SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Sequester Replacement 
Reconciliation Act of 2012’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—AGRICULTURE 
Sec. 101. Short title. 
Sec. 102. ARRA sunset at June 30, 2012. 
Sec. 103. Categorical eligibility limited to cash assistance. 
Sec. 104. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 105. Employment and training; workfare. 
Sec. 106. End State bonus program for the supplemental nutrition assistance 
program. 
Sec. 107. Funding of employment and training programs. 
Sec. 108. Turn off indexing for nutrition education and obesity prevention. 
Sec. 109. Extension of Authorization of Food and Nutrition Act of 2008. 
Sec. 110. Effective dates and application of amendments. 
TITLE II—COMMITTEE ON ENERGY AND COMMERCE 
Subtitle A—Repeal of Certain ACA Funding Provisions 
Sec. 201. Repealing mandatory funding to states to establish American Health 
Benefit Exchanges. 
Sec. 202. Repealing Prevention and Public Health Fund. 
Sec. 203. Rescinding unobligated balances for CO-OP program. 
Subtitle B—Medicaid 
Sec. 211. Revision of provider tax indirect guarantee threshold. 
Sec. 212. Rebasing of State DSH allotments for fiscal year 2022. 
Sec. 213. Repeal of Medicaid and CHIP maintenance of effort requirements 
under PPACA. 
Sec. 214. Medicaid payments to territories. 
Sec. 215. Repealing bonus payments for enrollment under Medicaid and CHIP. 
TITLE III—FINANCIAL SERVICES 
Sec. 301. Table of contents. 
Subtitle A—Orderly Liquidation Fund 
Sec. 311. Repeal of liquidation authority. 
Subtitle B—Home Affordable Modification Program 
Sec. 321. Short title. 
Sec. 322. Congressional findings.
Sec. 323. Termination of authority. 
Sec. 324. Sense of Congress. 
Subtitle C—Bureau of Consumer Financial Protection 
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
Subtitle D—Flood Insurance Reform 
Sec. 341. Short title. 
Sec. 342. Extensions. 
Sec. 343. Mandatory purchase. 
Sec. 344. Reforms of coverage terms. 
Sec. 345. Reforms of premium rates. 
Sec. 346. Technical Mapping Advisory Council. 
Sec. 347. FEMA incorporation of new mapping protocols. 
Sec. 348. Treatment of levees. 
Sec. 349. Privatization initiatives. 
Sec. 350. FEMA annual report on insurance program. 
Sec. 351. Mitigation assistance. 
Sec. 352. Notification to homeowners regarding mandatory purchase require-
ment applicability and rate phase-ins. 
Sec. 353. Notification to members of congress of flood map revisions and up-
dates. 
Sec. 354. Notification and appeal of map changes; notification to communities 
of establishment of flood elevations. 
Sec. 355. Notification to tenants of availability of contents insurance. 
Sec. 356. Notification to policy holders regarding direct management of policy 
by FEMA. 
Sec. 357. Notice of availability of flood insurance and escrow in RESPA good 
faith estimate. 
Sec. 358. Reimbursement for costs incurred by homeowners and communities 
obtaining letters of map amendment or revision. 
Sec. 359. Enhanced communication with certain communities during map up-
dating process. 
Sec. 360. Notification to residents newly included in flood hazard areas. 
Sec. 361. Treatment of swimming pool enclosures outside of hurricane season. 
Sec. 362. Information regarding multiple perils claims. 
Sec. 363. FEMA authority to reject transfer of policies. 
Sec. 364. Appeals. 
Sec. 365. Reserve fund. 
Sec. 366. CDBG eligibility for flood insurance outreach activities and commu-
nity building code administration grants. 
Sec. 367. Technical corrections. 
Sec. 368. Requiring competition for national flood insurance program policies. 
Sec. 369. Studies of voluntary community-based flood insurance options. 
Sec. 370. Report on inclusion of building codes in floodplain management cri-
teria. 
Sec. 371. Study on graduated risk. 
Sec. 372. Report on flood-in-progress determination. 
Sec. 373. Study on repaying flood insurance debt. 
Sec. 374. No cause of action. 
Sec. 375. Authority for the corps of engineers to provide specialized or technical 
services.
Subtitle E—Repeal of the Office of Financial Research 
Sec. 381. Repeal of the Office of Financial Research. 
TITLE IV—COMMITTEE ON THE JUDICIARY 
Sec. 401. Short title. 
Sec. 402. Encouraging speedy resolution of claims. 
Sec. 403. Compensating patient injury. 
Sec. 404. Maximizing patient recovery. 
Sec. 405. Punitive damages. 
Sec. 406. Authorization of payment of future damages to claimants in health 
care lawsuits. 
Sec. 407. Definitions. 
Sec. 408. Effect on other laws. 
Sec. 409. State flexibility and protection of States’ rights. 
Sec. 410. Applicability; effective date. 
TITLE V—COMMITTEE ON OVERSIGHT AND GOVERNMENT 
REFORM 
Sec. 501. Retirement contributions. 
Sec. 502. Annuity supplement. 
Sec. 503. Contributions to Thrift Savings Fund of payments for accrued or ac-
cumulated leave. 
TITLE VI—COMMITTEE ON WAYS AND MEANS 
Subtitle A—Recapture of Overpayments Resulting From Certain Federally- 
subsidized Health Insurance 
Sec. 601. Recapture of overpayments resulting from certain federally-subsidized 
health insurance. 
Subtitle B—Social Security Number Required to Claim the Refundable 
Portion of the Child Tax Credit 
Sec. 611. Social security number required to claim the refundable portion of the 
child tax credit. 
Subtitle C—Human Resources Provisions 
Sec. 621. Repeal of the program of block grants to States for social services. 
TITLE VII—SEQUESTER REPLACEMENT 
Sec. 701. Short title. 
Sec. 702. Protecting veterans programs from sequester. 
Sec. 703. Achieving $19 billion in discretionary savings. 
Sec. 704. Conforming amendments to section 314 of the Congressional Budget 
and Impoundment Control Act of 1974. 
Sec. 705. Treatment for PAYGO purposes. 
Sec. 706. Elimination of the fiscal year 2013 sequestration for defense direct 
spending.
TITLE I—AGRICULTURE 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Agricultural Reconcili-
ation Act of 2012’’. 
SEC. 102. ARRA SUNSET AT JUNE 30, 2012. 
Section 101(a)(2) of division A of the American Re-
covery and Reinvestment Act of 2009 (Public Law 111– 
5; 123 Stat. 120) is amended by striking ‘‘October 31, 
2013’’ and inserting ‘‘June 30, 2012’’. 
SEC. 103. CATEGORICAL ELIGIBILITY LIMITED TO CASH AS-
SISTANCE. 
Section 5 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014) is amended— 
(1) in the 2d sentence of subsection (a) by 
striking ‘‘households in which each member receives 
benefits’’ and inserting ‘‘households in which each 
member receives cash assistance’’, and 
(2) in subsection (j) by striking ‘‘or who re-
ceives benefits under a State program’’ and inserting 
‘‘or who receives cash assistance under a State pro-
gram’’.
SEC. 104. STANDARD UTILITY ALLOWANCES BASED ON THE 
RECEIPT 
OF 
ENERGY 
ASSISTANCE 
PAY-
MENTS. 
(a) STANDARD UTILITY ALLOWANCE.—Section 5 of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended— 
(1) in subsection (e)(6)(C) by striking clause 
(iv), and 
(2) in subsection (k) by striking paragraph (4) 
and inserting the following: 
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY-
MENTS.—For purposes of subsection (d)(1), a pay-
ment made under a State law (other than a law re-
ferred to in paragraph (2)(G)) to provide energy as-
sistance to a household shall be considered money 
payable directly to the household.’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
2605(f)(2) of the Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8624(f)(2)) is amended— 
(1) by striking ‘‘and for purposes of deter-
mining any excess shelter expense deduction under 
section 5(e) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2014(e))’’, and 
(2) in subparagraph (A) by inserting before the 
semicolon the following: ‘‘, except that such pay-
ments or allowances shall not be deemed to be ex-
pended for purposes of determining any excess shel-
ter expense deduction under section 5(e)(6) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(6))’’. 
SEC. 105. EMPLOYMENT AND TRAINING; WORKFARE. 
(a) ADMINISTRATIVE COST-SHARING FOR EMPLOY-
MENT AND TRAINING PROGRAMS.— 
(1) IN GENERAL.—Section 16 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025) is amend-
ed— 
(A) in subsection (a) by inserting ‘‘(other 
than a program carried out under section 
6(d)(4) or section 20)’’ after ‘‘supplemental nu-
trition assistance program’’ the 1st place it ap-
pears, and 
(B) in subsection (h)— 
(i) by striking paragraphs (2) and (3), 
and 
(ii) by redesignating paragraphs (4) 
and (5) as paragraphs (2) and (3), respec-
tively. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 17(b)(1)(B)(iv)(III)(hh) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2026(b)(1)(B)(iv)(III)(hh)) 
is 
amended 
by
all that follows through the period at the end, and insert-
ing ‘‘years, $375,000,000.’’. 
SEC. 109. EXTENSION OF AUTHORIZATION OF FOOD AND 
NUTRITION ACT OF 2008. 
Section 18(a)(1) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2027(a)(1)) is amended by striking 
‘‘2012’’ and inserting ‘‘2013’’. 
SEC. 110. EFFECTIVE DATES AND APPLICATION OF AMEND-
MENTS. 
(a) GENERAL EFFECTIVE DATE.—Except as pro-
vided in subsection (b), this title and the amendments 
made by this title shall take effect on October 1, 2012, 
and shall apply only with respect to certification periods 
that begin on or after such date. 
(b) SPECIAL EFFECTIVE DATE.—Section 107 and 
the amendments made by sections 102, 103, 104, and 109 
shall take effect on the date of the enactment of this Act 
and shall apply only with respect to certification periods 
that begin on or after such date.
TITLE II—COMMITTEE ON 
ENERGY AND COMMERCE 
Subtitle A—Repeal of Certain ACA 
Funding Provisions 
SEC. 201. REPEALING MANDATORY FUNDING TO STATES TO 
ESTABLISH AMERICAN HEALTH BENEFIT EX-
CHANGES. 
(a) IN GENERAL.—Section 1311(a) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18031(a)) 
is repealed. 
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available under such section 1311(a), the un-
obligated balance is rescinded. 
SEC. 202. REPEALING PREVENTION AND PUBLIC HEALTH 
FUND. 
(a) IN GENERAL.—Section 4002 of the Patient Pro-
tection and Affordable Care Act (42 U.S.C. 300u–11) is 
repealed. 
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available by such section 4002, the unobli-
gated balance is rescinded.
SEC. 203. RESCINDING UNOBLIGATED BALANCES FOR CO- 
OP PROGRAM. 
Of the funds made available under section 1322(g) 
of the Patient Protection and Affordable Care Act (42 
U.S.C. 18042(g)), the unobligated balance is rescinded. 
Subtitle B—Medicaid 
SEC. 211. REVISION OF PROVIDER TAX INDIRECT GUAR-
ANTEE THRESHOLD. 
Section 1903(w)(4)(C)(ii) of the Social Security Act 
(42 U.S.C. 1396b(w)(4)(C)(ii)) is amended by inserting 
‘‘and for portions of fiscal years beginning on or after Oc-
tober 1, 2012,’’ after ‘‘October 1, 2011,’’. 
SEC. 212. REBASING OF STATE DSH ALLOTMENTS FOR FIS-
CAL YEAR 2022. 
Section 1923(f) of the Social Security Act (42 U.S.C. 
1396r–4(f)) is amended— 
(1) by redesignating paragraph (9) as para-
graph (10); 
(2) in paragraph (3)(A) by striking ‘‘para-
graphs (6), (7), and (8)’’ and inserting ‘‘paragraphs 
(6), (7), (8), and (9)’’; and 
(3) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) REBASING OF STATE DSH ALLOTMENTS 
FOR
FISCAL
YEAR
2022.—With respect to fiscal 
2022, for purposes of applying paragraph (3)(A) to
determine the DSH allotment for a State, the 
amount of the DSH allotment for the State under 
paragraph (3) for fiscal year 2021 shall be treated 
as if it were such amount as reduced under para-
graph (7).’’. 
SEC. 213. REPEAL OF MEDICAID AND CHIP MAINTENANCE 
OF EFFORT REQUIREMENTS UNDER PPACA. 
(a) REPEAL OF PPACA MEDICAID MOE.—Section 
1902 of the Social Security Act (42 U.S.C. 1396a) is 
amended by striking subsection (gg). 
(b) REPEAL
OF
PPACA CHIP MOE.—Section 
2105(d)(3) of the Social Security Act (42 U.S.C. 
1397ee(d)(3)) is amended— 
(1) by striking subparagraph (A); 
(2) by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively; and 
(3) in the paragraph heading, by striking 
‘‘CONTINUATION
OF
ELIGIBILITY
STANDARDS
FOR 
CHILDREN UNTIL OCTOBER 1, 2019’’ and inserting 
‘‘CONTINUITY OF COVERAGE’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1902(a) of the Social Security Act 
(42 U.S.C. 1396a(a)) is amended by striking para-
graph (74).
(2) Effective January 1, 2014, paragraph (14) 
of section 1902(e) (as added by section 2002(a) of 
Public Law 111–148) is amended by striking the 
third sentence of subparagraph (A). 
(d) EFFECTIVE DATE.—Except as provided in sub-
section (c)(2), the amendments made by this section shall 
take effect on the date of the enactment of this section. 
SEC. 214. MEDICAID PAYMENTS TO TERRITORIES. 
(a) LIMIT ON PAYMENTS.—Section 1108(g) of the 
Social Security Act (42 U.S.C. 1308(g)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘paragraphs (3) and (5)’’; 
and 
(B) by inserting ‘‘paragraph (3)’’ after 
‘‘and subject to’’; 
(2) in paragraph (4), by striking ‘‘(3), and’’ 
and all that follows through ‘‘of this subsection’’ and 
inserting ‘‘and (3) of this subsection’’; and 
(3) by striking paragraph (5). 
(b) FMAP.—The first sentence of section 1905(b) of 
the Social Security Act (42 U.S.C. 1396d(b)) is amended 
by striking ‘‘shall be 55 percent’’ and inserting ‘‘shall be 
50 percent’’.
SEC. 215. REPEALING BONUS PAYMENTS FOR ENROLL-
MENT UNDER MEDICAID AND CHIP. 
(a) IN GENERAL.—Paragraphs (3) and (4) of section 
2105(a) of the Social Security Act (42 U.S.C. 1397ee(a)) 
are repealed. 
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available by section 2105(a)(3) of the Social 
Security Act, the unobligated balance is rescinded. 
(c) CONFORMING CHANGES.— 
(1) AVAILABILITY OF EXCESS FUNDS FOR PER-
FORMANCE
BONUSES.—Section 2104(n)(2) of the 
Social Security Act (42 U.S.C. 1397dd(n)(2)) is 
amended by striking subparagraph (D). 
(2) OUTREACH OR COVERAGE BENCHMARKS.— 
Section 2111(b)(3) of the Social Security Act (42 
U.S.C. 1397kk(b)(3)) is amended— 
(A) in subparagraph (A)— 
(i) in clause (i), by inserting ‘‘or’’ 
after the semicolon at the end; and 
(ii) by striking clause (ii); and 
(B) by striking subparagraph (C). 
TITLE III—FINANCIAL SERVICES 
SEC. 301. TABLE OF CONTENTS. 
The table of contents for this title is as follows: 
TITLE III—FINANCIAL SERVICES 
Sec. 301. Table of contents.
Subtitle A—Orderly Liquidation Fund 
Sec. 311. Repeal of liquidation authority. 
Subtitle B—Home Affordable Modification Program 
Sec. 321. Short title. 
Sec. 322. Congressional findings. 
Sec. 323. Termination of authority. 
Sec. 324. Sense of Congress. 
Subtitle C—Bureau of Consumer Financial Protection 
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
Subtitle D—Flood Insurance Reform 
Sec. 341. Short title. 
Sec. 342. Extensions. 
Sec. 343. Mandatory purchase. 
Sec. 344. Reforms of coverage terms. 
Sec. 345. Reforms of premium rates. 
Sec. 346. Technical Mapping Advisory Council. 
Sec. 347. FEMA incorporation of new mapping protocols. 
Sec. 348. Treatment of levees. 
Sec. 349. Privatization initiatives. 
Sec. 350. FEMA annual report on insurance program. 
Sec. 351. Mitigation assistance. 
Sec. 352. Notification to homeowners regarding mandatory purchase require-
ment applicability and rate phase-ins. 
Sec. 353. Notification to members of congress of flood map revisions and up-
dates. 
Sec. 354. Notification and appeal of map changes; notification to communities 
of establishment of flood elevations. 
Sec. 355. Notification to tenants of availability of contents insurance. 
Sec. 356. Notification to policy holders regarding direct management of policy 
by FEMA. 
Sec. 357. Notice of availability of flood insurance and escrow in RESPA good 
faith estimate. 
Sec. 358. Reimbursement for costs incurred by homeowners and communities 
obtaining letters of map amendment or revision. 
Sec. 359. Enhanced communication with certain communities during map up-
dating process. 
Sec. 360. Notification to residents newly included in flood hazard areas. 
Sec. 361. Treatment of swimming pool enclosures outside of hurricane season. 
Sec. 362. Information regarding multiple perils claims. 
Sec. 363. FEMA authority to reject transfer of policies. 
Sec. 364. Appeals. 
Sec. 365. Reserve fund. 
Sec. 366. CDBG eligibility for flood insurance outreach activities and commu-
nity building code administration grants. 
Sec. 367. Technical corrections. 
Sec. 368. Requiring competition for national flood insurance program policies. 
Sec. 369. Studies of voluntary community-based flood insurance options. 
Sec. 370. Report on inclusion of building codes in floodplain management cri-
teria.
Sec. 371. Study on graduated risk. 
Sec. 372. Report on flood-in-progress determination. 
Sec. 373. Study on repaying flood insurance debt. 
Sec. 374. No cause of action. 
Sec. 375. Authority for the corps of engineers to provide specialized or technical 
services. 
Subtitle E—Repeal of the Office of Financial Research 
Sec. 381. Repeal of the Office of Financial Research. 
Subtitle A—Orderly Liquidation 
Fund 
SEC. 311. REPEAL OF LIQUIDATION AUTHORITY. 
(a) IN GENERAL.—Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby re-
pealed and any Federal law amended by such title shall, 
on and after the date of enactment of this Act, be effective 
as if title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act had not been enacted. 
(b) CONFORMING AMENDMENTS.— 
(1) DODD-FRANK WALL STREET REFORM AND 
CONSUMER
PROTECTION
ACT.—The Dodd-Frank 
Wall Street Reform and Consumer Protection Act is 
amended— 
(A) in the table of contents for such Act, 
by striking all items relating to title II; 
(B) in section 165(d)(6), by striking ‘‘, a 
receiver appointed under title II,’’; 
(C) in section 716(g), by striking ‘‘or a 
covered financial company under title II’’;
(D) in section 1105(e)(5), by striking 
‘‘amount of any securities issued under that 
chapter 31 for such purpose shall be treated in 
the same manner as securities issued under sec-
tion 208(n)(5)(E)’’ and inserting ‘‘issuances of 
such securities under that chapter 31 for such 
purpose shall by treated as public debt trans-
actions of the United States, and the proceeds 
from the sale of any obligations acquired by the 
Secretary under this paragraph shall be depos-
ited into the Treasury of the United States as 
miscellaneous receipts’’; and 
(E) in section 1106(c)(2), by amending 
subparagraph (A) to read as follows: 
‘‘(A) require the company to file a petition 
for bankruptcy under section 301 of title 11, 
United States Code; or’’. 
