Title: Flood Insurance Affordability and Sustainability Act of 2017
Policy area: Finance and Financial Sector

Summary:
Flood Insurance Affordability and Sustainability Act of 2017
This bill amends the National Flood Insurance Act of 1968 to extend the National Flood Insurance Program (NFIP) through FY2027 (currently, certain provisions expire FY2017).
The Federal Emergency Management Agency (FEMA) is directed to base the coverage limit of flood insurance obtained through NFIP on the maximum confirmation loan limit determined by the Federal National Mortgage Association (Fannie Mae). Under current law, coverage is limited to $250,000 for residential dwellings and $500,000 for nonresidential buildings.
The Increased Cost of Compliance (ICC) coverage limitation is increased to $75,000 (currently $30,000). ICC coverage is offered by NFIP to cover the cost of flood mitigation measures on certain structures.
The bill also directs FEMA to:
Agreed Value Flood Protection Program Act of 2017
FEMA must establish an Agreed Value Flood Protection Pilot Program that bases policy payouts on flood height reached in participating covered structures.
“Write Your Own” companies are authorized to offer private flood insurance to specified properties under a two-year pilot program.
This bill amends the Biggert-Waters Flood Insurance Reform Act of 2012 to reauthorize the National Flood Mapping Program through 2027.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1313 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1313

  To reauthorize the National Flood Insurance Program, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2017

Mr. Cassidy (for himself, Mrs. Gillibrand, and Mrs. Capito) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To reauthorize the National Flood Insurance Program, 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 ``Flood Insurance Affordability and 
Sustainability Act of 2017''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Extension of national flood insurance program.
  TITLE I--ENHANCING THE SOLVENCY AND SUSTAINABILITY OF THE NATIONAL 
                        FLOOD INSURANCE PROGRAM

Sec. 101. Risk transfer.
Sec. 102. Expanded flood insurance participation study.
  TITLE II--ENHANCING FLOOD INSURANCE AFFORDABILITY AND ACCESSIBILITY

Sec. 201. Use of premium surcharges.
Sec. 202. Disclosure with respect to the affordability standard.
Sec. 203. Flood risk disclosure.
Sec. 204. Increased cost of compliance.
Sec. 205. Property risk data.
Sec. 206. Mitigation provisions.
Sec. 207. Home structure values.
Sec. 208. Affordability vouchers.
Sec. 209. Coverage limits.
Sec. 210. Monthly installment payment of premiums.
                 TITLE III--AGREED VALUE PILOT PROGRAM

Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Agreed Value Flood Protection Pilot Program.
Sec. 304. Use of agreed value flood protection to satisfy requirement 
                            to purchase flood insurance to receive a 
                            mortgage loan.
Sec. 305. Agreed Value Flood Protection Program Reserve Fund.
Sec. 306. Rule of construction.
    TITLE IV--PROVIDING PRIVATE MARKET ACCESS, ACCOUNTABILITY, AND 
                              COMPETITION

Sec. 401. Use of private flood insurance to satisfy mandatory purchase 
                            requirement.
Sec. 402. Provision of private flood insurance by write your own 
                            companies.
Sec. 403. Availability of NFIP claims data.
Sec. 404. Fees and surcharges for private flood insurance policies.
Sec. 405. Write Your Own Risk Sharing Pilot Program.
       TITLE V--MODERNIZING FLOOD MAPPING AND FLOOD RISK ACCURACY

Sec. 501. Reauthorization of National Flood Mapping Program.
Sec. 502. Mapping standards and guidelines for nongovernmental 
                            entities.
Sec. 503. Use of high-resolution mapping technology.
Sec. 504. Protected areas.
Sec. 505. Coastal flood models.
 TITLE VI--ENHANCING NATIONAL FLOOD INSURANCE PROGRAM TRANSPARENCY AND 
                             ACCOUNTABILITY

Sec. 601. Deadline for approval of claims.
Sec. 602. Flood insurance transparency, accountability, and reform.
Sec. 603. Reports to Congress.

SEC. 3. DEFINITIONS.

    (a) Freestanding Definitions.--In this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the Federal Emergency Management Agency;
            (2) the terms ``Federal flood insurance'' and ``private 
        flood insurance'' have the meanings given those terms in 
        section 102(b)(7) of the Flood Disaster Protection Act of 1973 
        (42 U.S.C. 4012a(b)(7)), as amended by section 401(a)(1) of 
        this Act;
            (3) the term ``mandatory purchase requirement'' means the 
        requirement under subsections (a) and (b) of section 102 of the 
        Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a), as 
        amended by section 401 of this Act, to have flood insurance 
        coverage;
            (4) 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.);
            (5) the term ``repetitive loss structure'' has the meaning 
        given the term in section 1370(a) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4121(a));
            (6) the term ``severe repetitive loss structure'' has the 
        meaning given the term in section 1366(h) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4104c(h));
            (7) the term ``Standard Flood Insurance Policy'' means the 
        Standard Flood Insurance Policy set forth in appendix A to part 
        61 of title 44, Code of Federal Regulations (or any successor 
        regulation);
            (8) the term ``target housing'' means a house structure 
        that--
                    (A) is in an area that has been identified by the 
                Administrator as an area having special flood hazards; 
                or
                    (B) has incurred flood damage;
            (9) the term ``Write Your Own company'' means a private 
        property insurance company that participates in the Write Your 
        Own Program; and
            (10) the term ``Write Your Own Program'' means the program 
        under which the Federal Emergency Management Agency enters into 
        a standard arrangement with private property insurance 
        companies to--
                    (A) sell contracts for Federal flood insurance 
                under their own business lines of insurance; and
                    (B) adjust and pay claims arising under the 
                contracts described in subparagraph (A).
    (b) National Flood Insurance Act.--Section 1370(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) is amended--
            (1) in paragraph (14), by striking ``and'' at the end;
            (2) in paragraph (15), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(16) the term `claim report' means a report created for 
        the purpose of investigating, adjusting, or processing a claim 
        under the national flood insurance program, including such 
        reports produced by adjusters, engineers, surveyors, salvors, 
        architects, and certified public accountants;
            ``(17) the term `private flood insurance' has the meaning 
        given the term in section 102(b) of the Flood Disaster 
        Protection Act of 1973 (42 U.S.C. 4012a(b));
            ``(18) the term `Write Your Own company' means a private 
        property insurance company that participates in the Write Your 
        Own Program; and
            ``(19) the term `Write Your Own Program' means the program 
        under which the Federal Emergency Management Agency enters into 
        a standard arrangement with private property insurance 
        companies to--
                    ``(A) sell contracts for Federal flood insurance 
                under their own business lines of insurance; and
                    ``(B) adjust and pay claims arising under the 
                contracts described in subparagraph (A).''.
    (c) Technical and Conforming Amendment.--Section 100202(a) of the 
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004(a)) 
is amended by striking paragraph (5) and inserting the following:
            ``(5) Write your own program.--The term `Write Your Own 
        Program' means the program under which the Federal Emergency 
        Management Agency enters into a standard arrangement with 
        private property insurance companies to--
                    ``(A) sell contracts for Federal flood insurance 
                under their own business lines of insurance; and
                    ``(B) adjust and pay claims arising under the 
                contracts described in subparagraph (A).''.

SEC. 4. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Financing.--Section 1309(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4016(a)) is amended, in the first sentence, by 
striking ``September 30, 2017'' and inserting ``September 30, 2027''.
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2017'' and inserting ``September 30, 2027''.

  TITLE I--ENHANCING THE SOLVENCY AND SUSTAINABILITY OF THE NATIONAL 
                        FLOOD INSURANCE PROGRAM

SEC. 101. RISK TRANSFER.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by striking subsection (e) and inserting the 
following:
    ``(e) Risk Transfer.--
            ``(1) In general.--The Administrator shall annually 
        transfer a portion of the risk associated with the flood 
        insurance program to the private reinsurance or capital 
        markets--
                    ``(A) if the Administrator has determined that the 
                rates and terms of the transfer are reasonable and 
                appropriate; and
                    ``(B) in an amount that is sufficient to--
                            ``(i) maintain the ability of the program 
                        to pay claims; and
                            ``(ii) limit the exposure of the program to 
                        potential catastrophic losses from extreme 
                        events.
            ``(2) Forms of transfer.--In carrying out paragraph (1), 
        the Administrator shall consider all forms of risk transfer, 
        including traditional reinsurance, catastrophe bonds, 
        collateralized reinsurance, resilience bonds, and other 
        insurance-linked securities, in order to--
                    ``(A) maximize pricing competition and the 
                diversity of sources of capital; and
                    ``(B) secure the best value for the flood insurance 
                program.''.

SEC. 102. EXPANDED FLOOD INSURANCE PARTICIPATION STUDY.

    (a) In General.--The Administrator, in coordination with the 
National Association of Insurance Commissioners, shall conduct a study 
that proposes to address, through programmatic and regulatory changes, 
how to increase participation in flood insurance coverage, including 
flood insurance purchased under the National Flood Insurance Program 
and private flood insurance.
    (b) Options.--In conducting the study under subsection (a), the 
Administrator shall consider the following options:
            (1) Expanding participation in flood insurance coverage, 
        beyond areas having special flood hazards, to areas of moderate 
        or minimal flood hazard risk.
            (2) Automatically enrolling consumers in flood insurance 
        while providing consumers the opportunity to decline 
        enrollment.
            (3) Bundled flood insurance coverage that diversifies risk 
        across all or multiple-peril forms.
    (c) Report.--Not later than 18 months after the date of enactment 
of this Act, the Administrator shall submit a report on the study 
conducted under subsection (a) to--
            (1) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate;
            (2) the Committee on Appropriations of the Senate;
            (3) the Committee on Financial Services of the House of 
        Representatives; and
            (4) the Committee on Appropriations of the House of 
        Representatives.

  TITLE II--ENHANCING FLOOD INSURANCE AFFORDABILITY AND ACCESSIBILITY

SEC. 201. USE OF PREMIUM SURCHARGES.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended--
            (1) in section 1308A (42 U.S.C. 4015a)--
                    (A) by redesignating subsection (c) as subsection 
                (d);
                    (B) by inserting after subsection (b) the 
                following:
    ``(c) Use of Surcharges.--The Administrator shall use any surcharge 
imposed and collected under subsection (a) to help fund flood 
mitigation programs, including the program established under section 
1366.''; and
                    (C) in subsection (d), as so redesignated, by 
                striking ``Subsections (a) and (b)'' and inserting 
                ``Subsections (a) through (c)''; and
            (2) in section 1310A(c) (42 U.S.C. 4017A(c)), by striking 
        paragraph (4).

