I 

109TH CONGRESS 

1ST SESSION H. R. 1269 

To amend the Toxic Substances Control Act, the Internal Revenue Code 

of 1986, and the Public Buildings Act of 1959 to protect human health 

from toxic mold, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2005 

Mr. CONYERS introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on 

Financial Services, Ways and Means, and the Judiciary, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To amend the Toxic Substances Control Act, the Internal 

Revenue Code of 1986, and the Public Buildings Act 

of 1959 to protect human health from toxic mold, 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; TABLE OF CONTENTS. 

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

5 ‘‘United States Toxic Mold Safety and Protection Act of 

6 2005’’ or the ‘‘Melina Bill’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

TITLE I—RESEARCH AND PUBLIC EDUCATION 

Sec. 101. Definitions. 

Sec. 102. Health effects study and report. 

Sec. 103. Standards for preventing, detecting and remediating indoor mold 

growth. 

Sec. 104. Public education program. 

TITLE II—HOUSING AND REAL PROPERTY PROVISIONS 

Sec. 201. Inspection of residential property. 

Sec. 202. Sale or lease of residential property. 

Sec. 203. Inspection requirements for existing public housing. 

Sec. 204. Construction requirements for new public housing. 

Sec. 205. Building codes. 

Sec. 206. Inspection requirement in connection with federally made or insured 

mortgages. 

TITLE III—INDUSTRY STANDARDS DEVELOPMENT 

Sec. 301. Industry Standards Development. 

TITLE IV—INDOOR MOLD HAZARD ASSISTANCE 

Sec. 401. Grants for remediation of public buildings. 

TITLE V—TAX PROVISIONS 

Sec. 501. Tax credit for toxic mold inspection and remediation. 

TITLE VI—NATIONAL TOXIC MOLD HAZARD INSURANCE 

PROGRAM 

Subtitle A—Insurance Program 

Sec. 601. Program authority. 

Sec. 602. Scope of program and priorities. 

Sec. 603. Nature and limitation of insurance coverage. 

Sec. 604. Estimates of premium rates. 

Sec. 605. Establishment of chargeable premium rates. 

Sec. 606. National toxic mold hazard insurance fund. 

Sec. 607. Operating costs and allowances. 

Sec. 608. Payment of claims. 

Sec. 609. Dissemination of insurance information. 

Sec. 610. Coordination with other programs. 

Sec. 611. Reports. 

Subtitle B—Organization and Administration of Insurance Program 

Sec. 621. Implementation. 

PART 1—INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE

Sec. 631. Industry insurance pool. 
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Sec. 632. Agreements with insurance pool. 

Sec. 633. Adjustment and payment of claims and judicial review. 

Sec. 634. Premium equalization payments. 

Sec. 635. Emergency implementation of program. 

PART 2—GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE

Sec. 641. Federal operation of program. 

Sec. 642. Adjustment and payment of claims and judicial review. 

PART 3—PROVISIONS OF GENERAL APPLICABILITY

Sec. 651. Services by insurance industry. 

Sec. 652. Use of insurance pool, companies, or other private organizations for 

certain payments. 

Sec. 653. Settlement and arbitration. 

Sec. 654. Records and audits. 

Subtitle C—Miscellaneous Provisions 

Sec. 661. Definitions. 

Sec. 662. Payments. 

Sec. 663. Government corporation control act. 

Sec. 664. Finality of certain transactions. 

Sec. 665. Authorization of appropriations. 

TITLE VII—HEALTH CARE PROVISIONS 

Sec. 701. Medicaid waiver. 

1 TITLE I—RESEARCH AND 

2 PUBLIC EDUCATION 

3 SEC. 101. DEFINITIONS. 

4 For purposes of this Act— 

5 (1) the term ‘‘mold’’ means any furry growth of 

6 minute fungi occurring in moist conditions; 

7 (2) the term ‘‘toxic mold’’ means any indoor 

8 mold growth capable of creating toxins that can 

9 cause pulmonary, respiratory, neurological or other 

10 major illnesses after minimal exposure, as such ex11 posure is defined by the Environmental Protection 

12 Agency, Center for Disease Control, National Insti13 tute of Health or other Federal, State or local agen-
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1 cy organized in part to study and/or protect human 

2 health; 

3 (3) the term ‘‘toxic mold risk assessor’’ means 

4 a person who establishes the level of risk to public 

5 health associated with toxic mold; and 

6 (4) the term ‘‘mold inspection’’ means an in7 spection of real property that is designed to discover 

8 indoor mold growth, toxic mold growth, conditions 

9 that facilitate indoor mold growth and/or indicia of 

10 conditions that are likely to facilitate indoor mold 

11 growth. 

12 SEC. 102. RESEARCH AND REPORTING. 

13 (a) The Centers for Disease Control and Prevention, 

14 the Environmental Protection Agency, and the National 

15 Institutes of Health shall jointly undertake a comprehen16 sive study of the health effects of indoor mold growth and 

17 toxic mold. The results of the aforementioned study shall 

18 be submitted to the Congress, the President and the gen19 eral public. The study should ascertain among other 

20 things— 

21 (1) detailed information about harmful and/or 

22 toxic strains of mold; 

23 (2) methods of detecting harmful and/or toxic 

24 mold; 
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1 (3) potential dangers of prolonged exposure to 

2 indoor mold growth; 

3 (4) minimum levels of exposure at which indoor 

4 mold growth is harmful to human health; and 

5 (5) the hazards involved in mold remediation. 

6 (b) The Department of Housing and Urban Develop7 ment shall study and report the impact of construction 

8 standards on indoor mold growth. 

9 (c) EPA STUDY.—The Administrator of the Environ10 mental Protection Agency shall conduct a comprehensive 

11 study on the economic impact of mold on home owners, 

12 renters, businesses, residential and commercial real estate, 

13 and litigation. 

14 (d) All research and study conducted pursuant to this 

15 Act shall be ongoing with updated reports published as 

16 needed to adequately inform the public and protect human 

17 health. 

18 SEC. 103. STANDARDS FOR PREVENTING, DETECTING, AND 

19 REMEDIATING INDOOR MOLD GROWTH. 

20 (a) After appropriate research and study as required 

21 by this Act, but not later than one year after the effective 

22 date of this Act, the Environmental Protection Agency, 

23 in conjunction with appropriate Federal agencies, shall 

24 promulgate national standards that include, among other 

25 things— 
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1 (1) standards for mold inspection, mold remedi2 ation, testing the toxicity of mold, and protection of 

3 mold remediators; 

4 (2) standards for certification of mold inspec5 tors, mold remediators, mold testing labs, mold risk 

6 assessors and industrial hygienist involved with mold 

7 remediation planning; and 

8 (3) standards for the design, installation, and 

9 maintenance of air ventilation and/or air-condi10 tioning systems to prevent mold growth or creation 

11 of conditions that foster mold growth, such as mois12 ture intrusion. 

13 (b) After appropriate research and study as required 

14 by this Act, but not later than one year after the effective 

15 date of this Act, the Secretary of the Department of Hous16 ing and Urban Development shall publish guidelines for 

17 building design, construction, operation, and maintenance 

18 to prevent conditions that foster mold growth, such as 

19 moisture intrusion, and recommending appropriate means 

20 of eliminating those conditions. These guidelines include 

21 identification of conditions that foster mold growth prior 

22 to construction, and shall recommend appropriate means 

23 of eliminating those conditions. 

24 (c) To the maximum extent possible, the standards, 

25 guidelines and recommendations established under this 
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1 section shall be developed with the assistance of organiza2 tions involved in establishing national building construc3 tion standards representatives of State or local authorities 

4 responsible for building inspections and issuance of certifi5 cates of occupancy. 

6 (d) The Environmental Protection Agency and the 

7 Department of Housing and Urban Development shall 

8 make drafts of their respective documents available for 

9 public review and comment 30 days prior to publication. 

10 The Environmental Protection Agency and the Depart11 ment of Housing and Urban Development shall make final 

12 model standards and techniques available to the public no 

13 later than one year after the effective date of this Act. 

14 (e) The Environmental Protection Agency shall take 

15 such actions as may be necessary to inform appropriate 

16 State and local government agencies and authorities of the 

17 model standards and techniques with the goal of ensuring 

18 that such agencies and authorities adopt such standards 

19 and techniques by June 1, 2004. 

