In the Senate of the United States, 
May 13, 2008. 
Resolved, That the bill from the House of Representa-
tives (H.R. 3121) entitled ‘‘An Act to restore the financial 
solvency of the national flood insurance program and to pro-
vide for such program to make available multiperil coverage 
for damage resulting from windstorms and floods, and for 
other purposes.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows:
Sec. 1. Table of contents. 
TITLE I—FLOOD INSURANCE REFORM AND MODERNIZATION 
Sec. 101. Short title. 
Sec. 102. Findings. 
Sec. 103. Definitions. 
Sec. 104. Extension of National Flood Insurance Program. 
Sec. 105. Availability of insurance for multifamily properties. 
Sec. 106. Reform of premium rate structure. 
Sec. 107. Mandatory coverage areas. 
Sec. 108. Premium adjustment. 
Sec. 109. State chartered financial institutions. 
Sec. 110. Enforcement. 
Sec. 111. Escrow of flood insurance payments. 
Sec. 112. Borrowing authority debt forgiveness.
Sec. 113. Minimum deductibles for claims under the National Flood Insurance 
Program. 
Sec. 114. Considerations in determining chargeable premium rates. 
Sec. 115. Reserve fund. 
Sec. 116. Repayment plan for borrowing authority. 
Sec. 117. Payment of condominium claims. 
Sec. 118. Technical Mapping Advisory Council. 
Sec. 119. National Flood Mapping Program. 
Sec. 120. Removal of limitation on State contributions for updating flood maps. 
Sec. 121. Coordination. 
Sec. 122. Interagency coordination study. 
Sec. 123. Nonmandatory participation. 
Sec. 124. Notice of flood insurance availability under RESPA. 
Sec. 125. Testing of new flood proofing technologies. 
Sec. 126. Participation in State disaster claims mediation programs. 
Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform Act. 
Sec. 128. Additional authority of FEMA to collect information on claims pay-
ments. 
Sec. 129. Expense reimbursements of insurance companies. 
Sec. 130. Extension of pilot program for mitigation of severe repetitive loss prop-
erties. 
Sec. 131. Flood insurance advocate. 
Sec. 132. Studies and Reports. 
Sec. 133. Feasibility study on private reinsurance. 
Sec. 134. Policy disclosures. 
Sec. 135. Report on inclusion of building codes in floodplain management cri-
teria. 
TITLE II—COMMISSION ON NATURAL CATASTROPHE RISK 
MANAGEMENT AND INSURANCE 
Sec. 201. Short title. 
Sec. 202. Findings. 
Sec. 203. Establishment. 
Sec. 204. Membership. 
Sec. 205. Duties of the Commission. 
Sec. 206. Report. 
Sec. 207. Powers of the Commission. 
Sec. 208. Commission personnel matters. 
Sec. 209. Termination. 
Sec. 210. Authorization of appropriations. 
TITLE III—MISCELLANEOUS 
Sec. 301. Big Sioux River and Skunk Creek, Sioux Falls, South Dakota. 
Sec. 302. Suspension of petroleum acquisition for Strategic Petroleum Reserve.
TITLE I—FLOOD INSURANCE 
REFORM AND MODERNIZATION 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Flood Insurance Reform 
and Modernization Act of 2008’’. 
SEC. 102. FINDINGS. 
Congress finds that—
(1) the flood insurance claims resulting from the 
hurricane season of 2005 will likely exceed all pre-
vious claims paid by the National Flood Insurance 
Program; 
(2) in order to pay the legitimate claims of pol-
icyholders from the hurricane season of 2005, the Fed-
eral Emergency Management Agency has borrowed 
over $20,000,000,000 from the Treasury; 
(3) the interest alone on this debt, is almost 
$1,000,000,000 annually, and that the Federal Emer-
gency Management Agency has indicated that it will 
be unable to pay back this debt; 
(4) the flood insurance program must be 
strengthened to ensure it can pay future claims; 
(5) while flood insurance is mandatory in the 
100-year floodplain, substantial flooding occurs out-
side of existing special flood hazard areas;
(6) recent events throughout the country involv-
ing areas behind man-made structures, known as ‘‘re-
sidual risk’’ areas, have produced catastrophic losses; 
(7) although such man-made structures produce 
an added element of safety and therefore lessen the 
probability that a disaster will occur, they are never-
theless susceptible to catastrophic loss, even though 
such areas at one time were not included within the 
100-year floodplain; and 
(8) voluntary participation in the National 
Flood Insurance Program has been minimal and 
many families residing outside the 100-year flood-
plain remain unaware of the potential risk to their 
lives and property. 
