I

107TH CONGRESS

1ST SESSION H. R. 1428

To amend the National Flood Insurance Act of 1968 to reduce losses to

properties for which repetitive flood insurance claim payments have been

made.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Mr. BEREUTER (for himself, Mr. BLUMENAUER, and Mr. COSTELLO) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the National Flood Insurance Act of 1968 to

reduce losses to properties for which repetitive flood insurance claim payments have been made.

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 ‘‘Two Floods and You

5 Are Out of the Taxpayers’ Pocket Act of 2001’’.

6 SEC. 2. FLOOD LOSS REDUCTION FOR REPETITIVE FLOOD

7 INSURANCE CLAIM PROPERTIES.

8 Section 1366 of the National Flood Insurance Act of

9 1968 (42 U.S.C. 4104c) is amended—
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1 (1) in subsection (a), by inserting after the first

2 sentence the following new sentence: ‘‘In awarding

3 grants under this section for mitigation activities,

4 the Director shall give priority to properties for

5 which repetitive flood insurance claim payments have

6 been made.’’;

7 (2) in the last sentence of subsection (c), by in8 serting before the period the following: ‘‘, and shall

9 address properties in the area for which repetitive

10 flood insurance claim payments have been made’’.

11 (3) in subsection (f), by striking paragraph (3)

12 and inserting the following new paragraph:

13 ‘‘(3) WAIVER.—The Director may waive the

14 dollar amount limitations under paragraphs (1) and

15 (2) for any State or community—

16 ‘‘(A) for any 5-year period when a major

17 disaster or emergency declared by the President

18 (pursuant to the Robert T. Stafford Disaster

19 Relief and Emergency Assistance Act (42

20 U.S.C. 5121 et seq.)) as a result of flood condi21 tions is in effect with respect to areas in the

22 State or community; or

23 ‘‘(B) whenever the Director determines

24 that the State or community has properties for

25 which repetitive flood insurance claim payments
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1 have been made and that waiver of the cost lim2 itations is cost-effective and in the best inter3 ests of the National Flood Insurance Fund.’’.

4 SEC. 3. NATIONAL FLOOD MITIGATION FUND.

5 (a) CREDITS.—Section 1367(b) of the National Flood

6 Insurance Act of 1968 (42 U.S.C. 4104d(b)) is

7 amended—

8 (1) by striking paragraph (1) and inserting the

9 following new paragraph:

10 ‘‘(1) amounts from the National Flood Insur11 ance Fund, in amounts not exceeding $70,000,000

12 in each of fiscal years 2002, 2003, 2004, and 2005,

13 of which all amounts made available under this

14 paragraph in excess of $20,000,000 in each such fis15 cal year shall be used only under section 1366 for

16 mitigation activities for properties for which repet17 itive flood insurance claim payments have been

18 made, such sums to remain available until ex19 pended;’’;

20 (2) in paragraph (2), by striking ‘‘and’’ at the

21 end;

22 (3) in paragraph (3), by striking the period at

23 the end and inserting ‘‘; and’’; and

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

25 paragraph:
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1 ‘‘(4) any amounts which may be appropriated

2 for the Fund, which are authorized to be appro3 priated in amounts not exceeding $50,000,000 in

4 each of fiscal years 2002, 2003, 2004, and 2005,

5 which amounts shall be used only under section

6 1366 for mitigation activities for properties for

7 which repetitive flood insurance claim payments have

8 been made, such sums to remain available until ex9 pended.’’.

10 SEC. 4. CONSOLIDATION OF AUTHORIZATIONS.

11 (a) IN GENERAL.—The National Flood Insurance

12 Act of 1968 is amended as follows:

13 (1) BORROWING AUTHORITY.—In the first sen14 tence of section 1309(a) (42 U.S.C. 4016(a)), by

15 striking ‘‘through September’’ and all that follows

16 through ‘‘, and’’ and inserting the following:

17 ‘‘through the date specified in section 1319, and’’.

