Title: Sustainable, Affordable, Fair, and Efficient (SAFE) National Flood Insurance Program Reauthorization Act of 2017
Policy area: Finance and Financial Sector

Summary:
Sustainable, Affordable, Fair, and Efficient (SAFE) National Flood Insurance Program Reauthorization Act of 2017
This bill amends the National Flood Insurance Act of 1968 to extend through FY2023 the National Flood Insurance Program (NFIP).
NFIP policy coverage limits for residential and nonresidential buildings are increased.
NFIP premiums, surcharges, and fees may not be increased by more than 10% each year.
The Federal Emergency Management Agency (FEMA) must provide: (1) loans for mitigation projects, and (2) other financial assistance to qualified households for NFIP premium payments and mitigation projects.
The limitation on Increased Cost of Compliance (ICC) coverage (offered by NFIP to cover the cost of flood mitigation measures on certain structures) is increased to $100,000 and ICC eligibility is expanded.
This bill prevents the Department of the Treasury from charging interest to FEMA on amounts borrowed for NFIP through FY2023.
This bill directs FEMA to revise: (1) directives related to the Write Your Own program, (2) specified elements of the claims process, (3) the appeals process for claims and flood map determinations, and (4) certain flood risk zones.
FEMA must study business interruption coverage and participation rates in specified flood zones.
This bill also makes changes to: (1) FEMA's mitigation assistance programs, (2) the usage and collection of specified surcharges and fees, (3) the scope of coverage available under NFIP, (4) requirements of NFIP engineers and adjusters, and (5) regulations relating to the disclosure of flood risks on rental property.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1368 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1368

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 15, 2017

Mr. Menendez (for himself, Mr. Kennedy, Ms. Warren, Mr. Rubio, Mr. Van 
    Hollen, Mr. Cochran, Mr. Booker, and Mr. Nelson) 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 ``Sustainable, Affordable, Fair, and 
Efficient (SAFE) National Flood Insurance Program Reauthorization 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.
               TITLE I--REAUTHORIZATION AND AFFORDABILITY

Sec. 101. Extension of National Flood Insurance Program.
Sec. 102. Limitation on increases of premiums, surcharges, and mapping 
                            fees.
Sec. 103. Means-tested mitigation and affordability assistance.
Sec. 104. Coverage expansion.
Sec. 105. Additional coverage for business interruption.
                    TITLE II--MITIGATION AND MAPPING

Sec. 201. ICC expansion.
Sec. 202. Flood mitigation assistance prioritization and authorization.
Sec. 203. Predisaster hazard mitigation program authorization.
Sec. 204. National Flood Mapping Program.
Sec. 205. Reallocation of premium surcharges.
Sec. 206. Multifamily mitigation.
Sec. 207. Sense of Congress regarding flood mitigation activities.
Sec. 208. New zone for levee-impacted areas.
Sec. 209. Appeals regarding existing flood maps.
                        TITLE III--COST SAVINGS

Sec. 301. Forbearance on NFIP interest payments.
Sec. 302. Cap on Write Your Own company compensation.
Sec. 303. Taxpayer protection.
Sec. 304. Vendor costs; transparency.
                    TITLE IV--CLAIMS PROCESS REFORM

Sec. 401. Earth movement clarification.
Sec. 402. Treatment of basements.
Sec. 403. Mold damage clarification.
Sec. 404. Appeal of decisions relating to flood insurance coverage.
Sec. 405. Accountability for underpayments by Write Your Own companies.
Sec. 406. Policyholder right to know.
Sec. 407. Increasing statute of limitations for lawsuits.
Sec. 408. Attorney fee shifting.
Sec. 409. DOJ defense against policyholder lawsuits.
Sec. 410. Study on participation rates.
Sec. 411. Federal Flood Insurance Advisory Committee.
Sec. 412. Authority to terminate contractors and vendors.
Sec. 413. Easing proof of loss requirements.
Sec. 414. Elevation certificates.
Sec. 415. Monthly installment payment for premiums.
Sec. 416. Pilot program for pre-existing structural conditions.
Sec. 417. Deadline for claim processing.
Sec. 418. Engineer oversight and certification.
Sec. 419. Engineer reports.
Sec. 420. Improved training of agents and adjusters.
Sec. 421. Agent Advisory Council.
Sec. 422. Efficient use of mitigation dollars.
Sec. 423. Improved disclosure requirements.
Sec. 424. Amendments to Financial Assistance/Subsidy Arrangement.
Sec. 425. Technical and conforming amendments.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the Federal Emergency Management Agency;
            (2) the term ``National Flood Insurance Fund'' means the 
        fund established under section 1310 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4017);
            (3) 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.);
            (4) the term ``National Flood Mitigation Fund'' means the 
        fund established under section 1367 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4104d);
            (5) the term ``Standard Flood Insurance Policy'' means the 
        policy set forth in Appendix A to part 61 of title 44, Code of 
        Federal Regulations;
            (6) the term ``Write Your Own company'' means a company 
        that participates in the Write Your Own Program; and
            (7) the term ``Write Your Own Program'' means the 
        cooperative undertaking between the insurance industry and the 
        Federal Insurance and Mitigation Administration that allows 
        participating property and casualty insurance companies to 
        write and service standard flood insurance policies.

               TITLE I--REAUTHORIZATION AND AFFORDABILITY

SEC. 101. 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, 2023''.
    (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, 2023''.

SEC. 102. LIMITATION ON INCREASES OF PREMIUMS, SURCHARGES, AND MAPPING 
              FEES.

    (a) Definition.--In this section, the term ``covered cost'' means--
            (1) the amount of an annual premium with respect to any 
        policy for flood insurance under the National Flood Insurance 
        Program;
            (2) any surcharge imposed with respect to a policy 
        described in paragraph (1), including a surcharge imposed 
        under--
                    (A) section 1304(b) of the National Flood Insurance 
                Act of 1968 (42 U.S.C. 4011(b)), as amended by section 
                201(b); or
                    (B) section 1308A(a) of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4015a(a)); and
            (3) a fee described in paragraph (1)(B)(iii) or (2) of 
        section 1307(a) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4014(a)).
    (b) Limitation on Increases.--During the 6-year period beginning on 
the date of enactment of this Act, and notwithstanding section 1308(e) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), the 
Administrator may not, in any year, increase the amount of any covered 
cost by an amount that is more than 10 percent, as compared with the 
amount of the covered cost during the previous year.
    (c) Rule of Construction.--Nothing in subsection (b) may be 
construed as prohibiting the Administrator from reducing, in any year, 
the amount of any covered cost, as compared with the amount of the 
covered cost during the previous year.
    (d) Average Historical Loss Year.--Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Rule of Construction.--For purposes of this section, the 
calculation of an `average historical loss year' shall be computed in 
accordance with generally accepted actuarial principles.''.

SEC. 103. MEANS-TESTED MITIGATION AND AFFORDABILITY ASSISTANCE.

    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. AFFORDABILITY ASSISTANCE.

    ``(a) Affordability Assistance Fund.--
            ``(1) Establishment.--The Administrator shall establish in 
        the Treasury of the United States an Affordability Assistance 
        Fund (referred to in this section as the `Fund'), which shall 
        be--
                    ``(A) an account separate from any other accounts 
                or funds available to the Administrator; and
                    ``(B) available without fiscal year limitation.
            ``(2) Use of funds.--Amounts from the Fund shall be 
        available to provide financial assistance under subsection (b).
            ``(3) Source of funds.--The Fund shall be credited with any 
        surcharges imposed and collected by the Administrator under 
        section 1308A(a).
    ``(b) Financial Assistance.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `adjusted gross income' has the 
                meaning given the term in section 62 of the Internal 
                Revenue Code of 1986;
                    ``(B) the term `covered project' means a mitigation 
                project with respect to a household that reduces the 
                total amount of actuarial risk during a 50-year period 
                by an amount that is greater than the total cost of the 
                project, subject to paragraph (4);
                    ``(C) the term `eligible household' means a 
                household for which--
                            ``(i) housing expenses exceed 30 percent of 
                        the adjusted gross income of the household in a 
                        year; and
                            ``(ii) the total assets owned by the 
                        household are not greater than $1,000,000; and
                    ``(D) the term `housing expenses' means, with 
                respect to a household, the total amount that the 
                household spends in a year on--
                            ``(i) mortgage payments;
                            ``(ii) property taxes;
                            ``(iii) homeowners insurance;
                            ``(iv) premiums for flood insurance under 
                        the national flood insurance program; and
                            ``(v) principal and interest payments for a 
                        loan provided under this section.
            ``(2) Authority.--
                    ``(A) Loans for covered projects.--The 
                Administrator shall provide a low- or zero-interest 
                loan to an eligible household to fund a covered 
                project.
                    ``(B) Other financial assistance.--The 
                Administrator shall provide a voucher, grant, or 
                premium credit to an eligible household for a year in 
                an amount that is equal to the lesser of--
                            ``(i) the difference between--
                                    ``(I) the housing expenses of the 
                                household for the year; and
                                    ``(II) 30 percent of the adjusted 
                                gross income of the household for the 
                                year; and
                            ``(ii) the sum of--
                                    ``(I) the cost of premiums for the 
                                household for flood insurance under the 
                                national flood insurance program for 
                                the year; and
                                    ``(II) principal and interest 
                                payments for the household for the year 
                                for a loan provided under this section.
            ``(3) Relationships with other agencies.--The Administrator 
        may enter into a memorandum of understanding with the head of 
        any other Federal agency to administer the provision of loans 
        under paragraph (2)(A).
            ``(4) Use of discount rate in calculation.--The 
        Administrator shall calculate the amounts under paragraph 
        (1)(B) using a discount rate of 3 percent.''.