SEC. 202. DISCLOSURE WITH RESPECT TO THE AFFORDABILITY STANDARD.

    Section 1308(j) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(j)) is amended, in the second sentence, by inserting ``and 
shall include in the report the number of those exceptions as of the 
date on which the Administrator submits the report and the location of 
each policyholder insured under those exceptions, organized by county 
and State'' after ``of the Senate''.

SEC. 203. FLOOD RISK DISCLOSURE.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Administrator shall promulgate regulations for the 
disclosure of flood risk hazards with respect to any residential or 
commercial property that is offered for sale or lease.
    (b) Requirements.--The regulations promulgated under subsection (a) 
shall require that, before a purchaser or lessee is obligated under any 
contract to purchase or lease a property, the seller or lessor, as 
applicable, shall--
            (1) provide the purchaser or lessee with a flood risk 
        information pamphlet produced by the Administrator;
            (2) disclose to the purchaser or lessee the available flood 
        risk profile of the property, including--
                    (A) information available to the seller or lessor 
                regarding any past--
                            (i) flood damage to the property; or
                            (ii) claim for loss with respect to the 
                        property under--
                                    (I) the National Flood Insurance 
                                Program; or
                                    (II) private flood insurance;
                    (B) information known to the seller or lessor 
                regarding any designation of the property as--
                            (i) a repetitive loss structure; or
                            (ii) a severe repetitive loss structure;
                    (C) any elevation certificate obtained with respect 
                to the property that is available to the seller or 
                lessor; and
                    (D) any requirement that the property be covered by 
                flood insurance because the property owner, on the date 
                on which the property is sold or leased, or a previous 
                owner, obtained any form of disaster assistance under 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5121 et seq.); and
            (3) establish a 10-day period (or a period of a different 
        length of time if mutually agreed upon by the parties) during 
        which the purchaser or lessor may review options for managing 
        or mitigating flood risk with respect to the property.
    (c) Compliance Assurance.--The regulations promulgated under 
subsection (a) shall require that, when a seller or lessor has entered 
into a contract with an agent to sell or lease a unit of target 
housing, the agent shall, on behalf of the seller or lessor, ensure 
compliance with this section.

SEC. 204. INCREASED COST OF COMPLIANCE.

    (a) Increase in Limitation on Liability.--Not later than 180 days 
after the date of enactment of this Act, the Administrator shall amend 
the Standard Flood Insurance Policy to--
            (1) increase the limitation on liability relating to 
        ``Coverage D--Increased Cost of Compliance'' from $30,000 to 
        $75,000; and
            (2) provide that 50 percent of the amount described in 
        paragraph (1) shall be available to the insured without regard 
        to whether making that amount available to the insured would 
        exceed the overall policy limit of the insured.
    (b) Premiums; Coverage Limits.--Section 1304(b) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
            (1) in paragraph (3), by striking ``compliance with the 
        land use and control measures.'' and inserting ``the 
        implementation of such measures; and'';
            (2) in paragraph (4), by redesignating subparagraphs (A) 
        through (D) as clauses (i) through (iv), respectively, and 
        adjusting the margins accordingly;
            (3) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and adjusting the 
        margins accordingly;
            (4) in the matter preceding subparagraph (A), as so 
        redesignated, by striking ``The national'' and inserting the 
        following:
            ``(1) In general.--The national''; and
            (5) by striking the flush text following paragraph 
        (1)(D)(iv), as so redesignated, and inserting the following:
            ``(2) Premiums.--The Administrator shall charge a premium 
        on each insured of not more than $75 per policy to provide cost 
        of compliance coverage in accordance with the provisions of 
        this subsection.
            ``(3) Coverage limits.--Any amount of coverage that is 
        provided under this subsection with respect to a property is in 
        addition to, and shall not be considered for the purposes of, 
        any limitation on coverage that is applicable to the property 
        under section 1306(b).''.

SEC. 205. PROPERTY RISK DATA.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by adding at the end the following:

``SEC. 1326. PREMIUM CREDIT FOR SUBMITTING PROPERTY RISK DATA.

    ``(a) In General.--Subject to subsection (b), the Administrator may 
offer a policyholder under the national flood insurance program a 
premium credit of not more than $500 if the policyholder submits data 
and information that is necessary for the Administrator to determine 
the level of risk of flood with respect to the property covered by the 
policy as of the date on which the policyholder submits the data and 
information to the Administrator.
    ``(b) Limitation.--The Administrator may offer a premium credit 
under subsection (a) only once with respect to any building.''.

SEC. 206. MITIGATION PROVISIONS.

    (a) Mitigation Strategies.--Section 1361(d)(1) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking ``and'' at the end; 
        and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) with respect to buildings in dense urban 
                environments, methods that can be deployed on a block 
                or neighborhood scale; and
                    ``(D) elevation of mechanical systems; and''.
    (b) Mitigation Credit.--Section 1308(k) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
            (1) by striking ``shall take into account'' and inserting 
        ``shall--
            ``(1) take into account'';
            (2) in paragraph (1), as so designated, by striking the 
        period at the end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(2) offer a reduction of the risk premium rate charged to 
        a policyholder in an amount that is not less than 10 percent of 
        that rate if the policyholder implements any mitigation method 
        described in paragraph (1).''.
    (c) Coverage for Cooperatives.--
            (1) In general.--Section 1306 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at 
        the end the following:
    ``(e) Cooperatives.--
            ``(1) Definition.--In this subsection, the term 
        `cooperative building' has the meaning given the term in 
        section 1312(d).
            ``(2) Equal treatment with condominiums.--Notwithstanding 
        any other provision of law, an owner of a share of a 
        cooperative building shall be eligible to purchase flood 
        insurance coverage under the national flood insurance program 
        on the same terms as a condominium owner.''.
            (2) Payment of claims.--Section 1312 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4019) is amended--
                    (A) in subsection (c)--
                            (i) in the subsection heading, by inserting 
                        ``and Cooperative'' after ``Condominium'';
                            (ii) by inserting ``or owners of a share of 
                        a cooperative building'' after ``condominium 
                        owners''; and
                            (iii) by inserting ``or cooperative 
                        association'' after ``condominium association'' 
                        each place that term appears; and
                    (B) by adding at the end the following:
    ``(d) Definitions.--In this section, the terms `cooperative 
association' and `cooperative building' have the meanings given the 
terms by the Administrator.''.

SEC. 207. HOME STRUCTURE VALUES.

    (a) Study and Report.--
            (1) Study.--The Administrator shall conduct a study, the 
        purpose of which shall be to--
                    (A) evaluate best practices in the insurance 
                industry for risk rating and classification, including 
                practices that consider replacement cost value when 
                estimating premium rates; and
                    (B) with respect to the estimates made by the 
                Administrator under section 1307(a)(1) of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)), as 
                in effect on the day before the date of enactment of 
                this Act--
                            (i) assess options, methods, and strategies 
                        for including replacement cost value in the 
                        estimates;
                            (ii) identify recommendations for including 
                        replacement cost value in the estimates;
                            (iii) identify an appropriate methodology 
                        by which replacement cost value could be 
                        incorporated into the estimates; and
                            (iv) develop a feasible implementation plan 
                        and projected timeline for including 
                        replacement cost value in the estimates.
            (2) Report.--Not later than 18 months after the date of 
        enactment of this Act, the Administrator shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report that contains--
                    (A) the results of the study conducted under 
                paragraph (1) (referred to in this paragraph as ``the 
                study'');
                    (B) an analysis of the recommendations made by the 
                study and the impacts that those recommendations would 
                have on the National Flood Insurance Program, including 
                cost considerations;
                    (C) a description of actions taken by the 
                Administrator to implement the recommendations made by 
                the study;
                    (D) a list of any recommendations made by the study 
                that, as of the date on which the Administrator submits 
                the report, the Administrator has deferred or upon 
                which the Administrator has not acted; and
                    (E) an explanatory statement with respect to each 
                recommendation described in subparagraph (D).
    (b) Implementation.--
            (1) In general.--Section 1307(a)(1)(A) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is 
        amended--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking ``, and'' and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) the replacement cost value of an 
                        insured structure when determining 
                        underinsurance loading factors, consistent with 
                        the requirements of section 1308(e) and taking 
                        into account the results of the study conducted 
                        under section 206(a)(1) of the Flood Insurance 
                        Affordability and Sustainability Act of 2017; 
                        and''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date that is 1 year after the date on 
        which the Administrator submits the report under subsection 
        (a)(2).

SEC. 208. AFFORDABILITY VOUCHERS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.), as amended by section 205 of this Act, is further 
amended by adding at the end the following:

``SEC. 1327. AFFORDABILITY VOUCHERS.

    ``(a) Definitions.--In this section--
            ``(1) the term `area median income' means, with respect to 
        an area, the area median income for the area, as defined for 
        the applicable year by the Secretary of Housing and Urban 
        Development;
            ``(2) the term `eligible household' means an owner-occupied 
        household--
                    ``(A) that has a total household income that is 
                less than 165 percent of the area median income for the 
                area in which the household is located;
                    ``(B) for which the cost of flood insurance 
                premiums, surcharges, and fees in a year would result 
                in excess costs for the household for that year; and
                    ``(C) that--
                            ``(i) renews an existing flood insurance 
                        policy under the national flood insurance 
                        program for building coverage for a property 
                        that is in an area having special flood 
                        hazards; or
                            ``(ii) purchases a flood insurance policy 
                        under the national flood insurance program for 
                        building coverage for an existing structure 
                        that was owned and occupied by the household 
                        before the date on which the building was 
                        determined to be located in an area having 
                        special flood hazards due to a revision of, or 
                        an update to, a floodplain area or flood risk 
                        zone that is identified, delineated, or 
                        established by the Administrator;
            ``(3) the term `excess costs' means--
                    ``(A) for a household that has a total household 
                income that is greater than 80 percent of the area 
                median income for the area in which the household is 
                located, the amount by which--
                            ``(i) the sum of--
                                    ``(I) the total amount of premiums, 
                                surcharges, and fees paid by a 
                                household in a year with respect to a 
                                flood insurance policy provided under 
                                this title; and
                                    ``(II) the housing expenses 
                                incurred by the household in that year; 
                                exceeds
                            ``(ii) 40 percent of the total household 
                        income for the household in that year; and
                    ``(B) for a household that has a total household 
                income that is not greater than 80 percent of the area 
                median income for the area in which the household is 
                located, the amount by which the flood insurance 
                premiums, surcharges, and fees for a flood insurance 
                policy provided under this title in a year for the 
                household exceeds 1 percent of the coverage limit of 
                that flood insurance policy under section 1306(b); and
            ``(4) the term `housing expenses' means, with respect to a 
        household, the total amount that the household spends in a year 
        on--
                    ``(A) mortgage payments;
                    ``(B) property taxes; and
                    ``(C) homeowners insurance.
    ``(b) Vouchers.--The Administrator shall, when the Administrator 
determines appropriate, provide a voucher to an eligible household in 
accordance with subsection (c) to use toward the payment of flood 
insurance premiums, surcharges, and fees incurred by the household in 
the year for which the voucher is provided.
    ``(c) Calculation.--
            ``(1) In general.--Subject to paragraph (2), the 
        Administrator shall provide a voucher to an eligible household 
        as follows:
                    ``(A) An eligible household that has a total 
                household income that is not greater than 80 percent of 
                area median income shall receive a voucher in an amount 
                that is equal to 100 percent of the excess costs 
                incurred by the household for the year preceding the 
                year in which the eligible household receives the 
                voucher.
                    ``(B) An eligible household that has a total 
                household income that is greater than 80 percent of 
                area median income and not greater than 120 percent of 
                area median income shall receive a voucher in an amount 
                that is equal to 80 percent of the excess costs 
                incurred by the household for the year preceding the 
                year in which the eligible household receives the 
                voucher.
                    ``(C) An eligible household that has a total 
                household income that is greater than 120 percent of 
                area median income and less than 165 percent of area 
                median income shall receive a voucher in an amount that 
                is equal to 60 percent of the excess costs for the year 
                preceding the year in which the eligible household 
                receives the voucher.
            ``(2) Limitation.--The Administrator may not provide a 
        voucher to an eligible household in an amount that is more than 
        the total amount that the eligible household paid in premiums, 
        surcharges, and fees for a flood insurance policy provided 
        under this title during the year preceding the year in which 
        the voucher is provided.''.