(2) FEDERAL DEPOSIT INSURANCE ACT.—Sec-
tion 10(b)(3) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(b)(3)) is amended by striking ‘‘, or 
of such nonbank financial company supervised by 
the Board of Governors or bank holding company 
described in section 165(a) of the Financial Stability 
Act of 2010, for the purpose of implementing its au-
thority to provide for orderly liquidation of any such 
company under title II of that Act’’. 
(3) FEDERAL RESERVE ACT.—Section 13(3) of 
the Federal Reserve Act is amended— 
(A) in subparagraph (B)— 
(i) in clause (ii), by striking ‘‘, resolu-
tion under title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection 
Act, or’’ and inserting ‘‘or is subject to 
resolution under’’; and 
(ii) in clause (iii), by striking ‘‘, reso-
lution under title II of the Dodd-Frank 
Wall Street Reform and Consumer Protec-
tion Act, or’’ and inserting ‘‘or resolution 
under’’; and 
(B) by striking subparagraph (E). 
Subtitle B—Home Affordable 
Modification Program 
SEC. 321. SHORT TITLE. 
This subtitle may be cited as the ‘‘HAMP Termi-
nation Act of 2012’’. 
SEC. 322. CONGRESSIONAL FINDINGS. 
The Congress finds the following: 
(1) According to the Department of the Treas-
ury—
(A) the Home Affordable Modification Pro-
gram (HAMP) is designed to ‘‘help as many as 
3 to 4 million financially struggling homeowners 
avoid foreclosure by modifying loans to a level 
that is affordable for borrowers now and sus-
tainable over the long term’’; and 
(B) as of February 2012, only 782,609 ac-
tive permanent mortgage modifications were 
made under HAMP. 
(2) Many homeowners whose HAMP modifica-
tions were canceled suffered because they made fu-
tile payments and some of those homeowners were 
even forced into foreclosure. 
(3) The Special Inspector General for TARP 
reported that HAMP ‘‘benefits only a small portion 
of distressed homeowners, offers others little more 
than false hope, and in certain cases causes more 
harm than good’’. 
(4) Approximately $30 billion was obligated by 
the Department of the Treasury to HAMP, however, 
approximately only $2.54 billion has been disbursed. 
(5) Terminating HAMP would save American 
taxpayers approximately $2.84 billion, according to 
the Congressional Budget Office.
SEC. 323. TERMINATION OF AUTHORITY. 
Section 120 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5230) is amended by adding at 
the end the following new subsection: 
‘‘(c) TERMINATION
OF AUTHORITY TO PROVIDE 
NEW ASSISTANCE UNDER
THE HOME AFFORDABLE 
MODIFICATION PROGRAM.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), after the date of the enactment of 
this subsection the Secretary may not provide any 
assistance under the Home Affordable Modification 
Program under the Making Home Affordable initia-
tive of the Secretary, authorized under this Act, on 
behalf of any homeowner. 
‘‘(2) PROTECTION OF EXISTING OBLIGATIONS 
ON BEHALF OF HOMEOWNERS ALREADY EXTENDED 
AN
OFFER
TO
PARTICIPATE
IN
THE
PROGRAM.— 
Paragraph (1) shall not apply with respect to assist-
ance provided on behalf of a homeowner who, before 
the date of the enactment of this subsection, was ex-
tended an offer to participate in the Home Afford-
able Modification Program on a trial or permanent 
basis. 
‘‘(3) DEFICIT REDUCTION.— 
‘‘(A) USE OF UNOBLIGATED FUNDS.—Not-
withstanding any other provision of this title,
the amounts described in subparagraph (B) 
shall not be available after the date of the en-
actment of this subsection for obligation or ex-
penditure under the Home Affordable Modifica-
tion Program of the Secretary, but should be 
covered into the General Fund of the Treasury 
and should be used only for reducing the budg-
et deficit of the Federal Government. 
‘‘(B) IDENTIFICATION
OF
UNOBLIGATED 
FUNDS.—The amounts described in this sub-
paragraph are any amounts made available 
under title I of the Emergency Economic Sta-
bilization Act of 2008 that— 
‘‘(i) have been allocated for use, but 
not yet obligated as of the date of the en-
actment of this subsection, under the 
Home Affordable Modification Program of 
the Secretary; and 
‘‘(ii) are not necessary for providing 
assistance under such Program on behalf 
of homeowners who, pursuant to para-
graph (2), may be provided assistance 
after the date of the enactment of this sub-
section.
‘‘(4) STUDY OF USE OF PROGRAM BY MEMBERS 
OF
THE
ARMED
FORCES, VETERANS, AND
GOLD 
STAR RECIPIENTS.— 
‘‘(A) STUDY.—The Secretary shall conduct 
a study to determine the extent of usage of the 
Home Affordable Modification Program by, and 
the impact of such Program on, covered home-
owners. 
‘‘(B) REPORT.—Not later than the expira-
tion of the 90-day period beginning on the date 
of the enactment of this subsection, the Sec-
retary shall submit to the Congress a report 
setting forth the results of the study under sub-
paragraph (A) and identifying best practices, 
derived from studying the Home Affordable 
Modification Program, that could be applied to 
existing mortgage assistance programs available 
to covered homeowners. 
‘‘(C) COVERED
HOMEOWNER.—For pur-
poses of this subsection, the term ‘covered 
homeowner’ means a homeowner who is— 
‘‘(i) a member of the Armed Forces of 
the United States on active duty or the 
spouse or parent of such a member;
‘‘(ii) a veteran, as such term is de-
fined in section 101 of title 38, United 
States Code; or 
‘‘(iii) eligible to receive a Gold Star 
lapel pin under section 1126 of title 10, 
United States Code, as a widow, parent, or 
next of kin of a member of the Armed 
Forces person who died in a manner de-
scribed in subsection (a) of such section. 
‘‘(5) PUBLICATION OF MEMBER AVAILABILITY 
FOR ASSISTANCE.—Not later than 5 days after the 
date of the enactment of this subsection, the Sec-
retary of the Treasury shall publish to its Website 
on the World Wide Web in a prominent location, 
large point font, and boldface type the following 
statement: ‘The Home Affordable Modification Pro-
gram (HAMP) has been terminated. If you are hav-
ing trouble paying your mortgage and need help con-
tacting your lender or servicer for purposes of nego-
tiating or acquiring a loan modification, please con-
tact your Member of Congress to assist you in con-
tacting your lender or servicer for the purpose of ne-
gotiating or acquiring a loan modification.’. 
‘‘(6) NOTIFICATION TO HAMP APPLICANTS RE-
QUIRED.—Not later than 30 days after the date of
the enactment of this subsection, the Secretary of 
the Treasury shall inform each individual who ap-
plied for the Home Affordable Modification Program 
and will not be considered for a modification under 
such Program due to termination of such Program 
under this subsection— 
‘‘(A) that such Program has been termi-
nated; 
‘‘(B) that loan modifications under such 
Program are no longer available; 
‘‘(C) of the name and contact information 
of such individual’s Member of Congress; and 
‘‘(D) that the individual should contact his 
or her Member of Congress to assist the indi-
vidual in contacting the individual’s lender or 
servicer for the purpose of negotiating or ac-
quiring a loan modification.’’. 
SEC. 324. SENSE OF CONGRESS. 
The Congress encourages banks to work with home-
owners to provide loan modifications to those that are eli-
gible. The Congress also encourages banks to work and 
assist homeowners and prospective homeowners with fore-
closure prevention programs and information on loan 
modifications.
Subtitle C—Bureau of Consumer 
Financial Protection 
SEC. 331. BRINGING THE BUREAU OF CONSUMER FINAN-
CIAL PROTECTION INTO THE REGULAR AP-
PROPRIATIONS PROCESS. 
Section 1017 of the Consumer Financial Protection 
Act of 2010 is amended— 
(1) in subsection (a)— 
(A) by amending the heading of such sub-
section to read as follows: ‘‘BUDGET, FINAN-
CIAL MANAGEMENT, AND AUDIT.—’’; 
(B) by striking paragraphs (1), (2), and 
(3); 
(C) by redesignating paragraphs (4) and 
(5) as paragraphs (1) and (2), respectively; and 
(D) by striking subparagraphs (E) and (F) 
of paragraph (1), as so redesignated; 
(2) by striking subsections (b), (c), and (d); 
(3) by redesignating subsection (e) as sub-
section (b); and 
(4) in subsection (b), as so redesignated— 
(A) by striking paragraphs (1), (2), and 
(3) and inserting the following: 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
is 
authorized 
to 
be 
appropriated
$200,000,000 to carry out this title for each of fiscal 
years 2012 and 2013.’’; and 
(B) by redesignating paragraph (4) as 
paragraph (2). 
Subtitle D—Flood Insurance 
Reform 
SEC. 341. SHORT TITLE. 
This subtitle may be cited as the ‘‘Flood Insurance 
Reform Act of 2012’’. 
SEC. 342. EXTENSIONS. 
(a) EXTENSION OF PROGRAM.—Section 1319 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4026) 
is amended by striking ‘‘the earlier of the date of the en-
actment into law of an Act that specifically amends the 
date specified in this section or May 31, 2012’’ and insert-
ing ‘‘September 30, 2016’’. 
(b) EXTENSION OF FINANCING.—Section 1309(a) of 
such Act (42 U.S.C. 4016(a)) is amended by striking ‘‘the 
earlier of the date of the enactment into law of an Act 
that specifically amends the date specified in this section 
or May 31, 2012’’ and inserting ‘‘September 30, 2016’’. 
SEC. 343. MANDATORY PURCHASE. 
(a) AUTHORITY TO TEMPORARILY SUSPEND MANDA-
TORY PURCHASE REQUIREMENT.—
(1) IN GENERAL.—Section 102 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a) 
is amended by adding at the end the following new 
subsection: 
‘‘(i) AUTHORITY TO TEMPORARILY SUSPEND MAN-
DATORY PURCHASE REQUIREMENT.— 
‘‘(1) FINDING BY ADMINISTRATOR THAT AREA 
IS AN ELIGIBLE AREA.—For any area, upon a re-
quest submitted to the Administrator by a local gov-
ernment authority having jurisdiction over any por-
tion of the area, the Administrator shall make a 
finding of whether the area is an eligible area under 
paragraph (3). If the Administrator finds that such 
area is an eligible area, the Administrator shall, in 
the discretion of the Administrator, designate a pe-
riod during which such finding shall be effective, 
which shall not be longer in duration than 12 
months. 
‘‘(2) SUSPENSION
OF
MANDATORY
PURCHASE 
REQUIREMENT.—If the Administrator makes a find-
ing under paragraph (1) that an area is an eligible 
area under paragraph (3), during the period speci-
fied in the finding, the designation of such eligible 
area as an area having special flood hazards shall 
not be effective for purposes of subsections (a), (b),
and (e) of this section, and section 202(a) of this 
Act. Nothing in this paragraph may be construed to 
prevent any lender, servicer, regulated lending insti-
tution, Federal agency lender, the Federal National 
Mortgage Association, or the Federal Home Loan 
Mortgage Corporation, at the discretion of such enti-
ty, from requiring the purchase of flood insurance 
coverage in connection with the making, increasing, 
extending, or renewing of a loan secured by im-
proved real estate or a mobile home located or to be 
located in such eligible area during such period or 
a lender or servicer from purchasing coverage on be-
half of a borrower pursuant to subsection (e). 
‘‘(3) ELIGIBLE AREAS.—An eligible area under 
this paragraph is an area that is designated or will, 
pursuant to any issuance, revision, updating, or 
other change in flood insurance maps that takes ef-
fect on or after the date of the enactment of the 
Flood Insurance Reform Act of 2012, become des-
ignated as an area having special flood hazards and 
that meets any one of the following 3 requirements: 
‘‘(A) AREAS WITH NO HISTORY OF SPE-
CIAL FLOOD HAZARDS.—The area does not in-
clude any area that has ever previously been
designated as an area having special flood haz-
ards. 
‘‘(B) AREAS
WITH
FLOOD
PROTECTION 
SYSTEMS
UNDER
IMPROVEMENTS.—The area 
was intended to be protected by a flood protec-
tion system— 
‘‘(i) that has been decertified, or is re-
quired to be certified, as providing protec-
tion for the 100-year frequency flood 
standard; 
‘‘(ii) that is being improved, con-
structed, or reconstructed; and 
‘‘(iii) for which the Administrator has 
determined measurable progress toward 
completion of such improvement, construc-
tion, reconstruction is being made and to-
ward securing financial commitments suffi-
cient to fund such completion. 
‘‘(C) AREAS
FOR
WHICH
APPEAL
HAS 
BEEN FILED.—An area for which a community 
has appealed designation of the area as having 
special flood hazards in a timely manner under 
section 1363. 
‘‘(4) EXTENSION OF DELAY.—Upon a request 
submitted by a local government authority having
jurisdiction over any portion of the eligible area, the 
Administrator may extend the period during which a 
finding under paragraph (1) shall be effective, ex-
cept that— 
‘‘(A) each such extension under this para-
graph shall not be for a period exceeding 12 
months; and 
‘‘(B) for any area, the cumulative number 
of such extensions may not exceed 2. 
‘‘(5) ADDITIONAL
EXTENSION
FOR
COMMU-
NITIES MAKING MORE THAN ADEQUATE PROGRESS 
ON FLOOD PROTECTION SYSTEM.— 
‘‘(A) EXTENSION.— 
‘‘(i) AUTHORITY.—Except as provided 
in subparagraph (B), in the case of an eli-
gible area for which the Administrator has, 
pursuant to paragraph (4), extended the 
period of effectiveness of the finding under 
paragraph (1) for the area, upon a request 
submitted by a local government authority 
having jurisdiction over any portion of the 
eligible area, if the Administrator finds 
that more than adequate progress has been 
made on the construction of a flood protec-
tion system for such area, as determined in
accordance with the last sentence of sec-
tion 1307(e) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4014(e)), the 
Administrator may, in the discretion of the 
Administrator, further extend the period 
during which the finding under paragraph 
(1) shall be effective for such area for an 
additional 12 months. 
‘‘(ii) LIMIT.— For any eligible area, 
the cumulative number of extensions under 
this subparagraph may not exceed 2. 
‘‘(B) EXCLUSION FOR NEW MORTGAGES.— 
‘‘(i) 
EXCLUSION.—Any 
extension 
under subparagraph (A) of this paragraph 
of a finding under paragraph (1) shall not 
be effective with respect to any excluded 
property after the origination, increase, ex-
tension, or renewal of the loan referred to 
in clause (ii)(II) for the property. 
‘‘(ii) EXCLUDED
PROPERTIES.—For 
purposes of this subparagraph, the term 
‘excluded property’ means any improved 
real estate or mobile home— 
‘‘(I) that is located in an eligible 
area; and
‘‘(II) for which, during the period 
that any extension under subpara-
graph (A) of this paragraph of a find-
ing under paragraph (1) is otherwise 
in effect for the eligible area in which 
such property is located— 
‘‘(aa) a loan that is secured 
by the property is originated; or 
‘‘(bb) any existing loan that 
is secured by the property is in-
creased, extended, or renewed. 
‘‘(6) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to affect the appli-
cability of a designation of any area as an area hav-
ing special flood hazards for purposes of the avail-
ability of flood insurance coverage, criteria for land 
management and use, notification of flood hazards, 
eligibility for mitigation assistance, or any other pur-
pose or provision not specifically referred to in para-
graph (2). 
‘‘(7) REPORTS.—The Administrator shall, in 
each annual report submitted pursuant to section 
1320, include information identifying each finding 
under paragraph (1) by the Administrator during 
the preceding year that an area is an area having
special flood hazards, the basis for each such find-
ing, any extensions pursuant to paragraph (4) of the 
periods of effectiveness of such findings, and the 
reasons for such extensions.’’. 
(2) NO REFUNDS.—Nothing in this subsection 
or the amendments made by this subsection may be 
construed to authorize or require any payment or re-
fund for flood insurance coverage purchased for any 
property that covered any period during which such 
coverage is not required for the property pursuant to 
the applicability of the amendment made by para-
graph (1). 
(b) TERMINATION OF FORCE-PLACED INSURANCE.— 
Section 102(e) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(e)) is amended— 
(1) in paragraph (2), by striking ‘‘insurance.’’ 
and inserting ‘‘insurance, including premiums or 
fees incurred for coverage beginning on the date on 
which flood insurance coverage lapsed or did not 
provide a sufficient coverage amount.’’; 
(2) by redesignating paragraphs (3) and (4) as 
paragraphs (5) and 6), respectively; and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraphs:
‘‘(3) TERMINATION OF FORCE-PLACED INSUR-
ANCE.—Within 30 days of receipt by the lender or 
servicer of a confirmation of a borrower’s existing 
flood insurance coverage, the lender or servicer 
shall— 
‘‘(A) terminate the force-placed insurance; 
and 
‘‘(B) refund to the borrower all force- 
placed insurance premiums paid by the bor-
rower during any period during which the bor-
rower’s flood insurance coverage and the force- 
placed flood insurance coverage were each in ef-
fect, and any related fees charged to the bor-
rower with respect to the force-placed insurance 
during such period. 
‘‘(4) SUFFICIENCY OF DEMONSTRATION.—For 
purposes of confirming a borrower’s existing flood 
insurance coverage, a lender or servicer for a loan 
shall accept from the borrower an insurance policy 
declarations page that includes the existing flood in-
surance policy number and the identity of, and con-
tact information for, the insurance company or 
agent.’’. 
(c) USE OF PRIVATE INSURANCE TO SATISFY MAN-
DATORY PURCHASE REQUIREMENT.—Section 102(b) of
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘lending institutions not to 
make’’ and inserting ‘‘lending institutions— 
‘‘(A) not to make’’; 
(B) in subparagraph (A), as designated by 
subparagraph (A) of this paragraph, by striking 
‘‘less.’’ and inserting ‘‘less; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(B) to accept private flood insurance as 
satisfaction of the flood insurance coverage re-
quirement under subparagraph (A) if the cov-
erage provided by such private flood insurance 
meets the requirements for coverage under such 
subparagraph.’’; 
(2) in paragraph (2), by inserting after ‘‘pro-
vided in paragraph (1).’’ the following new sentence: 
‘‘Each Federal agency lender shall accept private 
flood insurance as satisfaction of the flood insurance 
coverage requirement under the preceding sentence 
if the flood insurance coverage provided by such pri-
vate flood insurance meets the requirements for cov-
erage under such sentence.’’;
(3) in paragraph (3), in the matter following 
subparagraph (B), by adding at the end the fol-
lowing new sentence: ‘‘The Federal National Mort-
gage Association and the Federal Home Loan Mort-
gage Corporation shall accept private flood insurance 
as satisfaction of the flood insurance coverage re-
quirement under the preceding sentence if the flood 
insurance coverage provided by such private flood in-
surance meets the requirements for coverage under 
such sentence.’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.— 
In this subsection, the term ‘private flood insurance’ 
means a contract for flood insurance coverage al-
lowed for sale under the laws of any State.’’. 
SEC. 344. REFORMS OF COVERAGE TERMS. 
(a) MINIMUM DEDUCTIBLES FOR CLAIMS.—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 Adminis-
trator is’’; and 
(2) by adding at the end the following: 
‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.—
‘‘(1) SUBSIDIZED RATE PROPERTIES.—For any 
structure that is covered by flood insurance under 
this title, and for which the chargeable rate for such 
coverage is less than the applicable estimated risk 
premium rate under section 1307(a)(1) for the area 
(or subdivision thereof) in which such structure is 
located, the minimum annual deductible for damage 
to or loss of such structure shall be $2,000. 
‘‘(2) ACTUARIAL RATE PROPERTIES.—For any 
structure that is covered by flood insurance under 
this title, for which the chargeable rate for such cov-
erage is not less than the applicable estimated risk 
premium rate under section 1307(a)(1) for the area 
(or subdivision thereof) in which such structure is 
located, the minimum annual deductible for damage 
to or loss of such structure shall be $1,000.’’. 
