of special flood hazards, and (B) is participating in
the national flood insurance program; or
‘‘(2) a political subdivision of a State, or other
authority, that is designated to develop and admin-
ister a mitigation plan by political subdivisions, all
of which meet the requirements of paragraph (1).’’.
(b) REGULATIONS.—Not later than 6 months after date
of enactment of this Act, the Director of the Federal Emer-
gency Management Agency shall issue regulations to carry
out section 1366 of the National Flood Insurance Act of
1968, as added by subsection (a).
SEC. 405. ESTABLISHMENT OF NATIONAL FLOOD AND ERO-
SION MITIGATION FUND.
Chapter III of the National Flood Insurance Act of
1968 (42 U.S.C. 4101 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the
end the following new section:
‘‘NATIONAL FLOOD AND EROSION MITIGATION FUND
‘‘SEC. 1367. (a) ESTABLISHMENT
AND AVAILABIL-
ITY.—The Director shall establish in the Treasury of the
United States a fund to be known as the National Flood
and Erosion Mitigation Fund, which shall be credited with
amounts described in subsection (b) and shall be available,
to the extent provided in appropriation Acts, for providing
assistance under section 1366.
‘‘(b) CREDITS.—The National Flood and Erosion
Mitigation Fund shall be credited with—
‘‘(1) any premium surcharges assessed under sec-
tion 1308(f);
‘‘(2) any penalties collected under section 102(f)
of the Flood Disaster Protection Act of 1973; and
‘‘(3) any amounts recaptured under section
1366(i).
‘‘(c) INVESTMENT.—If the Director determines that the
amounts in the National Flood and Erosion Mitigation
Fund are in excess of amounts needed under subsection (a),
the Director may invest any excess amounts the Director
determines advisable in interest-bearing obligations issued
or guaranteed by the United States.
‘‘(d) REPORT.—The Director shall submit a report to
the Congress not later than the expiration of the 1-year pe-
riod beginning on the date of the enactment of this Act and
not less than once during each successive 2-year period
thereafter. The report shall describe the status of the Fund
and any activities carried out with amounts from the
Fund.’’.
SEC. 406. INSURANCE PREMIUM MITIGATION SURCHARGE
AND EROSION HAZARD ZONE SURCHARGE.
Section 1308 of the National Flood Insurance Act of
1968 (42 U.S.C. 4015) is amended by adding at the end
the following new subsections:
‘‘(f) 
INSURANCE
PREMIUM
MITIGATION
SUR-
CHARGE.—
‘‘(1) ASSESSMENT.—Notwithstanding any other
provision of this title, the Director shall assess, with
respect to each contract for flood insurance coverage
under this title issued or renewed after the date of the
enactment of the National Flood Insurance Reform
Act of 1994, a mitigation surcharge of—
‘‘(A) $10 per policy term, for policies hav-
ing a total coverage amount of $150,000 or less
that cover structures that are principal resi-
dences;
‘‘(B) $20 per policy term, for policies hav-
ing a total coverage amount of more than
$150,000 that cover structures that are principal
residences; and
‘‘(C) the amount established by the Director
not to exceed $40 per policy term, for policies
covering other structures.
‘‘(2) DEPOSIT IN MITIGATION FUND.—Any miti-
gation surcharges collected shall be paid into the Na-
tional Flood and Erosion Mitigation Fund under sec-
tion 1367.
‘‘(3) EXEMPTION.—The mitigation surcharges
shall not be subject to any agents’ commissions, com-
pany expenses allowances, or State or local premium
taxes.
‘‘(g) EROSION HAZARD ZONE SURCHARGES.—The Di-
rector shall assess a surcharge for each contract for flood
insurance coverage under this title covering an existing
structure that is located within the 30-year or 60-year ero-
sion hazard zone established under section 1360(j). Subject
only to the limitation under subsection (e), the surcharge
shall be in the amount necessary so that, based on the risk
involved and sound actuarial principles, the sum of the
amounts charged for a property for flood insurance pre-
miums and the surcharge under this subsection is equal to
the full actuarial risk premium rate determined under sec-
tion 1307(a)(1) for the area in which the property is lo-
cated.’’.
SEC. 407. LIMITATIONS ON NEW FLOOD INSURANCE COV-
ERAGE IN EROSION HAZARD AREAS.
