tice requirements established by this paragraph 
shall be subject to the penalties prescribed under 
section 102(f)(5) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(f)(5)). 
SEC. 124. NOTICE OF FLOOD INSURANCE AVAILABILITY 
UNDER RESPA. 
Section 5(b) of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2604(b)) is amended—
(1) in paragraph (4), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in paragraph (5), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) an explanation of flood insurance and the 
availability of flood insurance under the National 
Flood Insurance Program, whether or not the real es-
tate is located in an area having special flood haz-
ards.’’. 
SEC. 
125. 
TESTING 
OF 
NEW 
FLOODPROOFING 
TECH-
NOLOGIES. 
(a) PERMISSIBLE TESTING.—A temporary residential 
structure built for the purpose of testing a new flood proof-
ing technology, as described in subsection (b), in any State 
or community that receives mitigation assistance under sec-
tion 1366 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104c) may not be construed to be in violation of 
any flood risk mitigation plan developed by that State or 
community and approved by the Director of the Federal 
Emergency Management Agency. 
(b) CONDITIONS
ON
TESTING.—Testing permitted 
under subsection (a) shall—
(1) be performed on an uninhabited residential 
structure; 
(2) require dismantling of the structure at the 
conclusion of such testing; and 
(3) require that all costs associated with such 
testing and dismantling be covered by the individual 
or entity conducting the testing, or on whose behalf 
the testing is conducted. 
(c) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to alter, limit, or extend the availability 
of flood insurance to any structure that may employ, uti-
lize, or apply any technology tested under subsection (b). 
SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS ME-
DIATION PROGRAMS. 
Chapter I of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.) is amended by inserting after sec-
tion 1313 the following:
‘‘SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS 
MEDIATION PROGRAMS. 
‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case of 
the occurrence of a major disaster, as defined in section 102 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5122) that may have resulted in 
flood damage under the flood insurance program established 
under this chapter and other personal lines residential 
property insurance coverage offered by a State regulated in-
surer, upon request made by the insurance commissioner 
of a State (or such other official responsible for regulating 
the business of insurance in the State) for the participation 
of representatives of the Director in a program sponsored 
by such State for nonbinding mediation of insurance claims 
resulting from a major disaster, the Director shall cause 
representatives of the flood insurance program to partici-
pate in such a State program where claims under the flood 
insurance program are involved to expedite settlement of 
flood damage claims resulting from such disaster. 
‘‘(b) EXTENT OF PARTICIPATION.—In satisfying the 
requirements of subsection (a), the Director shall require 
that each representative of the Director—
‘‘(1) be certified for purposes of the flood insur-
ance program to settle claims against such program 
resulting from such disaster in amounts up to the 
limits of policies under such program;
‘‘(2) attend State-sponsored mediation meetings 
regarding flood insurance claims resulting from such 
disaster at such times and places as may be arranged 
by the State; 
‘‘(3) participate in good faith negotiations to-
ward the settlement of such claims with policyholders 
of coverage made available under the flood insurance 
program; and 
‘‘(4) finalize the settlement of such claims on be-
half of the flood insurance program with such policy-
holders. 
‘‘(c) COORDINATION.—Representatives of the Director 
shall at all times coordinate their activities with insurance 
officials of the State and representatives of insurers for the 
purposes of consolidating and expediting settlement of 
claims under the national flood insurance program result-
ing from such disaster. 
‘‘(d) QUALIFICATIONS OF MEDIATORS.—Each State 
mediator participating in State-sponsored mediation under 
this section shall be—
‘‘(1)(A) a member in good standing of the State 
bar in the State in which the mediation is to occur 
with at least 2 years of practical experience; and
‘‘(B) an active member of such bar for at least 
1 year prior to the year in which such mediator’s 
participation is sought; or 
‘‘(2) a retired trial judge from any United States 
jurisdiction who was a member in good standing of 
the bar in the State in which the judge presided for 
at least 5 years prior to the year in which such medi-
ator’s participation is sought. 
‘‘(e) MEDIATION
PROCEEDINGS
AND
DOCUMENTS 
PRIVILEGED.—As a condition of participation, all state-
ments made and documents produced pursuant to State-
sponsored mediation involving representatives of the Direc-
tor shall be deemed privileged and confidential settlement 
negotiations made in anticipation of litigation. 
‘‘(f) LIABILITY, RIGHTS, OR OBLIGATIONS NOT AF-
FECTED.—Participation in State-sponsored mediation, as 
described in this section does not—
‘‘(1) affect or expand the liability of any party 
in contract or in tort; or 
‘‘(2) affect the rights or obligations of the parties, 
as established—
‘‘(A) in any regulation issued by the Direc-
tor, including any regulation relating to a 
standard flood insurance policy; 
‘‘(B) under this Act; and