IB 
Union Calendar No. 199 
109TH CONGRESS 
2D SESSION 
H. R. 4320 
[Report No. 109–370] 
To restore the financial solvency of the national flood insurance program, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 15, 2005 
Mr. OXLEY (for himself and Mr. FRANK of Massachusetts) introduced the 
following bill; which was referred to the Committee on Financial Services 
FEBRUARY 1, 2006 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on November 15, 2005] 
A BILL 
To restore the financial solvency of the national flood 
insurance program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Flood Insur-
ance Program Commitment to Policyholders and Reform 
Act of 2005’’. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the amount of the flood insurance claims re-
sulting from Hurricane Katrina and Hurricane Rita 
will likely exceed the aggregate amount of all claims 
previously paid in the history of the national flood 
insurance program, and will require an increase in 
the program’s borrowing authority; 
(2) flood insurance policyholders have a legiti-
mate expectation that they will receive fair and time-
ly compensation for losses covered under their poli-
cies; 
(3) substantial flooding has occurred, and will 
likely occur again, outside of the areas designated as 
the 100-year floodplain; 
(4) to adequately and correctly assess potential 
flood damage and losses in all areas on the United 
States, the national flood insurance program will 
need to update its flood maps with the latest tech-
nology;
(5) the maximum coverage limits for flood insur-
ance policies should be increased to reflect inflation 
and the increased cost of housing; 
(6) significant reforms to the national flood in-
surance program required in the Bunning-Bereuter- 
Blumenauer Flood Insurance Reform Act of 2004 
have yet to be implemented; and 
(7) despite reforms required in the Bunning-Be-
reuter-Blumenauer Flood Insurance Reform Act of 
2004, the national flood insurance program requires 
a modernized and updated administrative model to 
ensure that the people of the United States have con-
tinued access to flood insurance. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to protect the integrity of the national flood 
insurance program by fully funding existing legal ob-
ligations expected by existing policyholders who have 
paid policy premiums in return for flood insurance 
coverage; 
(2) to increase incentives for homeowners and 
communities to participate in the national flood in-
surance program and to improve oversight to ensure 
full participation in the program for owners of prop-
erties for which such participation is mandatory;
(3) to increase awareness of homeowners of flood 
risks and improve the quality of information regard-
ing such risks provided to homeowners; and 
(4) to better mitigate future flood damage risks 
through a combination of enhanced protective meas-
ures, property elevation, and buyouts of flood-prone 
properties. 
SEC. 3. STUDY REGARDING MANDATORY PURCHASE RE-
QUIREMENT FOR 500-YEAR FLOODPLAIN AND 
REPORTS 
REGARDING 
FLOOD 
MAP 
MOD-
ERNIZATION. 
(a) STUDY REGARDING MANDATORY PURCHASE RE-
QUIREMENT FOR 500-YEAR FLOODPLAIN.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study regarding the 
impact, effectiveness, and feasibility of amending the 
provisions of the Flood Disaster Protection Act of 
1973 regarding the properties that are subject to the 
mandatory flood insurance coverage purchase require-
ments under such Act to extend such requirements to 
all properties located in the 500-year floodplain. 
(2) ISSUES.—The study under this subsection 
shall assess— 
(A) the regulatory, financial and economic 
impacts of extending such requirements on the
costs of homeownership, the actuarial soundness 
of the national flood insurance program, the 
Federal Emergency Management Agency, local 
communities, insurance companies, and local 
land use; 
(B) the effectiveness of extending such re-
quirements in protecting homeowners from fi-
nancial loss and in protecting the financial 
soundness of the national flood insurance pro-
gram, and the effectiveness of extending such re-
quirements in comparison with providing for 
more effective enforcement of existing mandatory 
flood insurance purchase requirements; 
(C) the feasibility of extending such require-
ments taking into consideration the need for 
identifying and mapping the 500-year flood-
plain; 
(D) any liability on the part of lenders to 
comply with or enforce such extended require-
ments; 
(E) any burdens on building officials and 
flood plain managers to implement such require-
ments in the expanded area; 
(F) any increased burden on the Federal 
Emergency Management Agency to make deter-
minations on exemptions to the floodplain and 
approval of local decisions; 
(G) the effects of extending such require-
ments on existing policy holders of flood insur-
ance coverage for properties located in the 100- 
year floodplain, including the effects on contin-
ued compliance and premium rates; and 
(H) the effects of extending such require-
ments on the ability of homeowners to make ren-
ovations to their homes. 
(3) REPORT.—The Comptroller General shall 
submit a report to the Congress regarding the results 
and conclusions of the study under this subsection not 
later than the expiration of the 6-month period begin-
ning on the date of the enactment of this Act. 
(b) ANNUAL FLOOD MAP MODERNIZATION REPORTS 
AND CERTIFICATION OF COMPLETION.— 
(1) IN GENERAL.—During the period that ends 
upon the completion by the Director of the Federal 
Emergency Management Agency of the updating and 
modernization of all floodplain areas and flood-risk 
zones, the Director shall submit a report annually to 
the Congress describing the extent to which such up-
dating and modernization has been completed. Upon 
the completion of such updating, the Director shall