The National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.) is amended by inserting after section 1313
the following new section:
‘‘SEC. 1314. PROPERTIES LOCATED WITHIN 30-YEAR AND 60-
YEAR EROSION HAZARD ZONES.
‘‘(a) PROPERTIES LOCATED WITHIN 30-YEAR ERO-
SION HAZARD ZONE.—After the establishment of erosion
hazard zones under section 1360(j), the Director may not
make flood insurance available within a 30-year erosion
hazard zone with respect to any new—
‘‘(1) construction; or
‘‘(2) addition to an existing structure, if the ad-
dition makes the structure not a readily movable
structure.
‘‘(b) PROPERTIES LOCATED WITHIN 60-YEAR ERO-
SION HAZARD AREA AND OUTSIDE 30-YEAR EROSION HAZ-
ARD ZONE.—After the establishment of erosion hazard zones
under section 1360(j), the Director may not make flood in-
surance available with respect to any new—
‘‘(1) nonresidential structure;
‘‘(2) residential structure that is not a readily
movable structure; or
‘‘(3) addition to an existing structure, if the ad-
dition makes the structure not a readily movable
structure;
that is constructed or relocated landward of the 30-year ero-
sion hazard zone and within the 60-year erosion hazard
zone established by the Director under such section.
‘‘(c) TREATMENT OF EXISTING STRUCTURES.—This
section may not be construed to prohibit the renewal or con-
tinuation of coverage for any flood insurance policy under
this title covering a structure that suffers substantial dam-
age, regardless of whether the structure is relocated or recon-
structed. For purposes of this subsection, the term ‘substan-
tial damage’ means damage of any origin sustained by a
structure that is of such an extent that the cost of restoring
the structure to its condition before such damage would
equal or exceed 50 percent of the market value of the struc-
ture immediately before the damage occurred.
‘‘(d) STATE EROSION HAZARD MANAGEMENT PRO-
GRAM.—Notwithstanding subsections (a) and (b), if upon
the date of the enactment of the National Flood Insurance
Reform Act of 1994 a State has adopted and has in effect
an erosion management program that, in the determination
of the Director, has enforceable provisions prohibiting or re-
stricting new construction or additions to existing struc-
tures within the 30-year erosion hazard zone, the Director
shall continue to make flood insurance under this title
available for new construction and additions to existing
structures landward of the 30-year erosion zone that are
otherwise in conformance with all applicable State and
local laws, regulations, and ordinances relating to building
design, development, and erosion.’’.
SEC. 408. STUDY OF MITIGATION INSURANCE.
(a) STUDY.—The Director of the Federal Emergency
Management Agency shall conduct a study to determine the
feasibility of providing, as part of the flood insurance pol-
icy, insurance coverage to provide for increases in the costs
of repair and reconstruction of repetitively and severely
flood-damaged insured buildings, in order to repair, recon-
struct, or otherwise mitigate future hazards to those build-
ings to comply with local building codes and floodplain
management ordinances to the greatest extent possible. In
conducting the study, the Director shall seek involvement
from other Federal, State, and local agencies, and represen-
tation from the insurance, construction, and floodplain
management interests. Under the study the Director shall—
(1) identify potential activities related to repair,
reconstruction, or otherwise achieving mitigation re-
quired to comply with standards under the national
flood insurance program and local building codes,
and evaluate the costs of such activities;
(2) evaluate how such insurance coverage could
be utilized to achieve economically justified acquisi-
tion or relocation of certain structures under certain
circumstances;
(3) evaluate the cost of providing the additional
coverage and investigate a full range of measures for
funding such costs, including changes in coverage,
rates, and deductibles;
(4) evaluate the effect changes identified in para-
graph (3) would have on the entire policy base, the
cost of flood insurance, retention of policies, market-
ing of policies, the number and magnitude of claims
paid, and the economic soundness and value of flood-
prone property, and provide detail on such effects by
State and flood hazard zone; and
(5) identify mechanisms required to identify
qualifying structures, determine appropriate mitiga-
tion measures, coordinate with State and local offi-
cials, provide consistency with State and local plans
and programs, deliver the increased insurance pay-
ments, and verify appropriate actions by policy-
holders.