SEC. 209. COVERAGE LIMITS.

    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``In addition to any other terms and 
                conditions under subsection (a), such regulations'' and 
                inserting ``The Administrator'';
                    (B) in paragraph (2)--
                            (i) by striking ``shall be made'' and 
                        inserting ``may be made''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``the baseline amount'';
                    (C) in paragraph (3)--
                            (i) by striking ``shall be made'' and 
                        inserting ``may be made''; and
                            (ii) by striking ``$100,000'' and inserting 
                        ``50 percent of the baseline amount''; and
                    (D) in paragraph (4)--
                            (i) by striking ``shall be made'' each 
                        place that term appears and inserting ``may be 
                        made''; and
                            (ii) by striking ``$500,000'' each place 
                        that term appears and inserting ``200 percent 
                        of the baseline amount''; and
            (2) by adding at the end the following:
    ``(e) Definition.--
            ``(1) In general.--Subject to paragraph (2), in this 
        section, the term `baseline amount', with respect to a 
        property, means the maximum original principal obligation of a 
        conventional mortgage that may be purchased by the Federal 
        National Mortgage Association in the area in which the property 
        as located, as established under section 302(b)(2) of the 
        Federal National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)).
            ``(2) Clarification.--If, after the date of enactment of 
        this subsection, the baseline amount, as defined in paragraph 
        (1), decreases as compared with the baseline amount in effect 
        on the day before the date of enactment of this subsection, the 
        baseline amount that was in effect on the day before the date 
        of enactment of this subsection shall be deemed to be the 
        baseline amount for the purposes of paragraphs (2), (3), and 
        (4) of subsection (b).''.
    (b) Authority of Administrator To Sell Policies.--The Administrator 
may sell a policy for flood insurance under the National Flood 
Insurance Program that meets the requirements of paragraphs (2), (3), 
and (4) of section 1306(b) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(b)), as amended by subsection (a), without regard to--
            (1) section 61.6 of title 44, Code of Federal Regulations, 
        as in effect on the day before the date of enactment of this 
        Act; or
            (2) any other provision of law.

SEC. 210. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.

    Section 1308(g) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(g)) is amended--
            (1) by striking ``With respect to'' and inserting the 
        following:
            ``(1) Annual or monthly option.--Subject to paragraph (2), 
        with respect to''; and
            (2) by adding at the end the following:
            ``(2) Monthly installment.--With respect to a policyholder 
        that opts under paragraph (1) to pay premiums on a monthly 
        basis, the Administrator may charge the policyholder an annual 
        fee of not more than $15.
            ``(3) Exemption from rule making; pilot program.--During 
        the period beginning on the date of enactment of this paragraph 
        and ending on the date on which the Administrator promulgates 
        regulations carrying out paragraph (1), the Administrator may, 
        notwithstanding any other provision of law--
                    ``(A) adopt policies and procedures to carry out 
                that paragraph without--
                            ``(i) undergoing notice and comment rule 
                        making under section 553 of title 5, United 
                        States Code; or
                            ``(ii) conducting regulatory analyses 
                        otherwise required by statute, regulation, or 
                        Executive order; or
                    ``(B) carry out that paragraph by establishing a 
                pilot program that gradually implements the 
                requirements of that paragraph.''.

                 TITLE III--AGREED VALUE PILOT PROGRAM

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Agreed Value Flood Protection 
Program Act of 2017''.

SEC. 302. DEFINITIONS.

    In this title--
            (1) the term ``agreed value flood protection policy'' means 
        a flood protection policy providing that, if a flood occurs, 
        the National Flood Insurance Program will make payments 
        according to agreed schedules of payments determined by flood 
        height in covered structures participating in the Program;
            (2) the term ``catastrophic loss year'' means a year in 
        which the combined ratio is not less than 130 percent;
            (3) the term ``combined ratio'' means the quotient obtained 
        when the sum obtained by adding the losses paid under the 
        National Flood Insurance Program in a year and the expenses of 
        the National Flood Insurance Program in that year is divided by 
        the total amount of premiums collected under the National Flood 
        Insurance Program in that year;
            (4) the term ``covered agent'' means any insurance agent, 
        producer, or intermediary licensed by a State;
            (5) the term ``covered structure'' means real property 
        eligible for flood insurance coverage under the National Flood 
        Insurance Program;
            (6) the term ``eligible participant'' means a person that 
        has demonstrated ownership of a covered structure;
            (7) the term ``flood height'' means the distance between 
        the lowest adjacent grade and the high water mark of a flood on 
        the first floor of a covered structure, as measured or as 
        determined by other appropriate methods;
            (8) the term ``Program'' means the Agreed Value Flood 
        Protection Program established under section 303(a); and
            (9) the term ``Reserve Fund'' means the Agreed Value Flood 
        Protection Program Reserve Fund established under section 
        305(a).

SEC. 303. AGREED VALUE FLOOD PROTECTION PILOT PROGRAM.

    (a) In General.--The Administrator may establish and carry out an 
optional Agreed Value Flood Protection Pilot Program for the 8-year 
period beginning on the date of enactment of this Act, or during the 
period beginning on the date of enactment of this Act and ending on the 
date on which authorization for the National Flood Insurance Program 
expires, whichever is shorter, under which--
            (1) an eligible participant may purchase an agreed value 
        flood protection policy to protect against losses resulting 
        from physical damage to, or loss of, a covered structure, 
        including any personal property related thereto, owned by the 
        eligible participant arising from a flood occurring in the 
        United States during the period for which the policy is in 
        force;
            (2) a covered agent may issue an agreed value flood 
        protection policy to an eligible participant; and
            (3) an eligible participant may not be denied the 
        opportunity to purchase an agreed value flood protection policy 
        solely on the basis of the geographic location of the eligible 
        participant.
    (b) Eligibility.--In order to purchase an agreed value flood 
protection policy, an eligible participant shall demonstrate that the 
value of the covered structure to be covered under the policy, 
including any contents within the covered structure, is not less than 
the coverage amount of the policy.
    (c) Issuance.--
            (1) In general.--Except as provided in paragraph (2), any 
        covered agent may issue an agreed value flood protection policy 
        to an eligible participant under the Program.
            (2) Exception.--A covered agent may not issue a policy 
        under paragraph (1) if the structure with respect to which the 
        policy would apply is insured under the National Flood 
        Insurance Program.
    (d) Brochure.--
            (1) In general.--The Administrator shall publish a brochure 
        that compares the premium rates charged under the National 
        Flood Insurance Program with the premium rates charged under 
        the Program.
            (2) Covered agents.--
                    (A) In general.--A covered agent shall explain to 
                an eligible participant the risks associated with an 
                agreed value flood protection policy before the 
                eligible participant purchases a policy.
                    (B) Delivery.--If a covered agent delivers the 
                brochure published under paragraph (1) to an eligible 
                participant before the eligible participant purchases 
                an agreed value flood protection policy, the delivery 
                shall constitute prima facie evidence that the covered 
                agent has satisfied the requirement under subparagraph 
                (A).
    (e) Report.--Not later than 1 year after the date on which the 
Program ends, the Administrator shall submit to Congress a report--
            (1) containing data that was collected during the 
        administration of the Program relating to underinsurance 
        factors, claims statistics, claims disputes (including how such 
        disputes were adjudicated), and actuarial rate reviews; and
            (2) that compares premium rates charged under the Program 
        with comparable premium rates charged under the standard flood 
        insurance policy, controlling for comparable risk factors.

SEC. 304. USE OF AGREED VALUE FLOOD PROTECTION TO SATISFY REQUIREMENT 
              TO PURCHASE FLOOD INSURANCE TO RECEIVE A MORTGAGE LOAN.

    An agreed value flood protection policy shall satisfy the mandatory 
purchase requirement.

SEC. 305. AGREED VALUE FLOOD PROTECTION PROGRAM RESERVE FUND.

