H. R. 4348—549 
community officials, homeowners, and other residents 
of communities. 
(2) REPORT.—The contract under paragraph (1)(A) shall 
provide that not later than 12 months after the date of enact-
ment of this Act, the National Academy of Sciences shall submit 
to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services and 
the Committee on Science, Space, and Technology of the House 
of Representatives a report on the study under paragraph (1) 
that includes the information and recommendations required 
under paragraph (1). 
SEC. 100232. REINSURANCE. 
(a) FEMA AND GAO REPORTS ON PRIVATIZATION.—Not later 
than 18 months after the date of enactment of this Act, the Adminis-
trator and the Comptroller General of the United States shall 
each— 
(1) conduct a separate study to assess a broad range of 
options, methods, and strategies for privatizing the National 
Flood Insurance Program; and 
(2) submit a report to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate with recommenda-
tions for the best manner to accomplish the privatization 
described in paragraph (1). 
(b) PRIVATE
RISK-MANAGEMENT
INITIATIVES.—The Adminis-
trator may carry out such private risk-management initiatives as 
are otherwise authorized under applicable law, as the Administrator 
considers appropriate to determine the capacity of private insurers, 
reinsurers, and financial markets to assist communities, on a vol-
untary basis only, in managing the full range of financial risks 
associated with flooding. 
(c) REINSURANCE ASSESSMENT.— 
(1) PRIVATE MARKET PRICING ASSESSMENT.—Not later than 
12 months after the date of enactment of this Act, the Adminis-
trator shall submit to Congress a report that— 
(A) assesses the capacity of the private reinsurance, 
capital, and financial markets to assist communities, on 
a voluntary basis, in managing the full range of financial 
risks associated with flooding by requesting proposals to 
assume a portion of the insurance risk of the National 
Flood Insurance Program; 
(B) describes any responses to the request for proposals 
under subparagraph (A); 
(C) assesses whether the rates and terms contained 
in any proposals received by the Administrator are— 
(i) reasonable and appropriate; and 
(ii) in an amount sufficient to maintain the ability 
of the National Flood Insurance Program to pay claims; 
(D) describes the extent to which carrying out the 
proposals received by the Administrator would minimize 
the likelihood that the Administrator would use the bor-
rowing authority under section 1309 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4016); 
(E) describes fluctuations in historical reinsurance 
rates; and
H. R. 4348—550 
(F) includes an economic cost-benefit analysis of the 
impact on the National Flood Insurance Program if the 
Administrator were to exercise the authority under section 
1335(a)(2) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4055(a)(2)), as added by this section, to secure 
reinsurance of coverage provided by the National Flood 
Insurance Program from the private market. 
(2) PROTOCOL FOR RELEASE OF DATA.—The Administrator 
shall develop a protocol, including adequate privacy protections, 
to provide for the release of data sufficient to conduct the 
assessment required under paragraph (1). 
(d) REINSURANCE.—The National Flood Insurance Act of 1968 
(42 U.S.C. 4001 et seq.) is amended— 
(1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by inserting 
‘‘, including as reinsurance of coverage provided by the flood 
insurance program’’ before ‘‘, on such terms’’; 
(2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by inserting 
‘‘or reinsurance’’ after ‘‘flood insurance coverage’’; 
(3) in section 1335(a) (42 U.S.C. 4055(a))— 
(A) by striking ‘‘The Director’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The Administrator’’; and 
(B) by adding at the end the following: 
‘‘(2) PRIVATE REINSURANCE.—The Administrator is author-
ized to secure reinsurance of coverage provided by the flood 
insurance program from the private market at rates and on 
terms determined by the Administrator to be reasonable and 
appropriate, in an amount sufficient to maintain the ability 
of the program to pay claims.’’; 
(4) in section 1346(a) (42 U.S.C. 4082(a))— 
(A) in the matter preceding paragraph (1), by inserting 
after ‘‘for the purpose of’’ the following: ‘‘securing reinsur-
ance of insurance coverage provided by the program or 
for the purpose of’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘estimating’’ and inserting ‘‘Esti-
mating’’; and 
(ii) by striking the semicolon at the end and 
inserting a period; 
(C) in paragraph (2)— 
(i) 
by 
striking 
‘‘receiving’’ 
and 
inserting 
‘‘Receiving’’; and 
(ii) by striking the semicolon at the end and 
inserting a period; 
(D) in paragraph (3)— 
(i) by striking ‘‘making’’ and inserting ‘‘Making’’; 
and 
(ii) by striking ‘‘ ‘; and’ ’’ and inserting a period; 
(E) by redesignating paragraph (4) as paragraph (5); 
(F) in paragraph (5), as so redesignated, by striking 
‘‘otherwise’’ and inserting ‘‘Otherwise’’; and 
(G) by inserting after paragraph (3) the following new 
paragraph: 
‘‘(4) Placing reinsurance coverage on insurance provided 
by such program.’’; and 
(5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by striking 
‘‘include any’’ and all that follows and inserting the following:
H. R. 4348—551 
‘‘include any organization or person that is authorized to engage 
in the business of insurance under the laws of any State, 
subject to the reporting requirements of the Securities 
Exchange Act of 1934 pursuant to section 13(a) or 15(d) of 
such Act (15 U.S.C. 78m(a) and 78o(d)), or authorized by the 
Administrator to assume reinsurance on risks insured by the 
flood insurance program;’’. 
