paid, pursuant to increase in borrowing authority author-
ized under the amendments made by subsection (a). 
SEC. 13. FEMA 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 adding at the end 
the following new section: 
‘‘SEC. 1325. FEMA PARTICIPATION IN STATE DISASTER 
CLAIMS MEDIATION PROGRAMS. 
‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case of 
the occurrence of a natural catastrophe that may have re-
sulted in flood damage covered by insurance made available 
under the national flood insurance program and a loss cov-
ered by personal lines residential property insurance policy, 
upon request made by the insurance commissioner of a 
State (or such other official responsible for regulating the 
business of insurance in the State) for the participation of 
representatives of the Director in a program sponsored by 
such State for nonbinding mediation of insurance claims 
resulting from a natural catastrophe, the Director shall 
cause such representatives to participate in such State pro-
gram, when claims under the national flood insurance pro-
gram are involved, to expedite settlement of flood damage 
claims resulting from such catastrophe. 
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‘‘(b) EXTENT OF PARTICIPATION.—Participation by 
representatives of the Director required under subsection (a) 
with respect to flood damage claims resulting from a nat-
ural catastrophe shall include— 
‘‘(1) providing adjusters certified for purposes of 
the national flood insurance program who are author-
ized to settle claims against such program resulting 
from such catastrophe in amounts up to the limits of 
policies under such program; 
‘‘(2) requiring such adjusters to attend State- 
sponsored mediation meetings regarding flood insur-
ance claims resulting from such catastrophe at times 
and places as may be arranged by the State; 
‘‘(3) participating in good-faith negotiations to-
ward the settlement of such claims with policyholders 
of coverage made available under the national flood 
insurance program; and 
‘‘(4) finalizing the settlement of such claims on 
behalf of the national flood insurance program with 
such policyholders. 
‘‘(c) COORDINATION.—Representatives of the Director 
who participate pursuant to this section in a State-spon-
sored mediation program with respect to a natural catas-
trophe shall at all times coordinate their activities with in-
surance officials of the State and representatives of insurers 
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for the purpose of consolidating and expediting the settle-
ment of claims under the national flood insurance program 
resulting from such catastrophe at the earliest possible time. 
‘‘(d) MEDIATION PROCEEDINGS AND PRIVILEGED DOC-
UMENTS.—As a condition of the participation of Represent-
atives of the Director pursuant to this section in State-spon-
sored mediation, all statements made and documents pro-
duced pursuant to such mediation involving representatives 
of the Director shall be deemed privileged and confidential 
settlement negotiations made in anticipation of litigation. 
‘‘(e) EFFECT OF PARTICIPATION ON LIABILITY, RIGHT, 
AND OBLIGATIONS.—Participation of Representatives of the 
Director pursuant to this section in State-sponsored medi-
ation shall not affect or expand the liability of any party 
in contract or in tort, nor shall it affect the rights or obliga-
tions of the parties as provided in the Standard Flood In-
surance Policy under the national flood insurance program, 
regulations of the Federal Emergency Management Agency, 
this Act, or Federal common law. 
‘‘(f) EXCLUSIVE FEDERAL JURISDICTION.—Participa-
tion of Representatives of the Director pursuant to this sec-
tion in State-sponsored mediation shall not alter, change 
or modify the original exclusive jurisdiction of United 
States courts as provided in this Act. 
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‘‘(g) COST LIMITATION.—Nothing in this section shall 
be construed to require the Director or representatives of 
the Director to pay additional mediation fees relating to 
flood claims associated with a State-sponsored mediation 
program in which representatives of the Director partici-
pate. 
‘‘(h) EXCEPTION.—In the case of the occurrence of a 
natural catastrophe that results in flood damage claims 
under the national flood insurance program and 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 Insur-
ance Policy under the national flood insurance pro-
gram and the appeals process established pursuant to 
section 205 of the Bunning-Bereueter-Blumenauer 
Flood Insurance Reform Act of 2004 (Public Law 
108–264; 118 Stat. 726) and regulations issued pur-
suant to such section shall apply exclusively. 
‘‘(i) REPRESENTATIVES OF DIRECTOR.—For purposes 
of this section, the term ‘representatives of the Director’ 
means representatives of the national flood insurance pro-
gram who participate in the appeals process established 
pursuant to section 205 of the Bunning-Bereueter- 
Blumenauer Flood Insurance Reform Act of 2004 (Public 
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Law 108–264; 118 Stat. 726) and regulations issued pursu-
ant to such section.’’. 
SEC. 14. FEMA ANNUAL REPORT ON INSURANCE PROGRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘REPORT 
TO THE PRESIDENT’’ and inserting ‘‘ANNUAL REPORT 
TO CONGRESS’’; 
(2) in subsection (a)— 
(A) by striking ‘‘biennially’’; 
(B) by striking ‘‘the President for submis-
sion to’’; and 
(C) by inserting ‘‘not later than June 30 of 
each year’’ before the period at the end; 
(3) in subsection (b), by striking ‘‘biennial’’ and 
inserting ‘‘annual’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 
under this section for each year shall include information 
regarding the financial status of the national flood insur-
ance program under this title, including a description of 
the financial status of the National Flood Insurance Fund 
and current and projected levels of claims, premium re-
ceipts, expenses, and borrowing under the program.’’. 
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SEC. 15. FLOOD INSURANCE OUTREACH. 
(a) GRANTS.—Chapter I of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4011 et seq.), as amended by 
the preceding provisions of this Act, is further amended by 
adding at the end the following new section: 
‘‘SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS 
AND RENTERS. 
‘‘(a) IN GENERAL.—The Director may, to the extent 
amounts are made available pursuant to subsection (h), 
make grants to local governmental agencies responsible for 
floodplain management activities (including such agencies 
of Indians tribes, as such term is defined in section 4 of 
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4103)) in communities 
that participate in the national flood insurance program 
under this title, for use by such agencies to carry out out-
reach activities to encourage and facilitate the purchase of 
flood insurance protection under this Act by owners and 
renters of properties in such communities and to promote 
educational activities that increase awareness of flood risk 
reduction. 
‘‘(b) OUTREACH ACTIVITIES.—Amounts from a grant 
under this section shall be used only for activities designed 
to— 
‘‘(1) identify owners and renters of properties in 
communities that participate in the national flood in-
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surance program, including owners of residential and 
commercial properties; 
‘‘(2) notify such owners and renters when their 
properties become included in, or when they are ex-
cluded from, an area having special flood hazards 
and the effect of such inclusion or exclusion on the ap-
plicability of the mandatory flood insurance purchase 
requirement under section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a) to such 
properties; 
‘‘(3) educate such owners and renters regarding 
the flood risk and reduction of this risk in their com-
munity, including the continued flood risks to areas 
that are no longer subject to the flood insurance man-
datory purchase requirement; 
‘‘(4) educate such owners and renters regarding 
the benefits and costs of maintaining or acquiring 
flood insurance, including, where applicable, lower- 
cost preferred risk policies under this title for such 
properties and the contents of such properties; and 
‘‘(5) encouraging such owners and renters to 
maintain or acquire such coverage. 
‘‘(c) COST SHARING REQUIREMENT.— 
‘‘(1) IN GENERAL.—In any fiscal year, the Di-
rector may not provide a grant under this section to 
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