    (a) Establishment of an Agreed Value Flood Protection Reserve 
Fund.--In carrying out the Program, the Administrator shall establish 
in the Treasury of the United States an Agreed Value Flood Protection 
Program Reserve Fund, which shall be--
            (1) separate from any other accounts or funds available to 
        the Administrator; and
            (2) available for meeting the expected future obligations 
        of the Program, including--
                    (A) the payment of claims during catastrophic loss 
                years; and
                    (B) the repayment of amounts outstanding under any 
                note or other obligation issued by the Administrator 
                under section 1309(a) of the National Flood Insurance 
                Act of 1968 (42 U.S.C. 4016(a)).
    (b) Reserve Ratio.--Subject to the phase-in requirements under 
subsection (d), the Reserve Fund shall maintain a balance that, 
together with any risk financing covering the Program, is an amount 
that is equal to--
            (1) 1.5 percent of the sum of the total potential loss 
        exposure of all outstanding agreed value flood protection 
        policies in force during the prior fiscal year; or
            (2) a higher percentage of the sum described in paragraph 
        (1) that the Administrator determines to be appropriate, taking 
        into consideration any circumstance that may raise a 
        significant risk of substantial future losses to the Reserve 
        Fund.
    (c) Maintenance of Reserve Ratio.--
            (1) In general.--The Administrator may establish, increase, 
        or decrease the amount of aggregate annual policy charges to be 
        collected for any fiscal year that are necessary in order to--
                    (A) maintain the amount required under subsection 
                (b); and
                    (B) if the balance of the Reserve Fund is an amount 
                that is less than the amount required under subsection 
                (b), obtain the amount required under subsection (b).
            (2) Considerations.--In exercising the authority under 
        paragraph (1), the Administrator shall consider--
                    (A) the expected operating expenses of the Reserve 
                Fund;
                    (B) the covered loss expenditures under the 
                Program;
                    (C) any investment income generated under the 
                Program; and
                    (D) any other factor that the Administrator 
                determines appropriate.
            (3) Limitation.--Notwithstanding any other provision of law 
        or any agreement entered into by the Administrator, the 
        Administrator shall ensure that all amounts attributable to the 
        establishment or increase of annual policy charges under 
        paragraph (1) are transferred to the Administrator for deposit 
        into the Reserve Fund to be available for meeting the expected 
        future obligations of the Program, as described in subsection 
        (a)(2).
    (d) Phase-In Requirements.--The phase-in requirements under this 
subsection are as follows:
            (1) In general.--Beginning in fiscal year 2018, and in each 
        successive fiscal year thereafter until the amount required 
        under subsection (b) is obtained, the Administrator shall 
        deposit in the Reserve Fund an amount that is not less than 10 
        percent of the amount required under subsection (b).
            (2) Amount satisfied.--Except as provided in paragraph (3), 
        beginning on the date on which the amount required under 
        subsection (b) is obtained, the Administrator shall not be 
        required to set aside any amounts for the Reserve Fund.
            (3) Exception.--If, at any time during any fiscal year 
        after the amount required under subsection (b) is obtained, the 
        amount in the Reserve Fund is less than the amount required 
        under subsection (b), the Administrator shall deposit in the 
        Reserve Fund during that fiscal year an amount that is not less 
        than the lesser of--
                    (A) the difference between the amount required 
                under subsection (b) and the amount in the Reserve 
                Fund; or
                    (B) 10 percent of the amount required under 
                subsection (b).
    (e) Limitation on Reserve Ratio.--If, in any fiscal year, the 
Administrator determines that the amount required under subsection (b) 
cannot be obtained, the Administrator shall submit to Congress a report 
that--
            (1) describes and details the specific concerns of the 
        Administrator regarding the consequences of that amount not 
        being obtained;
            (2) demonstrates how the consequences described in 
        paragraph (1) would harm the long-term financial soundness of 
        the Program; and
            (3) indicates the maximum attainable amount for that fiscal 
        year.
    (f) Investment.--The Secretary of the Treasury shall invest such 
amounts of the Reserve Fund as the Secretary determines advisable in 
obligations issued or guaranteed by the United States.

SEC. 306. RULE OF CONSTRUCTION.

    Nothing in this title may be construed to--
            (1) limit the National Flood Insurance Program, including 
        the ability of a person to purchase flood insurance under the 
        National Flood Insurance Program to satisfy the mandatory 
        purchase requirement; or
            (2) require a person to participate in the Program.

    TITLE IV--PROVIDING PRIVATE MARKET ACCESS, ACCOUNTABILITY, AND 
                              COMPETITION

SEC. 401. USE OF PRIVATE FLOOD INSURANCE TO SATISFY MANDATORY PURCHASE 
              REQUIREMENT.

    (a) In General.--
            (1) Mandatory purchase requirement.--
                    (A) Amount and term of coverage.--Section 102 of 
                the Flood Disaster Protection Act of 1973 (42 U.S.C. 
                4012a) is amended by striking ``Sec.  102. (a)'' and 
                all that follows through the end of subsection (a) and 
                inserting the following:
    ``Sec. 102. (a) Amount and Term of Coverage.--
            ``(1) In general.--Subject to paragraph (2), on and after 
        the date that is 60 days after the date of enactment of this 
        Act, no Federal officer or agency may approve any financial 
        assistance for acquisition or construction purposes for use in 
        any area that has been identified by the Administrator as an 
        area having special flood hazards and in which the sale of 
        flood insurance has been made available under the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), unless 
        the building or mobile home and any personal property to which 
        the financial assistance relates is covered by flood insurance.
            ``(2) Amount and term.--
                    ``(A) Amount generally.--The amount of flood 
                insurance required under paragraph (1)--
                            ``(i) in the case of Federal flood 
                        insurance, shall be not less than the lesser 
                        of--
                                    ``(I) 80 percent of the purchase 
                                price of the property;
                                    ``(II) the development or project 
                                cost of the building, mobile home, or 
                                personal property (less estimated land 
                                cost);
                                    ``(III) the maximum limit of 
                                Federal flood insurance coverage made 
                                available with respect to the 
                                particular type of property; or
                                    ``(IV) for multi-unit structures 
                                only, the outstanding principal balance 
                                of the loan; or
                            ``(ii) in the case of private flood 
                        insurance, shall be not less than the lesser 
                        of--
                                    ``(I) 80 percent of the purchase 
                                price of the property;
                                    ``(II) the development or project 
                                cost of the building, mobile home, or 
                                personal property (less estimated land 
                                cost);
                                    ``(III) the maximum limit of 
                                Federal flood insurance coverage made 
                                available with respect to the 
                                particular type of property; or
                                    ``(IV) for multi-unit structures 
                                only, the outstanding principal balance 
                                of the loan.
                    ``(B) Loans and insured and guaranteed loans.--If 
                the financial assistance described in paragraph (1) is 
                in the form of a loan or an insurance or guaranty of a 
                loan, flood insurance need not be required beyond the 
                term of the loan.
                    ``(C) Term generally.--The requirement of 
                maintaining flood insurance under paragraph (1) shall 
                apply during the life of the property, regardless of 
                transfer of ownership of the property.''.
                    (B) Mortgage loans.--Section 102(b) of the Flood 
                Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)) is 
                amended--
                            (i) by striking paragraphs (1) through (5) 
                        and inserting the following:
            ``(1) Regulated lending institutions.--
                    ``(A) In general.--Each Federal entity for lending 
                regulation (after consultation and coordination with 
                the Financial Institutions Examination Council 
                established under section 1004 of the Federal Financial 
                Institutions Examination Council Act of 1974 (12 U.S.C. 
                3303)) shall by regulation direct regulated lending 
                institutions not to make, increase, extend, or renew 
                any loan secured by improved real estate or a mobile 
                home located or to be located in an area that has been 
                identified by the Administrator as an area having 
                special flood hazards and in which flood insurance has 
                been made available under the National Flood Insurance 
                Act of 1968 (42 U.S.C. 4001 et seq.), unless the 
                building or mobile home and any personal property 
                securing the loan is covered for the term of the loan 
                by flood insurance in an amount described in 
                subparagraph (B).
                    ``(B) Amount.--The amount of flood insurance 
                required under subparagraph (A)--
                            ``(i) in the case of Federal flood 
                        insurance, shall be not less than the lesser 
                        of--
                                    ``(I) 80 percent of the purchase 
                                price of the property;
                                    ``(II) the maximum limit of Federal 
                                flood insurance coverage made available 
                                with respect to the particular type of 
                                property; or
                                    ``(III) for multi-unit structures 
                                only, the outstanding principal balance 
                                of the loan; or
                            ``(ii) in the case of private flood 
                        insurance, shall be not less than the lesser 
                        of--
                                    ``(I) 80 percent of the purchase 
                                price of the property;
                                    ``(II) the maximum limit of Federal 
                                flood insurance coverage made available 
                                with respect to the particular type of 
                                property; or
                                    ``(III) for multi-unit structures 
                                only, the outstanding principal balance 
                                of the loan.
            ``(2) Federal agency lenders.--
                    ``(A) In general.--
                            ``(i) Insurance required.--A Federal agency 
                        lender may not make, increase, extend, or renew 
                        any loan secured by improved real estate or a 
                        mobile home located or to be located in an area 
                        that has been identified by the Administrator 
                        as an area having special flood hazards and in 
                        which flood insurance has been made available 
                        under the National Flood Insurance Act of 1968 
                        (42 U.S.C. 4001 et seq.), unless the building 
                        or mobile home and any personal property 
                        securing the loan is covered for the term of 
                        the loan by flood insurance in accordance with 
                        paragraph (1).
                            ``(ii) Regulations.--
                                    ``(I) In general.--Each Federal 
                                agency lender may issue any regulations 
                                necessary to carry out this paragraph.
                                    ``(II) Consistency.--Any 
                                regulations issued under subclause (I) 
                                shall be consistent with and 
                                substantially identical to any 
                                regulations issued under paragraph (1).
                    ``(B) Requirement to accept flood insurance.--Each 
                Federal agency lender shall accept flood insurance as 
                satisfaction of the flood insurance coverage 
                requirement under subparagraph (A)(i) if the flood 
                insurance coverage meets the requirements for coverage 
                under that subparagraph.
            ``(3) Government-sponsored enterprises for housing.--
                    ``(A) Implementation of procedures.--
                            ``(i) Requirement.--The Federal National 
                        Mortgage Association and the Federal Home Loan 
                        Mortgage Corporation shall implement procedures 
                        reasonably designed to ensure that, for any 
                        loan described in clause (ii) that is purchased 
                        or guaranteed by such entity, the building or 
                        mobile home and any personal property securing 
                        the loan is covered for the term of the loan by 
                        flood insurance in the amount provided in 
                        paragraph (1)(B).
                            ``(ii) Secured loan.--A loan described in 
                        this clause is a loan secured by improved real 
                        estate or a mobile home located in an area--
                                    ``(I) that has been identified, at 
                                the time of the origination of the loan 
                                or at any time during the term of the 
                                loan, by the Administrator as an area 
                                having special flood hazards; and
                                    ``(II) in which flood insurance is 
                                made available under the National Flood 
                                Insurance Act of 1968 (42 U.S.C. 4001 
                                et seq.).
                    ``(B) Acceptable insurance.--Subject to 
                subparagraph (C), the Federal National Mortgage 
                Association and the Federal Home Loan Mortgage 
                Corporation shall accept flood insurance as 
                satisfaction of the flood insurance coverage 
                requirement under paragraph (1) if the flood insurance 
                coverage provided meets the requirements for coverage 
                under that paragraph and any requirements established 
                by the Federal National Mortgage Association or the 
                Federal Home Loan Corporation, respectively, relating 
                to the financial strength of private insurance 
                companies from which the Federal National Mortgage 
                Association or the Federal Home Loan Mortgage 
                Corporation will accept private flood insurance.
                    ``(C) Relation to state law.--A requirement 
                described in subparagraph (B) may not affect or 
                conflict with any State law, regulation, or procedure 
                concerning the regulation of the business of insurance.
            ``(4) Applicability.--
                    ``(A) Existing coverage.--Except as provided in 
                subparagraph (B), paragraph (1) shall apply on the date 
                of enactment of the Riegle Community Development and 
                Regulatory Improvement Act of 1994 (12 U.S.C. 4701 et 
                seq.).
                    ``(B) New coverage.--Paragraphs (2) and (3) shall 
                apply only with respect to any loan made, increased, 
                extended, or renewed after the expiration of the 1-year 
                period beginning on the date of enactment of the Riegle 
                Community Development and Regulatory Improvement Act of 
                1994 (12 U.S.C. 4701 et seq.). Paragraph (1) shall 
                apply with respect to any loan made, increased, 
                extended, or renewed by any lender supervised by the 
                Farm Credit Administration only after the expiration of 
                the period under this subparagraph.
                    ``(C) Continued effect of regulations.--
                Notwithstanding any other provision of this subsection, 
                the regulations to carry out paragraph (1), as in 
                effect immediately before the date of enactment of the 
                Riegle Community Development and Regulatory Improvement 
                Act of 1994 (12 U.S.C. 4701 et seq.), shall continue to 
                apply until the regulations issued to carry out 
                paragraph (1), as amended by section 522(a) of such 
                Act, take effect.
            ``(5) Rule of construction.--
                    ``(A) In general.--Subject to subparagraph (B), 
                nothing in this subsection shall be construed to 
                supersede or limit the authority of a Federal entity 
                for lending regulation, the Federal Housing Finance 
                Agency, a Federal agency lender, the Federal National 
                Mortgage Association, or the Federal Home Loan Mortgage 
                Corporation to establish requirements relating to the 
                financial strength of private insurance companies from 
                which the entity or agency will accept private flood 
                insurance.
                    ``(B) Relation to state law.--A requirement 
                described in subparagraph (A) may not affect or 
                conflict with any State law, regulation, or procedure 
                concerning the regulation of the business of 
                insurance.''; and
                            (ii) by striking paragraph (7) and 
                        inserting the following:
            ``(7) Definitions.--In this section:
                    ``(A) Federal flood insurance.--The term `Federal 
                flood insurance' means an insurance policy made 
                available under the National Flood Insurance Act of 
                1968 (42 U.S.C. 4001 et seq.).
                    ``(B) Flood insurance.--The term `flood insurance' 
                means--
                            ``(i) Federal flood insurance; and
                            ``(ii) private flood insurance.
                    ``(C) Private flood insurance.--The term `private 
                flood insurance' means an insurance policy that--
                            ``(i) is issued by an insurance company 
                        that is--
                                    ``(I) licensed, admitted, or 
                                otherwise approved to engage in the 
                                business of insurance in the State in 
                                which the insured building is located, 
                                by the insurance regulator of that 
                                State; or
                                    ``(II) eligible as a nonadmitted 
                                insurer to provide insurance in the 
                                home State of the insured, in 
                                accordance with sections 521 through 
                                527 of the Nonadmitted and Reinsurance 
                                Reform Act of 2010 (15 U.S.C. 8201 
                                through 8206);
                            ``(ii) is issued by an insurance company 
                        that is not otherwise disapproved as a surplus 
                        lines insurer by the insurance regulator of the 
                        State in which the property to be insured is 
                        located; and
                            ``(iii) provides flood insurance coverage 
                        that complies with the laws and regulations of 
                        that State.
                    ``(D) State.--The term `State' means any State of 
                the United States, the District of Columbia, the 
                Commonwealth of Puerto Rico, Guam, the Northern Mariana 
                Islands, the Virgin Islands, and American Samoa.''.
            (2) Effect of private flood insurance coverage on 
        continuous coverage requirements.--Section 1308 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by 
        adding at the end the following:
    ``(n) Effect of Private Flood Insurance Coverage on Continuous 
Coverage Requirements.--For purposes of applying any statutory, 
regulatory, or administrative continuous coverage requirement, 
including under section 1307(g)(1), the Administrator shall consider 
any period during which a property was continuously covered by private 
flood insurance to be a period of continuous coverage.''.
    (b) Report on Level of Perceived Adverse Selection.--Not later than 
2 years after the date of enactment of this Act, the Administrator 
shall submit to Congress a report on the extent to which, of the 
properties that are required to satisfy the mandatory purchase 
requirement, the properties for which private flood insurance is 
purchased tend to be at a lower risk of flooding than the properties 
for which Federal flood insurance is purchased (commonly referred to as 
``adverse selection''), by detailing risk classifications of private 
flood insurance policies.