(b) CLARIFICATION OF RESIDENTIAL AND COMMER-
CIAL COVERAGE LIMITS.—Section 1306(b) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) 
is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘in the case of any residen-
tial property’’ and inserting ‘‘in the case of any 
residential building designed for the occupancy 
of from one to four families’’; and
(B) by striking ‘‘shall be made available to 
every insured upon renewal and every applicant 
for insurance so as to enable such insured or 
applicant to receive coverage up to a total 
amount (including such limits specified in para-
graph (1)(A)(i)) of $250,000’’ and inserting 
‘‘shall be made available, with respect to any 
single such building, up to an aggregate liability 
(including such limits specified in paragraph 
(1)(A)(i)) of $250,000’’; and 
(2) in paragraph (4)— 
(A) by striking ‘‘in the case of any nonresi-
dential property, including churches,’’ and in-
serting ‘‘in the case of any nonresidential build-
ing, including a church,’’; and 
(B) by striking ‘‘shall be made available to 
every insured upon renewal and every applicant 
for insurance, in respect to any single structure, 
up to a total amount (including such limit spec-
ified in subparagraph (B) or (C) of paragraph 
(1), as applicable) of $500,000 for each struc-
ture and $500,000 for any contents related to 
each structure’’ and inserting ‘‘shall be made 
available with respect to any single such build-
ing, up to an aggregate liability (including such
limits specified in subparagraph (B) or (C) of 
paragraph (1), as applicable) of $500,000, and 
coverage shall be made available up to a total 
of $500,000 aggregate liability for contents 
owned by the building owner and $500,000 ag-
gregate liability for each unit within the build-
ing for contents owned by the tenant’’. 
(c) INDEXING OF MAXIMUM COVERAGE LIMITS.— 
Subsection (b) of section 1306 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5), by striking the period at 
the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (5) as para-
graph (7); and 
(4) by adding at the end the following new 
paragraph: 
‘‘(8) each of the dollar amount limitations 
under paragraphs (2), (3), (4), (5), and (6) shall be 
adjusted effective on the date of the enactment of 
the Flood Insurance Reform Act of 2012, such ad-
justments shall be calculated using the percentage 
change, over the period beginning on September 30, 
1994, and ending on such date of enactment, in
such inflationary index as the Administrator shall, 
by regulation, specify, and the dollar amount of such 
adjustment shall be rounded to the next lower dollar; 
and the Administrator shall cause to be published in 
the Federal Register the adjustments under this 
paragraph to such dollar amount limitations; except 
that in the case of coverage for a property that is 
made available, pursuant to this paragraph, in an 
amount that exceeds the limitation otherwise appli-
cable to such coverage as specified in paragraph (2), 
(3), (4), (5), or (6), the total of such coverage shall 
be made available only at chargeable rates that are 
not less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1).’’. 
(d) OPTIONAL COVERAGE FOR LOSS OF USE OF PER-
SONAL RESIDENCE AND BUSINESS INTERRUPTION.—Sub-
section (b) of section 1306 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(b)), as amended by 
the preceding provisions of this section, is further amend-
ed by inserting after paragraph (4) the following new 
paragraphs: 
‘‘(5) the Administrator may provide that, in the 
case of any residential property, each renewal or new 
contract for flood insurance coverage may provide
not more than $5,000 aggregate liability per dwell-
ing unit for any necessary increases in living ex-
penses incurred by the insured when losses from a 
flood make the residence unfit to live in, except 
that— 
‘‘(A) purchase of such coverage shall be at 
the option of the insured; 
‘‘(B) any such coverage shall be made 
available only at chargeable rates that are not 
less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1); and 
‘‘(C) the Administrator may make such 
coverage available only if the Administrator 
makes a determination and causes notice of 
such determination to be published in the Fed-
eral Register that— 
‘‘(i) a competitive private insurance 
market for such coverage does not exist; 
and 
‘‘(ii) the national flood insurance pro-
gram has the capacity to make such cov-
erage available without borrowing funds 
from the Secretary of the Treasury under 
section 1309 or otherwise;
‘‘(ii) the national flood insurance pro-
gram has the capacity to make such cov-
erage available without borrowing funds 
from the Secretary of the Treasury under 
section 1309 or otherwise;’’. 
(e) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
RESIDENTIAL PROPERTIES.—Section 1306 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4013) is 
amended by adding at the end the following new sub-
section: 
‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
RESIDENTIAL PROPERTIES.— 
‘‘(1) AUTHORITY.—In addition to any other 
terms and conditions under subsection (a), such reg-
ulations shall provide that, in the case of any resi-
dential property, premiums for flood insurance cov-
erage made available under this title for such prop-
erty may be paid in installments. 
‘‘(2) LIMITATIONS.—In implementing the au-
thority under paragraph (1), the Administrator may 
establish increased chargeable premium rates and 
surcharges, and deny coverage and establish such 
other sanctions, as the Administrator considers nec-
essary to ensure that insureds purchase, pay for, 
and maintain coverage for the full term of a contract
for flood insurance coverage or to prevent insureds 
from purchasing coverage only for periods during a 
year when risk of flooding is comparatively higher or 
canceling coverage for periods when such risk is 
comparatively lower.’’. 
(f) EFFECTIVE DATE OF POLICIES COVERING PROP-
ERTIES AFFECTED
BY FLOODS
IN PROGRESS.—Para-
graph (1) of section 1306(c) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(c)) is amended by add-
ing after the period at the end the following: ‘‘With respect 
to any flood that has commenced or is in progress before 
the expiration of such 30-day period, such flood insurance 
coverage for a property shall take effect upon the expira-
tion of such 30-day period and shall cover damage to such 
property occurring after the expiration of such period that 
results from such flood, but only if the property has not 
suffered damage or loss as a result of such flood before 
the expiration of such 30-day period.’’. 
SEC. 345. REFORMS OF PREMIUM RATES. 
(a) INCREASE IN ANNUAL LIMITATION ON PREMIUM 
INCREASES.—Section 1308(e) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4015(e)) is amended by 
striking ‘‘10 percent’’ and inserting ‘‘20 percent’’. 
(b) PHASE-IN OF RATES FOR CERTAIN PROPERTIES 
IN NEWLY MAPPED AREAS.—
(1) IN
GENERAL.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended— 
(A) in subsection (a), in the matter pre-
ceding paragraph (1), by inserting ‘‘or notice’’ 
after ‘‘prescribe by regulation’’; 
(B) in subsection (c), by inserting ‘‘and 
subsection (g)’’ before the first comma; and 
(C) by adding at the end the following new 
subsection: 
‘‘(g) 5-YEAR
PHASE-IN
OF
FLOOD
INSURANCE 
RATES FOR CERTAIN PROPERTIES IN NEWLY MAPPED 
AREAS.— 
‘‘(1) 
5-YEAR
PHASE-IN
PERIOD.—Notwith-
standing subsection (c) or any other provision of law 
relating to chargeable risk premium rates for flood 
insurance coverage under this title, 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 flood insurance maps, becomes designated as such 
an area, during the 5-year period that begins, except 
as provided in paragraph (2), upon the date that 
such maps, as issued, revised, updated, or otherwise 
changed, become effective, the chargeable premium
rate for flood insurance under this title with respect 
to any covered property that is located within such 
area shall be the rate described in paragraph (3). 
‘‘(2) APPLICABILITY TO PREFERRED RISK RATE 
AREAS.—In the case of any area described in para-
graph (1) that consists of or includes an area that, 
as of date of the effectiveness of the flood insurance 
maps for such area referred to in paragraph (1) as 
so issued, revised, updated, or changed, is eligible 
for any reason for preferred risk rate method pre-
miums for flood insurance coverage and was eligible 
for such premiums as of the enactment of the Flood 
Insurance Reform Act of 2012, the 5-year period re-
ferred to in paragraph (1) for such area eligible for 
preferred risk rate method premiums shall begin 
upon the expiration of the period during which such 
area is eligible for such preferred risk rate method 
premiums. 
‘‘(3) PHASE-IN OF FULL ACTUARIAL RATES.— 
With respect to any area described in paragraph (1), 
the chargeable risk premium rate for flood insurance 
under this title for a covered property that is located 
in such area shall be— 
‘‘(A) for the first year of the 5-year period 
referred to in paragraph (1), the greater of—
‘‘(i) 20 percent of the chargeable risk 
premium rate otherwise applicable under 
this title to the property; and 
‘‘(ii) in the case of any property that, 
as of the beginning of such first year, is el-
igible for preferred risk rate method pre-
miums for flood insurance coverage, such 
preferred risk rate method premium for 
the property; 
‘‘(B) for the second year of such 5-year pe-
riod, 40 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(C) for the third year of such 5-year pe-
riod, 60 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(D) for the fourth year of such 5-year pe-
riod, 80 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; and 
‘‘(E) for the fifth year of such 5-year pe-
riod, 100 percent of the chargeable risk pre-
mium rate otherwise applicable under this title 
to the property.
‘‘(4) COVERED PROPERTIES.—For purposes of 
the subsection, the term ‘covered property’ means 
any residential property occupied by its owner or a 
bona fide tenant as a primary residence.’’. 
(2) REGULATION
OR
NOTICE.—The Adminis-
trator of the Federal Emergency Management Agen-
cy shall issue an interim final rule or notice to im-
plement this subsection and the amendments made 
by this subsection as soon as practicable after the 
date of the enactment of this Act. 
(c) PHASE-IN OF ACTUARIAL RATES FOR CERTAIN 
PROPERTIES.— 
(1) IN GENERAL.—Section 1308(c) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(c)) is amended— 
(A) by redesignating paragraph (2) as 
paragraph (7); and 
(B) by inserting after paragraph (1) the 
following new paragraphs: 
‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi-
dential property. 
‘‘(3) SECOND HOMES AND VACATION HOMES.— 
Any residential property that is not the primary res-
idence of any individual.
‘‘(4) HOMES SOLD TO NEW OWNERS.—Any sin-
gle family property that— 
‘‘(A) has been constructed or substantially 
improved and for which such construction or 
improvement was started, as determined by the 
Administrator, before December 31, 1974, or 
before the effective date of the initial rate map 
published by the Administrator under para-
graph (2) of section 1360(a) for the area in 
which such property is located, whichever is 
later; and 
‘‘(B) is purchased after the effective date 
of 
this 
paragraph, 
pursuant 
to 
section 
345(c)(3)(A) of the Flood Insurance Reform 
Act of 2012. 
‘‘(5) HOMES
DAMAGED
OR
IMPROVED.—Any 
property that, on or after the date of the enactment 
of the Flood Insurance Reform Act of 2012, has ex-
perienced or sustained— 
‘‘(A) substantial flood damage exceeding 
50 percent of the fair market value of such 
property; or 
‘‘(B) substantial improvement exceeding 
30 percent of the fair market value of such 
property.
‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se-
vere repetitive loss property (as such term is defined 
in section 1366(j)).’’. 
(2) TECHNICAL AMENDMENTS.—Section 1308 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended— 
(A) in subsection (c)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘the limitations provided 
under paragraphs (1) and (2)’’ and insert-
ing ‘‘subsection (e)’’; and 
(ii) in paragraph (1), by striking ‘‘, 
except’’ and all that follows through ‘‘sub-
section (e)’’; and 
(B) in subsection (e), by striking ‘‘para-
graph (2) or (3)’’ and inserting ‘‘paragraph 
(7)’’. 
(3) EFFECTIVE DATE AND TRANSITION.— 
(A) EFFECTIVE DATE.—The amendments 
made by paragraphs (1) and (2) shall apply be-
ginning upon the expiration of the 12-month 
period that begins on the date of the enactment 
of this Act, except as provided in subparagraph 
(B) of this paragraph.
(B) TRANSITION
FOR
PROPERTIES
COV-
ERED BY FLOOD INSURANCE UPON EFFECTIVE 
DATE.— 
(i) INCREASE OF RATES OVER TIME.— 
In the case of any property described in 
paragraph (2), (3), (4), (5), or (6) of sec-
tion 1308(c) of the National Flood Insur-
ance Act of 1968, as amended by para-
graph (1) of this subsection, that, as of the 
effective date under subparagraph (A) of 
this paragraph, is covered under a policy 
for flood insurance made available under 
the national flood insurance program for 
which the chargeable premium rates are 
less than the applicable estimated risk pre-
mium rate under section 1307(a)(1) of 
such Act for the area in which the prop-
erty is located, the Administrator of the 
Federal Emergency Management Agency 
shall increase the chargeable premium 
rates for such property over time to such 
applicable estimated risk premium rate 
under section 1307(a)(1). 
(ii) AMOUNT OF ANNUAL INCREASE.— 
Such increase shall be made by increasing
the chargeable premium rates for the prop-
erty (after application of any increase in 
the premium rates otherwise applicable to 
such property), once during the 12-month 
period that begins upon the effective date 
under subparagraph (A) of this paragraph 
and once every 12 months thereafter until 
such increase is accomplished, by 20 per-
cent (or such lesser amount as may be nec-
essary so that the chargeable rate does not 
exceed such applicable estimated risk pre-
mium rate or to comply with clause (iii)). 
(iii) PROPERTIES SUBJECT TO PHASE- 
IN AND ANNUAL INCREASES.—In the case 
of any pre-FIRM property (as such term is 
defined in section 578(b) of the National 
Flood Insurance Reform Act of 1974), the 
aggregate increase, during any 12-month 
period, in the chargeable premium rate for 
the property that is attributable to this 
subparagraph or to an increase described 
in section 1308(e) of the National Flood 
Insurance Act of 1968 may not exceed 20 
percent.
(iv) FULL
ACTUARIAL
RATES.—The 
provisions of paragraphs (2), (3), (4), (5), 
and (6) of such section 1308(c) shall apply 
to such a property upon the accomplish-
ment of the increase under this subpara-
graph and thereafter. 
(d) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES TO LAPSED POLICIES.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4015), as 
amended by the preceding provisions of this subtitle, is 
further amended— 
(1) in subsection (e), by inserting ‘‘or sub-
section (h)’’ after ‘‘subsection (c)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES
TO
LAPSED
POLICIES.—Notwithstanding any 
other provision of law relating to chargeable risk premium 
rates for flood insurance coverage under this title, the Ad-
ministrator shall not provide flood insurance coverage 
under this title for any property for which a policy for 
such coverage for the property has previously lapsed in 
coverage as a result of the deliberate choice of the holder 
of such policy, at a rate less than the applicable estimated
risk premium rates for the area (or subdivision thereof) 
in which such property is located.’’. 
(e) RECOGNITION OF STATE AND LOCAL FUNDING 
FOR CONSTRUCTION, RECONSTRUCTION, AND IMPROVE-
MENT OF FLOOD PROTECTION SYSTEMS IN DETERMINA-
TION OF RATES.— 
(1) IN
GENERAL.—Section 1307 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4014) is amended— 
(A) in subsection (e)— 
(i) in the first sentence, by striking 
‘‘construction of a flood protection system’’ 
and inserting ‘‘construction, reconstruc-
tion, or improvement of a flood protection 
system (without respect to the level of Fed-
eral investment or participation)’’; and 
(ii) in the second sentence— 
(I) by striking ‘‘construction of a 
flood protection system’’ and inserting 
‘‘construction, reconstruction, or im-
provement of a flood protection sys-
tem’’; and 
(II) by inserting ‘‘based on the 
present value of the completed sys-
tem’’ after ‘‘has been expended’’; and
(B) in subsection (f)— 
(i) in the first sentence in the matter 
preceding paragraph (1), by inserting 
‘‘(without respect to the level of Federal 
investment or participation)’’ before the 
period at the end; 
(ii) in the third sentence in the matter 
preceding paragraph (1), by inserting ‘‘, 
whether coastal or riverine,’’ after ‘‘special 
flood hazard’’; and 
(iii) in paragraph (1), by striking ‘‘a 
Federal agency in consultation with the 
local project sponsor’’ and inserting ‘‘the 
entity or entities that own, operate, main-
tain, or repair such system’’. 
(2) REGULATIONS.—The Administrator of the 
Federal Emergency Management Agency shall pro-
mulgate regulations to implement this subsection 
and the amendments made by this subsection as 
soon as practicable, but not more than 18 months 
after the date of the enactment of this Act. Para-
graph (3) may not be construed to annul, alter, af-
fect, authorize any waiver of, or establish any excep-
tion to, the requirement under the preceding sen-
tence.
SEC. 346. 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 of the Federal 
Emergency Management Agency (in this section 
referred to as the ‘‘Administrator’’), or the des-
ignee thereof; 
(B) the Director of the United States Geo-
logical Survey of the Department of the Inte-
rior, or the designee thereof; 
(C) the Under Secretary of Commerce for 
Oceans and Atmosphere, or the designee there-
of; 
(D) the commanding officer of the United 
States Army Corps of Engineers, or the des-
ignee thereof; 
(E) the chief of the Natural Resources 
Conservation Service of the Department of Ag-
riculture, or the designee thereof; 
(F) the Director of the United States Fish 
and Wildlife Service of the Department of the 
Interior, or the designee thereof;
(G) the Assistant Administrator for Fish-
eries of the National Oceanic and Atmospheric 
Administration of the Department of Com-
merce, or the designee thereof; and 
(H) 14 additional members to be appointed 
by the Administrator of the Federal Emergency 
Management Agency, who shall be— 
(i) an expert in data management; 
(ii) an expert in real estate; 
(iii) an expert in insurance; 
(iv) a member of a recognized regional 
flood and storm water management organi-
zation; 
(v) a representative of a State emer-
gency management agency or association 
or organization for such agencies; 
(vi) a member of a recognized profes-
sional surveying association or organiza-
tion; 
(vii) a member of a recognized profes-
sional mapping association or organization; 
(viii) a member of a recognized pro-
fessional engineering association or organi-
zation;
(ix) a member of a recognized profes-
sional association or organization rep-
resenting flood hazard determination firms; 
(x) a representative of State national 
flood insurance coordination offices; 
(xi) representatives of two local gov-
ernments, at least one of whom is a local 
levee flood manager or executive, des-
ignated by the Federal Emergency Man-
agement Agency as Cooperating Technical 
Partners; and 
(xii) representatives of two State gov-
ernments designated by the Federal Emer-
gency Management Agency as Cooperating 
Technical States. 
(2) QUALIFICATIONS.—Members of the Council 
shall be appointed based on their demonstrated 
knowledge and competence regarding surveying, car-
tography, remote sensing, geographic information 
systems, or the technical aspects of preparing and 
using flood insurance rate maps. In appointing 
members under paragraph (1)(H), the Administrator 
shall ensure that the membership of the Council has 
a balance of Federal, State, local, and private mem-
bers, and includes an adequate number of represent-
atives from the States with coastline on the Gulf of 
Mexico and other States containing areas identified 
by the Administrator of the Federal Emergency 
Management Agency as at high-risk for flooding or 
special flood hazard areas. 
(c) DUTIES.— 
(1) NEW MAPPING STANDARDS.—Not later than 
the expiration of the 12-month period beginning 
upon the date of the enactment of this Act, the 
Council shall develop and submit to the Adminis-
trator and the Congress proposed new mapping 
standards for 100-year flood insurance rate maps 
used under the national flood insurance program 
under the National Flood Insurance Act of 1968. In 
developing such proposed standards the Council 
shall— 
(A) ensure that the flood insurance rate 
maps reflect true risk, including graduated risk 
that better reflects the financial risk to each 
property; such reflection of risk should be at 
the smallest geographic level possible (but not 
necessarily property-by-property) to ensure that 
communities are mapped in a manner that 
takes into consideration different risk levels 
within the community;
(B) ensure the most efficient generation, 
display, and distribution of flood risk data, 
models, and maps where practicable through 
dynamic digital environments using spatial 
database technology and the Internet; 
(C) ensure that flood insurance rate maps 
reflect current hydrologic and hydraulic data, 
current land use, and topography, incorporating 
the most current and accurate ground and 
bathymetric elevation data; 
(D) determine the best ways to include in 
such flood insurance rate maps levees, decerti-
fied levees, and areas located below dams, in-
cluding determining a methodology for ensuring 
that decertified levees and other protections are 
included in flood insurance rate maps and their 
corresponding flood zones reflect the level of 
protection conferred; 
(E) consider how to incorporate restored 
wetlands and other natural buffers into flood 
insurance rate maps, which may include wet-
lands, groundwater recharge areas, erosion 
zones, meander belts, endangered species habi-
tat, barrier islands and shoreline buffer fea-
tures, riparian forests, and other features;
(F) consider whether to use vertical posi-
tioning (as defined by the Administrator) for 
flood insurance rate maps; 
(G) ensure that flood insurance rate maps 
differentiate between a property that is located 
in a flood zone and a structure located on such 
property that is not at the same risk level for 
flooding as such property due to the elevation 
of the structure; 
(H) ensure that flood insurance rate maps 
take into consideration the best scientific data 
and potential future conditions (including pro-
jections for sea level rise); and 
(I) consider how to incorporate the new 
standards proposed pursuant to this paragraph 
in existing mapping efforts. 