(e) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 
(1) ASSESSMENT.— 
(A) ASSESSMENT REQUIRED.— 
(i) IN GENERAL.—Not later than September 30 of 
each year, the Administrator shall conduct an assess-
ment of the ability of the National Flood Insurance 
Program to pay claims. 
(ii) PRIVATE MARKET REINSURANCE.—The assess-
ment under this paragraph for any year in which the 
Administrator exercises the authority under section 
1335(a)(2) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4055(a)(2)), as added by this section, to 
secure reinsurance of coverage provided by the 
National Flood Insurance Program from the private 
market shall include information relating the use of 
private sector reinsurance and reinsurance equivalents 
by the Administrator, whether or not the Administrator 
used the borrowing authority under section 1309 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4016). 
(iii) FIRST ASSESSMENT.—The Administrator shall 
conduct the first assessment required under this para-
graph not later than September 30, 2012. 
(B) CONSIDERATIONS.—In conducting an assessment 
under subparagraph (A), the Administrator shall take into 
consideration regional concentrations of coverage written 
by the National Flood Insurance Program, peak flood zones, 
and relevant mitigation measures. 
(2) ANNUAL REPORT OF THE ADMINISTRATOR OF ACTIVITIES 
UNDER
THE
NATIONAL
FLOOD
INSURANCE
PROGRAM.—The 
Administrator shall— 
(A) include the results of each assessment in the report 
required under section 100231(b); and 
(B) not later than 30 days after the date on which 
the Administrator completes an assessment required under 
paragraph (1), make the results of the assessment available 
to the public. 
SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND ADDI-
TIONAL LIVING EXPENSES COVERAGES. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study concerning— 
(1) the availability of additional living expenses and busi-
ness interruption coverage in the private marketplace for flood 
insurance; 
(2) the feasibility of allowing the National Flood Insurance 
Program to offer such coverage at the option of the consumer; 
(3) the estimated cost to consumers if the National Flood 
Insurance Program priced such optional coverage at true actu-
arial rates;
H. R. 4348—552 
(4) the impact such optional coverage would have on con-
sumer participation in the National Flood Insurance Program; 
and 
(5) the fiscal impact such optional coverage would have 
upon the National Flood Insurance Fund if such optional cov-
erage were included in the National Flood Insurance Program, 
as described in paragraph (2), at the price described in para-
graph (3). 
(b) REPORT.—Not later than 1 year after the date of enactment 
of this Act, the Comptroller General shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
a report containing the results of the study under subsection (a). 
SEC. 100234. POLICY DISCLOSURES. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
in addition to any other disclosures that may be required, each 
policy under the National Flood Insurance Program shall state 
all conditions, exclusions, and other limitations pertaining to cov-
erage under the subject policy, regardless of the underlying insur-
ance product, in plain English, in boldface type, and in a font 
size that is twice the size of the text of the body of the policy. 
(b) VIOLATIONS.—The Administrator may impose a civil penalty 
of not more than $50,000 on any person that fails to comply with 
subsection (a). 
SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN FLOOD-
PLAIN MANAGEMENT CRITERIA. 
