submit to the Congress, and cause to be published in 
the Federal Register, a report certifying such comple-
tion. 
(2) TIMING.—The first report under this sub-
section shall be submitted not later than June 30, 
2006, and successive reports required under this sub-
section during the period referred to in paragraph (1) 
shall be submitted not later than June 30 of each year 
during such period. 
SEC. 4. ENFORCEMENT. 
Paragraph (5) of section 102(f) of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a) is amended— 
(1) by striking ‘‘$350’’ and inserting ‘‘$2,000’’; 
and 
(2) by striking the last sentence. 
SEC. 5. REITERATION OF FEMA RESPONSIBILITIES UNDER 
2004 REFORM ACT. 
(a) APPEALS PROCESS.—As directed in section 205 of 
the Bunning-Bereuter-Blumenauer Flood Insurance Reform 
Act of 2004 (42 U.S.C. 4011 note), the Director of the Fed-
eral Emergency Management Agency is again directed to, 
not later than 90 days after the date of the enactment of 
this Act, establish an appeals process through which holders 
of a flood insurance policy may appeal the decisions, with
respect to claims, proofs of loss, and loss estimates relating 
to such flood insurance policy as required by such section. 
(b) MINIMUM TRAINING AND EDUCATION REQUIRE-
MENTS.—The Director of the Federal Emergency Manage-
ment Agency is directed to enforce the minimum training 
and education requirements for all insurance agents who 
sell flood insurance policies that have been established under 
the notice published September 1, 2005 (70 Fed. Reg. 
52117) pursuant to section 207 of the Bunning-Bereuter- 
Blumenauer Flood Insurance Reform Act of 2004 (42 
U.S.C. 4011 note). 
(c) MITIGATION PROGRAMS.—Not later than the expi-
ration of the 30-day period beginning on the date of the 
enactment of this Act, the Director of the Federal Emer-
gency Management Agency shall issue regulations necessary 
to implement the amendments made by sections 102, 103, 
104, and 105 of the Bunning-Bereuter-Blumenauer Flood 
Insurance Reform Act of 2004 (118 Stat. 714 et seq.). 
(d) REPORT.—Not later than the expiration of the 6- 
month period beginning on the date of the enactment of this 
Act, the Director of the Federal Emergency Management 
Agency shall submit a report to the Congress describing the 
implementation of each provision of the Bunning-Bereuter- 
Blumenauer Flood Insurance Reform Act of 2004 (Public 
Law 108–264) and identifying each regulation, order, no-
tice, and other material issued by the Director in imple-
menting each such provision. 
SEC. 6. MAXIMUM COVERAGE LIMITS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (2), by striking ‘‘$250,000’’ 
and inserting ‘‘$335,500’’; 
(2) in paragraph (3), by striking ‘‘$100,000’’ 
and inserting ‘‘$135,000’’; and 
(3) in paragraph (4), by striking ‘‘$500,000’’ 
each 
place 
such 
term 
appears 
and 
inserting 
‘‘$670,700’’. 
SEC. 7. COVERAGE FOR ADDITIONAL LIVING EXPENSES 
AND BUSINESS INTERRUPTION. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013) 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 a semicolon; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(6) in the case of any residential property, each 
renewal or new contract for flood insurance coverage 
shall provide not less than $1,000 aggregate liability
per dwelling unit for any necessary increases in liv-
ing expenses incurred by the insured when losses from 
a flood make the residence unfit to live in, which cov-
erage shall be 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); 
‘‘(7) in the case of any residential property, cov-
erage for additional living expenses described in 
paragraph (6) shall be made available to every in-
sured upon renewal and every applicant in excess of 
the limits provided in paragraph (6) in such amounts 
and at such rates as the Director shall establish, ex-
cept that such chargeable rates shall not be less than 
the estimated premium rates for such coverage deter-
mined in accordance with section 1307(a)(1); and 
‘‘(8) in the case of any commercial property, op-
tional coverage 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 
shall be made available to every insured upon renewal 
and every applicant, except that— 
‘‘(A) for purposes of such coverage, losses 
shall be determined based on the profits the cov-
ered business would have earned, based on pre-
vious financial records, had the flood not oc-
curred; and 
‘‘(B) 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).’’. 
SEC. 8. INCREASE IN BORROWING AUTHORITY. 