(2) ONGOING DUTIES.—The Council shall, on 
an ongoing basis, review the mapping protocols de-
veloped pursuant to paragraph (1), and make rec-
ommendations to the Administrator when the Coun-
cil determines that mapping protocols should be al-
tered. 
(3) MEETINGS.—In carrying out its duties 
under this section, the Council shall consult with 
stakeholders through at least 4 public meetings an-
nually, and shall seek input of all stakeholder inter-
ests including State and local representatives, envi-
ronmental and conservation organizations, insurance 
industry representatives, advocacy groups, planning 
organizations, and mapping organizations. 
(d) PROHIBITION ON COMPENSATION.—Members of 
the Council shall receive no additional compensation by 
reason of their service on the Council. 
(e) CHAIRPERSON.—The Administrator shall serve as 
the Chairperson of the Council. 
(f) STAFF.— 
(1) FEMA.—Upon the request of the Council, 
the Administrator may detail, on a nonreimbursable 
basis, personnel of the Federal Emergency Manage-
ment Agency to assist the Council in carrying out its 
duties. 
(2) OTHER FEDERAL AGENCIES.—Upon request 
of the Council, any other Federal agency that is a 
member of the Council may detail, on a non-reim-
bursable basis, personnel to assist the Council in 
carrying out its duties. 
(g) POWERS.—In carrying out this section, the Coun-
cil may hold hearings, receive evidence and assistance, pro-
vide information, and conduct research, as the Council 
considers appropriate.
(h) TERMINATION.—The Council shall terminate 
upon the expiration of the 5-year period beginning on the 
date of the enactment of this Act. 
(i) MORATORIUM ON FLOOD MAP CHANGES.— 
(1) MORATORIUM.—Except as provided in para-
graph (2) and notwithstanding any other provision 
of this subtitle, the National Flood Insurance Act of 
1968, or the Flood Disaster Protection Act of 1973, 
during the period beginning upon the date of the en-
actment of this Act and ending upon the submission 
by the Council to the Administrator and the Con-
gress of the proposed new mapping standards re-
quired under subsection (c)(1), the Administrator 
may not make effective any new or updated rate 
maps for flood insurance coverage under the na-
tional flood insurance program that were not in ef-
fect for such program as of such date of enactment, 
or otherwise revise, update, or change the flood in-
surance rate maps in effect for such program as of 
such date. 
(2) LETTERS OF MAP CHANGE.—During the pe-
riod described in paragraph (1), the Administrator 
may revise, update, and change the flood insurance 
rate maps in effect for the national flood insurance 
program only pursuant to a letter of map change
(including a letter of map amendment, letter of map 
revision, and letter of map revision based on fill). 
SEC. 347. FEMA INCORPORATION OF NEW MAPPING PROTO-
COLS. 
(a) NEW RATE MAPPING STANDARDS.—Not later 
than the expiration of the 6-month period beginning upon 
submission by the Technical Mapping Advisory Council 
under section 346 of the proposed new mapping standards 
for flood insurance rate maps used under the national 
flood insurance program developed by the Council pursu-
ant to section 346(c), the Administrator of the Federal 
Emergency Management Agency (in this section referred 
to as the ‘‘Administrator’’) shall establish new standards 
for such rate maps based on such proposed new standards 
and the recommendations of the Council. 
(b) REQUIREMENTS.—The new standards for flood 
insurance rate maps established by the Administrator pur-
suant to subsection (a) shall— 
(1) delineate and include in any such rate 
maps— 
(A) all areas located within the 100-year 
flood plain; and 
(B) areas subject to graduated and other 
risk levels, to the maximum extent possible; 
(2) ensure that any such rate maps—
(A) include levees, including decertified lev-
ees, and the level of protection they confer; 
(B) reflect current land use and topog-
raphy and incorporate the most current and ac-
curate ground level data; 
(C) take into consideration the impacts 
and use of fill and the flood risks associated 
with altered hydrology; 
(D) differentiate between a property that 
is located in a flood zone and a structure lo-
cated on such property that is not at the same 
risk level for flooding as such property due to 
the elevation of the structure; 
(E) identify and incorporate natural fea-
tures and their associated flood protection bene-
fits into mapping and rates; and 
(F) identify, analyze, and incorporate the 
impact of significant changes to building and 
development throughout any river or costal 
water system, including all tributaries, which 
may impact flooding in areas downstream; and 
(3) provide that such rate maps are developed 
on a watershed basis. 
(c) REPORT.—If, in establishing new standards for 
flood insurance rate maps pursuant to subsection (a) of
this section, the Administrator does not implement all of 
the recommendations of the Council made under the pro-
posed new mapping standards developed by the Council 
pursuant to section 346(c), upon establishment of the new 
standards the Administrator shall submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate specifying which such rec-
ommendations were not adopted and explaining the rea-
sons such recommendations were not adopted. 
(d) IMPLEMENTATION.—The Administrator shall, not 
later than the expiration of the 6-month period beginning 
upon establishment of the new standards for flood insur-
ance rate maps pursuant to subsection (a) of this section, 
commence use of the new standards and updating of flood 
insurance rate maps in accordance with the new stand-
ards. Not later than the expiration of the 10-year period 
beginning upon the establishment of such new standards, 
the Administrator shall complete updating of all flood in-
surance rate maps in accordance with the new standards, 
subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts. 
(e) TEMPORARY SUSPENSION OF MANDATORY PUR-
CHASE REQUIREMENT FOR CERTAIN PROPERTIES.—
paragraph (A) and to ensure that the review 
process provides for accurate determinations. 
(4) TERMINATION OF AUTHORITY.—This sub-
section shall cease to apply to a property on the date 
on which the Administrator updates the flood insur-
ance rate map that applies to such property in ac-
cordance with the requirements of subsection (d). 
SEC. 348. TREATMENT OF LEVEES. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101) is amended by adding at the end 
the following new subsection: 
‘‘(k) TREATMENT OF LEVEES.—The Administrator 
may not issue flood insurance maps, or make effective up-
dated flood insurance maps, that omit or disregard the 
actual protection afforded by an existing levee, floodwall, 
pump or other flood protection feature, regardless of the 
accreditation status of such feature.’’. 
SEC. 349. PRIVATIZATION INITIATIVES. 
(a) FEMA AND GAO REPORTS.—Not later than the 
expiration of the 18-month period beginning on the date 
of the enactment of this Act, the Administrator of the 
Federal Emergency Management Agency and the Comp-
troller General of the United States shall each conduct a 
separate study to assess a broad range of options, meth-
ods, and strategies for privatizing the national flood insur-
ance program and shall each submit a report to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate with recommendations for the best 
manner to accomplish such privatization. 
(b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 
(1) AUTHORITY.—The Administrator of the 
Federal Emergency Management Agency may carry 
out such private risk-management initiatives under 
the national flood insurance program as the Admin-
istrator considers appropriate to determine the ca-
pacity of private insurers, reinsurers, and financial 
markets to assist communities, on a voluntary basis 
only, in managing the full range of financial risks 
associated with flooding. 
(2) ASSESSMENT.—Not later than the expira-
tion of the 12-month period beginning on the date 
of the enactment of this Act, the Administrator shall 
assess the capacity of the private reinsurance, cap-
ital, and financial markets by seeking proposals to 
assume a portion of the program’s insurance risk 
and submit to the Congress a report describing the 
response to such request for proposals and the re-
sults of such assessment.
(3) PROTOCOL FOR RELEASE OF DATA.—The 
Administrator shall develop a protocol to provide for 
the release of data sufficient to conduct the assess-
ment required under paragraph (2). 
(c) REINSURANCE.—The National Flood Insurance 
Act of 1968 is amended— 
(1) 
in 
section 
1331(a)(2) 
(42 
U.S.C. 
4051(a)(2)), by inserting ‘‘, including as reinsurance 
of insurance coverage provided by the flood insur-
ance 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 inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) The Administrator is authorized to secure rein-
surance coverage of coverage provided by the flood insur-
ance program from private market insurance, reinsurance, 
and capital market sources at rates and on terms deter-
mined by the Administrator to be reasonable and appro-
priate in an amount sufficient to maintain the ability of 
the program to pay claims and that minimizes the likeli-
hood that the program will utilize the borrowing authority 
provided under section 1309.’’; 
(4) in section 1346(a) (12 U.S.C. 4082(a))— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘, or for purposes of securing rein-
surance of insurance coverage provided by the 
program,’’ before ‘‘of any or all of’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘estimating’’ and in-
serting ‘‘Estimating’’; and 
(ii) by striking the semicolon at the 
end and inserting a period; 
(C) in paragraph (2)— 
(i) by striking ‘‘receiving’’ and insert-
ing ‘‘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) in paragraph (4)— 
(i) by striking ‘‘otherwise’’ and insert-
ing ‘‘Otherwise’’; and
(ii) by redesignating such paragraph 
as paragraph (5); and 
(F) 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 inserting before the semicolon at the 
end the following: ‘‘, is subject to the reporting re-
quirements of the Securities Exchange Act of 1934, 
pursuant to section 13(a) or 15(d) of such Act (15 
U.S.C. 78m(a), 78o(d)), or is authorized by the Ad-
ministrator to assume reinsurance on risks insured 
by the flood insurance program’’. 
(d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 
(1) ASSESSMENT.—Not later than September 
30 of each year, the Administrator of the Federal 
Emergency Management Agency shall conduct an 
assessment of the claims-paying ability of the na-
tional flood insurance program, including the pro-
gram’s utilization of private sector reinsurance and 
reinsurance equivalents, with and without reliance 
on borrowing authority under section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4016). In conducting the assessment, the Adminis-
trator shall take into consideration regional con-
centrations of coverage written by the program, peak 
flood zones, and relevant mitigation measures. 
(2) REPORT.—The Administrator shall submit 
a report to the Congress of the results of each such 
assessment, and make such report available to the 
public, not later than 30 days after completion of 
the assessment. 
SEC. 350. FEMA ANNUAL REPORT ON INSURANCE PRO-
GRAM. 
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 RE-
PORT 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:
losses have been made under flood insurance cov-
erage under this title if the Administrator, after con-
sultation with the State and community, determines 
that neither the State nor community in which such 
a structure is located has the capacity to manage 
such grants.’’. 
(2) by striking subsection (b); 
(3) in subsection (c)— 
(A) by striking ‘‘flood risk’’ and inserting 
‘‘multi-hazard’’; 
(B) 
by 
striking 
‘‘provides 
protection 
against’’ and inserting ‘‘examines reduction of’’; 
and 
(C) by redesignating such subsection as 
subsection (b); 
(4) by striking subsection (d); 
(5) in subsection (e)— 
(A) in paragraph (1), by striking the para-
graph designation and all that follows through 
the end of the first sentence and inserting the 
following: 
‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP-
PROVED
MITIGATION
PLAN.—Amounts 
provided 
under this section may be used only for mitigation 
activities that are consistent with mitigation plans
that are approved by the Administrator and identi-
fied under subparagraph (4).’’; 
(B) by striking paragraphs (2), (3), and 
(4) and inserting the following new paragraphs: 
‘‘(2) REQUIREMENTS
OF
TECHNICAL
FEASI-
BILITY, COST EFFECTIVENESS, AND INTEREST OF 
NFIF.—The Administrator may approve only mitiga-
tion activities that the Administrator determines are 
technically feasible and cost-effective and in the in-
terest of, and represent savings to, the National 
Flood Insurance Fund. In making such determina-
tions, the Administrator shall take into consideration 
recognized benefits that are difficult to quantify. 
‘‘(3) PRIORITY FOR MITIGATION ASSISTANCE.— 
In providing grants under this section for mitigation 
activities, the Administrator shall give priority for 
funding to activities that the Administrator deter-
mines will result in the greatest savings to the Na-
tional Flood Insurance Fund, including activities 
for— 
‘‘(A) severe repetitive loss structures; 
‘‘(B) repetitive loss structures; and 
‘‘(C) other subsets of structures as the Ad-
ministrator may establish.’’; 
(C) in paragraph (5)—
(i) by striking all of the matter that 
precedes subparagraph (A) and inserting 
the following: 
‘‘(4) ELIGIBLE ACTIVITIES.—Eligible activities 
may include—’’; 
(ii) by striking subparagraphs (E) and 
(H); 
(iii) by redesignating subparagraphs 
(D), (F), and (G) as subparagraphs (E), 
(G), and (H); 
(iv) by inserting after subparagraph 
(C) the following new subparagraph: 
‘‘(D) 
elevation, 
relocation, 
and 
floodproofing of utilities (including equipment 
that serve structures);’’; 
(v) by inserting after subparagraph 
(E), as so redesignated by clause (iii) of 
this subparagraph, the following new sub-
paragraph: 
‘‘(F) the development or update of State, 
local, or Indian tribal mitigation plans which 
meet the planning criteria established by the 
Administrator, except that the amount from 
grants under this section that may be used 
under this subparagraph may not exceed
$50,000 for any mitigation plan of a State or 
$25,000 for any mitigation plan of a local gov-
ernment or Indian tribe;’’; 
(vi) in subparagraph (H); as so redes-
ignated by clause (iii) of this subpara-
graph, by striking ‘‘and’’ at the end; and 
(vii) by adding at the end the fol-
lowing new subparagraphs: 
‘‘(I) other mitigation activities not de-
scribed in subparagraphs (A) through (G) or 
the regulations issued under subparagraph (H), 
that are described in the mitigation plan of a 
State, community, or Indian tribe; and 
‘‘(J) personnel costs for State staff that 
provide technical assistance to communities to 
identify eligible activities, to develop grant ap-
plications, and to implement grants awarded 
under this section, not to exceed $50,000 per 
State in any Federal fiscal year, so long as the 
State applied for and was awarded at least 
$1,000,000 in grants available under this sec-
tion in the prior Federal fiscal year; the re-
quirements of subsections (d)(1) and (d)(2) 
shall not apply to the activity under this sub-
paragraph.’’;
(D) by adding at the end the following new 
paragraph: 
‘‘(6) ELIGIBILITY
OF
DEMOLITION
AND
RE-
BUILDING
OF
PROPERTIES.—The Administrator 
shall consider as an eligible activity the demolition 
and rebuilding of properties to at least base flood 
elevation or greater, if required by the Administrator 
or if required by any State regulation or local ordi-
nance, and in accordance with criteria established by 
the Administrator.’’; and 
(E) by redesignating such subsection as 
subsection (c); 
(6) by striking subsections (f), (g), and (h) and 
inserting the following new subsection: 
‘‘(d) MATCHING REQUIREMENT.—The Administrator 
may provide grants for eligible mitigation activities as fol-
lows: 
‘‘(1) SEVERE REPETITIVE LOSS STRUCTURES.— 
In the case of mitigation activities to severe repet-
itive loss structures, in an amount up to 100 percent 
of all eligible costs. 
‘‘(2) REPETITIVE LOSS STRUCTURES.—In the 
case of mitigation activities to repetitive loss struc-
tures, in an amount up to 90 percent of all eligible 
costs.
‘‘(3) OTHER MITIGATION ACTIVITIES.— In the 
case of all other mitigation activities, in an amount 
up to 75 percent of all eligible costs.’’; 
(7) in subsection (i)— 
(A) in paragraph (2)— 
(i) by striking ‘‘certified under sub-
section (g)’’ and inserting ‘‘required under 
subsection (d)’’; and 
(ii) by striking ‘‘3 times the amount’’ 
and inserting ‘‘the amount’’; and 
(B) by redesignating such subsection as 
subsection (e); 
(8) in subsection (j)— 
(A) by striking ‘‘Riegle Community Devel-
opment and Regulatory Improvement Act of 
1994’’ and inserting ‘‘Flood Insurance Reform 
Act of 2012’’; 
(B) by redesignating such subsection as 
subsection (f); and 
(9) by striking subsections (k) and (m) and in-
serting the following new subsections: 
‘‘(g) FAILURE TO MAKE GRANT AWARD WITHIN 5 
YEARS.—For any application for a grant under this sec-
tion for which the Administrator fails to make a grant 
award within 5 years of the date of application, the grant
application shall be considered to be denied and any fund-
ing amounts allocated for such grant applications shall re-
main in the National Flood Mitigation Fund under section 
1367 of this title and shall be made available for grants 
under this section. 
‘‘(h) LIMITATION ON FUNDING FOR MITIGATION AC-
TIVITIES FOR SEVERE REPETITIVE LOSS STRUCTURES.— 
The amount used pursuant to section 1310(a)(8) in any 
fiscal year may not exceed $40,000,000 and shall remain 
available until expended. 
‘‘(i) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) 
COMMUNITY.—The 
term 
‘community’ 
means— 
‘‘(A) a political subdivision that— 
‘‘(i) has zoning and building code ju-
risdiction over a particular area having 
special flood hazards, and 
‘‘(ii) is participating in the national 
flood insurance program; or 
‘‘(B) a political subdivision of a State, or 
other authority, that is designated by political 
subdivisions, all of which meet the requirements 
of subparagraph (A), to administer grants for
mitigation activities for such political subdivi-
sions. 
‘‘(2) REPETITIVE LOSS STRUCTURE.—The term 
‘repetitive loss structure’ has the meaning given 
such term in section 1370. 
‘‘(3) SEVERE REPETITIVE LOSS STRUCTURE.— 
The term ‘severe repetitive loss structure’ means a 
structure 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 title, 
with the amount of each such claim ex-
ceeding $15,000, and with the cumulative 
amount of such claims payments exceeding 
$60,000; or 
‘‘(ii) for which at least 2 separate 
claims payments have been made under 
such coverage, with the cumulative amount 
of such claims exceeding the value of the 
insured structure.’’. 
(b) ELIMINATION OF GRANTS PROGRAM FOR REPET-
ITIVE INSURANCE CLAIMS PROPERTIES.—Chapter I of
the National Flood Insurance Act of 1968 is amended by 
striking section 1323 (42 U.S.C. 4030). 
(c) ELIMINATION OF PILOT PROGRAM FOR MITIGA-
TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Chap-
ter III of the National Flood Insurance Act of 1968 is 
amended by striking section 1361A (42 U.S.C. 4102a). 
(d) NATIONAL FLOOD INSURANCE FUND.—Section 
1310(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017(a)) is amended— 
(1) in paragraph (7), by inserting ‘‘and’’ after 
the semicolon; and 
(2) by striking paragraphs (8) and (9). 
(e) NATIONAL FLOOD MITIGATION FUND.—Section 
1367 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104d) is amended— 
(1) in subsection (b)— 
(A) by striking paragraph (1) and insert-
ing the following new paragraph: 
‘‘(1) in each fiscal year, from the National 
Flood Insurance Fund in amounts not exceeding 
$90,000,000 to remain available until expended, of 
which— 
‘‘(A) not more than $40,000,000 shall be 
available pursuant to subsection (a) of this sec-
tion only for assistance described in section 
1366(a)(1); 
‘‘(B) not more than $40,000,000 shall be 
available pursuant to subsection (a) of this sec-
tion only for assistance described in section 
1366(a)(2); and 
‘‘(C) not more than $10,000,000 shall be 
available pursuant to subsection (a) of this sec-
tion only for assistance described in section 
1366(a)(3).’’. 