18 (2) AUTHORITY FOR CONTRACTS.—In section

19 1319 (42 U.S.C. 4026), by striking ‘‘after’’ and all

20 that follows and inserting ‘‘after September 30,

21 2005.’’.

22 (3) EMERGENCY IMPLEMENTATION.—In section

23 1336(a) (42 U.S.C. 4056(a)), by striking ‘‘during

24 the period’’ and all that follows through ‘‘in accord-
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1 ance’’ and inserting ‘‘during the period ending on

2 the date specified in section 1319, in accordance’’.

3 (4) AUTHORIZATION OF APPROPRIATIONS FOR

4 STUDIES.—In section 1376(c) (42 U.S.C. 4127(c)),

5 by striking ‘‘through’’ and all that follows and in6 serting the following: ‘‘through the date specified in

7 section 1319.’’.

8 SEC. 5. CHARGEABLE PREMIUM RATES.

9 (a) ACTUARIAL RATE PROPERTIES.—Section 1308 of

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

11 4015) is amended by striking subsection (c) and inserting

12 the following new subsection:

13 ‘‘(c) ACTUARIAL RATE PROPERTIES.—Subject only

14 to the limitation provided under paragraph (1), the

15 chargeable rate shall not be less than the applicable esti16 mated risk premium rate for such area (or subdivision

17 thereof) under section 1307(a)(1) with respect to the fol18 lowing properties:

19 ‘‘(1) POST-FIRM PROPERTIES.—Any property

20 the construction or substantial improvement of

21 which the Director determines has been started after

22 December 31, 1974, or started after the effective

23 date of the initial rate map published by the Direc24 tor under paragraph (2) of section 1360 for the area

25 in which such property is located, whichever is later,
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1 except that the chargeable rate for properties under

2 this paragraph shall be subject to the limitation

3 under subsection (e).

4 ‘‘(2) REPETITIVE CLAIM PAYMENTS PROP5 ERTIES.—Any property for which the Director deter6 mines that repetitive flood insurance claim payments

7 have been made and the owner of which has refused

8 a buyout, elevation, or other flood mitigation meas9 ure funded in whole or in part by the Federal Emer10 gency Management Agency.

11 ‘‘(3) CERTAIN LEASED COASTAL AND RIVER

12 PROPERTIES.—Any property leased from the Federal

13 Government (including residential and nonresidential

14 properties) that the Director determines is located

15 on the river-facing side of any dike, levee, or other

16 riverine flood control structure, or seaward of any

17 seawall or other coastal flood control structure.’’.

18 (b) APPLICABILITY OF ANNUAL LIMITATION ON PRE19 MIUM INCREASES.—Section 1308(e) of the National Flood

20 Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended

21 by striking ‘‘Notwithstanding’’ and inserting ‘‘Except with

22 respect to properties described under paragraph (2) or (3)

23 of subsection (c) and notwithstanding’’.
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1 SEC. 6. REMOVING REPETITIVE CLAIM PROPERTIES FROM

2 FEDERAL DISASTER ASSISTANCE RESPONSI3 BILITY.

4 (a) IN GENERAL.—Section 582 of the National Flood

5 Insurance Reform Act of 1994 (42 U.S.C. 5154a) is

6 amended—

7 (1) by redesignating subsections (d) and (e) as

8 subsections (e) and (f), respectively; and

9 (2) by inserting after subsection (c) the fol10 lowing new subsection:

11 ‘‘(d) UNMITIGATED REPETITIVE CLAIM PROP12 ERTIES.—Notwithstanding any other provision of law, no

13 Federal disaster relief assistance made available in a flood

14 disaster area may be used to make a payment (including

15 any loan assistance payment) for repair, replacement, or

16 restoration for damage to any property in the area for

17 which—

18 ‘‘(1) repetitive flood insurance claim payments

19 have been made; and

20 ‘‘(2) in accordance with such requirements as

21 the Director may establish, mitigation assistance

22 under section 1366 of this Act or section 404 of the

23 Robert T. Stafford Disaster Relief and Emergency

24 Assistance Act (42 U.S.C. 5170c) has been offered

25 to the owner of the property, before or after the oc-
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1 currence of the flood loss events, which was refused

2 by the owner.’’.

3 (b) EFFECTIVE DATE.—Notwithstanding subsection

4 (f) of section 582 of the National Flood Insurance Reform

5 Act of 1994 (as so redesignated by paragraph (1)(A) of

6 this subsection), the amendment made by paragraph (1)

7 shall apply to disasters declared after the date of the en8 actment of this Act.

9 SEC. 7. MITIGATION GRANTS FOR REPETITIVE CLAIM

10 PROPERTIES.

11 (a) IN GENERAL.—Chapter I of the National Flood

12 Insurance Act of 1968 is amended by adding after section

13 1322 (42 U.S.C. 4029) the following new section:

14 ‘‘GRANTS FOR REPETITIVE CLAIM PROPERTIES

15 ‘‘SEC. 1323. The Director may provide funding for

16 mitigation actions that reduce flood damages to repetitive

17 flood insurance claim payments properties, if the Director

18 determines that—

19 ‘‘(1) such activities are in the best interest of

20 the National Flood Insurance Fund; and

21 ‘‘(2) such activities can not be funded under the

22 program under section 1366 because—

23 ‘‘(A) the State or community in which the

24 property is located can not comply with the re25 quirements of section 1366(g); or
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1 ‘‘(B) the State or community does not

2 have the capacity to manage such activities.’’.

3 (b) AVAILABILITY OF NATIONAL FLOOD INSURANCE

4 FUND AMOUNTS.—Section 1310(a) of the National Flood

5 Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended—

6 (1) in paragraph (7), by striking ‘‘and’’ at the

7 end;

8 (2) in paragraph (8), by striking the period at

9 the end and inserting ‘‘; and’’; and

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

11 paragraph:

12 ‘‘(9) for funding for mitigation actions under

13 section 1323.’’.

14 SEC. 8. USE RESTRICTIONS ON ACQUIRED PROPERTY.

15 Section 1366(e)(5)(C) of the National Flood Insur16 ance Act of 1968 (42 U.S.C. 4104c(e)(5)(C)) is amended

17 by striking ‘‘for public use, as the Director determines is

18 consistent with sound land management and use in such

19 area’’ and inserting the following: ‘‘except that the Direc20 tor may not provide amounts under this section for use

21 for acquisition of properties unless the State or community

22 agrees, to the satisfaction of the Director, that the instru23 ment for acquisition of the property will convey to the

24 United States a future interest in all right, title, and inter25 est in and to all property acquired with the amounts under
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1 this section that is contingent upon the condition that the

2 property acquired ceases to be dedicated and maintained

3 for use that is compatible with open space, recreational,

4 or wetlands management practices.’’.

5 SEC. 9. DEFINITION OF REPETITIVE CLAIM PROPERTIES.

6 Section 1370(a) of the National Flood Insurance Act

7 of 1968 (42 U.S.C. 4121(a)) is amended—

8 (1) in paragraph (7), by inserting after the

9 paragraph designation the following: ‘‘for purposes

10 of sections 1304(b)(1), 1315(a)(2)(A)(i), and

11 1366(e)(4),’’;

12 (2) in paragraph (13), by striking ‘‘and’’ at the

13 end;

14 (3) in paragraph (14), by striking the period at

15 the end and inserting ‘‘; and’’; and

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

17 paragraph:

18 ‘‘(15) the term ‘repetitive flood insurance claim

19 payments’ means, with respect to a property, that

20 claim payments for losses to the property have been

21 made under flood insurance coverage under this title

22 on more than one occasion, without regard to the

23 amount or timing of the payment or the ownership

24 of the property.’’.

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