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‘‘(3) LIMITATION.—The account of an indi-
vidual may be augmented not more than once under 
this subsection.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 4002 of the Supplemental Appro-
priations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note), as amended by paragraph (1), is 
further amended— 
(A) by striking subsection (f); and 
(B) by redesignating subsection (g) as sub-
section (d). 
(c) ORDER OF PAYMENTS REQUIREMENT.— 
(1) IN GENERAL.—Section 4001(e) of the Sup-
plemental Appropriations Act, 2008 (Public Law 
110–252; 26 U.S.C. 3304 note) is amended to read 
as follows: 
‘‘(e) COORDINATION RULE.—An agreement under 
this section shall not apply (or shall cease to apply) with 
respect to a State upon a determination by the Secretary 
that, under the State law or other applicable rules of such 
State, the payment of extended compensation for which 
an individual is otherwise eligible may or must be deferred 
until after the payment of any emergency unemployment 
compensation under section 4002, as amended by the Un-
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employment Benefits Extension Act of 2011, for which the 
individual is concurrently eligible.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 4001(b)(2) of such Act is amend-
ed— 
(A) by striking ‘‘or extended compensa-
tion’’; and 
(B) by striking ‘‘(except as provided under 
subsection (e))’’. 
(d) FUNDING.—Section 4004(e)(1) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 
26 U.S.C. 3304 note) is amended— 
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end; and 
(2) by inserting after subparagraph (G) the fol-
lowing: 
‘‘(H) the amendments made by section 
2302 of the Unemployment Benefits Extension 
Act of 2011; and’’. 
(e) EFFECTIVE DATES; TRANSITION RULES RELAT-
ING TO SUBSECTION (b).— 
(1) IN GENERAL.—The amendments made by— 
(A) subsection (a) shall take effect as if in-
cluded in the enactment of the Tax Relief, Un-
employment Insurance Reauthorization, and 
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Job Creation Act of 2010 (Public Law 111– 
312); 
(B) subsections (b) and (c) shall take ef-
fect on December 28, 2011, and shall apply 
with respect to weeks of unemployment begin-
ning after that date; and 
(C) subsection (d) shall take effect on the 
date of enactment of this Act. 
(2) TRANSITION RULES FOR THE APPLICATION 
OF THE AMENDMENTS MADE BY SUBSECTION (b) IN 
THE
CASE
OF
INDIVIDUALS
HAVING
RESIDUAL 
AMOUNTS IN THEIR ACCOUNT.— 
(A) 
EXHAUSTION
OF
RESIDUAL 
AMOUNTS.—In the case of an individual who, as 
of any time during the last week ending before 
January 3, 2012, has amounts remaining in an 
account established under section 4002 of the 
Supplemental Appropriations Act, 2008, emer-
gency unemployment compensation shall con-
tinue to be payable to such individual from the 
amounts so remaining, subject to section 
4007(b) of such Act, as amended by this sub-
title. 
(B) NON-AUGMENTATION RULE.— 
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(i) IN GENERAL.—Except as provided 
in clause (ii), after exhausting the amounts 
remaining in the individual’s account 
under subparagraph (A), no augmentation 
(or further augmentation) to such account 
may be made. 
(ii) EXCEPTION.—In the case of an 
individual whose residual amounts (as de-
scribed in subparagraph (A)) represent 
amounts that were established in such in-
dividual’s account under section 4002(b) of 
the 
Supplemental 
Appropriations 
Act, 
2008, as in effect before the date of enact-
ment of this Act, no augmentation to such 
account may be made except in accordance 
with section 4002(c) of such Act, as 
amended by this subtitle. 
(3) TRANSITION RULES FOR THE APPLICATION 
OF THE AMENDMENTS MADE BY SUBSECTION (b) IN 
THE CASE OF INDIVIDUALS BETWEEN TIERS.— 
(A) IN GENERAL.—In the case of an indi-
vidual for whom an emergency unemployment 
compensation account has been established 
under section 4002 of the Supplemental Appro-
priations Act, 2008, as in effect before the date 
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of enactment of this Act, but who is not covered 
by paragraph (2), no augmentation (or further 
augmentation) to such account shall be allow-
able, except as provided in subparagraph (B). 
(B) EXCEPTION.— 
(i) RULE.—In the case of a first-tier 
exhaustee, augmentation shall be allowable 
in a manner similar to that described in 
paragraph (2)(B)(ii). 
(ii) DEFINITION.—For purposes of 
this subparagraph, the term ‘‘first-tier 
exhaustee’’ means an individual— 
(I) who is described in subpara-
graph (A); and 
(II) whose emergency unemploy-
ment compensation account— 
(aa) has been exhausted of 
amounts described in section 
4002(b) of the Supplemental Ap-
propriations Act, 2008, as in ef-
fect before the enactment of this 
Act; but 
(bb) has never been aug-
mented. 
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(4) WEEK DEFINED.—For purposes of this sub-
section, the term ‘‘week’’ has the meaning given 
such term under section 4006 of the Supplemental 
Appropriations Act, 2008. 
SEC. 2143. TEMPORARY EXTENSION OF EXTENDED BENEFIT 
PROVISIONS. 
(a) IN GENERAL.—Section 2005 of the Assistance for 
Unemployed Workers and Struggling Families Act, as 
contained in Public Law 111–5 (26 U.S.C. 3304 note), 
is amended— 
(1) by striking ‘‘January 4, 2012’’ each place 
it appears and inserting ‘‘January 31, 2013’’; and 
(2) in subsection (c), by striking ‘‘June 11, 
2012’’ and inserting ‘‘January 31, 2013’’. 
(b) EXTENSION OF MATCHING FOR STATES WITH 
NO WAITING WEEK.—Section 5 of the Unemployment 
Compensation Extension Act of 2008 (Public Law 110– 
449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 
10, 2012’’ and inserting ‘‘January 31, 2013’’. 
(c) EXTENSION OF MODIFICATION OF INDICATORS 
UNDER THE EXTENDED BENEFIT PROGRAM.—Section 
203 of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note) is amend-
ed— 
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(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under either the first or 
second sentence of clause (iv) of section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act shall be available 
to cover the cost of additional extended unemployment 
benefits provided under such section 2(c)(2)(D) by reason 
of the amendments made by subsection (a) as well as to 
cover the cost of such benefits provided under such section 
2(c)(2)(D), as in effect on the day before the date of en-
actment of this Act. 
PART 3—IMPROVING REEMPLOYMENT STRATE-
GIES UNDER THE EMERGENCY UNEMPLOY-
MENT COMPENSATION PROGRAM 
SEC. 2161. IMPROVED WORK SEARCH FOR THE LONG-TERM 
UNEMPLOYED. 
(a) IN GENERAL.—Section 4001(b) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 
26 U.S.C. 3304 note) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(4) are able to work, available to work, and 
actively seeking work.’’. 
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(b) ACTIVELY SEEKING WORK.—Section 4001 of 
such Act is amended by adding at the end the following: 
‘‘(h) ACTIVELY SEEKING WORK.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(b)(4), the term ‘actively seeking work’ means, with 
respect to any individual, that such individual is ac-
tively engaged in a systematic and sustained effort 
to obtain work, as determined based on evidence 
(whether in electronic format or otherwise) satisfac-
tory to the State agency charged with the adminis-
tration of the State law. 
‘‘(2) SPECIFIC
REQUIREMENTS.—The specific 
requirements that must be met in order to satisfy 
subsection (b)(4), to the extent that it relates to ac-
tively seeking work, shall be established by the State 
agency, and shall include the following: 
‘‘(A) Registration for employment services 
within 30 days after the date on which occurs 
whichever of the following events occurs first, in 
the case of the individual referred to in para-
graph (1): 
‘‘(i) The submission of the claim on 
the basis of which amounts described in 
section 4002(b) (as amended by the Unem-
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ployment Benefits Extension Act of 2011) 
first become payable to such individual. 
‘‘(ii) The submission of the claim on 
the basis of which amounts described in 
section 4002(c) (as amended by the Unem-
ployment Benefits Extension Act of 2011) 
first become payable to such individual. 
‘‘(B) Posting a resume, record, or other 
application for employment on such database as 
the State agency may require. 
‘‘(C) Applying, in such manner as the 
State agency may require, for work.’’. 
SEC. 2162. REEMPLOYMENT SERVICES AND REEMPLOY-
MENT AND ELIGIBILITY ASSESSMENT ACTIVI-
TIES. 
(a) IN GENERAL.— 
(1) PROVISION OF SERVICES AND ACTIVITIES.— 
Section 4001 of the Supplemental Appropriations 
Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
note) is amended by inserting after subsection (h) 
(as added by section 2161) the following: 
‘‘(i) PROVISION OF SERVICES AND ACTIVITIES.— 
‘‘(1) IN GENERAL.—An agreement under this 
section shall require the following: 
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‘‘(A) The State which is party to such 
agreement shall provide reemployment services 
and reemployment and eligibility assessment ac-
tivities to each individual— 
‘‘(i) who, on or after the 30th day 
after the date of enactment of the Ex-
tended Benefits, Reemployment, and Pro-
gram Integrity Improvement Act, begins 
receiving amounts described in subsection 
(b) and (c) of 4002 of the Supplemental 
Appropriations Act of 2008, as amended 
by the Extended Benefits, Reemployment, 
and Program Integrity Improvement Act; 
and 
‘‘(ii) while such individual continues 
to receive emergency unemployment com-
pensation under this title. 
‘‘(B) As a condition of eligibility for emer-
gency unemployment compensation for any 
week— 
‘‘(i) a claimant shall meet the min-
imum educational requirements set forth in 
section 303(a)(10)(B) of the Social Secu-
rity Act; 
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‘‘(ii) a claimant who has been duly re-
ferred to reemployment services shall par-
ticipate in such services; and 
‘‘(iii) a claimant shall be actively seek-
ing work (determined applying subsection 
(h)). 
‘‘(2) DESCRIPTION OF SERVICES AND ACTIVI-
TIES.—The reemployment services and in-person re-
employment and eligibility assessment activities pro-
vided to individuals receiving emergency unemploy-
ment compensation described in paragraph (1)— 
‘‘(A) shall include— 
‘‘(i) the provision of labor market and 
career information; 
‘‘(ii) an assessment of the skills of the 
individual; 
‘‘(iii) orientation to the services avail-
able through the one-stop centers estab-
lished under title I of the Workforce In-
vestment Act of 1998; and 
‘‘(iv) review of the eligibility of the in-
dividual for emergency unemployment com-
pensation relating to the job search activi-
ties of the individual; and 
‘‘(B) may include the provision of— 
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‘‘(i) comprehensive and specialized as-
sessments; 
‘‘(ii) individual and group career 
counseling; 
‘‘(iii) training services; 
‘‘(iv) additional reemployment serv-
ices; and 
‘‘(v) job search counseling and the de-
velopment or review of an individual reem-
ployment plan that includes participation 
in job search activities and appropriate 
workshops. 
‘‘(3) PARTICIPATION REQUIREMENT.—As a con-
dition of continuing eligibility for emergency unem-
ployment compensation for any week, an individual 
who has been referred to reemployment services or 
reemployment and eligibility assessment activities 
under this subsection shall participate in such serv-
ices or activities, unless the State agency responsible 
for the administration of State unemployment com-
pensation law determines that— 
‘‘(A) such individual has completed partici-
pating in such services or activities; or 
‘‘(B) there is justifiable cause for failure to 
participate or to complete participating in such 
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services or activities, as determined in accord-
ance with guidance to be issued by the Sec-
retary.’’. 
(2) ISSUANCE OF GUIDANCE.—Not later than 
30 days after the date of enactment of this Act, the 
Secretary shall issue guidance on the implementation 
of the reemployment services and reemployment and 
eligibility assessment activities required to be pro-
vided under the amendment made by paragraph (1). 
(b) FUNDING.—Section 4002 of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note), as amended by section 2142(b), is fur-
ther amended by adding at the end the following: 
‘‘(e) OPTIONAL
FUNDING
FOR
REEMPLOYMENT 
SERVICES AND REEMPLOYMENT AND ELIGIBILITY AS-
SESSMENT ACTIVITIES.—In order to carry out section 
4001(i)(2), a State may withhold up to $5 from any 
amount otherwise payable to an individual under this title 
for any week.’’. 
SEC. 2163. STATE FLEXIBILITY TO SUPPORT LONG-TERM 
UNEMPLOYED WORKERS WITH IMPROVED 
REEMPLOYMENT SERVICES. 
Title IV of the Supplemental Appropriations Act, 
2008 (Public Law 110–252; 26 U.S.C. 3304 note) is 
amended by adding at the end the following: 
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‘‘DEMONSTRATION PROJECTS 
‘‘SEC. 4008. (a) The Secretary may enter into an 
agreement under this section, with any State which has 
an agreement with the Secretary under section 4001 and 
which submits an application under subsection (b), for the 
purpose of allowing such State to divert, in any month, 
a number of emergency unemployment compensation 
beneficiaries not to exceed 20 percent of the total number 
of beneficiaries, attributable to such State and receiving 
emergency unemployment compensation for the first week 
of such month, to conduct demonstration projects to test 
and evaluate measures designed— 
‘‘(1) to expedite the reemployment of individ-
uals who establish initial eligibility for unemploy-
ment compensation under the State law of such 
State; or 
‘‘(2) to improve the effectiveness of a State in 
carrying out its State law with respect to reemploy-
ment. 
‘‘(b) The Governor of any State desiring to conduct 
a demonstration project under this section shall submit 
an application to the Secretary. Any such application shall 
include— 
‘‘(1) a description of the activities to be carried 
out by the State to assist in the reemployment of eli-
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gible individuals to be served in accordance with this 
part, including activities the State intends to carry 
out and an estimate of the amounts the State in-
tends to allocate to those respective activities; 
‘‘(2) a description of the performance outcomes 
to be achieved by the State through the activities 
carried out under this part, including the employ-
ment outcomes to be achieved by participants and 
the processes the State will use to track perform-
ance, consistent with guidance provided by the Sec-
retary regarding such outcomes and processes; 
‘‘(3) the timelines for implementation of the ac-
tivities described in the application and the number 
of emergency unemployment compensation claimants 
expected to be enrolled in such activities for each 
quarter; 
‘‘(4) assurances that the State will participate 
in the evaluation activities carried out by the Sec-
retary under this section; 
‘‘(5) assurances that the State will provide ap-
propriate reemployment services to individuals par-
ticipating in the demonstration project; 
‘‘(6) assurances that the State will report such 
information as the Secretary may require relating to 
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fiscal, performance and other matters, including em-
ployment outcomes. 
‘‘(7) the specific aspects of the project to which 
the waiver would apply and the reasons why such 
waiver is needed; 
‘‘(8) a description of the goals and the expected 
programmatic 
outcomes 
of 
the 
demonstration 
project, including how the project would contribute 
to the objective described in subsection (a)(1), sub-
section (a)(2), or both; 
‘‘(9) assurances (accompanied by supporting 
analysis) that the demonstration project would not 
result in any increased net costs to the emergency 
unemployment compensation program; 
‘‘(10) a description of the manner in which the 
State— 
‘‘(A) will conduct an impact evaluation, 
using a control or comparison group or other 
valid methodology, of the demonstration project; 
and 
‘‘(B) will determine the extent to which the 
goals and outcomes described in paragraph (8) 
were achieved; and 
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‘‘(11) assurances that the State will provide any 
reports relating to the demonstration project, after 
its approval, as the Secretary may require. 
‘‘(c) Activities that may be pursued under a dem-
onstration project under this section, including— 
‘‘(1) subsidies for employer-provided training, 
such as wage subsidies; 
‘‘(2) work sharing or short-time compensation; 
and 
‘‘(3) enhanced employment strategies, which 
may include services such as— 
‘‘(A) assessments, counseling, and other 
intensive services that are provided by staff on 
a one-to-one basis and may be customized to 
meet the reemployment needs of emergency un-
employment compensation claimants and indi-
viduals; 
‘‘(B) comprehensive assessments designed 
to identify alternative career paths; 
‘‘(C) case management; 
‘‘(D) reemployment services that are pro-
vided more frequently and more intensively 
than such reemployment services have pre-
viously been provided by the State; 
‘‘(E) self-employment assistance programs; 
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‘‘(F) services that are designed to enhance 
communication skills, interviewing skills, and 
other skills that would assist in obtaining reem-
ployment; 
‘‘(G) direct disbursements to employers 
who hire individuals receiving emergency unem-
ployment compensation to cover part of the cost 
of wages that exceed the unemployed individ-
ual’s prior benefit level; and 
‘‘(H) other innovative activities which use 
a strategy that is different from the reemploy-
ment strategies described above and which are 
designed to facilitate the reemployment of indi-
viduals 
receiving 
emergency 
unemployment 
compensation. 
‘‘(d) The Secretary shall, in the case of any State 
for which an application is submitted under subsection 
(b)— 
‘‘(1) notify the State as to whether such appli-
cation has been approved or denied within 30 days 
after receipt of a complete application; and 
‘‘(2) provide public notice of the decision within 
10 days after providing notification to the State in 
accordance with paragraph (1). 
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Public notice under paragraph (2) may be provided 
through the Internet or other appropriate means. Any ap-
plication under this section that has not been denied with-
in such 30 days shall be deemed approved, and public no-
tice of any approval under this sentence shall be provided 
within 10 days thereafter. 
‘‘(e) The Secretary may terminate a demonstration 
project under this section if the Secretary determines that 
the State has violated the substantive terms or conditions 
of the project. 
‘‘(f) Authority to carry out a demonstration project 
under this section shall terminate with respect to any 
State after compensation under this title ceases to be pay-
able with respect to such State.’’. 
SEC. 2164. PROMOTING PROGRAM INTEGRITY THROUGH 
BETTER RECOVERY OF OVERPAYMENTS. 
Section 4005(c)(1) of the Supplemental Appropria-
tions Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
note) is amended— 
(1) by striking ‘‘may’’ and inserting ‘‘shall’’; 
(2) by striking ‘‘exceed’’ and inserting ‘‘be less 
than’’; and 
(3) by striking ‘‘made.’’ and inserting ‘‘made, 
unless the amount to be repaid is less than 50 per-
cent of the weekly benefit amount.’’. 
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SEC. 2165. RESTORE STATE FLEXIBILITY TO IMPROVE UN-
EMPLOYMENT PROGRAM SOLVENCY. 
Subsection (g) of section 4001 of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note) is repealed. 
Subtitle C—Medicare Extensions; 
Other Health Provisions 
PART 1—MEDICARE EXTENSIONS 
SEC. 2201. PHYSICIAN PAYMENT UPDATE. 
(a) IN GENERAL.—Section 1848(d) of the Social Se-
curity Act (42 U.S.C. 1395w–4(d)) is amended by adding 
at the end the following new paragraph: 
‘‘(13) UPDATE FOR 2012 AND 2013.— 
‘‘(A) IN GENERAL.—Subject to paragraphs 
(7)(B), (8)(B), (9)(B), (10)(B), (11)(B), and 
(12)(B), in lieu of the update to the single con-
version factor established in paragraph (1)(C) 
that would otherwise apply for 2012 and for 
2013, the update to the single conversion factor 
shall be 1.0 percent for the year. 
‘‘(B) NO
EFFECT
ON
COMPUTATION
OF 
CONVERSION
FACTOR
FOR
2014
AND
SUBSE-
QUENT
YEARS.—The conversion factor under 
this subsection shall be computed under para-
graph (1)(A) for 2014 and subsequent years as 
if subparagraph (A) had never applied.’’. 
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(b) MANDATED STUDIES ON PHYSICIAN PAYMENT 
REFORM.— 
(1) STUDY
BY
SECRETARY
ON
OPTIONS
FOR 
BUNDLED OR EPISODE-BASED PAYMENT.— 
(A) 
IN
GENERAL.—The 
Secretary 
of 
Health and Human Services shall conduct a 
study that examines options for bundled or epi-
sode-based payments, to cover physicians’ serv-
ices currently paid under the physician fee 
schedule under section 1848 of the Social Secu-
rity Act (42 U.S.C. 1395w–4), for one or more 
prevalent chronic conditions (such as cancer, di-
abetes, and congestive heart failure) or episodes 
of care for one or more major procedures (such 
as medical device implantation). In conducting 
the study the Secretary shall consult with med-
ical professional societies and other relevant 
stakeholders. The study shall include an exam-
ination of related private payer payment initia-
tives. 