(B) in paragraph (3), by striking ‘‘section 
1366(i)’’ and inserting ‘‘section 1366(e)’’; 
(2) in subsection (c), by striking ‘‘sections 1366 
and 1323’’ and inserting ‘‘section 1366’’; 
(3) by redesignating subsections (d) and (e) as 
subsections (f) and (g), respectively; and 
(4) by inserting after subsection (c) the fol-
lowing new subsections: 
‘‘(d) PROHIBITION ON OFFSETTING COLLECTIONS.— 
Notwithstanding any other provision of this title, amounts 
made available pursuant to this section shall not be sub-
ject to offsetting collections through premium rates for 
flood insurance coverage under this title. 
‘‘(e) CONTINUED AVAILABILITY
AND REALLOCA-
TION.—Any amounts made available pursuant to subpara-
graph (A), (B), or (C) of subsection (b)(1) that are not 
used in any fiscal year shall continue to be available for 
the purposes specified in such subparagraph of subsection 
(b)(1) pursuant to which such amounts were made avail-
able, unless the Administrator determines that realloca-
tion of such unused amounts to meet demonstrated need 
for other mitigation activities under section 1366 is in the 
best interest of the National Flood Insurance Fund.’’. 
(f) INCREASED COST OF COMPLIANCE COVERAGE.— 
Section 1304(b)(4) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011(b)(4)) is amended— 
(1) by striking subparagraph (B); and 
(2) by redesignating subparagraphs (C), (D), 
and (E) as subparagraphs (B), (C), and (D), respec-
tively. 
SEC. 352. NOTIFICATION TO HOMEOWNERS REGARDING 
MANDATORY PURCHASE REQUIREMENT AP-
PLICABILITY AND RATE PHASE-INS. 
Section 201 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4105) is amended by adding at the end 
the following new subsection: 
‘‘(f) ANNUAL NOTIFICATION.—The Administrator, in 
consultation with affected communities, shall establish and 
carry out a plan to notify residents of areas having special 
flood hazards, on an annual basis—
‘‘(1) that they reside in such an area; 
‘‘(2) of the geographical boundaries of such 
area; 
‘‘(3) of whether section 1308(g) of the National 
Flood Insurance Act of 1968 applies to properties 
within such area; 
‘‘(4) of the provisions of section 102 requiring 
purchase of flood insurance coverage for properties 
located in such an area, including the date on which 
such provisions apply with respect to such area, tak-
ing into consideration section 102(i); and 
‘‘(5) of a general estimate of what similar 
homeowners in similar areas typically pay for flood 
insurance coverage, taking into consideration section 
1308(g) of the National Flood Insurance Act of 
1968.’’. 
SEC. 353. NOTIFICATION TO MEMBERS OF CONGRESS OF 
FLOOD MAP REVISIONS AND UPDATES. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this subtitle, is further amended by adding at 
the end the following new subsection: 
‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF 
MAP MODERNIZATION.—Upon any revision or update of 
any floodplain area or flood-risk zone pursuant to sub-
section (f), any decision pursuant to subsection (f)(1) that 
such revision or update is necessary, any issuance of pre-
liminary maps for such revision or updating, or any other 
significant action relating to any such revision or update, 
the Administrator shall notify the Senators for each State 
affected, and each Member of the House of Representa-
tives for each congressional district affected, by such revi-
sion or update in writing of the action taken.’’. 
SEC. 354. NOTIFICATION AND APPEAL OF MAP CHANGES; 
NOTIFICATION TO COMMUNITIES OF ESTAB-
LISHMENT OF FLOOD ELEVATIONS. 
Section 1363 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104) is amended by striking the section 
designation and all that follows through the end of sub-
section (a) and inserting the following: 
‘‘SEC. 1363. (a) In establishing projected flood ele-
vations for land use purposes with respect to any commu-
nity pursuant to section 1361, the Administrator shall 
first propose such determinations— 
‘‘(1) by providing the chief executive officer of 
each community affected by the proposed elevations, 
by certified mail, with a return receipt requested, 
notice of the elevations, including a copy of the maps 
for the elevations for such community and a state-
ment explaining the process under this section to ap-
peal for changes in such elevations; 
‘‘(2) by causing notice of such elevations to be 
published in the Federal Register, which notice shall 
include information sufficient to identify the ele-
vation determinations and the communities affected, 
information explaining how to obtain copies of the 
elevations, and a statement explaining the process 
under this section to appeal for changes in the ele-
vations; 
‘‘(3) by publishing in a prominent local news-
paper the elevations, a description of the appeals 
process for flood determinations, and the mailing ad-
dress and telephone number of a person the owner 
may contact for more information or to initiate an 
appeal; 
‘‘(4) by providing written notification, by first 
class mail, to each owner of real property affected by 
the proposed elevations of— 
‘‘(A) the status of such property, both 
prior to and after the effective date of the pro-
posed determination, with respect to flood zone 
and flood insurance requirements under this 
Act and the Flood Disaster Protection Act of 
1973;
‘‘(B) the process under this section to ap-
peal a flood elevation determination; and 
‘‘(C) the mailing address and phone num-
ber of a person the owner may contact for more 
information or to initiate an appeal; and’’. 
SEC. 355. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1308 (42 U.S.C. 4015) the 
following new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Administrator shall, upon 
entering into a contract for flood insurance coverage under 
this title for any property— 
‘‘(1) provide to the insured sufficient copies of 
the notice developed pursuant to subsection (b); and 
‘‘(2) require the insured to provide a copy of 
the notice, or otherwise provide notification of the 
information under subsection (b) in the manner that 
the manager or landlord deems most appropriate, to 
each such tenant and to each new tenant upon com-
mencement of such a tenancy.
‘‘(b) NOTICE.—Notice to a tenant of a property in 
accordance with this subsection is written notice that 
clearly informs a tenant— 
‘‘(1) whether the property is located in an area 
having special flood hazards; 
‘‘(2) that flood insurance coverage is available 
under the national flood insurance program under 
this title for contents of the unit or structure leased 
by the tenant; 
‘‘(3) of the maximum amount of such coverage 
for contents available under this title at that time; 
and 
‘‘(4) of where to obtain information regarding 
how to obtain such coverage, including a telephone 
number, mailing address, and Internet site of the 
Administrator where such information is available.’’. 
SEC. 356. NOTIFICATION TO POLICY HOLDERS REGARDING 
DIRECT MANAGEMENT OF POLICY BY FEMA. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD-
ING DIRECT MANAGEMENT OF POLICY BY 
FEMA. 
‘‘(a) NOTIFICATION.—Not later than 60 days before 
the date on which a transferred flood insurance policy ex-
pires, and annually thereafter until such time as the Fed-
eral Emergency Management Agency is no longer directly 
administering such policy, the Administrator shall notify 
the holder of such policy that— 
‘‘(1) the Federal Emergency Management 
Agency is directly administering the policy; 
‘‘(2) such holder may purchase flood insurance 
that is directly administered by an insurance com-
pany; and 
‘‘(3) purchasing flood insurance offered under 
the National Flood Insurance Program that is di-
rectly administered by an insurance company will 
not alter the coverage provided or the premiums 
charged to such holder that otherwise would be pro-
vided or charged if the policy was directly adminis-
tered by the Federal Emergency Management Agen-
cy. 
‘‘(b) DEFINITION.—In this section, the term ‘trans-
ferred flood insurance policy’ means a flood insurance pol-
icy that—
‘‘(1) was directly administered by an insurance 
company at the time the policy was originally pur-
chased by the policy holder; and 
‘‘(2) at the time of renewal of the policy, direct 
administration of the policy was or will be trans-
ferred to the Federal Emergency Management Agen-
cy.’’. 
SEC. 357. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 
amended by adding at the end the following new sentence: 
‘‘Each such good faith estimate shall include the following 
conspicuous statements and information: (1) that flood in-
surance coverage for residential real estate is generally 
available under the national flood insurance program 
whether or not the real estate is located in an area having 
special flood hazards and that, to obtain such coverage, 
a home owner or purchaser should contact the national 
flood insurance program; (2) a telephone number and a 
location on the Internet by which a home owner or pur-
chaser can contact the national flood insurance program; 
and (3) that the escrowing of flood insurance payments 
is required for many loans under section 102(d) of the
Flood Disaster Protection Act of 1973, and may be a con-
venient and available option with respect to other loans.’’. 
SEC. 358. REIMBURSEMENT FOR COSTS INCURRED BY 
HOMEOWNERS AND COMMUNITIES OBTAIN-
ING LETTERS OF MAP AMENDMENT OR REVI-
SION. 
(a) IN GENERAL.—Section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101), as amend-
ed by the preceding provisions of this subtitle, is further 
amended by adding at the end the following new sub-
section: 
‘‘(m) REIMBURSEMENT.— 
‘‘(1) 
REQUIREMENT
UPON
BONA
FIDE 
ERROR.—If an owner of any property located in an 
area described in section 102(i)(3) of the Flood Dis-
aster Protection Act of 1973, or a community in 
which such a property is located, obtains a letter of 
map amendment, or a letter of map revision, due to 
a bona fide error on the part of the Administrator 
of the Federal Emergency Management Agency, the 
Administrator shall reimburse such owner, or such 
entity or jurisdiction acting on such owner’s behalf, 
or such community, as applicable, for any reasonable 
costs incurred in obtaining such letter.
‘‘(2) REASONABLE COSTS.—The Administrator 
shall, by regulation or notice, determine a reasonable 
amount of costs to be reimbursed under paragraph 
(1), except that such costs shall not include legal or 
attorneys fees. In determining the reasonableness of 
costs, the Administrator shall only consider the ac-
tual costs to the owner or community, as applicable, 
of utilizing the services of an engineer, surveyor, or 
similar services.’’. 
(b) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Administrator of 
the Federal Emergency Management Agency shall issue 
the regulations or notice required under section 
1360(m)(2) of the National Flood Insurance Act of 1968, 
as added by the amendment made by subsection (a) of 
this section. 
SEC. 359. ENHANCED COMMUNICATION WITH CERTAIN 
COMMUNITIES 
DURING 
MAP 
UPDATING 
PROCESS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this subtitle, is further amended by adding at 
the end the following new subsection: 
‘‘(n) ENHANCED COMMUNICATION WITH CERTAIN 
COMMUNITIES DURING MAP UPDATING PROCESS.—In
updating flood insurance maps under this section, the Ad-
ministrator shall communicate with communities located 
in areas where flood insurance rate maps have not been 
updated in 20 years or more and the appropriate State 
emergency agencies to resolve outstanding issues, provide 
technical assistance, and disseminate all necessary infor-
mation to reduce the prevalence of outdated maps in flood- 
prone areas.’’. 
SEC. 360. NOTIFICATION TO RESIDENTS NEWLY INCLUDED 
IN FLOOD HAZARD AREAS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this subtitle, is further amended by adding at 
the end the following new subsection: 
‘‘(o) NOTIFICATION
TO
RESIDENTS
NEWLY
IN-
CLUDED IN FLOOD HAZARD AREA.—In revising or updat-
ing any areas having special flood hazards, the Adminis-
trator shall provide to each owner of a property to be 
newly included in such a special flood hazard area, at the 
time of issuance of such proposed revised or updated flood 
insurance maps, a copy of the proposed revised or updated 
flood insurance maps together with information regarding 
the appeals process under section 1363 (42 U.S.C. 
4104).’’.
SEC. 361. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
‘‘In the case of any property that is otherwise in com-
pliance with the coverage and building requirements of the 
national flood insurance program, the presence of an en-
closed swimming pool located at ground level or in the 
space below the lowest floor of a building after November 
30 and before June 1 of any year shall have no effect on 
the terms of coverage or the ability to receive coverage 
for such building under the national flood insurance pro-
gram established pursuant to this title, if the pool is en-
closed with non-supporting breakaway walls.’’. 
SEC. 362. INFORMATION REGARDING MULTIPLE PERILS 
CLAIMS. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(d) INFORMATION REGARDING MULTIPLE PERILS 
CLAIMS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
if an insured having flood insurance coverage under
a policy issued under the program under this title by 
the Administrator or a company, insurer, or entity 
offering flood insurance coverage under such pro-
gram (in this subsection referred to as a ‘partici-
pating company’) has wind or other homeowners 
coverage from any company, insurer, or other entity 
covering property covered by such flood insurance, in 
the case of damage to such property that may have 
been caused by flood or by wind, the Administrator 
and the participating company, upon the request of 
the insured, shall provide to the insured, within 30 
days of such request— 
‘‘(A) a copy of the estimate of structure 
damage; 
‘‘(B) proofs of loss; 
‘‘(C) any expert or engineering reports or 
documents commissioned by or relied upon by 
the Administrator or participating company in 
determining whether the damage was caused by 
flood or any other peril; and 
‘‘(D) the Administrator’s or the partici-
pating company’s final determination on the 
claim. 
‘‘(2) TIMING.—Paragraph (1) shall apply only 
with respect to a request described in such para-
graph made by an insured after the Administrator 
or the participating company, or both, as applicable, 
have issued a final decision on the flood claim in-
volved and resolution of all appeals with respect to 
such claim.’’. 
SEC. 363. FEMA AUTHORITY TO REJECT TRANSFER OF 
POLICIES. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(e) FEMA AUTHORITY TO REJECT TRANSFER OF 
POLICIES.—Notwithstanding any other provision of this 
Act, the Administrator may, at the discretion of the Ad-
ministrator, refuse to accept the transfer of the adminis-
tration of policies for coverage under the flood insurance 
program under this title that are written and administered 
by any insurance company or other insurer, or any insur-
ance agent or broker.’’. 
SEC. 364. APPEALS. 
(a) TELEVISION AND RADIO ANNOUNCEMENT.—Sec-
tion 1363 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104), as amended by the preceding provisions 
of this subtitle, is further amended— 
(1) in subsection (a), by adding at the end the 
following new paragraph:
100 
‘‘(5) by notifying a local television and radio 
station,’’; and 
(2) in the first sentence of subsection (b), by in-
serting before the period at the end the following: 
‘‘and shall notify a local television and radio station 
at least once during the same 10-day period’’. 
(b) EXTENSION OF APPEALS PERIOD.—Subsection 
(b) of section 1363 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104(b)) is amended— 
(1) by striking ‘‘(b) The Director’’ and insert-
ing ‘‘(b)(1) The Administrator’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The Administrator shall grant an extension of 
the 90-day period for appeals referred to in paragraph (1) 
for 90 additional days if an affected community certifies 
to the Administrator, after the expiration of at least 60 
days of such period, that the community— 
‘‘(A) believes there are property owners or les-
sees in the community who are unaware of such pe-
riod for appeals; and 
‘‘(B) will utilize the extension under this para-
graph to notify property owners or lessees who are 
affected by the proposed flood elevation determina-
tions of the period for appeals and the opportunity
101 
to appeal the determinations proposed by the Ad-
ministrator.’’. 
(c) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) shall apply with respect to any flood 
elevation determination for any area in a community that 
has not, as of the date of the enactment of this Act, been 
issued a Letter of Final Determination for such deter-
mination under the flood insurance map modernization 
process. 
SEC. 365. RESERVE FUND. 
(a) ESTABLISHMENT.—Chapter I of the National 
Flood Insurance Act of 1968 is amended by inserting after 
section 1310 (42 U.S.C. 4017) the following new section: 
‘‘SEC. 1310A. RESERVE FUND. 
‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car-
rying out the flood insurance program authorized by this 
title, the Administrator 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 ac-
counts or funds available to the Administrator; and 
‘‘(2) be available for meeting the expected fu-
ture obligations of the flood insurance program.
102 
‘‘(b) RESERVE RATIO.—Subject to the phase-in re-
quirements 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 poli-
cies in force in the prior fiscal year; or 
‘‘(2) such higher percentage as the Adminis-
trator determines to be appropriate, taking into con-
sideration any circumstance that may raise a signifi-
cant 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 subsection (b); and 
‘‘(B) to achieve such reserve ratio, if the 
actual balance of such reserve is below the 
amount required under subsection (b). 
‘‘(2) CONSIDERATIONS.—In exercising the au-
thority under paragraph (1), the Administrator shall 
consider—
103 
‘‘(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 Adminis-
trator determines appropriate. 
‘‘(3) LIMITATIONS.—In exercising the authority 
under paragraph (1), the Administrator shall be 
subject to all other provisions of this Act, including 
any provisions relating to chargeable premium rates 
and annual increases of such rates. 
‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re-
quirements under this subsection are as follows: 
‘‘(1) IN
GENERAL.—Beginning in fiscal year 
2012 and not ending until the fiscal year in which 
the ratio required under subsection (b) is achieved, 
in each such fiscal year the Administrator 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
104 
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 re-
quired under subsection (b). 
‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 
fiscal year, if the Administrator determines that the re-
serve ratio required under subsection (b) cannot be 
achieved, the Administrator shall submit a report to the 
Congress that— 
‘‘(1) describes and details the specific concerns 
of the Administrator regarding such consequences; 
‘‘(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) AVAILABILITY OF AMOUNTS.—The reserve ratio 
requirements under subsection (b) and the phase-in re-
quirements under subsection (d) shall be subject to the 
availability of amounts in the National Flood Insurance
105 
Fund for transfer under section 1310(a)(10), as provided 
in section 1310(f).’’. 
(b) FUNDING.—Subsection (a) of section 1310 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4017(a)), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new paragraph: 
‘‘(10) for transfers to the National Flood Insur-
ance Reserve Fund under section 1310A, in accord-
ance with such section.’’. 
SEC. 366. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT-
REACH ACTIVITIES AND COMMUNITY BUILD-
ING CODE ADMINISTRATION GRANTS. 