20 (f) All standards and guidelines promulgated pursu21 ant to this Act shall be updated and published as needed 

22 to adequately inform the public and protect human health. 

23 SEC. 104. PUBLIC EDUCATION. 

24 (a) The Environmental Protection Agency, the Cen25 ters for Disease Control and Prevention, the National In-
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1 stitutes of Health, and the Department of Housing and 

2 Urban Development, and other relevant agencies shall 

3 sponsor public education programs to promote and in4 crease public awareness of the dangers of indoor mold 

5 growth or toxic mold. 

6 (b) The public education programs should include, 

7 among other things, information regarding the conditions 

8 that facilitate indoor mold growth; guidelines for remedi9 ating indoor mold growth; dangers of exposure to indoor 

10 mold growth in public buildings; risk assessment and in11 spection methods for toxic mold; and other necessary in12 formation as determined by the Administrator of the Envi13 ronmental Protection Agency. 

14 (1) The public education programs shall provide 

15 education and information through modes of com16 munication that are commonly utilized and able to 

17 be easily consumed by relevant individuals or organi18 zations. 

19 (2) Public education programs should be de20 signed to reach health professionals; the general 

21 public; homeowners, prospective homeowners, land22 lords, and tenants; consumers of home improvement 

23 products; the real estate industry; the home con24 struction and renovation industry, including the 

25 heating and air conditioning industry; and other in-
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1 dividuals and organizations with an interest in the 

2 use and/or occupancy of real property. 

3 (c) Notwithstanding the foregoing, the Environ4 mental Protection Agency, in consultation with appro5 priate agencies, shall publish, and periodically revise, a 

6 pamphlet regarding indoor mold hazards. Among other 

7 things this pamphlet should— 

8 (1) contain information regarding the health 

9 risks associated with exposure to indoor mold 

10 growth; 

11 (2) provide information on the hazards of in12 door mold growth in federally assisted and federally 

13 owned housing; 

14 (3) describe the risks of mold exposure for per15 sons residing in a dwelling with toxic mold; 

16 (4) provide information on approved methods 

17 for evaluating and reducing mold growth and their 

18 effectiveness in identifying, reducing, eliminating, or 

19 preventing mold growth; 

20 (5) advise persons how to obtain a list of per21 sons certified to inspect or remediate mold growth in 

22 the area in which the pamphlet is to be used; 

23 (6) state that a risk assessment or inspection 

24 for mold growth is recommended prior to the pur25 chase, lease, or renovation of target housing; 
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1 (7) state that certain State and local laws im2 pose additional requirements related to mold growth 

3 in housing and provide a listing of Federal, State, 

4 and local agencies in each State, including address 

5 and telephone number, that can provide information 

6 about applicable laws and available governmental 

7 and private assistance and financing; and 

8 (8) provide information deemed appropriate 

9 and/or necessary to promote awareness of the haz10 ards posed by indoor mold. 

11 (d) There is authorized to be appropriated such sums 

12 as may be necessary to carry out this section. 

13 TITLE II—HOUSING PROVISIONS 

14 FOR INDOOR MOLD HAZARD 

15 PREVENTION AND DETEC16 TION 

17 SEC. 201. INSPECTIONS OF RESIDENTIAL PROPERTY. 

18 Beginning with the calendar year 2004, the lessor of 

19 each unit of rental property shall conduct an annual in20 spection of such property in accordance with the model 

21 standards and techniques set forth in section 103 and 

22 shall promptly notify the occupants of such property of 

23 the results of such inspection. 
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1 SEC. 202. SALE OR LEASE OF RESIDENTIAL PROPERTY. 

2 (a) Not later than 2 years after the date of enactment 

3 of this Act, the Secretary of Housing and Urban Develop4 ment and the Administrator of the Environmental Protec5 tion Agency shall promulgate regulations under this sec6 tion for the disclosure of mold hazards in housing which 

7 is offered for sale or lease. 

8 (b) The regulations shall require that, before the sale 

9 or lease of real property a mold inspection be conducted 

10 by a State-certified mold inspector and, within a reason11 able time prior to the effective date of the purchase or 

12 lease, the seller or lessor shall clearly and accurately dis13 close to the purchaser or lessee the results of the inspec14 tion required under this subsection. 

15 (c) Regulations promulgated under this section shall 

16 provide that every contract for the sale or lease of any 

17 interest in housing shall contain a statement signed by 

18 both the seller or lessor and by the purchaser or lessee 

19 that acknowledges the result of the mold inspection re20 quired by subsection (b). 

21 (d)(1) Any person who knowingly misrepresents the 

22 results of a mold inspection or causes the results of a mold 

23 inspection to be inaccurate shall be subject to civil money 

24 penalties in accordance with the provisions of section 102 

25 of the Department of Housing and Urban Development 

26 Reform Act of 1989 (42 U.S.C. 3545). 
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1 (2) Any person who knowingly violates the provisions 

2 of this section shall be jointly and severally liable to the 

3 purchaser or lessee in an amount equal to 3 times the 

4 amount of damages incurred by such individual. 

5 (3) In any civil action brought for damages, the ap6 propriate court may award court costs to the party com7 mencing such action, together with reasonable attorney 

8 fees and any expert witness fees, if that party prevails. 

9 (e) The regulations under this section shall take ef10 fect 3 years after the date of the enactment of this Act. 

11 SEC. 203. INSPECTION REQUIREMENTS FOR EXISTING PUB12 LIC HOUSING. 

13 (a) IN GENERAL.—The Secretary of Housing and 

14 Urban Development shall establish procedures to elimi15 nate, as far as practicable, the hazards of indoor mold 

16 with respect to any existing public housing which may 

17 present such hazards, in accordance with this section. 

18 Such procedures shall provide for appropriate measures 

19 to conduct risk assessments, inspections, interim controls, 

20 and abatement of indoor mold hazards. 

21 (b) PROCEDURES.—At a minimum, such procedures 

22 shall require— 

23 (1) the provision of indoor mold hazard infor24 mation pamphlets to tenants; 
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1 (2) periodic risk assessments and interim con2 trols in accordance with a schedule determined by 

3 the Secretary; 

4 (3) mold inspections; 

5 (4) abatement of indoor mold hazards identi6 fied; 

7 (5) where risk assessment, inspection, or reduc8 tion activities have been undertaken, the provision of 

9 notice to occupants describing the nature and scope 

10 of such activities and the actual risk assessment or 

11 inspection reports; and 

12 (6) such other measures as the Secretary deems 

13 appropriate. 

14 (c) TRANSITIONAL TESTING AND ABATEMENT.— 

15 (1) PUBLIC HOUSING RECEIVING CAPITAL FUND

16 ASSISTANCE.—The inspection required under this 

17 section for public housing assisted with amounts 

18 from the Capital Fund under section 9(d) of the 

19 United States Housing Act of 1937 (42 U.S.C. 

20 1437g(d)) shall be conducted with respect to— 

21 (A) a random sample of dwellings and 

22 common areas in all public housing projects as23 sisted under such section; and 

24 (B) each dwelling in any public housing 

25 project in which there is a dwelling determined 
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1 under subparagraph (A) to have indoor mold 

2 hazards. 

3 (2) INSPECTION.—The Secretary shall require 

4 the inspection of all housing subject to this sub5 section in accordance with the modernization sched6 ule. A public housing agency may elect to test for in7 door mold hazards and may elect to abate such haz8 ards under standards more stringent than those es9 tablished under this section by the Secretary, and 

10 such abatement shall qualify for assistance from the 

11 Capital Fund. The Secretary shall require abatement 

12 of indoor mold hazards in housing in which the test 

13 results equal or exceed the standard established 

14 under this Act. Final inspection and certification 

15 after abatement shall be made by a certified mold 

16 inspector, industrial hygienist, or local public health 

17 official. 

18 (d) SCHEDULE.—Three years after the date of enact19 ment of this Act, the Secretary shall require the inspection 

20 of all housing subject to this section for mold. The Sec21 retary may prioritize, within such period, inspections on 

22 the basis of vacancy, age of housing, or projected mod23 ernization or rehabilitation. The Secretary shall require 

24 abatement and final inspection and certification of such 

25 housing. 
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1 (e) REPORT.—Not later than three and one-half 

2 years after the enactment of this Act, the Secretary shall 

3 submit a report to the Congress describing the results of 

4 the activities under this section. 

5 (f) FUNDING.—The Secretary shall use amounts 

6 available under the Capital Fund under section 9(d) of 

7 the United States Housing Act of 1937 to carry out this 

8 section. The Secretary shall submit annually to the Con9 gress an estimate of the funds required to carry out the 

10 provisions of this section. 

11 SEC. 204. CONSTRUCTION REQUIREMENTS FOR NEW PUB12 LIC HOUSING. 

13 The Secretary of Housing and Urban Development 

14 shall take such actions and impose such standards and 

15 conditions as may be necessary or appropriate to ensure 

16 that public housing constructed after the date of the 

17 issuance of the model construction standards and tech18 niques established under section 103, is constructed in ac19 cordance with such model standards and techniques. 

20 SEC. 205. BUILDING CODES. 

21 (a) IN GENERAL.—The Secretary of Housing and 

22 Urban Development shall develop model construction 

23 standards and techniques for preventing and controlling 

24 mold within new buildings. 
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1 (b) CONTENTS.—The model standards and tech2 niques shall provide for geographic differences in construc3 tion types and materials, geology, weather, and other vari4 ables that may affect mold levels in new buildings. 

5 (c) DEVELOPMENT AND PUBLICATION.—To the max6 imum extent possible, these standards and techniques 

7 should be developed with the assistance of organizations 

8 involved in establishing national building construction 

9 standards and techniques. The Secretary shall make a 

10 draft of the document containing the model standards and 

11 techniques available for public review and comment. The 

12 Secretary shall make final model standards and techniques 

13 available to the public no later than one year after the 

14 effective date of this Act. 

15 SEC. 206. INSPECTION REQUIREMENT IN CONNECTION 

16 WITH FEDERALLY MADE OR INSURED MORT17 GAGES. 

18 (a) IN GENERAL.—After December 31, 2006, no 

19 Federal agency (as such term is defined in section 551 

20 of title 5, United States Code) may make, insure, or guar21 antee a mortgage or loan for purchase or lease of residen22 tial real property unless— 

23 (1) there has been an inspection of the property 

24 for the presence of indoor mold growth, toxic mold 

25 and/or the conditions that facilitate indoor mold 
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1 growth hazards by a mold inspector certified in ac2 cordance with standards promulgated pursuant to 

3 this Act within a reasonable time prior to the mak4 ing, insuring, or guaranteeing of the mortgage or 

5 loan and the results of the inspection are clearly and 

6 accurately disclosed to the purchaser, seller and 

7 mortgagor; and 

8 (2) the contract for purchase and sale of an in9 terest in residential real property for which such 

10 mortgage or loan was made contains a statement 

11 signed by the seller or lessor and by the purchaser 

12 or lessee that paragraph (1) has been complied with. 

13 (b) REGULATIONS.—The heads of each of the agen14 cies that make, insure, or guarantee mortgages or loans 

15 for purchase or lease of residential real property shall, not 

16 later than September 30, 2006, issue such regulations as 

17 may be necessary to carry out this section. 

18 TITLE III—INDUSTRY 

19 STANDARDS DEVELOPMENT 

20 SEC. 301. INDUSTRY STANDARDS DEVELOPMENT. 

21 (a) DEFINITIONS.—Section 2 of the National Cooper22 ative Research and Production Act of 1993 (15 U.S.C. 

23 4301) is amended— 

24 (1) in subsection (a) by adding at the end the 

25 following: 
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1 ‘‘(7) The term ‘standards development activity’ 

2 means any action taken by a standards development 

3 organization for the purpose of developing, promul4 gating, revising, amending, reissuing, interpreting, 

5 or otherwise maintaining a voluntary consensus 

6 standard for building products that are designed to 

7 retard the development of mold or the storage of 

8 those products or using such standard in conformity 

9 assessment activities. 

10 ‘‘(8) The term ‘standards development organi11 zation’ has the same meaning as the terms ‘vol12 untary consensus standards body’ and ‘voluntary, 

13 private sector consensus standards body’ as such 

14 term are used in section 12(d) of the National Tech15 nology Transfer and Advancement Act of 1995 and 

16 in Circular Number A–119, as revised February 10, 

17 1998, of the Office of Management and Budget. 

18 ‘‘(9) The term ‘technical standard’’has the 

19 meaning given such term in section 12(d)(4) of the 

20 National Technology Transfer and Advancement Act 

21 of 1995. 

22 ‘‘(10) The term ‘voluntary consensus standard’ 

23 has the meaning given such term in Circular Num24 ber A–119, as revised February 10, 1998, of the Of25 fice of Management and Budget.’’; and 
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1 (2) by adding at the end the following: 

2 ‘‘(c) The term ‘standards development activity’ ex3 cludes the following activities: 

4 ‘‘(1) Exchanging information among competi5 tors relating to cost, sales, profitability, prices, mar6 keting, or distribution of any product, process, or 

7 service that is not reasonably required for the pur8 pose of developing or promulgating a voluntary con9 sensus standard, or using such standard in con10 formity assessment activities. 

11 ‘‘(2) Entering into any agreement or engaging 

12 in any other conduct that would allocate a market 

13 with a competitor. 

14 ‘‘(3) Entering into any agreement or conspiracy 

15 that would set or restrain prices of any good or serv16 ice.’’. 

17 (b) RULE OF REASON STANDARD.—Section 3 of the 

18 National Cooperative Research and Production Act of 

19 1993 (15 U.S.C. 4302) is amended by striking ‘‘of any 

20 person in making or performing a contract to carry out 

21 a joint venture shall’’ and inserting the following: 

22 ‘‘of— 

23 ‘‘(1) any person in making or performing a con24 tract to carry out a joint venture, or 
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1 ‘‘(2) a standards development organization 

2 while engaged in a standards development activity, 

3 including a standards development activity for build4 ing products that are designed to retard the develop5 ment of mold or the storage of those products 

6 shall’’. 

7 (c) LIMITATION ON RECOVERY.—Section 4 of the 

8 National Cooperative Research and Production Act of 

9 1993 (15 U.S.C. 4303) is amended— 

10 (1) in subsections (a)(1), (b)(1), and (c)(1) by 

11 inserting ‘‘, for a standards development activity en12 gaged in by standards development organization 

13 against which such claim is made’’ after ‘‘joint ven14 ture’’, and 

15 (2) in subsection (e)— 

16 (A) by inserting ‘‘, or of a standards devel17 opment activity engaged in by a standards de18 velopment organization’’ before the period at 

19 the end, and 

20 (B) by redesignating such subsection as 

21 subsection (f), and 

22 (3) by inserting after subsection (d) the fol23 lowing: 

24 ‘‘(e) Subsections (a), (b), and (c) shall not be con25 strued to modify the liability under the antitrust laws of 
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1 any person (other than a standards development organiza2 tion) who— 

3 ‘‘(1) directly (or through an employee or agent) 

4 participates in a standards development activity with 

5 respect to which a violation of any of the antitrust 

6 laws is found, 

7 ‘‘(2) is not a full-time employee of the stand8 ards development organization that engaged in such 

9 activity, and 

10 ‘‘(3) is, or is an employee or agent of a person 

11 who is, engaged in a line of commerce that is likely 

12 to benefit directly from the operation of the stand13 ards development activity with respect to which such 

14 violation is found.’’. 

15 (d) ATTORNEY FEES.—Section 5 of the National Co16 operative Research and Production Act of 1993 (15 

17 U.S.C. 4304) is amended— 

18 (1) in subsection (a) by inserting ‘‘, or of a 

19 standards development activity engaged in by a 

20 standards development organization (including an 

21 organization developing standards for building prod22 ucts that are designed to retard the development of 

23 mold or the storage of those products)’’ after ‘‘joint 

24 venture’’, and 

25 (2) by adding at the end the following: 
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1 ‘‘(c) Subsections (a) and (b) shall not apply with re2 spect to any person who— 

3 ‘‘(1) directly participates in a standards devel4 opment activity (including developing standards for 

5 building products that are designed to retard the de6 velopment of mold or the storage of those products) 

7 with respect to which a violation of any of the anti8 trust laws is found, 

9 ‘‘(2) is not a full-time employee of a standards 

10 development organization (including an organization 

11 developing standards for building products that are 

12 designed to retard the development of mold or the 

13 storage of those products) that engaged in such ac14 tivity, and 

15 ‘‘(3) is, or is an employee or agent of a person 

16 who is, engaged in a line of commerce that is likely 

17 to benefit directly from the operation of the stand18 ards development activity with respect to which such 

19 violation is found.’’. 

