IB 
Union Calendar No. 185 
115TH CONGRESS 
1ST SESSION H. R. 2246 
[Report No. 115–255] 
To repeal the mandatory flood insurance coverage requirement for commercial 
properties located in flood hazard areas and to provide for greater trans-
fer of risk under the National Flood Insurance Program to private 
capital and reinsurance markets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 28, 2017 
Mr. LUETKEMEYER introduced the following bill; which was referred to the 
Committee on Financial Services 
JULY 25, 2017 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 28, 2017] 
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A BILL 
To repeal the mandatory flood insurance coverage require-
ment for commercial properties located in flood hazard 
areas and to provide for greater transfer of risk under 
the National Flood Insurance Program to private capital 
and reinsurance markets, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taxpayer Exposure 
Mitigation Act of 2017’’. 
SEC. 2. OPT-OUT OF MANDATORY COVERAGE REQUIRE-
MENT FOR COMMERCIAL PROPERTIES. 
(a) AMENDMENTS TO FLOOD DISASTER PROTECTION 
ACT OF 1973.—The Flood Disaster Protection Act of 1973 
is amended— 
(1) in section 3(a) (42 U.S.C. 4003(a))— 
(A) in paragraph (10), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (11), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(12) ‘residential improved real estate’ means 
improved real estate that— 
‘‘(A) is primarily used for residential pur-
poses, as defined by the Federal entities for lend-
ing regulation; and 
‘‘(B) secures financing or financial assist-
ance provided through a federally related single 
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family loan progam, as defined by the Federal 
entities for lending regulation.’’; and 
(2) in section 102 (42 U.S.C. 4012a)— 
(A) in subsection (b)— 
(i) in paragraph (1)(A)— 
(I) by inserting ‘‘residential’’ be-
fore ‘‘improved real estate’’; and 
(II) by inserting ‘‘residential’’ be-
fore ‘‘building or mobile home’’; 
(ii) in paragraph (2)— 
(I) by inserting ‘‘residential’’ be-
fore ‘‘improved real estate’’; and 
(II) by inserting ‘‘residential’’ be-
fore ‘‘building or mobile home’’; and 
(iii) in paragraph (3)— 
(I) in subparagraph (A), by in-
serting ‘‘residential’’ before ‘‘improved 
real estate’’; and 
(II) in the matter after and below 
subparagraph (B), by inserting ‘‘resi-
dential’’ before ‘‘building or mobile 
home’’; 
(B) in subsection (c)(3), by striking ‘‘, in 
the case of any residential property, for any 
structure that is a part of such property’’ and 
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inserting ‘‘for any structure that is part of a res-
idential property’’; 
(C) in subsection (e)— 
(i) in paragraph (1)— 
(I) by inserting ‘‘residential’’ be-
fore ‘‘improved real estate’’; and 
(II) by inserting ‘‘residential’’ be-
fore ‘‘building or mobile home’’ each 
place such term appears; and 
(ii) in paragraph (5)— 
(I) in subparagraph (A)— 
(aa) by inserting ‘‘residen-
tial’’ before ‘‘improved real estate’’ 
each place such term appears; and 
(bb) by inserting ‘‘residen-
tial’’ before ‘‘building or mobile 
home’’ each place such term ap-
pears; 
(II) in subparagraph (B), by in-
serting ‘‘residential’’ before ‘‘building 
or mobile home’’ each place such term 
appears; and 
(III) in subparagraph (C), by in-
serting ‘‘residential’’ before ‘‘building 
or mobile home’’; and 
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(D) in subsection (h)— 
(i) by inserting ‘‘residential’’ before 
‘‘improved real estate’’ each place such term 
appears; and 
(ii) in the matter preceding paragraph 
(1), by inserting ‘‘residential’’ before ‘‘build-
ing or mobile home’’. 
(b) AMENDMENTS TO NATIONAL FLOOD INSURANCE 
ACT OF 1968.—The National Flood Insurance Act of 1968 
is amended— 
(1) in section 1364(a) (42 U.S.C. 4104a(a))— 
(A) in paragraph (1), by inserting ‘‘residen-
tial’’ before ‘‘improved real estate’’; 
(B) in paragraph (2), by inserting ‘‘resi-
dential’’ before ‘‘improved real estate’’; and 
(C) in paragraph (3)(A), by inserting ‘‘resi-
dential’’ before ‘‘building’’; 
(2) in section 1365 (42 U.S.C. 4104b)— 
(A) in subsection (a)— 
(i) by inserting ‘‘residential’’ before 
‘‘improved real estate’’; and 
(ii) by inserting ‘‘residential’’ before 
‘‘building’’; 
(B) in subsection (b)(2)— 
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(i) by inserting ‘‘residential’’ before 
‘‘building’’ each place such term appears; 
and 
(ii) by inserting ‘‘residential’’ before 
‘‘improved real estate’’ each place such term 
appears; 
(C) in subsection (d), by inserting ‘‘residen-
tial’’ before ‘‘improved real estate’’ each place 
such term appears; and 
(D) in subsection (e)— 
(i) by inserting ‘‘residential’’ before 
‘‘improved real estate’’; and 
(ii) by inserting ‘‘residential’’ before 
‘‘building’’ each place such term appears; 
and 
(3) in section 1370 (42 U.S.C. 4121)— 
(A) in paragraph (8), by inserting ‘‘residen-
tial’’ before ‘‘improved real estate’’; 
(B) by redesignating paragraphs (14) and 
(15) as paragraphs (15) and (16), respectively; 
and 
(C) by inserting after paragraph (13) the 
following new paragraph: 
‘‘(14) the term ‘residential improved real estate’ 
means improved real estate that— 
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