for the purpose under this paragraph in an amount
not to exceed an aggregate of $5,000,000 over the
2-year period beginning on the date of the enact-
ment of the National Flood Insurance Reform Act of
1994; and’’.
SEC. 608. STUDY OF ECONOMIC EFFECTS OF CHARGING AC-
TUARIALLY-BASED 
PREMIUM 
RATES 
FOR
PRE-FIRM STRUCTURES.
(a) STUDY.—The Director of the Federal Emergency
Management Agency (in this section referred to as the
‘‘Director’’) shall conduct a study of the economic effects
that would result from increasing premium rates for flood
insurance coverage made available under the national
flood insurance program for pre-FIRM structures to the
full actuarial risk based premium rate determined under
section 1307(a)(1) of the National Flood Insurance Act
of 1968 for the area in which the property is located. In
conducting the study, the Director shall—
(1) determine each area that would be subject
to such increased premium rates; and
(2) for each such area, determine—
(A) the amount by which premium rates
would be increased;
(B) the number and types of properties af-
fected and the number and types of properties
covered by flood insurance under this title likely
to cancel such insurance if the rate increases
were made;
(C) the effects that the increased premium
rates would have on land values and property
taxes; and
(D) any other effects that the increased
premium rates would have on the economy and
homeowners.
(b) DEFINITION OF ‘‘PRE-FIRM STRUCTURE’’.—For
purposes of subsection (a), the term ‘‘pre-FIRM struc-
ture’’ means a structure that was not constructed or sub-
stantially improved after the later of—
(1) December 31, 1974; or
(2) the effective date of the initial rate map
published by the Director under section 1360(a)(2)
of the National Flood Insurance Act of 1968 for the
area in which such structure is located.
(c) REPORT.—The Director shall submit a report to
the Congress describing and explaining the findings of the
study conducted under this section. The report shall be
submitted not later than 12 months after the date of the
enactment of this Act.
SEC. 609. EFFECTIVE DATES OF POLICIES.
(a) 30-DAY DELAY.—Section 1306 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4013), as amend-
ed by the preceding provisions of this Act, is further
amended by adding at the end the following new sub-
section:
‘‘(c) EFFECTIVE DATE OF POLICIES.—
‘‘(1) WAITING PERIOD.—Except as provided in
paragraph (2), coverage under a new contract for
flood insurance coverage under this title entered into
after the date of the enactment of the National
Flood Insurance Reform Act of 1994, and any modi-
fication to coverage under an existing flood insur-
ance contract made after such date, shall become ef-
fective upon the expiration of the 30-day period be-
ginning on the date that all obligations for such cov-
erage (including completion of the application and
payment of any initial premiums owed) are satisfac-
torily completed.
‘‘(2) EXCEPTION.—The provisions of paragraph
(1) shall not apply to coverage under a flood insur-
ance contract for newly constructed property and
coverage for newly acquired property, that is ob-
tained before or upon the completion of the con-
struction or transfer of title to the property, as ap-
plicable.’’.
(b) STUDY.—The Director of the Federal Emergency
Management Agency shall conduct a study to determine
the appropriateness of existing requirements regarding the
effective date and time of coverage under flood insurance
contracts obtained through the national flood insurance
program. In conducting the study, the Director shall de-
termine whether any delay between the time of purchase
of flood insurance coverage and the time of initial effec-
tiveness of the coverage should differ for various classes
of properties (based upon the type of property, location
of the property, or any other factors related to the prop-
erty) or for various circumstances under which such insur-
ance was purchased. Not later than the expiration of the
6-month period beginning on the date of the enactment
of this Act, the Director shall submit to the Congress a
report on the results of the study.
SEC. 610. REGULATIONS.
The Director of the Federal Emergency Management
Agency, the Secretary of Housing and Urban Develop-
ment, and any appropriate head of any Federal agency
may each issue any regulations necessary to carry out the
applicable provisions of this Act and the applicable amend-
ments made by this Act.
SEC. 611. RELATION TO STATE AND LOCAL LAWS.
This Act and the amendments made by this Act may
not be construed to preempt, annul, alter, amend, or ex-
empt any person from compliance with any law, ordinance,
or regulation of any State or local government with respect
to land use, management, or control.
Passed the House of Representatives May 3, 1994.
Attest:
DONNALD K. ANDERSON,
Clerk.
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