(B) REPORT.—Not later than January 1, 
2013, the Secretary shall submit to the Com-
mittees on Ways and Means and Energy and 
Commerce of the House of Representatives and 
the Committee on Finance in the Senate a re-
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port on the study conducted under this para-
graph. The Secretary shall include in the report 
recommendations on suitable alternative pay-
ment options for services paid under such fee 
schedule and on associated implementation re-
quirements (such as timelines, operational 
issues, and interactions with other payment re-
form initiatives). 
(2) GAO STUDY
OF
PRIVATE
PAYER
INITIA-
TIVES.— 
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct a study 
that examines initiatives of private entities of-
fering or administering health insurance cov-
erage, group health plans, or other private 
health benefit plans to base or adjust physician 
payment rates under such coverage or plans for 
performance on quality and efficiency as well as 
demonstration of care delivery improvement ac-
tivities (such as adherence to evidence based 
guidelines and patient shared decision making 
programs). In conducting such study, the 
Comptroller General shall consult, to the extent 
appropriate, with medical professional societies 
and other relevant stakeholders. 
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(B) REPORT.—Not later than January 1, 
2013, the Comptroller General shall submit to 
the Committees on Ways and Means and En-
ergy and Commerce of the House of Represent-
atives and the Committee on Finance in the 
Senate a report on the study conducted under 
this paragraph. Such report shall include an as-
sessment of applicability of the payer initiatives 
described in subparagraph (A) to the Medicare 
program and recommendations on modifications 
to existing Medicare performance-based pay-
ment initiatives. 
(3) MEDPAC STUDY
OF
ALIGNING
PAYMENT 
INCENTIVES.—Not later than March 1, 2013, the 
Medicare Payment Advisory Commission shall con-
duct a study, and submit to the Committees on 
Ways and Means and Energy and Commerce of the 
House of Representatives and the Committee on Fi-
nance in the Senate a report, that examines the fea-
sibility of aligning private payer quality and effi-
ciency programs with those in the Medicare pro-
gram. In conducting such study, the Medicare Pay-
ment Advisory Commission shall consult with med-
ical professional societies and other relevant stake-
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holders. Such report shall include recommendations 
on how to achieve such alignment. 
(4) COLLABORATION.—The Secretary, Comp-
troller General, and Commission may collaborate to 
the extent beneficial in conducting their respective 
studies and submitting their respective reports under 
this subsection. 
(c) STUDY AND REVIEW OF MEASURES TO IMPROVE 
PHYSICIAN PAYMENTS, HEALTH OUTCOMES, AND EFFI-
CIENCY.—During the 112th Congress, the Committees on 
Energy and Commerce and Ways and Means of the House 
of Representatives and the Committee on Finance in the 
Senate shall each study and review value-based measures 
and practice arrangements which may improve health out-
comes and efficiency in the Medicare program to the end 
of replacing the Medicare sustainable growth rate in a fis-
cally responsible manner and establishing a sustainable 
payment system. In conducting such study and review, the 
committees shall solicit comments from stakeholder physi-
cian groups, including State medical associations. 
SEC. 2202. AMBULANCE ADD-ONS. 
(a) GROUND AMBULANCE.—Section 1834(l)(13)(A) 
of the Social Security Act (42 U.S.C. 1395m(l)(13)(A)), 
as amended by section 106(a) of the Medicare and Med-
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icaid Extenders Act of 2010 (Public Law 111–309), is 
amended— 
(1) in the matter preceding clause (i), by strik-
ing ‘‘2012’’ and inserting ‘‘2013’’; and 
(2) in each of clauses (i) and (ii), by striking 
‘‘2012’’ and inserting ‘‘2013’’ each place it appears. 
(b) 
SUPER
RURAL
AMBULANCE.—Section 
1834(l)(12)(A) of the Social Security Act (42 U.S.C. 
1395m(l)(12)(A)), as amended by section 106(c) of the 
Medicare and Medicaid Extenders Act of 2010 (Public 
Law 111–309), is amended in the first sentence by strik-
ing ‘‘2012’’ and inserting ‘‘2013’’. 
(c) GAO REPORT UPDATE.—Not later than October 
1, 2012, the Comptroller General of the United States 
shall update the GAO report GAO–07–383 (relating to 
Ambulance Providers: Costs and Expected Medicare Mar-
gins Vary Greatly) to reflect current costs for ambulance 
providers. 
(d) MEDPAC REPORT.—The Medicare Payment Ad-
visory Commission shall conduct a study of— 
(1) the appropriateness of the add-on payments 
for ambulance providers under paragraphs (12)(A) 
and (13)(A) of section 1834(l) of the Social Security 
Act (42 U.S.C. 1395m(l)); 
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(2) the effect these additional payments have on 
the Medicare margins of ambulance providers; and 
(3) whether there is a need to reform the Medi-
care ambulance fee schedule under such section and, 
if so, what should such reforms be, including rolling 
the add-on payments into the base rate. 
Not later than July 1, 2012, the Commission shall submit 
to the Committees on Ways and Means and Energy and 
Commerce of the House of Representatives and the Com-
mittee on Finance of the Senate a report on such study 
and shall include in the report such recommendations as 
the Commission deems appropriate. 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply to ambulance services 
furnished on or after January 1, 2012. 
SEC. 2203. MEDICARE PAYMENT FOR OUTPATIENT THER-
APY SERVICES. 
(a) 
APPLICATION
OF
ADDITIONAL
REQUIRE-
MENTS.—Section 1833(g)(5) of the Social Security Act 
(42 U.S.C. 1395l(g)(5)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(5)’’; 
(2) by striking ‘‘December 31, 2011’’ and in-
serting ‘‘December 31, 2013’’; 
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(3) in the first sentence, by inserting ‘‘and if 
the requirement of subparagraph (B) is met’’ after 
‘‘medically necessary’’; 
(4) in the second sentence, by inserting ‘‘made 
in accordance with such requirement’’ after ‘‘receipt 
of the request’’; and 
(5) by adding at the end the following new sub-
paragraphs: 
‘‘(B) In the case of outpatient therapy services for 
which an exception is requested under the first sentence 
of subparagraph (A), the claim for such services contains 
an appropriate modifier (such as the KX modifier used 
as of the date of the enactment of this subparagraph) indi-
cating that such services are medically necessary as justi-
fied by appropriate documentation in the medical record 
involved. 
‘‘(C)(i) In applying this paragraph with respect to a 
request for an exception with respect to expenses that 
would be incurred for outpatient therapy services (includ-
ing services described in subsection (a)(8)(B)) that would 
exceed the threshold described in clause (ii) for a year, 
the request for such an exception, for services furnished 
on or after July 1, 2012, shall be subject to a manual 
medical review process that is similar to the manual med-
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ical review process used for certain exceptions under this 
paragraph in 2006. 
‘‘(ii) The threshold under this clause for a year is 
$3,700. Such threshold shall be applied separately— 
‘‘(I) for physical therapy services and speech- 
language pathology services; and 
‘‘(II) for occupational therapy services.’’. 
(b) APPLICATION OF THERAPY CAP TO THERAPY 
FURNISHED AS PART OF HOSPITAL OUTPATIENT SERV-
ICES.—Paragraphs (1) and (3) of section 1833(g) of such 
Act are each amended by striking ‘‘but not described in 
section 1833(a)(8)(B)’’ and inserting ‘‘but (with respect 
to services furnished before July 1, 2012) not described 
in subsection (a)(8)(B)’’. 
(c) REQUIREMENT FOR INCLUSION ON CLAIMS OF 
NPI OF PHYSICIAN WHO REVIEWS THERAPY PLAN.— 
Section 1842(t) of such Act (42 U.S.C. 1395u(t)) is 
amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(t)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Each request for payment, or bill submitted, for 
therapy services described in paragraph (1) or (3) of sec-
tion 1833(g) furnished on or after July 1, 2012, for which 
payment may be made under this part shall include the 
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national provider identifier of the physician who periodi-
cally reviews the plan for such services under section 
1861(p)(2).’’. 
(d) IMPLEMENTATION.—The Secretary of Health and 
Human Services shall implement such claims processing 
edits and issue such guidance as may be necessary to im-
plement the amendments made by this section in a timely 
manner. Notwithstanding any other provision of law, the 
Secretary may implement the amendments made by this 
section by program instruction. Of the amount of funds 
made available to the Secretary for fiscal year 2012 for 
program management for the Centers for Medicare & 
Medicaid Services, not to exceed $7,500,000 shall be avail-
able for such fiscal year to carry out section 1833(g)(5)(C) 
of the Social Security Act (relating to manual medical re-
view), as added by subsection (a). Of the amount of funds 
made available to the Secretary for fiscal year 2013 for 
such program management, not to exceed $7,500,000 
shall be available for such fiscal year to carry out such 
section. 
(e) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to services furnished on or after 
January 1, 2012. 
(f) MEDPAC REPORT
ON IMPROVED MEDICARE 
THERAPY BENEFITS.—Not later than March 1, 2013, the 
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Medicare Payment Advisory Commission shall submit to 
the Committees on Energy and Commerce and Ways and 
Means of the House of Representatives and to the Com-
mittee on Finance of the Senate a report making rec-
ommendations on how to improve the outpatient therapy 
benefit under part B of title XVIII of the Social Security 
Act. The report shall include recommendations on how to 
reform the payment system for such outpatient therapy 
services under such part so that the benefit is better de-
signed to reflect individual acuity, condition, and therapy 
needs of the patient. Such report shall include an examina-
tion of private sector initiatives relating to outpatient ther-
apy benefits. 
(g) COLLECTION OF ADDITIONAL DATA.— 
(1) STRATEGY.—The Secretary of Health and 
Human Services shall implement, beginning on Jan-
uary 1, 2013, a claims-based data collection strategy 
that is designed to assist in reforming the Medicare 
payment system for outpatient therapy services sub-
ject to the limitations of section 1833(g) of the So-
cial Security Act. Such strategy shall be designed to 
provide for the collection of data on patient function 
during the course of therapy services in order to bet-
ter understand patient condition and outcomes. 
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(2) CONSULTATION.—In proposing and imple-
menting such strategy, the Secretary shall consult 
with relevant stakeholders. 
(h) GAO REPORT ON MANUAL MEDICAL REVIEW 
PROCESS IMPLEMENTATION.—Not later than May 1, 
2013, the Comptroller General of the United States shall 
submit to the Committees on Energy and Commerce and 
Ways and Means of the House of Representatives and to 
the Committee on Finance of the Senate a report on the 
implementation of the manual medical review process re-
ferred to in section 1833(g)(5)(C) of the Social Security 
Act. Such report shall include aggregate data on the num-
ber of individuals and claims subject to such process, the 
number of reviews conducted under such process, and the 
outcome of such reviews. 
SEC. 2204. WORK GEOGRAPHIC ADJUSTMENT. 
(a) IN GENERAL.—Section 1848(e)(1)(E) of the So-
cial Security Act (42 U.S.C. 1395w–4(e)(1)(E)) is amend-
ed by striking ‘‘January 1, 2012’’ and inserting ‘‘January 
1, 2013’’. 
(b) REPORT.—Not later than June 1, 2012, the 
Medicare Payment Advisory Commission shall submit to 
the Committees on Ways and Means and Energy and 
Commerce of the House of Representatives and the Com-
mittee on Finance of the Senate a report that assesses 
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whether any geographic adjustment is needed under sec-
tion 1848 of the Social Security Act (42 U.S.C. 1395w– 
4) to distinguish the difference in work effort by geo-
graphic area and, if so, what that level should be and 
where it should be applied. The report shall also assess 
the impact of the work geographic adjustment under such 
section, including the extent to which the floor impacts 
access to care. 
PART 2—OTHER HEALTH PROVISIONS 
SEC. 2211. QUALIFYING INDIVIDUAL (QI) PROGRAM. 
(a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 
Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 
amended by striking ‘‘December 2011’’ and inserting ‘‘De-
cember 2012’’. 
(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR 
ALLOCATION.—Section 1933(g) of such Act (42 U.S.C. 
1396u–3(g)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (O); 
(B) in subparagraph (P), by striking the 
period at the end and inserting a semicolon; 
and 
(C) by adding at the end the following new 
subparagraphs: 
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‘‘(Q) for the period that begins on January 
1, 2012, and ends on September 30, 2012, the 
total allocation amount is $450,000,000; and 
‘‘(R) for the period that begins on October 
1, 2012, and ends on December 31, 2012, the 
total allocation amount is $280,000,000.’’; and 
(2) in paragraph (3), in the matter preceding 
subparagraph (A), by striking ‘‘or (P)’’ and insert-
ing ‘‘(P), or (R)’’. 
SEC. 2212. EXTENSION OF TRANSITIONAL MEDICAL ASSIST-
ANCE (TMA). 
(a) 
EXTENSION.—Sections 
1902(e)(1)(B) 
and 
1925(f) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1396a(e)(1)(B), 1396r–6(f)) are each amended by strik-
ing ‘‘December 31, 2011’’ and inserting ‘‘December 31, 
2012’’. 
(b) EXTENDING APPLICATION OF TERMINATION OF 
ELIGIBILITY BASED ON INCOME TO INITIAL EXTENSION 
PERIOD.— 
(1) INCOME REPORTING REQUIREMENTS.—Sub-
section (b)(2)(B)(i) of section 1925 of such Act (42 
U.S.C. 1396r–6) is amended— 
(A) by striking ‘‘additional extended assist-
ance under this subsection’’ and inserting ‘‘con-
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tinued extended assistance under subsection 
(a)’’; and 
(B) by inserting ‘‘(and, in the case of a 
State that makes an election under subsection 
(a)(5), the 7th month and the 11th month)’’ 
after ‘‘4th month’’. 
(2) TERMINATION.—Subsection (a)(3) of such 
section is amended— 
(A) in subparagraph (B)— 
(i) by inserting ‘‘or (D)’’ after ‘‘sub-
paragraph (A)’’; and 
(ii) by striking the period at the end 
and inserting the following: ‘‘, which notice 
shall include (in the case of termination 
under subparagraph (D)(ii), relating to no 
continued earnings) a description of how 
the family may reestablish eligibility for 
medical assistance under the State plan. 
No termination shall be effective under 
subparagraph (D) earlier than 10 days 
after the date of mailing of such notice.’’; 
(B) in subparagraph (C)— 
(i) by designating the matter begin-
ning with ‘‘With respect to’’ as a clause (i) 
with the heading ‘‘DEPENDENT
CHIL-
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DREN.—’’ and appropriate indentation; 
and 
(ii) by adding at the end the following 
new clause: 
‘‘(ii) MEDICALLY
NEEDY.—With re-
spect to an individual who would cease to 
receive medical assistance because of sub-
paragraph (D) but who may be eligible for 
assistance under the State plan because 
the individual is within a category of per-
son for which medical assistance under the 
State plan is available under section 
1902(a)(10)(C) 
(relating 
to 
medically 
needy individuals), the State may not dis-
continue such assistance under such sub-
paragraph until the State has determined 
that the individual is not eligible for assist-
ance under the plan.’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(D) QUARTERLY INCOME REPORTING AND 
TEST.—Subject to subparagraphs (B) and (C), 
extension of assistance during the 6-month pe-
riod described in paragraph (1) to a family 
shall terminate (during the period) at the close 
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of the 4th month of the 6-month period (or 4th, 
7th, or 11th month in case of a State that 
makes an election under paragraph (5)) if— 
‘‘(i) the family fails to report to the 
State, by the 21st day of such month, the 
information 
required 
under 
subsection 
(b)(2)(B)(i), unless the family has estab-
lished, to the satisfaction of the State, 
good cause for the failure to report on a 
timely basis; 
‘‘(ii) the caretaker relative had no 
earnings in one or more of the previous 3 
months, unless such lack of any earnings 
was due to an involuntary loss of employ-
ment, illness, or other good cause, estab-
lished to the satisfaction of the State; or 
‘‘(iii) the State determines that the 
family’s average gross monthly earnings 
(less such costs for such child care as is 
necessary for the employment of the care-
taker relative) during the immediately pre-
ceding 3-month period exceed 185 percent 
of the official poverty line (as defined by 
the Office of Management and Budget, 
and revised annually in accordance with 
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section 673(2) of the Omnibus Budget 
Reconciliation Act of 1981) applicable to a 
family of the size involved. 
Information described in clause (i) shall be sub-
ject to the restrictions on use and disclosure of 
information provided under section 402(a)(9). 
Instead of terminating a family’s extension 
under clause (i), a State, at its option, may pro-
vide for suspension of the extension until the 
month after the month in which the family re-
ports information required under subsection 
(b)(2)(B)(i), but only if the family’s extension 
has not otherwise been terminated under clause 
(ii) or (iii). The State shall make determina-
tions under clause (iii) for a family each time 
a report under subsection (b)(2)(B)(i) for the 
family is received.’’. 
(3) EFFECTIVE DATE.— 
(A) IN GENERAL.—The amendments made 
by this subsection shall, subject to subpara-
graph (B), apply to assistance furnished for 
months beginning with January 2012. 
(B) TRANSITION
FOR
CURRENT
BENE-
FICIARIES.— 
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(i) IN
GENERAL.—Subject to clause 
(ii), such amendments shall not apply to 
any individual who is receiving extended 
assistance under subsection (a) of section 
1925 of the Social Security Act for Decem-
ber 2011 during the period of assistance 
that includes such month. 
(ii) SPECIAL RULE FOR INDIVIDUALS 
ELIGIBLE FOR 12 MONTHS EXTENDED AS-
SISTANCE.—In the case of a State that 
makes an election under paragraph (5) of 
such section, such amendments shall apply 
to an individual who is receiving such ex-
tended assistance for such month if such 
month is within the first 6 months of the 
12-month period referred to in such para-
graph but only with respect to the second 
6 months of such 12-month period. 
SEC. 2213. MODIFICATION TO REQUIREMENTS FOR QUALI-
FYING FOR EXCEPTION TO MEDICARE PROHI-
BITION ON CERTAIN PHYSICIAN REFERRALS 
FOR HOSPITALS. 
(a) IN GENERAL.—Section 1877(i) of the Social Se-
curity Act (42 U.S.C. 1395nn(i)) is amended— 
(1) in paragraph (1)(A)— 
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(A) in the matter preceding clause (i), by 
striking ‘‘had’’; 
(B) in clause (i), by inserting ‘‘had’’ before 
‘‘physician ownership’’; and 
(C) by amending clause (ii) to read as fol-
lows: 
‘‘(ii) either— 
‘‘(I) had a provider agreement 
under section 1866 in effect on such 
date; or 
‘‘(II) was under construction on 
such date.’’; and 
(2) in paragraph (3)— 
(A) by amending subparagraph (E) to read 
as follows: 
‘‘(E) APPLICABLE
HOSPITAL.—In this 
paragraph, the term ‘applicable hospital’ means 
a hospital that does not discriminate against 
beneficiaries of Federal health care programs 
and does not permit physicians practicing at 
the hospital to discriminate against such bene-
ficiaries.’’; and 
(B) in subparagraph (F)(iii), by striking 
‘‘subparagraph (E)(iii)’’ and inserting ‘‘sub-
paragraph (E)’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be effective as if as if included in the 
enactment of subsection (i) of section 1877 of the Social 
Security Act (42 U.S.C. 1395nn). 
PART 3—OFFSETS 
SEC. 2221. ADJUSTMENTS TO MAXIMUM THRESHOLDS FOR 
RECAPTURING OVERPAYMENTS RESULTING 
FROM 
CERTAIN 
FEDERALLY-SUBSIDIZED 
HEALTH INSURANCE. 