SEC. 402. PROVISION OF PRIVATE FLOOD INSURANCE BY WRITE YOUR OWN 
              COMPANIES.

    (a) Temporary Authority for Provision of Private Flood Insurance by 
Write Your Own Companies for Certain Properties.--During the first 2 
years beginning after the date of enactment of this Act, the 
Administrator may not prohibit a Write Your Own company from offering 
or selling private flood insurance outside of the Write Your Own 
Program for properties that are described in subparagraphs (A) through 
(D) of section 1307(a)(2) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4014(a)(2)).
    (b) Authority for Expanded Provision of Private Flood Insurance by 
Write Your Own Companies.--On and after January 1 of the third year 
beginning after the date of enactment of this Act, if the Administrator 
determines, based on the report required under subsection (d)(1) and 
any other independent data available, that the provision of private 
flood insurance by a Write Your Own company--
            (1) to properties in addition to the properties described 
        in subsection (a) will not adversely impact the ability of the 
        National Flood Insurance Program to maintain a diverse risk 
        pool, the Administrator may waive any remaining restriction, 
        under a Federal statute or regulation, on the ability of a 
        Write Your Own company to offer or sell private flood insurance 
        outside the Write Your Own Program, if the Administrator 
        promulgates regulations to ensure a diverse risk pool for Write 
        Your Own companies that are competing with the National Flood 
        Insurance Program; or
            (2) is a deterrent to the National Flood Insurance Program 
        maintaining a diverse risk pool of policies, the Administrator 
        may place further restrictions on the ability of a Write Your 
        Own company to offer or sell private flood insurance.
    (c) WYO Arrangement.--The Administrator shall amend article XIII of 
the WYO Company Financial Assistance/Subsidy Arrangement as necessary 
to implement subsections (a) and (b).
    (d) Reports.--
            (1) Initial report.--Not later than the last day of the 2-
        year period described in subsection (a), the Administrator 
        shall submit to Congress a report detailing the risk 
        classifications of properties for which private flood insurance 
        was sold and underwritten by Write Your Own companies during 
        that 2-year period.
            (2) Additional report.--Not later than 5 years after the 
        date on which the report is required to be submitted under 
        paragraph (1), the Administrator shall submit to Congress a 
        report detailing the risk classifications of properties for 
        which private flood insurance was sold and underwritten by 
        Write Your Own companies during that 5-year period.

SEC. 403. AVAILABILITY OF NFIP CLAIMS DATA.

    (a) Study Required.--
            (1) In general.--The Administrator shall study the 
        feasibility of selling or licensing the use of historical 
        structure-specific National Flood Insurance Program claims data 
        (referred to in this section as ``covered claims data'') to 
        nongovernmental entities.
            (2) Contents.--In conducting the study required under 
        paragraph (1), the Administrator shall, at a minimum--
                    (A) investigate one or more methods of providing 
                the most specific covered claims data possible while 
                reasonably protecting policyholder privacy;
                    (B) review existing means, as of the date of 
                enactment of this Act, by which the Federal Government 
                provides leases or licenses to private persons, and the 
                various regulations, terms, conditions, and guidance 
                employed;
                    (C) identify potential uses for covered claims 
                data, any known risks concerning those uses, and ways 
                to mitigate or eliminate the risks;
                    (D) identify mechanisms for determining the likely 
                market value for access to covered claims data; and
                    (E) recommend actions the Administrator could take, 
                if any, to prevent unintended consequences associated 
                with the sale or licensing for private insurance 
                purposes covered claims data.
    (b) Report by Administrator.--
            (1) Report required.--Not later than 1 year after the date 
        of enactment of this Act, the Administrator shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report that contains the results and 
        conclusions of the study conducted under subsection (a) 
        (referred to in this subsection as ``the study'').
            (2) Contents.--The report submitted under paragraph (1) 
        shall include--
                    (A) an analysis of--
                            (i) the recommendations of the study; and
                            (ii) the potential for covered claims data 
                        to increase the number of individuals insured 
                        against the peril of flood, to reduce the 
                        amount of debt the National Flood Insurance 
                        Program is required to service, or both;
                    (B) a description of actions taken by the 
                Administrator to implement any of the recommendations 
                of the study; and
                    (C) any recommendations of the study that, as of 
                the date on which the report is submitted, have been 
                deferred or not acted upon, together with an 
                explanatory statement.
    (c) Authorization To Sell or License Claims Data.--
            (1) Amendments.--
                    (A) In general.--Section 1313 of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4020) is amended--
                            (i) by striking ``The Administrator'' and 
                        inserting the following:
    ``(a) In General.--The Administrator''; and
                            (ii) by adding at the following:
    ``(b) Selling or Licensing of Claims Data.--
            ``(1) In general.--The Administrator may sell or license 
        the use of historical structure-specific claims data obtained 
        and maintained by the National Flood Insurance Program 
        (referred to in this subsection as `covered claims data') to 
        nongovernmental entities as the Administrator determines is 
        appropriate and in the public interest.
            ``(2) Rules, procedures.--The Administrator may adopt 
        rules, terms, conditions, policies, and procedures concerning--
                    ``(A) the selling or licensing of covered claims 
                data; and
                    ``(B) the use, protection, and maintenance of 
                covered claims data by nongovernmental entities.
            ``(3) Proceeds.--The Administrator shall deposit the 
        proceeds from selling or licensing covered claims data under 
        this subsection in the National Flood Insurance Fund.''.
                    (B) Funding.--Section 1310 of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4017) is amended--
                            (i) in subsection (a)--
                                    (I) in paragraph (7), by striking 
                                ``and'' at the end;
                                    (II) in paragraph (8), by striking 
                                the period at the end and inserting ``; 
                                and''; and
                                    (III) by adding at the end the 
                                following:
            ``(9) for carrying out section 1313.''; and
                            (ii) in subsection (b)--
                                    (I) in paragraph (5), by striking 
                                ``and'' at the end;
                                    (II) by redesignating paragraph (6) 
                                as paragraph (7); and
                                    (III) by inserting after paragraph 
                                (5) the following:
            ``(6) proceeds from the sale or licensing of historical 
        structure-specific claims data, as authorized under section 
        1313(b); and''.
            (2) Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by paragraph (1) shall take 
                effect on the date on which the Administrator publishes 
                in the Federal Register a certification that the 
                Administrator has--
                            (i) submitted the report required under 
                        subsection (b);
                            (ii) determined that it is legally and 
                        practically feasible to implement a program to 
                        sell or license the use of covered claims data 
                        to nongovernmental entities; and
                            (iii) determined that a program described 
                        in subparagraph (B) would be in the public 
                        interest.
                    (B) Credits to fund.--The amendment made by clause 
                (ii) of paragraph (1)(B) shall take effect on the date 
                of enactment of this Act.