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 
(1) in paragraph (24), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (25), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(26) supplementing existing State or local 
funding for administration of building code enforce-
ment by local building code enforcement depart-
ments, including for increasing staffing, providing
106 
staff training, increasing staff competence and pro-
fessional qualifications, and supporting individual 
certification or departmental accreditation, and for 
capital expenditures specifically dedicated to the ad-
ministration of the building code enforcement de-
partment, except that, to be eligible to use amounts 
as provided in this paragraph— 
‘‘(A) a building code enforcement depart-
ment shall provide 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 en-
forcement 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 para-
graph; 
‘‘(ii) in the case of a building code en-
forcement department serving an area with 
a population of between 20,001 and 
50,000, equal to not less than 25 percent 
of the total amount of any funds made 
available under this title that are used 
under this paragraph; and
107 
‘‘(iii) in the case of a building code 
enforcement department serving an area 
with a population of less than 20,000, 
equal to not less than 12.5 percent of the 
total amount of any funds made available 
under this title that are used under this 
paragraph, 
except that the Secretary may waive the match-
ing fund requirements under this subparagraph, 
in whole or in part, based upon the level of eco-
nomic distress of the jurisdiction in which is lo-
cated the local building code enforcement de-
partment that is using amounts for purposes 
under this paragraph, and shall waive such 
matching fund requirements in whole for any 
recipient jurisdiction that has dedicated all 
building code permitting fees to the conduct of 
local building code enforcement; and 
‘‘(B) any building code enforcement de-
partment using funds made available under this 
title for purposes under this paragraph shall 
empanel a code administration and enforcement 
team consisting of at least 1 full-time building 
code enforcement officer, a city planner, and a 
health planner or similar officer; and
108 
‘‘(27) provision of assistance to local govern-
mental agencies responsible for floodplain manage-
ment activities (including such agencies of Indians 
tribes, as such term is defined in section 4 of the 
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4103)) in com-
munities that participate in the national flood insur-
ance program under the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.), only for car-
rying out outreach activities to encourage and facili-
tate the purchase of flood insurance protection 
under such Act by owners and renters of properties 
in such communities and to promote educational ac-
tivities that increase awareness of flood risk reduc-
tion; except that— 
‘‘(A) amounts used as provided under this 
paragraph shall be used only for activities de-
signed to— 
‘‘(i) identify owners and renters of 
properties in communities that participate 
in the national flood insurance program, 
including owners of residential and com-
mercial properties; 
‘‘(ii) notify such owners and renters 
when their properties become included in,
109 
or when they are excluded from, an area 
having special flood hazards and the effect 
of such inclusion or exclusion on the appli-
cability 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; 
‘‘(iii) educate such owners and renters 
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 man-
datory purchase requirement; 
‘‘(iv) educate such owners and renters 
regarding the benefits and costs of main-
taining or acquiring flood insurance, in-
cluding, where applicable, lower-cost pre-
ferred risk policies under this title for such 
properties and the contents of such prop-
erties; 
‘‘(v) encourage such owners and rent-
ers to maintain or acquire such coverage; 
‘‘(vi) notify such owners of where to 
obtain information regarding how to obtain 
such coverage, including a telephone num-
110 
ber, mailing address, and Internet site of 
the Administrator of the Federal Emer-
gency Management Agency (in this para-
graph referred to as the ‘Administrator’) 
where such information is available; and 
‘‘(vii) educate local real estate agents 
in communities participating in the na-
tional flood insurance program regarding 
the program and the availability of cov-
erage under the program for owners and 
renters of properties in such communities, 
and establish coordination and liaisons 
with such real estate agents to facilitate 
purchase of coverage under the National 
Flood Insurance Act of 1968 and increase 
awareness of flood risk reduction; 
‘‘(B) in any fiscal year, a local govern-
mental agency may not use an amount under 
this paragraph that exceeds 3 times the amount 
that the agency certifies, as the Secretary, in 
consultation with the Administrator, shall re-
quire, that the agency will contribute from non- 
Federal funds to be used with such amounts 
used under this paragraph only for carrying out 
activities described in subparagraph (A); and
111 
for purposes of this subparagraph, the term 
‘non-Federal funds’ includes State or local gov-
ernment agency amounts, in-kind contributions, 
any salary paid to staff to carry out the eligible 
activities of the local governmental agency in-
volved, the value of the time and services con-
tributed by volunteers to carry out such services 
(at a rate determined by the Secretary), and 
the value of any donated material or building 
and the value of any lease on a building; 
‘‘(C) a local governmental agency that uses 
amounts as provided under this paragraph may 
coordinate or contract with other agencies and 
entities having particular capacities, specialties, 
or experience with respect to certain popu-
lations or constituencies, including elderly or 
disabled families or persons, to carry out activi-
ties described in subparagraph (A) with respect 
to such populations or constituencies; and 
‘‘(D) each local government agency that 
uses amounts as provided under this paragraph 
shall submit a report to the Secretary and the 
Administrator, not later than 12 months after 
such amounts are first received, which shall in-
clude such information as the Secretary and the
112 
Administrator jointly consider appropriate to 
describe the activities conducted using such 
amounts and the effect of such activities on the 
retention or acquisition of flood insurance cov-
erage.’’. 
SEC. 367. TECHNICAL CORRECTIONS. 
(a) FLOOD DISASTER PROTECTION ACT OF 1973.— 
The Flood Disaster Protection Act of 1973 (42 U.S.C. 
4002 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears, except in section 102(f)(3) (42 U.S.C. 
4012a(f)(3)), and inserting ‘‘Administrator’’; and 
(2) in section 201(b) (42 U.S.C. 4105(b)), by 
striking ‘‘Director’s’’ and inserting ‘‘Administra-
tor’s’’. 
(b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 
The National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears and inserting ‘‘Administrator’’; and 
(2) in section 1363 (42 U.S.C. 4104), by strik-
ing ‘‘Director’s’’ each place such term appears and 
inserting ‘‘Administrator’s’’. 
(c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 
Section 15(e) of the Federal Flood Insurance Act of 1956
113 
(42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 
each place such term appears and inserting ‘‘Adminis-
trator’’. 
SEC. 368. REQUIRING COMPETITION FOR NATIONAL FLOOD 
INSURANCE PROGRAM POLICIES. 
(a) REPORT.—Not later than the expiration of the 
90-day period beginning upon the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency, in consultation with insurance com-
panies, insurance agents and other organizations with 
which the Administrator has contracted, shall submit to 
the Congress a report describing procedures and policies 
that the Administrator shall implement to limit the per-
centage of policies for flood insurance coverage under the 
national flood insurance program that are directly man-
aged by the Agency to not more than 10 percent of the 
aggregate number of flood insurance policies in force 
under such program. 
(b) IMPLEMENTATION.—Upon submission of the re-
port under subsection (a) to the Congress, the Adminis-
trator shall implement the policies and procedures de-
scribed in the report. The Administrator shall, not later 
than the expiration of the 12-month period beginning 
upon submission of such report, reduce the number of 
policies for flood insurance coverage that are directly man-
114 
aged by the Agency, or by the Agency’s direct servicing 
contractor that is not an insurer, to not more than 10 
percent of the aggregate number of flood insurance poli-
cies in force as of the expiration of such 12-month period. 
(c) CONTINUATION OF CURRENT AGENT RELATION-
SHIPS.—In carrying out subsection (b), the Administrator 
shall ensure that— 
(1) agents selling or servicing policies described 
in such subsection are not prevented from con-
tinuing to sell or service such policies; and 
(2) insurance companies are not prevented from 
waiving any limitation such companies could other-
wise enforce to limit any such activity. 
SEC. 369. STUDIES OF VOLUNTARY COMMUNITY-BASED 
FLOOD INSURANCE OPTIONS. 
(a) STUDIES.—The Administrator of the Federal 
Emergency Management Agency and the Comptroller 
General of the United States shall each conduct a separate 
study to assess options, methods, and strategies for offer-
ing voluntary community-based flood insurance policy op-
tions and incorporating such options into the national 
flood insurance program. Such studies shall take into con-
sideration and analyze how the policy options would affect 
communities having varying economic bases, geographic
115 
locations, flood hazard characteristics or classifications, 
and flood management approaches. 
(b) REPORTS.—Not later than the expiration of the 
18-month period beginning on the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency and the Comptroller General of the 
United States shall each 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 on the results and conclusions of the study 
such agency conducted under subsection (a), and each 
such report shall include recommendations for the best 
manner to incorporate voluntary community-based flood 
insurance options into the national flood insurance pro-
gram and for a strategy to implement such options that 
would encourage communities to undertake flood mitiga-
tion activities. 
SEC. 370. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management 
Agency shall conduct a study and submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and
116 
Urban Affairs of the Senate regarding the impact, effec-
tiveness, 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 devel-
oped under such section, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local 
communities to administer and enforce such a build-
ing code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(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 insur-
117 
ance coverage under such Act for structures meeting 
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage; 
(7) the impact of such a building code require-
ment on rural communities with different building 
code challenges than more urban environments; and 
(8) the impact of such a building code require-
ment on Indian reservations. 
SEC. 371. STUDY ON GRADUATED RISK. 
(a) STUDY.—The National Academy of Sciences shall 
conduct a study exploring methods for understanding 
graduated risk behind levees and the associated land de-
velopment, insurance, and risk communication dimensions, 
which shall— 
(1) research, review, and recommend current 
best practices for estimating direct annualized flood 
losses behind levees for residential and commercial 
structures; 
(2) rank such practices based on their best 
value, balancing cost, scientific integrity, and the in-
herent uncertainties associated with all aspects of 
the loss estimate, including geotechnical engineering, 
flood frequency estimates, economic value, and direct 
damages;
118 
(3) research, review, and identify current best 
floodplain management and land use practices be-
hind levees that effectively balance social, economic, 
and environmental considerations as part of an over-
all flood risk management strategy; 
(4) identify examples where such practices have 
proven effective and recommend methods and proc-
esses by which they could be applied more broadly 
across the United States, given the variety of dif-
ferent flood risks, State and local legal frameworks, 
and evolving judicial opinions; 
(5) research, review, and identify a variety of 
flood insurance pricing options for flood hazards be-
hind levees which are actuarially sound and based on 
the flood risk data developed using the top three 
best value approaches identified pursuant to para-
graph (1); 
(6) evaluate and recommend methods to reduce 
insurance costs through creative arrangements be-
tween insureds and insurers while keeping a clear 
accounting of how much financial risk is being borne 
by various parties such that the entire risk is ac-
counted for, including establishment of explicit limits 
on disaster aid or other assistance in the event of a 
flood; and
119 
(7) taking into consideration the recommenda-
tions pursuant to paragraphs (1) through (3), rec-
ommend approaches to communicating the associ-
ated risks to community officials, homeowners, and 
other residents. 
(b) REPORT.—Not later than the expiration of the 
12-month period beginning on the date of the enactment 
of this Act, the National Academy of Sciences shall submit 
a report to the Committees on Financial Services and 
Science, Space, and Technology of the House of Rep-
resentatives and the Committees on Banking, Housing, 
and Urban Affairs and Commerce, Science and Transpor-
tation of the Senate on the study under subsection (a) in-
cluding the information and recommendations required 
under such subsection. 
SEC. 372. REPORT ON FLOOD-IN-PROGRESS DETERMINA-
TION. 
The Administrator of the Federal Emergency Man-
agement Agency shall review the processes and procedures 
for determining that a flood event has commenced or is 
in progress for purposes of flood insurance coverage made 
available under the national flood insurance program 
under the National Flood Insurance Act of 1968 and for 
providing public notification that such an event has com-
menced or is in progress. In such review, the Adminis-
120 
trator shall take into consideration the effects and implica-
tions that weather conditions, such as rainfall, snowfall, 
projected snowmelt, existing water levels, and other condi-
tions have on the determination that a flood event has 
commenced or is in progress. Not later than the expiration 
of the 6-month period beginning upon the date of the en-
actment of this Act, the Administrator shall submit a re-
port to the Congress setting forth the results and conclu-
sions of the review undertaken pursuant to this section 
and any actions undertaken or proposed actions to be 
taken to provide for a more precise and technical deter-
mination that a flooding event has commenced or is in 
progress. 
SEC. 373. STUDY ON REPAYING FLOOD INSURANCE DEBT. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management 
Agency shall submit a report to the Congress setting forth 
a plan 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)).
121 
SEC. 374. NO CAUSE OF ACTION. 
No cause of action shall exist and no claim may be 
brought against the United States for violation of any no-
tification requirement imposed upon the United States by 
this subtitle or any amendment made by this subtitle. 
SEC. 375. AUTHORITY FOR THE CORPS OF ENGINEERS TO 
PROVIDE SPECIALIZED OR TECHNICAL SERV-
ICES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, upon the request of a State or local govern-
ment, the Secretary of the Army may evaluate a levee sys-
tem that was designed or constructed by the Secretary for 
the purposes of the National Flood Insurance Program es-
tablished under chapter 1 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4011 et seq.). 
(b) REQUIREMENTS.—A levee system evaluation 
under subsection (a) shall— 
(1) comply with applicable regulations related 
to areas protected by a levee system; 
(2) be carried out in accordance with such pro-
cedures as the Secretary, in consultation with the 
Administrator of the Federal Emergency Manage-
ment Agency, may establish; and 
(3) be carried out only if the State or local gov-
ernment agrees to reimburse the Secretary for all
122 
cost associated with the performance of the activi-
ties. 
Subtitle E—Repeal of the Office of 
Financial Research 
SEC. 381. REPEAL OF THE OFFICE OF FINANCIAL RE-
SEARCH. 
(a) IN GENERAL.—Subtitle B of title I of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
is hereby repealed. 
(b) CONFORMING AMENDMENTS
TO
THE DODD- 
FRANK ACT.—The Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended— 
(1) in section 102(a), by striking paragraph 
(5); 
(2) in section 111— 
(A) in subsection (b)(2)— 
(i) by striking subparagraph (A); and 
(ii) by redesignating subparagraphs 
(B), (C), (D), and (E) as subparagraphs 
(A), (B), (C), and (D), respectively; 
(B) in subsection (c)(1), by striking ‘‘sub-
paragraphs (C), (D), and (E)’’ and inserting 
‘‘subparagraphs (B), (C), and (D)’’; 
(3) in section 112— 
(A) in subsection (a)(2)—
123 
(i) in subparagraph (A), by striking 
‘‘direct the Office of Financial Research 
to’’; 
(ii) by striking subparagraph (B); and 
(iii) by redesignating subparagraphs 
(C), (D), (E), (F), (G), (H), (I), (J), (K), 
(L), (M), and (N) as subparagraphs (B), 
(C), (D), (E), (F), (G), (H), (I), (J), (K), 
(L), and (M), respectively; and 
(B) in subsection (d)— 
(i) in paragraph (1), by striking ‘‘the 
Office of Financial Research, member 
agencies, and’’ and inserting ‘‘member 
agencies and’’; 
(ii) in paragraph (2), by striking ‘‘the 
Office of Financial Research, any member 
agency, and’’ and inserting ‘‘any member 
agency and’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘, acting through 
the Office of Financial Research,’’ 
each place it appears; and 
(II) in subparagraph (B), by 
striking ‘‘the Office of Financial Re-
search or’’; and
124 
(iv) in paragraph (5)(A), by striking 
‘‘, the Office of Financial Research,’’; 
(4) in section 116, by striking ‘‘, acting through 
the Office of Financial Research,’’ each place it ap-
pears; and 
(5) by striking section 118. 
(c) CONFORMING AMENDMENT TO THE PAPERWORK 
REDUCTION ACT.—Effective as of the date specified in 
section 1100H of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, section 1100D(a) of such Act 
is amended to read as follows: 
‘‘(a) DESIGNATION AS AN INDEPENDENT AGENCY.— 
Section 3502(5) of subchapter I of chapter 35 of title 44, 
United States Code (commonly known as the Paperwork 
Reduction Act) is amended by inserting ‘the Bureau of 
Consumer Financial Protection,’ after ‘the Securities and 
Exchange Commission,’.’’. 
(d) TECHNICAL AMENDMENTS.—The table of con-
tents for the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act is amended— 
(1) by striking the item relating to section 118; 
and 
(2) by striking the items relating to subtitle B 
of title I.
125 
TITLE IV—COMMITTEE ON THE 
JUDICIARY 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Help Efficient, Acces-
sible, Low-cost, Timely Healthcare (HEALTH) Act of 
2011’’. 
SEC. 402. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS. 
The time for the commencement of a health care law-
suit shall be 3 years after the date of manifestation of 
injury or 1 year after the claimant discovers, or through 
the use of reasonable diligence should have discovered, the 
injury, whichever occurs first. In no event shall the time 
for commencement of a health care lawsuit exceed 3 years 
after the date of manifestation of injury unless tolled for 
any of the following— 
(1) upon proof of fraud; 
(2) intentional concealment; or 
(3) the presence of a foreign body, which has no 
therapeutic or diagnostic purpose or effect, in the 
person of the injured person. 
Actions by a minor shall be commenced within 3 years 
from the date of the alleged manifestation of injury except 
that actions by a minor under the full age of 6 years shall 
be commenced within 3 years of manifestation of injury 
or prior to the minor’s 8th birthday, whichever provides
126 
a longer period. Such time limitation shall be tolled for 
minors for any period during which a parent or guardian 
and a health care provider or health care organization 
have committed fraud or collusion in the failure to bring 
an action on behalf of the injured minor. 
SEC. 403. COMPENSATING PATIENT INJURY. 
(a) UNLIMITED AMOUNT OF DAMAGES FOR ACTUAL 
ECONOMIC LOSSES IN HEALTH CARE LAWSUITS.—In any 
health care lawsuit, nothing in this title shall limit a claim-
ant’s recovery of the full amount of the available economic 
damages, notwithstanding the limitation in subsection (b). 
(b) ADDITIONAL NONECONOMIC DAMAGES.—In any 
health care lawsuit, the amount of noneconomic damages, 
if available, may be as much as $250,000, regardless of 
the number of parties against whom the action is brought 
or the number of separate claims or actions brought with 
respect to the same injury. 
(c) NO DISCOUNT OF AWARD FOR NONECONOMIC 
DAMAGES.—For purposes of applying the limitation in 
subsection (b), future noneconomic damages shall not be 
discounted to present value. The jury shall not be in-
formed about the maximum award for noneconomic dam-
ages. An award for noneconomic damages in excess of 
$250,000 shall be reduced either before the entry of judg-
ment, or by amendment of the judgment after entry of
127 
judgment, and such reduction shall be made before ac-
counting for any other reduction in damages required by 
law. If separate awards are rendered for past and future 
noneconomic damages and the combined awards exceed 
$250,000, the future noneconomic damages shall be re-
duced first. 
(d) FAIR SHARE RULE.—In any health care lawsuit, 
each party shall be liable for that party’s several share 
of any damages only and not for the share of any other 
person. Each party shall be liable only for the amount of 
damages allocated to such party in direct proportion to 
such party’s percentage of responsibility. Whenever a 
judgment of liability is rendered as to any party, a sepa-
rate judgment shall be rendered against each such party 
for the amount allocated to such party. For purposes of 
this section, the trier of fact shall determine the propor-
tion of responsibility of each party for the claimant’s 
harm. 
SEC. 404. MAXIMIZING PATIENT RECOVERY. 
(a) COURT SUPERVISION OF SHARE OF DAMAGES 
ACTUALLY PAID TO CLAIMANTS.—In any health care law-
suit, the court shall supervise the arrangements for pay-
ment of damages to protect against conflicts of interest 
that may have the effect of reducing the amount of dam-
ages awarded that are actually paid to claimants. In par-
128 
ticular, in any health care lawsuit in which the attorney 
for a party claims a financial stake in the outcome by vir-
tue of a contingent fee, the court shall have the power 
to restrict the payment of a claimant’s damage recovery 
to such attorney, and to redirect such damages to the 
claimant based upon the interests of justice and principles 
of equity. In no event shall the total of all contingent fees 
for representing all claimants in a health care lawsuit ex-
ceed the following limits: 
(1) Forty percent of the first $50,000 recovered 
by the claimant(s). 
(2) Thirty-three and one-third percent of the 
next $50,000 recovered by the claimant(s). 
(3) Twenty-five percent of the next $500,000 
recovered by the claimant(s). 
(4) Fifteen percent of any amount by which the 
recovery by the claimant(s) is in excess of $600,000. 
(b) APPLICABILITY.—The limitations in this section 
shall apply whether the recovery is by judgment, settle-
ment, mediation, arbitration, or any other form of alter-
native dispute resolution. In a health care lawsuit involv-
ing a minor or incompetent person, a court retains the 
authority to authorize or approve a fee that is less than 
the maximum permitted under this section. The require-
129 
ment for court supervision in the first two sentences of 
subsection (a) applies only in civil actions. 
SEC. 405. PUNITIVE DAMAGES. 
(a) IN GENERAL.—Punitive damages may, if other-
wise permitted by applicable State or Federal law, be 
awarded against any person in a health care lawsuit only 
if it is proven by clear and convincing evidence that such 
person acted with malicious intent to injure the claimant, 
or that such person deliberately failed to avoid unneces-
sary injury that such person knew the claimant was sub-
stantially certain to suffer. In any health care lawsuit 
where no judgment for compensatory damages is rendered 
against such person, no punitive damages may be awarded 
with respect to the claim in such lawsuit. No demand for 
punitive damages shall be included in a health care lawsuit 
as initially filed. A court may allow a claimant to file an 
amended pleading for punitive damages only upon a mo-
tion by the claimant and after a finding by the court, upon 
review of supporting and opposing affidavits or after a 
hearing, after weighing the evidence, that the claimant has 
established by a substantial probability that the claimant 
will prevail on the claim for punitive damages. At the re-
quest of any party in a health care lawsuit, the trier of 
fact shall consider in a separate proceeding—
130 
(1) whether punitive damages are to be award-
ed and the amount of such award; and 
(2) the amount of punitive damages following a 
determination of punitive liability. 
