosion hazard

11 area established by the Director under such section.’’.

12 SEC. 407. RIVERINE EROSION STUDY.

13 (a) STUDY.—The Director shall conduct a study to

14 determine the feasibility of identifying and establishing

15 riverine erosion hazard areas, erosion rates, and baseline

16 reference features, and the best methods of community

17 management of such hazards consistent with section 1361

18 of the National Flood Insurance Act of 1968. In conduct19 ing the study, the Director shall—

20 (1) investigate and assess existing and state-of21 the-art technical methodologies for assessing riverine

22 erosion;

23 (2) examine and evaluate natural riverine proc24 esses, environmental conditions, human-induced

25 changes to the banks of rivers and streams, exam-
39

•S 1405 IS

1 ples of erosion and likely causes, and examples of

2 erosion control; and

3 (3) analyze riverine erosion management strate4 gies, the technical standards, methods, and data nec5 essary to support such strategies, and methods of

6 administering such strategies through the National

7 Flood Insurance Program.

8 (b) REPORT.—Not later than 2 years after the date

9 of enactment of this Act, the Director shall submit a re10 port to the Congress regarding the findings and conclu11 sions of the study under this section. The report shall in12 clude any recommendations of the Director regarding ap13 propriate methods and approaches for identifying and de14 termining riverine erosion hazard areas and management

15 strategies relating to riverine erosion.

16 SEC. 408. COORDINATION WITH COASTAL ZONE MANAGE17 MENT PROGRAMS.

18 (a) IN GENERAL.—In the implementation of this title

19 and the amendments made pursuant to this title, the Di20 rector shall consult with the Under Secretary of Commerce

21 for Oceans and Atmosphere and representatives from

22 State coastal zone management programs to promote full

23 coordination of the erosion management provisions of the

24 National Flood Insurance Act of 1968 as amended by this

25 Act, and the provisions of the Coastal Zone Management
40

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1 Act of 1972. The Director shall, to the greatest extent

2 possible, utilize State management programs approved

3 under section 306 of the Coastal Zone Management Act

4 of 1972 to facilitate development and implementation of

5 regulations and guidelines for this title.

6 (b) COORDINATION REPORT.—The Director and the

7 Under Secretary of Commerce for Oceans and Atmosphere

8 shall jointly prepare a report that details the proposed

9 mechanisms for achieving the coordination required in

10 subsection (a). This report shall be transmitted to the

11 Congress not later than 2 years after the date of enact12 ment of this Act.

13 TITLE V—FLOOD INSURANCE

14 TASK FORCE

15 SEC. 501. FLOOD INSURANCE INTERAGENCY TASK FORCE.

16 (a) ESTABLISHMENT.—There is established an inter17 agency task force to be known as the Flood Insurance

18 Task Force (hereafter in this title referred to as the ‘‘Task

19 Force’’).

20 (b) MEMBERSHIP.—

21 (1) IN GENERAL.—The Task Force shall con22 sist of 11 members, who shall be the designees of—

23 (A) the Director of the Federal Emergency

24 Management Agency;

25 (B) the Federal Housing Commissioner;
41

•S 1405 IS

1 (C) the Secretary of Veterans Affairs;

2 (D) the Administrator of the Farmers

3 Home Administration;

4 (E) the Administrator of the Small Busi5 ness Administration;

6 (F) each member of the Federal Financial

7 Institutions Examination Council;

8 (G) the chairman of the Board of Direc9 tors of the Federal Home Loan Mortgage Cor10 poration; and

11 (H) the chairman of the Board of Direc12 tors of the Federal National Mortgage Associa13 tion.

14 (2) QUALIFICATIONS.—Members of the Task

15 Force shall be designated for membership on the

16 Task Force by reason of demonstrated knowledge

17 and competence regarding the National Flood Insur18 ance Program.

