SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Flood Insurance Reform and Modernization Act of 2007'.(b) Table of Contents- The table of contents for this Act is as follows: CommentsClose CommentsPermalink





Sec. 1. Short title and tTable of contents. CommentsClose CommentsPermalink

Sec. 101. Short title. CommentsClose CommentsPermalink





Sec. 2. Findings and purpose102. Findings. CommentsClose CommentsPermalink





Sec. 3. Study regarding status of pre-firm properties and mandatory purchase requirement for natural 100-year floodplain and non-federally related loa103. Definitions. CommentsClose CommentsPermalink





Sec. 4. Phase-in of actuarial rates for nonresidential properties and non-primary residences.Sec. 5. Exception to waiting period for effective date of policies104. Extension of National Flood Insurance Program. CommentsClose CommentsPermalink





Sec. 6105. Availability of insurance for multifamily properties. CommentsClose CommentsPermalink





Sec. 106. Reform of premium rate structure. CommentsClose CommentsPermalink





Sec. 107. Mandatory coverage areas. CommentsClose CommentsPermalink





Sec. 108. Premium adjustment. CommentsClose CommentsPermalink





Sec. 109. State chartered financial institutions. CommentsClose CommentsPermalink





Sec. 110. Enforcement. CommentsClose CommentsPermalink





Sec. 7. Multiperil coverage for flood and windstorm111. Escrow of flood insurance payments. CommentsClose CommentsPermalink





Sec. 8. Maximum coverage limit112. Borrowing authority debt forgiveness. CommentsClose CommentsPermalink





Sec. 9. Coverage for additional living expenses, basement improvements, business interruption, and replacement cost of contents113. Minimum deductibles for claims under the National Flood Insurance Program. CommentsClose CommentsPermalink





Sec. 10. Notification to tenants of availability of contents insurance14. Considerations in determining chargeable premium rates. CommentsClose CommentsPermalink





Sec. 11. Increase in annual limitation on premium increases5. Reserve fund. CommentsClose CommentsPermalink





Sec. 12. Report regarding16. Repayment plan for borrowing authority. CommentsClose CommentsPermalink





Sec. 13. FEMA participation in State disaster claims mediation progra17. Payment of condominium claims. CommentsClose CommentsPermalink





Sec. 14. FEMA annual report on insurance program18. Technical Mapping Advisory Council. CommentsClose CommentsPermalink





Sec. 15. Flood insurance outreach19. National Flood Mapping Program. CommentsClose CommentsPermalink





Sec. 16. Grants for direct funding of mitigation activities for individual repetitive claims properties.Sec. 17. Extension of pilot program for mitigation of severe repetitive loss propertie20. Removal of limitation on State contributions for updating flood maps. CommentsClose CommentsPermalink





Sec. 18. Flood mitigation assistance program21. Coordination. CommentsClose CommentsPermalink





Sec. 19. GAO study of methods to increase flood insurance program participation by low-income families22. Interagency coordination study. CommentsClose CommentsPermalink





Sec. 20. Notice of availability of flood insurance and escrow in RESPA good faith estimate123. Nonmandatory participation. CommentsClose CommentsPermalink





Sec. 21124. Notice of flood insurance availability under RESPA. CommentsClose CommentsPermalink





Sec. 125. Testing of new flood proofing technologies. CommentsClose CommentsPermalink





Sec. 126. Participation in State disaster claims mediation programs. CommentsClose CommentsPermalink





Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform Act. CommentsClose CommentsPermalink





Sec. 22. Ongoing modernization of flood maps and elevation standard128. Additional authority of FEMA to collect information on claims payments. CommentsClose CommentsPermalink





Sec. 23. Notification and appeal of map changes; notification of establishment of flood elevation129. Expense reimbursements of insurance companies. CommentsClose CommentsPermalink





Sec. 24. Clarification of replacement cost provisions, forms, and policy language130. Extension of pilot program for mitigation of severe repetitive loss properties. CommentsClose CommentsPermalink





Sec. 25. Authorization of additional FEMA staff131. Flood insurance advocate. CommentsClose CommentsPermalink





Sec. 26. Extension of deadline for filing proof of los132. Studies and Reports. CommentsClose CommentsPermalink





Sec. 27. 5-year extension of program133. Feasibility study on private reinsurance. CommentsClose CommentsPermalink





Sec. 28134. Policy disclosures. CommentsClose CommentsPermalink





Sec. 135. Report on inclusion of building codes in floodplain management criteria. CommentsClose CommentsPermalink

Sec. 201. Short title. CommentsClose CommentsPermalink





Sec. 29. Study of economic effects of charging actuarially-based premium rates for pre-firm structure02. Findings. CommentsClose CommentsPermalink





Sec. 30. Prohibition on enforcement of penalty assessed on condominium associations203. Establishment. CommentsClose CommentsPermalink





