I
106TH CONGRESS
1ST SESSION
H. R. 2728
To amend the National Flood Insurance Act of 1968 to reduce losses to
properties for which repetitive flood insurance claim payments have been
made.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 5, 1999
Mr. BEREUTER (for himself and Mr. BLUMENAUER) introduced the following
bill; which was referred to the Committee on Banking and Financial Services
A BILL
To amend the National Flood Insurance Act of 1968 to
reduce losses to properties for which repetitive flood in-
surance claim payments have been made.
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 ‘‘Two Floods and You
Are Out of the Taxpayers’ Pocket Act of 1999’’.
SEC. 2. FLOOD LOSS REDUCTION FOR REPETITIVE FLOOD
INSURANCE CLAIM PROPERTIES.
Section 1366 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104c) is amended—
(1) in subsection (a), by inserting after the first
sentence the following new sentence: ‘‘In awarding
grants under this section for mitigation activities,
the Director shall give priority to properties for
which repetitive flood insurance claim payments have
been made.’’;
(2) in the last sentence of subsection (c), by in-
serting before the period the following: ‘‘, and shall
address properties in the area for which repetitive
flood insurance claim payments have been made’’.
(3) in subsection (f), by striking paragraph (3)
and inserting the following new paragraph:
‘‘(3) WAIVER.—The Director may waive the
dollar amount limitations under paragraphs (1) and
(2) for any State or community—
‘‘(A) for any 5-year period when a major
disaster or emergency declared by the President
(pursuant to the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.)) as a result of flood condi-
tions is in effect with respect to areas in the
State or community; or
‘‘(B) whenever the Director determines
that the State or community has properties for
which repetitive flood insurance claim payments
have been made and that waiver of the cost lim-
itations is cost-effective and in the best inter-
ests of the National Flood Insurance Fund.’’.
SEC. 3. NATIONAL FLOOD MITIGATION FUND.
(a) CREDITS.—Section 1367(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104d(b)) is
amended—
(1) by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) amounts from the National Flood Insur-
ance Fund, in amounts not exceeding $70,000,000
in each of fiscal years 2000, 2001, 2002, and 2003,
of which all amounts made available under this
paragraph in excess of $20,000,000 in each such fis-
cal year shall be used only under section 1366 for
mitigation activities for properties for which repet-
itive flood insurance claim payments have been
made, such sums to remain available until ex-
pended;’’;
(2) in paragraph (2), by striking ‘‘and’’ at the
end;
(3) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following new
paragraph:
ance’’ and inserting ‘‘during the period ending on
the date specified in section 1319, in accordance’’.
(4) AUTHORIZATION OF APPROPRIATIONS FOR
STUDIES.—In section 1376(c) (42 U.S.C. 4127(c)),
by striking ‘‘through’’ and all that follows and in-
serting the following: ‘‘through the date specified in
section 1319.’’.
SEC. 5. CHARGEABLE PREMIUM RATES.
(a) ACTUARIAL RATE PROPERTIES.—Section 1308 of
the National Flood Insurance Act of 1968 (42 U.S.C.
4015) is amended by striking subsection (c) and inserting
the following new subsection:
‘‘(c) ACTUARIAL RATE PROPERTIES.—Subject only
to the limitation provided under paragraph (1), the
chargeable rate shall not be less than the applicable esti-
mated risk premium rate for such area (or subdivision
thereof) under section 1307(a)(1) with respect to the fol-
lowing properties:
‘‘(1) POST-FIRM
PROPERTIES.—Any property
the construction or substantial improvement of
which the Director determines has been started after
December 31, 1974, or started after the effective
date of the initial rate map published by the Direc-
tor under paragraph (2) of section 1360 for the area
in which such property is located, whichever is later,
except that the chargeable rate for properties under
this paragraph shall be subject to the limitation
under subsection (e).
‘‘(2) REPETITIVE
CLAIM
PAYMENTS
PROP-
ERTIES.—Any property for which the Director deter-
mines that repetitive flood insurance claim payments
have been made and the owner of which has refused
a buyout, elevation, or other flood mitigation meas-
ure funded in whole or in part by the Federal Emer-
gency Management Agency.