The table specified in clause (i) of section 
36B(f)(2)(B) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘If the household income (expressed as 
a percent of poverty line) is: 
The applicable dollar amount is: 
Less than 100 percent 
$600 
At least 100 percent and less than 150 
percent 
$800 
At least 150 percent but less than 200 
percent 
$1,000 
At least 200 percent but less than 250 
percent 
$1,500 
At least 250 percent but less than 300 
percent 
$2,200 
At least 300 percent but less than 350 
percent 
$2,500 
At least 350 percent but less than 400 
percent 
$3,200.’’. 
SEC. 2222. PREVENTION AND PUBLIC HEALTH FUND. 
Section 4002(b) of the Patient Protection and Af-
fordable Care Act (42 U.S.C. 300u–11(b)) is amended— 
(1) in paragraph (3), by adding at the end 
‘‘and’’; and 
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(2) by striking each of paragraphs (4) through 
(6) and inserting the following: 
‘‘(4) for fiscal year 2013 and each subsequent 
fiscal year, $640,000,000.’’. 
SEC. 2223. PARITY IN MEDICARE PAYMENTS FOR HOSPITAL 
OUTPATIENT 
DEPARTMENT 
EVALUATION 
AND MANAGEMENT OFFICE VISIT SERVICES. 
Section 1833(t) of the Social Security Act (42 U.S.C. 
1395l(t)) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (D), by striking ‘‘The 
Secretary’’ and inserting ‘‘Subject to subpara-
graph (H), the Secretary’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(H) PARITY IN FEE SCHEDULE AMOUNT 
FOR
SPECIFIED
EVALUATION
AND
MANAGE-
MENT SERVICES.— 
‘‘(i) IN GENERAL.—In the case of cov-
ered OPD services that are specified eval-
uation and management services furnished 
during 2012 or a subsequent year, there 
shall be substituted for the medicare OPD 
fee schedule amount established under sub-
paragraph (D) for such services and year, 
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before application of any geographic or 
other adjustment, an amount equal to the 
product of the conversion factor estab-
lished under section 1848(d) for such year 
and the amount by which— 
‘‘(I) the non-facility practice ex-
pense relative value units under the 
fee schedule under section 1848 for 
such year for physicians’ services that 
are such specified evaluation and 
management services; exceeds 
‘‘(II) the facility practice expense 
relative value unit under such fee 
schedule for such year and services. 
‘‘(ii) BUDGET
NEUTRALITY.—In de-
termining the adjustments under para-
graph (9)(B) for 2012 or a subsequent 
year, the Secretary shall not take into ac-
count under such paragraph or paragraph 
(2)(E) any changes in expenditures that 
result from the application of this subpara-
graph. 
‘‘(iii) SPECIFIED
EVALUATION
AND 
MANAGEMENT
SERVICES
DEFINED.—For 
the purposes of this subparagraph, the 
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term ‘specified evaluation and management 
services’ means the HCPCS codes in the 
range 99201 through 99215 as of January 
1, 2011 (and such codes as subsequently 
modified by the Secretary).’’; and 
(2) in paragraph (9)(B), by striking ‘‘If the 
Secretary’’ and inserting ‘‘Subject to paragraph 
(3)(H)(ii), if the Secretary’’. 
SEC. 2224. REDUCTION OF BAD DEBT TREATED AS AN AL-
LOWABLE COST. 
(a) HOSPITALS.—Section 1861(v)(1)(T) of the Social 
Security Act (42 U.S.C. 1395x(v)(1)(T)) is amended— 
(1) in clause (iii), by striking ‘‘and’’ at the end; 
(2) in clause (iv)— 
(A) by striking ‘‘a subsequent fiscal year’’ 
and inserting ‘‘fiscal years 2001 through 
2012’’; and 
(B) by striking the period at the end and 
inserting ‘‘, and’’; and 
(3) by adding at the end the following: 
‘‘(v) for cost reporting periods begin-
ning during fiscal year 2013, by 35 per-
cent of such amount otherwise allowable, 
‘‘(vi) for cost reporting periods begin-
ning during fiscal year 2014, by 40 per-
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cent of such amount otherwise allowable, 
and 
‘‘(vii) for cost reporting periods begin-
ning during a subsequent fiscal year, by 45 
percent of such amount otherwise allow-
able.’’. 
(b) 
SKILLED
NURSING
FACILITIES.—Section 
1861(v)(1)(V) of such Act (42 U.S.C. 1395x(v)(1)(V)) is 
amended— 
(1) in the matter preceding clause (i), by strik-
ing ‘‘with respect to cost reporting periods beginning 
on or after October 1, 2005’’ and inserting ‘‘and 
(beginning with respect to cost reporting periods be-
ginning during fiscal year 2013) for covered skilled 
nursing services described in section 1888(e)(2)(A) 
furnished by hospital providers of extended care 
services (as described in section 1883)’’; 
(2) in clause (i), by striking ‘‘reduced by’’ and 
all that follows through ‘‘allowable; and’’ and insert-
ing the following: ‘‘reduced by— 
‘‘(I) for cost reporting periods be-
ginning on or after October 1, 2005, 
but before fiscal year 2013, 30 per-
cent of such amount otherwise allow-
able; 
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‘‘(II) for cost reporting periods 
beginning during fiscal year 2013, by 
35 percent of such amount otherwise 
allowable; 
‘‘(III) for cost reporting periods 
beginning during fiscal year 2014, by 
40 percent of such amount otherwise 
allowable; and 
‘‘(IV) for cost reporting periods 
beginning during a subsequent fiscal 
year, by 45 percent of such amount 
otherwise allowable; and’’; and 
(3) in clause (ii), by striking ‘‘such section shall 
not be reduced.’’ and inserting ‘‘such section— 
‘‘(I) for cost reporting periods be-
ginning on or after October 1, 2005, 
but before fiscal year 2013, shall not 
be reduced; 
‘‘(II) for cost reporting periods 
beginning during fiscal year 2013, 
shall be reduced by 15 percent of such 
amount otherwise allowable; 
‘‘(III) for cost reporting periods 
beginning during fiscal year 2014, 
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shall be reduced by 30 percent of such 
amount otherwise allowable; and 
‘‘(IV) for cost reporting periods 
beginning during a subsequent fiscal 
year, shall be reduced by 45 percent 
of such amount otherwise allowable.’’. 
(c) 
CERTAIN
OTHER
PROVIDERS.—Section 
1861(v)(1) of such Act (42 U.S.C. 1395x(v)(1)) is amend-
ed by adding at the end the following new subparagraph: 
‘‘(W)(i) In determining such reasonable costs for pro-
viders described in clause (ii), the amount of bad debts 
otherwise treated as allowable costs which are attributable 
to deductibles and coinsurance amounts under this title 
shall be reduced— 
‘‘(I) for cost reporting periods beginning during 
fiscal year 2013, by 15 percent of such amount oth-
erwise allowable; 
‘‘(II) for cost reporting periods beginning dur-
ing fiscal year 2014, by 30 percent of such amount 
otherwise allowable; and 
‘‘(III) for cost reporting periods beginning dur-
ing a subsequent fiscal year, by 45 percent of such 
amount otherwise allowable. 
‘‘(ii) A provider described in this clause is a provider 
of services not described in subparagraph (T) or (V), a 
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supplier, or any other type of entity that receives payment 
for bad debts under the authority under subparagraph 
(A).’’. 
(d) CONFORMING AMENDMENT FOR HOSPITAL SERV-
ICES.—Section 4008(c) of the Omnibus Budget Reconcili-
ation Act of 1987, as amended by section 8402 of the 
Technical and Miscellaneous Revenue Act of 1988 and 
section 6023 of the Omnibus Budget Reconciliation Act 
of 1989, is amended by adding at the end the following 
new sentence: ‘‘Effective for cost reporting periods begin-
ning on or after October 1, 2012, the provisions of the 
previous two sentences shall not apply.’’. 
SEC. 2225. REBASING OF STATE DSH ALLOTMENTS FOR FIS-
CAL YEAR 2021. 
Section 1923(f) of the Social Security Act (42 U.S.C. 
1396r–4(f)) is amended— 
(1) by redesignating paragraph (8) as para-
graph (9); 
(2) in paragraph (3)(A) by striking ‘‘para-
graphs (6) and (7)’’ and inserting ‘‘paragraphs (6), 
(7), and (8)’’; and 
(3) by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(8) REBASING OF STATE DSH ALLOTMENTS 
FOR FISCAL YEAR 2021.—With respect to fiscal 2021 
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and each subsequent fiscal year, for purposes of ap-
plying paragraph (3)(A) to determine the DSH al-
lotment for a State, the amount of the DSH allot-
ment for the State under paragraph (3) for fiscal 
year 2020 shall be treated as if it were such amount 
as reduced under paragraph (7).’’. 
Subtitle D—TANF Extension 
SEC. 2301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Welfare Integrity 
and Data Improvement Act’’. 
SEC. 2302. EXTENSION OF PROGRAM. 
(a) 
FAMILY
ASSISTANCE
GRANTS.—Section 
403(a)(1) of the Social Security Act (42 U.S.C. 603(a)(1)) 
is amended— 
(1) in subparagraph (A), by striking ‘‘each of 
fiscal years 1996’’ and all that follows through 
‘‘2003’’ and inserting ‘‘fiscal year 2012’’; 
(2) in subparagraph (B)— 
(A) by inserting ‘‘(as in effect just before 
the enactment of the Welfare Integrity and 
Data Improvement Act)’’ after ‘‘this para-
graph’’ the 1st place it appears; and 
(B) by inserting ‘‘(as so in effect)’’ after 
‘‘this paragraph’’ the 2nd place it appears; and 
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by striking ‘‘each of fiscal years 1997 through 2002’’ and 
inserting ‘‘fiscal year 2012’’. 
(f) CENSUS BUREAU STUDY.—Section 414(b) of 
such Act (42 U.S.C. 614(b)) is amended by striking ‘‘each 
of fiscal years 1996’’ and all that follows through ‘‘2003’’ 
and inserting ‘‘fiscal year 2012’’. 
(g) CHILD CARE ENTITLEMENT.—Section 418(a)(3) 
of such Act (42 U.S.C. 618(a)(3)) is amended by striking 
‘‘appropriated’’ and all that follows and inserting ‘‘appro-
priated $2,917,000,000 for fiscal year 2012.’’. 
(h) GRANTS TO TERRITORIES.—Section 1108(b)(2) 
of such Act (42 U.S.C. 1308(b)(2)) is amended by striking 
‘‘for fiscal years 1997 through 2003’’ and inserting ‘‘fiscal 
year 2012’’. 
(i) PREVENTION
OF DUPLICATE APPROPRIATIONS 
FOR FISCAL YEAR 2012.—Expenditures made pursuant 
to the Short-Term TANF Extension Act (Public Law 
112–35) or section 403(b) of the Social Security Act for 
fiscal year 2012 shall be charged to the applicable appro-
priation or authorization provided by the amendments 
made by this section for such fiscal year. 
(j) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date 
of the enactment of this Act. 
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SEC. 2303. DATA STANDARDIZATION. 
(a) IN GENERAL.—Section 411 of the Social Security 
Act (42 U.S.C. 611) is amended by adding at the end the 
following: 
‘‘(d) DATA STANDARDIZATION.— 
‘‘(1) STANDARD DATA ELEMENTS.— 
‘‘(A) DESIGNATION.—The Secretary, in 
consultation with an interagency work group 
which shall be established by the Office of Man-
agement and Budget, and considering State 
and tribal perspectives, shall, by rule, designate 
standard data elements for any category of in-
formation required to be reported under this 
part. 
‘‘(B) REQUIREMENTS.—In designating the 
standard data elements, the Secretary shall, to 
the extent practicable— 
‘‘(i) ensure that the data elements are 
nonproprietary and interoperable; 
‘‘(ii) incorporate interoperable stand-
ards developed and maintained by an inter-
national voluntary consensus standards 
body, as defined by the Office of Manage-
ment and Budget, such as the Inter-
national Organization for Standardization; 
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‘‘(iii) incorporate interoperable stand-
ards developed and maintained by inter-
governmental partnerships, such as the 
National Information Exchange Model; 
and 
‘‘(iv) incorporate interoperable stand-
ards developed and maintained by Federal 
entities with authority over contracting 
and financial assistance, such as the Fed-
eral Acquisition Regulatory Council. 
‘‘(2) DATA REPORTING STANDARDS.— 
‘‘(A) DESIGNATION.—The Secretary, in 
consultation with an interagency work group es-
tablished by the Office of Management and 
Budget, and considering State and tribal per-
spectives, shall, by rule, designate standards to 
govern the data reporting required under this 
part. 
‘‘(B) REQUIREMENTS.—In designating the 
data reporting standards, the Secretary shall, to 
the extent practicable, incorporate existing non-
proprietary standards, such as the eXtensible 
Business Reporting Language. Such standards 
shall, to the extent practicable— 
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‘‘(i) incorporate a widely-accepted, 
nonproprietary, searchable, computer-read-
able format; 
‘‘(ii) be consistent with and implement 
applicable accounting principles; and 
‘‘(iii) be capable of being continually 
upgraded as necessary.’’. 
(b) APPLICABILITY.—The amendments made by this 
subsection shall apply with respect to information required 
to be reported on or after October 1, 2012. 
SEC. 2304. SPENDING POLICIES FOR ASSISTANCE UNDER 
STATE TANF PROGRAMS. 
(a) STATE REQUIREMENT.—Section 408(a) of the 
Social Security Act (42 U.S.C. 608(a)) is amended by add-
ing at the end the following: 
‘‘(12) STATE REQUIREMENT TO PREVENT UN-
AUTHORIZED SPENDING OF BENEFITS.— 
‘‘(A) IN GENERAL.—A State to which a 
grant is made under section 403 shall maintain 
policies and practices as necessary to prevent 
assistance provided under the State program 
funded under this part from being used in any 
transaction in— 
‘‘(i) any liquor store; 
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‘‘(ii) any casino, gambling casino, or 
gaming establishment; or 
‘‘(iii) any retail establishment which 
provides adult-oriented entertainment in 
which performers disrobe or perform in an 
unclothed state for entertainment. 
‘‘(B) DEFINITIONS.—For purposes of sub-
paragraph (A)— 
‘‘(i) LIQUOR STORE.—The term ‘liq-
uor store’ means any retail establishment 
which sells exclusively or primarily intoxi-
cating liquor. Such term does not include 
a grocery store which sells both intoxi-
cating liquor and groceries including staple 
foods (within the meaning of section 3(r) 
of the Food and Nutrition Act of 2008 (7 
U.S.C. 2012(r))). 
‘‘(ii) CASINO, GAMBLING CASINO, OR 
GAMING ESTABLISHMENT.—The terms ‘ca-
sino’, ‘gambling casino’, and ‘gaming es-
tablishment’ do not include a grocery store 
which sells groceries including such staple 
foods and which also offers, or is located 
within the same building or complex as, ca-
sino, gambling, or gaming activities.’’. 
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(b) PENALTY.—Section 409(a) of such Act (42 
U.S.C. 609(a)) is amended by adding at the end the fol-
lowing: 
‘‘(16) PENALTY
FOR
FAILURE
TO
ENFORCE 
SPENDING POLICIES.— 
‘‘(A) IN
GENERAL.—If, within 2 years 
after the date of the enactment of this para-
graph, any State has not reported to the Sec-
retary on such State’s implementation of the 
policies and practices required by section 
408(a)(12), or the Secretary determines that 
any State has not implemented and maintained 
such policies and practices, the Secretary shall 
reduce, by an amount equal to 5 percent of the 
State family assistance grant, the grant payable 
to such State under section 403(a)(1) for— 
‘‘(i) the fiscal year immediately suc-
ceeding the year in which such 2-year pe-
riod ends; and 
‘‘(ii) each succeeding fiscal year in 
which the State does not demonstrate that 
such State has implemented and main-
tained such policies and practices. 
‘‘(B) REDUCTION
OF
APPLICABLE
PEN-
ALTY.—The Secretary may reduce the amount 
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of the reduction required under subparagraph 
(A) based on the degree of noncompliance of 
the State. 
‘‘(C) STATE NOT RESPONSIBLE FOR INDI-
VIDUAL
VIOLATIONS.—Fraudulent activity by 
any individual in an attempt to circumvent the 
policies and practices required by section 
408(a)(12) shall not trigger a State penalty 
under subparagraph (A).’’. 
(c) CONFORMING AMENDMENT.—Section 409(c)(4) 
of such Act (42 U.S.C. 609(c)(4)) is amended by striking 
‘‘or (13)’’ and inserting ‘‘(13), or (16)’’. 
SEC. 2305. TECHNICAL CORRECTIONS. 
(a) Section 404(d)(1)(A) of the Social Security Act 
(42 U.S.C. 604(d)(1)(A)) is amended by striking ‘‘subtitle 
1 of Title’’ and inserting ‘‘Subtitle A of title’’. 
(b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of 
such Act (42 U.S.C. 607(c)(2)(A)(i) and 609(a)(3)(C)) 
are each amended by striking ‘‘403(b)(6)’’ and inserting 
‘‘403(b)(5)’’. 
(c) Section 409(a)(2)(A) of such Act (42 U.S.C. 
609(a)(2)(A)) is amended by moving clauses (i) and (ii) 
2 ems to the right. 
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(d) Section 409(c)(2) of such Act (42 U.S.C. 
609(c)(2)) is amended by inserting a comma after ‘‘appro-
priate’’. 
(e) Section 411(a)(1)(A)(ii)(III) of such Act (42 
U.S.C. 611(a)(1)(A)(ii)(III)) is amended by striking the 
last close parenthesis. 
TITLE III—FLOOD INSURANCE 
REFORM 
SEC. 3001. SHORT TITLE. 
This title may be cited as the ‘‘Flood Insurance Re-
form Act of 2011’’. 
SEC. 3002. EXTENSIONS. 
(a) EXTENSION OF PROGRAM.—Section 1319 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4026) 
is amended by striking ‘‘September 30, 2011’’ and insert-
ing ‘‘September 30, 2016’’. 
(b) EXTENSION OF FINANCING.—Section 1309(a) of 
such Act (42 U.S.C. 4016(a)) is amended by striking 
‘‘September 30, 2011’’ and inserting ‘‘September 30, 
2016’’. 
SEC. 3003. MANDATORY PURCHASE. 
(a) AUTHORITY TO TEMPORARILY SUSPEND MANDA-
TORY PURCHASE REQUIREMENT.— 
(1) IN GENERAL.—Section 102 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a) 
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is amended by adding at the end the following new 
subsection: 
‘‘(i) AUTHORITY TO TEMPORARILY SUSPEND MAN-
DATORY PURCHASE REQUIREMENT.— 
‘‘(1) FINDING BY ADMINISTRATOR THAT AREA 
IS AN ELIGIBLE AREA.—For any area, upon a re-
quest submitted to the Administrator by a local gov-
ernment authority having jurisdiction over any por-
tion of the area, the Administrator shall make a 
finding of whether the area is an eligible area under 
paragraph (3). If the Administrator finds that such 
area is an eligible area, the Administrator shall, in 
the discretion of the Administrator, designate a pe-
riod during which such finding shall be effective, 
which shall not be longer in duration than 12 
months. 
‘‘(2) SUSPENSION
OF
MANDATORY
PURCHASE 
REQUIREMENT.—If the Administrator makes a find-
ing under paragraph (1) that an area is an eligible 
area under paragraph (3), during the period speci-
fied in the finding, the designation of such eligible 
area as an area having special flood hazards shall 
not be effective for purposes of subsections (a), (b), 
and (e) of this section, and section 202(a) of this 
Act. Nothing in this paragraph may be construed to 
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prevent any lender, servicer, regulated lending insti-
tution, Federal agency lender, the Federal National 
Mortgage Association, or the Federal Home Loan 
Mortgage Corporation, at the discretion of such enti-
ty, from requiring the purchase of flood insurance 
coverage in connection with the making, increasing, 
extending, or renewing of a loan secured by im-
proved real estate or a mobile home located or to be 
located in such eligible area during such period or 
a lender or servicer from purchasing coverage on be-
half of a borrower pursuant to subsection (e). 