19 (c) DUTIES.—The Task Force shall—

20 (1) make recommendations to the head of each

21 Federal agency and corporation referred to under

22 subsection (b)(1) regarding the establishment or

23 adoption of standardized enforcement procedures

24 among such agencies and corporations responsible

25 for enforcing compliance with the requirements
42

•S 1405 IS

1 under the National Flood Insurance Program to en2 sure the fullest possible compliance with such re3 quirements;

4 (2) study the extent to which Federal agencies

5 and the secondary mortgage market can provide as6 sistance in ensuring compliance with the require7 ments under the National Flood Insurance Program;

8 (3) study the extent to which existing programs

9 of Federal agencies and corporations for compliance

10 with the requirements under the National Flood In11 surance Program can serve as a model for other

12 Federal agencies responsible for enforcing compli13 ance, and submit to the Congress a report describing

14 the study and any conclusions;

15 (4) study the extent to which the flood insur16 ance premium rate structure could be revised to

17 minimize existing premium rate subsidies, to incor18 porate premium rate adjustments for erosion haz19 ards, to account for catastrophic loss events, and

20 propose strategies to establish an actuarial-based

21 premium structure to account for all insurable risks

22 identified under the National Flood Insurance Act of

23 1968, as amended by this Act; and

24 (5) develop guidelines regarding enforcement

25 and compliance procedures, based on the studies and
43

•S 1405 IS

1 findings of the Task Force and publishing the guide2 lines in a usable format.

3 (d) REPORTS.—Not later than 2 years after the date

4 of enactment of this Act, the Task Force shall transmit

5 to the Congress a report describing its studies and any

6 conclusions.

7 (e) COMPENSATION.—Members of the Task Force

8 shall receive no additional compensation by reason of their

9 service on the Task Force.

10 (f) CHAIRPERSON.—The members of the Task Force

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

12 Task Force (hereafter in this section referred to as the

13 ‘‘Chairperson’’).

14 (g) MEETINGS AND ACTION.—The Task Force shall

15 meet at the call of the Chairperson or a majority of the

16 members of the Task Force and may take action by a vote

17 of the majority of the members. The Federal Insurance

18 Administrator shall coordinate and call the initial meeting

19 of the Task Force.

20 (h) OFFICERS.—The Chairperson may appoint offi21 cers to carry out the duties of the Task Force under sub22 section (c).

23 (i) STAFF OF FEDERAL AGENCIES.—Upon the re24 quest of the Chairperson, the head of any of the Federal

25 agencies and corporations referred to in subsection (b)(1)
44

•S 1405 IS

1 may detail, on a nonreimbursable basis, any of the person2 nel of the agency to the Task Force to assist the Task

3 Force in carrying out its duties under this Act.

4 (j) POWERS.—In carrying out this section, the Task

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

6 take testimony, receive evidence and assistance, provide

7 information, and conduct research as the Task Force con8 siders appropriate.

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

10 2 years after the date on which all members of the Task

11 Force have been designated under subsection (b)(1).

12 TITLE VI—MISCELLANEOUS

13 PROVISIONS

14 SEC. 601. MAXIMUM FLOOD INSURANCE COVERAGE

15 AMOUNTS.

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

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

18 amended—

19 (1) in paragraph (1)(A)—

20 (A) by inserting ‘‘and’’ at the end of clause

21 (i); and

22 (B) by striking clause (iii);

23 (2) by striking subparagraph (B) of paragraph

24 (1) and inserting the following new subparagraph:
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•S 1405 IS

1 ‘‘(B) in the case of any nonresidential

2 property, including churches—

3 ‘‘(i) $100,000 aggregate liability for

4 each structure; and

5 ‘‘(ii) $100,000 aggregate liability for

6 any contents related to each structure;’’;

7 (3) by striking subparagraph (C) of paragraph

8 (1);

9 (4) in paragraph (2), by striking ‘‘so as to en10 able’’ and all that follows through the end of the

11 paragraph and inserting ‘‘up to an amount, includ12 ing the limits specified in clause (i) of paragraph

13 (1)(A), of $250,000 multiplied by the number of

14 dwelling units in the building;’’;

15 (5) in paragraph (3), by striking ‘‘so as to en16 able’’ and all that follows through the end of the

17 paragraph and inserting ‘‘up to an amount of

18 $90,000 for any single-family dwelling and $240,000

19 for any residential structure containing more than

20 one dwelling unit;’’; and

21 (6) by striking paragraph (4) and inserting the

22 following new paragraph:

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

24 including churches, additional flood insurance in ex25 cess of the limits specified in clauses (i) and (ii) of
46

•S 1405 IS

1 paragraph (1)(B) shall be made available to every

2 insured upon renewal and every applicant for insur3 ance up to an amount of $2,400,000 for each struc4 ture and $2,400,000 for any contents related to each

5 structure; and’’.