20 (e) DISCLOSURE OF STANDARDS DEVELOPMENT AC21 TIVITY.—Section 6 of the National Cooperative Research 

22 and Production Act of 1993 (15 U.S.C. 4305) is amend23 ed— 

24 (1) in subsection (a)— 
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1 (A) by redesignating paragraphs (1), (2), 

2 and (3) as subparagraphs (A), (B), and (C), re3 spectively, 

4 (B) by inserting ‘‘(1)’’ after ‘‘(a)’’, and 

5 (C) by adding at the end the following: 

6 ‘‘(2) A standards development organization (includ7 ing an organization developing standards for building 

8 products that are designed to retard the development of 

9 mold or the storage of those products) may, not later than 

10 90 days after commencing a standards development activ11 ity engaged in for the purpose of developing or promul12 gating a voluntary consensus standards or not later than 

13 90 days after the date of the enactment of the Standards 

14 Development Organization Advancement Act of 2002, 

15 whichever is later, file simultaneously with the Attorney 

16 General and the Commission, a written notification dis17 closing— 

18 ‘‘(A) the name and principal place of business 

19 of the standards development organization, and 

20 ‘‘(B) documents showing the nature and scope 

21 of such activity. 

22 Any standards development organization (including an or23 ganization developing standards for building products that 

24 are designed to retard the development of mold or the 

25 storage of those products) may file additional disclosure 
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1 notifications pursuant to this section as are appropriate 

2 to extend the protections of section 4 to standards develop3 ment activities that are not covered by the initial filing 

4 or that have changed significantly since the initial filing.’’, 

5 (2) in subsection (b)— 

6 (A) in the 1st sentence by inserting ‘‘, or 

7 a notice with respect to such standards develop8 ment activity that identifies the standards de9 velopment organization engaged in such activity 

10 and that describes such activity in general 

11 terms’’ before the period at the end, and 

12 (B) in the last sentence by inserting ‘‘or 

13 available to such organization, as the case may 

14 be’’ before the period, 

15 (3) in subsection (d)(2) by inserting ‘‘, or the 

16 standards development activity,’’ after ‘‘venture’’, 

17 (4) in subsection (e)— 

18 (A) by striking ‘‘person who’’ and inserting 

19 ‘‘person or standards development organization 

20 that’’, and 

21 (B) by inserting ‘‘or any standards devel22 opment organization (including an organization 

23 developing standards for building products that 

24 are designed to retard the development of mold 
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1 or the storage of those products)’’ after ‘‘per2 son’’ the last place it appears, and 

3 (5) in subsection (g)(1) by inserting ‘‘or stand4 ards development organization (including an organi5 zation developing standards for building products 

6 that are designed to retard the development of mold 

7 or the storage of those products)’’ after ‘‘person’’. 

8 TITLE IV—INDOOR MOLD 

9 HAZARD ASSISTANCE 

10 SEC. 401. GRANTS FOR REMEDIATION OF PUBLIC BUILD11 INGS AND SEVERELY IMPACTED HOMES. 

12 (a) IN GENERAL.—The Administrator of the Envi13 ronmental Protection Agency shall make grants available 

14 to State and local governments to cover— 

15 (1) costs associated with remediating mold 

16 growth in buildings owned or leased by such govern17 ments, including but not limited to schools and mul18 tifamily dwellings, and to the owners of residential 

19 properties, including both single family and multi20 family properties; and 

21 (2) the costs of temporary housing, food, and 

22 moving costs for periods not in excess of 6 months 

23 for individuals severely impacted by toxic mold in 

24 their residences who are without insurance coverage 

25 for toxic mold and who do not have financial re-
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1 sources to obtain alternative housing, as determined 

2 on a case by case basis by the State or local govern3 ment. 

4 (b) USE OF FUNDS.—All funds included in a grant 

5 under subsection (a)(1) that are awarded to schools shall 

6 only be used for purposes of remediation, including the 

7 the costs of inspection, risk assessment, testing, remedi8 ation, and maintenance. 

9 TITLE V—TAX PROVISIONS 

10 SEC. 501. TAX CREDIT FOR TOXIC MOLD INSPECTION AND 

11 REMEDIATION. 

12 (a) IN GENERAL.—Subpart B of part IV of sub13 chapter A of chapter 1 of the Internal Revenue Code of 

14 1986 is amended by adding at the end the following new 

15 section: 

16 ‘‘SEC. 30B. CREDIT FOR MOLD INSPECTION AND REMEDI17 ATION. 

18 ‘‘(a) GENERAL RULE.—There shall be allowed as a 

19 credit against the tax imposed by this chapter for the tax20 able year an amount equal to 60 percent of mold inspec21 tion and remediation expenses paid or incurred by the tax22 payer during such taxable year. 

23 ‘‘(b) LIMITATION.—The amount of the credit allowed 

24 under subsection (a) for any taxable year shall not exceed 

25 $50,000. 
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1 ‘‘(c) MOLD INSPECTION AND REMEDIATION EX2 PENSES.—For purposes of this section, the term ‘mold in3 spection and remediation expenses’ means expenses paid 

4 or incurred by the taxpayer (and not reimbursed by insur5 ance or otherwise) to carry out— 

6 ‘‘(1) a risk assessment or inspection of housing 

7 for the presence of indoor mold hazards under sec8 tion 202 of the United States Toxic Mold Safety and 

9 Protection Act, 

10 ‘‘(2) a risk assessment or inspection of any 

11 other building for the presence of mold (as defined 

12 in section 101(2) of the United States Toxic Mold 

13 Safety and Protection Act), or 

14 ‘‘(3) a remediation of mold growth in housing 

15 or any other building. 

16 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 

17 or credit under any other provision of this chapter shall 

18 be allowed with respect to mold inspection and remedi19 ation expenses taken into account for the credit under this 

20 section. 

21 ‘‘(e) CERTAIN RULES MADE APPLICABLE.—All per22 sons treated as one employer under subsection (a) or (b) 

23 of section 52 shall be treated as 1 taxpayer for purposes 

24 of this section. 
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1 ‘‘(f) APPLICATION WITH OTHER CREDITS.—The 

2 credit allowed by subsection (a) for any taxable year shall 

3 not exceed the excess (if any) of— 

4 ‘‘(1) the regular tax for the taxable year, re5 duced by the sum of the credits allowable under sub6 part A and the preceding sections of this subpart, 

7 over 

8 ‘‘(2) the tentative minimum tax for the taxable 

9 year.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 for subpart B of part IV of subchapter A of chapter 1 

12 of the Internal Revenue Code of 1986 is amended by add13 ing at the end the following: 

‘‘30B. Credit for mold inspection and remediation.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to amounts paid or incurred in tax16 able years beginning after December 31, 2006. 

17 TITLE VI—NATIONAL TOXIC 

18 MOLD HAZARD INSURANCE 

19 PROGRAM 

20 Subtitle A—Insurance Program 

21 SEC. 601. PROGRAM AUTHORITY. 

22 (a) IN GENERAL.—The Director of the Federal 

23 Emergency Management Agency shall establish and carry 

24 out a national toxic mold insurance program to enable in25 terested persons to purchase insurance against losses re-
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1 sulting from mold hazards in real properties located in the 

2 United States. 

3 (b) PARTICIPATION.—In carrying out the toxic mold 

4 hazard insurance program under this title, the Director 

5 shall, to the maximum extent practicable, encourage and 

6 arrange for— 

7 (1) appropriate financial participation and risk 

8 sharing in the program by insurance companies and 

9 other insurers; and 

10 (2) other appropriate participation on other 

11 than a risk-sharing basis, by insurance companies 

12 and other insurers, insurance agents and brokers, 

13 and insurance adjustment organizations, in accord14 ance with the provisions of subtitle B. 