Not later than 6 months after the date of enactment of this 
Act, the Administrator of the Federal Emergency Management 
Agency shall conduct a study and submit a report to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
regarding the impact, effectiveness, and feasibility of amending 
section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102) to include widely used and nationally recognized building 
codes as part of the floodplain management criteria developed under 
such section, and shall determine— 
(1) the regulatory, financial, and economic impacts of such 
a building code requirement on homeowners, States and local 
communities, local land use policies, and the Federal Emer-
gency Management Agency; 
(2) the resources required of State and local communities 
to administer and enforce such a building code requirement; 
(3) the effectiveness of such a building code requirement 
in reducing flood-related damage to buildings and contents; 
(4) the impact of such a building code requirement on 
the actuarial soundness of the National Flood Insurance Pro-
gram; 
(5) the effectiveness of nationally recognized codes in 
allowing innovative materials and systems for flood-resistant 
construction; 
(6) the feasibility and effectiveness of providing an incentive 
in lower premium rates for flood insurance coverage under 
such Act for structures meeting whichever of such widely used 
and nationally recognized building codes or any applicable local 
building codes provides greater protection from flood damage;
H. R. 4348—553 
(7) the impact of such a building code requirement on 
rural communities with different building code challenges than 
urban communities; and 
(8) the impact of such a building code requirement on 
Indian reservations. 
SEC. 100236. STUDY OF PARTICIPATION AND AFFORDABILITY FOR CER-
TAIN POLICYHOLDERS. 
(a) FEMA STUDY.—The Administrator shall conduct a study 
of— 
(1) methods to encourage and maintain participation in 
the National Flood Insurance Program; 
(2) methods to educate consumers about the National Flood 
Insurance Program and the flood risk associated with their 
property; 
(3) methods for establishing an affordability framework 
for the National Flood Insurance Program, including methods 
to aid individuals to afford risk-based premiums under the 
National Flood Insurance Program through targeted assistance 
rather than generally subsidized rates, including means-tested 
vouchers; and 
(4) the implications for the National Flood Insurance Pro-
gram and the Federal budget of using each such method. 
(b) NATIONAL ACADEMY OF SCIENCES ECONOMIC ANALYSIS.— 
To inform the Administrator in the conduct of the study under 
subsection (a), the Administrator shall enter into a contract under 
which the National Academy of Sciences, in consultation with the 
Comptroller General of the United States, shall conduct and submit 
to the Administrator an economic analysis of the costs and benefits 
to the Federal Government of a flood insurance program with 
full risk-based premiums, combined with means-tested Federal 
assistance to aid individuals who cannot afford coverage, through 
an insurance voucher program. The analysis shall compare the 
costs of a program of risk-based rates and means-tested assistance 
to the current system of subsidized flood insurance rates and feder-
ally funded disaster relief for people without coverage. 
(c) REPORT.—Not later than 270 days after the date of enact-
ment of this Act, the Administrator shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
a report that contains the results of the study and analysis under 
this section. 
(d) FUNDING.—Notwithstanding section 1310 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be avail-
able to the Administrator from the National Flood Insurance Fund, 
of amounts not otherwise obligated, not more than $750,000 to 
carry out this section. 
SEC. 100237. STUDY AND REPORT CONCERNING THE PARTICIPATION 
OF INDIAN TRIBES AND MEMBERS OF INDIAN TRIBES 
IN THE NATIONAL FLOOD INSURANCE PROGRAM. 
(a) DEFINITION.—In this section, the term ‘‘Indian tribe’’ has 
the meaning given that term in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 450b). 
(b) FINDINGS.—Congress finds that participation by Indian 
tribes in the National Flood Insurance Program is low. Only 45 
of 565 Indian tribes participate in the National Flood Insurance 
Program.
H. R. 4348—556 
program and policies issued on behalf of private insur-
ance companies and to direct inquiries regarding the 
availability, cost, and comparisons of flood insurance 
coverage to an insurance agent. 
‘‘(B) RULE OF CONSTRUCTION.—Nothing in this para-
graph shall be construed as affecting or otherwise limiting 
the authority of a Federal entity for lending regulation 
to approve any disclosure made by a regulated lending 
institution for purposes of complying with subparagraph 
(A). 