If a separate proceeding is requested, evidence relevant 
only to the claim for punitive damages, as determined by 
applicable State law, shall be inadmissible in any pro-
ceeding to determine whether compensatory damages are 
to be awarded. 
(b) DETERMINING AMOUNT
OF PUNITIVE DAM-
AGES.— 
(1) FACTORS
CONSIDERED.—In determining 
the amount of punitive damages, if awarded, in a 
health care lawsuit, the trier of fact shall consider 
only the following— 
(A) the severity of the harm caused by the 
conduct of such party; 
(B) the duration of the conduct or any 
concealment of it by such party; 
(C) the profitability of the conduct to such 
party; 
(D) the number of products sold or med-
ical procedures rendered for compensation, as 
the case may be, by such party, of the kind
131 
causing the harm complained of by the claim-
ant; 
(E) any criminal penalties imposed on such 
party, as a result of the conduct complained of 
by the claimant; and 
(F) the amount of any civil fines assessed 
against such party as a result of the conduct 
complained of by the claimant. 
(2) MAXIMUM AWARD.—The amount of punitive 
damages, if awarded, in a health care lawsuit may 
be as much as $250,000 or as much as two times 
the amount of economic damages awarded, which-
ever is greater. The jury shall not be informed of 
this limitation. 
(c) NO PUNITIVE DAMAGES FOR PRODUCTS THAT 
COMPLY WITH FDA STANDARDS.— 
(1) IN GENERAL.— 
(A) No punitive damages may be awarded 
against the manufacturer or distributor of a 
medical product, or a supplier of any compo-
nent or raw material of such medical product, 
based on a claim that such product caused the 
claimant’s harm where— 
(i)(I) such medical product was sub-
ject to premarket approval, clearance, or li-
133 
tration to demonstrate affirmatively that a 
manufacturer, distributor, or supplier referred 
to in such subparagraph meets any of the con-
ditions described in such subparagraph. 
(2) LIABILITY OF HEALTH CARE PROVIDERS.— 
A health care provider who prescribes, or who dis-
penses pursuant to a prescription, a medical product 
approved, licensed, or cleared by the Food and Drug 
Administration shall not be named as a party to a 
product liability lawsuit involving such product and 
shall not be liable to a claimant in a class action 
lawsuit against the manufacturer, distributor, or 
seller of such product. Nothing in this paragraph 
prevents a court from consolidating cases involving 
health care providers and cases involving products li-
ability claims against the manufacturer, distributor, 
or product seller of such medical product. 
(3) PACKAGING.—In a health care lawsuit for 
harm which is alleged to relate to the adequacy of 
the packaging or labeling of a drug which is required 
to have tamper-resistant packaging under regula-
tions of the Secretary of Health and Human Serv-
ices (including labeling regulations related to such 
packaging), the manufacturer or product seller of 
the drug shall not be held liable for punitive dam-
134 
ages unless such packaging or labeling is found by 
the trier of fact by clear and convincing evidence to 
be substantially out of compliance with such regula-
tions. 
(4) EXCEPTION.—Paragraph (1) shall not 
apply in any health care lawsuit in which— 
(A) a person, before or after premarket ap-
proval, clearance, or licensure of such medical 
product, knowingly misrepresented to or with-
held from the Food and Drug Administration 
information that is required to be submitted 
under the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 301 et seq.) or section 351 of 
the Public Health Service Act (42 U.S.C. 262) 
that is material and is causally related to the 
harm which the claimant allegedly suffered 
(B) a person made an illegal payment to 
an official of the Food and Drug Administra-
tion for the purpose of either securing or main-
taining approval, clearance, or licensure of such 
medical product; or 
(C) the defendant caused the medical prod-
uct which caused the claimant’s harm to be 
misbranded or adulterated (as such terms are
135 
used in chapter V of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 351 et seq.)). 
SEC. 406. AUTHORIZATION OF PAYMENT OF FUTURE DAM-
AGES TO CLAIMANTS IN HEALTH CARE LAW-
SUITS. 
(a) IN GENERAL.—In any health care lawsuit, if an 
award of future damages, without reduction to present 
value, equaling or exceeding $50,000 is made against a 
party with sufficient insurance or other assets to fund a 
periodic payment of such a judgment, the court shall, at 
the request of any party, enter a judgment ordering that 
the future damages be paid by periodic payments, in ac-
cordance with the Uniform Periodic Payment of Judg-
ments Act promulgated by the National Conference of 
Commissioners on Uniform State Laws. 
(b) APPLICABILITY.—This section applies to all ac-
tions which have not been first set for trial or retrial be-
fore the effective date of this title. 
SEC. 407. DEFINITIONS. 
In this title: 
(1) ALTERNATIVE DISPUTE RESOLUTION SYS-
TEM; ADR.—The term ‘‘alternative dispute resolution 
system’’ or ‘‘ADR’’ means a system that provides 
for the resolution of health care lawsuits in a man-
136 
ner other than through a civil action brought in a 
State or Federal court. 
(2) CLAIMANT.—The term ‘‘claimant’’ means 
any person who brings a health care lawsuit, includ-
ing a person who asserts or claims a right to legal 
or equitable contribution, indemnity, or subrogation, 
arising out of a health care liability claim or action, 
and any person on whose behalf such a claim is as-
serted or such an action is brought, whether de-
ceased, incompetent, or a minor. 
(3) 
COMPENSATORY
DAMAGES.—The 
term 
‘‘compensatory 
damages’’ 
means 
objectively 
verifiable monetary losses incurred as a result of the 
provision of, use of, or payment for (or failure to 
provide, use, or pay for) health care services or med-
ical products, such as past and future medical ex-
penses, loss of past and future earnings, cost of ob-
taining domestic services, loss of employment, and 
loss of business or employment opportunities, dam-
ages for physical and emotional pain, suffering, in-
convenience, physical impairment, mental anguish, 
disfigurement, loss of enjoyment of life, loss of soci-
ety and companionship, loss of consortium (other 
than loss of domestic service), hedonic damages, in-
jury to reputation, and all other nonpecuniary losses
137 
of any kind or nature. The term ‘‘compensatory 
damages’’ includes economic damages and non-
economic damages, as such terms are defined in this 
section. 
(4) CONTINGENT FEE.—The term ‘‘contingent 
fee’’ includes all compensation to any person or per-
sons which is payable only if a recovery is effected 
on behalf of one or more claimants. 
(5) ECONOMIC DAMAGES.—The term ‘‘economic 
damages’’ means objectively verifiable monetary 
losses incurred as a result of the provision of, use 
of, or payment for (or failure to provide, use, or pay 
for) health care services or medical products, such as 
past and future medical expenses, loss of past and 
future earnings, cost of obtaining domestic services, 
loss of employment, and loss of business or employ-
ment opportunities. 
(6) 
HEALTH
CARE
LAWSUIT.—The 
term 
‘‘health care lawsuit’’ means any health care liability 
claim concerning the provision of health care goods 
or services or any medical product affecting inter-
state commerce, or any health care liability action 
concerning the provision of health care goods or 
services or any medical product affecting interstate 
commerce, brought in a State or Federal court or
138 
pursuant to an alternative dispute resolution system, 
against a health care provider, a health care organi-
zation, or the manufacturer, distributor, supplier, 
marketer, promoter, or seller of a medical product, 
regardless of the theory of liability on which the 
claim is based, or the number of claimants, plain-
tiffs, defendants, or other parties, or the number of 
claims or causes of action, in which the claimant al-
leges a health care liability claim. Such term does 
not include a claim or action which is based on 
criminal liability; which seeks civil fines or penalties 
paid to Federal, State, or local government; or which 
is grounded in antitrust. 
(7) HEALTH
CARE
LIABILITY
ACTION.—The 
term ‘‘health care liability action’’ means a civil ac-
tion brought in a State or Federal court or pursuant 
to an alternative dispute resolution system, against 
a health care provider, a health care organization, or 
the manufacturer, distributor, supplier, marketer, 
promoter, or seller of a medical product, regardless 
of the theory of liability on which the claim is based, 
or the number of plaintiffs, defendants, or other par-
ties, or the number of causes of action, in which the 
claimant alleges a health care liability claim.
139 
(8) HEALTH
CARE
LIABILITY
CLAIM.—The 
term ‘‘health care liability claim’’ means a demand 
by any person, whether or not pursuant to ADR, 
against a health care provider, health care organiza-
tion, or the manufacturer, distributor, supplier, mar-
keter, promoter, or seller of a medical product, in-
cluding, but not limited to, third-party claims, cross- 
claims, counter-claims, or contribution claims, which 
are based upon the provision of, use of, or payment 
for (or the failure to provide, use, or pay for) health 
care services or medical products, regardless of the 
theory of liability on which the claim is based, or the 
number of plaintiffs, defendants, or other parties, or 
the number of causes of action. 
(9) HEALTH CARE ORGANIZATION.—The term 
‘‘health care organization’’ means any person or en-
tity which is obligated to provide or pay for health 
benefits under any health plan, including any person 
or entity acting under a contract or arrangement 
with a health care organization to provide or admin-
ister any health benefit. 
(10) HEALTH
CARE
PROVIDER.—The term 
‘‘health care provider’’ means any person or entity 
required by State or Federal laws or regulations to 
be licensed, registered, or certified to provide health
140 
care services, and being either so licensed, reg-
istered, or certified, or exempted from such require-
ment by other statute or regulation. 
(11) HEALTH CARE GOODS OR SERVICES.—The 
term ‘‘health care goods or services’’ means any 
goods or services provided by a health care organiza-
tion, provider, or by any individual working under 
the supervision of a health care provider, that relates 
to the diagnosis, prevention, or treatment of any 
human disease or impairment, or the assessment or 
care of the health of human beings. 
(12) MALICIOUS
INTENT
TO
INJURE.—The 
term ‘‘malicious intent to injure’’ means inten-
tionally causing or attempting to cause physical in-
jury other than providing health care goods or serv-
ices. 
(13) MEDICAL PRODUCT.—The term ‘‘medical 
product’’ means a drug, device, or biological product 
intended for humans, and the terms ‘‘drug’’, ‘‘de-
vice’’, and ‘‘biological product’’ have the meanings 
given such terms in sections 201(g)(1) and 201(h) 
of the Federal Food, Drug and Cosmetic Act (21 
U.S.C. 321(g)(1) and (h)) and section 351(a) of the 
Public Health Service Act (42 U.S.C. 262(a)), re-
141 
spectively, including any component or raw material 
used therein, but excluding health care services. 
(14) 
NONECONOMIC
DAMAGES.—The 
term 
‘‘noneconomic damages’’ means damages for phys-
ical and emotional pain, suffering, inconvenience, 
physical impairment, mental anguish, disfigurement, 
loss of enjoyment of life, loss of society and compan-
ionship, loss of consortium (other than loss of do-
mestic service), hedonic damages, injury to reputa-
tion, and all other nonpecuniary losses of any kind 
or nature. 
(15) PUNITIVE DAMAGES.—The term ‘‘punitive 
damages’’ means damages awarded, for the purpose 
of punishment or deterrence, and not solely for com-
pensatory purposes, against a health care provider, 
health care organization, or a manufacturer, dis-
tributor, or supplier of a medical product. Punitive 
damages are neither economic nor noneconomic 
damages. 
(16) RECOVERY.—The term ‘‘recovery’’ means 
the net sum recovered after deducting any disburse-
ments or costs incurred in connection with prosecu-
tion or settlement of the claim, including all costs 
paid or advanced by any person. Costs of health care 
incurred by the plaintiff and the attorneys’ office
142 
overhead costs or charges for legal services are not 
deductible disbursements or costs for such purpose. 
(17) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Is-
lands, the Trust Territory of the Pacific Islands, and 
any other territory or possession of the United 
States, or any political subdivision thereof. 
SEC. 408. EFFECT ON OTHER LAWS. 
(a) VACCINE INJURY.— 
(1) To the extent that title XXI of the Public 
Health Service Act establishes a Federal rule of law 
applicable to a civil action brought for a vaccine-re-
lated injury or death— 
(A) this title does not affect the application 
of the rule of law to such an action; and 
(B) any rule of law prescribed by this title 
in conflict with a rule of law of such title XXI 
shall not apply to such action. 
(2) If there is an aspect of a civil action 
brought for a vaccine-related injury or death to 
which a Federal rule of law under title XXI of the 
Public Health Service Act does not apply, then this 
title or otherwise applicable law (as determined
143 
under this title) will apply to such aspect of such ac-
tion. 
(b) OTHER FEDERAL LAW.—Except as provided in 
this section, nothing in this title shall be deemed to affect 
any defense available to a defendant in a health care law-
suit or action under any other provision of Federal law. 
SEC. 
409. 
STATE 
FLEXIBILITY 
AND 
PROTECTION 
OF 
STATES’ RIGHTS. 
(a) HEALTH CARE LAWSUITS.—The provisions gov-
erning health care lawsuits set forth in this title preempt, 
subject to subsections (b) and (c), State law to the extent 
that State law prevents the application of any provisions 
of law established by or under this title. The provisions 
governing health care lawsuits set forth in this title super-
sede chapter 171 of title 28, United States Code, to the 
extent that such chapter— 
(1) provides for a greater amount of damages 
or contingent fees, a longer period in which a health 
care lawsuit may be commenced, or a reduced appli-
cability or scope of periodic payment of future dam-
ages, than provided in this title; or 
(2) prohibits the introduction of evidence re-
garding collateral source benefits, or mandates or 
permits subrogation or a lien on collateral source 
benefits.
144 
(b) PROTECTION OF STATES’ RIGHTS AND OTHER 
LAWS.—(1) Any issue that is not governed by any provi-
sion of law established by or under this title (including 
State standards of negligence) shall be governed by other-
wise applicable State or Federal law. 
(2) This title shall not preempt or supersede any 
State or Federal law that imposes greater procedural or 
substantive protections for health care providers and 
health care organizations from liability, loss, or damages 
than those provided by this title or create a cause of ac-
tion. 
(c) STATE FLEXIBILITY.—No provision of this title 
shall be construed to preempt— 
(1) any State law (whether effective before, on, 
or after the date of the enactment of this Act) that 
specifies a particular monetary amount of compen-
satory or punitive damages (or the total amount of 
damages) that may be awarded in a health care law-
suit, regardless of whether such monetary amount is 
greater or lesser than is provided for under this title, 
notwithstanding section 303(a); or 
(2) any defense available to a party in a health 
care lawsuit under any other provision of State or 
Federal law.
145 
SEC. 410. APPLICABILITY; EFFECTIVE DATE. 
This title shall apply to any health care lawsuit 
brought in a Federal or State court, or subject to an alter-
native dispute resolution system, that is initiated on or 
after the date of the enactment of this Act, except that 
any health care lawsuit arising from an injury occurring 
prior to the date of the enactment of this Act shall be 
governed by the applicable statute of limitations provisions 
in effect at the time the injury occurred. 
TITLE V—COMMITTEE ON OVER-
SIGHT AND GOVERNMENT RE-
FORM 
SEC. 501. RETIREMENT CONTRIBUTIONS. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.— 
(1) 
INDIVIDUAL
CONTRIBUTIONS.—Section 
8334(c) of title 5, United States Code, is amended— 
(A) by striking ‘‘(c) Each’’ and inserting 
‘‘(c)(1) Each’’; and 
(B) by adding at the end the following: 
‘‘(2) Notwithstanding any other provision of this sub-
section, the applicable percentage of basic pay under this 
subsection shall— 
‘‘(A) except as provided in subparagraph (B) or 
(C), for purposes of computing an amount— 
‘‘(i) for a period in calendar year 2013, be 
equal to the applicable percentage under this
146 
subsection for calendar year 2012, plus an ad-
ditional 1.5 percentage points; 
‘‘(ii) for a period in calendar year 2014, be 
equal to the applicable percentage under this 
subsection for calendar year 2013 (as deter-
mined under clause (i)), plus an additional 0.5 
percentage point; 
‘‘(iii) for a period in calendar year 2015, 
2016, or 2017, be equal to the applicable per-
centage under this subsection for the preceding 
calendar year (as determined under clause (ii) 
or this clause, as the case may be), plus an ad-
ditional 1.0 percentage point; and 
‘‘(iv) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this subsection for calendar year 
2017 (as determined under clause (iii)); 
‘‘(B) for purposes of computing an amount with 
respect to a Member for Member service— 
‘‘(i) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
subsection for calendar year 2012, plus an ad-
ditional 2.5 percentage points; 
‘‘(ii) for a period in calendar year 2014, 
2015, 2016, or 2017, be equal to the applicable
147 
percentage under this subsection for the pre-
ceding calendar year (as determined under 
clause (i) or this clause, as the case may be), 
plus an additional 1.5 percentage points; and 
‘‘(iii) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this subsection for calendar year 
2017 (as determined under clause (ii)); and 
‘‘(C) for purposes of computing an amount with 
respect to a Member or employee for Congressional 
employee service— 
‘‘(i) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
subsection for calendar year 2012, plus an ad-
ditional 2.5 percentage points; 
‘‘(ii) for a period in calendar year 2014, 
2015, 2016, or 2017, be equal to the applicable 
percentage under this subsection for the pre-
ceding calendar year (as determined under 
clause (i) or this clause, as the case may be), 
plus an additional 1.5 percentage points; and 
‘‘(iii) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this subsection for calendar year 
2017 (as determined under clause (ii)).
148 
‘‘(3)(A) Notwithstanding subsection (a)(2), any ex-
cess contributions under subsection (a)(1)(A) (including 
the portion of any deposit under this subsection allocable 
to excess contributions) shall, if made by an employee of 
the United States Postal Service or the Postal Regulatory 
Commission, be deposited to the credit of the Postal Serv-
ice Fund under section 2003 of title 39, rather than the 
Civil Service Retirement and Disability Fund. 
‘‘(B) For purposes of this paragraph, the term ‘ex-
cess contributions’, as used with respect to contributions 
made under subsection (a)(1)(A) by an employee of the 
United States Postal Service or the Postal Regulatory 
Commission, means the amount by which— 
‘‘(i) deductions from basic pay of such employee 
which are made under subsection (a)(1)(A), exceed 
‘‘(ii) deductions from basic pay of such em-
ployee which would have been so made if paragraph 
(2) had not been enacted.’’. 