15 SEC. 602. SCOPE OF PROGRAM AND PRIORITIES. 

16 (a) PRIORITY OF PROGRAM SCOPE.—In carrying out 

17 the toxic mold hazard insurance program, the Director 

18 shall afford a priority to making toxic mold hazard insur19 ance available to cover residential properties which are de20 signed for the occupancy of from one to four families. 

21 (b) ADDITIONAL SCOPE.—If, pursuant to studies and 

22 investigations pursuant to section 604 or such other infor23 mation as the Director considers appropriate, the Director 

24 determines that it would be feasible to extend the insur25 ance program under this title to cover other properties, 
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1 the Director may take such action under this title as may 

2 be necessary to make insurance available to cover, on such 

3 basis as may be feasible, any types and classes of— 

4 (1) other residential properties; 

5 (2) church properties, and business properties 

6 which are owned or leased and operated by small 

7 business concerns; 

8 (3) other business properties; 

9 (4) properties occupied by private nonprofit or10 ganizations; and 

11 (5) properties owned by State and local govern12 ments and agencies thereof; 

13 and any such extensions of the program to any types and 

14 classes of these properties shall from time to time be pre15 scribed in regulations. 

16 SEC. 603. NATURE AND LIMITATION OF INSURANCE COV17 ERAGE. 

18 The Director shall from time to time, after consulta19 tion with interested parties (including the insurance au20 thorities of the States), provide by regulation for general 

21 terms and conditions of insurability which shall be applica22 ble to properties eligible for toxic mold hazard insurance 

23 coverage under section 602, including— 

24 (1) the types, classes, and locations of any such 

25 properties which shall be eligible for such insurance; 
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1 (2) the nature and limits of loss or damage that 

2 may be covered by such insurance, which shall in3 clude costs of property damage and loss, remedi4 ation, relocation (during remediation or perma5 nently), and rental of an alternative dwelling during 

6 remediation; 

7 (3) the classification, limitation, and rejection 

8 of any risks that may be appropriate; 

9 (4) appropriate minimum premiums; 

10 (5) appropriate loss-deductibles; 

11 (6) appropriate limits on aggregate liability 

12 under such coverage, based on the type of property 

13 insured; and 

14 (7) any other terms and conditions relating to 

15 insurance coverage or exclusion which may be nec16 essary to carry out the purposes of this title. 

17 SEC. 604. ESTIMATES OF PREMIUM RATES. 

18 The Director shall undertake and carry out such 

19 studies and investigations and receive or exchange such 

20 information as may be necessary to estimate, and shall 

21 from time to time estimate the following premium rates 

22 for toxic mold hazard insurance coverage under this title: 

23 (1) ACTUARIAL RATES.—The risk premium 

24 rates that would be required to make such insurance 

25 available on an actuarial basis for any types and 
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1 classes of properties for which insurance coverage is 

2 available under section 602 and which— 

3 (A) are based on consideration of the risk 

4 involved and accepted actuarial principles; 

5 (B) include the applicable operating costs 

6 and allowances set forth in the schedules pre7 scribed under section 607 and reflected in such 

8 rates; and 

9 (C) include any administrative expenses of 

10 carrying out the insurance program under this 

11 title. 

12 (2) SUBSIDIZED RATES.—The risk premium 

13 rates that— 

14 (A) are less than the rates estimated under 

15 paragraph (1); 

16 (B) would be reasonable; 

17 (C) would encourage prospective insureds 

18 to purchase toxic mold hazard insurance cov19 erage; 

20 (D) would be consistent with the purposes 

21 of this title; and 

22 (E) include any administrative expenses in23 curred in carrying out the insurance program 

24 under this title. 
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1 SEC. 605. ESTABLISHMENT OF CHARGEABLE PREMIUM 

2 RATES. 

3 (a) IN GENERAL.—On the basis of estimates made 

4 under section 604 and such other information as may be 

5 necessary, the Director shall from time to time, after con6 sultation with the interested parties (including the insur7 ance authorities of the States), prescribe by regulation— 

8 (1) chargeable premium rates for any types and 

9 classes of properties for which insurance coverage 

10 shall be available under section 602 (at less than the 

11 estimated risk premium rates under section 604(1), 

12 where necessary), and 

13 (2) the terms and conditions under which, and 

14 the areas within which, such rates shall apply. 

15 (b) FACTORS.—Such rates shall, insofar as prac16 ticable, be— 

17 (1) based on a consideration of the respective 

18 risks involved, including differences in risks due to 

19 construction types and materials, building systems, 

20 geology, climate, and other factors that may affect 

21 mold levels in buildings; 

22 (2)(A) adequate, on the basis of accepted actu23 arial principles, to provide reserves for anticipated 

24 losses; or 

25 (B) if less than such amount consistent with 

26 the objective of making toxic mold hazard insurance 
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1 coverage available where necessary at reasonable 

2 rates so as to encourage prospective insureds to pur3 chase such insurance and with the purposes of this 

4 title; 

5 (3) adequate to provide for any administrative 

6 expenses of the insurance programs under this title; 

7 and 

8 (4) stated so as to reflect the basis for such 

9 rates, including the differences (if any) between the 

10 estimated actuarial risk premium rates under section 

11 604(1) and the estimated subsidized risk premium 

12 rates under section 604(2). 

13 (c) FULL ACTUARIAL RATES FOR COMMUNITIES NOT

14 IN COMPLIANCE WITH BUILDING INSPECTION, CERTIFI15 CATE OF OCCUPANCY, AND PUBLIC DISCLOSURE PROVI16 SIONS.—Subject only to the limitation under subsection 

17 (d), the chargeable rate with respect to any property that 

18 is located within a jurisdiction that the Director deter19 mines has not adopted adequate toxic mold control meas20 ures, with effective enforcement provisions, that the Direc21 tor determines are consistent with the model standards 

22 and techniques for inspection and certification of occu23 pancy issued under section 201 and with the model stand24 ards for public disclosure issued under section 202, shall 

25 not be less than the applicable estimated risk premium 
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1 rate for such area (or subdivision thereof) under section 

2 604(1), except that such premium rate for such properties 

3 shall be affordable and reasonably priced. 

4 (d) ANNUAL LIMITATION ON PREMIUM IN5 CREASES.—Notwithstanding any other provision of this 

6 title, the chargeable risk premium rates for toxic mold 

7 hazard insurance under this title for any properties within 

8 any single risk classification may not be increased by an 

9 amount that would result in the average of such rate in10 creases for properties within the risk classification during 

11 any 12-month period exceeding 10 percent of the average 

12 of the risk premium rates for properties within the risk 

13 classification upon the commencement of such 12-month 

14 period. 

15 (e) $200 MAXIMUM PREMIUM FOR SINGLE FAMILY

16 DWELLINGS.—The chargeable risk premium rate for toxic 

17 mold hazard insurance under this title for a single family 

18 dwelling shall be affordable and reasonably priced. 

19 SEC. 606. NATIONAL TOXIC MOLD HAZARD INSURANCE 

20 FUND. 

21 (a) ESTABLISHMENT AND USES.—To carry out the 

22 toxic mold hazard insurance program under this title, the 

23 Director shall establish in the Treasury of the United 

24 States a National Toxic Mold Hazard Insurance Fund, 

25 which shall be an account separate from any other ac-
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1 counts or funds available to the Director and shall be 

2 available as described in subsection (f), without fiscal year 

3 limitation (except as otherwise provided in this section)— 

4 (1) for making such payments as may, from 

5 time to time, be required under section 634; 

6 (2) to repay to the Secretary of the Treasury 

7 such sums as may be borrowed (together with inter8 est) pursuant to subsection (e); 

9 (3) to the extent approved in appropriation 

10 Acts, to pay any administrative expenses of the toxic 

11 mold hazard insurance program; and 

12 (4) for the purposes specified in subsection (d) 

13 under the conditions provided therein. 