‘‘(7) PRIVATE
FLOOD
INSURANCE
DEFINED.—In this sub-
section, the term ‘private flood insurance’ means an insurance 
policy that— 
‘‘(A) is issued by an insurance company that is— 
‘‘(i) licensed, admitted, or otherwise approved to 
engage in the business of insurance in the State or 
jurisdiction in which the insured building is located, 
by the insurance regulator of that State or jurisdiction; 
or 
‘‘(ii) in the case of a policy of difference in condi-
tions, multiple peril, all risk, or other blanket coverage 
insuring nonresidential commercial property, is recog-
nized, or not disapproved, as a surplus lines insurer 
by the insurance regulator of the State or jurisdiction 
where the property to be insured is located; 
‘‘(B) provides flood insurance coverage which is at least 
as broad as the coverage provided under a standard flood 
insurance policy under the national flood insurance pro-
gram, including when considering deductibles, exclusions, 
and conditions offered by the insurer; 
‘‘(C) includes— 
‘‘(i) a requirement for the insurer to give 45 days’ 
written notice of cancellation or non-renewal of flood 
insurance coverage to— 
‘‘(I) the insured; and 
‘‘(II) the regulated lending institution or Fed-
eral agency lender; 
‘‘(ii) information about the availability of flood 
insurance coverage under the national flood insurance 
program; 
‘‘(iii) a mortgage interest clause similar to the 
clause contained in a standard flood insurance policy 
under the national flood insurance program; and 
‘‘(iv) a provision requiring an insured to file suit 
not later than 1 year after date of a written denial 
of all or part of a claim under the policy; and 
‘‘(D) contains cancellation provisions that are as restric-
tive as the provisions contained in a standard flood insur-
ance policy under the national flood insurance program.’’. 
(b) 
TECHNICAL
AND
CONFORMING
AMENDMENT.—Section 
1364(a)(3)(C) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104a(a)(3)(C)) is amended by inserting after ‘‘private insurers’’ 
the following: ‘‘, as required under section 102(b)(6) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(6))’’.
H. R. 4348—557 
SEC. 100240. LEVEES CONSTRUCTED ON CERTAIN PROPERTIES. 
(a) DEFINITION.—In this section, the term ‘‘covered hazard miti-
gation land’’ means land that— 
(1) was acquired and deed restricted under section 1366 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
during the period beginning on January 1, 1999, and ending 
December 31, 2011; 
(2) is located at— 
(A) 1029 Oak Street, Fargo, North Dakota; 
(B) 27 South Terrace, Fargo, North Dakota; 
(C) 1033 Oak Street, Fargo, North Dakota; 
(D) 308 Schnell Drive, Oxbow, North Dakota; or 
(E) 306 Schnell Drive, Oxbow, North Dakota; and 
(3) is located in a community that— 
(A) is participating in the National Flood Insurance 
Program on the date on which a State, local, or tribal 
government submits an application requesting to construct 
a permanent flood risk reduction levee under subsection 
(b); and 
(B) certifies to the Administrator and the Chief of 
Engineers that the community will continue to participate 
in the National Flood Insurance Program. 
(b) AUTHORITY.—Notwithstanding any other prohibition on 
construction on property acquired with funding from the Federal 
Emergency Management Agency for conversion to open space pur-
poses, the Administrator shall allow the construction of a permanent 
flood risk reduction levee by a State, local, or tribal government 
on covered hazard mitigation land if— 
(1) the Administrator and the Chief of Engineers make 
a determination that— 
(A) construction of the proposed permanent flood risk 
reduction levee would more effectively mitigate against 
flooding risk than an open floodplain or other flood risk 
reduction measures; 
(B) the proposed permanent flood risk reduction levee 
complies with Federal, State, and local requirements, 
including mitigation of adverse impacts and implementa-
tion of floodplain management requirements, which shall 
include an evaluation of whether the construction, oper-
ation, and maintenance of the proposed levee— 
(i) would continue to meet best available industry 
standards and practices; 
(ii) would be the most cost-effective measure to 
protect against the assessed flood risk; and 
(iii) minimizes future costs to the Federal Govern-
ment; 
(C) the State, local, or tribal government seeking to 
construct the proposed permanent flood risk reduction levee 
has provided an adequate maintenance plan that docu-
ments the procedures the State, local, or tribal government 
will use to ensure that the stability, height, and overall 
integrity of the proposed levee and the structure and sys-
tems of the proposed levee are maintained, including— 
(i) specifying the maintenance activities to be per-
formed; 
(ii) specifying the frequency with which mainte-
nance activities will be performed;
H. R. 4348—558 
(iii) specifying the person responsible for per-
forming each maintenance activity (by name or title); 
(iv) detailing the plan for financing the mainte-
nance of the levee; and 
(v) documenting the ability of the State, local, or 
tribal government to finance the maintenance of the 
levee; and 
(2) before the commencement of construction, the State, 
local, or tribal government provides to the Administrator an 
amount— 
(A) equal to the Federal share of all project costs 
previously provided by the Administrator under the 
applicable program for each deed restricted parcel of the 
covered hazard mitigation land, which the Administrator 
shall deposit in the National Flood Insurance Fund; and 
(B) that does not include any Federal funds. 