6 (b) REMOVAL OF CEILING ON COVERAGE RE7 QUIRED.—Section 1306(b) of the National Flood Insur8 ance Act of 1968 (42 U.S.C. 4013(b)) is amended—

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

10 end and inserting a period;

11 (2) by striking paragraph (6); and

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

13 flush sentence:

14 ‘‘Upon determining that a property is a repetitive loss

15 structure, the Director shall charge the applicable risk

16 premium rate for flood insurance based on consideration

17 of the risk involved and accepted actuarial principles

18 under section 1307(a)(1).’’.

19 (c) CONFORMING AMENDMENTS.—Section

20 1306(b)(5) of the National Flood Insurance Act of 1968

21 (42 U.S.C. 4013(b)(5)) is amended—

22 (1) by striking ‘‘(A), (B), or (C)’’ and inserting

23 ‘‘(A) or (B)’’; and

24 (2) by striking ‘‘(1)(C),’’.
47

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1 SEC. 602. ADDITIONAL COVERAGE FOR COMPLIANCE WITH

2 LAND USE AND CONTROL MEASURES.

3 Section 1304(e) of the National Flood Insurance Act

4 of 1968 (42 U.S.C. 4011(a)) is amended by inserting be5 fore the period ‘‘, including the cost of compliance with

6 land use and control measures adopted by the State or

7 community pursuant to section 1315, for properties that

8 are repetitive loss structures or that have flood damage

9 in which the cost of repairs equals or exceeds 50 percent

10 of the value of the structure at the time of the flood

11 event’’.

12 SEC. 603. FLOOD INSURANCE PROGRAM ARRANGEMENTS

13 WITH PRIVATE INSURANCE ENTITIES.

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

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

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

17 regard to the provisions of the Federal Advisory Commit18 tee Act.’’.

19 SEC. 604. UPDATING OF FLOOD INSURANCE MAPS AND

20 IDENTIFICATION OF EROSION HAZARD

21 AREAS.

22 (a) 5-YEAR UPDATES.—Section 1360 of the National

23 Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended

24 by adding at the end the following new subsections:

25 ‘‘(e) ASSESSMENT OF NEED TO UPDATE AREAS.—

26 (1) Once during each 5-year period (the 1st such period
48

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1 beginning on the date of enactment of the National Flood

2 Insurance Reform Act of 1993), or more often as the Di3 rector determines necessary, the Director shall assess the

4 need to revise and update the flood insurance rate map.

5 ‘‘(2) Upon the request of a State or community stat6 ing that a flood insurance rate map needs revision or up7 dating and the State or community making the request

8 agrees to provide not less than 50 percent of the cost, or

9 the equivalent value of data, technical analysis, or other

10 in-kind services, for the requested revision or update, the

11 Director shall review and update the flood insurance rate

12 map for the State or community.

13 ‘‘(f) AVAILABILITY.—To promote compliance with the

14 requirements of this title, the Director shall make flood

15 insurance rate maps and related information available free

16 of charge to State agencies directly responsible for coordi17 nating the National Flood Insurance Program and to ap18 propriate representatives of communities participating in

19 the National Flood Insurance Program, and at a reason20 able cost to all other persons pursuant to section 1310.

21 ‘‘(g) NOTIFICATION.—The Director shall publish in

22 the Federal Register or by other comparable method, not

23 later than 30 days after the map change or revision under

24 this section becomes effective, notices of changes to flood

25 insurance map panels, and changes to flood insurance map
49

•S 1405 IS

1 panels issued in the form of Letters of Map Amendment

2 and Letters of Map Revision. Such comparable methods

3 shall include all pertinent information, provide for regular

4 and frequent distribution, and be at least as accessible to

5 map users as the Federal Register. Notices published in

6 the Federal Register, or otherwise, shall also include infor7 mation on how to obtain copies of the changes or revisions.

8 ‘‘(h) AVAILABILITY.—Every 6 months, the Director

9 shall publish separately and make available in their en10 tirety within a compendium, all changes and revisions to

11 flood insurance map panels and all Letters of Map Amend12 ment and Letters of Map Revision that were published in

13 the Federal Register or distributed through other com14 parable methods during the preceding 6 months, free of

15 charge, to States and communities participating in the

16 National Flood Insurance Program pursuant to section

17 1310 and at cost to all other parties.’’.

18 (b) ASSESSMENT, IDENTIFICATION, AND MAPPING

19 OF EROSION HAZARD AREAS.—Section 1360 of the Na20 tional Flood Insurance Act of 1968 (42 U.S.C. 4101) (as

21 amended by subsection (a)) is further amended by adding

22 at the end the following new subsection:

23 ‘‘(i) ASSESSMENT, IDENTIFICATION, AND MAPPING

24 OF EROSION HAZARD AREAS.—
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1 ‘‘(1) IN GENERAL.—Not later than 60 months

2 after the date of enactment of the National Flood

3 Insurance Reform Act of 1993, the Director shall,

4 using erosion rate information and other historical

5 data, assess, identify, and map all erosion hazard

6 areas.