(a) BORROWING AUTHORITY.—The first sentence of 
subsection (a) of section 1309 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4016(a)), as amended by the 
National Flood Insurance Program Enhanced Borrowing 
Authority Act of 2005 (Public Law 109–65; 119 Stat. 
1998), is amended by striking ‘‘$3,500,000,000’’ and insert-
ing ‘‘$22,000,000,000’’. 
(b) FEMA REPORT.—Not later than the expiration of 
the 6-month period beginning on the date of the enactment 
of this Act, the Director of the Federal Emergency Manage-
ment Agency shall submit a report to the Congress setting 
forth a plan for repaying any amounts borrowed pursuant 
to increase in borrowing authority authorized under the 
amendments made by subsection (a).
SEC. 9. CLARIFICATION OF REPLACEMENT COST PROVI-
SIONS, FORMS, AND POLICY LANGUAGE. 
Not later than the expiration of the 3-month period 
beginning on the date of the enactment of this Act, the Di-
rector of the Federal Emergency Management Agency 
shall— 
(1) issue regulations, and revise any materials 
made available by such Agency, to clarify the appli-
cability of replacement cost coverage under the na-
tional flood insurance program; 
(2) revise any regulations, forms, notices, guid-
ance, and publications relating to the full cost of re-
pair or replacement under the replacement cost cov-
erage to more clearly describe such coverage to flood 
insurance policyholders and information to be pro-
vided by such policyholders relating to such coverage, 
and to avoid providing misleading information to 
such policyholders; and 
(3) revise the language in standard flood insur-
ance policies under such program regarding rating 
and coverage descriptions in a manner that is con-
sistent with language used widely in other home-
owners and property and casualty insurance policies, 
including such language regarding classification of 
buildings, basements, crawl spaces, detached garages,
enclosures below elevated buildings, and replacement 
costs. 
SEC. 10. FEMA REPORTS ON FINANCIAL STATUS OF INSUR-
ANCE PROGRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘RE-
PORT TO THE PRESIDENT’’ and inserting ‘‘RE-
PORTS’’; 
(2) in subsection (a), by striking ‘‘IN GENERAL’’ 
and inserting ‘‘BIENNIAL REPORT TO PRESIDENT’’ ; 
and 
(3) by adding at the end the following new sub-
section: 
‘‘(c) SEMIANNUAL REPORTS TO CONGRESS ON FINAN-
CIAL STATUS.—Not later than June 30 and December 31 
of each year, the Director shall submit a report to the Con-
gress regarding the financial status of the national flood 
insurance program under this title. Each such report shall 
describe the financial status of the National Flood Insur-
ance Fund and current and projected levels of claims, pre-
mium receipts, expenses, and borrowing under the pro-
gram.’’.
SEC. 11. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
IN RESPA GOOD FAITH ESTIMATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is amend-
ed by adding at the end the following new sentence: ‘‘Each 
such good faith estimate shall include a conspicuous state-
ment that flood insurance coverage for residential real es-
tate is generally available under the National Flood Insur-
ance 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 
a hazard insurance provider.’’. 
SEC. 12. ELIGIBILITY OF PROPERTY DEMOLITION AND RE-
BUILDING 
FOR 
MITIGATION 
ASSISTANCE 
PROGRAM. 
Subparagraph (B) of section 1366(e)(5) of the Na-
tional 
Flood 
Insurance 
Act 
of 
1968 
(42 
U.S.C. 
4104c(e)(5)(B)) is amended by inserting before the semi-
colon at the end the following: ‘‘, or the demolition and re-
building of structures located in such areas to at least Base 
Flood Elevation or any higher elevation required by any 
local ordinance’’. 
SEC. 13. AUTHORIZATION OF ADDITIONAL FEMA STAFF. 
Notwithstanding any other provision of law, the Direc-
tor of the Federal Emergency Management Agency may em-
ploy such additional staff of such Agency as may be nec-
essary to carry out all of the responsibilities of the Director 
pursuant to this Act and the amendments made by this Act. 
There are authorized to be appropriated to Director such 
sums as may be necessary for costs of employing such addi-
tional staff.
Union Calendar No. 199 
109TH CONGRESS 
2D SESSION 
H. R. 4320 
[Report No. 109–370] 
A BILL 
To restore the financial solvency of the national 
flood insurance program, and for other purposes. 
FEBRUARY 1, 2006 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed