H. R. 4348—499 
engineering methods in the widespread deployment and evalua-
tion of intelligent transportation systems as a component of 
the surface transportation systems of the United States. 
‘‘(2) INTEROPERABILITY AND EFFICIENCY.—To the maximum 
extent practicable, the national ITS architecture and supporting 
ITS standards and protocols shall promote interoperability 
among, and efficiency of, intelligent transportation systems and 
technologies implemented throughout the United States. 
‘‘(3) USE OF STANDARDS DEVELOPMENT ORGANIZATIONS.— 
In carrying out this section, the Secretary shall support the 
development and maintenance of standards and protocols using 
the services of such standards development organizations as 
the Secretary determines to be necessary and whose member-
ships are comprised of, and represent, the surface transpor-
tation and intelligent transportation systems industries. 
‘‘(b) STANDARDS
FOR NATIONAL POLICY IMPLEMENTATION.—If 
the Secretary finds that a standard is necessary for implementation 
of a nationwide policy relating to user fee collection or other capa-
bility requiring nationwide uniformity, the Secretary, after consulta-
tion with stakeholders, may establish and require the use of that 
standard. 
‘‘(c) PROVISIONAL STANDARDS.— 
‘‘(1) IN GENERAL.—If the Secretary finds that the develop-
ment or balloting of an intelligent transportation system 
standard jeopardizes the timely achievement of the objectives 
described in subsection (a), the Secretary may establish a provi-
sional standard, after consultation with affected parties, using, 
to the maximum extent practicable, the work product of appro-
priate standards development organizations. 
‘‘(2) PERIOD
OF
EFFECTIVENESS.—A provisional standard 
established under paragraph (1) shall be published in the Fed-
eral Register and remain in effect until the appropriate stand-
ards development organization adopts and publishes a 
standard. 
‘‘(d) CONFORMITY WITH NATIONAL ARCHITECTURE.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the Secretary shall ensure that intelligent transportation 
system projects carried out using amounts made available from 
the Highway Trust Fund, including amounts made available 
to deploy intelligent transportation systems, conform to the 
appropriate regional ITS architecture, applicable standards, 
and protocols developed under subsection (a) or (c). 
‘‘(2) DISCRETION OF THE SECRETARY.—The Secretary, at the 
discretion of the Secretary, may offer an exemption from para-
graph (1) for projects designed to achieve specific research 
objectives outlined in the national intelligent transportation 
system program plan or the surface transportation research 
and development strategic plan developed under section 508.’’. 
(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 
title 23, United States Code, is amended by adding after the item 
relating to section 516 (as added by section 53004) the following: 
‘‘517. National architecture and standards.’’.
H. R. 4348—500 
SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRASTRUCTURE 
COMMUNICATIONS SYSTEMS DEPLOYMENT. 
(a) IN GENERAL.—Chapter 5 of title 23, United States Code, 
is amended by adding after section 517 (as added by section 53005) 
the following: 
‘‘§ 518. 
Vehicle-to-vehicle 
and 
vehicle-to-infrastructure 
communications systems deployment 
‘‘(a) IN GENERAL.—Not later than 3 years after the date of 
enactment of this section, the Secretary shall submit to the Commit-
tees on Commerce, Science, and Transportation and Environment 
and Public Works of the Senate and the Committees on Transpor-
tation and Infrastructure, Energy and Commerce, and Science, 
Space, and Technology of the House of Representatives that— 
‘‘(1) assesses the status of dedicated short-range commu-
nications technology and applications developed through 
research and development; 
‘‘(2) analyzes the known and potential gaps in short-range 
communications technology and applications; 
‘‘(3) defines a recommended implementation path for dedi-
cated short-range communications technology and applications 
that— 
‘‘(A) is based on the assessment described in paragraph 
(1); and 
‘‘(B) takes into account the analysis described in para-
graph (2); 
‘‘(4) includes guidance on the relationship of the proposed 
deployment of dedicated short-range communications to the 
National ITS Architecture and ITS Standards; and 
‘‘(5) ensures competition by not preferencing the use of 
any particular frequency for vehicle to infrastructure oper-
ations. 
‘‘(b) REPORT REVIEW.—The Secretary shall enter into agree-
ments with the National Research Council and an independent 
third party with subject matter expertise for the review of the 
report described in subsection (a).’’.
H. R. 4348—501 
(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 
title 23, United States Code, is amended by adding after section 
517 (as added by section 53005) the following: 
‘‘518. Vehicle-to-vehicle and vehicle-to-infrastructure communications systems de-
ployment.’’. 
DIVISION F—MISCELLANEOUS 
TITLE I—REAUTHORIZATION OF 
CERTAIN PROGRAMS 
Subtitle A—Secure Rural Schools and 
Community Self-determination Program 
SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETER-
MINATION PROGRAM. 
(a) AMENDMENTS.—The Secure Rural Schools and Community 
Self-Determination Act of 2000 (16 U.S.C. 7101 et seq.) is 
amended— 
(1) in section 3(11)— 
(A) in subparagraph (A), by striking ‘‘and’’ after the 
semicolon at the end; 
(B) in subparagraph (B)— 
(i) by striking ‘‘fiscal year 2009 and each fiscal 
year thereafter’’ and inserting ‘‘each of fiscal years 
2009 through 2011’’; and 
(ii) by striking the period at the end and inserting 
‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) for fiscal year 2012 and each fiscal year thereafter, 
the amount that is equal to 95 percent of the full funding 
amount for the preceding fiscal year.’’; 
(2) in sections 101, 102, 203, 207, 208, 304, and 402, by 
striking ‘‘2011’’ each place it appears and inserting ‘‘2012’’; 
(3) in section 102— 
(A) by striking ‘‘2008’’ each place it appears and 
inserting ‘‘2012’’; 
(B) in subsection (b)(2)(B), by inserting ‘‘in 2012’’ before 
‘‘, the election’’; and 
(C) in subsection (d)— 
(i) in paragraph (1)(A), by striking ‘‘paragraph 
(3)(B)’’ and inserting ‘‘subparagraph (D)’’; and 
(ii) in paragraph (3)— 
(I) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) NOTIFICATION.—The Governor of each eligible 
State shall notify the Secretary concerned of an election 
by an eligible county under this subsection not later than 
September 30, 2012, and each September 30 thereafter 
for each succeeding fiscal year.’’; 
(II) by redesignating subparagraph (B) as 
subparagraph (D) and moving the subparagraph 
so as to appear at the end of paragraph (1) of 
subsection (d); and
H. R. 4348—502 
(III) by inserting after subparagraph (A) the 
following: 
‘‘(B) FAILURE TO ELECT.—If the Governor of an eligible 
State fails to notify the Secretary concerned of the election 
for an eligible county by the date specified in subparagraph 
(A)— 
‘‘(i) the eligible county shall be considered to have 
elected to expend 80 percent of the funds in accordance 
with paragraph (1)(A); and 
‘‘(ii) the remainder shall be available to the Sec-
retary concerned to carry out projects in the eligible 
county to further the purpose described in section 
202(b).’’; 
(4) in section 103(d)(2), by striking ‘‘fiscal year 2011’’ and 
inserting ‘‘each of fiscal years 2011 and 2012’’; 
(5) in section 202, by adding at the end the following: 
‘‘(c) ADMINISTRATIVE EXPENSES.—A resource advisory committee 
may, in accordance with section 203, propose to use not more 
than 10 percent of the project funds of an eligible county for any 
fiscal year for administrative expenses associated with operating 
the resource advisory committee under this title.’’; 
(6) in section 204(e)(3)(B)(iii), by striking ‘‘and 2011’’ and 
inserting ‘‘through 2012’’; 
(7) in section 205(a)(4), by striking ‘‘2006’’ each place it 
appears and inserting ‘‘2011’’; 
(8) in section 208(b), by striking ‘‘2012’’ and inserting 
‘‘2013’’; 
(9) in section 302(a)(2)(A), by inserting ‘‘and’’ after the 
semicolon; and 
(10) in section 304(b), by striking ‘‘2012’’ and inserting 
‘‘2013’’. 
(b) FAILURE TO MAKE ELECTION.—For each county that failed 
to make an election for fiscal year 2011 in accordance with section 
102(d)(3)(A) of the Secure Rural Schools and Community Self-Deter-
mination Act of 2000 (16 U.S.C. 7112(d)(3)(A)), there shall be avail-
able to the Secretary of Agriculture to carry out projects to further 
the purpose described in section 202(b) of that Act (16 U.S.C. 
7122(b)), from amounts in the Treasury not otherwise appropriated, 
the amount that is equal to 15 percent of the total share of the 
State payment that otherwise would have been made to the county 
under that Act for fiscal year 2011. 
Subtitle B—Payment in Lieu of Taxes 
Program 
SEC. 100111. PAYMENTS IN LIEU OF TAXES. 
Section 6906 of title 31, United States Code, is amended by 
striking ‘‘2012’’ and inserting ‘‘2013’’. 
Subtitle C—Offsets 
SEC. 100121. PHASED RETIREMENT AUTHORITY. 
(a) CSRS.—Chapter 83 of title 5, United States Code, is 
amended— 
(1) in section 8331—
H. R. 4348—503 
(A) in paragraph (30) by striking ‘‘and’’ at the end; 
(B) in paragraph (31) by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(32) ‘Director’ means the Director of the Office of Personnel 
Management.’’; 
(2) by inserting after section 8336 the following: 
‘‘§ 8336a. Phased retirement 
‘‘(a) For the purposes of this section— 
‘‘(1) the term ‘composite retirement annuity’ means the 
annuity computed when a phased retiree attains full retirement 
status; 
‘‘(2) the term ‘full retirement status’ means that a phased 
retiree has ceased employment and is entitled, upon application, 
to a composite retirement annuity; 
‘‘(3) the term ‘phased employment’ means the less-than- 
full-time employment of a phased retiree; 
‘‘(4) the term ‘phased retiree’ means a retirement-eligible 
employee who— 
‘‘(A) makes an election under subsection (b); and 
‘‘(B) has not entered full retirement status; 
‘‘(5) the term ‘phased retirement annuity’ means the 
annuity payable under this section before full retirement; 
‘‘(6) the term ‘phased retirement percentage’ means the 
percentage which, when added to the working percentage for 
a phased retiree, produces a sum of 100 percent; 
‘‘(7) the term ‘phased retirement period’ means the period 
beginning on the date on which an individual becomes entitled 
to receive a phased retirement annuity and ending on the 
date on which the individual dies or separates from phased 
employment; 
‘‘(8) the term ‘phased retirement status’ means that a 
phased retiree is concurrently employed in phased employment 
and eligible to receive a phased retirement annuity; 
‘‘(9) the term ‘retirement-eligible employee’— 
‘‘(A) means an individual who, if the individual sepa-
rated from the service, would meet the requirements for 
retirement under subsection (a) or (b) of section 8336; but 
‘‘(B) does not include an employee described in section 
8335 after the date on which the employee is required 
to be separated from the service by reason of such section; 
and 
‘‘(10) the term ‘working percentage’ means the percentage 
of full-time employment equal to the quotient obtained by 
dividing— 
‘‘(A) the number of hours per pay period to be worked 
by a phased retiree, as scheduled in accordance with sub-
section (b)(2); by 
‘‘(B) the number of hours per pay period to be worked 
by an employee serving in a comparable position on a 
full-time basis. 
