(1) shall provide insurance coverage without re-
gard to any estimated risk premium rates which
would otherwise be determined under section 604;
and
(2) shall utilize the provisions and procedures
contained in or prescribed by this part (other than
section 634) and sections 651 and 652 to such ex-
tent and in such manner as the Director may con-
sider necessary or appropriate to carry out the pur-
pose of this section.
PART 2—GOVERNMENT PROGRAM WITH
INDUSTRY ASSISTANCE
SEC. 641. FEDERAL OPERATION OF PROGRAM.
(a) AUTHORITY.—If at any time, after consultation
with representatives of the insurance industry, the Direc-
tor determines that operation of the toxic mold hazard in-
surance program as provided under part 1 cannot be car-
ried out, or that such operation, in itself, would be assisted
materially by the Federal Government’s assumption, in
whole or in part, of the operational responsibility for toxic
mold insurance under this title (on a temporary or other
basis), the Director shall promptly undertake any nec-
essary arrangements to carry out the program of toxic
mold hazard insurance under subtitle A through the facili-
ties of the Federal Government, utilizing, for purposes of
providing such insurance coverage—
(1) insurance companies and other insurers, in-
surance agents and brokers, and insurance adjust-
ment organizations, as fiscal agents of the United
States;
(2) such other officers and employees of any ex-
ecutive agency (as defined in section 105 of title 5
of the United States Code) as the Director and the
head of any such agency may from time to time,
agree upon, on a reimbursement or other basis; or
(3) both the alternatives specified in paragraphs
(1) and (2).
(b) REPORT.—Upon making the determination re-
ferred to in subsection (a), the Director shall make a re-
port to the Congress and, at the same time, to the private
insurance companies participating in the toxic mold haz-
ard insurance program under this title. Such report
shall—
(1) state the reason for such determinations;
(2) include findings that support such deter-
mination;
(3) indicate the extent to which it is anticipated
that the insurance industry will be utilized in pro-
viding toxic mold hazard insurance coverage under
the program; and
(4) contain such recommendations as the Direc-
tor considers appropriate.
The Director shall not implement the program of toxic
mold hazard insurance under subtitle A through the facili-
ties of the Federal Government before the expiration of
the 9-month period beginning upon the date of submission
of the report under this subsection unless it would be im-
possible to continue to effectively carry out the program
operations during such period.
SEC. 642. ADJUSTMENT AND PAYMENT OF CLAIMS AND JU-
DICIAL REVIEW.
If the program is carried out as provided in section
1341, the Director may adjust and make payment of any
claims for proved and approved losses covered by toxic
mold hazard insurance, and upon the disallowance by the
Director of any such claims, or upon the refusal of the
claimant to accept the amount allowed upon any such
claim, the claimant, within one year after the date of mail-
ing of notice of disallowance or partial disallowance by the
Director, may institute an action against the Director on
such claim in the United States district court for the dis-
trict in which the insured property or the major part
thereof shall have been situated, and original exclusive ju-
risdiction is hereby conferred upon such court to hear and
determine such action without regard to the amount in
controversy.
PART 3—PROVISIONS OF GENERAL
APPLICABILITY
SEC. 651. SERVICES BY INSURANCE INDUSTRY.
(a) CONTRACTS
AND
AGREEMENTS.—In admin-
istering the toxic mold hazard insurance program under
this subtitle, the Director may enter into any contracts,
agreements, or other appropriate arrangements which
may, from time to time, be necessary for the purpose of
utilizing, on such terms and conditions as may be agreed
upon, the facilities and services of any insurance compa-
nies or other insurers, insurance agents and brokers, or
insurance adjustment organizations; and such contracts,
agreements, or arrangements may include provision for
payment of applicable operating costs and allowances for
such facilities and services as set forth in the schedules
prescribed under section 607.
(b) EXEMPTION FROM COMPETITIVE BIDDING RE-
QUIREMENTS.—Any such contracts, agreements, or other
arrangements may be entered into without regard to the
provisions of section 3709 of the Revised Statutes (41
U.S.C. 5) or any other provisions of law requiring competi-
tive bidding and without regard to the provisions of the
Federal Advisory Committee Act (5 U.S.C. App.).