Sec. 31. Report of administrative expenses of write-your-own insurers; independent audits204. Membership. CommentsClose CommentsPermalink





Sec. 32. Plan to verify maintenance of flood insurance on Mississippi and Louisiana properties receiving emergency supplemental funds205. Duties of the Commission. CommentsClose CommentsPermalink





Sec. 33. GAO study of factors affecting enrollment in multiperil insurance program.Sec. 34. National flood insurance advocate; reports206. Report. CommentsClose CommentsPermalink





Sec. 35. Requirements relating to windstorm and flood207. Powers of the Commission. CommentsClose CommentsPermalink





Sec. 36. Notations on flood insurance rate maps for areas protected against 100-year and 500-year floods by certified flood control structure.SEC. 2. FINDINGS AND PURPOSES.(a) Findings- The 208. Commission personnel matters. CommentsClose CommentsPermalink





Sec. 209. Termination. CommentsClose CommentsPermalink





Sec. 210. Authorization of appropriations. CommentsClose CommentsPermalink

Congress finds that-- CommentsClose CommentsPermalink





(1) flooding has been shown to occur in all 50 States, the District of Columbia, and in all territories and possessions of the United States;(2) the national flood insurance program (NFIP) is the only affordable and reliable source of insurance to protect against flood losses;(3) the aggregate amount of the flood insurance claims resulting from Hurricane Katrina, Hurricane Rita, and other events has exceeded the aggregate amount of all claims previously paid in the history of the national flood insurance program, requiring a significant increase in the program's borrowing authority;(4) flood insurance policyholders have a legitimate expectation that they will receive fair and timely compensation for losses covered under their policies;(5) substantial flooding has occurred, andthe flood insurance claims resulting from the hurricane season of 2005 will likely occur again, outside the areas designated byexceed all previous claims paid by the National Flood Insurance Program; CommentsClose CommentsPermalink





(2) in order to pay the legitimate claims of policyholders from the hurricane season of 2005, the Federal Emergency Management Agency has borrowed over $20,000,000,000 from the Treasury; CommentsClose CommentsPermalink





(3) the interest alone on this debt, is almost $1,000,000,000 annually, and that the Federal Emergency Management Agency (FEMA) as high-risk flood hazard areas;(6) properties located in low- to moderate-risk areas are eligible to purchase flood insurance policies with premiums as low as $112 a year;(7) about 450,000 vacation homes, second homes, and commercial properties are subsidized and are not paying actuarially sound rates for flood insurance;(8) phasing out subsidies currently extended to vacation homes, second homes, and commercial properties would result in estimated average annual savings to the taxpayers of the United States and the national flood insurance program of $335,000,000;(9) the maximum coverage limits for flood insurance policies should be increased to reflect inflation and the increased cost of housing;(10) significant reforms to the national flood insurance program required in the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 have yet to be implemented; and(11) in addition to reforms required in the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, the national flood insurance program requires a modernized and updated administrative model to ensure that the program is solvent and the people of the United States have continued access to flood insurance.(b) Purposes- The purposes of this Act are--(1) to protect the integrity of the national flood insurance program by fully funding existing legal obligations expected by existing policyholders who have paid policy premiums in return for flood insurance coverage andhas indicated that it will be unable to pay debt service on funds borrowed by the NFIP;(2) to increase incentives for homeowners and communities to participate in the national flood insurance program and to improve oversightback this debt; CommentsClose CommentsPermalink





(4) the flood insurance program must be strengthened to ensure better accountability of the NFIP and FEMA;(3) to increase awareness of homeowners of flood risks and improve the quality of information regarding such risks provided to homeowners; and(4) to provide for the national flood insurance program to make available optional multiperil insurance coverage against loss resulting from physical damage to or loss of real or personal property arising from any flood or windstorm.SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROPERTIES AND MANDATORY PURCHASE REQUIREMENT FOR NATURALit can pay future claims; CommentsClose CommentsPermalink





(5) while flood insurance is mandatory in the 100-YEAR FLOODPLAIN AND NON-FEDERALLY RELATED LOANS.(a) In General- The Comptroller General shall conduct a study as follows:(1) PRE-FIRM PROPERTIES- The study shall determine the status of the national flood insurance program, as of the date ofyear floodplain, substantial flooding occurs outside of existing special flood hazard areas; CommentsClose CommentsPermalink





(6) recent events throughout the country involving areas behind man-made structures, known as `residual risk' areas, have produced catastrophic losses; CommentsClose CommentsPermalink





(7) although such man-made structures produce an added element of safety and therefore lessen the probability that a disaster will occur, they are nevertheless susceptible to catastrophic loss, even though such areas at one time were not included within the 100-year floodplain; and CommentsClose CommentsPermalink