SEC. 104. COVERAGE EXPANSION.

    (a) In General.--Section 1306(b) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (2), by striking ``$250,000'' and 
        inserting ``$500,000''; and
            (2) in paragraph (4), by striking ``applicable) of 
        $500,000'' and inserting ``applicable) of $1,500,000''.
    (b) Rule of Construction.--Notwithstanding section 102 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a), nothing in the 
amendments made by subsection (a) may be construed as requiring a 
person to obtain flood insurance in an amount that is greater than the 
amount of flood insurance held by that person on the day before the 
date of enactment of this Act.

SEC. 105. ADDITIONAL COVERAGE FOR BUSINESS INTERRUPTION.

    (a) In General.--The Administrator shall conduct a study on the 
feasibility and soundness of offering coverage for interruption 
business losses caused by a flood under the National Flood Insurance 
Program (referred to in this section as ``business interruption 
coverage'').
    (b) Contents.--In conducting the study under subsection (a), the 
Administrator shall, at a minimum--
            (1) evaluate insurance industry best practices for offering 
        business interruption coverage, including the types of coverage 
        provided and the utilization rate;
            (2) estimate the potential risk premium rates for business 
        interruption coverage based on the flood risk reflected in the 
        flood insurance rate map or other risk metrics in effect at the 
        time of purchase;
            (3) analyze the operational and administrative expenses 
        associated with providing business interruption coverage and 
        adjusting claims;
            (4) identify potential obstacles that may prevent the 
        Administrator from offering business interruption coverage;
            (5) evaluate the benefits of providing business 
        interruption coverage;
            (6) analyze any potential impacts on the financial position 
        of the National Flood Insurance Program; and
            (7) develop a feasibility implementation plan and projected 
        timelines for offering business interruption coverage.
    (c) Availability of Experts.--In conducting the study under 
subsection (a), the Administrator may accept and utilize the personnel 
and services of any other Federal agency, and appoint and fix the 
compensation of temporary personnel without regard to the provisions of 
title 5, United States Code, governing appointments in the competitive 
service, or employ experts and consultants in accordance with the 
provisions of section 3109 of such title, without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates.
    (d) Deadline.--The Administrator shall complete the study required 
under subsection (a) not later than September 30 of the second full 
fiscal year after the date of enactment of this Act.

                    TITLE II--MITIGATION AND MAPPING

SEC. 201. ICC EXPANSION.

    (a) Increase of 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 increase the limitation on 
liability relating to ``Coverage D--Increased Cost of Compliance'' from 
$30,000 to $100,000.
    (b) Expansion of Eligibility; Clarification With Respect to 
Coverage Limits; Non-Federal Match.--
            (1) In general.--Section 1304(b) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
                    (A) in paragraph (4), by redesignating 
                subparagraphs (A) through (D) as clauses (i) through 
                (iv), respectively, and adjusting the margins 
                accordingly;
                    (B) by redesignating paragraphs (1) through (4) as 
                subparagraphs (A) through (D), respectively, and 
                adjusting the margins accordingly;
                    (C) in the matter preceding subparagraph (A), as so 
                redesignated, by striking ``The national'' and 
                inserting the following:
            ``(1) In general.--The national'';
                    (D) in paragraph (1), as so designated--
                            (i) in subparagraph (A), as so 
                        redesignated, by inserting ``, without regard 
                        to whether the property is in an area having 
                        special flood hazards'' after ``loss 
                        structures'';
                            (ii) in subparagraph (C), as so 
                        redesignated, by striking the period at the end 
                        and inserting ``; and''; and
                            (iii) in subparagraph (D), as so 
                        redesignated--
                                    (I) in the matter preceding clause 
                                (ii), as so redesignated, by inserting 
                                ``subject to paragraph (2),'' before 
                                ``properties for which'';
                                    (II) in clause (iii), as so 
                                redesignated, by striking ``and'' at 
                                the end;
                                    (III) in clause (iv), as so 
                                redesignated, by striking the period at 
                                the end and inserting ``; and''; and
                                    (IV) by adding at the end the 
                                following:
                            ``(v) a property outside an area having 
                        special flood hazards if the community, under 
                        section 1361, has established land use and 
                        control measures for the area in which the 
                        property is located.'';
                    (E) in the flush text following paragraph 
                (1)(D)(v), as added by subparagraph (D) of this 
                paragraph, by striking ``The Administrator'' and 
                inserting the following:
            ``(3) Surcharges.--The Administrator''; and
                    (F) by inserting after paragraph (1), as so 
                designated by subparagraph (A) of this paragraph, the 
                following:
            ``(2) Use of funds for mitigation projects.--The 
        Administrator shall allow a policyholder to use insurance 
        purchased under this subsection for any eligible project costs 
        under a program described in clause (i), (ii), or (iii) of 
        paragraph (1)(D) of an acquisition, demolition, elevation, 
        relocation, or small structural project funded under that 
        program, including--
                    ``(A) asbestos remediation;
                    ``(B) the demolition of a driveway or sidewalk when 
                a structure is acquired; and
                    ``(C) the addition of a lift, ramp, or other device 
                that is necessary for a homeowner or occupant with a 
                physical limitation or disability to safely access a 
                home that has been elevated.''.
            (2) Mandatory nature of icc statute.--
                    (A) Finding.--Congress finds that, although section 
                1304(b) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4011(b)), as in effect on the day before the 
                date of enactment of this Act, requires the 
                Administrator to offer increased cost of compliance 
                (commonly known as ``ICC'') coverage to each type of 
                property described in paragraphs (1) through (4) of 
                that section, the Administrator has implemented that 
                section by effectively only offering ICC coverage to 
                properties described in paragraph (2) of that section.
                    (B) Rule of construction.--Nothing in section 
                1304(b) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4011(b)), as amended by paragraph (1), shall be 
                construed to permit the Administrator to choose which 
                types of properties described in paragraphs (1) through 
                (5) of such section 1304(b) should be eligible for ICC 
                insurance rather than offering ICC insurance to all 
                such types of properties as required under such section 
                1304(b).

SEC. 202. FLOOD MITIGATION ASSISTANCE PRIORITIZATION AND AUTHORIZATION.

    (a) Flood Mitigation Assistance Grant Program Priority.--Section 
1366(a) of the National Flood Insurance Act (42 U.S.C. 4104c(a)) is 
amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively, and adjusting 
        the margins accordingly;
            (2) in the second sentence of the matter preceding 
        subparagraph (A), as so redesignated, by striking ``assistance 
        shall be'' and inserting the following: ``assistance shall--
            ``(1) be'';
            (3) in paragraph (1)(C), as so redesignated, by striking 
        the period at the end and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(2) in addition to the requirement under paragraph 
        (1)(C), give priority to properties--
                    ``(A) that are repetitive loss structures;
                    ``(B) with respect to which flood insurance 
                premiums are unaffordable, as determined by the 
                Administrator; and
                    ``(C) for which losses exceed the replacement value 
                of the properties.''.
    (b) Additional Mitigation Assistance.--
            (1) Authorization of appropriations.--
                    (A) Appropriations from general fund of treasury.--
                For each of the first 6 full fiscal years after the 
                date of enactment of this Act, there is authorized to 
                be appropriated $1,000,000,000 to the National Flood 
                Mitigation Fund to provide mitigation assistance under 
                this subsection.
                    (B) Rule of construction.--The authorization of 
                appropriations under subparagraph (A) shall not be 
                construed to authorize the transfer or crediting to the 
                National Flood Mitigation Fund of any amounts from the 
                National Flood Insurance Fund.
            (2) Community-wide mitigation projects.--Notwithstanding 
        any other provision of law, including section 1366 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4104c) and 
        section 203 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5133), in providing 
        mitigation assistance under this subsection, in order to lessen 
        disaster losses and enhance the financial stability and 
        effectiveness of the National Flood Insurance Program, the 
        Administrator shall give priority to utilizing flood mitigation 
        activities that--
                    (A) provide benefits to an entire floodplain or 
                community, or to a portion of such a community;
                    (B) consider all available and practicable 
                approaches; and
                    (C) the Administrator determines--
                            (i) are technically feasible;
                            (ii) have the highest net benefits; and
                            (iii) are consistent with mitigation plans 
                        approved by the Administrator.

SEC. 203. PREDISASTER HAZARD MITIGATION PROGRAM AUTHORIZATION.

    For each of the first 6 full fiscal years following the date of 
enactment of this Act, there is authorized to be appropriated 
$500,000,000 to carry out the predisaster hazard mitigation program 
under section 203 of the Robert T. Stafford Disaster Assistance and 
Emergency Relief Act (42 U.S.C. 5133).

SEC. 204. NATIONAL FLOOD MAPPING PROGRAM.