(b) REPORT.—The Director shall submit to the Con-
gress a report describing the study not later than the expira-
tion of the 18-month period beginning on the date of the
enactment of this Act. The report shall include conclusions
and recommendations of the Director in conducting the
study.
SEC. 409. RIVERINE EROSION STUDY.
(a) STUDY.—The Director of the Federal Emergency
Management Agency shall conduct a study to determine the
feasibility of identifying and establishing erosion rates for
communities subject to riverine erosion hazards and the best
manner of identifying and establishing such rates. Under
the study the Director shall—
(1) investigate and assess existing and state-of-
the-art technical methodologies for assessing riverine
erosion;
(2) examine natural riverine processes, environ-
mental conditions, and human-induced changes to the
banks of rivers and streams, examples of erosion and
likely causes, and examples of erosion control and
reasons for their performance; and
(3) analyze riverine erosion management strate-
gies, the technical standards, methods, and data nec-
essary to support such strategies, and methods of ad-
ministering such strategies through the national flood
insurance program.
(b) REPORT.—The Director shall submit a report to
the Congress regarding the findings and conclusions of the
study under this section not later than the expiration of
the 2-year period beginning on the date of the enactment
of this Act. The report shall include any recommendations
of the Director regarding appropriate methods and ap-
proaches for identifying and determining riverine erosion
rates and management strategies relating to riverine ero-
sion.
SEC. 410. COORDINATION WITH COASTAL ZONE MANAGE-
MENT PROGRAMS.
(a) IN GENERAL.—In implementing this title and the
amendments made by this title, the Director of the Federal
Emergency Management Agency shall consult with the
Under Secretary of Commerce for Oceans and Atmosphere
and representatives from State coastal zone management
programs to promote full coordination of the erosion man-
agement provisions of the National Flood Insurance Act of
1968 as amended by this Act, and the provisions of the
Coastal Zone Management Act of 1972. The Director shall,
to the greatest extent possible, utilize State management
programs approved under section 306 of the Coastal Zone
Management Act of 1972 to facilitate development and im-
plementation of regulations and guidelines for this title.
(b) COORDINATION REPORT.—The Director shall pre-
pare a report that details the proposed mechanisms for
achieving the coordination required in subsection (a). In
preparing the report, the Director shall consult with the
Under Secretary of Commerce for Oceans and Atmosphere.
This report shall be submitted to the Congress not later than
2 years after the date of enactment of this Act.
TITLE V—FLOOD INSURANCE
TASK FORCE
SEC. 501. FLOOD INSURANCE INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT.—There is hereby established an
interagency task force to be known as the Flood Insurance
Task Force (in this section referred to as the ‘‘Task Force’’).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Task Force shall be com-
posed of 11 members, who shall be the designees of—
(A) the Federal Insurance Administrator;
(B) the Federal Housing Commissioner;
(C) the Secretary of Veterans Affairs;
(D) the Administrator of the Farmers Home
Administration;
(E) the Administrator of the Small Busi-
ness Administration;
(F) a designee of the Financial Institutions
Examination Council;
(G) the chairman of the Board of Directors
of the Federal Home Loan Mortgage Corpora-
tion;
(H) the chairman of the Board of Directors
of the Federal National Mortgage Association;
(I) the Under Secretary of Commerce for
Oceans and Atmosphere;
(J) the Director of the United States Fish
and Wildlife Service; and
(K) the Administrator of the Environmental
Protection Agency.
(2) QUALIFICATIONS.—Members of the Task
Force shall be designated for membership on the Task
Force by reason of demonstrated knowledge and com-
petence regarding the national flood insurance pro-
gram.
(c) DUTIES.—The Task Force shall carry out the fol-
lowing duties:
(1) Make recommendations to the head of each
Federal agency and enterprise referred to under sub-
section (b)(1) regarding establishment or adoption of
standardized enforcement procedures among such
agencies and corporations responsible for enforcing
compliance with the requirements under the national
flood insurance program to ensure fullest possible
compliance with such requirements.
(2) Conduct a study of the extent to which Fed-
eral agencies and the secondary mortgage market can
provide assistance in ensuring compliance with the
requirements under the national flood insurance pro-
gram and submit to the Congress a report describing
the study and any conclusions.