‘‘(b)(1) With the concurrence of the head of the employing 
agency, and under regulations promulgated by the Director, a retire-
ment-eligible employee who has been employed on a full-time basis 
for not less than the 3-year period ending on the date on which
H. R. 4348—505 
‘‘(5) Any reduction of a phased retirement annuity based on 
an election under section 8334(d)(2) shall be applied to the phased 
retirement annuity after computation under paragraph (1). 
‘‘(6)(A) Any deposit, or election of an actuarial annuity reduction 
in lieu of a deposit, for military service or for creditable civilian 
service for which retirement deductions were not made or refunded 
shall be made by a retirement-eligible employee at or before the 
time the retirement-eligible employee enters phased retirement 
status. No such deposit may be made, or actuarial adjustment 
in lieu thereof elected, at the time a phased retiree enters full 
retirement status. 
‘‘(B) Notwithstanding subparagraph (A), if a phased retiree 
does not make such a deposit and dies in service as a phased 
retiree, a survivor of the phased retiree shall have the same right 
to make such deposit as would have been available had the 
employee not entered phased retirement status and died in service. 
‘‘(C) If a phased retiree makes an election for an actuarial 
annuity reduction under section 8334(d)(2) and dies in service as 
a phased retiree, the amount of any deposit upon which such 
actuarial reduction shall have been based shall be deemed to have 
been fully paid. 
‘‘(7) A phased retirement annuity shall commence on the date 
on which a phased retiree enters phased employment. 
‘‘(8) No unused sick leave credit may be used in the computation 
of the phased retirement annuity. 
‘‘(d) All basic pay not in excess of the full-time rate of pay 
for the position to which a phased retiree is appointed shall be 
deemed to be basic pay for purposes of section 8334. 
‘‘(e) Under such procedures as the Director may prescribe, 
a phased retiree may elect to enter full retirement status at any 
time. Upon making such an election, a phased retiree shall be 
entitled to a composite retirement annuity. 
‘‘(f)(1) Except as provided otherwise under this subsection, a 
composite retirement annuity is a single annuity computed under 
regulations prescribed by the Director, equal to the sum of— 
‘‘(A) the amount of the phased retirement annuity as of 
the date of full retirement, before any reduction based on 
an election under section 8334(d)(2), and including any adjust-
ments made under section 8340; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the amount of an annuity computed under section 
8339 that would have been payable at the time of full 
retirement if the individual had not elected a phased retire-
ment and as if the individual was employed on a full- 
time basis in the position occupied during the phased retire-
ment period and before any reduction for survivor annuity 
or reduction based on an election under section 8334(d)(2); 
by 
‘‘(ii) the working percentage. 
‘‘(2) After computing a composite retirement annuity under 
paragraph (1), the Director shall adjust the amount of the annuity 
for any applicable reductions for a survivor annuity and any pre-
viously elected actuarial reduction under section 8334(d)(2). 
‘‘(3) A composite retirement annuity shall be adjusted in accord-
ance with section 8340, except that subsection (c)(1) of that section 
shall not apply.
H. R. 4348—506 
‘‘(4) In computing a composite retirement annuity under para-
graph (1)(B)(i), the unused sick leave to the credit of a phased 
retiree at the time of entry into full retirement status shall be 
adjusted by dividing the number of hours of unused sick leave 
by the working percentage. 
‘‘(g)(1) Under such procedures and conditions as the Director 
may provide, and with the concurrence of the head of the employing 
agency, a phased retiree may elect to terminate phased retirement 
status and return to a full-time work schedule. 
‘‘(2) Upon entering a full-time work schedule based upon an 
election under paragraph (1), the phased retirement annuity of 
a phased retiree shall terminate. 
‘‘(3) After the termination of a phased retirement annuity under 
this subsection, the individual’s rights under this subchapter shall 
be determined based on the law in effect at the time of any subse-
quent separation from service. For purposes of this subchapter 
or chapter 84, at time of the subsequent separation from service, 
the phased retirement period shall be treated as if it had been 
a period of part-time employment with the work schedule described 
in subsection (b)(2). 
‘‘(h) For purposes of section 8341— 
‘‘(1) the death of a phased retiree shall be deemed to 
be the death in service of an employee; and 
‘‘(2) the phased retirement period shall be deemed to have 
been a period of part-time employment with the work schedule 
described in subsection (b)(2). 
‘‘(i) Employment of a phased retiree shall not be deemed to 
be part-time career employment, as defined in section 3401(2). 
‘‘(j) A phased retiree is not eligible to apply for an annuity 
under section 8337. 
‘‘(k) For purposes of section 8341(h)(4), retirement shall be 
deemed to occur on the date on which a phased retiree enters 
into full retirement status. 
‘‘(l) For purposes of sections 8343 and 8351, and subchapter 
III of chapter 84, a phased retiree shall be deemed to be an 
employee. 
‘‘(m) A phased retiree is not subject to section 8344. 
‘‘(n) For purposes of chapter 87, a phased retiree shall be 
deemed to be receiving basic pay at the rate of a full-time employee 
in the position to which the phased retiree is appointed.’’; and 
(3) in the table of sections by inserting after the item 
relating to section 8336 the following: 
‘‘8336a. Phased retirement.’’. 
(b) FERS.—Chapter 84 of title 5, United States Code, is 
amended— 
(1) by inserting after section 8412 the following new section: 
‘‘§ 8412a. Phased retirement 
‘‘(a) For the purposes of this section— 
‘‘(1) the term ‘composite retirement annuity’ means the 
annuity computed when a phased retiree attains full retirement 
status; 
‘‘(2) the term ‘full retirement status’ means that a phased 
retiree has ceased employment and is entitled, upon application, 
to a composite retirement annuity;
H. R. 4348—507 
‘‘(3) the term ‘phased employment’ means the less-than- 
full-time employment of a phased retiree; 
‘‘(4) the term ‘phased retiree’ means a retirement-eligible 
employee who— 
‘‘(A) makes an election under subsection (b); and 
‘‘(B) has not entered full retirement status; 
‘‘(5) the term ‘phased retirement annuity’ means the 
annuity payable under this section before full retirement; 
‘‘(6) the term ‘phased retirement percentage’ means the 
percentage which, when added to the working percentage for 
a phased retiree, produces a sum of 100 percent; 
‘‘(7) the term ‘phased retirement period’ means the period 
beginning on the date on which an individual becomes entitled 
to receive a phased retirement annuity and ending on the 
date on which the individual dies or separates from phased 
employment; 
‘‘(8) the term ‘phased retirement status’ means that a 
phased retiree is concurrently employed in phased employment 
and eligible to receive a phased retirement annuity; 
‘‘(9) the term ‘retirement-eligible employee’— 
‘‘(A) means an individual who, if the individual sepa-
rated from the service, would meet the requirements for 
retirement under subsection (a) or (b) of section 8412; and 
‘‘(B) does not include— 
‘‘(i) an individual who, if the individual separated 
from the service, would meet the requirements for 
retirement under subsection (d) or (e) of section 8412; 
but 
‘‘(ii) does not include an employee described in 
section 8425 after the date on which the employee 
is required to be separated from the service by reason 
of such section; and 
‘‘(10) the term ‘working percentage’ means the percentage 
of full-time employment equal to the quotient obtained by 
dividing— 
‘‘(A) the number of hours per pay period to be worked 
by a phased retiree, as scheduled in accordance with sub-
section (b)(2); by 
‘‘(B) the number of hours per pay period to be worked 
by an employee serving in a comparable position on a 
full-time basis. 
‘‘(b)(1) With the concurrence of the head of the employing 
agency, and under regulations promulgated by the Director, a retire-
ment-eligible employee who has been employed on a full-time basis 
for not less than the 3-year period ending on the date on which 
the retirement-eligible employee makes an election under this sub-
section may elect to enter phased retirement status. 
‘‘(2)(A) Subject to subparagraph (B), at the time of entering 
phased retirement status, a phased retiree shall be appointed to 
a position for which the working percentage is 50 percent. 
‘‘(B) The Director may, by regulation, provide for working 
percentages different from the percentage specified under subpara-
graph (A), which shall be not less than 20 percent and not more 
than 80 percent. 
‘‘(C) The working percentage for a phased retiree may not 
be changed during the phased retiree’s phased retirement period.
H. R. 4348—508 
‘‘(D)(i) Not less than 20 percent of the hours to be worked 
by a phased retiree shall consist of mentoring. 
‘‘(ii) The Director may, by regulation, provide for exceptions 
to the requirement under clause (i). 
‘‘(iii) Clause (i) shall not apply to a phased retiree serving 
in the United States Postal Service. Nothing in this clause shall 
prevent the application of clause (i) or (ii) with respect to a phased 
retiree serving in the Postal Regulatory Commission. 
‘‘(3) A phased retiree— 
‘‘(A) may not be employed in more than one position at 
any time; and 
‘‘(B) may transfer to another position in the same or a 
different agency, only if the transfer does not result in a change 
in the working percentage. 
‘‘(4) A retirement-eligible employee may make not more than 
one election under this subsection during the retirement-eligible 
employee’s lifetime. 
‘‘(5) A retirement-eligible employee who makes an election 
under this subsection may not make an election under section 
8420a. 
‘‘(c)(1) Except as otherwise provided under this subsection, the 
phased retirement annuity for a phased retiree is the product 
obtained by multiplying— 
‘‘(A) the amount of an annuity computed under section 
8415 that would have been payable to the phased retiree if, 
on the date on which the phased retiree enters phased retire-
ment status, the phased retiree had separated from service 
and retired under section 8412 (a) or (b); by 
‘‘(B) the phased retirement percentage for the phased 
retiree. 
‘‘(2) A phased retirement annuity shall be paid in addition 
to the basic pay for the position to which a phased retiree is 
appointed during the phased employment. 
‘‘(3) A phased retirement annuity shall be adjusted in accord-
ance with section 8462. 
‘‘(4)(A) A phased retirement annuity shall not be subject to 
reduction for any form of survivor annuity, shall not serve as 
the basis of the computation of any survivor annuity, and shall 
not be subject to any court order requiring a survivor annuity 
to be provided to any individual. 
‘‘(B) A phased retirement annuity shall be subject to a court 
order providing for division, allotment, assignment, execution, levy, 
attachment, garnishment, or other legal process on the same basis 
as other annuities. 
‘‘(5)(A) Any deposit, or election of an actuarial annuity reduction 
in lieu of a deposit, for military service or for creditable civilian 
service for which retirement deductions were not made or refunded, 
shall be made by a retirement-eligible employee at or before the 
time the retirement-eligible employee enters phased retirement 
status. No such deposit may be made, or actuarial adjustment 
in lieu thereof elected, at the time a phased retiree enters full 
retirement status. 
‘‘(B) Notwithstanding subparagraph (A), if a phased retiree 
does not make such a deposit and dies in service as a phased 
retiree, a survivor of the phased retiree shall have the same right 
to make such deposit as would have been available had the 
employee not entered phased retirement status and died in service.
H. R. 4348—509 
‘‘(6) A phased retirement annuity shall commence on the date 
on which a phased retiree enters phased employment. 
‘‘(7) No unused sick leave credit may be used in the computation 
of the phased retirement annuity. 
‘‘(d) All basic pay not in excess of the full-time rate of pay 
for the position to which a phased retiree is appointed shall be 
deemed to be basic pay for purposes of sections 8422 and 8423. 
‘‘(e) Under such procedures as the Director may prescribe, 
a phased retiree may elect to enter full retirement status at any 
time. Upon making such an election, a phased retiree shall be 
entitled to a composite retirement annuity. 
‘‘(f)(1) Except as provided otherwise under this subsection, a 
composite retirement annuity is a single annuity computed under 
regulations prescribed by the Director, equal to the sum of— 
‘‘(A) the amount of the phased retirement annuity as of 
the date of full retirement, including any adjustments made 
under section 8462; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the amount of an annuity computed under section 
8412 that would have been payable at the time of full 
retirement if the individual had not elected a phased retire-
ment and as if the individual was employed on a full- 
time basis in the position occupied during the phased retire-
ment period and before any adjustment to provide for a 
survivor annuity; by 
‘‘(ii) the working percentage. 
‘‘(2) After computing a composite retirement annuity under 
paragraph (1), the Director shall adjust the amount of the annuity 
for any applicable reductions for a survivor annuity. 
‘‘(3) A composite retirement annuity shall be adjusted in accord-
ance with section 8462, except that subsection (c)(1) of that section 
shall not apply. 
‘‘(4) In computing a composite retirement annuity under para-
graph (1)(B)(i), the unused sick leave to the credit of a phased 
retiree at the time of entry into full retirement status shall be 
adjusted by dividing the number of hours of unused sick leave 
by the working percentage. 
‘‘(g)(1) Under such procedures and conditions as the Director 
may provide, and with the concurrence of the head of employing 
agency, a phased retiree may elect to terminate phased retirement 
status and return to a full-time work schedule. 
‘‘(2) Upon entering a full-time work schedule based on an elec-
tion under paragraph (1), the phased retirement annuity of a phased 
retiree shall terminate. 
‘‘(3) After termination of the phased retirement annuity under 
this subsection, the individual’s rights under this chapter shall 
be determined based on the law in effect at the time of any subse-
quent separation from service. For purposes of this chapter, at 
the time of the subsequent separation from service, the phased 
retirement period shall be treated as if it had been a period of 
part-time employment with the work schedule described in sub-
section (b)(2). 
‘‘(h) For purposes of subchapter IV— 
‘‘(1) the death of a phased retiree shall be deemed to 
be the death in service of an employee; 
‘‘(2) except for purposes of section 8442(b)(1)(A)(i), the 
phased retirement period shall be deemed to have been a period
H. R. 4348—510 
of part-time employment with the work schedule described 
in subsection (b)(2) of this section; and 
‘‘(3) for purposes of section 8442(b)(1)(A)(i), the phased 
retiree shall be deemed to have been at the full-time rate 
of pay for the position occupied. 
‘‘(i) Employment of a phased retiree shall not be deemed to 
be part-time career employment, as defined in section 3401(2). 
‘‘(j) A phased retiree is not eligible to receive an annuity supple-
ment under section 8421. 
‘‘(k) For purposes of subchapter III, a phased retiree shall 
be deemed to be an employee. 
‘‘(l) For purposes of section 8445(d), retirement shall be deemed 
to occur on the date on which a phased retiree enters into full 
retirement status. 
‘‘(m) A phased retiree is not eligible to apply for an annuity 
under subchapter V. 
‘‘(n) A phased retiree is not subject to section 8468. 
‘‘(o) For purposes of chapter 87, a phased retiree shall be 
deemed to be receiving basic pay at the rate of a full-time employee 
in the position to which the phased retiree is appointed.’’; and 
(2) in the table of sections by inserting after the item 
relating to section 8412 the following: 
‘‘8412a. Phased retirement.’’. 
(c) EXEMPTION FROM 10-PERCENT ADDITIONAL TAX ON EARLY 
DISTRIBUTIONS.—Section 72(t)(2)(A) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘or’’ at the end of clause (vi), 
by striking the period at the end of clause (vii) and inserting 
‘‘, or’’, and by adding at the end the following: 
‘‘(viii) payments under a phased retirement 
annuity under section 8366a(a)(5) or 8412a(a)(5) of title 
5, United States Code, or a composite retirement 
annuity under section 8366a(a)(1) or 8412a(a)(1) of 
such title.’’. 
(d) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall take effect on the effective date of the implementing 
regulations issued by the Director of the Office of Personnel 
Management. 
SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES. 
(a) IN GENERAL.—Subsection (d) of section 5702 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following 
new flush sentence: 
‘‘Such term shall include any person who for commercial purposes 
makes available for consumer use (including such consumer’s per-
sonal consumption or use under paragraph (1)) a machine capable 
of making cigarettes, cigars, or other tobacco products. A person 
making such a machine available for consumer use shall be deemed 
the person making the removal as defined by subsection (j) with 
respect to any tobacco products manufactured by such machine. 
A person who sells a machine directly to a consumer at retail 
for a consumer’s personal home use is not making a machine 
available for commercial purposes if such machine is not used 
at a retail premises and is designed to produce tobacco products 
only in personal use quantities.’’.
H. R. 4348—511 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to articles removed after the date of the enactment 
of this Act. 
SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY 
STATES. 
(a) ACCELERATED
DATE
FOR
PRIOR
AMENDMENTS.—Section 
3204(b) of the Middle Class Tax Relief and Job Creation Act of 
2012 (Public Law 112–96) is amended by striking ‘‘October 1, 2013’’ 
and inserting ‘‘October 1, 2012’’. 
(b) APPLICATION
OF 50 PERCENT
IN FISCAL YEAR 2013.— 
Subparagraph (B) of section 1905(aa)(1) of the Social Security Act 
(42 U.S.C. 1396d(aa)(1)), as amended by section 3204(a) of Public 
Law 112–96, is amended by striking ‘‘25 percent’’ and inserting 
‘‘25 percent (or 50 percent in the case of fiscal year 2013)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall be effective as if included in the enactment of section 3204 
of Public Law 112–96. 
SEC. 100124. REPEALS. 
(a) TRANSPORTATION REQUIREMENTS
FOR CERTAIN EXPORTS 
SPONSORED BY THE SECRETARY OF AGRICULTURE.— 
(1) REPEAL.—Subsections (a) and (c) of section 55314 of 
title 46, United States Code, are repealed. 
(2) ACTIVITIES DESCRIBED.—Subsection (b) of section 55314 
of title 46, United States Code, is amended by striking ‘‘This 
section applies to export activity’’ and inserting ‘‘The activities 
specified in this subsection are export activities’’. 
(b) 
FINANCING
THE
TRANSPORTATION
OF
AGRICULTURAL 
COMMODITIES.—Subsection (a) of section 55316 of title 46, United 
States Code, is repealed. 
(c) CONFORMING AMENDMENTS.— 
(1) MINIMUM TONNAGE.—Section 55315(b) of title 46, United 
States Code, is amended by striking ‘‘subject to section 55314’’ 
and inserting ‘‘specified in section 55314(b)’’. 
(2) ISSUANCE AND PURCHASE OF OBLIGATIONS AND NOTIFICA-
TION TO CONGRESS OF INSUFFICIENCY.—Section 55316 of title 
46, United States Code, is amended— 
(A) in subsection (c)(1) by striking ‘‘under subsections 
(a) and (b)’’ and inserting ‘‘under subsection (b)’’; and 
(B) in subsection (f) by striking ‘‘subsections (a) and 
(b) and section 55314(a) of this title’’ and inserting ‘‘sub-
section (b)’’. 
(3) TERMINATION OF SUBCHAPTER.—Section 55317 of title 
46, United States Code, is amended by striking ‘‘sections 
55314(a) and 55316(a) and (b)’’ and inserting ‘‘section 55316(b)’’. 
SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE 
RECLAMATION FUND. 
Section 411(h) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1240a(h)) is amended by adding at the 
end the following: 
‘‘(5) LIMITATION ON ANNUAL PAYMENTS.—Notwithstanding 
any other provision of this subsection, the total annual payment 
to a certified State or Indian tribe under this subsection shall 
be not more than $15,000,000.’’.
H. R. 4348—512 
TITLE II—FLOOD INSURANCE 
Subtitle A—Flood Insurance Reform and 
Modernization 
SEC. 100201. SHORT TITLE. 
This subtitle may be cited as the ‘‘Biggert-Waters Flood Insur-
ance Reform Act of 2012’’. 
SEC. 100202. DEFINITIONS. 
(a) IN GENERAL.—In this subtitle, the following definitions shall 
apply: 
(1) 100-YEAR FLOODPLAIN.—The term ‘‘100-year floodplain’’ 
means that area which is subject to inundation from a flood 
having a 1-percent chance of being equaled or exceeded in 
any given year. 
(2) 500-YEAR FLOODPLAIN.—The term ‘‘500-year floodplain’’ 
means that area which is subject to inundation from a flood 
having a 0.2-percent chance of being equaled or exceeded in 
any given year. 
(3) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 
Administrator of the Federal Emergency Management Agency. 
(4) NATIONAL
FLOOD
INSURANCE
PROGRAM.—The term 
‘‘National Flood Insurance Program’’ means the program estab-
lished under the National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.). 
(5) WRITE YOUR OWN.—The term ‘‘Write Your Own’’ means 
the cooperative undertaking between the insurance industry 
and the Federal Insurance Administration which allows partici-
pating property and casualty insurance companies to write 
and service standard flood insurance policies. 
(b) COMMON TERMINOLOGY.—Except as otherwise provided in 
this subtitle, any terms used in this subtitle shall have the meaning 
given to such terms under section 1370 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4121). 
SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM. 
(a) FINANCING.—Section 1309(a) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking ‘‘July 
31, 2012’’ and inserting ‘‘September 30, 2017’’. 
(b) PROGRAM EXPIRATION.—Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
‘‘July 31, 2012’’ and inserting ‘‘September 30, 2017’’. 
SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROP-
ERTIES. 
Section 1305 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4012) is amended— 
(1) in subsection (b)(2)(A), by inserting ‘‘not described in 
subsection (a) or (d)’’ after ‘‘properties’’; and 
(2) by adding at the end the following: 
‘‘(d) AVAILABILITY
OF
INSURANCE
FOR
MULTIFAMILY
PROP-
ERTIES.— 
‘‘(1) IN
GENERAL.—The Administrator shall make flood 
insurance available to cover residential properties of 5 or more 
residences. Notwithstanding any other provision of law, the
H. R. 4348—513 
maximum coverage amount that the Administrator may make 
available under this subsection to such residential properties 
shall be equal to the coverage amount made available to 
commercial properties. 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to limit the ability of individuals residing 
in residential properties of 5 or more residences to obtain 
insurance for the contents and personal articles located in 
such residences.’’. 
SEC. 100205. REFORM OF PREMIUM RATE STRUCTURE. 
(a) TO EXCLUDE CERTAIN PROPERTIES FROM RECEIVING SUB-
SIDIZED PREMIUM RATES.— 
(1) IN GENERAL.—Section 1307 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4014) is amended— 
(A) in subsection (a)(2), by striking ‘‘for any residential 
property which is not the primary residence of an indi-
vidual; and’’ and inserting the following: ‘‘for— 
‘‘(A) any residential property which is not the primary 
residence of an individual; 
‘‘(B) any severe repetitive loss property; 
‘‘(C) any property that has incurred flood-related dam-
age in which the cumulative amounts of payments under 
this title equaled or exceeded the fair market value of 
such property; 
‘‘(D) any business property; or 
‘‘(E) any property which on or after the date of enact-
ment of the Biggert-Waters Flood Insurance Reform Act 
of 2012 has experienced or sustained— 
‘‘(i) substantial damage exceeding 50 percent of 
the fair market value of such property; or 
‘‘(ii) substantial improvement exceeding 30 percent 
of the fair market value of such property; and’’; and 
(B) by adding at the end the following: 
‘‘(g) NO EXTENSION OF SUBSIDY TO NEW POLICIES OR LAPSED 
POLICIES.—The Administrator shall not provide flood insurance to 
prospective insureds at rates less than those estimated under sub-
section (a)(1), as required by paragraph (2) of that subsection, 
for— 
‘‘(1) any property not insured by the flood insurance pro-
gram as of the date of enactment of the Biggert-Waters Flood 
Insurance Reform Act of 2012; 
‘‘(2) any property purchased after the date of enactment 
of the Biggert-Waters Flood Insurance Reform Act of 2012; 
‘‘(3) any policy under the flood insurance program that 
has lapsed in coverage, as a result of the deliberate choice 
of the holder of such policy; or 
‘‘(4) any prospective insured who refuses to accept any 
offer for mitigation assistance by the Administrator (including 
an offer to relocate), including an offer of mitigation assist-
ance— 
‘‘(A) following a major disaster, as defined in section 
102 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5122); or 
‘‘(B) in connection with— 
‘‘(i) a repetitive loss property; or 
‘‘(ii) a severe repetitive loss property.
H. R. 4348—514 
‘‘(h) DEFINITION.—In this section, the term ‘severe repetitive 
loss property’ has the following meaning: 
‘‘(1) SINGLE-FAMILY PROPERTIES.—In the case of a property 
consisting of 1 to 4 residences, such term means a property 
that— 
‘‘(A) is covered under a contract for flood insurance 
made available under this title; and 
‘‘(B) has incurred flood-related damage— 
‘‘(i) for which 4 or more separate claims payments 
have been made under flood insurance coverage under 
this chapter, with the amount of each such claim 
exceeding $5,000, and with the cumulative amount 
of such claims payments exceeding $20,000; or 
‘‘(ii) for which at least 2 separate claims payments 
have been made under such coverage, with the cumu-
lative amount of such claims exceeding the value of 
the property. 
‘‘(2) MULTIFAMILY PROPERTIES.—In the case of a property 
consisting of 5 or more residences, such term shall have such 
meaning as the Director shall by regulation provide.’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall become effective 90 days after the date of enactment 
of this Act. 
(b) ESTIMATES OF PREMIUM RATES.—Section 1307(a)(1)(B) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) 
is amended— 
(1) in clause (ii), by striking ‘‘and’’ at the end; 
(2) in clause (iii), by adding ‘‘and’’ at the end; and 
(3) by inserting after clause (iii) the following: 
‘‘(iv) all costs, as prescribed by principles and 
standards of practice in ratemaking adopted by the 
American Academy of Actuaries and the Casualty Actu-
arial Society, including— 
‘‘(I) an estimate of the expected value of future 
costs, 
‘‘(II) all costs associated with the transfer of 
risk, and 
‘‘(III) the costs associated with an individual 
risk transfer with respect to risk classes, as defined 
by the Administrator,’’. 
(c) INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.— 
Section 1308(e) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(e)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘or (3)’’; and 
(B) by inserting ‘‘any properties’’ after ‘‘under this title 
for’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘any properties within any single’’ and 
inserting ‘‘within any single’’; and 
(B) by striking ‘‘10 percent’’ and inserting ‘‘20 percent’’; 
and 
(3) by striking paragraph (2) and inserting the following: 
‘‘(2) described in subparagraphs (A) through (E) of section 
1307(a)(2) shall be increased by 25 percent each year, until 
the average risk premium rate for such properties is equal
H. R. 4348—515 
to the average of the risk premium rates for properties 
described under paragraph (1).’’. 
(d) PREMIUM PAYMENT FLEXIBILITY
FOR NEW
AND EXISTING 
POLICYHOLDERS.—Section 1308 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015) is amended by adding at the end 
the following: 
‘‘(g) FREQUENCY
OF PREMIUM COLLECTION.—With respect to 
any chargeable premium rate prescribed under this section, the 
Administrator shall provide policyholders that are not required 
to escrow their premiums and fees for flood insurance as set forth 
under section 102 of the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4012a) with the option of paying their premiums either 
annually or in more frequent installments.’’. 
(e) RULE OF CONSTRUCTION.—Nothing in this section or the 
amendments made by this section may be construed to affect the 
requirement under section 2(c) of the Act entitled ‘‘An Act to extend 
the National Flood Insurance Program, and for other purposes’’, 
approved May 31, 2012 (Public Law 112–123), that the first increase 
in chargeable risk premium rates for residential properties which 
are not the primary residence of an individual take effect on July 
1, 2012. 
SEC. 100207. PREMIUM ADJUSTMENT. 
Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by section 100205, is further amended 
by adding at the end the following: 
‘‘(h) PREMIUM ADJUSTMENT TO REFLECT CURRENT RISK
OF 
FLOOD.—Notwithstanding subsection (f), upon the effective date 
of any revised or updated flood insurance rate map under this 
Act, the Flood Disaster Protection Act of 1973, or the Biggert- 
Waters Flood Insurance Reform Act of 2012, any property located 
in an area that is participating in the national flood insurance 
program shall have the risk premium rate charged for flood insur-
ance on such property adjusted to accurately reflect the current 
risk of flood to such property, subject to any other provision of 
this Act. Any increase in the risk premium rate charged for flood 
insurance on any property that is covered by a flood insurance 
policy on the effective date of such an update that is a result 
of such updating shall be phased in over a 5-year period, at the 
rate of 20 percent for each year following such effective date. 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 a flood insurance 
map, becomes designated as such an area, the chargeable risk 
premium rate for flood insurance under this title that is purchased 
on or after the date of enactment of this subsection with respect 
to any property that is located within such area shall be phased 
in over a 5-year period, at the rate of 20 percent for each year 
following the effective date of such issuance, revision, updating, 
or change.’’. 
SEC. 100208. ENFORCEMENT. 
Section 102(f)(5) of the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4012a(f)(5)) is amended— 
(1) in the first sentence, by striking ‘‘$350’’ and inserting 
‘‘$2,000’’; and 
(2) by striking the second sentence.
H. R. 4348—516 
SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS. 
(a) IN GENERAL.—Paragraph (1) of section 102(d) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended 
to read as follows: 
‘‘(1) REGULATED LENDING INSTITUTIONS.— 
‘‘(A) FEDERAL
ENTITIES
RESPONSIBLE
FOR
LENDING 
REGULATIONS.—Each Federal entity for lending regulation 
(after consultation and coordination with the Federal 
Financial Institutions Examination Council) shall, by regu-
lation, direct that all premiums and fees for flood insurance 
under the National Flood Insurance Act of 1968, for 
improved real estate or a mobile home, shall be paid to 
the regulated lending institution or servicer for any loan 
secured by the improved real estate or mobile home, with 
the same frequency as payments on the loan are made, 
for the duration of the loan. Except as provided in subpara-
graph (C), upon receipt of any premiums or fees, the regu-
lated lending institution or servicer shall deposit such pre-
miums and fees in an escrow account on behalf of the 
borrower. Upon receipt of a notice from the Administrator 
or the provider of the flood insurance that insurance pre-
miums are due, the premiums deposited in the escrow 
account shall be paid to the provider of the flood insurance. 
