Homeowner Flood Insurance Transparency and Protection Act
Bill: S.3934 | Sponsor: Sen. Hyde-Smith, Cindy (R-MS)
Policy area: Finance and Financial Sector

Summary:
Homeowner Flood Insurance Transparency and Protection Act
This bill allows National Flood Insurance Program policyholders to elect to pay premiums at the rate in effect prior to the implementation of Risk Rating 2.0. Risk Rating 2.0 bases premium rates on an individual property's specific flood risk instead of the flood risk of a general location and property type.
Policyholders may elect to pay the previous rate until the Federal Emergency Management Agency performs several actions regarding Risk Rating 2.0, including

To permit policyholders under the National Flood Insurance Program to 
    elect to have previous premium rates remain in effect until the 
  Administrator of the Federal Emergency Management Agency satisfies 
              certain conditions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowner Flood Insurance 
Transparency and Protection Act''.

SEC. 2. CHARGEABLE PREMIUM RATES.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Federal Emergency Management Agency; and
            (2) the term ``National Flood Insurance Program'' means the 
        program established under the National Flood Insurance Act of 
        1968 (42 U.S.C. 4001 et seq.).
    (b) Option for Policyholders.--
            (1) In general.--Notwithstanding section 1308 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4015), a 
        policyholder under the National Flood Insurance Program may 
        elect to have the chargeable premium rate for the applicable 
        property of the policyholder, as in effect on April 1, 2020, 
        apply and remain in effect during the period beginning on the 
        date of enactment of this Act and ending on the date on which 
        the Administrator completes all of the actions described in 
        subsection (c), without regard to the chargeable premium rate 
        that is in effect for that property, as of the day before the 
        date of enactment of this Act.
            (2) Notification requirement.--The Administrator shall 
        provide each policyholder under the National Flood Insurance 
        Program a notification regarding the right of the policyholder 
        under paragraph (1).
    (c) Required Actions.--The actions of the Administrator described 
in this subsection are as follows:
            (1) Makes available to the public all data and methods used 
        to prescribe chargeable premium rates for types and classes of 
        properties for which insurance coverage is available under the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
        (referred to in this subsection as ``chargeable premium 
        rates'') under Risk Rating 2.0, or any substantially similar 
        methodology.
            (2) Creates an online database that is available to 
        policyholders under the National Flood Insurance Program that 
        provides each such policyholder with information regarding what 
        the chargeable premium rate for the applicable property of the 
        policyholder would be--
                    (A) under Risk Rating 2.0, or any substantially 
                similar methodology; and
                    (B) assuming that the limitation under section 
                1308(e) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4015(e)) were not in effect.
            (3) Completes and publishes a comprehensive assessment of 
        the economic and social impacts of implementing Risk Rating 2.0 
        (or any substantially similar methodology) during the 20-year 
        period beginning in the year in which the assessment is made, 
        which shall include an evaluation of the effect that such 
        implementation will have, during that 20-year period, on--
                    (A) the affordability and availability of flood 
                insurance under the National Flood Insurance Program;
                    (B) property values; and
                    (C) non-Federal Government revenues.
            (4) Supplements (and revises, as appropriate) the Record of 
        Decision for the final nationwide programmatic environmental 
        impact statement evaluating the environmental impacts of 
        proposed modifications to the National Flood Insurance Program 
        (83 Fed. Reg. 24328) to include the impacts of implementing 
        Risk Rating 2.0, or any substantially similar methodology.
            (5) Demonstrates that the data and methods used to 
        prescribe chargeable premium rates under Risk Rating 2.0, or 
        any substantially similar methodology, satisfy the requirements 
        under section 515 of the Consolidated Appropriations Act, 2001 
        (Public Law 106-554; 114 Stat. 2763A-153), including that, in 
        implementing that methodology, the Administrator ensures and 
        maximizes the quality, objectivity, utility, and integrity of 
        information disseminated by the Administrator.
            (6) Conducts public notice and comment rulemaking under 
        chapter 5 of title 5, United States Code, regarding Risk Rating 
        2.0, or any substantially similar methodology, which shall 
        include the development of a fair, transparent, and streamlined 
        process to manage--
                    (A) disputes over chargeable premium rates; and
                    (B) other factors with respect to the 
                implementation of that methodology.
            (7) For each county in the United States, publishes the 
        distribution of chargeable premium rates showing the median, 
        mean, lower and upper quartiles, maximum amount, and minimum 
        amount of chargeable premium rates under each of the following:
                    (A) The method used to prescribe chargeable premium 
                rates, as of September 30, 2021.
                    (B) The methodology projected to be used to 
                prescribe chargeable premium rates, as of April 1, 
                2022, assuming that the limitations under section 
                1308(e) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4015(e)) are applied.
                    (C) The methodology described in subparagraph (B), 
                assuming that the limitations described in that 
                subparagraph are not applied.
                    (D) The methodology described in subparagraph (B), 
                assuming that--
                            (i) the limitations described in that 
                        subparagraph are applied; and
                            (ii) the administrative costs of the 
                        National Flood Insurance Program are allocated 
                        on a uniform, per contract basis rather than as 
                        allocated under Risk Rating 2.0, or any 
                        substantially similar methodology.
                    (E) The methodology described in subparagraph (B), 
                assuming that--
                            (i) the limitations described in that 
                        subparagraph are not applied; and
                            (ii) the administrative costs of the 
                        National Flood Insurance Program are allocated 
                        on a uniform, per contract basis rather than as 
                        allocated under Risk Rating 2.0, or any 
                        substantially similar methodology.
            (8) Submits to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report detailing the 
        satisfaction of the requirements under paragraphs (1) through 
        (7).
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