SEC. 103. DEFINITIONS. 
(a) IN GENERAL.—In this title, the following defini-
tions shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means the 
Administrator of the Federal Emergency Management 
Agency. 
(2) NATIONAL
FLOOD
INSURANCE
PROGRAM.—
The term ‘‘National Flood Insurance Program’’ 
means the program established under the National 
Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.).
(3) 100-YEAR FLOODPLAIN.—The term ‘‘100-year 
floodplain’’ means that area which is subject to inun-
dation from a flood having a 1 percent chance of 
being equaled or exceeded in any given year. 
(4) 500-YEAR FLOODPLAIN.—The term ‘‘500-year 
floodplain’’ means that area which is subject to inun-
dation from a flood having a 0.2 percent chance of 
being equaled or exceeded in any given year. 
(5) WRITE YOUR OWN.—The term ‘‘Write Your 
Own’’ means the cooperative undertaking between the 
insurance industry and the Flood Insurance Adminis-
tration which allows participating property and cas-
ualty insurance companies to write and service stand-
ard flood insurance policies. 
(b) COMMON TERMINOLOGY.—Except as otherwise pro-
vided in this title, any terms used in this title shall have 
the meaning given to such terms under section 1370 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4121). 
SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE 
PROGRAM. 
Section 1319 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4026), is amended by striking ‘‘2008’’ and 
inserting ‘‘2013.’’.
SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY 
PROPERTIES. 
Section 1305 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4012) is amended by adding at the end 
the following: 
‘‘(d) AVAILABILITY OF INSURANCE FOR MULTIFAMILY 
PROPERTIES.—
‘‘(1) IN
GENERAL.—The Director shall make 
flood insurance available to cover residential prop-
erties of more than 4 units. Notwithstanding any 
other provision of law, the maximum coverage 
amount that the Director may make available under 
this subsection to such residential properties shall be 
equal to the coverage amount made available to com-
mercial properties. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to limit the ability of in-
dividuals residing in residential properties of more 
than 4 units to obtain insurance for the contents and 
personal articles located in such residences.’’. 
SEC. 106. REFORM OF PREMIUM RATE STRUCTURE. 
(a) TO EXCLUDE CERTAIN PROPERTIES FROM RE-
CEIVING SUBSIDIZED PREMIUM RATES.—
(1) IN GENERAL.—Section 1307 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4014) is 
amended—
(A) in subsection (a)—
(i) in paragraph (2), by striking ‘‘; 
and’’ and inserting a semicolon; 
(ii) in paragraph (3), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(4) the exclusion of prospective insureds from 
purchasing flood insurance at rates less than those es-
timated under paragraph (1), as required by para-
graph (2), for certain properties, including for—
‘‘(A) any property which is not the primary 
residence of an individual; 
‘‘(B) any severe repetitive loss property, as 
defined in section 1361A(b); 
‘‘(C) any property that has incurred flood-
related damage in which the cumulative amounts 
of payments under this title equaled or exceeded 
the fair market value of such property; 
‘‘(D) any business property; and 
‘‘(E) any property which on or after the 
date of enactment of the Flood Insurance Reform 
and Modernization Act of 2008 has experienced 
or sustained—
‘‘(i) substantial damage exceeding 50 
percent of the fair market value of such 
property; or 
‘‘(ii) substantial improvement exceed-
ing 30 percent of the fair market value of 
such property.’’; and 
(B) by adding at the end the following: 
‘‘(g) NO EXTENSION OF SUBSIDY TO NEW POLICIES 
OR LAPSED POLICIES.—The Director shall not provide 
flood insurance to prospective insureds at rates less than 
those estimated under subsection (a)(1), as required by 
paragraph (2) of that subsection, for—
‘‘(1) any property not insured by the flood insur-
ance program as of the date of enactment of the Flood 
Insurance Reform and Modernization Act of 2008; 
‘‘(2) any policy under the flood insurance pro-
gram that has lapsed in coverage, as a result of the 
deliberate choice of the holder of such policy; and 
‘‘(3) any prospective insured who refuses to ac-
cept any offer for mitigation assistance by the Ad-
ministrator (including an offer to relocate), including 
an offer of mitigation assistance—
‘‘(A) following a major disaster, as defined 
in section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 
5122); or 
‘‘(B) in connection with—
‘‘(i) a repetitive loss property; or 
‘‘(ii) a severe repetitive loss property, 
as that term is defined under section 
1361A.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall become effective 90 days after 
the date of the enactment of this title. 