    Section 100216 of the Biggert-Waters Flood Insurance Reform Act of 
2012 (42 U.S.C. 4101b) is amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking 
                ``to--'' and all that follows through the end of clause 
                (vi) and inserting ``to all areas of the United 
                States;'';
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
                    (C) in subparagraph (C), by striking ``accurate 
                topography'' and all that follows through the period at 
                the end and inserting ``current and best remote sensing 
                technology; and''; and
                    (D) by adding at the end the following:
                    ``(D) when appropriate, partner with other Federal 
                agencies and private entities in order to meet the 
                objectives of the program.'';
            (2) by redesignating subsection (f) as subsection (g);
            (3) by inserting after subsection (e) the following:
    ``(f) Incorporating Building-Specific Flood Risk Information.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the Sustainable, Affordable, Fair, 
                and Efficient (SAFE) National Flood Insurance Program 
                Reauthorization Act of 2017, the Administrator, in 
                coordination with, and as recommended by, the Technical 
                Mapping Advisory Council, shall establish a dynamic, 
                database-derived digital display environment for flood 
                hazard risk production and dissemination.
                    ``(B) Consultation with states and communities.--In 
                designing and constructing the environment under 
                subparagraph (A), the Administrator shall--
                            ``(i) leverage and partner with States and 
                        communities that have successfully implemented 
                        the same approach; and
                            ``(ii) consider adopting the techniques and 
                        technologies used by States and communities 
                        described in clause (i) and applying them 
                        nationwide.
            ``(2) Digital display.--
                    ``(A) In general.--In carrying out paragraph (1), 
                the Administrator shall create a digital display 
                prompted through dynamic querying of a spatial, 
                relational building database that may not be publically 
                disseminated and that includes--
                            ``(i) special flood hazard areas and base 
                        flood elevations for purposes of lender 
                        compliance with the requirements under section 
                        102 of the Flood Disaster Protection Act of 
                        1973 (42 U.S.C. 4012a); and
                            ``(ii) structure-specific flood risk 
                        information, including, for each property 
                        address--
                                    ``(I) the spatial footprint and 
                                elevation of the structure relative to 
                                special flood hazard areas and base 
                                flood elevations;
                                    ``(II) the most current elevation 
                                certificate applicable to the property;
                                    ``(III) any letter of map changes;
                                    ``(IV) the full risk premium rate 
                                estimated for the structure under 
                                section 1307(a)(1) of the National 
                                Flood Insurance Act of 1968 (42 U.S.C. 
                                4014(a)(1)) based on elevation data;
                                    ``(V) the disclosure described in 
                                section 1308(l) of the National Flood 
                                Insurance Act of 1968 (42 U.S.C. 
                                4015(l)), which shall include--
                                            ``(aa) the extent to which, 
                                        if any, the chargeable premium 
                                        rate applicable to the property 
                                        is less than the full risk 
                                        premium rate under section 
                                        1307(a)(1) of that Act (42 
                                        U.S.C. 4014(a)(1)); and
                                            ``(bb) an explanation of 
                                        the difference described in 
                                        item (aa) and the methodology 
                                        used to rate the property;
                                    ``(VI) the estimated cost to repair 
                                the structure in the case of damage 
                                from floods with recurrence intervals 
                                ranging from the 10 percent annual 
                                chance event to the 0.2 percent annual 
                                chance event;
                                    ``(VII) the cost-effectiveness of 
                                mitigating the structure using common 
                                methods and how the chargeable premium 
                                rate would change based on each 
                                mitigation method; and
                                    ``(VIII) the claims history of the 
                                structure, including the amount and 
                                date of each loss.
                    ``(B) Privacy requirements.--With respect to the 
                database described in subparagraph (A), including any 
                data used to create that database, the Administrator 
                may not disseminate the database to--
                            ``(i) the public; or
                            ``(ii) a private company for use by the 
                        private company.
            ``(3) Database.--
                    ``(A) In general.--The Administrator shall--
                            ``(i) develop a spatial, relational 
                        database of buildings in the national flood 
                        insurance program; and
                            ``(ii) obtain the data necessary to support 
                        the digital display created under paragraph 
                        (2).
                    ``(B) Data.--The data obtained under subparagraph 
                (A) shall include, at a minimum--
                            ``(i) footprints and elevations (including 
                        lowest adjacent grade and first floor) from 
                        Light Detection and Ranging (commonly known as 
                        `LiDAR') data collections or other data 
                        collection methods that meet or exceed the 
                        standards for buildings, as determined by the 
                        Administrator;
                            ``(ii) elevation certificates;
                            ``(iii) parcel, address, and imagery data 
                        necessary for the identification, assessment, 
                        and reduction of flood hazards for individual 
                        properties;
                            ``(iv) flood insurance rate maps, studies, 
                        and supporting data;
                            ``(v) letters of map change; and
                            ``(vi) any other data that the 
                        Administrator determines necessary to collect 
                        to meet the objectives of this section.
            ``(4) Data procurement.--The Administrator shall obtain any 
        data necessary to establish the environment under paragraph 
        (1), including by--
                    ``(A) directing communities participating in the 
                national flood insurance program, by regulation, to 
                collect and supply information, including elevation 
                data, for each structure that obtains a construction or 
                other development permit within--
                            ``(i) a special flood hazard area; or
                            ``(ii) an advisory special flood hazard 
                        area adopted by the community;
                    ``(B) issuing guidelines and standards, as 
                determined by the Administrator;
                    ``(C) partnering with other Federal, State, local, 
                and private stakeholders to the greatest extent 
                possible to obtain and share existing data that meets 
                or exceeds the standards determined by the 
                Administrator under subparagraph (B); and
                    ``(D) contracting with private companies to obtain 
                new LiDAR data collections or elevation certificates.
            ``(5) NFIP premium credit.--The Administrator shall provide 
        a 1-time premium credit of not more than $500 to a policyholder 
        for the purchase of an elevation certificate.
            ``(6) Mass letters of map change.--In coordination with 
        States and communities that have successfully implemented a 
        dynamic, database-derived digital display environment for flood 
        hazard risk production and dissemination, the Administrator 
        shall issue guidelines for the adoption and integration into 
        the National Flood Mapping Program of LiDAR-based letter of map 
        amendment approaches.
            ``(7) Annual report.--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 an annual progress report on the implementation 
        of this subsection, which shall include recommendations to 
        reduce the cost and improve the implementation of this 
        subsection.''; and
            (4) in subsection (g), as so redesignated--
                    (A) by striking ``this section $400,000,000'' and 
                inserting the following: ``this section--
            ``(1) $400,000,000''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; and
            ``(2) $800,000,000 for each of fiscal years 2018 through 
        2023.''.

SEC. 205. REALLOCATION 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 deposit any 
surcharge imposed and collected under subsection (a) in the 
Affordability Assistance Fund established under subsection (a) of 
section 1326 in order to provide financial assistance under subsection 
(b) of that section.''; 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. 206. MULTIFAMILY MITIGATION.

    (a) In General.--Section 1361(d)(1) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4102(d)(1)) is amended, in the matter preceding 
subparagraph (A), by inserting ``(including multifamily buildings in 
urban areas)'' after ``residential buildings''.
    (b) Premium Credit.--Section 1308(k) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended by striking ``the 
Administrator shall'' and all that follows through the period at the 
end and inserting the following: ``the Administrator shall--
            ``(1) take into account the implementation of any 
        mitigation method identified by the Administrator in the 
        guidance issued under section 1361(d) (42 U.S.C. 4102(d)); and
            ``(2) offer a premium credit to a property owner for the 
        implementation of any alternative mitigation method with 
        respect to a multifamily building in an urban area, as 
        described in paragraph (1) of such section 1361(d).''.
    (c) Land Use Controls.--
            (1) In general.--Section 1315(a) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4022(a)) is amended by adding 
        at the end the following:
            ``(3) Land use controls for certain multifamily buildings 
        in urban areas.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered area' means an area that--
                            ``(i) is an urban area; and
                            ``(ii) has been identified as having 
                        special flood hazards.
                    ``(B) Adoption of land use controls.--
                Notwithstanding any other provision of law, the 
                Administrator, under paragraph (1), may require an 
                appropriate public body, with respect to a covered area 
                that is seeking to obtain flood insurance under this 
                title, to adopt land use and control measures for the 
                repair, restoration, or substantial improvement of any 
                mid- or high-rise building that is located in the 
                covered area.
                    ``(C) Community strategy.--With respect to a 
                covered area described in subparagraph (B), the 
                Administrator shall encourage the covered area to 
                develop, and assist the covered area in developing, a 
                comprehensive strategy that--
                            ``(i) reduces flood damage to mid- and 
                        high-rise multifamily buildings in the covered 
                        area that--
                                    ``(I) will be repaired, restored, 
                                or substantially improved; and
                                    ``(II) cannot be elevated;
                            ``(ii) identifies technical mitigation 
                        activities that may be applied to the buildings 
                        described in clause (i), including 
                        considerations for mechanical, electrical, and 
                        utility components, that will protect life and 
                        property;
                            ``(iii) documents that the covered area has 
                        established procedures for--
                                    ``(I) the implementation of 
                                performance standards;
                                    ``(II) requiring evacuation plans; 
                                and
                                    ``(III) developing a maintenance 
                                strategy for any mitigation activity 
                                that is applied under clause (ii); and
                            ``(iv) establishes guidelines for 
                        performance standards that will--
                                    ``(I) allow for a combination of 
                                partial mitigation activities, other 
                                than elevation, for areas (other than 
                                residential areas) in the covered area; 
                                and
                                    ``(II) be applied to mid- and high-
                                rise multifamily buildings in the areas 
                                described in subclause (I).''.
            (2) Land management investigations.--Section 1361(b) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4102(b)) is 
        amended by inserting ``, including whether a State or local 
        government, as applicable, has enacted the requirements 
        described in section 1327(b)'' after ``other building 
        restrictions''.
    (d) Calculation of Risk Premium Rates.--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) Consideration of Alternative Mitigation Methods.--With 
respect to a chargeable rate prescribed for a building described in 
section 1315(a)(3)(B), the Administrator shall ensure that the rate 
properly reflects the reduction in flood risk after adopting the land 
use and control measures described in that section, if applicable.''.

SEC. 207. SENSE OF CONGRESS REGARDING FLOOD MITIGATION ACTIVITIES.

    It is the sense of Congress that the Administrator should consider 
flood mitigation activities that--
            (1) provide benefits to an entire floodplain or community, 
        or to a portion of such a community;
            (2) consider all available and practicable approaches; and
            (3) the Administrator determines--
                    (A) are technically feasible;
                    (B) have the highest net benefits; and
                    (C) are consistent with mitigation plans approved 
                by the Administrator.