‘‘(B) LIMITATION.—Except as may be required under 
applicable State law, a Federal entity for lending regulation 
may not direct or require a regulated lending institution 
to deposit premiums or fees for flood insurance under the 
National Flood Insurance Act of 1968 in an escrow account 
on behalf of a borrower under subparagraph (A) or (B), 
if— 
‘‘(i) the regulated lending institution has total 
assets of less than $1,000,000,000; and 
‘‘(ii) on or before the date of enactment of the 
Biggert-Waters Flood Insurance Reform Act of 2012, 
the regulated lending institution— 
‘‘(I) in the case of a loan secured by residential 
improved real estate or a mobile home, was not 
required under Federal or State law to deposit 
taxes, insurance premiums, fees, or any other 
charges in an escrow account for the entire term 
of the loan; and 
‘‘(II) did not have a policy of consistently and 
uniformly requiring the deposit of taxes, insurance 
premiums, fees, or any other charges in an escrow 
account for loans secured by residential improved 
real estate or a mobile home.’’. 
(b) APPLICABILITY.—The amendment made by subsection (a) 
shall apply to any mortgage outstanding or entered into on or 
after the expiration of the 2-year period beginning on the date 
of enactment of this Act. 
SEC. 100210. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE 
NATIONAL FLOOD INSURANCE PROGRAM. 
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 Administrator is’’; and
H. R. 4348—517 
(2) by adding at the end the following: 
‘‘(b) MINIMUM ANNUAL DEDUCTIBLE.— 
‘‘(1) PRE-FIRM PROPERTIES.—For any structure which is cov-
ered by flood insurance under this title, and on which construc-
tion or substantial improvement occurred on or before December 
31, 1974, or before the effective date of an initial flood insurance 
rate map published by the Administrator under section 1360 
for the area in which such structure is located, the minimum 
annual deductible for damage to such structure shall be— 
‘‘(A) $1,500, if the flood insurance coverage for such 
structure covers loss of, or physical damage to, such struc-
ture in an amount equal to or less than $100,000; and 
‘‘(B) $2,000, if the flood insurance coverage for such 
structure covers loss of, or physical damage to, such struc-
ture in an amount greater than $100,000. 
‘‘(2) POST-FIRM PROPERTIES.—For any structure which is 
covered by flood insurance under this title, and on which 
construction 
or 
substantial 
improvement 
occurred 
after 
December 31, 1974, or after the effective date of an initial 
flood insurance rate map published by the Administrator under 
section 1360 for the area in which such structure is located, 
the minimum annual deductible for damage to such structure 
shall be— 
‘‘(A) $1,000, if the flood insurance coverage for such 
structure covers loss of, or physical damage to, such struc-
ture in an amount equal to or less than $100,000; and 
‘‘(B) $1,250, if the flood insurance coverage for such 
structure covers loss of, or physical damage to, such struc-
ture in an amount greater than $100,000.’’. 
SEC. 100211. CONSIDERATIONS IN DETERMINING CHARGEABLE PRE-
MIUM RATES. 
Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by this Act, is amended— 
(1) in subsection (a), by striking ‘‘, after consultation with’’ 
and all that follows through ‘‘by regulation’’ and inserting ‘‘pre-
scribe, after providing notice’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking the period at the 
end and inserting a semicolon; 
(B) in paragraph (2), by striking the comma at the 
end and inserting a semicolon; 
(C) in paragraph (3), by striking ‘‘, and’’ and inserting 
a semicolon; 
(D) in paragraph (4), by striking the period at the 
end and inserting ‘‘; and’’; and 
(E) by adding at the end the following: 
‘‘(5) adequate, on the basis of accepted actuarial principles, 
to cover the average historical loss year obligations incurred 
by the National Flood Insurance Fund.’’; and 
(3) by adding at the end the following: 
‘‘(i) RULE OF CONSTRUCTION.—For purposes of this section, the 
calculation of an ‘average historical loss year’— 
‘‘(1) includes catastrophic loss years; and 
‘‘(2) shall be computed in accordance with generally 
accepted actuarial principles.’’.
H. R. 4348—518 
SEC. 100212. RESERVE FUND. 
Chapter I of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.) is amended by inserting after section 1310 
(42 U.S.C. 4017) the following: 
‘‘SEC. 1310A. RESERVE FUND. 
‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In carrying out the 
flood insurance program authorized by this chapter, the Adminis-
trator 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 accounts or 
funds available to the Administrator; and 
‘‘(2) be available for meeting the expected future obligations 
of the flood insurance program, including— 
‘‘(A) the payment of claims; 
‘‘(B) claims adjustment expenses; and 
‘‘(C) the repayment of amounts outstanding under any 
note or other obligation issued by the Administrator under 
section 1309(a). 
‘‘(b) RESERVE RATIO.—Subject to the phase-in requirements 
under subsection (d), the Reserve Fund shall maintain a balance 
equal to— 
‘‘(1) 1 percent of the sum of the total potential loss exposure 
of all outstanding flood insurance policies in force in the prior 
fiscal year; or 
‘‘(2) such higher percentage as the Administrator deter-
mines to be appropriate, taking into consideration any cir-
cumstance that may raise a significant 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 sub-
section (b); and 
‘‘(B) to achieve such reserve ratio, if the actual balance 
of such reserve is below the amount required under sub-
section (b). 
‘‘(2) CONSIDERATIONS.—In exercising the authority granted 
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; 
‘‘(C) any investment income generated under the flood 
insurance program; and 
‘‘(D) any other factor that the Administrator deter-
mines appropriate. 
‘‘(3) LIMITATIONS.— 
‘‘(A) RATES.—In exercising the authority granted under 
paragraph (1), the Administrator shall be subject to all 
other provisions of this Act, including any provisions 
relating to chargeable premium rates or annual increases 
of such rates.
H. R. 4348—519 
‘‘(B) USE
OF
ADDITIONAL
ANNUAL
INSURANCE
PRE-
MIUMS.—Notwithstanding any other provision of law or 
any agreement entered into by the Administrator, the 
Administrator shall ensure that all amounts attributable 
to the establishment or increase of annual insurance pre-
miums under paragraph (1) are transferred to the Adminis-
trator for deposit into the Reserve Fund, to be available 
for meeting the expected future obligations of the flood 
insurance program as described in subsection (a)(2). 
‘‘(d) PHASE-IN
REQUIREMENTS.—The phase-in requirements 
under this subsection are as follows: 
‘‘(1) IN GENERAL.—Beginning in fiscal year 2013 and not 
ending until the fiscal year in which the ratio required under 
subsection (b) is achieved, in each such fiscal year the Adminis-
trator 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 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 required 
under subsection (b). 
‘‘(e) LIMITATION ON RESERVE RATIO.—In any given fiscal year, 
if the Administrator determines that the reserve ratio required 
under subsection (b) cannot be achieved, the Administrator shall 
submit a report to Congress that— 
‘‘(1) describes and details the specific concerns of the 
Administrator regarding the consequences of the reserve ratio 
not being achieved; 
‘‘(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) INVESTMENT.—The Secretary of the Treasury shall invest 
such amounts of the Reserve Fund as the Secretary determines 
advisable in obligations issued or guaranteed by the United States.’’. 
SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY. 
(a) REPAYMENT PLAN REQUIRED.—Section 1309 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding 
at the end the following: 
‘‘(c) Upon the exercise of the authority established under sub-
section (a), the Administrator shall transmit a schedule for repay-
ment of such amounts to— 
‘‘(1) the Secretary of the Treasury; 
‘‘(2) the Committee on Banking, Housing, and Urban Affairs 
of the Senate; and 
‘‘(3) the Committee on Financial Services of the House 
of Representatives. 
‘‘(d) In connection with any funds borrowed by the Adminis-
trator under the authority established in subsection (a), the
H. R. 4348—520 
Administrator, beginning 6 months after the date on which such 
funds are borrowed, and continuing every 6 months thereafter 
until such borrowed funds are fully repaid, shall submit a report 
on the progress of such repayment to— 
‘‘(1) the Secretary of the Treasury; 
‘‘(2) the Committee on Banking, Housing, and Urban Affairs 
of the Senate; and 
‘‘(3) the Committee on Financial Services of the House 
of Representatives.’’. 
(b) REPORT.—Not later than the expiration of the 6-month 
period beginning on the date of enactment of this Act, the Adminis-
trator shall submit a report to the Congress setting forth options 
for repaying within 10 years all amounts, including 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. 100214. PAYMENT OF CONDOMINIUM CLAIMS. 
Section 1312 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4019), as amended by section 100210, is amended by adding 
at the end the following: 
‘‘(c) PAYMENT
OF CLAIMS
TO CONDOMINIUM OWNERS.—The 
Administrator may not deny payment for any damage to or loss 
of property which is covered by flood insurance to condominium 
owners who purchased such flood insurance separate and apart 
from the flood insurance purchased by the condominium association 
in which such owner is a member, based solely, or in any part, 
on the flood insurance coverage of the condominium association 
or others on the overall property owned by the condominium associa-
tion.’’. 
SEC. 100215. 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 (or the designee thereof); 
(B) the Secretary of the Interior (or the designee 
thereof); 
(C) the Secretary of Agriculture (or the designee 
thereof); 
(D) the Under Secretary of Commerce for Oceans and 
Atmosphere (or the designee thereof); and 
(E) 16 additional members appointed by the Adminis-
trator or the designee of the Administrator, who shall 
be— 
(i) a member of a recognized professional surveying 
association or organization; 
(ii) a member of a recognized professional mapping 
association or organization; 
(iii) a member of a recognized professional 
engineering association or organization; 
(iv) a member of a recognized professional associa-
tion or organization representing flood hazard deter-
mination firms; 
(v) a representative of the United States Geological 
Survey;
H. R. 4348—521 
(vi) a representative of a recognized professional 
association 
or 
organization 
representing 
State 
geographic information; 
(vii) a representative of State national flood insur-
ance coordination offices; 
(viii) a representative of the Corps of Engineers; 
(ix) a member of a recognized regional flood and 
storm water management organization; 
(x) 2 representatives of different State government 
agencies that have entered into cooperating technical 
partnerships with the Administrator and have dem-
onstrated the capability to produce flood insurance rate 
maps; 
(xi) 2 representatives of different local government 
agencies that have entered into cooperating technical 
partnerships with the Administrator and have dem-
onstrated the capability to produce flood insurance 
maps; 
(xii) a member of a recognized floodplain manage-
ment association or organization; 
(xiii) a member of a recognized risk management 
association or organization; and 
(xiv) a State mitigation officer. 