7 ‘‘(2) MAPPING PRIORITIES.—Not later than 2

8 years after the date of enactment of the National

9 Flood Insurance Reform Act of 1993, the Director

10 shall determine areas that are at greatest risk from

11 erosion and assess, identify, and map the erosion

12 hazard areas in these areas.

13 ‘‘(3) CONSIDERATION OF MITIGATION ACTIVI14 TIES.—In identifying and mapping erosion hazard

15 areas, the Director shall determine erosion rates

16 based on the presence of any community erosion

17 control measures and erosion of the area in the ab18 sence of the project. The Director shall use the lower

19 estimated erosion rate in the determination of ero20 sion hazard areas.

21 ‘‘(4) TRANSITION.—Until the Director has as22 sessed, identified, and mapped erosion rate data for

23 a community, the community may obtain, review,

24 and reasonably use erosion rate information or other

25 historical data available from other Federal, State,
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1 or other sources in order to develop a mitigation

2 plan.

3 ‘‘(5) STATE EROSION RATE DATA AND BASE4 LINE REFERENCE FEATURES AND STATE AND COM5 MUNITY LOSS REDUCTION PROGRAMS.—The Direc6 tor shall, to the maximum extent practicable, use

7 State or community erosion rate data and baseline

8 reference features in designating erosion hazard

9 areas under this title.

10 ‘‘(6) EROSION HAZARDS.—On each flood insur11 ance rate map established under this section, the Di12 rector shall publish erosion rates for areas that are

13 subject to erosion hazards. These erosion rates shall

14 be used to identify areas that are subject to erosion

15 hazards within a 60-year period (hereafter referred

16 to as the ‘60-year erosion hazard area’), and for

17 areas that are subject to erosion hazards within a

18 30-year period (hereafter referred to as the ‘30-year

19 erosion hazard area’) as measured from a baseline

20 reference feature. On each flood insurance rate map,

21 the Director shall identify and provide legible demar22 cation of the baseline reference feature. The Direc23 tor may also provide for legible demarcation of ero24 sion hazard areas where map scale or other limita25 tions allow for such demarcation.
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1 ‘‘(7) REVISION OF EROSION HAZARD AREAS.—

2 In revising the demarcation of the baseline reference

3 feature and erosion rate data, the legible demarca4 tion of erosion hazard areas, or geographical bound5 aries of erosion hazard areas, the Director shall give

6 special consideration to—

7 ‘‘(A) areas (or subdivisions thereof) that

8 are experiencing or have recently experienced

9 erosion rates in excess of the erosion rate estab10 lished under this section, due to storms, high

11 lake levels, or other extraordinary events creat12 ing a dynamic change in the local erosion rate;

13 and

14 ‘‘(B) areas in which community erosion

15 control measures have been implemented or ero16 sion rates established under this section have

17 been significantly altered otherwise by man18 made or induced activity.

19 ‘‘(8) REVIEW.—The Director shall consult with

20 State and community governments in the determina21 tion of erosion hazard areas, and shall provide for a

22 public review and appeals process comparable to the

23 established review and appeals process for flood ele24 vation determinations required under this title.’’.
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1 SEC. 605. TECHNICAL MAPPING ADVISORY COUNCIL.

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

3 to be known as the Technical Mapping Advisory Council

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

5 (b) MEMBERSHIP.—

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

7 the Director of the Federal Emergency Management

8 Agency (hereafter in this section referred to as the

9 ‘‘Director’’), or the Director’s designee, and 12 addi10 tional members to be appointed by the Director or

11 his designee, and shall include—

12 (A) the Under Secretary of Commerce for

13 Oceans and Atmosphere (or his or her des14 ignee);

15 (B) a member of recognized surveying and

16 mapping professional associations and organiza17 tions;

18 (C) a member of recognized professional

19 engineering associations and organizations;

20 (D) a member of recognized professional

21 associations or organizations representing flood

22 hazard determination firms;

23 (E) a representative of the United States

24 Geologic Survey;

25 (F) a representative of State geologic sur26 vey programs;
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1 (G) a representative of State national flood

2 insurance coordination offices;

3 (H) a representative of the Federal Na4 tional Mortgage Association and the Federal

5 Home Loan Mortgage Corporation; and

6 (I) a representative of a regulated lending

7 institution.