SEC. 208. NEW ZONE FOR LEVEE-IMPACTED AREAS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following:
    ``(k) Levee-Impacted Areas.--
            ``(1) In general.--Subject to full implementation of 
        subparagraphs (A)(iii) and (B) of section 100216(b)(1) of the 
        Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
        4101b(b)(1)) and notwithstanding any other provision of law, if 
        a community applies to the Administrator for the remapping of 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 flood insurance rate map in accordance 
        with the Levee Analysis Mapping Procedure initiated by the 
        Administrator to replace the `without levees' approach to a 
        Flood Insurance Study, the Administrator shall--
                    ``(A) establish flood risk zones for those levee-
                impacted areas on such maps, to be known as `AL-E 
                zones', that have an established elevation for 
                community floodplain management; and
                    ``(B) make flood insurance available to properties 
                located within those levee-impacted areas.
            ``(2) Transition.--During the period beginning on the date 
        of enactment of this subsection and ending on the date on which 
        the Administrator develops rates for the various AL-E zones, a 
        structure located in a portion of a community that is located 
        within a levee-impacted area described in paragraph (1) shall 
        be eligible for rates associated with areas of moderate flood 
        hazards.''.

SEC. 209. APPEALS REGARDING EXISTING FLOOD MAPS.

    (a) In General.--
            (1) Right to appeal.--Section 1360 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4101), as amended by section 
        208, is amended by adding at the end the following:
    ``(l) Appeals of Existing Maps.--
            ``(1) Right to appeal.--Subject to paragraph (6), a State 
        or local government, or the owner or lessee of real property, 
        that makes a formal request to the Administrator to update a 
        flood insurance rate map that the Administrator denies may at 
        any time appeal the denial in accordance with this subsection.
            ``(2) Basis for appeal.--The basis for an appeal under this 
        subsection shall be the possession of knowledge or information 
        that--
                    ``(A) the base flood elevation level or designation 
                of any aspect of a flood insurance rate map is 
                scientifically or technically inaccurate; or
                    ``(B) factors exist that mitigate the risk of 
                flooding, including ditches, banks, walls, vegetation, 
                levees, lakes, dams, reservoirs, basin, retention 
                ponds, and other natural or manmade topographical 
                features.
            ``(3) Appeals process.--
                    ``(A) Administrative adjudication.--The 
                Administrator shall determine an appeal under this 
                subsection by making a final adjudication on the 
                record, after providing an opportunity for an 
                administrative hearing.
                    ``(B) Rights upon adverse decision.--
                            ``(i) Optional arbitration.--If an appeal 
                        determined under subparagraph (A) does not 
                        result in a decision in favor of the State, 
                        local government, owner, or lessee, that party 
                        may request that an appeal of the adverse 
                        decision be heard through independent, non-
                        binding arbitration.
                            ``(ii) Process.--The Administrator shall 
                        establish a process for arbitration under 
                        clause (i) under which the arbitrator provides 
                        a non-binding recommendation to the 
                        Administrator.
            ``(4) Relief.--
                    ``(A) Wholly successful appeals.--If the 
                Administrator determines, in an appeal under this 
                subsection, that the property of a policyholder that 
                had been included in a special flood hazard area under 
                the flood insurance rate map is actually not in a 
                special flood hazard area--
                            ``(i) the policyholder may cancel the 
                        policy at any time during the year in which the 
                        Administrator makes the determination; and
                            ``(ii) the Administrator shall provide the 
                        policyholder a refund equal to the amount of--
                                    ``(I) any premiums that the 
                                policyholder paid during the year 
                                described in clause (i); and
                                    ``(II) any premiums that the 
                                policyholder paid for flood insurance 
                                coverage that the policyholder was 
                                required to purchase or maintain during 
                                the 2-year period preceding the year 
                                described in clause (i).
                    ``(B) Partially successful appeals.--If the 
                Administrator determines in an appeal under this 
                subsection that mitigating factors have reduced, but 
                not eliminated, the risk of flooding to a property, the 
                Administrator shall--
                            ``(i) reduce the amount of flood insurance 
                        coverage required to be maintained for the 
                        property by the ratio of the successful portion 
                        of the appeal as compared to the entire appeal; 
                        and
                            ``(ii) provide the policyholder a refund 
                        equal to the difference between--
                                    ``(I) the amount of any premiums 
                                that the policyholder paid during the 
                                period--
                                            ``(aa) beginning on the 
                                        later of--

                                                    ``(AA) the date on 
                                                which the mitigating 
                                                factor was created; or

                                                    ``(BB) January 1 of 
                                                the second year 
                                                preceding the date on 
                                                which the determination 
                                                is made; and

                                            ``(bb) ending on the date 
                                        on which the reduction in the 
                                        amount of flood insurance 
                                        required, as described in 
                                        clause (i), takes effect; and
                                    ``(II) the amount of premiums that 
                                the policyholder would have been 
                                required to pay if the reduced amount 
                                of flood insurance coverage required, 
                                as described in clause (i), had been in 
                                effect during the period described in 
                                subclause (I) of this clause.
                    ``(C) Additional relief.--The Administrator may 
                provide additional refunds in excess of the amounts 
                required under subparagraphs (A) and (B) if the 
                Administrator determines that such additional refunds 
                are warranted.
            ``(5) Recovery of costs.--
                    ``(A) Appeal expenses.--If a State or local 
                government, or the owner or lessee of real property, 
                incurs any expense in connection with an appeal under 
                this subsection that is based on a scientific or 
                technical error made by the Administrator and that is 
                successful in whole or part regarding the designation 
                of the base flood elevation or any aspect of a flood 
                insurance rate map, including elevation or designation 
                of a special flood hazard area, the Administrator shall 
                reimburse the State, local government, owner, or lessee 
                in accordance with subparagraph (B).
                    ``(B) Reimbursable expenses.--The Administrator--
                            ``(i) may reimburse a party under 
                        subparagraph (A) for reasonable expenses 
                        described in that subparagraph--
                                    ``(I) including for a service 
                                provided by a surveyor, engineer, or 
                                scientific expert; and
                                    ``(II) to the extent measured by 
                                the ratio of the successful portion of 
                                the appeal as compared to the entire 
                                appeal; and
                            ``(ii) may not reimburse a party under 
                        subparagraph (A) for--
                                    ``(I) the cost of legal services; 
                                or
                                    ``(II) the payment of any fee or 
                                expense, the payment of which was 
                                agreed to be contingent upon the result 
                                of the appeal.
            ``(6) Guidance.--The Administrator shall issue guidance to 
        implement this subsection, which shall not be subject to the 
        notice and comment requirements under section 553 of title 5, 
        United States Code.''.
            (2) Technical and conforming amendments.--Section 1310(a) 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) 
        is amended--
                    (A) in paragraph (7), by striking ``and'' at the 
                end;
                    (B) in paragraph (8), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) for providing reimbursements of expenses of flood 
        insurance rate map appeals under section 1360(k)(5).''.
    (b) Deadline.--Not later than 180 days after the date of enactment 
of this Act, the Administrator shall issue the guidance required under 
subsection (l)(6) of section 1360 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4101), as added by subsection (a) of this section.

                        TITLE III--COST SAVINGS

SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS.

    (a) In General.--During the 6-year period beginning on the date of 
enactment of this Act, the Secretary of the Treasury may not charge the 
Administrator interest on amounts borrowed by the Administrator under 
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)) that were outstanding as of that date of enactment.
    (b) No Retroactive Accrual.--After the 6-year period described in 
subsection (a), the Secretary of the Treasury shall not require the 
Administrator to repay any interest that, but for that subsection, 
would have accrued on the borrowed amounts described in that subsection 
during that 6-year period.

SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSATION.

    (a) In General.--Section 1311 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4018) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Limitation on Compensation; Minimum Agent Commissions.--In 
negotiating with appropriate representatives of the insurance industry 
under subsection (a), the Administrator shall ensure that--
            ``(1) any reimbursement paid to a property and casualty 
        insurance company for selling, writing, and servicing flood 
        insurance policies is not more than 22.46 percent of the 
        aggregate amount of premiums charged by the insurance company; 
        and
            ``(2) an insurance company pays a portion of the 
        reimbursement described in paragraph (1) to agents of the 
        company as a commission, in an amount that is not less than 15 
        percent of the aggregate amount of the premiums sold by the 
        agent.''.
    (b) Technical and Conforming Amendments.--Section 1311 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4018), as amended by 
subsection (a), is amended--
            (1) in subsection (a), by striking ``The Administrator'' 
        and inserting ``In General.--The Administrator''; and
            (2) in subsection (c), by striking ``For purposes of 
        subsection (a)'' and inserting ``Definitions.--For purposes of 
        this section''.

SEC. 303. TAXPAYER PROTECTION.

    Section 1360(g) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(g)) is amended--
            (1) in the first sentence, by inserting ``, subject to the 
        following sentence,'' after ``at a reasonable cost''; and
            (2) by inserting after the first sentence the following: 
        ``The Administrator shall develop a fee schedule based on 
        recovering the actual costs of providing flood insurance rate 
        maps to such other persons, and shall charge a fee based on the 
        schedule to any private entity for the use of such a map.''.

SEC. 304. VENDOR COSTS; TRANSPARENCY.