‘‘(3) ELIGIBLE AREAS.—An eligible area under 
this paragraph is an area that is designated or will, 
pursuant to any issuance, revision, updating, or 
other change in flood insurance maps that takes ef-
fect on or after the date of the enactment of the 
Flood Insurance Reform Act of 2011, become des-
ignated as an area having special flood hazards and 
that meets any one of the following 3 requirements: 
‘‘(A) AREAS WITH NO HISTORY OF SPE-
CIAL FLOOD HAZARDS.—The area does not in-
clude any area that has ever previously been 
designated as an area having special flood haz-
ards. 
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‘‘(B) AREAS
WITH
FLOOD
PROTECTION 
SYSTEMS
UNDER
IMPROVEMENTS.—The area 
was intended to be protected by a flood protec-
tion system— 
‘‘(i) that has been decertified, or is re-
quired to be certified, as providing protec-
tion for the 100-year frequency flood 
standard; 
‘‘(ii) that is being improved, con-
structed, or reconstructed; and 
‘‘(iii) for which the Administrator has 
determined measurable progress toward 
completion of such improvement, construc-
tion, reconstruction is being made and to-
ward securing financial commitments suffi-
cient to fund such completion. 
‘‘(C) AREAS
FOR
WHICH
APPEAL
HAS 
BEEN FILED.—An area for which a community 
has appealed designation of the area as having 
special flood hazards in a timely manner under 
section 1363. 
‘‘(4) EXTENSION OF DELAY.—Upon a request 
submitted by a local government authority having 
jurisdiction over any portion of the eligible area, the 
Administrator may extend the period during which a 
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finding under paragraph (1) shall be effective, ex-
cept that— 
‘‘(A) each such extension under this para-
graph shall not be for a period exceeding 12 
months; and 
‘‘(B) for any area, the cumulative number 
of such extensions may not exceed 2. 
‘‘(5) ADDITIONAL
EXTENSION
FOR
COMMU-
NITIES MAKING MORE THAN ADEQUATE PROGRESS 
ON FLOOD PROTECTION SYSTEM.— 
‘‘(A) EXTENSION.— 
‘‘(i) AUTHORITY.—Except as provided 
in subparagraph (B), in the case of an eli-
gible area for which the Administrator has, 
pursuant to paragraph (4), extended the 
period of effectiveness of the finding under 
paragraph (1) for the area, upon a request 
submitted by a local government authority 
having jurisdiction over any portion of the 
eligible area, if the Administrator finds 
that more than adequate progress has been 
made on the construction of a flood protec-
tion system for such area, as determined in 
accordance with the last sentence of sec-
tion 1307(e) of the National Flood Insur-
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HR 3630 PCS
ance Act of 1968 (42 U.S.C. 4014(e)), the 
Administrator may, in the discretion of the 
Administrator, further extend the period 
during which the finding under paragraph 
(1) shall be effective for such area for an 
additional 12 months. 
‘‘(ii) LIMIT.—For any eligible area, 
the cumulative number of extensions under 
this subparagraph may not exceed 2. 
‘‘(B) EXCLUSION FOR NEW MORTGAGES.— 
‘‘(i) 
EXCLUSION.—Any 
extension 
under subparagraph (A) of this paragraph 
of a finding under paragraph (1) shall not 
be effective with respect to any excluded 
property after the origination, increase, ex-
tension, or renewal of the loan referred to 
in clause (ii)(II) for the property. 
‘‘(ii) EXCLUDED
PROPERTIES.—For 
purposes of this subparagraph, the term 
‘excluded property’ means any improved 
real estate or mobile home— 
‘‘(I) that is located in an eligible 
area; and 
‘‘(II) for which, during the period 
that any extension under subpara-
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graph (A) of this paragraph of a find-
ing under paragraph (1) is otherwise 
in effect for the eligible area in which 
such property is located— 
‘‘(aa) a loan that is secured 
by the property is originated; or 
‘‘(bb) any existing loan that 
is secured by the property is in-
creased, extended, or renewed. 
‘‘(6) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to affect the appli-
cability of a designation of any area as an area hav-
ing special flood hazards for purposes of the avail-
ability of flood insurance coverage, criteria for land 
management and use, notification of flood hazards, 
eligibility for mitigation assistance, or any other pur-
pose or provision not specifically referred to in para-
graph (2). 
‘‘(7) REPORTS.—The Administrator shall, in 
each annual report submitted pursuant to section 
1320, include information identifying each finding 
under paragraph (1) by the Administrator during 
the preceding year that an area is an area having 
special flood hazards, the basis for each such find-
ing, any extensions pursuant to paragraph (4) of the 
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periods of effectiveness of such findings, and the 
reasons for such extensions.’’. 
(2) NO REFUNDS.—Nothing in this subsection 
or the amendments made by this subsection may be 
construed to authorize or require any payment or re-
fund for flood insurance coverage purchased for any 
property that covered any period during which such 
coverage is not required for the property pursuant to 
the applicability of the amendment made by para-
graph (1). 
(b) TERMINATION OF FORCE-PLACED INSURANCE.— 
Section 102(e) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(e)) is amended— 
(1) in paragraph (2), by striking ‘‘insurance.’’ 
and inserting ‘‘insurance, including premiums or 
fees incurred for coverage beginning on the date on 
which flood insurance coverage lapsed or did not 
provide a sufficient coverage amount.’’; 
(2) by redesignating paragraphs (3) and (4) as 
paragraphs (5) and 6), respectively; and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraphs: 
‘‘(3) TERMINATION OF FORCE-PLACED INSUR-
ANCE.—Within 30 days of receipt by the lender or 
servicer of a confirmation of a borrower’s existing 
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flood insurance coverage, the lender or servicer 
shall— 
‘‘(A) terminate the force-placed insurance; 
and 
‘‘(B) refund to the borrower all force- 
placed insurance premiums paid by the bor-
rower during any period during which the bor-
rower’s flood insurance coverage and the force- 
placed flood insurance coverage were each in ef-
fect, and any related fees charged to the bor-
rower with respect to the force-placed insurance 
during such period. 
‘‘(4) SUFFICIENCY OF DEMONSTRATION.—For 
purposes of confirming a borrower’s existing flood 
insurance coverage, a lender or servicer for a loan 
shall accept from the borrower an insurance policy 
declarations page that includes the existing flood in-
surance policy number and the identity of, and con-
tact information for, the insurance company or 
agent.’’. 
(c) USE OF PRIVATE INSURANCE TO SATISFY MAN-
DATORY PURCHASE REQUIREMENT.—Section 102(b) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(b)) is amended— 
(1) in paragraph (1)— 
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(A) by striking ‘‘lending institutions not to 
make’’ and inserting ‘‘lending institutions— 
‘‘(A) not to make’’; 
(B) in subparagraph (A), as designated by 
subparagraph (A) of this paragraph, by striking 
‘‘less.’’ and inserting ‘‘less; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(B) to accept private flood insurance as 
satisfaction of the flood insurance coverage re-
quirement under subparagraph (A) if the cov-
erage provided by such private flood insurance 
meets the requirements for coverage under such 
subparagraph.’’; 
(2) in paragraph (2), by inserting after ‘‘pro-
vided in paragraph (1).’’ the following new sentence: 
‘‘Each Federal agency lender shall accept private 
flood insurance as satisfaction of the flood insurance 
coverage requirement under the preceding sentence 
if the flood insurance coverage provided by such pri-
vate flood insurance meets the requirements for cov-
erage under such sentence.’’; 
(3) in paragraph (3), in the matter following 
subparagraph (B), by adding at the end the fol-
lowing new sentence: ‘‘The Federal National Mort-
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gage Association and the Federal Home Loan Mort-
gage Corporation shall accept private flood insurance 
as satisfaction of the flood insurance coverage re-
quirement under the preceding sentence if the flood 
insurance coverage provided by such private flood in-
surance meets the requirements for coverage under 
such sentence.’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.— 
In this subsection, the term ‘private flood insurance’ 
means a contract for flood insurance coverage al-
lowed for sale under the laws of any State.’’. 
SEC. 3004. REFORMS OF COVERAGE TERMS. 
(a) MINIMUM DEDUCTIBLES FOR CLAIMS.—Section 
1312 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4019) is amended— 
(1) by striking ‘‘The Director is’’ and inserting 
the following: ‘‘(a) IN GENERAL.—The Adminis-
trator is’’; and 
(2) by adding at the end the following: 
‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 
‘‘(1) SUBSIDIZED RATE PROPERTIES.—For any 
structure that is covered by flood insurance under 
this title, and for which the chargeable rate for such 
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coverage is less than the applicable estimated risk 
premium rate under section 1307(a)(1) for the area 
(or subdivision thereof) in which such structure is 
located, the minimum annual deductible for damage 
to or loss of such structure shall be $2,000. 
‘‘(2) ACTUARIAL RATE PROPERTIES.—For any 
structure that is covered by flood insurance under 
this title, for which the chargeable rate for such cov-
erage is not less than the applicable estimated risk 
premium rate under section 1307(a)(1) for the area 
(or subdivision thereof) in which such structure is 
located, the minimum annual deductible for damage 
to or loss of such structure shall be $1,000.’’. 
(b) CLARIFICATION OF RESIDENTIAL AND COMMER-
CIAL COVERAGE LIMITS.—Section 1306(b) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) 
is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘in the case of any residen-
tial property’’ and inserting ‘‘in the case of any 
residential building designed for the occupancy 
of from one to four families’’; and 
(B) by striking ‘‘shall be made available to 
every insured upon renewal and every applicant 
for insurance so as to enable such insured or 
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applicant to receive coverage up to a total 
amount (including such limits specified in para-
graph (1)(A)(i)) of $250,000’’ and inserting 
‘‘shall be made available, with respect to any 
single such building, up to an aggregate liability 
(including such limits specified in paragraph 
(1)(A)(i)) of $250,000’’; and 
(2) in paragraph (4)— 
(A) by striking ‘‘in the case of any nonresi-
dential property, including churches,’’ and in-
serting ‘‘in the case of any nonresidential build-
ing, including a church,’’; and 
(B) by striking ‘‘shall be made available to 
every insured upon renewal and every applicant 
for insurance, in respect to any single structure, 
up to a total amount (including such limit spec-
ified in subparagraph (B) or (C) of paragraph 
(1), as applicable) of $500,000 for each struc-
ture and $500,000 for any contents related to 
each structure’’ and inserting ‘‘shall be made 
available with respect to any single such build-
ing, up to an aggregate liability (including such 
limits specified in subparagraph (B) or (C) of 
paragraph (1), as applicable) of $500,000, and 
coverage shall be made available up to a total 
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of $500,000 aggregate liability for contents 
owned by the building owner and $500,000 ag-
gregate liability for each unit within the build-
ing for contents owned by the tenant’’. 
(c) INDEXING OF MAXIMUM COVERAGE LIMITS.— 
Subsection (b) of section 1306 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5), by striking the period at 
the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (5) as para-
graph (7); and 
(4) by adding at the end the following new 
paragraph: 
‘‘(8) each of the dollar amount limitations 
under paragraphs (2), (3), (4), (5), and (6) shall be 
adjusted effective on the date of the enactment of 
the Flood Insurance Reform Act of 2011, such ad-
justments shall be calculated using the percentage 
change, over the period beginning on September 30, 
1994, and ending on such date of enactment, in 
such inflationary index as the Administrator shall, 
by regulation, specify, and the dollar amount of such 
adjustment shall be rounded to the next lower dollar; 
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and the Administrator shall cause to be published in 
the Federal Register the adjustments under this 
paragraph to such dollar amount limitations; except 
that in the case of coverage for a property that is 
made available, pursuant to this paragraph, in an 
amount that exceeds the limitation otherwise appli-
cable to such coverage as specified in paragraph (2), 
(3), (4), (5), or (6), the total of such coverage shall 
be made available only at chargeable rates that are 
not less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1).’’. 
(d) OPTIONAL COVERAGE FOR LOSS OF USE OF PER-
SONAL RESIDENCE AND BUSINESS INTERRUPTION.—Sub-
section (b) of section 1306 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(b)), as amended by 
the preceding provisions of this section, is further amend-
ed by inserting after paragraph (4) the following new 
paragraphs: 
‘‘(5) the Administrator may provide that, in the 
case of any residential property, each renewal or new 
contract for flood insurance coverage may provide 
not more than $5,000 aggregate liability per dwell-
ing unit for any necessary increases in living ex-
penses incurred by the insured when losses from a 
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flood make the residence unfit to live in, except 
that— 
‘‘(A) purchase of such coverage shall be at 
the option of the insured; 
‘‘(B) any such coverage shall be made 
available only at chargeable rates that are not 
less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1); and 
‘‘(C) the Administrator may make such 
coverage available only if the Administrator 
makes a determination and causes notice of 
such determination to be published in the Fed-
eral Register that— 
‘‘(i) a competitive private insurance 
market for such coverage does not exist; 
and 
‘‘(ii) the national flood insurance pro-
gram has the capacity to make such cov-
erage available without borrowing funds 
from the Secretary of the Treasury under 
section 1309 or otherwise; 
‘‘(6) the Administrator may provide that, in the 
case of any commercial property or other residential 
property, including multifamily rental property, cov-
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erage for losses resulting from any partial or total 
interruption of the insured’s business caused by 
damage to, or loss of, such property from a flood 
may be made available to every insured upon re-
newal and every applicant, up to a total amount of 
$20,000 per property, except that— 
‘‘(A) purchase of such coverage shall be at 
the option of the insured; 
‘‘(B) any such coverage shall be made 
available only at chargeable rates that are not 
less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1); and 
‘‘(C) the Administrator may make such 
coverage available only if the Administrator 
makes a determination and causes notice of 
such determination to be published in the Fed-
eral Register that— 
‘‘(i) a competitive private insurance 
market for such coverage does not exist; 
and 
‘‘(ii) the national flood insurance pro-
gram has the capacity to make such cov-
erage available without borrowing funds 
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from the Secretary of the Treasury under 
section 1309 or otherwise;’’. 
(e) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
RESIDENTIAL PROPERTIES.—Section 1306 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4013) is 
amended by adding at the end the following new sub-
section: 
‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
RESIDENTIAL PROPERTIES.— 
‘‘(1) AUTHORITY.—In addition to any other 
terms and conditions under subsection (a), such reg-
ulations shall provide that, in the case of any resi-
dential property, premiums for flood insurance cov-
erage made available under this title for such prop-
erty may be paid in installments. 
‘‘(2) LIMITATIONS.—In implementing the au-
thority under paragraph (1), the Administrator may 
establish increased chargeable premium rates and 
surcharges, and deny coverage and establish such 
other sanctions, as the Administrator considers nec-
essary to ensure that insureds purchase, pay for, 
and maintain coverage for the full term of a contract 
for flood insurance coverage or to prevent insureds 
from purchasing coverage only for periods during a 
year when risk of flooding is comparatively higher or 
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canceling coverage for periods when such risk is 
comparatively lower.’’. 
(f) EFFECTIVE DATE OF POLICIES COVERING PROP-
ERTIES AFFECTED
BY FLOODS
IN PROGRESS.—Para-
graph (1) of section 1306(c) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(c)) is amended by add-
ing after the period at the end the following: ‘‘With respect 
to any flood that has commenced or is in progress before 
the expiration of such 30-day period, such flood insurance 
coverage for a property shall take effect upon the expira-
tion of such 30-day period and shall cover damage to such 
property occurring after the expiration of such period that 
results from such flood, but only if the property has not 
suffered damage or loss as a result of such flood before 
the expiration of such 30-day period.’’. 
SEC. 3005. REFORMS OF PREMIUM RATES. 
(a) INCREASE IN ANNUAL LIMITATION ON PREMIUM 
INCREASES.—Section 1308(e) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4015(e)) is amended by 
striking ‘‘10 percent’’ and inserting ‘‘20 percent’’. 
(b) PHASE-IN OF RATES FOR CERTAIN PROPERTIES 
IN NEWLY MAPPED AREAS.— 
(1) IN
GENERAL.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended— 
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(A) in subsection (a), in the matter pre-
ceding paragraph (1), by inserting ‘‘or notice’’ 
after ‘‘prescribe by regulation’’; 
(B) in subsection (c), by inserting ‘‘and 
subsection (g)’’ before the first comma; and 
(C) by adding at the end the following new 
subsection: 
‘‘(g) 5-YEAR
PHASE-IN
OF
FLOOD
INSURANCE 
RATES FOR CERTAIN PROPERTIES IN NEWLY MAPPED 
AREAS.— 
‘‘(1) 
5-YEAR
PHASE-IN
PERIOD.—Notwith-
standing subsection (c) or any other provision of law 
relating to chargeable risk premium rates for flood 
insurance coverage under this title, in the case of 
any area that was not previously designated as an 
area having special flood hazards and that, pursuant 
to any issuance, revision, updating, or other change 
in flood insurance maps, becomes designated as such 
an area, during the 5-year period that begins, except 
as provided in paragraph (2), upon the date that 
such maps, as issued, revised, updated, or otherwise 
changed, become effective, the chargeable premium 
rate for flood insurance under this title with respect 
to any covered property that is located within such 
area shall be the rate described in paragraph (3). 
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‘‘(2) APPLICABILITY TO PREFERRED RISK RATE 
AREAS.—In the case of any area described in para-
graph (1) that consists of or includes an area that, 
as of date of the effectiveness of the flood insurance 
maps for such area referred to in paragraph (1) as 
so issued, revised, updated, or changed, is eligible 
for any reason for preferred risk rate method pre-
miums for flood insurance coverage and was eligible 
for such premiums as of the enactment of the Flood 
Insurance Reform Act of 2011, the 5-year period re-
ferred to in paragraph (1) for such area eligible for 
preferred risk rate method premiums shall begin 
upon the expiration of the period during which such 
area is eligible for such preferred risk rate method 
premiums. 
‘‘(3) PHASE-IN OF FULL ACTUARIAL RATES.— 
With respect to any area described in paragraph (1), 
the chargeable risk premium rate for flood insurance 
under this title for a covered property that is located 
in such area shall be— 
‘‘(A) for the first year of the 5-year period 
referred to in paragraph (1), the greater of— 
‘‘(i) 20 percent of the chargeable risk 
premium rate otherwise applicable under 
this title to the property; and 
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‘‘(ii) in the case of any property that, 
as of the beginning of such first year, is el-
igible for preferred risk rate method pre-
miums for flood insurance coverage, such 
preferred risk rate method premium for 
the property; 
‘‘(B) for the second year of such 5-year pe-
riod, 40 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(C) for the third year of such 5-year pe-
riod, 60 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(D) for the fourth year of such 5-year pe-
riod, 80 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; and 
‘‘(E) for the fifth year of such 5-year pe-
riod, 100 percent of the chargeable risk pre-
mium rate otherwise applicable under this title 
to the property. 
‘‘(4) COVERED PROPERTIES.—For purposes of 
the subsection, the term ‘covered property’ means 
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any residential property occupied by its owner or a 
bona fide tenant as a primary residence.’’. 
(2) REGULATION
OR
NOTICE.—The Adminis-
trator of the Federal Emergency Management Agen-
cy shall issue an interim final rule or notice to im-
plement this subsection and the amendments made 
by this subsection as soon as practicable after the 
date of the enactment of this Act. 
(c) PHASE-IN OF ACTUARIAL RATES FOR CERTAIN 
PROPERTIES.— 
(1) IN GENERAL.—Section 1308(c) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(c)) is amended— 
(A) by redesignating paragraph (2) as 
paragraph (7); and 
(B) by inserting after paragraph (1) the 
following new paragraphs: 
‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi-
dential property. 
‘‘(3) SECOND HOMES AND VACATION HOMES.— 
Any residential property that is not the primary res-
idence of any individual. 