14 (b) CREDITS.—The Fund shall be credited with— 

15 (1) any amounts borrowed under subsection (e); 

16 (2) any amounts as may be appropriated for 

17 the Fund; 

18 (3) interest which may be earned on invest19 ments of the Fund pursuant to subsection (c); 

20 (4) receipts from any other operations under 

21 this title (including premiums under the conditions 

22 specified in subsection (d)); and 

23 (5) such other amounts as may be credited to 

24 the Fund. 
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1 (c) INVESTMENT.—If the Director determines that 

2 the amounts in the Fund are in excess of current needs, 

3 the Director may request the investment of such amounts 

4 as the Director deems advisable by the Secretary of the 

5 Treasury in obligations issued or guaranteed by the 

6 United States. 

7 (d) FEDERAL OPERATION OF PROGRAM.—In the 

8 event the Director makes a determination under section 

9 641 that operation of the toxic mold hazard insurance pro10 gram, in whole or in part, should be carried out through 

11 the facilities of the Federal Government, the Fund shall 

12 be available for all purposes incident thereto, including— 

13 (1) costs incurred in the adjustment and pay14 ment of any claims for losses, and 

15 (2) payment of applicable operating costs set 

16 forth in the schedules prescribed under section 607, 

17 for so long as the program is so carried out, and in such 

18 event any premiums paid shall be deposited by the Direc19 tor to the credit of the Fund. 

20 (e) BORROWING.— 

21 (1) AUTHORITY.—To the extent that the 

22 amounts in the Fund are insufficient to pay claims 

23 and expenses under the toxic mold hazard insurance 

24 program, the Director may issue such obligations of 

25 the Fund as may be necessary to cover the insuffi-
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1 ciency and the Secretary of the Treasury shall pur2 chase any such obligations issued. 

3 (2) PUBLIC DEBT TRANSACTION.—For the pur4 pose of purchasing any such obligations, the Sec5 retary may use as a public debt transaction the pro6 ceeds from the sale of any securities issued under 

7 chapter 31 of title 31, United States Code, and the 

8 purposes for which securities are issued under such 

9 chapter are hereby extended to include any purchase 

10 by the Secretary of such obligations under this sub11 section. 

12 (3) CHARACTERISTICS OF OBLIGATIONS.—Obli13 gations issued under this subsection shall be in such 

14 forms and denominations, bear such maturities, bear 

15 interest at such rate, and be subject to such other 

16 terms and conditions, as the Secretary shall deter17 mine. 

18 (4) TREATMENT.—All redemptions, purchases, 

19 and sales by the Secretary of obligations under this 

20 subsection shall be treated as public debt trans21 actions of the United States. 

22 (f) AVAILABILITY.—The Fund shall be available, with 

23 respect to any fiscal year only to the extent approved in 

24 appropriation Acts; except that the Fund shall be available 
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1 for the purpose described in subsection (d)(1) without 

2 such approval. 

3 SEC. 607. OPERATING COSTS AND ALLOWANCES. 

4 (a) IN GENERAL.—The Director shall from time to 

5 time negotiate with appropriate representatives of the in6 surance industry for the purpose of establishing— 

7 (1) a current schedule of operating costs appli8 cable both to risk-sharing insurance companies and 

9 other insurers and to insurance companies and other 

10 insurers, insurance agents and brokers, and insur11 ance adjustment organizations participating on other 

12 than a risk-sharing basis, and 

13 (2) a current schedule of operating allowances 

14 applicable to risk-sharing insurance companies and 

15 other insurers, 

16 which may be payable in accordance with the provisions 

17 of subtitle B, and such schedules shall from time to time 

18 be prescribed in regulations. 

19 (b) DEFINITIONS.—For purposes of subsection (a), 

20 the following definitions shall apply: 

21 (1) OPERATING ALLOWANCES.—The term ‘‘op22 erating allowances’’ includes amounts for profit and 

23 contingencies that the Director determines are rea24 sonable and necessary to carry out the purposes of 

25 this title. 
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1 (2) OPERATING COSTS.—The term ‘‘operating 

2 costs’’ includes— 

3 (A) expense reimbursements covering the 

4 direct, actual, and necessary expenses incurred 

5 in connection with selling and servicing toxic 

6 mold hazard insurance coverage; 

7 (B) reasonable compensation payable for 

8 selling and servicing such coverage, or commis9 sions or service fees paid to producers; 

10 (C) loss adjustment expenses; and 

11 (D) other direct, actual, and necessary ex12 penses which the Director finds are incurred in 

13 connection with selling or servicing such insur14 ance coverage. 

15 SEC. 608. PAYMENT OF CLAIMS. 

16 The Director shall prescribe regulations establishing 

17 the general method or methods by which proved and ap18 proved claims for losses may be adjusted and paid for any 

19 losses or damages covered by toxic mold hazard insurance 

20 made available under this title. 

21 SEC. 609. DISSEMINATION OF INSURANCE INFORMATION. 

22 The Director shall from time to time take such action 

23 as may be necessary in order to make information avail24 able to the public, and to any State or local agency or 

25 official, with regard to— 
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1 (1) the toxic mold hazard insurance program, 

2 its coverage, and objectives; and 

3 (2) estimated and chargeable insurance pre4 mium rates under the program, including the basis 

5 for and differences between such rates in accordance 

6 with the provisions of this subtitle. 

7 SEC. 610. COORDINATION WITH OTHER PROGRAMS. 

8 In carrying out this title, the Director shall consult 

9 with other departments and agencies of the Federal Gov10 ernment, and with interstate, State, and local agencies 

11 having responsibilities for toxic mold inspection and pre12 vention, in order to ensure that the programs of such 

13 agencies and the program under this title are mutually 

14 consistent. 

15 SEC. 611. REPORTS. 

16 The Director shall annually submit a report of oper17 ations under this title to the Congress. 

18 Subtitle B—Organization and Ad19 ministration of Insurance Pro20 gram 

21 SEC. 621. IMPLEMENTATION. 

22 Following such consultation with representatives of 

23 the insurance industry as may be necessary, the Director 

24 shall implement the toxic mold hazard insurance program 

25 under subtitle A in accordance with the provisions of part 
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1 1 of this subtitle, and, if a determination is made by the 

2 Director under section 641, under part 2 of this subtitle. 

3 PART 1—INDUSTRY PROGRAM WITH FEDERAL 

4 FINANCIAL ASSISTANCE 

5 SEC. 631. INDUSTRY INSURANCE POOL. 

6 (a) FORMATION.—The Director may encourage and 

7 otherwise assist any insurance companies and other insur8 ers that meet the requirements prescribed under sub9 section (b) to form, as associate, or otherwise join together 

10 in a pool— 

11 (1) in order to provide the insurance coverage 

12 authorized under subtitle A; and 

13 (2) for the purpose of assuming, on such terms 

14 and conditions as may be agreed upon, such finan15 cial responsibility as will enable such companies and 

16 other insurers, with the Federal financial and other 

17 assistance available under this title, to assure a rea18 sonable proportion of responsibility for the adjust19 ment and payment of claims for losses under the 

20 toxic mold hazard insurance program. 

21 (b) REQUIREMENTS.—To promote the effective ad22 ministration of the toxic mold hazard insurance program 

23 under this part, and to ensure that the objectives of this 

24 title are furthered, the Director may prescribe appropriate 

25 requirements for insurance companies and other insurers 
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1 participating in such pool, including minimum require2 ments for capital or surplus or assets. 

3 SEC. 632. AGREEMENTS WITH INSURANCE POOL. 

4 (a) AUTHORITY.—The Director may enter into such 

5 agreements with the pool formed or otherwise created 

6 under this part as the Director deems necessary to carry 

7 out the purposes of this title. 

8 (b) CONTENTS.—Such agreements shall specify— 

9 (1) the terms and conditions under which risk 

10 capital will be available for the adjustment and pay11 ments of claims; 

12 (2) the terms and conditions under which the 

13 pool (and the companies and other insurers partici14 pating therein) shall participate in premiums re15 ceived and profits or losses realized or sustained; 

16 (3) the maximum amount of profit, established 

17 by the Director and set forth in the schedules pre18 scribed under section 607, which may be realized by 

19 such pool (and the companies and other insurers 

20 participating therein); 

21 (4) the terms and conditions under which oper22 ating costs and allowances set forth in the schedules 

23 prescribed under section 607 may be paid; and 
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1 (5) the terms and conditions under which pre2 mium equalization payments under section 634 will 

3 be made. 