    (a) In General.--Section 100224(d) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4081 note) is amended--
            (1) by striking ``Not later than 12 months after the date 
        of enactment of this Act, the Administrator'' and inserting the 
        following:
                    ``(A) In general.--The Administrator''; and
            (2) by adding at the end the following:
                    ``(B) Vendor costs; transparency.--In issuing the 
                rule under subparagraph (A), the Administrator shall--
                            ``(i) develop a schedule to determine the 
                        actual costs of Write Your Own vendors, 
                        including claims adjusters and engineering 
                        companies;
                            ``(ii) provide that if a Write Your Own 
                        company requests reimbursement for the costs of 
                        a service or product provided to the company by 
                        a vendor, the Administrator only reimburses the 
                        company for the actual costs of the service or 
                        products; and
                            ``(iii) require that all reimbursements to 
                        Write Your Own companies be made public, 
                        including a description of the product or 
                        service provided to which the reimbursement 
                        pertains.''.
    (b) Deadline for Revised Rule.--Not later than 90 days after the 
date of enactment of this Act, the Administrator shall issue a revised 
rule under section 100224(d) of the Biggert-Waters Flood Insurance 
Reform Act of 2012 (42 U.S.C. 4081 note), as amended by subsection (a).

                    TITLE IV--CLAIMS PROCESS REFORM

SEC. 401. EARTH MOVEMENT CLARIFICATION.

    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 under 
the national flood insurance program 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.''.

SEC. 402. TREATMENT OF BASEMENTS.

    (a) Basement Clarification.--
            (1) Definition.--In this subsection, the term ``pre-FIRM 
        condominium building'' means a condominium building that was 
        not constructed or substantially improved after the later of--
                    (A) December 31, 1974; or
                    (B) the effective date of the initial flood 
                insurance rate map published by the Administrator under 
                section 1360 of the National Flood Insurance Act of 
                1968 (42 U.S.C. 4101) for the area in which the 
                building is located.
            (2) Amendment to regulations.--The Administrator shall 
        amend section 59.1 of title 44, Code of Federal Regulations, to 
        exclude from the definition of the term ``basement'' any pre-
        FIRM condominium building, the lowest floor of which is not 
        more than 4 feet below the lowest adjacent grade.
    (b) Study on Consequences of Street-Raising.--
            (1) Definition.--In this subsection, the term ``affected 
        property'' means a property containing an area--
                    (A) the floor of which was located at or above 
                grade before the community raised the street adjacent 
                to the property; and
                    (B) after the street-raising described in 
                subparagraph (A), that was designated as a basement 
                because of the street-raising.
            (2) Study; report.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall study and submit 
        to Congress a report on the consequences of street-raising on 
        flood insurance coverage for an affected property under the 
        National Flood Insurance Program, including the cost 
        implications for the property owner.

SEC. 403. MOLD DAMAGE CLARIFICATION.

    The Administrator shall amend the Standard Flood Insurance Policy 
to provide that--
            (1) as a general rule, loss caused by water, moisture, 
        mildew, or mold caused by a flood is covered by flood insurance 
        under the National Flood Insurance Program;
            (2) the exemption from coverage for water, moisture, 
        mildew, or mold damage caused by a policyholder who is truly 
        derelict in inspecting or maintaining a property after a flood 
        recedes is a limited exemption;
            (3) in the case of water, moisture, mildew, or mold damage 
        described in paragraph (2), only the amount of water, moisture, 
        mildew, or mold that built up because of the dereliction of 
        duty, and only during the time when the water, moisture, 
        mildew, or mold build-up reasonably could have been mitigated, 
        shall not be covered;
            (4) the determination that a policyholder was truly 
        derelict as described in paragraph (2) is a high bar to meet; 
        and
            (5) the evaluation of whether a policyholder was truly 
        derelict as described in paragraph (2) shall be made in light 
        of the behavior that could reasonably be expected from a 
        survivor in the aftermath of a particular flood event, which 
        may include a natural disaster, given the challenges facing a 
        policyholder in that situation, including--
                    (A) difficulty in inspecting or maintaining the 
                property;
                    (B) the need to address other, more immediate 
                priorities, including the health and well-being of the 
                policyholder and his or her family, preservation of 
                basic items, displacement, shock, and other issues that 
                make inspection and mitigation a near-term challenge; 
                and
                    (C) difficulty in finding qualified experts during 
                the surge of demand following a flood.

SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.

    (a) Extension of Deadline To File Appeal; Enforcing Deadline for 
FEMA To Resolve Appeal; Optional Arbitration for Appeals.--Section 1312 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended 
by adding at the end the following:
    ``(d) Appeal of Decisions Relating to Flood Insurance Coverage.--
            ``(1) In general.--The Administrator shall, by regulation, 
        establish an appeals process through which holders of a flood 
        insurance policy may appeal the decisions, with respect to 
        claims, proofs of loss, and loss estimates relating to such 
        flood insurance policy, of any--
                    ``(A) insurance agent or adjuster, or insurance 
                company; or
                    ``(B) employee or contractor of the Federal 
                Emergency Management Agency.
            ``(2) Deadline to file appeal.--The Administrator shall 
        establish a deadline for filing an appeal under this subsection 
        that is not less than 1 year after the date on which the 
        decision being appealed was made.
            ``(3) Notification upon initial denial of claim.--The 
        Administrator shall ensure that a claimant is provided with the 
        rules, forms, and deadlines for an appeal under this subsection 
        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 1333 or 1341, as applicable, 
                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.
            ``(4) Deadline to resolve appeal.--
                    ``(A) In general.--Not later than 90 days after the 
                date as of which a policyholder has submitted all 
                necessary information relating to an appeal under this 
                subsection, the Administrator shall provide an appeal 
                decision in writing to the policyholder and insurer, 
                including specific information for the resolution of 
                the appeal.
                    ``(B) Enforcement.--If the Administrator does not 
                comply with the deadline under subparagraph (A)--
                            ``(i) the appeal shall be deemed granted; 
                        and
                            ``(ii) the Administrator shall award the 
                        policyholder the full amount of the claim.
                    ``(C) Notification upon denial of appeal.--If the 
                Administrator denies an appeal filed by a policyholder 
                under this subsection, the Administrator shall include 
                with the notice of denial--
                            ``(i) an explanation of the legal options 
                        of the policyholder for further challenging the 
                        denial; and
                            ``(ii) the date on which the period of 
                        limitation for instituting an action against 
                        the Administrator on the claim under section 
                        1333 or 1341, as applicable, will end.
    ``(e) Optional Arbitration.--Not later than 180 days after the date 
of enactment of this subsection, the Administrator shall by regulation 
establish a process through which a flood insurance policyholder, 
instead of submitting an appeal under subsection (d) to the 
Administrator, may request that the appeal be heard through 
independent, binding arbitration.''.
    (b) Relation to Regulations and Other Law.--Nothing in the 
amendment made by subsection (a) shall be construed to require the 
Administrator to repeal the regulations promulgated under section 205 
of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
(42 U.S.C. 4011 note), or to promulgate new regulations, except as 
necessary to implement that amendment.

SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS BY WRITE YOUR OWN COMPANIES.

    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) Accountability for Underpayments.--The Administrator shall 
require that, if the Administrator determines through an audit that the 
pool or an insurance company or other private organization described in 
subsection (a) has underpaid a claim of a policyholder--
            ``(1) the pool, insurance company, or other private 
        organization, as applicable, shall pay the amount of the 
        difference to the Administrator; and
            ``(2) the Administrator shall deposit the amount paid under 
        paragraph (1) in the National Flood Insurance Fund.''.

SEC. 406. POLICYHOLDER RIGHT TO KNOW.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 404, is amended by adding at the end the 
following:
    ``(f) Availability of Claim-Related Documents.--
            ``(1) Definition.--In this subsection, the term `claim-
        related document' means any document that is prepared for the 
        purposes of assessing a claim for losses covered by flood 
        insurance made available under this title.
            ``(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) not later than 7 days after receiving a 
                request from a claimant or an authorized representative 
                of a claimant for a copy of a claim-related document 
                described in subparagraph (A) that pertains to the 
                claimant, shall provide the copy to the claimant or 
                representative; 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.''.

SEC. 407. INCREASING STATUTE OF LIMITATIONS FOR LAWSUITS.

    (a) 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.--
            ``(1) Right of action.--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 that subsection, 
        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 not later than 2 years after 
        the later of--
                    ``(A) 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, the date on 
                which the claimant receives notice of a final 
                determination upon appeal denying the claim in whole or 
                in part.
            ``(2) Jurisdiction.--A court described in paragraph (1) 
        shall have original exclusive jurisdiction to hear and 
        determine an action under that paragraph without regard to the 
        amount in controversy.''.
    (b) 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.--
            ``(1) Right of action.--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, 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 not later than 2 years after the later of--
                    ``(A) 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, the date on 
                which the claimant receives notice of a final 
                determination upon appeal denying the claim in whole or 
                in part.
            ``(2) Jurisdiction.--A court described in paragraph (1) 
        shall have original exclusive jurisdiction to hear and 
        determine an action under that paragraph without regard to the 
        amount in controversy.''.

SEC. 408. ATTORNEY FEE SHIFTING.