‘‘(3) CERTAIN
LEASED
COASTAL
AND
RIVER
PROPERTIES.—Any property leased from the Federal
Government (including residential and nonresidential
properties) that the Director determines is located
on the river-facing side of any dike, levee, or other
riverine flood control structure, or seaward of any
seawall or other coastal flood control structure.’’.
(b) APPLICABILITY OF ANNUAL LIMITATION ON PRE-
MIUM INCREASES.—Section 1308(e) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended
by striking ‘‘Notwithstanding’’ and inserting ‘‘Except with
respect to properties described under paragraph (2) or (3)
of subsection (c) and notwithstanding’’.
SEC. 6. REMOVING REPETITIVE CLAIM PROPERTIES FROM
FEDERAL DISASTER ASSISTANCE RESPONSI-
BILITY.
(a) IN GENERAL.—Section 582 of the National Flood
Insurance Reform Act of 1994 (42 U.S.C. 5154a) is
amended—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(2) by inserting after subsection (c) the fol-
lowing new subsection:
‘‘(d) UNMITIGATED
REPETITIVE
CLAIM
PROP-
ERTIES.—Notwithstanding any other provision of law, no
Federal disaster relief assistance made available in a flood
disaster area may be used to make a payment (including
any loan assistance payment) for repair, replacement, or
restoration for damage to any property in the area for
which—
‘‘(1) repetitive flood insurance claim payments
have been made; and
‘‘(2) in accordance with such requirements as
the Director may establish, mitigation assistance
under section 1366 of this Act or section 404 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170c) has been offered
to the owner of the property, before or after the oc-
currence of the flood loss events, which was refused
by the owner.’’.
(b) EFFECTIVE DATE.—Notwithstanding subsection
(f) of section 582 of the National Flood Insurance Reform
Act of 1994 (as so redesignated by paragraph (1)(A) of
this subsection), the amendment made by paragraph (1)
shall apply to disasters declared after the date of the en-
actment of this Act.
SEC. 7. MITIGATION GRANTS FOR REPETITIVE CLAIM
PROPERTIES.
(a) IN GENERAL.—Chapter I of the National Flood
Insurance Act of 1968 is amended by adding after section
1322 (42 U.S.C. 4029) the following new section:
‘‘GRANTS FOR REPETITIVE CLAIM PROPERTIES
‘‘SEC. 1323. The Director may provide funding for
mitigation actions that reduce flood damages to repetitive
flood insurance claim payments properties, if the Director
determines that—
‘‘(1) such activities are in the best interest of
the National Flood Insurance Fund; and
‘‘(2) such activities can not be funded under the
program under section 1366 because—
‘‘(A) the State or community in which the
property is located can not comply with the re-
quirements of section 1366(g); or
‘‘(B) the State or community does not
have the capacity to manage such activities.’’.
(b) AVAILABILITY OF NATIONAL FLOOD INSURANCE
FUND AMOUNTS.—Section 1310(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(9) for funding for mitigation actions under
section 1323.’’.
SEC. 8. USE RESTRICTIONS ON ACQUIRED PROPERTY.
Section 1366(e)(5)(C) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4104c(e)(5)(C)) is amended
by striking ‘‘for public use, as the Director determines is
consistent with sound land management and use in such
area’’ and inserting the following: ‘‘except that the Direc-
tor may not provide amounts under this section for use
for acquisition of properties unless the State or community
agrees, to the satisfaction of the Director, that the instru-
ment for acquisition of the property will convey to the
United States a future interest in all right, title, and inter-
est in and to all property acquired with the amounts under
this section that is contingent upon the condition that the
property acquired ceases to be dedicated and maintained
for use that is compatible with open space, recreational,
or wetlands management practices.’’.
SEC. 9. DEFINITION OF REPETITIVE CLAIM PROPERTIES.
Section 1370(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4121(a)) is amended—
(1) in paragraph (7), by inserting after the
paragraph designation the following: ‘‘for purposes
of 
sections 
1304(b)(1), 
1315(a)(2)(A)(i), 
and
1366(e)(4),’’;
(2) in paragraph (13), by striking ‘‘and’’ at the
end;
(3) in paragraph (14), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following new
paragraph:
‘‘(15) the term ‘repetitive flood insurance claim
payments’ means, with respect to a property, that
claim payments for losses to the property have been
made under flood insurance coverage under this title
on more than one occasion, without regard to the
amount or timing of the payment or the ownership
of the property.’’.
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