I 
108TH CONGRESS 
1ST SESSION 
H. R. 253
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 
JANUARY 8, 2003
Mr. BEREUTER (for himself and Mr. BLUMENAUER) 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 in-
surance claim payments have been made.
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 ‘‘Two Floods and You 
Are Out of the Taxpayers’ Pocket Act of 2003’’. 
SEC. 2. FLOOD LOSS REDUCTION FOR REPETITIVE FLOOD 
INSURANCE CLAIM PROPERTIES. 
Section 1366 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104c) is amended—
(1) in subsection (a), by inserting after the first 
sentence the following new sentence: ‘‘In awarding 
grants under this section for mitigation activities, 
the Director shall give priority to properties for 
which repetitive flood insurance claim payments have 
been made.’’; 
(2) in the last sentence of subsection (c), by in-
serting before the period the following: ‘‘, and shall 
address properties in the area for which repetitive 
flood insurance claim payments have been made’’; 
and 
(3) in subsection (f), by striking paragraph (3) 
and inserting the following new paragraph: 
‘‘(3) WAIVER.—The Director may waive the 
dollar amount limitations under paragraphs (1) and 
(2) for any State or community—
‘‘(A) for any 5-year period when a major 
disaster or emergency declared by the President 
(pursuant to the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.)) as a result of flood condi-
tions is in effect with respect to areas in the 
State or community; or 
‘‘(B) whenever the Director determines 
that the State or community has properties for
which repetitive flood insurance claim payments 
have been made and that waiver of the cost lim-
itations is cost-effective and in the best inter-
ests of the National Flood Insurance Fund.’’. 
SEC. 3. NATIONAL FLOOD MITIGATION FUND. 
(a) CREDITS.—Section 1367(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104d(b)) is amend-
ed—
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) amounts from the National Flood Insur-
ance Fund, in amounts not exceeding $70,000,000 
in each of fiscal years 2004, 2005, 2006, and 2007, 
of which all amounts made available under this 
paragraph in excess of $20,000,000 in each such fis-
cal year shall be used only under section 1366 for 
mitigation activities for properties for which repet-
itive flood insurance claim payments have been 
made, such sums to remain available until ex-
pended;’’; 
(2) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (3), by striking the period at 
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following new 
paragraph: 
‘‘(4) any amounts which may be appropriated 
for the Fund, which are authorized to be appro-
priated in amounts not exceeding $50,000,000 in 
each of fiscal years 2004, 2005, 2006, and 2007, 
which amounts shall be used only under section 
1366 for mitigation activities that will address prop-
erties for which repetitive flood insurance claim pay-
ments have been made, such sums to remain avail-
able until expended.’’. 
SEC. 4. CONSOLIDATION OF AUTHORIZATIONS. 
(a) IN GENERAL.—The National Flood Insurance 
Act of 1968 is amended as follows: 
(1) BORROWING AUTHORITY.—In the first sen-
tence of section 1309(a) (42 U.S.C. 4016(a)), by 
striking ‘‘through September’’ and all that follows 
through ‘‘, and’’ and inserting the following: 
‘‘through the date specified in section 1319, and’’. 
(2) AUTHORITY FOR CONTRACTS.—In section 
1319 (42 U.S.C. 4026), by striking ‘‘after’’ and all 
that follows and inserting ‘‘after September 30, 
2007.’’.
(3) EMERGENCY IMPLEMENTATION.—In section 
1336(a) (42 U.S.C. 4056(a)), by striking ‘‘during
the period’’ and all that follows through ‘‘in accord-
ance’’ and inserting ‘‘during the period ending on 
the date specified in section 1319, in accordance’’. 
(4) AUTHORIZATION OF APPROPRIATIONS FOR 
STUDIES.—In section 1376(c) (42 U.S.C. 4127(c)), 
by striking ‘‘through’’ and all that follows and in-
serting the following: ‘‘through the date specified in 
section 1319.’’. 
SEC. 5. CHARGEABLE PREMIUM RATES. 
(a) ACTUARIAL RATE PROPERTIES.—Section 1308 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended by striking subsection (c) and inserting 
the following new subsection: 
‘‘(c) ACTUARIAL RATE PROPERTIES.—Subject only 
to the limitation provided under paragraph (1), the 
chargeable rate shall not be less than the applicable esti-
mated risk premium rate for such area (or subdivision 
thereof) under section 1307(a)(1) with respect to the fol-
lowing properties: 
‘‘(1) POST-FIRM
PROPERTIES.—Any property 
the construction or substantial improvement of 
which the Director determines has been started after 
December 31, 1974, or started after the effective
date of the initial rate map published by the Direc-
tor under paragraph (2) of section 1360 for the area
in which such property is located, whichever is later, 
except that the chargeable rate for properties under 
this paragraph shall be subject to the limitation 
under subsection (e). 
‘‘(2) REPETITIVE
INSURANCE
CLAIMS
PROP-
ERTIES.—Any property for which the Director deter-
mines that repetitive flood insurance claim payments 
have been made and the owner of which has refused 
a buyout, elevation, or other flood mitigation meas-
ure funded in whole or in part by the Federal Emer-
gency Management Agency. 