(c) MAINTENANCE CERTIFICATION.— 
(1) IN GENERAL.—A State, local, or tribal government that 
constructs a permanent flood risk reduction levee under sub-
section (b) shall submit to the Administrator and the Chief 
of Engineers an annual certification indicating whether the 
State, local, or tribal government is in compliance with the 
maintenance plan provided under subsection (b)(1)(C). 
(2) REVIEW.—The Chief of Engineers shall review each 
certification submitted under paragraph (1) and determine 
whether the State, local, or tribal government has complied 
with the maintenance plan. 
SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES 
AFFECTED BY FLOODING FROM FEDERAL LANDS. 
Section 1306(c)(2) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(c)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘or’’ at the end; 
(2) in subparagraph (B), by striking the period at the 
end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(C) the initial purchase of flood insurance coverage 
for private property if— 
‘‘(i) the Administrator determines that the property 
is affected by flooding on Federal land that is a result 
of, or is exacerbated by, post-wildfire conditions, after 
consultation with an authorized employee of the Fed-
eral agency that has jurisdiction of the land on which 
the wildfire that caused the post-wildfire conditions 
occurred; and 
‘‘(ii) the flood insurance coverage was purchased 
not later than 60 days after the fire containment date, 
as determined by the appropriate Federal employee, 
relating to the wildfire that caused the post-wildfire 
conditions described in clause (i).’’. 
SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD INSUR-
ANCE PLAN. 
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:
H. R. 4348—559 
‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE 
OF HURRICANE SEASON. 
‘‘(a) IN GENERAL.—Notwithstanding any other provision of law, 
including the adequate land use and control measures developed 
pursuant to section 1361 and applicable to non-one- and two-family 
structures located within coastal areas, as identified by the Adminis-
trator, the following may be permitted: 
‘‘(1) Nonsupporting breakaway walls in the space below 
the lowest elevated floor of a building, if the space is used 
solely for a swimming pool between November 30 and June 
1 of any year, in an area designated as Zone V on a flood 
insurance rate map. 
‘‘(2) Openings in walls in the space below the lowest ele-
vated floor of a building, if the space is used solely for a 
swimming pool between November 30 and June 1 of any year, 
in an area designated as Zone A on a flood insurance rate 
map. 
‘‘(b) RULE OF CONSTRUCTION.—Nothing in subsection (a) shall 
be construed to alter the terms and conditions of eligibility and 
insurability of coverage for a building under the standard flood 
insurance policy under the national flood insurance program.’’. 
SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH 
ACTIVITIES 
AND 
COMMUNITY 
BUILDING 
CODE 
ADMINISTRATION GRANTS. 
(a) AMENDMENTS.—Section 105(a) of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5305(a)) is amended— 
(1) by redesignating paragraph (25) as paragraph (26); 
(2) by redesignating the second paragraph designated as 
paragraph (24) (relating to tornado-safe shelters) as paragraph 
(25); 
(3) in paragraph (24) (relating to homeownership among 
persons with low and moderate income), by striking ‘‘and’’ at 
the end; 
(4) in paragraph (25), as so redesignated, by striking ‘‘and’’ 
at the end; 
(5) in paragraph (26), as so redesignated, by striking the 
period at the end and inserting a semicolon; and 
(6) by adding at the end the following new paragraphs: 
‘‘(27) supplementing existing State or local funding for 
administration of building code enforcement by local building 
code enforcement departments, including for increasing staffing, 
providing staff training, increasing staff competence and profes-
sional qualifications, and supporting individual certification or 
departmental accreditation, and for capital expenditures specifi-
cally dedicated to the administration of the building code 
enforcement department, except that, to be eligible to use 
amounts as provided in this paragraph— 
‘‘(A) a building code enforcement department shall pro-
vide matching, non-Federal funds to be used in conjunction 
with amounts used under this paragraph in an amount— 
‘‘(i) in the case of a building code enforcement 
department serving an area with a population of more 
than 50,000, equal to not less than 50 percent of the 
total amount of any funds made available under this 
title that are used under this paragraph;