    (a) Administrative Appeals.--Subsection (d) of section 1312 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by 
section 404, is amended by adding at the end the following:
            ``(5) Awards for costs in administrative proceedings.--
                    ``(A) In general.--If the claimant prevails in any 
                appeal to the Administrator of the disallowance or 
                partial disallowance of a claim for losses covered by 
                flood insurance made available under this title, the 
                Administrator shall award costs of the appeal, 
                including attorney fees, any proceeding expenses, and 
                engineering and other expert expenses, to the claimant.
                    ``(B) Definition.--For purposes of this paragraph, 
                the term `prevail' means to be awarded a greater amount 
                by the Administrator than the amount of the last, best 
                offer from the Administrator with respect to the claim 
                of the claimant.''.
    (b) Judicial Review.--
            (1) Government program with industry assistance.--
        Subsection (b) of section 1341 of the National Flood Insurance 
        Act of 1968 (42 U.S.C. 4072), as added by section 407, is 
        amended by adding at the end the following:
            ``(3) Attorney fees and other litigation costs.--
                    ``(A) In general.--If the claimant prevails in an 
                action under this subsection, the court shall award 
                reasonable costs of litigation, including attorney 
                fees, litigation expenses, and engineering and other 
                expert expenses, to the claimant.
                    ``(B) Subrogation.--Any award under subparagraph 
                (A) shall be paid by the Administrator and, upon such 
                payment, the Administrator shall be subrogated to the 
                rights of the claimant to recover such costs for which 
                the Administrator has compensated the claimant from any 
                insurance company or other insurer or insurance 
                adjustment organization that may be responsible for the 
                disallowance or partial disallowance of the claim.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `prevail' means to be awarded a greater amount 
                by the court than the amount of the last, best offer 
                from the Administrator with respect to the claim of the 
                claimant.''.
            (2) Industry program with federal financial assistance.--
        Subsection (b) of section 1333 of the National Flood Insurance 
        Act of 1968 (42 U.S.C. 4053), as amended by section 407, is 
        amended by adding at the end the following:
            ``(3) Attorney fees and other litigation costs.--
                    ``(A) In general.--If the claimant prevails in an 
                action under this subsection, the court shall award 
                reasonable costs of litigation, including attorney 
                fees, litigation expenses, and engineering and other 
                expert expenses, to the claimant.
                    ``(B) Subrogation.--Any award under subparagraph 
                (A) shall be paid by the Administrator and, upon such 
                payment, the Administrator shall be subrogated to the 
                rights of the claimant to recover such costs for which 
                the Administrator has compensated the claimant from any 
                company or other insurer responsible for the 
                disallowance or partial disallowance of the claim.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `prevail' means to be awarded a greater amount 
                by the court than the amount of the last, best offer 
                from the insurer or Administrator with respect to the 
                claim of the claimant.''.

SEC. 409. DOJ DEFENSE AGAINST POLICYHOLDER LAWSUITS.

    Subsection (b) of section 1341 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4072), as amended by section 408, is amended by 
adding at the end the following:
            ``(4) Representation by department of justice.--If a 
        claimant institutes an action under this subsection--
                    ``(A) the Administrator shall refer the matter to 
                the Attorney General; and
                    ``(B) the Attorney General--
                            ``(i) shall represent the Administrator or 
                        the Write Your Own company, as applicable, in 
                        the action; and
                            ``(ii) may not seek to have the court 
                        dismiss an action with potential meritorious 
                        claims based on good faith errors or omissions 
                        by the claimant in the claimant's proof of 
                        loss.''.

SEC. 410. STUDY ON PARTICIPATION RATES.

    (a) Definitions.--In this section--
            (1) the term ``500-year floodplain'' has the meaning given 
        the term in section 100202(a) of the Biggert-Waters Flood 
        Insurance Reform Act of 2012 (40 U.S.C. 4004(a));
            (2) the terms ``Federal agency lender'', ``improved real 
        estate'', and ``regulated lending institution'' have the 
        meanings given those terms in section 3(a) of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and
            (3) the term ``property with a federally backed mortgage'' 
        means improved real estate or a mobile home securing a loan 
        that was--
                    (A) made by a regulated lending institution or 
                Federal agency lender; or
                    (B) purchased by the Federal National Mortgage 
                Association or the Federal Home Loan Mortgage 
                Corporation.
    (b) Study.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall study and submit to Congress a report 
that describes--
            (1) the percentage of properties with federally backed 
        mortgages located in an area having special flood hazards that 
        are covered by flood insurance that satisfies the requirement 
        under section 102(b) of the Flood Disaster Protection Act of 
        1973 (42 U.S.C. 4012a(b)); and
            (2) the percentage of properties with federally backed 
        mortgages located in the 500-year floodplain that are covered 
        by flood insurance that would satisfy the requirement described 
        in paragraph (1) if that requirement applied to such 
        properties.

SEC. 411. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.

    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. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.

    ``(a) Establishment.--There is established an advisory committee to 
be known as the Federal Flood Insurance Advisory Committee (in this 
section referred to as the `Committee').
    ``(b) Membership.--
            ``(1) Members.--The Committee shall consist of--
                    ``(A) the Administrator, or the designee thereof;
                    ``(B) the Secretary of the Treasury, or the 
                designee thereof; and
                    ``(C) additional members appointed by the 
                Administrator or the designee thereof, who shall be--
                            ``(i) 2 representatives of the property and 
                        casualty insurance sector;
                            ``(ii) 1 individual who served in the past, 
                        or is currently serving, as an insurance 
                        regulator of a State, the District of Columbia, 
                        the Commonwealth of Puerto Rico, Guam, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Virgin Islands, American Samoa, or any 
                        federally-recognized Indian tribe;
                            ``(iii) 1 representative of the financial 
                        sector or insurance sector who is involved in 
                        risk transfers, including reinsurance, 
                        resilience bonds, and other insurance-linked 
                        securities;
                            ``(iv) 1 actuary with demonstrated high-
                        level knowledge of catastrophic risk insurance;
                            ``(v) 2 insurance professionals with 
                        demonstrated experience with the sale of flood 
                        insurance under the national flood insurance 
                        program;
                            ``(vi) 2 representatives of catastrophic 
                        risk insurance programs;
                            ``(vii) 1 insurance claims specialist;
                            ``(viii) 1 representative of a recognized 
                        consumer advocacy organization;
                            ``(ix) 1 individual having demonstrated 
                        expertise in the challenges in insuring low-
                        income communities;
                            ``(x) 1 representative from an academic 
                        institution who has demonstrated expertise in 
                        insurance; and
                            ``(xi) any other recognized experts in the 
                        field of insurance that the Administrator 
                        considers necessary.
            ``(2) Qualifications.--In appointing members under 
        paragraph (1)(C), the Administrator shall, to the maximum 
        extent practicable, ensure the membership of the Committee has 
        a balance of members reflecting geographic diversity, including 
        representation from areas inland or with coastline identified 
        by the Administrator as at high risk for flooding or as areas 
        having special flood hazards.
    ``(c) Duties.--The Committee shall review, and make recommendations 
to the Administrator, upon request, on matters related to the insurance 
aspects of the national flood insurance program, including ratemaking, 
technology to administer insurance, risk assessment, actuarial 
practices, claims practices, sales and insurance delivery, compensation 
and allowances, generally and based on the complexities of the program, 
and best insurance practices.
    ``(d) Chairperson.--The members of the Committee shall elect 1 
member to serve as the chairperson of the Committee (in this subsection 
referred to as the `Chairperson').
    ``(e) Compensation.--Members of the Committee shall receive no 
additional compensation by reason of their service on the Committee.
    ``(f) Meetings and Actions.--
            ``(1) In general.--The Committee--
                    ``(A) shall meet not less frequently than twice 
                each year at the request of the Chairperson or a 
                majority of the members of the Committee; and
                    ``(B) may take action by a vote of the majority of 
                the members in accordance with the charter of the 
                Committee.
            ``(2) Initial meeting.--The Administrator, or a designee 
        thereof, shall request and coordinate the initial meeting of 
        the Committee.
    ``(g) Staff of FEMA.--Upon the request of the Chairperson, the 
Administrator may detail, on a nonreimbursable basis, personnel of the 
Federal Emergency Management Agency to assist the Committee in carrying 
out the duties of the Committee.
    ``(h) Powers.--In carrying out this section, the Committee may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as the Committee considers appropriate.
    ``(i) Reports to Congress.--The Administrator, on an annual basis, 
shall report to the Committee on Financial Services of the House of 
Representatives, the Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Office of Management and Budget on--
            ``(1) the recommendations made by the Committee;
            ``(2) actions taken by the Federal Emergency Management 
        Agency to address the recommendations described in paragraph 
        (1) to improve the insurance aspects of the National Flood 
        Insurance Program; and
            ``(3) any recommendations described in paragraph (1) that 
        have been deferred or not acted upon, together with an 
        explanatory statement with respect to those recommendations.
    ``(j) Applicability of the Federal Advisory Committee Act.--Section 
14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Committee.''.

SEC. 412. AUTHORITY TO TERMINATE CONTRACTORS AND VENDORS.

    (a) In General.--Part C of chapter II of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by section 
411, is amended by adding at the end the following:

``SEC. 1350. TERMINATION OF CONTRACTS.

    ``(a) Definition.--In this section, the term `covered entity' means 
any attorney, law firm, consultant, or third-party company that 
provides services to a Write Your Own company.
    ``(b) Termination.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Administrator may terminate a contract or other 
        agreement between a covered entity and a Write Your Own company 
        if the Administrator--
                    ``(A) determines that the covered entity has 
                engaged in conduct that is detrimental to the national 
                flood insurance program; and
                    ``(B) not later than 14 days before terminating the 
                contract or other agreement, provided notice to the 
                covered entity of the termination.
            ``(2) Appeal.--The Administrator shall establish a process 
        for a covered entity to appeal the termination of a contract or 
        other agreement under paragraph (1).
            ``(3) Early termination payouts.--The Administrator or a 
        Write Your Own company is not required to make any early 
        termination payout to a covered entity with respect to a 
        contract or agreement with the Write Your Own company that the 
        Administrator terminates under paragraph (1).''.
    (b) Effective Date; Applicability.--The amendment made by 
subsection (a) shall apply to any contract or other agreement between a 
covered entity, as defined in section 1350(a) of the National Flood 
Insurance Act of 1968, as added by subsection (a), and a Write Your Own 
company that is entered into on or after the date of enactment of this 
Act.