‘‘(4) HOMES SOLD TO NEW OWNERS.—Any sin-
gle family property that— 
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‘‘(A) has been constructed or substantially 
improved and for which such construction or 
improvement was started, as determined by the 
Administrator, before December 31, 1974, or 
before the effective date of the initial rate map 
published by the Administrator under para-
graph (2) of section 1360(a) for the area in 
which such property is located, whichever is 
later; and 
‘‘(B) is purchased after the effective date 
of 
this 
paragraph, 
pursuant 
to 
section 
3005(c)(3)(A) of the Flood Insurance Reform 
Act of 2011. 
‘‘(5) HOMES
DAMAGED
OR
IMPROVED.—Any 
property that, on or after the date of the enactment 
of the Flood Insurance Reform Act of 2011, has ex-
perienced or sustained— 
‘‘(A) substantial flood damage exceeding 
50 percent of the fair market value of such 
property; or 
‘‘(B) substantial improvement exceeding 
30 percent of the fair market value of such 
property. 
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‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se-
vere repetitive loss property (as such term is defined 
in section 1366(j)).’’. 
(2) TECHNICAL AMENDMENTS.—Section 1308 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended— 
(A) in subsection (c)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘the limitations provided 
under paragraphs (1) and (2)’’ and insert-
ing ‘‘subsection (e)’’; and 
(ii) in paragraph (1), by striking ‘‘, 
except’’ and all that follows through ‘‘sub-
section (e)’’; and 
(B) in subsection (e), by striking ‘‘para-
graph (2) or (3)’’ and inserting ‘‘paragraph 
(7)’’. 
(3) EFFECTIVE DATE AND TRANSITION.— 
(A) EFFECTIVE DATE.—The amendments 
made by paragraphs (1) and (2) shall apply be-
ginning upon the expiration of the 12-month 
period that begins on the date of the enactment 
of this Act, except as provided in subparagraph 
(B) of this paragraph. 
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(B) TRANSITION
FOR
PROPERTIES
COV-
ERED BY FLOOD INSURANCE UPON EFFECTIVE 
DATE.— 
(i) INCREASE OF RATES OVER TIME.— 
In the case of any property described in 
paragraph (2), (3), (4), (5), or (6) of sec-
tion 1308(c) of the National Flood Insur-
ance Act of 1968, as amended by para-
graph (1) of this subsection, that, as of the 
effective date under subparagraph (A) of 
this paragraph, is covered under a policy 
for flood insurance made available under 
the national flood insurance program for 
which the chargeable premium rates are 
less than the applicable estimated risk pre-
mium rate under section 1307(a)(1) of 
such Act for the area in which the prop-
erty is located, the Administrator of the 
Federal Emergency Management Agency 
shall increase the chargeable premium 
rates for such property over time to such 
applicable estimated risk premium rate 
under section 1307(a)(1). 
(ii) AMOUNT OF ANNUAL INCREASE.— 
Such increase shall be made by increasing 
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the chargeable premium rates for the prop-
erty (after application of any increase in 
the premium rates otherwise applicable to 
such property), once during the 12-month 
period that begins upon the effective date 
under subparagraph (A) of this paragraph 
and once every 12 months thereafter until 
such increase is accomplished, by 20 per-
cent (or such lesser amount as may be nec-
essary so that the chargeable rate does not 
exceed such applicable estimated risk pre-
mium rate or to comply with clause (iii)). 
(iii) PROPERTIES SUBJECT TO PHASE- 
IN AND ANNUAL INCREASES.—In the case 
of any pre-FIRM property (as such term is 
defined in section 578(b) of the National 
Flood Insurance Reform Act of 1974), the 
aggregate increase, during any 12-month 
period, in the chargeable premium rate for 
the property that is attributable to this 
subparagraph or to an increase described 
in section 1308(e) of the National Flood 
Insurance Act of 1968 may not exceed 20 
percent. 
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(iv) FULL
ACTUARIAL
RATES.—The 
provisions of paragraphs (2), (3), (4), (5), 
and (6) of such section 1308(c) shall apply 
to such a property upon the accomplish-
ment of the increase under this subpara-
graph and thereafter. 
(d) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES TO LAPSED POLICIES.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4015), as 
amended by the preceding provisions of this title, is fur-
ther amended— 
(1) in subsection (e), by inserting ‘‘or sub-
section (h)’’ after ‘‘subsection (c)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES
TO
LAPSED
POLICIES.—Notwithstanding any 
other provision of law relating to chargeable risk premium 
rates for flood insurance coverage under this title, the Ad-
ministrator shall not provide flood insurance coverage 
under this title for any property for which a policy for 
such coverage for the property has previously lapsed in 
coverage as a result of the deliberate choice of the holder 
of such policy, at a rate less than the applicable estimated 
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risk premium rates for the area (or subdivision thereof) 
in which such property is located.’’. 
(e) RECOGNITION OF STATE AND LOCAL FUNDING 
FOR CONSTRUCTION, RECONSTRUCTION, AND IMPROVE-
MENT OF FLOOD PROTECTION SYSTEMS IN DETERMINA-
TION OF RATES.— 
(1) IN
GENERAL.—Section 1307 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4014) is amended— 
(A) in subsection (e)— 
(i) in the first sentence, by striking 
‘‘construction of a flood protection system’’ 
and inserting ‘‘construction, reconstruc-
tion, or improvement of a flood protection 
system (without respect to the level of Fed-
eral investment or participation)’’; and 
(ii) in the second sentence— 
(I) by striking ‘‘construction of a 
flood protection system’’ and inserting 
‘‘construction, reconstruction, or im-
provement of a flood protection sys-
tem’’; and 
(II) by inserting ‘‘based on the 
present value of the completed sys-
tem’’ after ‘‘has been expended’’; and 
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(B) in subsection (f)— 
(i) in the first sentence in the matter 
preceding paragraph (1), by inserting 
‘‘(without respect to the level of Federal 
investment or participation)’’ before the 
period at the end; 
(ii) in the third sentence in the matter 
preceding paragraph (1), by inserting ‘‘, 
whether coastal or riverine,’’ after ‘‘special 
flood hazard’’; and 
(iii) in paragraph (1), by striking ‘‘a 
Federal agency in consultation with the 
local project sponsor’’ and inserting ‘‘the 
entity or entities that own, operate, main-
tain, or repair such system’’. 
(2) REGULATIONS.—The Administrator of the 
Federal Emergency Management Agency shall pro-
mulgate regulations to implement this subsection 
and the amendments made by this subsection as 
soon as practicable, but not more than 18 months 
after the date of the enactment of this Act. Para-
graph (3) may not be construed to annul, alter, af-
fect, authorize any waiver of, or establish any excep-
tion to, the requirement under the preceding sen-
tence. 
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SEC. 3006. TECHNICAL MAPPING ADVISORY COUNCIL. 
(a) ESTABLISHMENT.—There is established a council 
to be known as the Technical Mapping Advisory Council 
(in this section referred to as the ‘‘Council’’). 
(b) MEMBERSHIP.— 
(1) IN
GENERAL.—The Council shall consist 
of— 
(A) the Administrator of the Federal 
Emergency Management Agency (in this section 
referred to as the ‘‘Administrator’’), or the des-
ignee thereof; 
(B) the Director of the United States Geo-
logical Survey of the Department of the Inte-
rior, or the designee thereof; 
(C) the Under Secretary of Commerce for 
Oceans and Atmosphere, or the designee there-
of; 
(D) the commanding officer of the United 
States Army Corps of Engineers, or the des-
ignee thereof; 
(E) the chief of the Natural Resources 
Conservation Service of the Department of Ag-
riculture, or the designee thereof; 
(F) the Director of the United States Fish 
and Wildlife Service of the Department of the 
Interior, or the designee thereof; 
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(G) the Assistant Administrator for Fish-
eries of the National Oceanic and Atmospheric 
Administration of the Department of Com-
merce, or the designee thereof; and 
(H) 14 additional members to be appointed 
by the Administrator of the Federal Emergency 
Management Agency, who shall be— 
(i) an expert in data management; 
(ii) an expert in real estate; 
(iii) an expert in insurance; 
(iv) a member of a recognized regional 
flood and storm water management organi-
zation; 
(v) a representative of a State emer-
gency management agency or association 
or organization for such agencies; 
(vi) a member of a recognized profes-
sional surveying association or organiza-
tion; 
(vii) a member of a recognized profes-
sional mapping association or organization; 
(viii) a member of a recognized pro-
fessional engineering association or organi-
zation; 
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(ix) a member of a recognized profes-
sional association or organization rep-
resenting flood hazard determination firms; 
(x) a representative of State national 
flood insurance coordination offices; 
(xi) representatives of two local gov-
ernments, at least one of whom is a local 
levee flood manager or executive, des-
ignated by the Federal Emergency Man-
agement Agency as Cooperating Technical 
Partners; and 
(xii) representatives of two State gov-
ernments designated by the Federal Emer-
gency Management Agency as Cooperating 
Technical States. 
(2) QUALIFICATIONS.—Members of the Council 
shall be appointed based on their demonstrated 
knowledge and competence regarding surveying, car-
tography, remote sensing, geographic information 
systems, or the technical aspects of preparing and 
using flood insurance rate maps. In appointing 
members under paragraph (1)(H), the Administrator 
shall ensure that the membership of the Council has 
a balance of Federal, State, local, and private mem-
bers, and includes an adequate number of represent-
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atives from the States with coastline on the Gulf of 
Mexico and other States containing areas identified 
by the Administrator of the Federal Emergency 
Management Agency as at high-risk for flooding or 
special flood hazard areas. 
(c) DUTIES.— 
(1) NEW MAPPING STANDARDS.—Not later than 
the expiration of the 12-month period beginning 
upon the date of the enactment of this Act, the 
Council shall develop and submit to the Adminis-
trator and the Congress proposed new mapping 
standards for 100-year flood insurance rate maps 
used under the national flood insurance program 
under the National Flood Insurance Act of 1968. In 
developing such proposed standards the Council 
shall— 
(A) ensure that the flood insurance rate 
maps reflect true risk, including graduated risk 
that better reflects the financial risk to each 
property; such reflection of risk should be at 
the smallest geographic level possible (but not 
necessarily property-by-property) to ensure that 
communities are mapped in a manner that 
takes into consideration different risk levels 
within the community; 
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(B) ensure the most efficient generation, 
display, and distribution of flood risk data, 
models, and maps where practicable through 
dynamic digital environments using spatial 
database technology and the Internet; 
(C) ensure that flood insurance rate maps 
reflect current hydrologic and hydraulic data, 
current land use, and topography, incorporating 
the most current and accurate ground and 
bathymetric elevation data; 
(D) determine the best ways to include in 
such flood insurance rate maps levees, decerti-
fied levees, and areas located below dams, in-
cluding determining a methodology for ensuring 
that decertified levees and other protections are 
included in flood insurance rate maps and their 
corresponding flood zones reflect the level of 
protection conferred; 
(E) consider how to incorporate restored 
wetlands and other natural buffers into flood 
insurance rate maps, which may include wet-
lands, groundwater recharge areas, erosion 
zones, meander belts, endangered species habi-
tat, barrier islands and shoreline buffer fea-
tures, riparian forests, and other features; 
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(F) consider whether to use vertical posi-
tioning (as defined by the Administrator) for 
flood insurance rate maps; 
(G) ensure that flood insurance rate maps 
differentiate between a property that is located 
in a flood zone and a structure located on such 
property that is not at the same risk level for 
flooding as such property due to the elevation 
of the structure; 
(H) ensure that flood insurance rate maps 
take into consideration the best scientific data 
and potential future conditions (including pro-
jections for sea level rise); and 
(I) consider how to incorporate the new 
standards proposed pursuant to this paragraph 
in existing mapping efforts. 
(2) ONGOING DUTIES.—The Council shall, on 
an ongoing basis, review the mapping protocols de-
veloped pursuant to paragraph (1), and make rec-
ommendations to the Administrator when the Coun-
cil determines that mapping protocols should be al-
tered. 
(3) MEETINGS.—In carrying out its duties 
under this section, the Council shall consult with 
stakeholders through at least 4 public meetings an-
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nually, and shall seek input of all stakeholder inter-
ests including State and local representatives, envi-
ronmental and conservation organizations, insurance 
industry representatives, advocacy groups, planning 
organizations, and mapping organizations. 
(d) PROHIBITION ON COMPENSATION.—Members of 
the Council shall receive no additional compensation by 
reason of their service on the Council. 
(e) CHAIRPERSON.—The Administrator shall serve as 
the Chairperson of the Council. 
(f) STAFF.— 
(1) FEMA.—Upon the request of the Council, 
the Administrator may detail, on a nonreimbursable 
basis, personnel of the Federal Emergency Manage-
ment Agency to assist the Council in carrying out its 
duties. 
(2) OTHER FEDERAL AGENCIES.—Upon request 
of the Council, any other Federal agency that is a 
member of the Council may detail, on a non-reim-
bursable basis, personnel to assist the Council in 
carrying out its duties. 
(g) POWERS.—In carrying out this section, the Coun-
cil may hold hearings, receive evidence and assistance, pro-
vide information, and conduct research, as the Council 
considers appropriate. 
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(h) TERMINATION.—The Council shall terminate 
upon the expiration of the 5-year period beginning on the 
date of the enactment of this Act. 
(i) MORATORIUM ON FLOOD MAP CHANGES.— 
(1) MORATORIUM.—Except as provided in para-
graph (2) and notwithstanding any other provision 
of this title, the National Flood Insurance Act of 
1968, or the Flood Disaster Protection Act of 1973, 
during the period beginning upon the date of the en-
actment of this Act and ending upon the submission 
by the Council to the Administrator and the Con-
gress of the proposed new mapping standards re-
quired under subsection (c)(1), the Administrator 
may not make effective any new or updated rate 
maps for flood insurance coverage under the na-
tional flood insurance program that were not in ef-
fect for such program as of such date of enactment, 
or otherwise revise, update, or change the flood in-
surance rate maps in effect for such program as of 
such date. 
(2) LETTERS OF MAP CHANGE.—During the pe-
riod described in paragraph (1), the Administrator 
may revise, update, and change the flood insurance 
rate maps in effect for the national flood insurance 
program only pursuant to a letter of map change 
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(including a letter of map amendment, letter of map 
revision, and letter of map revision based on fill). 
SEC. 3007. FEMA INCORPORATION OF NEW MAPPING PRO-
TOCOLS. 
(a) NEW RATE MAPPING STANDARDS.—Not later 
than the expiration of the 6-month period beginning upon 
submission by the Technical Mapping Advisory Council 
under section 3006 of the proposed new mapping stand-
ards for flood insurance rate maps used under the national 
flood insurance program developed by the Council pursu-
ant to section 3006(c), the Administrator of the Federal 
Emergency Management Agency (in this section referred 
to as the ‘‘Administrator’’) shall establish new standards 
for such rate maps based on such proposed new standards 
and the recommendations of the Council. 
(b) REQUIREMENTS.—The new standards for flood 
insurance rate maps established by the Administrator pur-
suant to subsection (a) shall— 
(1) delineate and include in any such rate 
maps— 
(A) all areas located within the 100-year 
flood plain; and 
(B) areas subject to graduated and other 
risk levels, to the maximum extent possible; 
(2) ensure that any such rate maps— 
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(A) include levees, including decertified lev-
ees, and the level of protection they confer; 
(B) reflect current land use and topog-
raphy and incorporate the most current and ac-
curate ground level data; 
(C) take into consideration the impacts 
and use of fill and the flood risks associated 
with altered hydrology; 
(D) differentiate between a property that 
is located in a flood zone and a structure lo-
cated on such property that is not at the same 
risk level for flooding as such property due to 
the elevation of the structure; 
(E) identify and incorporate natural fea-
tures and their associated flood protection bene-
fits into mapping and rates; and 
(F) identify, analyze, and incorporate the 
impact of significant changes to building and 
development throughout any river or costal 
water system, including all tributaries, which 
may impact flooding in areas downstream; and 
(3) provide that such rate maps are developed 
on a watershed basis. 
(c) REPORT.—If, in establishing new standards for 
flood insurance rate maps pursuant to subsection (a) of 
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this section, the Administrator does not implement all of 
the recommendations of the Council made under the pro-
posed new mapping standards developed by the Council 
pursuant to section 3006(c), upon establishment of the 
new standards the Administrator shall submit a report to 
the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate specifying which such rec-
ommendations were not adopted and explaining the rea-
sons such recommendations were not adopted. 
(d) IMPLEMENTATION.—The Administrator shall, not 
later than the expiration of the 6-month period beginning 
upon establishment of the new standards for flood insur-
ance rate maps pursuant to subsection (a) of this section, 
commence use of the new standards and updating of flood 
insurance rate maps in accordance with the new stand-
ards. Not later than the expiration of the 10-year period 
beginning upon the establishment of such new standards, 
the Administrator shall complete updating of all flood in-
surance rate maps in accordance with the new standards, 
subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts. 
(e) TEMPORARY SUSPENSION OF MANDATORY PUR-
CHASE REQUIREMENT FOR CERTAIN PROPERTIES.— 
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(1) 
SUBMISSION
OF
ELEVATION
CERTIFI-
CATE.—Subject to paragraphs (2) and (3) of this 
subsection, subsections (a), (b), and (e) of section 
102 of the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4012a), and section 202(a) of such Act, 
shall not apply to a property located in an area des-
ignated as having a special flood hazard if the owner 
of such property submits to the Administrator an 
elevation certificate for such property showing that 
the lowest level of the primary residence on such 
property is at an elevation that is at least three feet 
higher than the elevation of the 100-year flood plain. 
(2) REVIEW OF CERTIFICATE.—The Adminis-
trator shall accept as conclusive each elevation cer-
tificate submitted under paragraph (1) unless the 
Administrator conducts a subsequent elevation sur-
vey and determines that the lowest level of the pri-
mary residence on the property in question is not at 
an elevation that is at least three feet higher than 
the elevation of the 100-year flood plain. The Ad-
ministrator shall provide any such subsequent ele-
vation survey to the owner of such property. 
(3) DETERMINATIONS
FOR
PROPERTIES
ON 
BORDERS OF SPECIAL FLOOD HAZARD AREAS.— 
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(A) EXPEDITED DETERMINATION.—In the 
case of any survey for a property submitted to 
the Administrator pursuant to paragraph (1) 
showing that a portion of the property is lo-
cated within an area having special flood haz-
ards and that a structure located on the prop-
erty is not located within such area having spe-
cial flood hazards, the Administrator shall expe-
ditiously process any request made by an owner 
of the property for a determination pursuant to 
paragraph (2) or a determination of whether 
the structure is located within the area having 
special flood hazards. 
(B) PROHIBITION OF FEE.—If the Admin-
istrator determines pursuant to subparagraph 
(A) that the structure on the property is not lo-
cated within the area having special flood haz-
ards, the Administrator shall not charge a fee 
for reviewing the flood hazard data and shall 
not require the owner to provide any additional 
elevation data. 
(C) SIMPLIFICATION
OF
REVIEW
PROC-
ESS.—The Administrator shall collaborate with 
private sector flood insurers to simplify the re-
view process for properties described in sub-
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paragraph (A) and to ensure that the review 
process provides for accurate determinations. 
(4) TERMINATION OF AUTHORITY.—This sub-
section shall cease to apply to a property on the date 
on which the Administrator updates the flood insur-
ance rate map that applies to such property in ac-
cordance with the requirements of subsection (d). 
SEC. 3008. TREATMENT OF LEVEES. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101) is amended by adding at the end 
the following new subsection: 
‘‘(k) TREATMENT OF LEVEES.—The Administrator 
may not issue flood insurance maps, or make effective up-
dated flood insurance maps, that omit or disregard the 
actual protection afforded by an existing levee, floodwall, 
pump or other flood protection feature, regardless of the 
accreditation status of such feature.’’. 
SEC. 3009. PRIVATIZATION INITIATIVES. 
(a) FEMA AND GAO REPORTS.—Not later than the 
expiration of the 18-month period beginning on the date 
of the enactment of this Act, the Administrator of the 
Federal Emergency Management Agency and the Comp-
troller General of the United States shall each conduct a 
separate study to assess a broad range of options, meth-
ods, and strategies for privatizing the national flood insur-
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HR 3630 PCS
ance program and shall each submit a report to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate with recommendations for the best 
manner to accomplish such privatization. 