(2) QUALIFICATIONS.—Members of the Council shall be 
appointed based on their demonstrated knowledge and com-
petence regarding surveying, cartography, remote sensing, 
geographic information systems, or the technical aspects of 
preparing and using flood insurance rate maps. In appointing 
members under paragraph (1)(E), the Administrator shall, to 
the maximum extent practicable, ensure that the membership 
of the Council has a balance of Federal, State, local, tribal, 
and private members, and includes geographic diversity, 
including representation from areas with coastline on the Gulf 
of Mexico and other States containing areas identified by the 
Administrator as at high risk for flooding or as areas having 
special flood hazards. 
(c) DUTIES.—The Council shall— 
(1) recommend to the Administrator how to improve in 
a cost-effective manner the— 
(A) accuracy, general quality, ease of use, and distribu-
tion and dissemination of flood insurance rate maps and 
risk data; and 
(B) performance metrics and milestones required to 
effectively and efficiently map flood risk areas in the United 
States; 
(2) recommend to the Administrator mapping standards 
and guidelines for— 
(A) flood insurance rate maps; and 
(B) data accuracy, data quality, data currency, and 
data eligibility; 
(3) recommend to the Administrator how to maintain, on 
an ongoing basis, flood insurance rate maps and flood risk 
identification; 
(4) recommend procedures for delegating mapping activities 
to State and local mapping partners; 
(5) recommend to the Administrator and other Federal 
agencies participating in the Council—
H. R. 4348—522 
(A) methods for improving interagency and intergov-
ernmental coordination on flood mapping and flood risk 
determination; and 
(B) a funding strategy to leverage and coordinate 
budgets and expenditures across Federal agencies; and 
(6) submit an annual report to the Administrator that 
contains— 
(A) a description of the activities of the Council; 
(B) an evaluation of the status and performance of 
flood insurance rate maps and mapping activities to revise 
and update flood insurance rate maps, as required under 
section 100216; and 
(C) a summary of recommendations made by the 
Council to the Administrator. 
(d) FUTURE CONDITIONS RISK ASSESSMENT
AND MODELING 
REPORT.— 
(1) IN GENERAL.—The Council shall consult with scientists 
and technical experts, other Federal agencies, States, and local 
communities to— 
(A) develop recommendations on how to— 
(i) ensure that flood insurance rate maps incor-
porate the best available climate science to assess flood 
risks; and 
(ii) ensure that the Federal Emergency Manage-
ment Agency uses the best available methodology to 
consider the impact of— 
(I) the rise in the sea level; and 
(II) future development on flood risk; and 
(B) not later than 1 year after the date of enactment 
of this Act, prepare written recommendations in a future 
conditions risk assessment and modeling report and to 
submit such recommendations to the Administrator. 
(2) RESPONSIBILITY OF THE ADMINISTRATOR.—The Adminis-
trator, as part of the ongoing program to review and update 
National Flood Insurance Program rate maps under section 
100216, shall incorporate any future risk assessment submitted 
under paragraph (1)(B) in any such revision or update. 
(e) CHAIRPERSON.—The members of the Council shall elect 1 
member to serve as the chairperson of the Council (in this section 
referred to as the ‘‘Chairperson’’). 
(f) COORDINATION.—To ensure that the Council’s recommenda-
tions are consistent, to the maximum extent practicable, with 
national digital spatial data collection and management standards, 
the Chairperson shall consult with the Chairperson of the Federal 
Geographic Data Committee (established pursuant to Office of 
Management and Budget Circular A–16). 
(g) COMPENSATION.—Members of the Council shall receive no 
additional compensation by reason of their service on the Council. 
(h) MEETINGS AND ACTIONS.— 
(1) IN GENERAL.—The Council shall meet not less frequently 
than twice each year at the request of the Chairperson or 
a majority of its members, and may take action by a vote 
of the majority of the members. 
(2) INITIAL MEETING.—The Administrator, or a person des-
ignated by the Administrator, shall request and coordinate 
the initial meeting of the Council.
H. R. 4348—523 
(i) OFFICERS.—The Chairperson may appoint officers to assist 
in carrying out the duties of the Council under subsection (c). 
(j) STAFF.— 
(1) STAFF OF FEMA.—Upon the request of the Chairperson, 
the Administrator may detail, on a nonreimbursable basis, 
personnel of the Federal Emergency Management Agency to 
assist the Council in carrying out its duties. 
(2) STAFF OF OTHER FEDERAL AGENCIES.—Upon request of 
the Chairperson, any other Federal agency that is a member 
of the Council may detail, on a nonreimbursable basis, per-
sonnel to assist the Council in carrying out its duties. 
(k) POWERS.—In carrying out this section, the Council may 
hold hearings, receive evidence and assistance, provide information, 
and conduct research, as it considers appropriate. 
(l) REPORT TO CONGRESS.—The Administrator, on an annual 
basis, shall report to the Committee on Banking, Housing, and 
Urban Affairs of the Senate, the Committee on Financial Services 
of the House of Representatives, and the Office of Management 
and Budget on the— 
(1) recommendations made by the Council; 
(2) actions taken by the Federal Emergency Management 
Agency to address such recommendations to improve flood 
insurance rate maps and flood risk data; and 
(3) any recommendations made by the Council that have 
been deferred or not acted upon, together with an explanatory 
statement. 
SEC. 100216. NATIONAL FLOOD MAPPING PROGRAM. 
(a) REVIEWING, UPDATING, AND
MAINTAINING
MAPS.—The 
Administrator, in coordination with the Technical Mapping Advisory 
Council established under section 100215, shall establish an ongoing 
program under which the Administrator shall review, update, and 
maintain National Flood Insurance Program rate maps in accord-
ance with this section. 
(b) MAPPING.— 
(1) IN GENERAL.—In carrying out the program established 
under subsection (a), the Administrator shall— 
(A) identify, review, update, maintain, and publish 
National Flood Insurance Program rate maps with respect 
to— 
(i) all populated areas and areas of possible popu-
lation growth located within the 100-year floodplain; 
(ii) all populated areas and areas of possible popu-
lation growth located within the 500-year floodplain; 
(iii) areas of residual risk, including areas that 
are protected by levees, dams, and other flood control 
structures; 
(iv) areas that could be inundated as a result of 
the failure of a levee, dam, or other flood control struc-
ture; and 
(v) the level of protection provided by flood control 
structures; 
(B) establish or update flood-risk zone data in all such 
areas, and make estimates with respect to the rates of 
probable flood caused loss for the various flood risk zones 
for each such area; and
H. R. 4348—524 
(C) 
use, 
in 
identifying, 
reviewing, 
updating, 
maintaining, or publishing any National Flood Insurance 
Program rate map required under this section or under 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011 
et seq.), the most accurate topography and elevation data 
available. 
(2) MAPPING ELEMENTS.—Each map updated under this 
section shall— 
(A) assess the accuracy of current ground elevation 
data used for hydrologic and hydraulic modeling of flooding 
sources and mapping of the flood hazard and wherever 
necessary acquire new ground elevation data utilizing the 
most up-to-date geospatial technologies in accordance with 
guidelines and specifications of the Federal Emergency 
Management Agency; and 
(B) develop National Flood Insurance Program flood 
data on a watershed basis— 
(i) to provide the most technically effective and 
efficient studies and hydrologic and hydraulic mod-
eling; and 
(ii) to eliminate, to the maximum extent possible, 
discrepancies in base flood elevations between adjacent 
political subdivisions. 
(3) OTHER INCLUSIONS.—In updating maps under this sec-
tion, the Administrator shall include— 
(A) any relevant information on coastal inundation 
from— 
(i) an applicable inundation map of the Corps of 
Engineers; and 
(ii) data of the National Oceanic and Atmospheric 
Administration relating to storm surge modeling; 
(B) any relevant information of the United States 
Geological Survey on stream flows, watershed characteris-
tics, and topography that is useful in the identification 
of flood hazard areas, as determined by the Administrator; 
(C) any relevant information on land subsidence, 
coastal erosion areas, changing lake levels, and other flood- 
related hazards; 
(D) any relevant information or data of the National 
Oceanic and Atmospheric Administration and the United 
States Geological Survey relating to the best available 
science regarding future changes in sea levels, precipita-
tion, and intensity of hurricanes; and 
(E) any other relevant information as may be rec-
ommended by the Technical Mapping Advisory Committee. 
(c) STANDARDS.—In updating and maintaining maps under this 
section, the Administrator shall— 
(1) establish standards to— 
(A) ensure that maps are adequate for— 
(i) flood risk determinations; and 
(ii) use by State and local governments in man-
aging development to reduce the risk of flooding; and 
(B) facilitate identification and use of consistent 
methods of data collection and analysis by the Adminis-
trator, in conjunction with State and local governments, 
in developing maps for communities with similar flood 
risks, as determined by the Administrator; and
H. R. 4348—525 
(2) publish maps in a format that is— 
(A) digital geospatial data compliant; 
(B) compliant with the open publishing and data 
exchange standards established by the Open Geospatial 
Consortium; and 
(C) aligned with official data defined by the National 
Geodetic Survey. 
(d) COMMUNICATION AND OUTREACH.— 
(1) IN GENERAL.—The Administrator shall— 
(A) work to enhance communication and outreach to 
States, local communities, and property owners about the 
effects— 
(i) of any potential changes to National Flood 
Insurance Program rate maps that may result from 
the mapping program required under this section; and 
(ii) that any such changes may have on flood insur-
ance purchase requirements; 
(B) engage with local communities to enhance commu-
nication and outreach to the residents of such communities, 
including tenants (with regard to contents insurance), on 
the matters described under subparagraph (A); and 
(C) upon the issuance of any proposed map and any 
notice of an opportunity to make an appeal relating to 
the proposed map, notify the Senators for each State 
affected and each Member of the House of Representatives 
for each congressional district affected by the proposed 
map of any action taken by the Administrator with respect 
to the proposed map or an appeal relating to the proposed 
map. 
(2) REQUIRED
ACTIVITIES.—The communication and out-
reach activities required under paragraph (1) shall include— 
(A) notifying property owners when their properties 
become included in, or when they are excluded from, an 
area covered by the mandatory flood insurance purchase 
requirement under section 102 of the Flood Disaster Protec-
tion Act of 1973 (42 U.S.C. 4012a); 
(B) educating property owners 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 mandatory purchase requirement; 
(C) educating property owners regarding the benefits 
and costs of maintaining or acquiring flood insurance, 
including, where applicable, lower-cost preferred risk poli-
cies under the National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.) for such properties and the contents 
of such properties; 
(D) educating property owners about flood map revi-
sions and the process available to such owners to appeal 
proposed changes in flood elevations through their commu-
nity, including by notifying local radio and television sta-
tions; and 
(E) encouraging property owners to maintain or acquire 
flood insurance coverage. 