SEC. 413. EASING PROOF OF LOSS REQUIREMENTS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 406, is amended by 
adding at the end the following:
    ``(g) Proof of Loss.--
            ``(1) Required notice.--Not later than 1 year after the 
        date on which damage to or loss of a property that is covered 
        by flood insurance made available under this title occurs, the 
        policyholder with respect to the covered property may submit a 
        proof of loss notice that contains only such information as is 
        necessary to document the damage or loss, including--
                    ``(A) the amount claimed for the damage to or loss 
                of the property; and
                    ``(B) the signature of the policyholder attesting 
                to the accuracy of the amount claimed and the 
                information supplied to document the damage or loss.
            ``(2) Supplemental proof.--Not later than 1 year after the 
        date on which a policyholder submits a proof of loss notice 
        under paragraph (1) with respect to a property that is covered 
        by flood insurance made available under this title, the 
        policyholder may submit supplemental information to support an 
        increase in the amount claimed in the proof of loss notice if 
        the policyholder discovers further damage to the property or 
        otherwise determines that the amount claimed was insufficient.
            ``(3) Errors or omissions.--An error or honest omission in 
        a proof of loss notice or in supplemental information submitted 
        by a policyholder under paragraph (1) or (2), respectively, 
        with respect to a property that is covered by flood insurance 
        made available under this title may not be used to deny the 
        right of the policyholder--
                    ``(A) to receive a payment for the damage to or 
                loss of the property; or
                    ``(B) to appeal or otherwise challenge the amount 
                received for the damage to or loss of the property.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any claim for damage to or loss of property that is covered by 
flood insurance under the National Flood Insurance Program that is 
pending on, or made after, the date of enactment of this Act.

SEC. 414. ELEVATION CERTIFICATES.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.), as amended by section 103, is amended by adding at the 
end the following:

``SEC. 1327. ELEVATION CERTIFICATES.

    ``(a) No Expiration Date.--Surveyed elevation data and other 
information relating to a building that is recorded on a National Flood 
Insurance Program Elevation Certificate by an individual licensed to 
record that information shall continue to be in effect, and the 
Elevation Certificate shall not expire, until the date on which there 
is an alteration in the building or to the topography surrounding the 
perimeter of the building.
    ``(b) Elevation Datum.--With respect to a National Flood Insurance 
Program Elevation Certificate for a building, if the elevation datum 
used to determine the base flood elevation at the building is different 
than the elevation datum used to calculate the building elevation, a 
datum conversion shall be performed to ensure that the same elevation 
datum is used to calculate the base flood elevation and the building 
elevation.''.

SEC. 415. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator shall--
            (1) implement the requirement for monthly installment 
        payments of premiums provided under section 1308(g) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)); or
            (2) submit to Congress an explanation of the reasons why 
        the Administrator cannot implement the requirement described in 
        paragraph (1) during that 180-day period.

SEC. 416. PILOT PROGRAM FOR PRE-EXISTING STRUCTURAL CONDITIONS.

    (a) Definitions.--In this section--
            (1) the term ``covered property'' means a property that is 
        or may be covered by flood insurance under the National Flood 
        Insurance Program; and
            (2) the term ``covered policyholder'' means a policyholder 
        or potential policyholder of flood insurance under the National 
        Flood Insurance Program for a covered property.
    (b) Pilot Program.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall establish a pilot 
program under which Write Your Own companies and National Flood 
Insurance Program direct servicers shall, at the request of a covered 
policyholder and before providing or renewing insurance coverage with 
respect to a covered property under the National Flood Insurance 
Program, investigate the pre-existing structural condition of the 
covered property for any issues that could result in the denial of a 
claim under the National Flood Insurance Program for damage to or loss 
of the covered property.

SEC. 417. DEADLINE FOR CLAIM PROCESSING.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 413, is amended by 
adding at the end the following:
    ``(h) Deadline for Approval of Claims.--
            ``(1) In general.--The Administrator shall provide that, in 
        the case of a claim for damage to or loss of property that is 
        covered by flood insurance made available under this title--
                    ``(A) except as provided in paragraph (2), not 
                later than 30 days after the date on which the claim is 
                made--
                            ``(i) a final determination regarding 
                        approval of the claim for payment or 
                        disapproval of the claim shall be made; and
                            ``(ii) notification of the determination 
                        shall be provided to the insured making the 
                        claim; and
                    ``(B) payment of an approved claim shall be made as 
                soon as possible after that approval.
            ``(2) Extension of deadline.--The Administrator shall--
                    ``(A) provide that the period described in 
                paragraph (1)(A) may be extended by a single additional 
                period of 15 days under extraordinary circumstances; 
                and
                    ``(B) by regulation, establish criteria for--
                            ``(i) demonstrating the extraordinary 
                        circumstances described in subparagraph (A); 
                        and
                            ``(ii) determining to which claims the 
                        extraordinary circumstances described in 
                        subparagraph (A) apply.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any claim for damage to or loss of property that is covered by 
flood insurance made available under the National Flood Insurance 
Program that is pending on, or made after, the date of enactment of 
this Act.

SEC. 418. ENGINEER OVERSIGHT AND CERTIFICATION.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by section 412, is amended by 
adding at the end the following:

``SEC. 1351. OVERSIGHT AND CERTIFICATION OF ENGINEERS.

    ``(a) Definition.--In this section, the term `covered engineering 
services' means engineering services provided in connection with 
insurance coverage provided under this title.
    ``(b) Qualifications.--The Administrator shall require that any 
individual who provides covered engineering services, including 
services in connection with assessing any claim for losses covered by a 
policy for that coverage, shall--
            ``(1) have registered with and certified to the 
        Administrator that the engineer is professionally licensed to 
        practice as an engineer in the State in which the engineer is 
        providing the covered engineering services;
            ``(2) have expertise in a particular discipline of engineer 
        or act within the area of the competency of the engineer, as 
        the Administrator shall require; and
            ``(3) be certified by the Administrator pursuant to 
        subsection (c).
    ``(c) Certification by FEMA.--
            ``(1) Requirement.--The Administrator shall carry out a 
        program to certify engineers as qualified to provide covered 
        engineering services.
            ``(2) Contents.--The program carried out under paragraph 
        (1) shall--
                    ``(A) include an initial training seminar;
                    ``(B) provide such standards and testing 
                requirements as the Administrator shall establish; and
                    ``(C) require an annual renewal of certification 
                through continuing education.
    ``(d) Fees.--
            ``(1) Standardized schedule.--The Administrator shall 
        establish a standardized fee schedule for all covered 
        engineering services, which shall be similar to the fee 
        schedule of the Administrator used for companies adjusting 
        claims under insurance coverage provided under this title.
            ``(2) Reimbursement.--Any reimbursement or other allowance, 
        payment, or compensation provided by the Administrator to a 
        Write Your Own company with respect to covered engineered 
        services may not exceed the applicable standardized fees for 
        those services established under paragraph (1).
    ``(e) Identification Numbers.--The Administrator shall establish a 
system to provide a unique numerical identifier for each engineer who 
provides covered engineering services to assist in tracking past 
performance in the provision of those services.
    ``(f) Submission of Documentation.--With respect to a Write Your 
Own company, the Administrator shall--
            ``(1) require the Write Your Own company to obtain from 
        each provider of covered engineering services for the Write 
        Your Own company, including any subcontractor--
                    ``(A) documentation sufficient to itemize and 
                disaggregate the costs and fees for those services, 
                including the costs and fees for any subcontractor; and
                    ``(B) all photos, notes, draft reports, and other 
                documentation relating to providing those services in 
                connection with a claim under insurance coverage 
                provided under this title;
            ``(2) make available to the Write Your Own company--
                    ``(A) the fee schedule established under subsection 
                (d)(1); and
                    ``(B) such other information as may be necessary to 
                enable the Write Your Own company to determine whether 
                the costs and fees charged by providers of covered 
                engineering services are reasonable in relation to the 
                services provided; and
            ``(3) require the Write Your Own company to make available 
        to the Administrator, before any reimbursement or other 
        allowance, payment, or compensation is provided to the Write 
        Your Own company in connection with covered engineering 
        services provided, all supporting documentation relating to 
        those services.''.

SEC. 419. ENGINEER REPORTS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 417, is amended by adding at the end the 
following:
    ``(i) Final Engineering Reports.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered claim' means any claim for 
                losses covered by a policy for flood insurance coverage 
                provided under this title; and
                    ``(B) the term `final engineering report' means an 
                engineering report, survey, or other document in 
                connection with a covered claim that--
                            ``(i) is based on the on-site inspection;
                            ``(ii) contains final conclusions with 
                        respect to an engineering issue or issues 
                        involved in the claim; and
                            ``(iii) is signed by the responsible in 
                        charge or affixed with the seal of the 
                        responsible in charge, or both.
            ``(2) Prohibition on manipulation and transmission to third 
        parties.--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 covered claim, the final engineering 
        report--
                    ``(A) may not--
                            ``(i) include alterations by, or at the 
                        request of, anyone other than the responsible 
                        in charge for the report; or
                            ``(ii) be transmitted to any other person 
                        before the final engineering report is 
                        transmitted to the policyholder who submitted 
                        the covered claim; and
                    ``(B) shall include a certification, signed by the 
                responsible in charge for the final engineering report, 
                that the final engineering report does not contain any 
                alterations described in subparagraph (A).
            ``(3) Transmission of report without approval.--A Write 
        Your Own company or a national flood insurance program direct 
        servicer may, without obtaining further review or approval by 
        the Administrator, transmit to a policyholder a final 
        engineering report in the possession of the Write Your Own 
        company or the direct servicer in connection with a covered 
        claim submitted by the policyholder.''.

SEC. 420. IMPROVED TRAINING OF AGENTS AND ADJUSTERS.