(2) GOVERNMENT
CONTRIBUTIONS.—Section 
8334(a)(1)(B) of title 5, United States Code, is 
amended— 
(A) in clause (i), by striking ‘‘Except as 
provided in clause (ii),’’ and inserting ‘‘Except 
as provided in clause (ii) or (iii),’’; and 
(B) by adding at the end the following:
149 
‘‘(iii) The amount to be contributed under clause (i) 
shall, with respect to a period in any year beginning after 
December 31, 2012, be equal to— 
‘‘(I) the amount which would otherwise apply 
under clause (i) with respect to such period, reduced 
by 
‘‘(II) the amount by which, with respect to such 
period, the withholding under subparagraph (A) ex-
ceeds the amount which would otherwise have been 
withheld from the basic pay of the employee or elect-
ed official involved under subparagraph (A) based on 
the percentage applicable under subsection (c) for 
calendar year 2012.’’. 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 
(1) 
INDIVIDUAL
CONTRIBUTIONS.—Section 
8422(a)(3) of title 5, United States Code, is amend-
ed— 
(A) by redesignating subparagraph (B) as 
subparagraph (C); 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) Notwithstanding any other provision of this 
paragraph, the applicable percentage under this para-
graph for civilian service by employees or Members other 
than revised annuity employees shall—
150 
‘‘(i) except as provided in clause (ii) or (iii), for 
purposes of computing an amount— 
‘‘(I) for a period in calendar year 2013, be 
equal to the applicable percentage under this 
paragraph for calendar year 2012, plus an ad-
ditional 1.5 percentage points; 
‘‘(II) for a period in calendar year 2014, 
be equal to the applicable percentage under this 
paragraph for calendar year 2013 (as deter-
mined under subclause (I)), plus an additional 
0.5 percentage point; 
‘‘(III) for a period in calendar year 2015, 
2016, or 2017, be equal to the applicable per-
centage under this paragraph for the preceding 
calendar year (as determined under subclause 
(II) or this subclause, as the case may be), plus 
an additional 1.0 percentage point; and 
‘‘(IV) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this paragraph for calendar year 
2017 (as determined under subclause (III)); 
‘‘(ii) for purposes of computing an amount with 
respect to a Member— 
‘‘(I) for a period in calendar year 2013, be 
equal to the applicable percentage under this
151 
paragraph for calendar year 2012, plus an ad-
ditional 2.5 percentage points; 
‘‘(II) for a period in calendar year 2014, 
2015, 2016, or 2017, be equal to the applicable 
percentage under this paragraph for the pre-
ceding calendar year (as determined under sub-
clause (I) or this subclause, as the case may 
be), plus an additional 1.5 percentage points; 
and 
‘‘(III) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this paragraph for calendar year 
2017 (as determined under subclause (II)); and 
‘‘(iii) for purposes of computing an amount 
with respect to a Congressional employee— 
‘‘(I) for a period in calendar year 2013, 
2014, 2015, 2016, or 2017, be equal to the ap-
plicable percentage under this paragraph for 
the preceding calendar year (including as in-
creased under this subclause, if applicable), plus 
an additional 1.5 percentage points; and 
‘‘(II) for a period in any calendar year 
after 2017, be equal to the applicable percent-
age under this paragraph for calendar year
152 
2017 (as determined under subclause (I)).’’; 
and 
(C) in subparagraph (C) (as so redesig-
nated by subparagraph (A))— 
(i) by striking ‘‘9.3’’ each place it ap-
pears and inserting ‘‘12’’; and 
(ii) by striking ‘‘9.8’’ each place it ap-
pears and inserting ‘‘12.5’’. 
(2) GOVERNMENT
CONTRIBUTIONS.—Section 
8423(a)(2) of title 5, United States Code, is amend-
ed— 
(A) by striking ‘‘(2)’’ and inserting 
‘‘(2)(A)’’; and 
(B) by adding at the end the following: 
‘‘(B)(i) Subject to clauses (ii) and (iii), for purposes 
of any period in any year beginning after December 31, 
2012, the normal-cost percentage under this subsection 
shall be determined and applied as if section 501(b)(1) 
of the Sequester Replacement Reconciliation Act of 2012 
had not been enacted. 
‘‘(ii) Any contributions under this subsection in ex-
cess of the amounts which (but for clause (i)) would other-
wise have been payable shall be applied toward reducing 
the unfunded liability of the Civil Service Retirement Sys-
tem.
153 
‘‘(iii) After the unfunded liability of the Civil Service 
Retirement System has been eliminated, as determined by 
the Office, Government contributions under this sub-
section shall be determined and made disregarding this 
subparagraph. 
‘‘(iv) The preceding provisions of this subparagraph 
shall be disregarded for purposes of determining the con-
tributions payable by the United States Postal Service and 
the Postal Regulatory Commission.’’. 
SEC. 502. ANNUITY SUPPLEMENT. 
Section 8421(a) of title 5, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 
(2) in paragraph (2), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 
(3) by adding at the end the following: 
‘‘(4)(A) Except as provided in subparagraph (B), no 
annuity supplement under this section shall be payable in 
the case of an individual who first becomes subject to this 
chapter after December 31, 2012. 
‘‘(B) Nothing in this paragraph applies in the case 
of an individual separating under subsection (d) or (e) of 
section 8412.’’.
154 
SEC. 503. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 
PAYMENTS FOR ACCRUED OR ACCUMULATED 
LEAVE. 
(a) AMENDMENTS RELATING
TO CSRS.—Section 
8351(b) of title 5, United States Code, is amended— 
(1) by striking paragraph (2)(A) and inserting 
the following: 
‘‘(2)(A) An employee or Member may contribute to 
the Thrift Savings Fund in any pay period any amount 
of such employee’s or Member’s basic pay for such pay 
period, and may contribute (by direct transfer to the 
Fund) any part of any payment that the employee or 
Member receives for accumulated and accrued annual or 
vacation leave under section 5551 or 5552. Notwith-
standing section 2105(e), in this paragraph the term ‘em-
ployee’ includes an employee of the United States Postal 
Service or of the Postal Regulatory Commission.’’; 
(2) by striking subparagraph (B) of paragraph 
(2); and 
(3) by redesignating subparagraph (C) of para-
graph (2) as subparagraph (B). 
(b) AMENDMENTS RELATING
TO FERS.—Section 
8432(a) of title 5, United States Code, is amended— 
(1) by striking all that precedes paragraph (3) 
and inserting the following: 
‘‘(a)(1) An employee or Member—
155 
‘‘(A) may contribute to the Thrift Savings 
Fund in any pay period, pursuant to an election 
under subsection (b), any amount of such employee’s 
or Member’s basic pay for such pay period; and 
‘‘(B) may contribute (by direct transfer to the 
Fund) any part of any payment that the employee 
or Member receives for accumulated and accrued an-
nual or vacation leave under section 5551 or 5552. 
‘‘(2) Contributions made under paragraph (1)(A) 
pursuant to an election under subsection (b) shall, with 
respect to each pay period for which such election remains 
in effect, be made in accordance with a program of regular 
contributions provided in regulations prescribed by the 
Executive Director.’’; and 
(2) by adding at the end the following: 
‘‘(4) Notwithstanding section 2105(e), in this sub-
section the term ‘employee’ includes an employee of the 
United States Postal Service or of the Postal Regulatory 
Commission.’’. 
(c) REGULATIONS.—The Executive Director of the 
Federal Retirement Thrift Investment Board shall pro-
mulgate regulations to carry out the amendments made 
by this section.
156 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect 1 year after the 
date of the enactment of this Act. 
TITLE VI—COMMITTEE ON WAYS 
AND MEANS 
Subtitle A—Recapture of Overpay-
ments Resulting From Certain 
Federally-subsidized Health In-
surance 
SEC. 601. RECAPTURE OF OVERPAYMENTS RESULTING 
FROM 
CERTAIN 
FEDERALLY-SUBSIDIZED 
HEALTH INSURANCE. 
(a) IN GENERAL.—Paragraph (2) of section 36B(f) 
of the Internal Revenue Code of 1986 is amended by strik-
ing subparagraph (B). 
(b) CONFORMING AMENDMENT.—So much of para-
graph (2) of section 36B(f) of such Code, as amended by 
subsection (a), as precedes ‘‘advance payments’’ is amend-
ed to read as follows: 
‘‘(2) EXCESS ADVANCE PAYMENTS.—If the’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2013.
157 
Subtitle B—Social Security Num-
ber Required to Claim the Re-
fundable Portion of the Child 
Tax Credit 
SEC. 611. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM 
THE REFUNDABLE PORTION OF THE CHILD 
TAX CREDIT. 
(a) IN GENERAL.—Subsection (d) of section 24 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(5) IDENTIFICATION REQUIREMENT WITH RE-
SPECT TO TAXPAYER.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to any taxpayer for any taxable year 
unless the taxpayer includes the taxpayer’s So-
cial Security number on the return of tax for 
such taxable year. 
‘‘(B) JOINT RETURNS.—In the case of a 
joint return, the requirement of subparagraph 
(A) shall be treated as met if the Social Secu-
rity number of either spouse is included on such 
return. 
‘‘(C) 
LIMITATION.—Subparagraph 
(A) 
shall not apply to the extent the tentative min-
158 
imum tax (as defined in section 55(b)(1)(A)) 
exceeds the credit allowed under section 32.’’. 
(b) OMISSION TREATED
AS MATHEMATICAL
OR 
CLERICAL
ERROR.—Subparagraph 
(I) 
of 
section 
6213(g)(2) of such Code is amended to read as follows: 
‘‘(I) an omission of a correct Social Secu-
rity number required under section 24(d)(5) 
(relating to refundable portion of child tax cred-
it), or a correct TIN under section 24(e) (relat-
ing to child tax credit), to be included on a re-
turn,’’. 
(c) CONFORMING AMENDMENT.—Subsection (e) of 
section 24 of such Code is amended by inserting ‘‘WITH 
RESPECT
TO QUALIFYING CHILDREN’’ after ‘‘IDENTI-
FICATION REQUIREMENT’’ in the heading thereof. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Subtitle C—Human Resources 
Provisions 
SEC. 621. REPEAL OF THE PROGRAM OF BLOCK GRANTS TO 
STATES FOR SOCIAL SERVICES. 
(a) REPEALS.—Sections 2001 through 2007 of the 
Social Security Act (42 U.S.C. 1397–1397f) are repealed. 
(b) CONFORMING AMENDMENTS.—
159 
(1) Section 404(d) of the Social Security Act 
(42 U.S.C. 604(d)) is amended— 
(A) in paragraph (1), by striking ‘‘any or 
all of the following provisions of law:’’ and all 
that follows through ‘‘The’’ and inserting 
‘‘the’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘RULES’’ and all that 
follows through ‘‘any amount paid’’ and in-
serting ‘‘RULES.—Any amount paid’’; 
(ii) by striking ‘‘a provision of law 
specified in paragraph (1)’’ and inserting 
‘‘the Child Care and Development Block 
Grant Act of 1990’’; and 
(iii) by striking subparagraph (B); 
and 
(C) by striking paragraph (2) and redesig-
nating paragraph (3) as paragraph (2). 
(2) Section 422(b) of the Social Security Act 
(42 U.S.C. 622(b)) is amended— 
(A) in paragraph (1)(A)— 
(i) by striking ‘‘administers or super-
vises’’ and inserting ‘‘administered or su-
pervised’’; and
160 
(ii) by striking ‘‘subtitle 1 of title 
XX’’ and inserting ‘‘subtitle A of title XX 
(as in effect before the repeal of such sub-
title)’’; and 
(B) in paragraph (2), by striking ‘‘under 
subtitle 1 of title XX,’’. 
(3) Section 471(a) of the Social Security Act 
(42 U.S.C. 671(a)) is amended— 
(A) in paragraph (4), by striking ‘‘, under 
subtitle 1 of title XX of this Act,’’; and 
(B) in paragraph (8), by striking ‘‘XIX, or 
XX’’ and inserting ‘‘or XIX’’. 
(4) Section 472(h)(1) of the Social Security Act 
(42 U.S.C. 672(h)(1)) is amended by striking the 
2nd sentence. 
(5) Section 473(b) of the Social Security Act 
(42 U.S.C. 673(b)) is amended— 
(A) in paragraph (1), by striking ‘‘(3)’’ 
and inserting ‘‘(2)’’; 
(B) in paragraph (4), by striking ‘‘para-
graphs (1) and (2)’’ and inserting ‘‘paragraph 
(1)’’; and 
(C) by striking paragraph (2) and redesig-
nating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively.
161 
(6) Section 504(b)(6) of the Social Security Act 
(42 U.S.C. 704(b)(6)) is amended in each of sub-
paragraphs (A) and (B) by striking ‘‘XIX, or XX’’ 
and inserting ‘‘or XIX’’. 
(7) Section 1101(a)(1) of the Social Security 
Act (42 U.S.C. 1301(a)(1)) is amended by striking 
the penultimate sentence. 
(8) Section 1128(h) of the Social Security Act 
(42 U.S.C. 1320a–7(h)) is amended— 
(A) by adding ‘‘or’’ at the end of para-
graph (2); and 
(B) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3). 
(9) Section 1128A(i)(1) of the Social Security 
Act (42 U.S.C. 1320a–7a(i)(1)) is amended by strik-
ing ‘‘or subtitle 1 of title XX’’. 
(10) Section 1132(a)(1) of the Social Security 
Act (42 U.S.C. 1320b–2(a)(1)) is amended by strik-
ing ‘‘XIX, or XX’’ and inserting ‘‘or XIX’’. 
(11) Section 1902(e)(13)(F)(iii) of the Social 
Security Act (42 U.S.C. 1396a(e)(13)(F)(iii)) is 
amended— 
(A) by striking ‘‘EXCLUSIONS’’ and insert-
ing ‘‘EXCLUSION’’; and
162 
(B) by striking ‘‘an agency that determines 
eligibility for a program established under the 
Social Services Block Grant established under 
title XX or’’. 
(12) The heading for title XX of the Social Se-
curity Act is amended by striking ‘‘BLOCK 
GRANTS TO STATES FOR SOCIAL SERVICES’’ 
and inserting ‘‘HEALTH PROFESSIONS DEM-
ONSTRATIONS 
AND 
ENVIRONMENTAL 
HEALTH CONDITION DETECTION’’. 
(13) The heading for subtitle A of title XX of 
the Social Security Act is amended by striking 
‘‘Block Grants to States for Social Serv-
ices’’ 
and 
inserting 
‘‘Health Professions 
Demonstrations 
and 
Environmental 
Health Condition Detection’’. 
(14) Section 16(k)(5)(B)(i) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025(k)(5)(B)(i)) 
is amended by striking ‘‘, or title XX,’’. 
(15) Section 402(b)(3) of the Personal Respon-
sibility and Work Opportunity Reconciliation Act of 
1996 (8 U.S.C. 1612(b)(3)) is amended by striking 
subparagraph (B) and redesignating subparagraph 
(C) as subparagraph (B).
163 
(16) Section 245A(h)(4)(I) of the Immigration 
Reform and Control Act of 1986 (8 U.S.C. 
1255a(h)(4)(I)) is amended by striking ‘‘, XVI, and 
XX’’ and inserting ‘‘and XVI’’. 
(17) Section 17 of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1766) is amend-
ed— 
(A) in subsection (a)(2)— 
(i) in subparagraph (B)— 
(I) by striking ‘‘—’’ and all that 
follows through ‘‘(i)’’; 
(II) by striking ‘‘or’’ at the end 
of clause (i); and 
(III) by striking clause (ii); and 
(ii) in subparagraph (D)(ii), by strik-
ing ‘‘or title XX’’; and 
(B) in subsection (o)(2)(B)— 
(i) by striking ‘‘or title XX’’ each 
place it appears; and 
(ii) by striking ‘‘or XX’’. 
(18) Section 201(b) of the Indian Child Welfare 
Act of 1978 (25 U.S.C. 1931(b)) is amended by 
striking ‘‘titles IV–B and XX’’ each place it appears 
and inserting ‘‘part B of title IV’’.
164 
(19) Section 3803(c)(2)(C) of title 31, United 
States Code, is amended by striking clause (vi) and 
redesignating clauses (vii) through (xvi) as clauses 
(vi) through (xv), respectively. 
(20) Section 14502(d)(3) of title 40, United 
States Code, is amended— 
(A) by striking ‘‘and title XX’’; and 
(B) by striking ‘‘, 1397 et seq.’’. 
(21) Section 2006(a)(15) of the Public Health 
Service Act (42 U.S.C. 300z–5(a)(15)) is amended 
by striking ‘‘and title XX’’. 
(22) Section 203(b)(3) of the Older Americans 
Act of 1965 (42 U.S.C. 3013(b)(3)) is amended by 
striking ‘‘XIX, and XX’’ and inserting ‘‘and XIX’’. 
(23) Section 213 of the Older Americans Act of 
1965 (42 U.S.C. 3020d) is amended by striking ‘‘or 
title XX’’. 
(24) Section 306(d) of the Older Americans Act 
of 1965 (42 U.S.C. 3026(d)) is amended in each of 
paragraphs (1) and (2) by striking ‘‘titles XIX and 
XX’’ and inserting ‘‘title XIX’’. 
(25) Section 2605 of the Low-Income Home 
Energy Assistance Act of 1981 (42 U.S.C. 8624) is 
amended in each of subsections (b)(4) and (j) by
165 
striking ‘‘under title XX of the Social Security 
Act,’’. 
(26) Section 602 of the Child Development As-
sociate Scholarship Assistance Act of 1985 (42 
U.S.C. 10901) is repealed. 
(27) Section 3(d)(1) of the Assisted Suicide 
Funding Restriction Act of 1997 (42 U.S.C. 
14402(d)(1)) is amended by striking subparagraph 
(C) and redesignating subparagraphs (D) through 
(K) as subparagraphs (C) through (J), respectively. 
(c) EFFECTIVE DATE.—The repeals and amend-
ments made by this section shall take effect on October 
1, 2012. 
TITLE VII—SEQUESTER 
REPLACEMENT 
SEC. 701. SHORT TITLE. 
This title may be cited as the ‘‘Sequester Replace-
ment Act of 2012’’. 
SEC. 702. PROTECTING VETERANS PROGRAMS FROM SE-
QUESTER. 
Section 256(e)(2)(E) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is repealed.
166 
SEC. 703. ACHIEVING $19 BILLION IN DISCRETIONARY SAV-
INGS. 
(a) REVISED
2013 DISCRETIONARY
SPENDING 
LIMIT.—Paragraph (2) of section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended to read as follows: 
‘‘(2) with respect to fiscal year 2013, for the 
discretionary category, $1,047,000,000,000 in new 
budget authority;’’. 
(b) DISCRETIONARY SAVINGS.—Section 251A(7)(A) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended to read as follows: 
‘‘(A) FISCAL YEAR 2013.— 
‘‘(i) FISCAL
YEAR
2013
ADJUST-
MENT.—On January 2, 2013, the discre-
tionary category set forth in section 
251(c)(2) 
shall 
be 
decreased 
by 
$19,104,000,000 in budget authority. 
‘‘(ii) SUPPLEMENTAL SEQUESTRATION 
ORDER.—On January 15, 2013, OMB 
shall issue a supplemental sequestration 
report for fiscal year 2013 and take the 
form of a final sequestration report as set 
forth in section 254(f)(2) and using the 
procedures set forth in section 253(f), to 
eliminate 
any 
discretionary 
spending
167 
breach of the spending limit set forth in 
section 251(c)(2) as adjusted by clause (i), 
and the President shall order a sequestra-
tion, if any, as required by such report.’’. 
SEC. 704. CONFORMING AMENDMENTS TO SECTION 314 OF 
THE 
CONGRESSIONAL 
BUDGET 
AND 
IM-
POUNDMENT CONTROL ACT OF 1974. 
Section 314(a) of the Congressional Budget Act of 
1974 is amended to read as follows: 
‘‘(a) ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—The chair of the Committee 
on the Budget of the House of Representatives or 
the Senate may make adjustments as set forth in 
paragraph (2) for a bill or joint resolution, amend-
ment thereto or conference report thereon, by the 
amount of new budget authority and outlays flowing 
therefrom in the same amount as required by section 
251(b) of the Balanced Budget and Emergency Def-
icit Control Act of 1985. 
‘‘(2) MATTERS TO BE ADJUSTED.—The chair of 
the Committee on the Budget of the House of Rep-
resentatives or the Senate may make the adjust-
ments referred to in paragraph (1) to—
168 
‘‘(A) the allocations made pursuant to the 
appropriate concurrent resolution on the budget 
pursuant to section 302(a); 
‘‘(B) the budgetary aggregates as set forth 
in the appropriate concurrent resolution on the 
budget; and 
‘‘(C) the discretionary spending limits, if 
any, set forth in the appropriate concurrent res-
olution on the budget.’’. 
SEC. 705. TREATMENT FOR PAYGO PURPOSES. 
The budgetary effects of this Act and any amendment 
made by it shall not be entered on either PAYGO score-
card maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010. 
SEC. 706. ELIMINATION OF THE FISCAL YEAR 2013 SEQUES-
TRATION FOR DEFENSE DIRECT SPENDING. 
Any sequestration order issued by the President 
under the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 to carry out reductions to direct spending 
for the defense function (050) for fiscal year 2013 pursu-
169 
ant to section 251A of such Act shall have no force or 
effect. 
Passed the House of Representatives May 10, 2012. 
Attest: 
Clerk.
112TH CONGRESS 
2D SESSION 
H. R. 5652 
AN ACT 
To provide for reconciliation pursuant to section 
201 of the concurrent resolution on the budget 
for fiscal year 2013.