SEC. 404. FEES AND SURCHARGES FOR PRIVATE FLOOD INSURANCE POLICIES.

    (a) Surcharges.--Section 1308A(a) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015a(a)) is amended--
            (1) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) Collection on nfip policies.--The Administrator''; 
        and
            (2) by adding at the end the following:
            ``(2) Collection on private policies.--
                    ``(A) In general.--An insurance company that issues 
                a policy for private flood insurance shall impose and 
                collect an annual surcharge, in the amount provided in 
                subsection (b), on a private flood insurance policy.
                    ``(B) In addition to increased cost of compliance 
                surcharge.--The surcharge imposed under subparagraph 
                (A) shall be in addition to the surcharge imposed under 
                section 1304(c) and any other assessments and 
                surcharges applied to such coverage.
                    ``(C) Federal equivalency fee payable to 
                administrator.--Not later than 180 days after the date 
                on which an insurance company collects a surcharge 
                under subparagraph (A), the insurance company shall 
                transfer the amount of the surcharge to the 
                Administrator, who shall deposit the amount in the 
                National Flood Insurance Fund established under section 
                1310.
                    ``(D) Information.--The Administrator may require 
                the provision of such information as the Administrator 
                decides is necessary to verify that a surcharge imposed 
                and collected under subparagraph (A) has been imposed 
                and collected at the proper time and in the proper 
                amount.
                    ``(E) Cost of collecting surcharge.--No portion of 
                the surcharge collected under subparagraph (A) may be 
                retained by the insurance company for the costs of 
                collecting, handling, or remitting the surcharge except 
                for interest accruing to the company after collection 
                and before remittance.''.
    (b) Federal Policy Fee.--Section 1307(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4014(a)) is amended--
            (1) in paragraph (1)(B)(iii), by striking ``shall be 
        recovered by'' and all that follows and inserting ``shall be 
        recovered--
                                    ``(I) in the case of a policy under 
                                the national flood insurance program, 
                                by a fee that--
                                            ``(aa) shall be charged to 
                                        policyholders; and
                                            ``(bb) shall not be subject 
                                        to any agents' commissions, 
                                        company expense allowances, or 
                                        State or local premium taxes; 
                                        and
                                    ``(II) in the case of a private 
                                flood insurance policy, by a fee--
                                            ``(aa) that shall be--

                                                    ``(AA) charged to 
                                                policyholders;

                                                    ``(BB) collected by 
                                                the insurance company 
                                                that issued the policy; 
                                                and

                                                    ``(CC) transferred, 
                                                not later than 180 days 
                                                after the date on which 
                                                the fee is collected, 
                                                to the Administrator, 
                                                who shall deposit the 
                                                amount of the fee in 
                                                the National Flood 
                                                Insurance Fund 
                                                established under 
                                                section 1310;

                                            ``(bb) that shall not be 
                                        subject to any agents' 
                                        commissions, company expense 
                                        allowances, or State or local 
                                        premium taxes; and
                                            ``(cc) with respect to 
                                        which--

                                                    ``(AA) the 
                                                Administrator may 
                                                require the provision 
                                                of such information as 
                                                the Administrator 
                                                decides is necessary to 
                                                verify that the fee has 
                                                been imposed and 
                                                collected at the proper 
                                                time and in the proper 
                                                amount; and

                                                    ``(BB) no portion 
                                                may be retained by the 
                                                insurance company that 
                                                collected the fee for 
                                                the costs of 
                                                collecting, handling, 
                                                or remitting the fee 
                                                except for interest 
                                                accruing to the company 
                                                after collection and 
                                                before remittance; 
                                                and''; and

            (2) in paragraph (2), in the matter preceding subparagraph 
        (A), by inserting ``, including a fee charged to policyholders 
        of private flood insurance in a manner that is consistent with 
        paragraph (1)(B)(iii)(II),'' after ``policyholders''.
    (c) Increased Cost of Compliance Coverage Under Private Policies.--
Section 102(b)(7)(C) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(b)(7)(C)), as amended by section 401 of this Act, is 
amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) in clause (iii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(iv) provides ordinance and law coverage 
                        that meets or exceeds increased cost of 
                        compliance coverage provided under a standard 
                        flood insurance policy under the national flood 
                        insurance program''.
    (d) Applicability.--The amendments made by subsections (a), (b), 
and (c) shall apply with respect to a private flood insurance policy 
that is newly issued or renewed after the date of enactment of this 
Act.
    (e) Technical and Conforming Amendments.--
            (1) Premium surcharge.--Section 1308A(a)(1) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015a(a)(1)), as so 
        designated by subsection (a)(1) of this section, is amended, in 
        the second sentence, by striking ``section 1304(b)'' and 
        inserting ``section 1304(c)''.
            (2) National flood insurance fund.--Section 1310(b) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4017(b)), as 
        amended by section 403(c)(1)(B)(ii) of this Act, is amended--
                    (A) in paragraph (6), as so designated, by striking 
                ``and'' at the end;
                    (B) by redesignating paragraph (7) as paragraph 
                (9); and
                    (C) by inserting after paragraph (6) the following:
            ``(7) surcharges collected under section 1308A(a)(2);
            ``(8) fees collected under section 1307(a)(1)(B)(iii); 
        and''.

SEC. 405. WRITE YOUR OWN RISK SHARING PILOT PROGRAM.

    (a) Definition.--In this section--
            (1) the term ``excess flood insurance policy'' means a 
        flood insurance policy sold under the Pilot Program; and
            (2) the term ``Pilot Program'' means the Write Your Own 
        Risk Sharing Pilot Program established under subsection (b).
    (b) Establishment.--The Administrator shall establish and conduct a 
pilot program under the National Flood Insurance Program, to be known 
as the ``Write Your Own Risk Sharing Pilot Program'', to make available 
a flood insurance policy applying only to loss or damage in excess of 
not less than $50,000 for sale by Write Your Own companies that agree 
to participate in the Pilot Program.
    (c) Eligibility To Participate in Pilot Program.--The Administrator 
may establish terms, conditions, and eligibility criteria for Write 
Your Own companies participating in the Pilot Program.
    (d) Terms and Conditions of Excess Flood Policy.--
            (1) Chargeable rates.--The chargeable rate for an excess 
        flood insurance policy sold in an area (or subdivision thereof) 
        shall be not less than the applicable estimated risk premium 
        rate for the area (or subdivision thereof) under section 
        1307(a)(1) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4014(a)(1)).
            (2) Application of surcharges and fees.--Any surcharge or 
        fee, with respect to an excess flood insurance policy, charged 
        to a policyholder participating in the Pilot Program for a 
        period shall be reduced by the amount of any surcharge for a 
        private flood insurance policy under section 1308A(a)(2) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4015a(a)(2)) 
        (as added by section 404) or fee for a private flood insurance 
        policy under section 1307(a)(1)(B)(iii) of that Act (42 U.S.C. 
        4014(a)(1)(B)(iii)) (as amended by section 404), respectively, 
        paid by the policyholder for coverage during the same period.
            (3) Terms and conditions of insurance.--
                    (A) In general.--An excess flood insurance policy 
                shall have the same coverages, exclusions, and 
                limitations as the Standard Flood Insurance Policy 
                insofar as the Policy relates to the requirements of 
                this section.
                    (B) Coverage amounts.--Coverage amounts for an 
                excess flood insurance policy shall not exceed the 
                coverage amounts established under section 1306(b) of 
                the National Flood Insurance Act of 1968 (42 U.S.C. 
                4013(b)).
            (4) Underlying policy requirement.--An excess flood 
        insurance policy sold under the Pilot Program shall require the 
        insured to carry primary flood insurance that--
                    (A) provides a maximum coverage limit of not less 
                than $50,000;
                    (B) is issued by a Write Your Own company; and
                    (C) complies with any other conditions adopted by 
                the Administrator.
    (e) Authority.--The Administrator shall carry out the Pilot Program 
as authorized by and in accordance with the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.) insofar as that Act relates to 
this section, subject to the modifications made by this section.
    (f) Implementation.--The Administrator shall make policies 
available for sale to the public under the Pilot Program not later than 
18 months after the date of enactment of this Act.
    (g) Sunset.--The Administrator may not issue or renew contracts for 
flood insurance under the Pilot Program--
            (1) on and after the date is 5 years after the date 
        contracts for flood insurance under this section are made 
        available for purchase; and
            (2) at any time after the expiration of the National Flood 
        Insurance Program under section 1319 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4026).
    (h) Report.--Not later than 180 days after the date on which the 
authority for the Pilot Program terminates under subsection (g), the 
Administrator shall submit to Congress a report on--
            (1) the aggregate amount of premiums, surcharges, and fees 
        charged under the Pilot Program; and
            (2) claims loss data experienced by the Write Your Own 
        companies participating in the Pilot Program and the National 
        Flood Insurance Program on policies sold under the Pilot 
        Program.

       TITLE V--MODERNIZING FLOOD MAPPING AND FLOOD RISK ACCURACY

SEC. 501. REAUTHORIZATION OF NATIONAL FLOOD MAPPING PROGRAM.

    Section 100216(f) of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4101b(f)) is amended--
            (1) by striking ``to carry out this section $400,000,000'' 
        and inserting the following: ``to carry out this section--
            ``(1) $400,000,000''; and
            (2) by striking the period at the end and inserting the 
        following: ``; and
            ``(2) $500,000,000 for each of fiscal years 2018 through 
        2027.''.

SEC. 502. MAPPING STANDARDS AND GUIDELINES FOR NONGOVERNMENTAL 
              ENTITIES.

