I 

116TH CONGRESS 

1ST SESSION H. R. 3146 

To provide for the monthly installment payment of premiums for coverage 

under the National Flood Insurance Program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2019 

Mr. DAVID SCOTT of Georgia (for himself and Mr. DUFFY) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To provide for the monthly installment payment of premiums 

for coverage under the National Flood Insurance Program, 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. 

4 This Act may be cited as the ‘‘Fair Flood Insurance 

5 Act of 2019’’. 

6 SEC. 2. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS. 

7 (a) AUTHORITY.—Subsection (g) of section 1308 of 

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

9 4015(g)) is amended— 


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1 (1) by striking the subsection designation and 

2 all that follows through ‘‘With respect’’ and insert3 ing the following: 

4 ‘‘(g) FREQUENCY OF PREMIUM COLLECTION.— 

5 ‘‘(1) OPTIONS.—With respect’’; and 

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

7 ‘‘(2) MONTHLY INSTALLMENT PAYMENT OF

8 PREMIUMS.— 

9 ‘‘(A) EXEMPTION FROM RULEMAKING.— 

10 Until such time as the Administrator promul11 gates regulations implementing paragraph (1) 

12 of this subsection, the Administrator may adopt 

13 policies and procedures, notwithstanding any 

14 other provisions of law and in alignment and 

15 consistent with existing industry escrow and 

16 servicing standards, necessary to implement 

17 such paragraph without undergoing notice and 

18 comment rulemaking and without conducting 

19 regulatory analyses otherwise required by stat20 ute, regulation, or Executive order. 

21 ‘‘(B) PILOT PROGRAM.—The Adminis22 trator may initially implement paragraph (1) of 

23 this subsection as a pilot program that provides 

24 for a gradual phase-in of implementation. 


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1 ‘‘(C) POLICYHOLDER PROTECTION.—The 

2 Administrator may— 

3 ‘‘(i) during the 12-month period be4 ginning on the date of the enactment of 

5 this paragraph, charge policyholders choos6 ing to pay premiums in monthly install7 ments a fee for the total cost of the month8 ly collection of premiums not to exceed $25 

9 annually; and 

10 ‘‘(ii) after the expiration of the 12- 

11 month period referred to in clause (i), ad12 just the fee charged annually to cover the 

13 total cost of the monthly collection of pre14 miums as determined by the report sub15 mitted pursuant to subparagraph (D). 

16 ‘‘(D) REPORT.—Not later than six months 

17 after the date of the enactment of this para18 graph, the Comptroller General shall submit a 

19 report to the Committee on Financial Services 

20 of the House of Representatives and the Com21 mittee on Banking, Housing, and Urban Affairs 

22 of the Senate, that sets forth all of the costs as23 sociated with the monthly payment of pre24 miums, including any up-front costs associated 

25 with infrastructure development, the impact on 


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1 all policyholders including those that exercise 

2 the option to pay monthly and those that do 

3 not, options for minimizing the costs, particu4 larly the costs to policyholders, and the feasi5 bility of adopting practices that serve to mini6 mize costs to policyholders such as automatic 

7 payments and electronic payments. 

8 ‘‘(E) ANNUAL REPORTS.—On an annual 

9 basis, the Administrator shall report to the 

10 Committee on Financial Services of the House 

11 of Representatives and the Committee on Bank12 ing, Housing, and Urban Affairs of the Senate 

13 the ongoing costs associated with the monthly 

14 payment of premiums.’’. 

15 (b) IMPLEMENTATION.—Clause (ii) of section 

16 1307(a)(1)(B) (42 U.S.C. 4014(a)(1)(B)(ii)) is amended 

17 by inserting before ‘‘any administrative expenses’’ the fol18 lowing: ‘‘the costs associated with the monthly collection 

19 of premiums provided for in section 1308(g) (42 U.S.C. 

20 4015(g)), but only if such costs exceed the operating costs 

21 and allowances set forth in clause (i) of this subparagraph, 

22 and’’. 

Æ 


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