(b) INCREASE IN ANNUAL LIMITATION ON PREMIUM 
INCREASES.—Section 1308(e) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4015(e)) is amended—
(1) by striking ‘‘under this title for any prop-
erties within any single’’ and inserting the following: 
‘‘under this title for any properties—
‘‘(1) within any single’’; and 
(2) by striking ‘‘10 percent’’ and inserting ‘‘15 
percent’’; and 
(3) by striking the period at the end and insert-
ing the following: ‘‘; and 
‘‘(2) described in section 1307(a)(4) shall be in-
creased by 25 percent each year, until the average 
risk premium rate for such properties is equal to the
average of the risk premium rates for properties de-
scribed under paragraph (1).’’. 
SEC. 107. MANDATORY COVERAGE AREAS. 
(a) SPECIAL FLOOD HAZARD AREAS.—Not later than 
90 days after the date of enactment of this title, the Director 
shall issue final regulations establishing a revised definition 
of areas of special flood hazards for purposes of the National 
Flood Insurance Program. 
(b) RESIDUAL RISK AREAS.—The regulations required 
by subsection (a) shall—
(1) include any area previously identified by the 
Director as an area having special flood hazards 
under section 102 of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a); and 
(2) require the expansion of areas of special flood 
hazards to include areas of residual risk, including 
areas that are located behind levees, dams, and other 
man-made structures. 
(c) MANDATORY PARTICIPATION IN NATIONAL FLOOD 
INSURANCE PROGRAM.—
(1) IN GENERAL.—Any area described in sub-
section (b) shall be subject to the mandatory purchase 
requirements of sections 102 and 202 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a, 
4106).
(2) LIMITATION.—The mandatory purchase re-
quirement under paragraph (1) shall have no force or 
effect until the mapping of all residual risk areas in 
the United States that the Director determines essen-
tial in order to administer the National Flood Insur-
ance Program, as required under section 119, are in 
the maintenance phase. 
(3) ACCURATE
PRICING.—In carrying out the 
mandatory purchase requirement under paragraph 
(1), the Director shall ensure that the price of flood 
insurance policies in areas of residual risk accurately 
reflects the level of flood protection provided by any 
levee, dam, or other the man-made structure in such 
area. 
(d) DECERTIFICATION.—Upon decertification of any 
levee, dam, or man-made structure under the jurisdiction 
of the Army Corp of Engineers, the Corp shall immediately 
provide notice to the Director of the National Flood Insur-
ance Program. 
SEC. 108. PREMIUM ADJUSTMENT. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015) is amended by adding at the end 
the following: 
‘‘(g) PREMIUM ADJUSTMENT TO REFLECT CURRENT 
RISK
OF FLOOD.—Notwithstanding subsection (f), and
upon completion of the updating of any flood insurance rate 
map under this Act, the Flood Disaster Protection Act of 
1973, or the Flood Insurance Reform and Modernization 
Act of 2008, any property located in an area that is partici-
pating in the national flood insurance program shall have 
the risk premium rate charged for flood insurance on such 
property adjusted to accurately reflect the current risk of 
flood to such property, subject to any other provision of this 
Act. Any increase in the risk premium rate charged for 
flood insurance on any property that is covered by a flood 
insurance policy on the date of completion of such updating 
or remapping that is a result of such updating or remap-
ping shall be phased in over a 2-year period at the rate 
of 50 percent per year. 
‘‘(h) USE OF MAPS TO ESTABLISH RATES FOR CER-
TAIN COUNTIES.—
‘‘(1) IN GENERAL.—Until such time as the up-
dating of flood insurance rate maps under section 19 
of the Flood Modernization Act of 2007 is completed 
(as determined by the district engineer) for all areas 
located in the St. Louis District of the Mississippi 
Valley Division of the Corps of Engineers, the Direc-
tor shall not—
‘‘(A) adjust the chargeable premium rate for 
flood insurance under this title for any type or
class of property located in an area in that Dis-
trict; and 
‘‘(B) require the purchase of flood insurance 
for any type or class of property located in an 
area in that District not subject to such purchase 
requirement prior to the updating of such na-
tional flood insurance program rate map. 
‘‘(2) RULE OF CONSTRUCTION.—For purposes of 
this subsection, the term ‘area’ does not include any 
area (or subdivision thereof) that has chosen not to 
participate in the flood insurance program under this 
title as of the date of enactment of this subsection.’’. 
SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS. 
Section 1305(c) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4012(c)) is amended—
(1) in paragraph (1), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(3) given satisfactory assurance that by Decem-
ber 31, 2008, lending institutions chartered by a 
State, and not insured by the Federal Deposit Insur-
ance Corporation, shall be subject to regulations by 
that State that are consistent with the requirements