    Section 100215 of the Biggert-Waters Flood Insurance Reform Act of 
2012 (42 U.S.C. 4101a) is amended by adding at the end the following:
    ``(m) Private or Community Flood Maps.--
            ``(1) Standards and procedures.--In addition to the other 
        duties of the Council under this section, not later than 1 year 
        after the date of enactment of this subsection, the Council 
        shall develop and establish a set of standards, guidelines, and 
        procedures for--
                    ``(A) State and local governments, federally or 
                State-recognized metropolitan planning organizations 
                (commonly known as `MPOs'), federally or State-
                recognized councils of local governments, and federally 
                or State-recognized rural transportation planning 
                organizations to use in mapping flood risks and 
                developing alternative maps to the flood insurance rate 
                maps developed by the Administrator; and
                    ``(B) certification, by the Administrator not later 
                than 90 days after the date on which a map developed 
                under subparagraph (A) is submitted to the 
                Administrator, for use under the National Flood 
                Insurance Program in the case of any area covered by a 
                flood insurance rate map developed or approved by the 
                Administrator that has not been updated or reissued 
                during the preceding 3-year period.
            ``(2) Treatment.--On and after the date on which the 
        Administrator certifies a map under paragraph (1)(B), the map--
                    ``(A) shall be considered the flood insurance rate 
                map in effect for all purposes of the National Flood 
                Insurance Program with respect to the area covered by 
                the map; and
                    ``(B) may not be revised, updated, or replaced in 
                accordance with the standards, guidelines, and 
                procedures established under paragraph (1) before the 
                expiration of the 3-year period beginning on that date 
                of certification.
            ``(3) Exemption from rulemaking.--Until the date on which 
        the Administrator promulgates regulations implementing 
        paragraphs (1) and (2), the Administrator may adopt policies 
        and procedures, notwithstanding any other provision of law, 
        necessary to implement those paragraphs without regard to 
        section 553 of title 5, United States Code, and without 
        conducting regulatory analyses otherwise required by statute, 
        regulation, or Executive order.''.

SEC. 503. USE OF HIGH-RESOLUTION MAPPING TECHNOLOGY.

    (a) In General.--Section 100216(b)(1) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)) is amended--
            (1) in subparagraph (A)(i), by inserting ``subject to 
        subparagraph (D),'' before ``all populated areas'';
            (2) in subparagraph (B), by striking ``and'' at the end;
            (3) in subparagraph (C), by striking the period at the end 
        and inserting the following: ``, including by facilitating, 
        partnering with other Federal, State, and local agencies with 
        respect to, and leveraging the efficient acquisition of the 
        most up-to-date high-resolution topographic data, such as Light 
        Detection and Ranging (commonly known as `LiDAR') data and 
        other new and emerging technologies; and''; and
            (4) by adding at the end the following:
                    ``(D) establish standards that may be used as the 
                basis for insurance rating purposes to identify multi-
                frequency flood hazards and flood hazard information 
                that appropriately characterizes the nature of flooding 
                for areas subject to a mapping update, including by 
                using the most up-to-date high-resolution topographic 
                data as required under subparagraph (C), in order to 
                reduce flood risk and improve the accuracy of National 
                Flood Insurance Program rate maps.''.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator shall submit to Congress a report on 
compliance by the Administrator with the requirement under 
subparagraphs (C) and (D) of section 100216(b)(1) of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)), as amended 
by subsection (a), to use the most up-to-date high-resolution 
topographic data and multi-frequency flood hazards in order to reduce 
flood risk and improve the accuracy of National Flood Insurance Program 
rate maps.

SEC. 504. PROTECTED AREAS.

    Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the 
following:
            ``(4) Zones protected by levee systems.--
                    ``(A) Applicability.--Subject to full 
                implementation of this section, and notwithstanding any 
                other provision of law, this paragraph shall apply to a 
                community in which the Administrator maps or re-maps a 
                levee-impacted area in which the pertinent levee system 
                fails to meet the minimum design, operation, and 
                maintenance standards of the National Flood Insurance 
                Program required for levee accreditation on a National 
                Flood Insurance Program rate map.
                    ``(B) AL zones.--For levee-impacted areas described 
                in subparagraph (A), the Administrator shall establish 
                flood risk zones known as `AL Zones' on the National 
                Flood Insurance Program rate map.
                    ``(C) Actuarial rates.--
                            ``(i) In general.--The Administrator shall 
                        make available flood insurance to properties in 
                        AL Zones at actuarial rates based upon the risk 
                        associated with structures within the 
                        applicable AL zone.
                            ``(ii) Temporary rates.--Until the 
                        Administrator promulgates actuarial rates for 
                        the various AL zones, a structure within a 
                        portion of a community located within a levee-
                        impacted area described in subparagraph (A) 
                        shall be eligible for rates associated with 
                        areas of moderate flood hazards (also known as 
                        `Standard X zone' rates).''.

SEC. 505. COASTAL FLOOD MODELS.

    Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4101b(b)), as amended by section 504, is amended by 
adding at the end the following:
            ``(5) Coastal flood models.--In updating maps under this 
        section, the Administrator shall use coastal flood models that 
        ensure technically and scientifically accurate modeling to 
        represent and communicate flood risk.''.

 TITLE VI--ENHANCING NATIONAL FLOOD INSURANCE PROGRAM TRANSPARENCY AND 
                             ACCOUNTABILITY

SEC. 601. DEADLINE FOR APPROVAL OF CLAIMS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 205, is amended by 
adding at the end the following:
    ``(e) Deadline for Approval of Claims.--
            ``(1) In general.--Not later than 30 days after the 
        submission of a proof of loss, the Administrator shall notify 
        the insured regarding the approval or disapproval of the claim.
            ``(2) Extension of claim determination deadline.--The 
        Administrator may extend the deadline under paragraph (1) by a 
        single additional 15-day period under extraordinary 
        circumstances, as determined according to criteria adopted by 
        the Administrator.
            ``(3) Payment of claims.--The Administrator shall make 
        payment for an approved claim as soon as possible after 
        approval of the claim.
    ``(f) Notification and Proofs of Loss.--
            ``(1) In general.--A flood insurance claim filed under this 
        title for damage to or loss of property may not be denied based 
        on the proof of loss requirements of the standard flood 
        insurance policy under the national flood insurance program if 
        the policyholder--
                    ``(A) provides notice of the claim not later than 
                60 days after the date of the occurrence of the loss; 
                and
                    ``(B) complies with the remaining proof of loss 
                requirements under the standard flood insurance policy 
                not later than--
                            ``(i) 180 days after the date of the 
                        occurrence of the loss; or
                            ``(ii) any later date specified by the 
                        Administrator.
            ``(2) Supplemental proof of loss.--A policyholder may amend 
        or supplement a proof of loss not later than 180 days after the 
        date on which the policyholder submits the initial proof of 
        loss.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any claim for damage to or loss of property covered by flood 
insurance made available under the National Flood Insurance Act of 1968 
(42 U.S.C. 4001 et seq.) that is pending on, or made after, the date of 
enactment of this Act.

SEC. 602. FLOOD INSURANCE TRANSPARENCY, ACCOUNTABILITY, AND REFORM.

    (a) Reports and Other Claim-Related Documents.--Section 1312 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by 
section 601, is amended by adding at the end the following:
    ``(f) Final Engineering Reports.--The Administrator shall require 
that, in the case of any on-site inspection of a property by an 
engineer for the purpose of assessing any claim for losses covered by a 
policy for flood insurance coverage provided under this title (referred 
to in this subsection as a `covered claim'), the final engineering 
report shall be provided to the insured under the policy, as follows:
            ``(1) Timing.--The final engineering report may not be 
        transmitted to any other person, employer, agency, or entity, 
        before it is transmitted to the insured.
            ``(2) Prohibition on alterations; certification.--The final 
        engineering report--
                    ``(A) shall be true, complete, and unredacted;
                    ``(B) may not include alterations by, or at the 
                request of, anyone other than the individual with 
                responsible charge for the report; and
                    ``(C) shall include a certification, signed by the 
                individual with responsible charge for the report, that 
                the report does not contain any alterations described 
                in subparagraph (B).
            ``(3) Transmittal.--
                    ``(A) In general.--The final engineering report 
                shall be transmitted to the insured in a manner 
                prescribed by the Administrator that provides 
                reasonable assurance that it was transmitted directly 
                to the insured by the individual with responsible 
                charge.
                    ``(B) Direct disclosure.--A Write Your Own company 
                or direct servicing agent in possession of a final 
                engineering report subject to disclosure under this 
                subsection may transmit the report to the insured 
                without further review or approval by the 
                Administrator.
            ``(4) Reports covered.--For purposes of this subsection, 
        the term `final engineering report' means an engineering 
        report, survey, or other document in connection with the 
        covered claim that--
                    ``(A) is based on the on-site inspection;
                    ``(B) contains final conclusions with respect to an 
                engineering issue or issues involved in the claim; and
                    ``(C) is signed by the individual with responsible 
                charge or affixed with the seal of the individual with 
                responsible charge, or both.
    ``(g) Claims Adjustment Reports.--The Administrator shall require 
that, in the case of any on-site inspection of a property by a claims 
adjustor for the purpose of assessing any claim for losses covered by a 
policy for flood insurance coverage provided under this title (referred 
to in this subsection as a `covered claim'), any claims adjustment 
claims adjustment report shall be provided to the insured under the 
policy, as follows:
            ``(1) Timing.--The claims adjustment report may not be 
        transmitted to any other person, employer, agency, or entity, 
        before it is transmitted to the insured.
            ``(2) Prohibition on alterations; certification.--The 
        claims adjustment report--
                    ``(A) shall be true, complete, and unredacted;
                    ``(B) may not include alterations by, or at the 
                request of, anyone other than the preparer of the 
                report; and
                    ``(C) shall include a certification, signed by the 
                preparer, that the report does not contain any 
                alterations described in subparagraph (B).
            ``(3) Transmittal.--
                    ``(A) In general.--The claims adjustment report 
                shall be transmitted to the insured in a manner 
                prescribed by the Administrator that provides 
                reasonable assurance that it was transmitted directly 
                to the insured by the preparer.
                    ``(B) Direct disclosure.--A Write Your Own company 
                or direct servicing agent in possession of a claims 
                adjustment report subject to disclosure under this 
                subsection may transmit the report to the insured 
                without further review or approval by the 
                Administrator.
            ``(4) Reports covered.--For purposes of this subsection, 
        the term `claims adjustment report'--
                    ``(A) means any report or document in connection 
                with the covered claim that is based on the on-site 
                inspection by the claims adjustor, including any 
                adjustment report and field report;
                    ``(B) includes any draft, preliminary version, or 
                copy of a report described in subparagraph (A) and any 
                amendments or additions to any such report; and
                    ``(C) does not include a final engineering report, 
                as that term is defined for purposes of subsection (e).
    ``(h) Other Claim-Related Documents.--
            ``(1) Definition of claim-related document.--In this 
        subsection, the term `claim-related document' means any 
        document, other than a final engineering report (as defined in 
        subsection (e)) or a claims adjustment report (as defined in 
        subsection (f)), that was prepared for the purposes of 
        assessing a claim for losses covered by flood insurance made 
        available under this title, including--
                    ``(A) a repair and replacement estimate or bid;
                    ``(B) an appraisal;
                    ``(C) a scope of loss;
                    ``(D) a drawing;
                    ``(E) a plan;
                    ``(F) a report, including a draft report prepared 
                based on an on-site inspection of a property conducted 
                by a claims adjustor or engineer;
                    ``(G) a third-party finding on the amount of loss, 
                amount of covered damage, or cost of repairs; and
                    ``(H) any other valuation, measurement, or loss 
                adjustment calculation of the amount of loss, amount of 
                covered damage, or cost of repairs.
            ``(2) Availability of documents.--Any entity servicing a 
        claim under the national flood insurance program--
                    ``(A) shall retain each claim-related document 
                prepared by or for the entity;
                    ``(B) upon request by a claimant or an authorized 
                representative of a claimant, shall provide to the 
                claimant or representative a copy of any claim-related 
                document described in subparagraph (A) that pertains to 
                the claimant; and
                    ``(C) not later than 30 days after receiving notice 
                of a claim, shall notify the claimant that the claimant 
                or an authorized representative of the claimant may 
                obtain, upon request, a copy of any claim-related 
                document described in subparagraph (A) that pertains to 
                the claimant.
    ``(i) Use of Claim Reports.--
            ``(1) In general.--When adjusting claims for any damage to 
        or loss of property covered by flood insurance made available 
        under this title, the Administrator shall only rely upon final 
        claim reports that are prepared in compliance with applicable 
        State and Federal laws regarding professional licensure and 
        conduct.
            ``(2) Non-reimbursement.--The Administrator may decline to 
        reimburse a Write Your Own company for claim reports not 
        prepared in accordance with paragraph (1).''.
    (b) Judicial Review.--
            (1) Government program with industry assistance.--Section 
        1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4072) is amended to read as follows:

``SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.

    ``(a) Adjustment and Payment of Claims.--If the program is carried 
out as provided in section 1340, the Administrator may adjust and make 
payment of any claims for proved and approved losses covered by flood 
insurance.
    ``(b) Judicial Review.--Upon the disallowance or partial 
disallowance by the Administrator of a claim described in subsection 
(a), or upon the refusal of the claimant to accept the amount allowed 
upon a claim described in subsection (a)--
            ``(1) the claimant may institute an action against the 
        Administrator on the claim in the United States district court 
        for the district in which the insured property or the major 
        part thereof shall have been situated--
                    ``(A) not later than 2 years after the date on 
                which the claimant receives notice of disallowance or 
                partial disallowance of the claim; or
                    ``(B) in the case of a denial of a claim for losses 
                that is appealed to the Administrator, not later than 
                the later of--
                            ``(i) 90 days after the date of a final 
                        determination upon appeal denying the claim in 
                        whole or in part; or
                            ``(ii) 2 years after the date on which the 
                        claimant receives notice of disallowance or 
                        partial disallowance of the claim; and
            ``(2) a court described in paragraph (1) shall have 
        original exclusive jurisdiction to hear and determine the 
        action without regard to the amount in controversy.
    ``(c) Private Rights of Action.--Nothing in this section, or in any 
regulation or policy implementing the national flood insurance program, 
may be construed to preclude a private right of action under any 
statute by a policyholder against a private entity for fraud arising 
from the handing or disposition of a claim for losses under this 
title.''.
            (2) Industry program with federal financial assistance.--
        Section 1333 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4053) is amended to read as follows:

``SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.

    ``(a) Adjustment and Payment of Claims.--The insurance companies 
and other insurers that form, associate, or otherwise join together in 
the pool under this part may adjust and pay all claims for proved and 
approved losses covered by flood insurance in accordance with the 
provisions of this title.
    ``(b) Judicial Review.--Upon the disallowance or partial 
disallowance by any company or other insurer described in subsection 
(a) of a claim described in that subsection, or upon the refusal of the 
claimant to accept the amount allowed upon a claim described in that 
subsection--
            ``(1) the claimant may institute an action on the claim 
        against the company or other insurer in the United States 
        district court for the district in which the insured property 
        or the major part thereof shall have been situated--
                    ``(A) not later than 2 years after the date on 
                which the claimant receives notice of disallowance or 
                partial disallowance of the claim; or
                    ``(B) in the case of a denial of a claim for losses 
                that is appealed to the Administrator, not later than 
                the later of--
                            ``(i) 90 days after the date of a final 
                        determination upon appeal denying the claim in 
                        whole or in part; or
                            ``(ii) 2 years after the date on which the 
                        claimant receives notice of disallowance or 
                        partial disallowance of the claim; and
            ``(2) a court described in paragraph (1) shall have 
        original exclusive jurisdiction to hear and determine the 
        action without regard to the amount in controversy.
    ``(c) Private Rights of Action.--Nothing in this section, or in any 
regulation or policy implementing the national flood insurance program, 
may be construed to preclude a private right of action under any 
statute by a policyholder against a private entity for fraud arising 
from the handing or disposition of a claim for losses under this 
title.''.
    (c) Records and Reviews.--Section 1348 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4084) is amended by adding at the end 
the following:
    ``(c) Annual Review.--The Administrator shall conduct an annual 
review of each private entity participating in the national flood 
insurance program, including any company that has entered into a 
contract with a Write Your Own company to provide any service related 
to a policy or claim under the national flood insurance program, 
including adjusting, engineering, and legal services, to ensure 
compliance with this title and with all policies and procedures 
established by the Administrator to prevent fraud and protect 
policyholders.''.
    (d) Publication of Claims Data.--Section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019), as amended by subsection (a), 
is amended by adding at the end the following:
    ``(j) Publication of Claims Data.--Not later than 1 year after the 
date of enactment of the Flood Insurance Affordability and 
Sustainability Act of 2017, the Administrator shall create and maintain 
a publicly searchable online database that includes, with respect to 
claims filed under the national flood insurance program after that date 
of enactment--
            ``(1) the aggregate number of claims filed each month, 
        broken down by State;
            ``(2) the aggregate number of claims paid in part or in 
        full; and
            ``(3) the aggregate number of claim denials appealed, the 
        number of claim denials upheld on appeal, and the number of 
        claim denials overturned on appeal.
    ``(k) Privacy.--Nothing in this section or the Flood Insurance 
Affordability and Sustainability Act of 2017, or any amendment made by 
that Act, shall be construed to authorize the inclusion of personally 
identifiable information or individual claim or specific property 
information in any publicly searchable database.''.
    (e) Oversight of Litigation.--Part C of chapter II of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by 
adding at the end the following:

``SEC. 1349. OVERSIGHT OF LITIGATION.

    ``(a) In General.--The Administrator shall oversee litigation 
arising under a contract for flood insurance sold under this title that 
is conducted by a Write Your Own company to ensure that the Write Your 
Own company and counsel for the company--
            ``(1) represent the national flood insurance program 
        reasonably and in accordance with guidelines established by the 
        Administrator and applicable ethical requirements; and
            ``(2) conduct litigation in a cost-effective manner.
    ``(b) Denial of Reimbursement.--The Administrator may deny 
reimbursement for litigation expenses that the Administrator determines 
to be unreasonable, excessive, contrary to guidance issued by the 
Administrator, or outside the scope of any arrangement entered into 
with a Write Your Own company.
    ``(c) Direction of Strategy.--The Administrator may direct 
litigation strategy for claims arising under a contract for flood 
insurance sold by a Write Your Own company.
    ``(d) Substitution.--The Administrator may promptly take any 
necessary action to be substituted for the Write Your Own company in 
any action arising out of any claim arising under a contract for flood 
insurance sold by a Write Your Own company if the Administrator 
determines that--
            ``(1) there is a conflict of interest between a Write Your 
        Own company and the national flood insurance program; or
            ``(2) such substitution is in the best interest of the 
        United States.''.
    (f) Earth Movement.--Section 1306 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the 
following:
    ``(e) Earth Movement.--A flood insurance claim filed under this 
title for damage to or loss of property may not be denied based on the 
earth movement exclusion in the Standard Flood Insurance Policy if the 
claim is filed as the result of a flood, including a claim for damage 
to or loss or property caused by earth movement that was caused by a 
flood.''.
    (g) Appeals Process.--Section 205 of the Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is 
amended--
            (1) by striking ``Not later than'' and inserting ``(a) In 
        General.--Not later than''; and
            (2) by adding at the end the following:
    ``(b) Review of Appeals.--
            ``(1) Clarity.--The Director shall ensure that the appeals 
        process established under subsection (a) has clear rules, 
        forms, and deadlines.
            ``(2) Notification upon initial denial of claim.--The 
        Director shall ensure that a claimant is provided with the 
        rules, forms, and deadlines described in paragraph (1) at the 
        time a claim is first denied in full or in part, including--
                    ``(A) the effective date of the denial;
                    ``(B) a justification for the denial, including 
                supporting documentation;
                    ``(C) the date on which the period of limitation 
                for instituting an action against the Administrator on 
                the claim under section 1341 of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4072) will end; and
                    ``(D) a point of contact through which the claimant 
                can directly discuss an appeal with a representative of 
                the Federal Emergency Management Agency.
            ``(3) Notification upon denial of appeal.--If the 
        Administrator denies an appeal filed by a policyholder, the 
        Administrator shall include with the notice of denial an 
        explanation of the policyholder's legal options for further 
        challenging the denial.''.

SEC. 603. REPORTS TO CONGRESS.

    (a) Definition.--In this section, the term ``Task Force'' means the 
National Flood Insurance Program Transformation Task Force established 
by the Federal Emergency Management Agency.
    (b) Report to Congress on Accountability for Defrauding 
Policyholders.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Homeland Security shall submit to Congress a 
report on specific actions the Department of Homeland Security will 
take to identify individuals and private entities that have engaged in 
activities to defraud policyholders under the National Flood Insurance 
Program following Superstorm Sandy and prevent those individuals and 
private entities from continuing to receive Federal funding through--
            (1) contracts with, or employment by, a Write Your Own 
        company; or
            (2) employment by the Federal Emergency Management Agency.
    (c) Report to Congress on Recommendations of the NFIP 
Transformation Task Force.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to Congress a 
report that describes--
            (1) the recommendations of the Task Force for reforming the 
        National Flood Insurance Program;
            (2) a timeline for implementing the recommendations of the 
        Task Force; and
            (3) any recommendations of the Task Force that require 
        additional legislation.
                                 <all>