(c) LIABILITY.—The Director of the Federal Emer-
gency Management Agency shall hold any agent or broker
selling or undertaking to sell toxic mold insurance cov-
erage under this title harmless from any judgment for
damages against such agent or broker as a result of any
court action by a policyholder or applicant arising out of
an error or omission on the part of the Federal Emergency
Management Agency, and shall provide any such agent or
broker with indemnification, including court costs and rea-
sonable attorney fees, arising out of and caused by an
error or omission on the part of the Federal Emergency
Management Agency and its contractors. The Director of
the Federal Emergency Management Agency may not hold
harmless or indemnify an agent or broker for his or her
error or omission.
SEC. 652. USE OF INSURANCE POOL, COMPANIES, OR
OTHER PRIVATE ORGANIZATIONS FOR CER-
TAIN PAYMENTS.
(a) AUTHORITY.—To provide for maximum efficiency
in the administration of the toxic mold hazard insurance
program and to facilitate the expeditious payment of any
Federal funds under such program, the Director may
enter into contracts with a pool formed or otherwise cre-
ated under section 631, or any insurance company or
other private organization, for the purpose of securing per-
formance by such pool, company, or organization or any
or all of the following responsibilities:
(1) Estimating and later determining any
amounts of payments to be made.
(2) Receiving from the Director, disbursing,
and accounting for funds in making such payments.
(3) Making such audits of the records of any
insurance company or other insurer, insurance agent
or broker, or insurance adjustment organization as
may be necessary to assure that proper payments
are made.
(4) Otherwise assisting in such manner as the
contract may provide to further the purposes of this
title.
(b) TERMS AND CONDITIONS.—Any contract with the
pool or an insurance company or other private organiza-
tion under this section may contain such terms and condi-
tions at the Director finds necessary or appropriate for
carrying out responsibilities under subsection (a), and may
provide for payment of any costs which the Director deter-
mines are incidental to carrying out such responsibilities
which are covered by the contract.
(c) EXEMPTION FROM COMPETITIVE BIDDING RE-
QUIREMENTS.—Any contract entered into under sub-
section (a) may be entered into without regard to section
3709 of the Revised Statutes (41 U.S.C. 5) or any other
provision of law requiring competitive bidding.
(d) EFFICIENCY AND EFFECTIVENESS.—No contract
may be entered into under this section unless the Director
finds that the pool, company, or organization will perform
its obligations under the contract efficiently and effec-
tively, and will meet such requirements as to financial re-
sponsibility, legal authority, and other matters as the Di-
rector finds appropriate.
(e) CERTIFICATION OF PAYMENTS.—
(1) BONDING.—Any such contract may require
the pool, company, or organization or any of its offi-
cers or employees certifying payments or disbursing
funds pursuant to the contract, or otherwise partici-
pating in carrying out the contract, to give surety
bond to the United States in such amount as the Di-
rector may deem appropriate.
(2) LIABILITY.—
(A) No individual designated pursuant to a
contract under this section to certify payments
shall, in the absence of gross negligence or in-
tent to defraud the United States, be liable with
respect to any payment certified by such indi-
vidual under this section.
(B) No officer disbursing funds shall in
the absence of gross negligence or intent to de-
fraud the United States, be liable with respect
to any payment by such officer under this sec-
tion if it was based upon a voucher signed by
an individual designated to certify payments as
provided in paragraph (2) of this subsection.
(f) CONTRACT TERM.—Any contract entered into
under this section shall be for a term of one year, and
may be made automatically renewable from term to term
in the absence of notice by either party of an intention
to terminate at the end of the current term; except that
the Director may terminate any such contract at any time
(after reasonable notice to the pool, company, or organiza-
tion involved) if the Director finds that the pool, company,
or organization has failed substantially to carry out the
contract, or is carrying out the contract in a manner in-
consistent with the efficient and effective administration
of the toxic mold hazard insurance program under this
title.
SEC. 653. SETTLEMENT AND ARBITRATION.
(a) AUTHORITY.—The Director may make final set-
tlement of any claims or demands which may arise as a
result of any financial transactions that the Director is
authorized to carry out under this subtitle, and may, to
assist the Director in making any such settlement, refer
any disputes relating to such claims or demands to arbi-
tration, with the consent of the parties concerned.
(b) ARBITRATION.—Such arbitration shall be advi-
sory in nature, and any award, decision, or recommenda-
tion which may be made shall become final only upon the
approval of the Director.
SEC. 654. RECORDS AND AUDITS.
(a) MAINTENANCE
OF RECORDS.—The insurance
pool formed or otherwise created under part 1 of this sub-
title, and any insurance company or other private organi-
zation executing any contract, agreement, or other appro-
priate arrangement with the Director under part 2 or this
part, shall keep such records as the Director shall pre-
scribe, including records which fully disclose the total costs
of the program undertaken or the services being rendered,
and such other records as will facilitate an effective audit.
(b) ACCESS TO RECORDS.—The Director and the
Comptroller General of the United States, or any of their
duly authorized representatives, shall have access for the
purpose of audit and examination to any books, docu-
ments, papers and any such insurance company or other
private organization that are pertinent to the costs of the
program undertaken or the services being rendered.
Subtitle C—Miscellaneous
Provisions
SEC. 661. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) DIRECTOR.—The term ‘‘Director’’ means
the Director of the Federal Emergency Management
Agency.
(2) FUND.—The term ‘‘Fund’’ means the Na-
tional Toxic Mold Hazard Insurance Fund estab-
lished under section 606.
(3) INSURANCE ADJUSTMENT ORGANIZATION.—
The term ‘‘insurance adjustment organization’’ in-
cludes any organizations and persons engaged in the
business of adjusting loss claims arising under insur-
ance policies issued by any insurance company or
other insurer.
(4) INSURANCE COMPANY; OTHER INSURER; IN-
SURANCE AGENT OR BROKER.—The terms ‘‘insur-
ance company’’, ‘‘other insurer’’ and ‘‘insurance
agent or broker’’ include any organizations and per-
sons authorized to engage in the insurance business
under the laws of any State.
SEC. 662. PAYMENTS.
Any payments under this title may be made (after
necessary adjustment on account of previously made un-
derpayments or overpayments) in advance or by way of
reimbursement, and in such installments and on such con-
ditions, as the Director may determine.
SEC. 663. GOVERNMENT CORPORATION CONTROL ACT.
The provisions of chapter 91 of title 31, United
States Code, shall apply to the program under this title
to the same extent that such provisions apply to wholly
owned Government corporations.
SEC. 664. FINALITY OF CERTAIN TRANSACTIONS.
Notwithstanding any other provisions of law—
(1) any financial transaction authorized to be
carried out under this title, and
(2) any payment authorized to be made or to
be received in connection with any such financial
transaction,
shall be final and conclusive upon all officers of the Gov-
ernment.
SEC. 665. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may from time to time be necessary to carry out this
title, including amounts—
(1) to reimburse the National Toxic Mold Haz-
ard Insurance Fund established under section 604
for premium equalization payments under section
634 which have been made from the Fund;
(2) for studies under this title; and
(3) to make such other payments as may be
necessary to carry out the purposes of this title.
Any amounts appropriate pursuant to this section shall
be available without fiscal year limitation.
TITLE VII—HEALTH CARE
PROVISIONS
SEC. 701. MEDICAID WAIVER.
Notwithstanding any other provision of law, a State
(as defined for purposes of title XIX of the Social Security
Act) may waive income, resource, and other requirements
otherwise applicable under such title in order to provide
medical assistance to individuals—
(1) whose health has been adversely impacted
(as certified by a physician) due to exposure to toxic
mold; and
(2) who do not have any health insurance cov-
erage, or lack adequate health insurance coverage, to
treat the physical harm due to toxic mold poisoning.
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