    (a) Agent Training.--
            (1) In general.--The Administrator shall require each 
        insurance agent that issues standard flood insurance policies 
        on behalf of the National Flood Insurance Program (under the 
        Write Your Own Program) or directly from the National Flood 
        Insurance Program to take--
                    (A) an introductory course that instructs insurance 
                agents on how to fill out an application for a flood 
                insurance policy; and
                    (B) annual continuing education courses on--
                            (i) any changes in the flood insurance 
                        manual or the National Flood Insurance Program 
                        Elevation Certificate--
                            (ii) any increased costs of compliance;
                            (iii) flood insurance mapping; and
                            (iv) any other modifications to the 
                        National Flood Insurance Program that influence 
                        the rating of a flood insurance policy.
            (2) Record of training.--The Administrator shall maintain a 
        record of each insurance agent that takes a course described in 
        subparagraph (A) or (B) of paragraph (1).
    (b) Certification of Adjusters.--
            (1) In general.--Each insurance claims adjuster acting as 
        an insurance agent for a Write Your Own company shall--
                    (A) by certified by the Administrator to act as an 
                insurance agent; or
                    (B) act under the direct supervision of an 
                insurance claims adjuster certified under the National 
                Flood Insurance Program.
            (2) Online course.--
                    (A) In general.--Each insurance claims adjuster 
                responding to a major disaster declared by the 
                President under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (42 U.S.C. 
                5170) shall, if determined appropriate by the Federal 
                coordinating officer operating in the affected area, 
                take an online refresher course provided by the 
                Administrator to prepare the insurance claims adjuster 
                for the unique circumstances of the major disaster.
                    (B) Record of training.--The Administrator shall 
                maintain a record of each insurance claims adjuster 
                that takes an online refresher course described in 
                subparagraph (A).
    (c) Local Floodplain Managers.--Each regional office of the Federal 
Emergency Management Agency shall--
            (1) provide training to local floodplain managers in the 
        region on the responsibilities and procedures of local 
        floodplain managers with respect to conducting substantial 
        damage and substantial improvement determinations; and
            (2) work with applicable State agencies to provide the 
        training described in paragraph (1) and verify that local 
        floodplain managers are completing the training.

SEC. 421. AGENT ADVISORY COUNCIL.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by section 418, is amended by 
adding at the end the following:

``SEC. 1352. AGENT ADVISORY COUNCIL.

    ``(a) Establishment.--There is established a council to be known as 
the Agent Advisory Council (in this section referred to as the 
`Council').
    ``(b) Membership.--
            ``(1) Members.--The Council shall consist of--
                    ``(A) the Administrator, or the designee of the 
                Administrator; and
                    ``(B) 12 additional members appointed by the 
                Administrator or the designee of the Administrator, of 
                whom--
                            ``(i) 1 shall be a member of the National 
                        Association of Insurance Commissioners;
                            ``(ii) 1 shall be a member of the 
                        Independent Insurance Agents and Brokers of 
                        America;
                            ``(iii) 1 shall be a member of United 
                        Policyholders;
                            ``(iv) 1 shall be a representative of the 
                        Emergency Management Institute of the Federal 
                        Emergency Management Agency;
                            ``(v) 1 shall be a representative of the 
                        Office of the Flood Insurance Advocate of the 
                        Federal Emergency Management Agency;
                            ``(vi) 1 shall be a representative of a 
                        national flood insurance program direct 
                        servicer;
                            ``(vii) 1 shall be a representative of a 
                        recognized professional association or 
                        organization representing homebuilders or land 
                        developers;
                            ``(viii) 1 shall be a representative of a 
                        recognized professional association or 
                        organization representing the real estate 
                        industry;
                            ``(ix) 2 shall be representatives of Write 
                        Your Own companies that are in good standing 
                        with the Administrator; and
                            ``(x) 2 shall be at-large members.
            ``(2) Qualifications.--
                    ``(A) In general.--Each member of the Council shall 
                have experience with--
                            ``(i) contacting policyholders under the 
                        national flood insurance program, including 
                        with respect to applying for flood insurance 
                        and processing a claim for damage to or loss of 
                        property that is covered by flood insurance; 
                        and
                            ``(ii) riverine and coastal flood insurance 
                        policies.
                    ``(B) Considerations.--The Administrator shall, to 
                the maximum extent practicable, ensure that the 
                membership of the Council has a balance of governmental 
                and private members, and includes geographic diversity.
                    ``(C) Conflicts of interest.--A member of the 
                Council--
                            ``(i) may not, while serving on the 
                        Council, be employed or retained--
                                    ``(I) by a Federal Emergency 
                                Management Agency contractor or 
                                consultant; or
                                    ``(II) by a nongovernmental entity 
                                that was awarded a Federal grant during 
                                the 5-year period preceding the date on 
                                which the member was appointed to the 
                                Council; and
                            ``(ii) may not have been employed by a 
                        Federal Emergency Management Agency contractor 
                        or consultant during the 5-year period 
                        preceding the date on which the member was 
                        appointed to the Council.
            ``(3) Consultation.--In appointing a member of the Council 
        from an entity described in clauses (i) through (viii) of 
        paragraph (1)(B), the Administrator or the designee of the 
        Administrator, as applicable, shall consult with the entity.
            ``(4) Chairperson.--The members of the Council shall elect 
        1 member to serve as the chairperson of the Council (in this 
        section referred to as the `Chairperson').
    ``(c) Duties.--The Council shall--
            ``(1) provide recommendations to the Administrator on--
                    ``(A) improving the customer experience for 
                policyholders under the national flood insurance 
                program;
                    ``(B) training insurance agents that issue flood 
                insurance policies; and
                    ``(C) improving the processing and handling of 
                claims for damage to or loss of property that is 
                covered by flood insurance; and
            ``(2) submit an annual report to the Administrator that 
        includes--
                    ``(A) a description of the activities of the 
                Council; and
                    ``(B) a summary of recommendations made by the 
                Council to the Administrator.
    ``(d) Compensation.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        member of the Council shall receive no additional compensation 
        for serving on the Council.
            ``(2) Travel expenses.--Each member of the Council may be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code, while away from their homes or regular 
        places of business in performance of services for the Council.
    ``(e) Meetings and Actions.--
            ``(1) Meetings.--
                    ``(A) In general.--The Council shall meet not less 
                frequently than twice each year at the request of the 
                Chairperson or a majority of the members of the 
                Council.
                    ``(B) Initial meeting.--The Administrator, or a 
                designee of the Administrator, shall request and 
                coordinate the initial meeting of the Council.
            ``(2) Action by majority vote.--The Council may take action 
        by a vote of the majority of the members.
    ``(f) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    ``(g) Staff.--Upon the request of the Chairperson, the 
Administrator may detail, on a nonreimbursable basis, personnel of the 
Office of the Flood Insurance Advocate of the Federal Emergency 
Management Agency to assist the Council in carrying out the duties of 
the Council.
    ``(h) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research as the Council considers appropriate.
    ``(i) Report to Congress and OMB.--The Administrator shall, on an 
annual basis, submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate, the Committee on Financial Services of the House 
of Representatives, and the Director of the Office of Management and 
Budget a report on--
            ``(1) the recommendations made by the Council; and
            ``(2) any recommendations made by the Council during the 
        year covered by the report that, as of the date on which the 
        report is submitted, have been deferred or not acted upon, 
        together with an explanatory statement with respect to those 
        recommendations.
    ``(j) Applicability of the Federal Advisory Committee Act.--Section 
14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Council.''.

SEC. 422. EFFICIENT USE OF MITIGATION DOLLARS.

    Section 1315(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4022(b)) is amended by adding at the end the following:
            ``(5) Regional coordinator.--
                    ``(A) In general.--The Administrator shall appoint 
                a regional coordinator in each region served by a 
                Regional Office (as defined in section 501 of the 
                Homeland Security Act of 2002 (6 U.S.C. 311)) to 
                provide technical assistance to small communities to 
                enable those communities to effectively participate in 
                and benefit from the community rating system program.
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph, which shall 
                remain available until expended.''.

SEC. 423. IMPROVED DISCLOSURE REQUIREMENTS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.), as amended by section 414, is amended by adding at the 
end the following:

``SEC. 1328. DISCLOSURE IN LEASE OF PROPERTY.

    ``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Administrator, in consultation with 
relevant Federal agencies, shall promulgate regulations requiring the 
disclosure of information relating to the flood risk and flood 
insurance coverage of any property that is offered for lease in 
accordance with subsection (b).
    ``(b) Information Disclosed.--The regulations promulgated under 
subsection (a) shall require that, before the lessee is obligated under 
any contract to lease property, the lessor shall provide a written 
disclosure to the lessee that describes--
            ``(1) the flood zone classification of the property;
            ``(2) whether the property is covered by flood insurance; 
        and
            ``(3) the availability of contents coverage under the 
        national flood insurance program.''.

SEC. 424. AMENDMENTS TO FINANCIAL ASSISTANCE/SUBSIDY ARRANGEMENT.

    The Administrator shall amend the Write Your Own company Financial 
Assistance/Subsidy Arrangement to implement the requirements of 
sections 405, 406, 409, 412, 413, 415, 416, 417, 418, 419, and 420 of 
this Act, and any amendments made by those sections.

SEC. 425. TECHNICAL AND CONFORMING AMENDMENTS.

    Section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4121) 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 `Write Your Own company' means a company 
        that participates in the Write Your Own Program; and
            ``(17) the term `Write Your Own Program' means the 
        cooperative undertaking between the insurance industry and the 
        Federal Insurance and Mitigation Administration that allows 
        participating property and casualty insurance companies to 
        write and service standard flood insurance policies.''.
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