4 (c) PARTICIPATION.—In addition, such agreements 

5 shall contain such provisions as the Director finds nec6 essary to ensure that— 

7 (1) no insurance company or other insurer that 

8 meets the requirements prescribed under section 

9 631(b) and has indicated an intention to participate 

10 in the toxic mold hazard insurance program on a 

11 risk-sharing basis, will be excluded from partici12 pating in the pool; 

13 (2) the insurance companies and other insurers 

14 participating in the pool will take whatever action 

15 may be necessary to provide continuity of toxic mold 

16 hazard insurance coverage by the pool; and 

17 (3) any insurance companies and other insur18 ers, insurance agents, and brokers and insurance ad19 justment organizations will be permitted to cooper20 ate with the pool as fiscal agents or otherwise, on 

21 other than a risk-sharing basis, to the maximum ex22 tent practicable. 
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1 SEC. 633. ADJUSTMENT AND PAYMENT OF CLAIMS AND JU2 DICIAL REVIEW. 

3 The insurance companies and other insurers that 

4 form, associate, or otherwise join together in the pool 

5 under this part may adjust and pay all claims for proved 

6 and approved losses covered by toxic mold hazard insur7 ance in accordance with the provisions of this title and, 

8 upon the disallowance by any such company or other in9 surer of any such claim, or upon the refusal of the claim10 ant to accept the amount allowed upon any such claim, 

11 the claimant, within one year after the date of mailing 

12 of notice of disallowance or partial disallowance of the 

13 claim, may institute an action on such claim against such 

14 company or other insurer in the United States district 

15 court for the district in which the insured property or the 

16 major part thereof shall have been situated, and original 

17 exclusive jurisdiction is hereby conferred upon such court 

18 to hear and determine such action without regard to the 

19 amount in controversy. 

20 SEC. 634. PREMIUM EQUALIZATION PAYMENTS. 

21 (a) PAYMENTS.—The Director, on such terms and 

22 conditions as the Director may from time to time pre23 scribe, shall make periodic payments to the pool formed 

24 or otherwise created under section 631, in recognition of 

25 such reductions in chargeable premium rates under section 

26 605 below estimated premium rates under section 604(1) 
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1 as are required in order to make toxic mold hazard insur2 ance available on reasonable terms and conditions. 

3 (b) PERIODS AND METHODS.—Designated periods 

4 under this section and the methods for determining the 

5 sum of premiums paid or payable during such periods 

6 shall be established by the Director. 

7 SEC. 635. EMERGENCY IMPLEMENTATION OF PROGRAM. 

8 (a) AUTHORITY.—Notwithstanding any other provi9 sions of this title, for the purpose of providing toxic mold 

10 hazard insurance coverage at the earliest possible time, 

11 the Director may carry out the insurance program under 

12 subtitle A during the period ending September 30, 2006, 

13 in accordance with the provisions of this part and the 

14 other provisions of this title insofar as they relate to this 

15 part, but subject to the modifications made by or under 

16 subsection (b). 

17 (b) PREMIUM RATES AND PROCEDURES.—In car18 rying out the toxic mold hazard insurance program pursu19 ant to subsection (a), the Director— 

20 (1) shall provide insurance coverage without re21 gard to any estimated risk premium rates which 

22 would otherwise be determined under section 604; 

23 and 

24 (2) shall utilize the provisions and procedures 

25 contained in or prescribed by this part (other than 
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1 section 634) and sections 651 and 652 to such ex2 tent and in such manner as the Director may con3 sider necessary or appropriate to carry out the pur4 pose of this section. 

5 PART 2—GOVERNMENT PROGRAM WITH 

6 INDUSTRY ASSISTANCE 

7 SEC. 641. FEDERAL OPERATION OF PROGRAM. 

8 (a) AUTHORITY.—If at any time, after consultation 

9 with representatives of the insurance industry, the Direc10 tor determines that operation of the toxic mold hazard in11 surance program as provided under part 1 cannot be car12 ried out, or that such operation, in itself, would be assisted 

13 materially by the Federal Government’s assumption, in 

14 whole or in part, of the operational responsibility for toxic 

15 mold insurance under this title (on a temporary or other 

16 basis), the Director shall promptly undertake any nec17 essary arrangements to carry out the program of toxic 

18 mold hazard insurance under subtitle A through the facili19 ties of the Federal Government, utilizing, for purposes of 

20 providing such insurance coverage— 

21 (1) insurance companies and other insurers, in22 surance agents and brokers, and insurance adjust23 ment organizations, as fiscal agents of the United 

24 States; 
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1 (2) such other officers and employees of any ex2 ecutive agency (as defined in section 105 of title 5 

3 of the United States Code) as the Director and the 

4 head of any such agency may from time to time, 

5 agree upon, on a reimbursement or other basis; or 

6 (3) both the alternatives specified in paragraphs 

7 (1) and (2). 

8 (b) REPORT.—Upon making the determination re9 ferred to in subsection (a), the Director shall make a re10 port to the Congress and, at the same time, to the private 

11 insurance companies participating in the toxic mold haz12 ard insurance program under this title. Such report 

13 shall— 

14 (1) state the reason for such determinations; 

15 (2) include findings that support such deter16 mination; 

17 (3) indicate the extent to which it is anticipated 

18 that the insurance industry will be utilized in pro19 viding toxic mold hazard insurance coverage under 

20 the program; and 

21 (4) contain such recommendations as the Direc22 tor considers appropriate. 

23 The Director shall not implement the program of toxic 

24 mold hazard insurance under subtitle A through the facili25 ties of the Federal Government before the expiration of 
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1 the 9-month period beginning upon the date of submission 

2 of the report under this subsection unless it would be im3 possible to continue to effectively carry out the program 

4 operations during such period. 

5 SEC. 642. ADJUSTMENT AND PAYMENT OF CLAIMS AND JU6 DICIAL REVIEW. 

7 If the program is carried out as provided in section 

8 1341, the Director may adjust and make payment of any 

9 claims for proved and approved losses covered by toxic 

10 mold hazard insurance, and upon the disallowance by the 

11 Director of any such claims, or upon the refusal of the 

12 claimant to accept the amount allowed upon any such 

13 claim, the claimant, within one year after the date of mail14 ing of notice of disallowance or partial disallowance by the 

15 Director, may institute an action against the Director on 

16 such claim in the United States district court for the dis17 trict in which the insured property or the major part 

18 thereof shall have been situated, and original exclusive ju19 risdiction is hereby conferred upon such court to hear and 

20 determine such action without regard to the amount in 

21 controversy. 
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1 PART 3—PROVISIONS OF GENERAL 

2 APPLICABILITY 

3 SEC. 651. SERVICES BY INSURANCE INDUSTRY. 

4 (a) CONTRACTS AND AGREEMENTS.—In admin5 istering the toxic mold hazard insurance program under 

6 this subtitle, the Director may enter into any contracts, 

7 agreements, or other appropriate arrangements which 

8 may, from time to time, be necessary for the purpose of 

9 utilizing, on such terms and conditions as may be agreed 

10 upon, the facilities and services of any insurance compa11 nies or other insurers, insurance agents and brokers, or 

12 insurance adjustment organizations; and such contracts, 

13 agreements, or arrangements may include provision for 

14 payment of applicable operating costs and allowances for 

15 such facilities and services as set forth in the schedules 

16 prescribed under section 607. 

17 (b) EXEMPTION FROM COMPETITIVE BIDDING RE18 QUIREMENTS.—Any such contracts, agreements, or other 

19 arrangements may be entered into without regard to the 

20 provisions of section 3709 of the Revised Statutes (41 

21 U.S.C. 5) or any other provisions of law requiring competi22 tive bidding and without regard to the provisions of the 

23 Federal Advisory Committee Act (5 U.S.C. App.). 

24 (c) LIABILITY.—The Director of the Federal Emer25 gency Management Agency shall hold any agent or broker 

26 selling or undertaking to sell toxic mold insurance cov-
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1 erage under this title harmless from any judgment for 

2 damages against such agent or broker as a result of any 

3 court action by a policyholder or applicant arising out of 

4 an error or omission on the part of the Federal Emergency 

5 Management Agency, and shall provide any such agent or 

6 broker with indemnification, including court costs and rea7 sonable attorney fees, arising out of and caused by an 

8 error or omission on the part of the Federal Emergency 

9 Management Agency and its contractors. The Director of 

10 the Federal Emergency Management Agency may not hold 

11 harmless or indemnify an agent or broker for his or her 

12 error or omission. 