(e) COMMUNITY REMAPPING REQUEST.—Upon the adoption by 
the Administrator of any recommendation by the Technical Mapping 
Advisory Council for reviewing, updating, or maintaining National 
Flood Insurance Program rate maps in accordance with this section,
H. R. 4348—526 
a community that believes that its flood insurance rates in effect 
prior to adoption would be affected by the adoption of such rec-
ommendation may submit a request for an update of its rate maps, 
which may be considered at the Administrator’s sole discretion. 
The Administrator shall establish a protocol for the evaluation 
of such community map update requests. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Administrator to carry out this section 
$400,000,000 for each of fiscal years 2013 through 2017. 
SEC. 100217. SCOPE OF APPEALS. 
Section 1363 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104) is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘and designating areas having special 
flood hazards’’ after ‘‘flood elevations’’; and 
(B) by striking ‘‘such determinations’’ and inserting 
‘‘such determinations and designations’’; and 
(2) in subsection (b)— 
(A) in the first sentence, by inserting ‘‘and designations 
of areas having special flood hazards’’ after ‘‘flood elevation 
determinations’’; and 
(B) by amending the third sentence to read as follows: 
‘‘The sole grounds for appeal shall be the possession of 
knowledge or information indicating that (1) the elevations 
being proposed by the Administrator with respect to an 
identified area having special flood hazards are scientif-
ically or technically incorrect, or (2) the designation of 
an identified special flood hazard area is scientifically or 
technically incorrect.’’. 
SEC. 100218. SCIENTIFIC RESOLUTION PANEL. 
(a) ESTABLISHMENT.—Chapter III of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by inserting 
after section 1363 (42 U.S.C. 4104) the following: 
‘‘SEC. 1363A. SCIENTIFIC RESOLUTION PANEL. 
‘‘(a) AVAILABILITY.— 
‘‘(1) IN
GENERAL.—Pursuant to the authority provided 
under section 1363(e), the Administrator shall make available 
an independent review panel, to be known as the Scientific 
Resolution Panel, to any community— 
‘‘(A) that has— 
‘‘(i) filed a timely map appeal in accordance with 
section 1363; 
‘‘(ii) completed 60 days of consultation with the 
Federal Emergency Management Agency on the appeal; 
and 
‘‘(iii) not allowed more than 120 days, or such 
longer period as may be provided by the Administrator 
by waiver, to pass since the end of the appeal period; 
or 
‘‘(B) that has received an unsatisfactory ruling under 
the map revision process established pursuant to section 
1360(f). 
‘‘(2) APPEALS BY OWNERS AND LESSEES.—If a community 
and an owner or lessee of real property within the community
H. R. 4348—527 
appeal a proposed determination of a flood elevation under 
section 1363(b), upon the request of the community— 
‘‘(A) the owner or lessee shall submit scientific and 
technical data relating to the appeals to the Scientific 
Resolution Panel; and 
‘‘(B) the Scientific Resolution Panel shall make a deter-
mination with respect to the appeals in accordance with 
subsection (c). 
‘‘(3) DEFINITION.—For purposes of paragraph (1)(B), an 
‘unsatisfactory ruling’ means that a community— 
‘‘(A) received a revised Flood Insurance Rate Map from 
the Federal Emergency Management Agency, via a Letter 
of Final Determination, after September 30, 2008, and 
prior to the date of enactment of this section; 
‘‘(B) has subsequently applied for a Letter of Map 
Revision or Physical Map Revision with the Federal Emer-
gency Management Agency; and 
‘‘(C) has received an unfavorable ruling on their request 
for a map revision. 
‘‘(b) MEMBERSHIP.—The Scientific Resolution Panel made avail-
able under subsection (a) shall consist of 5 members with expertise 
that relates to the creation and study of flood hazard maps and 
flood insurance. The Scientific Resolution Panel may include rep-
resentatives from Federal agencies not involved in the mapping 
study in question and from other impartial experts. Employees 
of the Federal Emergency Management Agency may not serve on 
the Scientific Resolution Panel. 
‘‘(c) DETERMINATION.— 
‘‘(1) IN GENERAL.—Following deliberations, and not later 
than 90 days after its formation, the Scientific Resolution Panel 
shall issue a determination of resolution of the dispute. Such 
determination shall set forth recommendations for the base 
flood elevation determination or the designation of an area 
having special flood hazards that shall be reflected in the 
Flood Insurance Rate Maps. 
‘‘(2) BASIS.—The determination of the Scientific Resolution 
Panel shall be based on— 
‘‘(A) data previously provided to the Administrator by 
the community, and, in the case of a dispute submitted 
under subsection (a)(2), an owner or lessee of real property 
in the community; and 
‘‘(B) data provided by the Administrator. 
‘‘(3) NO ALTERNATIVE DETERMINATIONS PERMISSIBLE.—The 
Scientific Resolution Panel— 
‘‘(A) shall provide a determination of resolution of a 
dispute that— 
‘‘(i) is either in favor of the Administrator or in 
favor of the community on each distinct element of 
the dispute; or 
‘‘(ii) in the case of a dispute submitted under sub-
section (a)(2), is in favor of the Administrator, in favor 
of the community, or in favor of the owner or lessee 
of real property in the community on each distinct 
element of the dispute; and 
‘‘(B) may not offer as a resolution any other alternative 
determination. 
‘‘(4) EFFECT OF DETERMINATION.—
H. R. 4348—528 
‘‘(A) BINDING.—The recommendations of the Scientific 
Resolution Panel shall be binding on all appellants and 
not subject to further judicial review unless the Adminis-
trator determines that implementing the determination of 
the panel would— 
‘‘(i) pose a significant threat due to failure to iden-
tify a substantial risk of special flood hazards; or 
‘‘(ii) violate applicable law. 
‘‘(B) WRITTEN JUSTIFICATION NOT TO ENFORCE.—If the 
Administrator elects not to implement the determination 
of the Scientific Resolution Panel pursuant to subparagraph 
(A), then not later than 60 days after the issuance of 
the determination, the Administrator shall issue a written 
justification explaining such election. 
‘‘(C) APPEAL OF DETERMINATION NOT TO ENFORCE.— 
If the Administrator elects not to implement the determina-
tion of the Scientific Resolution Panel pursuant to subpara-
graph (A), the community may appeal the determination 
of the Administrator as provided for under section 1363(g). 
‘‘(d) MAPS USED FOR INSURANCE AND MANDATORY PURCHASE 
REQUIREMENTS.—With respect to any community that has a dispute 
that is being considered by the Scientific Resolution Panel formed 
pursuant to this subsection, the Federal Emergency Management 
Agency shall ensure that for each such community that— 
‘‘(1) the Flood Insurance Rate Map described in the most 
recently issued Letter of Final Determination shall be in force 
and effect with respect to such community; and 
‘‘(2) flood insurance shall continue to be made available 
to the property owners and residents of the participating 
community.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) ADMINISTRATIVE
REVIEW.—Section 1363(e) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is 
amended, in the second sentence, by striking ‘‘an independent 
scientific body or appropriate Federal agency for advice’’ and 
inserting ‘‘the Scientific Resolution Panel provided for in section 
1363A’’. 
(2) JUDICIAL REVIEW.—The first sentence of section 1363(g) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g)) 
is amended by striking ‘‘Any appellant’’ and inserting ‘‘Except 
as provided in section 1363A, any appellant’’. 
SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR 
UPDATING FLOOD MAPS. 
Section 1360(f)(2) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4101(f)(2)) is amended by striking ‘‘, but which may 
not exceed 50 percent of the cost of carrying out the requested 
revision or update’’. 
SEC. 100220. COORDINATION. 
(a) INTERAGENCY
BUDGET
CROSSCUT
AND
COORDINATION 
REPORT.— 
(1) IN GENERAL.—The Secretary of Homeland Security, the 
Administrator, the Director of the Office of Management and 
Budget, and the heads of each Federal department or agency 
carrying out activities under sections 100215 and 100216 shall 
work together to ensure that flood risk determination data 
and geospatial data are shared among Federal agencies in
H. R. 4348—529 
order to coordinate the efforts of the Nation to reduce its 
vulnerability to flooding hazards. 
(2) REPORT.—Not later than 30 days after the submission 
of the budget of the United States Government by the President 
to Congress, the Director of the Office of Management and 
Budget, in coordination with the Federal Emergency Manage-
ment Agency, the United States Geological Survey, the National 
Oceanic and Atmospheric Administration, the Corps of Engi-
neers, and other Federal agencies, as appropriate, shall submit 
to the appropriate authorizing and appropriating committees 
of the Senate and the House of Representatives an interagency 
budget crosscut and coordination report, certified by the Sec-
retary or head of each such agency, that— 
(A) contains an interagency budget crosscut report that 
displays relevant sections of the budget proposed for each 
of the Federal agencies working on flood risk determination 
data and digital elevation models, including any planned 
interagency or intra-agency transfers; and 
(B) describes how the efforts aligned with such sections 
complement one another. 
(b) DUTIES OF THE ADMINISTRATOR.—In carrying out sections 
100215 and 100216, the Administrator shall— 
(1) participate, pursuant to section 216 of the E–Govern-
ment Act of 2002 (44 U.S.C. 3501 note), in the establishment 
of such standards and common protocols as are necessary to 
assure the interoperability of geospatial data for all users of 
such information; 
(2) coordinate with, seek assistance and cooperation of, 
and provide a liaison to the Federal Geographic Data Com-
mittee pursuant to the Office of Management and Budget Cir-
cular A–16 and Executive Order 12906 (43 U.S.C. 1457 note; 
relating to the National Spatial Data Infrastructure) for the 
implementation of and compliance with such standards; 
(3) integrate with, leverage, and coordinate funding of, 
to the maximum extent practicable, the current flood mapping 
activities of each unit of State and local government; 
(4) integrate with, leverage, and coordinate, to the max-
imum extent practicable, the current geospatial activities of 
other Federal agencies and units of State and local government; 
and 
(5) develop a funding strategy to leverage and coordinate 
budgets and expenditures, and to maintain or establish joint 
funding and other agreement mechanisms with other Federal 
agencies and units of State and local government to share 
in the collection and utilization of geospatial data among all 
governmental users. 