‘‘(3) CERTAIN
LEASED
COASTAL
AND
RIVER 
PROPERTIES.—Any property leased from the Federal 
Government (including residential and nonresidential 
properties) that the Director determines is located 
on the river-facing side of any dike, levee, or other 
riverine flood control structure, or seaward of any 
seawall or other coastal flood control structure.’’. 
(b) APPLICABILITY OF ANNUAL LIMITATION ON PRE-
MIUM INCREASES.—Section 1308(e) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended 
by striking ‘‘Notwithstanding’’ and inserting ‘‘Except with 
respect to properties described under paragraph (2) or (3) 
of subsection (c) and notwithstanding’’.
SEC. 6. REMOVING REPETITIVE INSURANCE CLAIMS PROP-
ERTIES FROM FEDERAL DISASTER ASSIST-
ANCE RESPONSIBILITY. 
(a) IN GENERAL.—Section 582 of the National Flood 
Insurance Reform Act of 1994 (42 U.S.C. 5154a) is 
amended—
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) UNMITIGATED REPETITIVE INSURANCE CLAIMS 
PROPERTIES.—Notwithstanding any other provision of 
law, no Federal disaster relief assistance made available 
in a flood disaster area may be used to make a payment 
(including any loan assistance payment) for repair, re-
placement, or restoration for damage to any property in 
the area for which—
‘‘(1) repetitive flood insurance claim payments 
have been made; and 
‘‘(2) in accordance with such requirements as 
the Director may establish, mitigation assistance 
under section 1366 of this Act or section 404 of the 
Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170c) has been offered 
to the owner of the property, before or after the oc-
currence of the flood loss events, which was refused 
by the owner.’’. 
(b) EFFECTIVE DATE.—Notwithstanding subsection 
(f) of section 582 of the National Flood Insurance Reform 
Act of 1994 (as so redesignated by paragraph (1)(A) of 
this subsection), the amendment made by paragraph (1) 
shall apply to disasters declared after the date of the en-
actment of this Act. 
SEC. 7. MITIGATION GRANTS FOR REPETITIVE INSURANCE 
CLAIMS PROPERTIES. 
(a) IN GENERAL.—Chapter I of the National Flood 
Insurance Act of 1968 is amended by adding after section 
1322 (42 U.S.C. 4029) the following new section: 
‘‘GRANTS FOR REPETITIVE INSURANCE CLAIMS 
PROPERTIES 
‘‘SEC. 1323. The Director may provide funding for 
mitigation actions that reduce flood damages to repetitive 
insurance claims properties, but only if the Director deter-
mines that—
‘‘(1) such activities are in the best interest of 
the National Flood Insurance Fund; 
‘‘(2) the owner of such property has refused a 
buyout, elevation, or other flood mitigation measure 
funded in whole or in part by the Federal Emer-
gency Management Agency; and
‘‘(3) such activities can not be funded under the 
program under section 1366 because—
‘‘(A) the State or community in which the 
property is located can not comply with the re-
quirements of section 1366(g); or 
‘‘(B) the State or community does not 
have the capacity to manage such activities.’’. 
(b) AVAILABILITY OF NATIONAL FLOOD INSURANCE 
FUND AMOUNTS.—Section 1310(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(9) for funding for mitigation actions under 
section 1323.’’. 
SEC. 8. USE RESTRICTIONS ON ACQUIRED PROPERTY. 
Section 1366(e)(5)(C) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4104c(e)(5)(C)) is amended 
by striking ‘‘for public use, as the Director determines is 
consistent with sound land management and use in such 
area’’ and inserting the following: ‘‘except that the Direc-
tor may not provide amounts under this section for use
for acquisition of properties unless the State or community 
agrees, to the satisfaction of the Director, that the instru-
ment for acquisition of the property will convey to the 
United States a future interest in all right, title, and inter-
est in and to all property acquired with the amounts under 
this section that is contingent upon the condition that the 
property acquired ceases to be dedicated and maintained 
for use that is compatible with open space, recreational, 
or wetlands management practices.’’. 
SEC. 9. DEFINITIONS OF REPETITIVE FLOOD INSURANCE 
CLAIM PAYMENTS AND REPETITIVE INSUR-
ANCE CLAIMS PROPERTIES. 
Section 1370(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4121(a)) is amended—
(1) in paragraph (7), by inserting after the 
paragraph designation the following: ‘‘for purposes 
of 
sections 
1304(b)(1), 
1315(a)(2)(A)(i), 
and 
1366(e)(4),’’; 
(2) in paragraph (13), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (14), by striking the period at 
the end and inserting a semicolon’’; and 
(4) by adding at the end the following new 
paragraphs:
‘‘(15) the term ‘repetitive flood insurance claim 
payments’ means, with respect to a property, that 
claim payments for losses to the property have been 
made under flood insurance coverage under this title 
on more than one occasion within a 10-year period, 
with each such claim exceeding $1,000, without re-
gard to the ownership of the property; and 
‘‘(16) the term ‘repetitive insurance claims 
property’ means a property with respect to which re-
petitive flood insurance claims payments have been 
made.’’.
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