8 (2) QUALIFICATIONS.—Members of the Council

9 shall be appointed based on their demonstrated

10 knowledge and competence regarding surveying, car11 tography, remote sensing, geographic information

12 systems, or the technical aspects of preparing and

13 using flood insurance rate maps.

14 (c) DUTIES.—The Council shall—

15 (1) make recommendations to the Director on

16 how to improve in a cost-effective manner the accu17 racy, general quality, ease of use, and distribution

18 and dissemination of flood insurance rate maps;

19 (2) recommend to the Director mapping stand20 ards and guidelines for flood insurance rate maps;

21 and

22 (3) transmit an annual report to the Director

23 describing—

24 (A) the activities of the Council;
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1 (B) an evaluation of the status and per2 formance of flood insurance rate maps and

3 mapping activities to update and revise flood in4 surance rate maps as established by the amend5 ments made under section 604; and

6 (C) a summary of recommendations made

7 by the Council to the Director.

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

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

10 Council (hereafter in this section referred to as the

11 ‘‘Chairperson’’).

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

13 recommendations are consistent to the maximum extent

14 practicable with national digital spatial data collection and

15 management standards, the Chairperson shall consult with

16 the Chairperson of the Federal Geographic Data Commit17 tee (established pursuant to OMB Circular A–16).

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

19 receive no additional compensation by reason of their serv20 ice on the Council.

21 (g) MEETINGS AND ACTIONS.—

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

23 less than twice each year at the request of the

24 Chairperson or a majority of its members and may
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1 take action by a vote of the majority of the mem2 bers.

3 (2) INITIAL MEETING.—The Director, or a per4 son designated by the Director, shall request and co5 ordinate the initial meeting of the Council.

6 (h) OFFICERS.—The Chairperson may appoint offi7 cers to assist in carrying out the duties of the Council

8 under subsection (c).

9 (i) STAFF OF THE FEDERAL EMERGENCY MANAGE10 MENT AGENCY.—Upon the request of the Chairperson,

11 the Director may detail, on a nonreimbursable basis, per12 sonnel of the Federal Emergency Management Agency to

13 assist the Council in carrying out its duties.

14 (j) POWERS.—In carrying out this section, the Coun15 cil may hold hearings, receive evidence and assistance, pro16 vide information, and conduct research as it considers ap17 propriate.

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

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

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

21 SEC. 606. FUNDING FOR INCREASED ADMINISTRATIVE AND

22 OPERATIONAL RESPONSIBILITIES.

23 (a) AVAILABILITY OF FUND.—Section 1310(a) of the

24 National Flood Insurance Act of 1968 (42 U.S.C.
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1 4017(a)) (as amended by section 302) is further amend2 ed—

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

4 inserting ‘‘(except as otherwise provided)’’ after

5 ‘‘without fiscal year limitation’’; and

6 (2) by adding at the end the following new

7 paragraphs:

8 ‘‘(7) for assessment and mapping of erosion

9 hazard areas under section 1360(i), except that the

10 fund shall be available for the purpose under this

11 paragraph in an amount not to exceed an aggregate

12 of $25,000,000 over the 5-year period beginning on

13 the date of enactment of the National Flood Insur14 ance Reform Act of 1993; and

15 ‘‘(8) for revising and updating flood insurance

16 rate maps under section 1360(i), except that the

17 fund shall be available for the purpose under this

18 paragraph in an amount not to exceed $2,000,000,

19 in each fiscal year beginning after the expiration of

20 the 2-year period beginning on the date of enact21 ment of the National Flood Insurance Reform Act of

22 1993.’’.

23 (b) CREDITS OF FUND.—Section 1310(b) of the Na24 tional Flood Insurance Act of 1968 (42 U.S.C. 4017(b))

25 is amended—
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1 (1) in paragraph (5), by striking ‘‘and’’ at the

2 end;

3 (2) by redesignating paragraph (6) as para4 graph (7); and

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

7 ‘‘(6) any penalties collected under section

8 102(f) of the Flood Disaster Protection Act of 1973;

9 and’’.

10 SEC. 607. REGULATIONS.

11 The Director of the Federal Emergency Management

12 Agency, and any head of an appropriate Federal agency

13 may each issue any regulations necessary to carry out the

14 applicable provisions of this Act and the applicable amend15 ments made by this Act.

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