SEC. 100221. INTERAGENCY COORDINATION STUDY. 
(a) IN GENERAL.—The Administrator shall enter into a contract 
with the National Academy of Public Administration to conduct 
a study on how the Federal Emergency Management Agency— 
(1) should improve interagency and intergovernmental 
coordination on flood mapping, including a funding strategy 
to leverage and coordinate budgets and expenditures; and 
(2) can establish joint funding mechanisms with other Fed-
eral agencies and units of State and local government to share
H. R. 4348—530 
the collection and utilization of data among all governmental 
users. 
(b) TIMING.—A contract entered into under subsection (a) shall 
require that, not later than 180 days after the date of enactment 
of this subtitle, the National Academy of Public Administration 
shall report the findings of the study required under subsection 
(a) to— 
(1) the Committee on Banking, Housing, and Urban Affairs 
of the Senate; 
(2) the Committee on Financial Services of the House of 
Representatives; 
(3) the Committee on Appropriations of the Senate; and 
(4) the Committee on Appropriations of the House of Rep-
resentatives. 
SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER 
RESPA. 
Section 5(b) of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2604(b)), as amended by section 1450 of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act (Public 
Law 111–203; 124 Stat. 2174), is amended by adding at the end 
the following: 
‘‘(14) An explanation of flood insurance and the availability 
of flood insurance under the National Flood Insurance Program 
or from a private insurance company, whether or not the real 
estate is located in an area having special flood hazards.’’. 
SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
PROGRAMS. 
Chapter I of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.) is amended by inserting after section 1313 
(42 U.S.C. 4020) the following: 
‘‘SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
PROGRAMS. 
‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case of the occur-
rence of a major disaster, as defined in section 102 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5122), that may have resulted in flood damage covered under the 
national flood insurance program established under this title and 
other personal lines residential property insurance coverage offered 
by a State regulated insurer, upon a request made by the insurance 
commissioner of a State (or such other official responsible for regu-
lating the business of insurance in the State) for the participation 
of representatives of the Administrator in a program sponsored 
by such State for nonbinding mediation of insurance claims 
resulting from a major disaster, the Administrator shall cause rep-
resentatives of the national flood insurance program to participate 
in such a State program where claims under the national flood 
insurance program are involved to expedite settlement of flood 
damage claims resulting from such disaster. 
‘‘(b) EXTENT OF PARTICIPATION.—In satisfying the requirements 
of subsection (a), the Administrator shall require that each rep-
resentative of the Administrator— 
‘‘(1) be certified for purposes of the national flood insurance 
program to settle claims against such program resulting from 
such disaster in amounts up to the limits of policies under 
such program;
H. R. 4348—531 
‘‘(2) attend State-sponsored mediation meetings regarding 
flood insurance claims resulting from such disaster at such 
times and places as may be arranged by the State; 
‘‘(3) participate in good-faith negotiations toward the settle-
ment of such claims with policyholders of coverage made avail-
able under the national flood insurance program; and 
‘‘(4) finalize the settlement of such claims on behalf of 
the national flood insurance program with such policyholders. 
‘‘(c) COORDINATION.—Representatives of the Administrator shall 
at all times coordinate their activities with insurance officials of 
the State and representatives of insurers for the purposes of consoli-
dating and expediting settlement of claims under the national flood 
insurance program resulting from such disaster. 
‘‘(d) QUALIFICATIONS
OF MEDIATORS.—Each State mediator 
participating in State-sponsored mediation under this section shall 
be— 
‘‘(1)(A) a member in good standing of the State bar in 
the State in which the mediation is to occur with at least 
2 years of practical experience; and 
‘‘(B) an active member of such bar for at least 1 year 
prior to the year in which such mediator’s participation is 
sought; or 
‘‘(2) a retired trial judge from any United States jurisdiction 
who was a member in good standing of the bar in the State 
in which the judge presided for at least 5 years prior to the 
year in which such mediator’s participation is sought. 
‘‘(e) MEDIATION PROCEEDINGS AND DOCUMENTS PRIVILEGED.— 
As a condition of participation, all statements made and documents 
produced pursuant to State-sponsored mediation involving rep-
resentatives of the Administrator shall be deemed privileged and 
confidential settlement negotiations made in anticipation of litiga-
tion. 
‘‘(f) LIABILITY, RIGHTS, OR
OBLIGATIONS
NOT
AFFECTED.— 
Participation in State-sponsored mediation, as described in this 
section does not— 
‘‘(1) affect or expand the liability of any party in contract 
or in tort; or 
‘‘(2) affect the rights or obligations of the parties, as estab-
lished— 
‘‘(A) in any regulation issued by the Administrator, 
including any regulation relating to a standard flood insur-
ance policy; 
‘‘(B) under this title; and 
‘‘(C) under any other provision of Federal law. 
‘‘(g) EXCLUSIVE FEDERAL JURISDICTION.—Participation in State- 
sponsored mediation shall not alter, change, or modify the original 
exclusive jurisdiction of United States courts, as set forth in this 
title. 
‘‘(h) COST LIMITATION.—Nothing in this section shall be con-
strued to require the Administrator or a representative of the 
Administrator to pay additional mediation fees relating to flood 
insurance claims associated with a State-sponsored mediation pro-
gram in which such representative of the Administrator partici-
pates. 
‘‘(i) EXCEPTION.—In the case of the occurrence of a major dis-
aster that results in flood damage claims under the national flood
H. R. 4348—532 
insurance program and that does not result in any loss covered 
by a personal lines residential property insurance policy— 
‘‘(1) this section shall not apply; and 
‘‘(2) the provisions of the standard flood insurance policy 
under the national flood insurance program and the appeals 
process established under section 205 of the Bunning-Bereuter- 
Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 
4011 note) and the regulations issued pursuant to such section 
shall apply exclusively. 
‘‘(j) REPRESENTATIVES OF THE ADMINISTRATOR.—For purposes 
of this section, the term ‘representatives of the Administrator’ 
means representatives of the national flood insurance program who 
participate in the appeals process established under section 205 
of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act 
of 2004 (42 U.S.C. 4011 note).’’. 
SEC. 100224. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF INSUR-
ANCE COMPANIES. 
(a) SUBMISSION OF BIENNIAL REPORTS.— 
(1) TO THE ADMINISTRATOR.—Not later than 20 days after 
the date of enactment of this Act, each property and casualty 
insurance company participating in the Write Your Own pro-
gram shall submit to the Administrator any biennial report 
required by the Federal Emergency Management Agency to 
be prepared in the prior 5 years by such company. 
(2) TO GAO.—Not later than 10 days after the submission 
of the biennial reports under paragraph (1), the Administrator 
shall submit all such reports to the Comptroller General of 
the United States. 
(3) NOTICE
TO
CONGRESS
OF
FAILURE
TO
COMPLY.—The 
Administrator shall notify and report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representa-
tives on any property and casualty insurance company partici-
pating in the Write Your Own program that failed to submit 
its biennial reports as required under paragraph (1). 
(4) FAILURE TO COMPLY.—A property and casualty insur-
ance company participating in the Write Your Own program 
which fails to comply with the reporting requirement under 
this subsection or the requirement under section 62.23(j)(1) 
of title 44, Code of Federal Regulations (relating to biennial 
audit of the flood insurance financial statements) shall be sub-
ject to a civil penalty in an amount of not more than $1,000 
per day for each day that the company remains in noncompli-
ance with either such requirement. 
(b) METHODOLOGY TO DETERMINE REIMBURSED EXPENSES.— 
Not later than 180 days after the date of enactment of this Act, 
the Administrator shall develop a methodology for determining 
the appropriate amounts that property and casualty insurance 
companies participating in the Write Your Own program should 
be reimbursed for selling, writing, and servicing flood insurance 
policies and adjusting flood insurance claims on behalf of the 
National Flood Insurance Program. The methodology shall be devel-
oped using actual expense data for the flood insurance line and 
can be derived from— 
(1) flood insurance expense data produced by the property 
and casualty insurance companies;
H. R. 4348—533 
(2) flood insurance expense data collected by the National 
Association of Insurance Commissioners; or 
(3) a combination of the methodologies described in para-
graphs (1) and (2). 
(c) SUBMISSION OF EXPENSE REPORTS.—To develop the method-
ology established under subsection (b), the Administrator may 
require each property and casualty insurance company participating 
in the Write Your Own program to submit a report to the Adminis-
trator, in a format determined by the Administrator and within 
60 days of the request, that details the expense levels of each 
such company for selling, writing, and servicing standard flood 
insurance policies and adjusting and servicing claims. 
(d) FEMA RULEMAKING
ON REIMBURSEMENT
OF EXPENSES 
UNDER THE WRITE YOUR OWN PROGRAM.—Not later than 12 months 
after the date of enactment of this Act, the Administrator shall 
issue a rule to formulate revised expense reimbursements to prop-
erty and casualty insurance companies participating in the Write 
Your Own program for their expenses (including their operating 
and administrative expenses for adjustment of claims) in selling, 
writing, and servicing standard flood insurance policies, including 
how such companies shall be reimbursed in both catastrophic and 
noncatastrophic years. Such reimbursements shall be structured 
to ensure reimbursements track the actual expenses, including 
standard business costs and operating expenses, of such companies 
as closely as practicably possible. 
(e) REPORT OF THE ADMINISTRATOR.—Not later than 60 days 
after the effective date of the final rule issued pursuant to sub-
section (d), the Administrator shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representatives a 
report containing— 
(1) the specific rationale and purposes of such rule; 
(2) the reasons for the adoption of the policies contained 
in such rule; and 
(3) the degree to which such rule accurately represents 
the true operating costs and expenses of property and casualty 
insurance companies participating in the Write Your Own pro-
gram. 
(f) GAO STUDY AND REPORT ON EXPENSES OF WRITE YOUR 
OWN PROGRAM.— 
(1) STUDY.—Not later than 180 days after the effective 
date of the final rule issued pursuant to subsection (d), the 
Comptroller General of the United States shall— 
(A) conduct a study on the efficacy, adequacy, and 
sufficiency of the final rules issued pursuant to subsection 
(d); and 
(B) report to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives on the 
findings of the study conducted under subparagraph (A). 
(2) GAO AUTHORITY.—In conducting the study and report 
required under paragraph (1), the Comptroller General— 
(A) may use any previous findings, studies, or reports 
that the Comptroller General previously completed on the 
Write Your Own program; 
(B) shall determine if—