(b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 
(1) AUTHORITY.—The Administrator of the 
Federal Emergency Management Agency may carry 
out such private risk-management initiatives under 
the national flood insurance program as the Admin-
istrator considers appropriate to determine the ca-
pacity of private insurers, reinsurers, and financial 
markets to assist communities, on a voluntary basis 
only, in managing the full range of financial risks 
associated with flooding. 
(2) ASSESSMENT.—Not later than the expira-
tion of the 12-month period beginning on the date 
of the enactment of this Act, the Administrator shall 
assess the capacity of the private reinsurance, cap-
ital, and financial markets by seeking proposals to 
assume a portion of the program’s insurance risk 
and submit to the Congress a report describing the 
response to such request for proposals and the re-
sults of such assessment. 
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(3) PROTOCOL FOR RELEASE OF DATA.—The 
Administrator shall develop a protocol to provide for 
the release of data sufficient to conduct the assess-
ment required under paragraph (2). 
(c) REINSURANCE.—The National Flood Insurance 
Act of 1968 is amended— 
(1) 
in 
section 
1331(a)(2) 
(42 
U.S.C. 
4051(a)(2)), by inserting ‘‘, including as reinsurance 
of insurance coverage provided by the flood insur-
ance program’’ before ‘‘, on such terms’’; 
(2) 
in 
section 
1332(c)(2) 
(42 
U.S.C. 
4052(c)(2)), by inserting ‘‘or reinsurance’’ after 
‘‘flood insurance coverage’’; 
(3) in section 1335(a) (42 U.S.C. 4055(a))— 
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) The Administrator is authorized to secure rein-
surance coverage of coverage provided by the flood insur-
ance program from private market insurance, reinsurance, 
and capital market sources at rates and on terms deter-
mined by the Administrator to be reasonable and appro-
priate in an amount sufficient to maintain the ability of 
the program to pay claims and that minimizes the likeli-
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hood that the program will utilize the borrowing authority 
provided under section 1309.’’; 
(4) in section 1346(a) (12 U.S.C. 4082(a))— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘, or for purposes of securing rein-
surance of insurance coverage provided by the 
program,’’ before ‘‘of any or all of’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘estimating’’ and in-
serting ‘‘Estimating’’; and 
(ii) by striking the semicolon at the 
end and inserting a period; 
(C) in paragraph (2)— 
(i) by striking ‘‘receiving’’ and insert-
ing ‘‘Receiving’’; and 
(ii) by striking the semicolon at the 
end and inserting a period; 
(D) in paragraph (3)— 
(i) by striking ‘‘making’’ and inserting 
‘‘Making’’; and 
(ii) by striking ‘‘; and’’ and inserting 
a period; 
(E) in paragraph (4)— 
(i) by striking ‘‘otherwise’’ and insert-
ing ‘‘Otherwise’’; and 
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(ii) by redesignating such paragraph 
as paragraph (5); and 
(F) by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) Placing reinsurance coverage on insurance 
provided by such program.’’; and 
(5) 
in 
section 
1370(a)(3) 
(42 
U.S.C. 
4121(a)(3)), by inserting before the semicolon at the 
end the following: ‘‘, is subject to the reporting re-
quirements of the Securities Exchange Act of 1934, 
pursuant to section 13(a) or 15(d) of such Act (15 
U.S.C. 78m(a), 78o(d)), or is authorized by the Ad-
ministrator to assume reinsurance on risks insured 
by the flood insurance program’’. 
(d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 
(1) ASSESSMENT.—Not later than September 
30 of each year, the Administrator of the Federal 
Emergency Management Agency shall conduct an 
assessment of the claims-paying ability of the na-
tional flood insurance program, including the pro-
gram’s utilization of private sector reinsurance and 
reinsurance equivalents, with and without reliance 
on borrowing authority under section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4016). In conducting the assessment, the Adminis-
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trator shall take into consideration regional con-
centrations of coverage written by the program, peak 
flood zones, and relevant mitigation measures. 
(2) REPORT.—The Administrator shall submit 
a report to the Congress of the results of each such 
assessment, and make such report available to the 
public, not later than 30 days after completion of 
the assessment. 
SEC. 3010. FEMA ANNUAL REPORT ON INSURANCE PRO-
GRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘REPORT 
TO THE PRESIDENT’’ and inserting ‘‘ANNUAL RE-
PORT TO CONGRESS’’; 
(2) in subsection (a)— 
(A) by striking ‘‘biennially’’; 
(B) by striking ‘‘the President for submis-
sion to’’; and 
(C) by inserting ‘‘not later than June 30 
of each year’’ before the period at the end; 
(3) in subsection (b), by striking ‘‘biennial’’ and 
inserting ‘‘annual’’; and 
(4) by adding at the end the following new sub-
section: 
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‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 
under this section for each year shall include information 
regarding the financial status of the national flood insur-
ance program under this title, including a description of 
the financial status of the National Flood Insurance Fund 
and current and projected levels of claims, premium re-
ceipts, expenses, and borrowing under the program.’’. 
SEC. 3011. MITIGATION ASSISTANCE. 
(a) MITIGATION
ASSISTANCE
GRANTS.—Section 
1366 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104c) is amended— 
(1) in subsection (a), by striking the last sen-
tence and inserting the following: ‘‘Such financial 
assistance shall be made available— 
‘‘(1) to States and communities in the form of 
grants under this section for carrying out mitigation 
activities; 
‘‘(2) to States and communities in the form of 
grants under this section for carrying out mitigation 
activities that reduce flood damage to severe repet-
itive loss structures; and 
‘‘(3) to property owners in the form of direct 
grants under this section for carrying out mitigation 
activities that reduce flood damage to individual 
structures for which 2 or more claim payments for 
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losses have been made under flood insurance cov-
erage under this title if the Administrator, after con-
sultation with the State and community, determines 
that neither the State nor community in which such 
a structure is located has the capacity to manage 
such grants.’’; 
(2) by striking subsection (b); 
(3) in subsection (c)— 
(A) by striking ‘‘flood risk’’ and inserting 
‘‘multi-hazard’’; 
(B) 
by 
striking 
‘‘provides 
protection 
against’’ and inserting ‘‘examines reduction of’’; 
and 
(C) by redesignating such subsection as 
subsection (b); 
(4) by striking subsection (d); 
(5) in subsection (e)— 
(A) in paragraph (1), by striking the para-
graph designation and all that follows through 
the end of the first sentence and inserting the 
following: 
‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP-
PROVED
MITIGATION
PLAN.—Amounts 
provided 
under this section may be used only for mitigation 
activities that are consistent with mitigation plans 
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that are approved by the Administrator and identi-
fied under subparagraph (4).’’; 
(B) by striking paragraphs (2), (3), and 
(4) and inserting the following new paragraphs: 
‘‘(2) REQUIREMENTS
OF
TECHNICAL
FEASI-
BILITY, COST EFFECTIVENESS, AND INTEREST OF 
NFIF.—The Administrator may approve only mitiga-
tion activities that the Administrator determines are 
technically feasible and cost-effective and in the in-
terest of, and represent savings to, the National 
Flood Insurance Fund. In making such determina-
tions, the Administrator shall take into consideration 
recognized benefits that are difficult to quantify. 
‘‘(3) PRIORITY FOR MITIGATION ASSISTANCE.— 
In providing grants under this section for mitigation 
activities, the Administrator shall give priority for 
funding to activities that the Administrator deter-
mines will result in the greatest savings to the Na-
tional Flood Insurance Fund, including activities 
for— 
‘‘(A) severe repetitive loss structures; 
‘‘(B) repetitive loss structures; and 
‘‘(C) other subsets of structures as the Ad-
ministrator may establish.’’; 
(C) in paragraph (5)— 
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(i) by striking all of the matter that 
precedes subparagraph (A) and inserting 
the following: 
‘‘(4) ELIGIBLE
ACTIVITIES.—Eligible ac-
tivities may include—’’; 
(ii) by striking subparagraphs (E) and 
(H); 
(iii) by redesignating subparagraphs 
(D), (F), and (G) as subparagraphs (E), 
(G), and (H); 
(iv) by inserting after subparagraph 
(C) the following new subparagraph: 
‘‘(D) 
elevation, 
relocation, 
and 
floodproofing of utilities (including equipment 
that serve structures);’’; 
(v) by inserting after subparagraph 
(E), as so redesignated by clause (iii) of 
this subparagraph, the following new sub-
paragraph: 
‘‘(F) the development or update of State, 
local, or Indian tribal mitigation plans which 
meet the planning criteria established by the 
Administrator, except that the amount from 
grants under this section that may be used 
under this subparagraph may not exceed 
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$50,000 for any mitigation plan of a State or 
$25,000 for any mitigation plan of a local gov-
ernment or Indian tribe;’’; 
(vi) in subparagraph (H); as so redes-
ignated by clause (iii) of this subpara-
graph, by striking ‘‘and’’ at the end; and 
(vii) by adding at the end the fol-
lowing new subparagraphs: 
‘‘(I) other mitigation activities not de-
scribed in subparagraphs (A) through (G) or 
the regulations issued under subparagraph (H), 
that are described in the mitigation plan of a 
State, community, or Indian tribe; and 
‘‘(J) personnel costs for State staff that 
provide technical assistance to communities to 
identify eligible activities, to develop grant ap-
plications, and to implement grants awarded 
under this section, not to exceed $50,000 per 
State in any Federal fiscal year, so long as the 
State applied for and was awarded at least 
$1,000,000 in grants available under this sec-
tion in the prior Federal fiscal year; the re-
quirements of subsections (d)(1) and (d)(2) 
shall not apply to the activity under this sub-
paragraph.’’; 
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(D) by adding at the end the following new 
paragraph: 
‘‘(6) ELIGIBILITY
OF
DEMOLITION
AND
RE-
BUILDING
OF
PROPERTIES.—The Administrator 
shall consider as an eligible activity the demolition 
and rebuilding of properties to at least base flood 
elevation or greater, if required by the Administrator 
or if required by any State regulation or local ordi-
nance, and in accordance with criteria established by 
the Administrator.’’; and 
(E) by redesignating such subsection as 
subsection (c); 
(6) by striking subsections (f), (g), and (h) and 
inserting the following new subsection: 
‘‘(d) MATCHING REQUIREMENT.—The Administrator 
may provide grants for eligible mitigation activities as fol-
lows: 
‘‘(1) SEVERE REPETITIVE LOSS STRUCTURES.— 
In the case of mitigation activities to severe repet-
itive loss structures, in an amount up to 100 percent 
of all eligible costs. 
‘‘(2) REPETITIVE LOSS STRUCTURES.—In the 
case of mitigation activities to repetitive loss struc-
tures, in an amount up to 90 percent of all eligible 
costs. 
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‘‘(3) OTHER MITIGATION ACTIVITIES.—In the 
case of all other mitigation activities, in an amount 
up to 75 percent of all eligible costs.’’; 
(7) in subsection (i)— 
(A) in paragraph (2)— 
(i) by striking ‘‘certified under sub-
section (g)’’ and inserting ‘‘required under 
subsection (d)’’; and 
(ii) by striking ‘‘3 times the amount’’ 
and inserting ‘‘the amount’’; and 
(B) by redesignating such subsection as 
subsection (e); 
(8) in subsection (j)— 
(A) in paragraph (1), by striking ‘‘Riegle 
Community Development and Regulatory Im-
provement Act of 1994’’ and inserting ‘‘Flood 
Insurance Reform Act of 2011’’; 
(B) by redesignating such subsection as 
subsection (f); and 
(9) by striking subsections (k) and (m) and in-
serting the following new subsections: 
‘‘(g) FAILURE TO MAKE GRANT AWARD WITHIN 5 
YEARS.—For any application for a grant under this sec-
tion for which the Administrator fails to make a grant 
award within 5 years of the date of application, the grant 
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application shall be considered to be denied and any fund-
ing amounts allocated for such grant applications shall re-
main in the National Flood Mitigation Fund under section 
1367 of this title and shall be made available for grants 
under this section. 
‘‘(h) LIMITATION ON FUNDING FOR MITIGATION AC-
TIVITIES FOR SEVERE REPETITIVE LOSS STRUCTURES.— 
The amount used pursuant to section 1310(a)(8) in any 
fiscal year may not exceed $40,000,000 and shall remain 
available until expended. 
‘‘(i) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) 
COMMUNITY.—The 
term 
‘community’ 
means— 
‘‘(A) a political subdivision that— 
‘‘(i) has zoning and building code ju-
risdiction over a particular area having 
special flood hazards, and 
‘‘(ii) is participating in the national 
flood insurance program; or 
‘‘(B) a political subdivision of a State, or 
other authority, that is designated by political 
subdivisions, all of which meet the requirements 
of subparagraph (A), to administer grants for 
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‘‘(e) CONTINUED AVAILABILITY
AND REALLOCA-
TION.—Any amounts made available pursuant to subpara-
graph (A), (B), or (C) of subsection (b)(1) that are not 
used in any fiscal year shall continue to be available for 
the purposes specified in such subparagraph of subsection 
(b)(1) pursuant to which such amounts were made avail-
able, unless the Administrator determines that realloca-
tion of such unused amounts to meet demonstrated need 
for other mitigation activities under section 1366 is in the 
best interest of the National Flood Insurance Fund.’’. 
(f) INCREASED COST OF COMPLIANCE COVERAGE.— 
Section 1304(b)(4) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011(b)(4)) is amended— 
(1) by striking subparagraph (B); and 
(2) by redesignating subparagraphs (C), (D), 
and (E) as subparagraphs (B), (C), and (D), respec-
tively. 
SEC. 3012. NOTIFICATION TO HOMEOWNERS REGARDING 
MANDATORY PURCHASE REQUIREMENT AP-
PLICABILITY AND RATE PHASE-INS. 
Section 201 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4105) is amended by adding at the end 
the following new subsection: 
‘‘(f) ANNUAL NOTIFICATION.—The Administrator, in 
consultation with affected communities, shall establish and 
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carry out a plan to notify residents of areas having special 
flood hazards, on an annual basis— 
‘‘(1) that they reside in such an area; 
‘‘(2) of the geographical boundaries of such 
area; 
‘‘(3) of whether section 1308(g) of the National 
Flood Insurance Act of 1968 applies to properties 
within such area; 
‘‘(4) of the provisions of section 102 requiring 
purchase of flood insurance coverage for properties 
located in such an area, including the date on which 
such provisions apply with respect to such area, tak-
ing into consideration section 102(i); and 
‘‘(5) of a general estimate of what similar 
homeowners in similar areas typically pay for flood 
insurance coverage, taking into consideration section 
1308(g) of the National Flood Insurance Act of 
1968.’’. 
SEC. 3013. NOTIFICATION TO MEMBERS OF CONGRESS OF 
FLOOD MAP REVISIONS AND UPDATES. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this title, is further amended by adding at the 
end the following new subsection: 
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‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF 
MAP MODERNIZATION.—Upon any revision or update of 
any floodplain area or flood-risk zone pursuant to sub-
section (f), any decision pursuant to subsection (f)(1) that 
such revision or update is necessary, any issuance of pre-
liminary maps for such revision or updating, or any other 
significant action relating to any such revision or update, 
the Administrator shall notify the Senators for each State 
affected, and each Member of the House of Representa-
tives for each congressional district affected, by such revi-
sion or update in writing of the action taken.’’. 
SEC. 3014. NOTIFICATION AND APPEAL OF MAP CHANGES; 
NOTIFICATION TO COMMUNITIES OF ESTAB-
LISHMENT OF FLOOD ELEVATIONS. 
Section 1363 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104) is amended by striking the section 
designation and all that follows through the end of sub-
section (a) and inserting the following: 
‘‘SEC. 1363. (a) In establishing projected flood ele-
vations for land use purposes with respect to any commu-
nity pursuant to section 1361, the Director shall first pro-
pose such determinations— 
‘‘(1) by providing the chief executive officer of 
each community affected by the proposed elevations, 
by certified mail, with a return receipt requested, 
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notice of the elevations, including a copy of the maps 
for the elevations for such community and a state-
ment explaining the process under this section to ap-
peal for changes in such elevations; 
‘‘(2) by causing notice of such elevations to be 
published in the Federal Register, which notice shall 
include information sufficient to identify the ele-
vation determinations and the communities affected, 
information explaining how to obtain copies of the 
elevations, and a statement explaining the process 
under this section to appeal for changes in the ele-
vations; 
‘‘(3) by publishing in a prominent local news-
paper the elevations, a description of the appeals 
process for flood determinations, and the mailing ad-
dress and telephone number of a person the owner 
may contact for more information or to initiate an 
appeal; and 
‘‘(4) by providing written notification, by first 
class mail, to each owner of real property affected by 
the proposed elevations of— 
‘‘(A) the status of such property, both 
prior to and after the effective date of the pro-
posed determination, with respect to flood zone 
and flood insurance requirements under this 
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Act and the Flood Disaster Protection Act of 
1973; 
‘‘(B) the process under this section to ap-
peal a flood elevation determination; and 
‘‘(C) the mailing address and phone num-
ber of a person the owner may contact for more 
information or to initiate an appeal.’’. 
SEC. 3015. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1308 (42 U.S.C. 4015) the 
following new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Administrator shall, upon 
entering into a contract for flood insurance coverage under 
this title for any property— 
‘‘(1) provide to the insured sufficient copies of 
the notice developed pursuant to subsection (b); and 
‘‘(2) require the insured to provide a copy of 
the notice, or otherwise provide notification of the 
information under subsection (b) in the manner that 
the manager or landlord deems most appropriate, to 
each such tenant and to each new tenant upon com-
mencement of such a tenancy. 
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‘‘(b) NOTICE.—Notice to a tenant of a property in 
accordance with this subsection is written notice that 
clearly informs a tenant— 
‘‘(1) whether the property is located in an area 
having special flood hazards; 
‘‘(2) that flood insurance coverage is available 
under the national flood insurance program under 
this title for contents of the unit or structure leased 
by the tenant; 
‘‘(3) of the maximum amount of such coverage 
for contents available under this title at that time; 
and 
‘‘(4) of where to obtain information regarding 
how to obtain such coverage, including a telephone 
number, mailing address, and Internet site of the 
Administrator where such information is available.’’. 
SEC. 3016. NOTIFICATION TO POLICY HOLDERS REGARD-
ING DIRECT MANAGEMENT OF POLICY BY 
FEMA. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add-
ing at the end the following new section: 
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‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD-
ING DIRECT MANAGEMENT OF POLICY BY 
FEMA. 
‘‘(a) NOTIFICATION.—Not later than 60 days before 
the date on which a transferred flood insurance policy ex-
pires, and annually thereafter until such time as the Fed-
eral Emergency Management Agency is no longer directly 
administering such policy, the Administrator shall notify 
the holder of such policy that— 
‘‘(1) the Federal Emergency Management 
Agency is directly administering the policy; 
‘‘(2) such holder may purchase flood insurance 
that is directly administered by an insurance com-
pany; and 
‘‘(3) purchasing flood insurance offered under 
the National Flood Insurance Program that is di-
rectly administered by an insurance company will 
not alter the coverage provided or the premiums 
charged to such holder that otherwise would be pro-
vided or charged if the policy was directly adminis-
tered by the Federal Emergency Management Agen-
cy. 
‘‘(b) DEFINITION.—In this section, the term ‘trans-
ferred flood insurance policy’ means a flood insurance pol-
icy that— 
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‘‘(1) was directly administered by an insurance 
company at the time the policy was originally pur-
chased by the policy holder; and 
‘‘(2) at the time of renewal of the policy, direct 
administration of the policy was or will be trans-
ferred to the Federal Emergency Management Agen-
cy.’’. 
SEC. 3017. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 
amended by adding at the end the following new sentence: 
‘‘Each such good faith estimate shall include the following 
conspicuous statements and information: (1) that flood in-
surance coverage for residential real estate is generally 
available under the national flood insurance program 
whether or not the real estate is located in an area having 
special flood hazards and that, to obtain such coverage, 
a home owner or purchaser should contact the national 
flood insurance program; (2) a telephone number and a 
location on the Internet by which a home owner or pur-
chaser can contact the national flood insurance program; 
and (3) that the escrowing of flood insurance payments 
is required for many loans under section 102(d) of the 
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Flood Disaster Protection Act of 1973, and may be a con-
venient and available option with respect to other loans.’’. 
SEC. 3018. REIMBURSEMENT FOR COSTS INCURRED BY 
HOMEOWNERS AND COMMUNITIES OBTAIN-
ING LETTERS OF MAP AMENDMENT OR REVI-
SION. 
(a) IN GENERAL.—Section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101), as amend-
ed by the preceding provisions of this title, is further 
amended by adding at the end the following new sub-
section: 
‘‘(m) REIMBURSEMENT.— 
‘‘(1) 
REQUIREMENT
UPON
BONA
FIDE 
ERROR.—If an owner of any property located in an 
area described in section 102(i)(3) of the Flood Dis-
aster Protection Act of 1973, or a community in 
which such a property is located, obtains a letter of 
map amendment, or a letter of map revision, due to 
a bona fide error on the part of the Administrator 
of the Federal Emergency Management Agency, the 
Administrator shall reimburse such owner, or such 
entity or jurisdiction acting on such owner’s behalf, 
or such community, as applicable, for any reasonable 
costs incurred in obtaining such letter. 
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‘‘(2) REASONABLE COSTS.—The Administrator 
shall, by regulation or notice, determine a reasonable 
amount of costs to be reimbursed under paragraph 
(1), except that such costs shall not include legal or 
attorneys fees. In determining the reasonableness of 
costs, the Administrator shall only consider the ac-
tual costs to the owner or community, as applicable, 
of utilizing the services of an engineer, surveyor, or 
similar services.’’. 
(b) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Administrator of 
the Federal Emergency Management Agency shall issue 
the regulations or notice required under section 
1360(m)(2) of the National Flood Insurance Act of 1968, 
as added by the amendment made by subsection (a) of 
this section. 
SEC. 3019. ENHANCED COMMUNICATION WITH CERTAIN 
COMMUNITIES 
DURING 
MAP 
UPDATING 
PROCESS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this title, is further amended by adding at the 
end the following new subsection: 
‘‘(n) ENHANCED COMMUNICATION WITH CERTAIN 
COMMUNITIES DURING MAP UPDATING PROCESS.—In 
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updating flood insurance maps under this section, the Ad-
ministrator shall communicate with communities located 
in areas where flood insurance rate maps have not been 
updated in 20 years or more and the appropriate State 
emergency agencies to resolve outstanding issues, provide 
technical assistance, and disseminate all necessary infor-
mation to reduce the prevalence of outdated maps in flood- 
prone areas.’’. 
SEC. 3020. NOTIFICATION TO RESIDENTS NEWLY INCLUDED 
IN FLOOD HAZARD AREAS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this title, is further amended by adding at the 
end the following new subsection: 
‘‘(o) NOTIFICATION
TO
RESIDENTS
NEWLY
IN-
CLUDED IN FLOOD HAZARD AREA.—In revising or updat-
ing any areas having special flood hazards, the Adminis-
trator shall provide to each owner of a property to be 
newly included in such a special flood hazard area, at the 
time of issuance of such proposed revised or updated flood 
insurance maps, a copy of the proposed revised or updated 
flood insurance maps together with information regarding 
the appeals process under section 1363 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104).’’. 
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SEC. 3021. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
‘‘In the case of any property that is otherwise in com-
pliance with the coverage and building requirements of the 
national flood insurance program, the presence of an en-
closed swimming pool located at ground level or in the 
space below the lowest floor of a building after November 
30 and before June 1 of any year shall have no effect on 
the terms of coverage or the ability to receive coverage 
for such building under the national flood insurance pro-
gram established pursuant to this title, if the pool is en-
closed with non-supporting breakaway walls.’’. 
SEC. 3022. INFORMATION REGARDING MULTIPLE PERILS 
CLAIMS. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(d) INFORMATION REGARDING MULTIPLE PERILS 
CLAIMS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
if an insured having flood insurance coverage under 
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a policy issued under the program under this title by 
the Administrator or a company, insurer, or entity 
offering flood insurance coverage under such pro-
gram (in this subsection referred to as a ‘partici-
pating company’) has wind or other homeowners 
coverage from any company, insurer, or other entity 
covering property covered by such flood insurance, in 
the case of damage to such property that may have 
been caused by flood or by wind, the Administrator 
and the participating company, upon the request of 
the insured, shall provide to the insured, within 30 
days of such request— 
‘‘(A) a copy of the estimate of structure 
damage; 
‘‘(B) proofs of loss; 
‘‘(C) any expert or engineering reports or 
documents commissioned by or relied upon by 
the Administrator or participating company in 
determining whether the damage was caused by 
flood or any other peril; and 
‘‘(D) the Administrator’s or the partici-
pating company’s final determination on the 
claim. 
‘‘(2) TIMING.—Paragraph (1) shall apply only 
with respect to a request described in such para-
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graph made by an insured after the Administrator 
or the participating company, or both, as applicable, 
have issued a final decision on the flood claim in-
volved and resolution of all appeals with respect to 
such claim.’’. 
SEC. 3023. FEMA AUTHORITY TO REJECT TRANSFER OF 
POLICIES. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(e) FEMA AUTHORITY TO REJECT TRANSFER OF 
POLICIES.—Notwithstanding any other provision of this 
Act, the Administrator may, at the discretion of the Ad-
ministrator, refuse to accept the transfer of the adminis-
tration of policies for coverage under the flood insurance 
program under this title that are written and administered 
by any insurance company or other insurer, or any insur-
ance agent or broker.’’. 
SEC. 3024. APPEALS. 
(a) TELEVISION AND RADIO ANNOUNCEMENT.—Sec-
tion 1363 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104) is amended— 
(1) in subsection (a), by inserting after ‘‘deter-
minations’’ by inserting the following: ‘‘by notifying 
a local television and radio station,’’; and 
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(2) in the first sentence of subsection (b), by in-
serting before the period at the end the following: 
‘‘and shall notify a local television and radio station 
at least once during the same 10-day period’’. 
(b) EXTENSION OF APPEALS PERIOD.—Subsection 
(b) of section 1363 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104(b)) is amended— 
(1) by striking ‘‘(b) The Director’’ and insert-
ing ‘‘(b)(1) The Administrator’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The Administrator shall grant an extension of 
the 90-day period for appeals referred to in paragraph (1) 
for 90 additional days if an affected community certifies 
to the Administrator, after the expiration of at least 60 
days of such period, that the community— 
‘‘(A) believes there are property owners or les-
sees in the community who are unaware of such pe-
riod for appeals; and 
‘‘(B) will utilize the extension under this para-
graph to notify property owners or lessees who are 
affected by the proposed flood elevation determina-
tions of the period for appeals and the opportunity 
to appeal the determinations proposed by the Ad-
ministrator.’’. 
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(c) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) shall apply with respect to any flood 
elevation determination for any area in a community that 
has not, as of the date of the enactment of this Act, been 
issued a Letter of Final Determination for such deter-
mination under the flood insurance map modernization 
process. 
SEC. 3025. RESERVE FUND. 
(a) ESTABLISHMENT.—Chapter I of the National 
Flood Insurance Act of 1968 is amended by inserting after 
section 1310 (42 U.S.C. 4017) the following new section: 
‘‘SEC. 1310A. RESERVE FUND. 
‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car-
rying out the flood insurance program authorized by this 
title, the Administrator shall establish in the Treasury of 
the United States a National Flood Insurance Reserve 
Fund (in this section referred to as the ‘Reserve Fund’) 
which shall— 
‘‘(1) be an account separate from any other ac-
counts or funds available to the Administrator; and 
‘‘(2) be available for meeting the expected fu-
ture obligations of the flood insurance program. 
‘‘(b) RESERVE RATIO.—Subject to the phase-in re-
quirements under subsection (d), the Reserve Fund shall 
maintain a balance equal to— 
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‘‘(1) 1 percent of the sum of the total potential 
loss exposure of all outstanding flood insurance poli-
cies in force in the prior fiscal year; or 
‘‘(2) such higher percentage as the Adminis-
trator determines to be appropriate, taking into con-
sideration any circumstance that may raise a signifi-
cant risk of substantial future losses to the Reserve 
Fund. 
‘‘(c) MAINTENANCE OF RESERVE RATIO.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
have the authority to establish, increase, or decrease 
the amount of aggregate annual insurance premiums 
to be collected for any fiscal year necessary— 
‘‘(A) to maintain the reserve ratio required 
under subsection (b); and 
‘‘(B) to achieve such reserve ratio, if the 
actual balance of such reserve is below the 
amount required under subsection (b). 
‘‘(2) CONSIDERATIONS.—In exercising the au-
thority under paragraph (1), the Administrator shall 
consider— 
‘‘(A) the expected operating expenses of 
the Reserve Fund; 
‘‘(B) the insurance loss expenditures under 
the flood insurance program; 
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‘‘(C) any investment income generated 
under the flood insurance program; and 
‘‘(D) any other factor that the Adminis-
trator determines appropriate. 
‘‘(3) LIMITATIONS.—In exercising the authority 
under paragraph (1), the Administrator shall be 
subject to all other provisions of this Act, including 
any provisions relating to chargeable premium rates 
and annual increases of such rates. 
‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re-
quirements under this subsection are as follows: 
‘‘(1) IN
GENERAL.—Beginning in fiscal year 
2012 and not ending until the fiscal year in which 
the ratio required under subsection (b) is achieved, 
in each such fiscal year the Administrator shall 
place in the Reserve Fund an amount equal to not 
less than 7.5 percent of the reserve ratio required 
under subsection (b). 
‘‘(2) AMOUNT SATISFIED.—As soon as the ratio 
required under subsection (b) is achieved, and except 
as provided in paragraph (3), the Administrator 
shall not be required to set aside any amounts for 
the Reserve Fund. 
‘‘(3) EXCEPTION.—If at any time after the 
ratio required under subsection (b) is achieved, the 
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Reserve Fund falls below the required ratio under 
subsection (b), the Administrator shall place in the 
Reserve Fund for that fiscal year an amount equal 
to not less than 7.5 percent of the reserve ratio re-
quired under subsection (b). 
‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 
fiscal year, if the Administrator determines that the re-
serve ratio required under subsection (b) cannot be 
achieved, the Administrator shall submit a report to the 
Congress that— 
‘‘(1) describes and details the specific concerns 
of the Administrator regarding such consequences; 
‘‘(2) demonstrates how such consequences 
would harm the long-term financial soundness of the 
flood insurance program; and 
‘‘(3) indicates the maximum attainable reserve 
ratio for that particular fiscal year. 
‘‘(f) AVAILABILITY OF AMOUNTS.—The reserve ratio 
requirements under subsection (b) and the phase-in re-
quirements under subsection (d) shall be subject to the 
availability of amounts in the National Flood Insurance 
Fund for transfer under section 1310(a)(10), as provided 
in section 1310(f).’’. 
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(b) FUNDING.—Subsection (a) of section 1310 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4017(a)) is amended— 
(1) in paragraph (8), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (9), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(10) for transfers to the National Flood Insur-
ance Reserve Fund under section 1310A, in accord-
ance with such section.’’. 
SEC. 3026. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT-
REACH ACTIVITIES AND COMMUNITY BUILD-
ING CODE ADMINISTRATION GRANTS. 
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 
(1) in paragraph (24), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (25), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(26) supplementing existing State or local 
funding for administration of building code enforce-
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ment by local building code enforcement depart-
ments, including for increasing staffing, providing 
staff training, increasing staff competence and pro-
fessional qualifications, and supporting individual 
certification or departmental accreditation, and for 
capital expenditures specifically dedicated to the ad-
ministration of the building code enforcement de-
partment, except that, to be eligible to use amounts 
as provided in this paragraph— 
‘‘(A) a building code enforcement depart-
ment shall provide matching, non-Federal funds 
to be used in conjunction with amounts used 
under this paragraph in an amount— 
‘‘(i) in the case of a building code en-
forcement department serving an area with 
a population of more than 50,000, equal to 
not less than 50 percent of the total 
amount of any funds made available under 
this title that are used under this para-
graph; 
‘‘(ii) in the case of a building code en-
forcement department serving an area with 
a population of between 20,001 and 
50,000, equal to not less than 25 percent 
of the total amount of any funds made 
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available under this title that are used 
under this paragraph; and 
‘‘(iii) in the case of a building code 
enforcement department serving an area 
with a population of less than 20,000, 
equal to not less than 12.5 percent of the 
total amount of any funds made available 
under this title that are used under this 
paragraph, 
except that the Secretary may waive the match-
ing fund requirements under this subparagraph, 
in whole or in part, based upon the level of eco-
nomic distress of the jurisdiction in which is lo-
cated the local building code enforcement de-
partment that is using amounts for purposes 
under this paragraph, and shall waive such 
matching fund requirements in whole for any 
recipient jurisdiction that has dedicated all 
building code permitting fees to the conduct of 
local building code enforcement; and 
‘‘(B) any building code enforcement de-
partment using funds made available under this 
title for purposes under this paragraph shall 
empanel a code administration and enforcement 
team consisting of at least 1 full-time building 
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code enforcement officer, a city planner, and a 
health planner or similar officer; and 
‘‘(27) provision of assistance to local govern-
mental agencies responsible for floodplain manage-
ment activities (including such agencies of Indians 
tribes, as such term is defined in section 4 of the 
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4103)) in com-
munities that participate in the national flood insur-
ance program under the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.), only for car-
rying out outreach activities to encourage and facili-
tate the purchase of flood insurance protection 
under such Act by owners and renters of properties 
in such communities and to promote educational ac-
tivities that increase awareness of flood risk reduc-
tion; except that— 
‘‘(A) amounts used as provided under this 
paragraph shall be used only for activities de-
signed to— 
‘‘(i) identify owners and renters of 
properties in communities that participate 
in the national flood insurance program, 
including owners of residential and com-
mercial properties; 
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‘‘(ii) notify such owners and renters 
when their properties become included in, 
or when they are excluded from, an area 
having special flood hazards and the effect 
of such inclusion or exclusion on the appli-
cability of the mandatory flood insurance 
purchase requirement under section 102 of 
the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4012a) to such properties; 
‘‘(iii) educate such owners and renters 
regarding the flood risk and reduction of 
this risk in their community, including the 
continued flood risks to areas that are no 
longer subject to the flood insurance man-
datory purchase requirement; 
‘‘(iv) educate such owners and renters 
regarding the benefits and costs of main-
taining or acquiring flood insurance, in-
cluding, where applicable, lower-cost pre-
ferred risk policies under this title for such 
properties and the contents of such prop-
erties; 
‘‘(v) encourage such owners and rent-
ers to maintain or acquire such coverage; 
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‘‘(vi) notify such owners of where to 
obtain information regarding how to obtain 
such coverage, including a telephone num-
ber, mailing address, and Internet site of 
the Administrator of the Federal Emer-
gency Management Agency (in this para-
graph referred to as the ‘Administrator’) 
where such information is available; and 
‘‘(vii) educate local real estate agents 
in communities participating in the na-
tional flood insurance program regarding 
the program and the availability of cov-
erage under the program for owners and 
renters of properties in such communities, 
and establish coordination and liaisons 
with such real estate agents to facilitate 
purchase of coverage under the National 
Flood Insurance Act of 1968 and increase 
awareness of flood risk reduction; 
‘‘(B) in any fiscal year, a local govern-
mental agency may not use an amount under 
this paragraph that exceeds 3 times the amount 
that the agency certifies, as the Secretary, in 
consultation with the Administrator, shall re-
quire, that the agency will contribute from non- 
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Federal funds to be used with such amounts 
used under this paragraph only for carrying out 
activities described in subparagraph (A); and 
for purposes of this subparagraph, the term 
‘non-Federal funds’ includes State or local gov-
ernment agency amounts, in-kind contributions, 
any salary paid to staff to carry out the eligible 
activities of the local governmental agency in-
volved, the value of the time and services con-
tributed by volunteers to carry out such services 
(at a rate determined by the Secretary), and 
the value of any donated material or building 
and the value of any lease on a building; 
‘‘(C) a local governmental agency that uses 
amounts as provided under this paragraph may 
coordinate or contract with other agencies and 
entities having particular capacities, specialties, 
or experience with respect to certain popu-
lations or constituencies, including elderly or 
disabled families or persons, to carry out activi-
ties described in subparagraph (A) with respect 
to such populations or constituencies; and 
‘‘(D) each local government agency that 
uses amounts as provided under this paragraph 
shall submit a report to the Secretary and the 
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Administrator, not later than 12 months after 
such amounts are first received, which shall in-
clude such information as the Secretary and the 
Administrator jointly consider appropriate to 
describe the activities conducted using such 
amounts and the effect of such activities on the 
retention or acquisition of flood insurance cov-
erage.’’. 
SEC. 3027. TECHNICAL CORRECTIONS. 
(a) FLOOD DISASTER PROTECTION ACT OF 1973.— 
The Flood Disaster Protection Act of 1973 (42 U.S.C. 
4002 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears, except in section 102(f)(3) (42 U.S.C. 
4012a(f)(3)), and inserting ‘‘Administrator’’; and 
(2) in section 201(b) (42 U.S.C. 4105(b)), by 
striking ‘‘Director’s’’ and inserting ‘‘Administra-
tor’s’’. 
(b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 
The National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears and inserting ‘‘Administrator’’; and 
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(2) in section 1363 (42 U.S.C. 4104), by strik-
ing ‘‘Director’s’’ each place such term appears and 
inserting ‘‘Administrator’s’’. 
(c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 
Section 15(e) of the Federal Flood Insurance Act of 1956 
(42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 
each place such term appears and inserting ‘‘Adminis-
trator’’. 
SEC. 
3028. 
REQUIRING 
COMPETITION 
FOR 
NATIONAL 
FLOOD INSURANCE PROGRAM POLICIES. 
(a) REPORT.—Not later than the expiration of the 
90-day period beginning upon the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency, in consultation with insurance com-
panies, insurance agents and other organizations with 
which the Administrator has contracted, shall submit to 
the Congress a report describing procedures and policies 
that the Administrator shall implement to limit the per-
centage of policies for flood insurance coverage under the 
national flood insurance program that are directly man-
aged by the Agency to not more than 10 percent of the 
aggregate number of flood insurance policies in force 
under such program. 
(b) IMPLEMENTATION.—Upon submission of the re-
port under subsection (a) to the Congress, the Adminis-
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trator shall implement the policies and procedures de-
scribed in the report. The Administrator shall, not later 
than the expiration of the 12-month period beginning 
upon submission of such report, reduce the number of 
policies for flood insurance coverage that are directly man-
aged by the Agency, or by the Agency’s direct servicing 
contractor that is not an insurer, to not more than 10 
percent of the aggregate number of flood insurance poli-
cies in force as of the expiration of such 12-month period. 
(c) CONTINUATION OF CURRENT AGENT RELATION-
SHIPS.—In carrying out subsection (b), the Administrator 
shall ensure that— 
(1) agents selling or servicing policies described 
in such subsection are not prevented from con-
tinuing to sell or service such policies; and 
(2) insurance companies are not prevented from 
waiving any limitation such companies could other-
wise enforce to limit any such activity. 
SEC. 3029. STUDIES OF VOLUNTARY COMMUNITY-BASED 
FLOOD INSURANCE OPTIONS. 
(a) STUDIES.—The Administrator of the Federal 
Emergency Management Agency and the Comptroller 
General of the United States shall each conduct a separate 
study to assess options, methods, and strategies for offer-
ing voluntary community-based flood insurance policy op-
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tions and incorporating such options into the national 
flood insurance program. Such studies shall take into con-
sideration and analyze how the policy options would affect 
communities having varying economic bases, geographic 
locations, flood hazard characteristics or classifications, 
and flood management approaches. 
(b) REPORTS.—Not later than the expiration of the 
18-month period beginning on the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency and the Comptroller General of the 
United States shall each submit a report to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate on the results and conclusions of the study 
such agency conducted under subsection (a), and each 
such report shall include recommendations for the best 
manner to incorporate voluntary community-based flood 
insurance options into the national flood insurance pro-
gram and for a strategy to implement such options that 
would encourage communities to undertake flood mitiga-
tion activities. 
SEC. 3030. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
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Administrator of the Federal Emergency Management 
Agency shall conduct a study and submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding the impact, effec-
tiveness, and feasibility of amending section 1361 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4102) 
to include widely used and nationally recognized building 
codes as part of the floodplain management criteria devel-
oped under such section, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local 
communities to administer and enforce such a build-
ing code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
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(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
ance coverage under such Act for structures meeting 
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage; 
(7) the impact of such a building code require-
ment on rural communities with different building 
code challenges than more urban environments; and 
(8) the impact of such a building code require-
ment on Indian reservations. 
SEC. 3031. STUDY ON GRADUATED RISK. 
(a) STUDY.—The National Academy of Sciences shall 
conduct a study exploring methods for understanding 
graduated risk behind levees and the associated land de-
velopment, insurance, and risk communication dimensions, 
which shall— 
(1) research, review, and recommend current 
best practices for estimating direct annualized flood 
losses behind levees for residential and commercial 
structures; 
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(2) rank such practices based on their best 
value, balancing cost, scientific integrity, and the in-
herent uncertainties associated with all aspects of 
the loss estimate, including geotechnical engineering, 
flood frequency estimates, economic value, and direct 
damages; 
(3) research, review, and identify current best 
floodplain management and land use practices be-
hind levees that effectively balance social, economic, 
and environmental considerations as part of an over-
all flood risk management strategy; 
(4) identify examples where such practices have 
proven effective and recommend methods and proc-
esses by which they could be applied more broadly 
across the United States, given the variety of dif-
ferent flood risks, State and local legal frameworks, 
and evolving judicial opinions; 
(5) research, review, and identify a variety of 
flood insurance pricing options for flood hazards be-
hind levees which are actuarially sound and based on 
the flood risk data developed using the top three 
best value approaches identified pursuant to para-
graph (1); 
(6) evaluate and recommend methods to reduce 
insurance costs through creative arrangements be-
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tween insureds and insurers while keeping a clear 
accounting of how much financial risk is being borne 
by various parties such that the entire risk is ac-
counted for, including establishment of explicit limits 
on disaster aid or other assistance in the event of a 
flood; and 
(7) taking into consideration the recommenda-
tions pursuant to paragraphs (1) through (3), rec-
ommend approaches to communicating the associ-
ated risks to community officials, homeowners, and 
other residents. 
(b) REPORT.—Not later than the expiration of the 
12-month period beginning on the date of the enactment 
of this Act, the National Academy of Sciences shall submit 
a report to the Committees on Financial Services and 
Science, Space, and Technology of the House of Rep-
resentatives and the Committees on Banking, Housing, 
and Urban Affairs and Commerce, Science and Transpor-
tation of the Senate on the study under subsection (a) in-
cluding the information and recommendations required 
under such subsection. 
SEC. 3032. REPORT ON FLOOD-IN-PROGRESS DETERMINA-
TION. 
The Administrator of the Federal Emergency Man-
agement Agency shall review the processes and procedures 
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for determining that a flood event has commenced or is 
in progress for purposes of flood insurance coverage made 
available under the national flood insurance program 
under the National Flood Insurance Act of 1968 and for 
providing public notification that such an event has com-
menced or is in progress. In such review, the Adminis-
trator shall take into consideration the effects and implica-
tions that weather conditions, such as rainfall, snowfall, 
projected snowmelt, existing water levels, and other condi-
tions have on the determination that a flood event has 
commenced or is in progress. Not later than the expiration 
of the 6-month period beginning upon the date of the en-
actment of this Act, the Administrator shall submit a re-
port to the Congress setting forth the results and conclu-
sions of the review undertaken pursuant to this section 
and any actions undertaken or proposed actions to be 
taken to provide for a more precise and technical deter-
mination that a flooding event has commenced or is in 
progress. 
SEC. 3033. STUDY ON REPAYING FLOOD INSURANCE DEBT. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management 
Agency shall submit a report to the Congress setting forth 
a plan for repaying within 10 years all amounts, including 
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any amounts previously borrowed but not yet repaid, owed 
pursuant to clause (2) of subsection (a) of section 1309 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)(2)). 
SEC. 3034. NO CAUSE OF ACTION. 
No cause of action shall exist and no claim may be 
brought against the United States for violation of any no-
tification requirement imposed upon the United States by 
this title or any amendment made by this title. 
SEC. 3035. AUTHORITY FOR THE CORPS OF ENGINEERS TO 
PROVIDE SPECIALIZED OR TECHNICAL SERV-
ICES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, upon the request of a State or local govern-
ment, the Secretary of the Army may evaluate a levee sys-
tem that was designed or constructed by the Secretary for 
the purposes of the National Flood Insurance Program es-
tablished under chapter 1 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4011 et seq.). 
(b) REQUIREMENTS.—A levee system evaluation 
under subsection (a) shall— 
(1) comply with applicable regulations related 
to areas protected by a levee system; 
(2) be carried out in accordance with such pro-
cedures as the Secretary, in consultation with the 
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Administrator of the Federal Emergency Manage-
ment Agency, may establish; and 
(3) be carried out only if the State or local gov-
ernment agrees to reimburse the Secretary for all 
cost associated with the performance of the activi-
ties. 
TITLE IV—JUMPSTARTING OP-
PORTUNITY 
WITH 
BROADBAND SPECTRUM ACT 
OF 2011 
SEC. 4001. SHORT TITLE. 
This title may be cited as the ‘‘Jumpstarting Oppor-
tunity with Broadband Spectrum Act of 2011’’ or the 
‘‘JOBS Act of 2011’’. 
SEC. 4002. DEFINITIONS. 
In this title: 
(1) 700 MHZ D BLOCK SPECTRUM.—The term 
‘‘700 MHz D block spectrum’’ means the portion of 
the electromagnetic spectrum between the fre-
quencies from 758 megahertz to 763 megahertz and 
between the frequencies from 788 megahertz to 793 
megahertz. 
(2) 700 MHZ
PUBLIC
SAFETY
GUARD
BAND 
SPECTRUM.—The term ‘‘700 MHz public safety 
guard band spectrum’’ means the portion of the 
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electromagnetic spectrum between the frequencies 
from 768 megahertz to 769 megahertz and between 
the frequencies from 798 megahertz to 799 mega-
hertz. 
(3) 700 MHZ
PUBLIC
SAFETY
NARROWBAND 
SPECTRUM.—The term ‘‘700 MHz public safety 
narrowband spectrum’’ means the portion of the 
electromagnetic spectrum between the frequencies 
from 769 megahertz to 775 megahertz and between 
the frequencies from 799 megahertz to 805 mega-
hertz. 
(4) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the entity selected under section 
4203(a) to serve as Administrator of the National 
Public Safety Communications Plan. 
(5) ASSISTANT SECRETARY.—The term ‘‘Assist-
ant Secretary’’ means the Assistant Secretary of 
Commerce for Communications and Information. 
(6) BOARD.—The term ‘‘Board’’ means the 
Public Safety Communications Planning Board es-
tablished under section 4202(a)(1). 
(7) BROADCAST
TELEVISION
LICENSEE.—The 
term ‘‘broadcast television licensee’’ means the li-
censee of— 
(A) a full-power television station; or 
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(B) a low-power television station that has 
been accorded primary status as a Class A tele-
vision licensee under section 73.6001(a) of title 
47, Code of Federal Regulations. 
(8) BROADCAST TELEVISION SPECTRUM.—The 
term ‘‘broadcast television spectrum’’ means the por-
tions of the electromagnetic spectrum between the 
frequencies from 54 megahertz to 72 megahertz, 
from 76 megahertz to 88 megahertz, from 174 
megahertz to 216 megahertz, and from 470 mega-
hertz to 698 megahertz. 
(9) COMMERCIAL MOBILE DATA SERVICE.—The 
term ‘‘commercial mobile data service’’ means any 
mobile service (as defined in section 3 of the Com-
munications Act of 1934 (47 U.S.C. 153)) that is— 
(A) a data service; 
(B) provided for profit; and 
(C) available to the public or such classes 
of eligible users as to be effectively available to 
a substantial portion of the public, as specified 
by regulation by the Commission. 
(10) 
COMMERCIAL
MOBILE
SERVICE.—The 
term ‘‘commercial mobile service’’ has the meaning 
given such term in section 332 of the Communica-
tions Act of 1934 (47 U.S.C. 332). 
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(11) COMMERCIAL
STANDARDS.—The term 
‘‘commercial standards’’ means the technical stand-
ards followed by the commercial mobile service and 
commercial mobile data service industries for net-
work, device, and Internet Protocol connectivity. 
Such term includes standards developed by the 
Third Generation Partnership Project (3GPP), the 
Institute of Electrical and Electronics Engineers 
(IEEE), the Alliance for Telecommunications Indus-
try Solutions (ATIS), the Internet Engineering Task 
Force (IETF), and the International Telecommuni-
cation Union (ITU). 
(12) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(13) EMERGENCY CALL.—The term ‘‘emergency 
call’’ means any real-time communication with a 
public safety answering point or other emergency 
management or response agency, including— 
(A) through voice, text, or video and re-
lated data; and 
(B) nonhuman-initiated automatic event 
alerts, such as alarms, telematics, or sensor 
data, which may also include real-time voice, 
text, or video communications. 
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(14) FORWARD AUCTION.—The term ‘‘forward 
auction’’ means the portion of an incentive auction 
of broadcast television spectrum under section 
4104(c). 
(15) INCENTIVE AUCTION.—The term ‘‘incen-
tive auction’’ means a system of competitive bidding 
under subparagraph (G) of section 309(j)(8) of the 
Communications Act of 1934, as added by section 
4103. 
(16) MULTICHANNEL
VIDEO
PROGRAMMING 
DISTRIBUTOR.—The term ‘‘multichannel video pro-
gramming distributor’’ has the meaning given such 
term in section 602 of the Communications Act of 
1934 (47 U.S.C. 522). 
(17) NATIONAL
PUBLIC
SAFETY
COMMUNICA-
TIONS
PLAN.—The term ‘‘National Public Safety 
Communications Plan’’ or ‘‘Plan’’ means the plan 
adopted under section 4202(c). 
(18) NEXT GENERATION 9–1–1 SERVICES.—The 
term ‘‘Next Generation 9–1–1 services’’ means an 
IP-based system comprised of hardware, software, 
data, and operational policies and procedures that— 
(A) provides standardized interfaces from 
emergency call and message services to support 
emergency communications; 
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(B) processes all types of emergency calls, 
including voice, text, data, and multimedia in-
formation; 
(C) acquires and integrates additional 
emergency call data useful to call routing and 
handling; 
(D) delivers the emergency calls, messages, 
and data to the appropriate public safety an-
swering point and other appropriate emergency 
entities; 
(E) supports data or video communications 
needs for coordinated incident response and 
management; and 
(F) provides broadband service to public 
safety answering points or other first responder 
entities. 
(19) NTIA.—The term ‘‘NTIA’’ means the Na-
tional Telecommunications and Information Admin-
istration. 
(20) PUBLIC SAFETY ANSWERING POINT.—The 
term ‘‘public safety answering point’’ has the mean-
ing given such term in section 222 of the Commu-
nications Act of 1934 (47 U.S.C. 222). 
(21) 
PUBLIC
SAFETY
BROADBAND
SPEC-
TRUM.—The term ‘‘public safety broadband spec-
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trum’’ means the portion of the electromagnetic 
spectrum between the frequencies from 763 mega-
hertz to 768 megahertz and between the frequencies 
from 793 megahertz to 798 megahertz. 
(22) PUBLIC SAFETY COMMUNICATIONS.—The 
term ‘‘public safety communications’’ means commu-
nications by providers of public safety services. 
(23) PUBLIC
SAFETY
SERVICES.—The term 
‘‘public safety services’’ has the meaning given such 
term in section 337 of the Communications Act of 
1934 (47 U.S.C. 337). 
(24) REVERSE
AUCTION.—The term ‘‘reverse 
auction’’ means the portion of an incentive auction 
of broadcast television spectrum under section 
4104(a), in which a broadcast television licensee may 
submit bids stating the amount it would accept for 
voluntarily relinquishing some or all of its broadcast 
television spectrum usage rights. 
(25) SPECTRUM LICENSED TO THE ADMINIS-
TRATOR.—The term ‘‘spectrum licensed to the Ad-
ministrator’’ means the portion of the electro-
magnetic spectrum that the Administrator is li-
censed to use under section 4201(a). 
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(26) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 3 of the Communica-
tions Act of 1934 (47 U.S.C. 153). 
(27) STATE PUBLIC SAFETY BROADBAND COM-
MUNICATIONS NETWORK.—The term ‘‘State public 
safety broadband communications network’’ means a 
broadband network for public safety communications 
established by a State Public Safety Broadband Of-
fice, in accordance with the National Public Safety 
Communications Plan, using the spectrum licensed 
to the Administrator. 
(28) STATE PUBLIC SAFETY BROADBAND OF-
FICE.—The term ‘‘State Public Safety Broadband 
Office’’ means an office established or designated 
under section 4221(a). 
(29) ULTRA
HIGH
FREQUENCY.—The term 
‘‘ultra high frequency’’ means, with respect to a tele-
vision channel, that the channel is located in the 
portion of the electromagnetic spectrum between the 
frequencies from 470 megahertz to 698 megahertz. 
(30) VERY HIGH FREQUENCY.—The term ‘‘very 
high frequency’’ means, with respect to a television 
channel, that the channel is located in the portion of 
the electromagnetic spectrum between the fre-
quencies from 54 megahertz to 72 megahertz, from 
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76 megahertz to 88 megahertz, or from 174 mega-
hertz to 216 megahertz. 
SEC. 4003. RULE OF CONSTRUCTION. 
Each range of frequencies described in this title shall 
be construed to be inclusive of the upper and lower fre-
quencies in the range. 
SEC. 4004. ENFORCEMENT. 
(a) IN GENERAL.—The Commission shall implement 
and enforce this title as if this title is a part of the Com-
munications Act of 1934 (47 U.S.C. 151 et seq.). A viola-
tion of this title, or a regulation promulgated under this 
title, shall be considered to be a violation of the Commu-
nications Act of 1934, or a regulation promulgated under 
such Act, respectively. 
(b) EXCEPTIONS.— 
(1) OTHER AGENCIES.—Subsection (a) does not 
apply in the case of a provision of this title that is 
expressly required to be carried out by an agency (as 
defined in section 551 of title 5, United States 
Code) other than the Commission. 
(2) NTIA REGULATIONS.—The Assistant Sec-
retary may promulgate such regulations as are nec-
essary to implement and enforce any provision of 
this title that is expressly required to be carried out 
by the Assistant Secretary. 
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SEC. 4005. NATIONAL SECURITY RESTRICTIONS ON USE OF 
FUNDS AND AUCTION PARTICIPATION. 
(a) USE OF FUNDS.—No funds made available by 
section 4102 or subtitle B may be used to make payments 
under a contract to a person described in subsection (c). 
(b) AUCTION PARTICIPATION.—A person described in 
subsection (c) may not participate in a system of competi-
tive bidding under section 309(j) of the Communications 
Act of 1934 (47 U.S.C. 309(j))— 
(1) that is required to be conducted by this 
title; or 
(2) in which any spectrum usage rights for 
which licenses are being assigned were made avail-
able under clause (i) of subparagraph (G) of para-
graph (8) of such section, as added by section 4103. 
(c) PERSON DESCRIBED.—A person described in this 
subsection is a person who has been, for reasons of na-
tional security, barred by any agency of the Federal Gov-
ernment from bidding on a contract, participating in an 
auction, or receiving a grant. 
Subtitle A—Spectrum Auction 
Authority 
SEC. 4101. DEADLINES FOR AUCTION OF CERTAIN SPEC-
TRUM. 
(a) CLEARING CERTAIN FEDERAL SPECTRUM.— 
(1) IN GENERAL.—The President shall— 
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(A) not later than 3 years after the date 
of the enactment of this Act, begin the process 
of withdrawing or modifying the assignment to 
a Federal Government station of the electro-
magnetic spectrum described in paragraph (2); 
and 
(B) not later than 30 days after com-
pleting the withdrawal or modification, notify 
the Commission that the withdrawal or modi-
fication is complete. 
(2) 
SPECTRUM
DESCRIBED.—The 
electro-
magnetic spectrum described in this paragraph is 
the following: 
(A) The frequencies between 1755 mega-
hertz and 1780 megahertz, except that if— 
(i) the Secretary of Commerce— 
(I) determines that such fre-
quencies cannot be reallocated for 
non-Federal use because incumbent 
Federal operations cannot be elimi-
nated, relocated to other spectrum, or 
accommodated through other means; 
(II) identifies other spectrum for 
reallocation for non-Federal use that 
the Secretary of Commerce deter-
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mines can reasonably be expected to 
produce a comparable amount of net 
auction proceeds; and 
(III) submits to the Committee 
on Commerce, Science, and Transpor-
tation of the Senate and the Com-
mittee on Energy and Commerce of 
the House of Representatives a report 
that identifies such spectrum and ex-
plains the determinations under sub-
clauses (I) and (II); and 
(ii) not later than 1 year after the 
date of the submission of such report, 
there is enacted a law approving the sub-
stitution of the spectrum identified under 
clause (i)(II) for the frequencies between 
1755 megahertz and 1780 megahertz; 
the spectrum described in this subparagraph 
shall be the spectrum identified under such 
clause. 
(B) The 15 megahertz of spectrum be-
tween 1675 megahertz and 1710 megahertz 
identified under paragraph (3). 
(C) The frequencies between 3550 mega-
hertz and 3650 megahertz, except for the geo-
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graphic exclusion zones (as such zones may be 
amended) identified in the report of the NTIA 
published in October 2010 and entitled ‘‘An As-
sessment of Near-Term Viability of Accommo-
dating Wireless Broadband Systems in 1675– 
1710 MHz, 1755–1780 MHz, 3500–3650 MHz, 
and 
4200–4220 
MHz, 
4380–4400 
MHz 
Bands’’. 
(3) IDENTIFICATION BY SECRETARY OF COM-
MERCE.—Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Commerce 
shall submit to the President a report identifying 15 
megahertz of spectrum between 1675 megahertz and 
1710 megahertz for reallocation from Federal use to 
non-Federal use. 
(b) REALLOCATION AND AUCTION.— 
(1) IN GENERAL.—Notwithstanding paragraph 
(15)(A) of section 309(j) of the Communications Act 
of 1934 (47 U.S.C. 309(j)), not later than 3 years 
after the date of the enactment of this Act, the 
Commission shall, except as provided in paragraph 
(4)— 
(A) allocate the spectrum described in 
paragraph (2) for commercial use; and 
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(B) through a system of competitive bid-
ding under such section, grant new initial li-
censes for the use of such spectrum, subject to 
flexible-use service rules. 
(2) SPECTRUM DESCRIBED.—The spectrum de-
scribed in this paragraph is the following: 
(A) The frequencies between 1915 mega-
hertz and 1920 megahertz, paired with the fre-
quencies between 1995 megahertz and 2000 
megahertz. 
(B) The frequencies described in sub-
section (a)(2)(A). 
(C) The frequencies between 2155 mega-
hertz and 2180 megahertz. 
(D) The 15 megahertz of spectrum identi-
fied under subsection (a)(3), paired with 15 
megahertz of contiguous spectrum to be identi-
fied by the Commission. 
(E) The frequencies described in sub-
section (a)(2)(C). 
(3) PROCEEDS TO COVER 110 PERCENT OF FED-
ERAL RELOCATION OR SHARING COSTS.—Nothing in 
paragraph (1) shall be construed to relieve the Com-
mission 
from 
the 
requirements 
of 
section 
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