13 SEC. 652. USE OF INSURANCE POOL, COMPANIES, OR 

14 OTHER PRIVATE ORGANIZATIONS FOR CER15 TAIN PAYMENTS. 

16 (a) AUTHORITY.—To provide for maximum efficiency 

17 in the administration of the toxic mold hazard insurance 

18 program and to facilitate the expeditious payment of any 

19 Federal funds under such program, the Director may 

20 enter into contracts with a pool formed or otherwise cre21 ated under section 631, or any insurance company or 

22 other private organization, for the purpose of securing per23 formance by such pool, company, or organization or any 

24 or all of the following responsibilities: 
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1 (1) Estimating and later determining any 

2 amounts of payments to be made. 

3 (2) Receiving from the Director, disbursing, 

4 and accounting for funds in making such payments. 

5 (3) Making such audits of the records of any 

6 insurance company or other insurer, insurance agent 

7 or broker, or insurance adjustment organization as 

8 may be necessary to assure that proper payments 

9 are made. 

10 (4) Otherwise assisting in such manner as the 

11 contract may provide to further the purposes of this 

12 title. 

13 (b) TERMS AND CONDITIONS.—Any contract with the 

14 pool or an insurance company or other private organiza15 tion under this section may contain such terms and condi16 tions at the Director finds necessary or appropriate for 

17 carrying out responsibilities under subsection (a), and may 

18 provide for payment of any costs which the Director deter19 mines are incidental to carrying out such responsibilities 

20 which are covered by the contract. 

21 (c) EXEMPTION FROM COMPETITIVE BIDDING RE22 QUIREMENTS.—Any contract entered into under sub23 section (a) may be entered into without regard to section 

24 3709 of the Revised Statutes (41 U.S.C. 5) or any other 

25 provision of law requiring competitive bidding. 
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1 (d) EFFICIENCY AND EFFECTIVENESS.—No contract 

2 may be entered into under this section unless the Director 

3 finds that the pool, company, or organization will perform 

4 its obligations under the contract efficiently and effec5 tively, and will meet such requirements as to financial re6 sponsibility, legal authority, and other matters as the Di7 rector finds appropriate. 

8 (e) CERTIFICATION OF PAYMENTS.— 

9 (1) BONDING.—Any such contract may require 

10 the pool, company, or organization or any of its offi11 cers or employees certifying payments or disbursing 

12 funds pursuant to the contract, or otherwise partici13 pating in carrying out the contract, to give surety 

14 bond to the United States in such amount as the Di15 rector may deem appropriate. 

16 (2) LIABILITY.— 

17 (A) No individual designated pursuant to a 

18 contract under this section to certify payments 

19 shall, in the absence of gross negligence or in20 tent to defraud the United States, be liable with 

21 respect to any payment certified by such indi22 vidual under this section. 

23 (B) No officer disbursing funds shall in 

24 the absence of gross negligence or intent to de25 fraud the United States, be liable with respect 
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1 to any payment by such officer under this sec2 tion if it was based upon a voucher signed by 

3 an individual designated to certify payments as 

4 provided in paragraph (2) of this subsection. 

5 (f) CONTRACT TERM.—Any contract entered into 

6 under this section shall be for a term of one year, and 

7 may be made automatically renewable from term to term 

8 in the absence of notice by either party of an intention 

9 to terminate at the end of the current term; except that 

10 the Director may terminate any such contract at any time 

11 (after reasonable notice to the pool, company, or organiza12 tion involved) if the Director finds that the pool, company, 

13 or organization has failed substantially to carry out the 

14 contract, or is carrying out the contract in a manner in15 consistent with the efficient and effective administration 

16 of the toxic mold hazard insurance program under this 

17 title. 

18 SEC. 653. SETTLEMENT AND ARBITRATION. 

19 (a) AUTHORITY.—The Director may make final set20 tlement of any claims or demands which may arise as a 

21 result of any financial transactions that the Director is 

22 authorized to carry out under this subtitle, and may, to 

23 assist the Director in making any such settlement, refer 

24 any disputes relating to such claims or demands to arbi25 tration, with the consent of the parties concerned. 
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1 (b) ARBITRATION.—Such arbitration shall be advi2 sory in nature, and any award, decision, or recommenda3 tion which may be made shall become final only upon the 

4 approval of the Director. 

5 SEC. 654. RECORDS AND AUDITS. 

6 (a) MAINTENANCE OF RECORDS.—The insurance 

7 pool formed or otherwise created under part 1 of this sub8 title, and any insurance company or other private organi9 zation executing any contract, agreement, or other appro10 priate arrangement with the Director under part 2 or this 

11 part, shall keep such records as the Director shall pre12 scribe, including records which fully disclose the total costs 

13 of the program undertaken or the services being rendered, 

14 and such other records as will facilitate an effective audit. 

15 (b) ACCESS TO RECORDS.—The Director and the 

16 Comptroller General of the United States, or any of their 

17 duly authorized representatives, shall have access for the 

18 purpose of audit and examination to any books, docu19 ments, papers and any such insurance company or other 

20 private organization that are pertinent to the costs of the 

21 program undertaken or the services being rendered. 
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1 Subtitle C—Miscellaneous 

2 Provisions 

3 SEC. 661. DEFINITIONS. 

4 For purposes of this title, the following definitions 

5 shall apply: 

6 (1) DIRECTOR.—The term ‘‘Director’’ means 

7 the Director of the Federal Emergency Management 

8 Agency. 

9 (2) FUND.—The term ‘‘Fund’’ means the Na10 tional Toxic Mold Hazard Insurance Fund estab11 lished under section 606. 

12 (3) INSURANCE ADJUSTMENT ORGANIZATION.— 

13 The term ‘‘insurance adjustment organization’’ in14 cludes any organizations and persons engaged in the 

15 business of adjusting loss claims arising under insur16 ance policies issued by any insurance company or 

17 other insurer. 

18 (4) INSURANCE COMPANY; OTHER INSURER; IN19 SURANCE AGENT OR BROKER.—The terms ‘‘insur20 ance company’’, ‘‘other insurer’’ and ‘‘insurance 

21 agent or broker’’ include any organizations and per22 sons authorized to engage in the insurance business 

23 under the laws of any State. 
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1 SEC. 662. PAYMENTS. 

2 Any payments under this title may be made (after 

3 necessary adjustment on account of previously made un4 derpayments or overpayments) in advance or by way of 

5 reimbursement, and in such installments and on such con6 ditions, as the Director may determine. 

7 SEC. 663. GOVERNMENT CORPORATION CONTROL ACT. 

8 The provisions of chapter 91 of title 31, United 

9 States Code, shall apply to the program under this title 

10 to the same extent that such provisions apply to wholly 

11 owned Government corporations. 

12 SEC. 664. FINALITY OF CERTAIN TRANSACTIONS. 

13 Notwithstanding any other provisions of law— 

14 (1) any financial transaction authorized to be 

15 carried out under this title, and 

16 (2) any payment authorized to be made or to 

17 be received in connection with any such financial 

18 transaction, 

19 shall be final and conclusive upon all officers of the Gov20 ernment. 

21 SEC. 665. AUTHORIZATION OF APPROPRIATIONS. 

22 There are authorized to be appropriated such sums 

23 as may from time to time be necessary to carry out this 

24 title, including amounts— 

25 (1) to reimburse the National Toxic Mold Haz26 ard Insurance Fund established under section 604 
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1 for premium equalization payments under section 

2 634 which have been made from the Fund; 

3 (2) for studies under this title; and 

4 (3) to make such other payments as may be 

5 necessary to carry out the purposes of this title. 

6 Any amounts appropriate pursuant to this section shall 

7 be available without fiscal year limitation. 

8 TITLE VII—HEALTH CARE 

9 PROVISIONS 

10 SEC. 701. MEDICAID WAIVER. 

11 Notwithstanding any other provision of law, a State 

12 (as defined for purposes of title XIX of the Social Security 

13 Act) may waive income, resource, and other requirements 

14 otherwise applicable under such title in order to provide 

15 medical assistance to individuals— 

16 (1) whose health has been adversely impacted 

17 (as certified by a physician) due to exposure to toxic 

18 mold; and 

19 (2) who do not have any health insurance cov20 erage, or lack adequate health insurance coverage, to 

21 treat the physical harm due to toxic mold poisoning. 

Æ