(8) voluntary participation in the National Flood Insurance Program has been minimal and many families residing outside the 100-year floodplain remain unaware of the potential risk to their lives and property. CommentsClose CommentsPermalink

(a) In General- In this title, the enactment of this Act, with respect to the provision of flood insurance coverage for pre-FIRM properties (as such term is defined in section 578(b) of the National Flood Insurance Reform Act of 1994following definitions shall apply: CommentsClose CommentsPermalink





(1) DIRECTOR- The term `Director' means the Administrator of the Federal Emergency Management Agency. CommentsClose CommentsPermalink





(2) NATIONAL FLOOD INSURANCE PROGRAM- The term `National Flood Insurance Program' means the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4014 note)), which shall include determinations of--(A) the number of pre-FIRM properties for which coverage is provided and the extent of such coverage;(B) the cost of providing coverage for such pre-FIRM properties to the national flood insurance program;(C) the anticipated rate at which such pre-FIRM properties will cease to be covered under the program; and(D) the effects that implementation of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 will have on the national flood insurance program generally and on coverage of pre-FIRM properties under the program.(2) MANDATORY PURCHASE REQUIREMENT FOR NATURAL1 et seq.). CommentsClose CommentsPermalink





(3) 100-YEARyear FLOODPLAIN- The study shall assess the impact, effectiveness, and feasibility of amending the provisions of the Flood Disaster Protection Act of 1973 regarding the properties that are subject to the mandatory flood insurance coverage purchase requirements under such Act to extend such requirements to properties located in any area that would be designated as an area having special flood hazards but for the existence of a structural flood protection system, and shall determine--(A) the regulatory, financial and economic impacts of extending such mandatory purchase requirements on the costs of homeownership, the actuarial soundness of the national flood insurance program, the Federal Emergency Management Agency, local communities, insurance companies, and local land use;(B) the effectiveness of extending such mandatory purchase requirements in protecting homeowners from financial loss and in protecting the financial soundness of the national flood insurance program; and(C) any impact on lenders of complying with or enforcing such extended mandatory requirements.(3) MANDATORY PURCHASE REQUIREMENT FOR NON-FEDERALLY RELATED LOANS- The study shall assess the impact, effectiveness, and feasibility of, and basis under the Constitution of the United States for, amending the provisions of the Flood Disaster Protection Act of 1973 regarding the properties that are subject to the mandatory flood insurance coverage purchase requirements under such Act to extend such requirements to any property that is located in any area having special flood hazards and which secures the repayment of a loan that is not described in paragraph (1), (2), or (3) of section 102(b) of such Act, and shall determine how best to administer and enforce such a requirement, taking into consideration other insurance purchase requirements under Federal and State lawterm `100-year floodplain' means that area which is subject to inundation from a flood having a 1 percent chance of being equaled or exceeded in any given year. CommentsClose CommentsPermalink





(4) 500-year FLOODPLAIN- The term `500-year floodplain' means that area which is subject to inundation from a flood having a 0.2 percent chance of being equaled or exceeded in any given year. CommentsClose CommentsPermalink





(5) WRITE YOUR OWN- The term `Write Your Own' means the cooperative undertaking between the insurance industry and the Flood Insurance Administration which allows participating property and casualty insurance companies to write and service standard flood insurance policies. CommentsClose CommentsPermalink





(b) Report- The Comptroller General shall submit a report to the Congress regarding the results and conclusions of the study under this subsection not later than the expiration of the 6-month period beginning on the date of the enactment of this ActCommon Terminology- Except as otherwise provided in this title, any terms used in this title shall have the meaning given to such terms under section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 4121). CommentsClose CommentsPermalink

SEC. 4. PHASE-IN OF ACTUARIAL RATES104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

SEC. 105. AVAILABILITY OF INSURANCE FOR NONRESIDENTIAL PROPERTIES AND NON-PRIMARY RESIDENCES.(a) In General- Section 1308(c)MULTIFAMILY PROPERTIES.

Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--(1) by redesignating paragraph (2) as paragraph (4); and(2) by inserting after paragraph (1) the following new paragraphs:2) is amended by adding at the end the following: CommentsClose CommentsPermalink





`(d) Availability of Insurance for Multifamily Properties- CommentsClose CommentsPermalink





`(1) IN GENERAL- The Director shall make flood insurance available to cover residential properties of more than 4 units. Notwithstanding any other provision of law, the maximum coverage amount that the Director may make available under this subsection to such residential properties shall be equal to the coverage amount made available to commercial properties. CommentsClose CommentsPermalink





`(2) NONRESIDENTIAL PROPERTIES- Any nonresidential property, which term shall not include any multifamily rental property that consists of four or more dwelling units.`(3) NON-PRIMARY RESIDENCES- Any residential property thatRULE OF CONSTRUCTION- Nothing in this subsection shall be construed to limit the ability of individuals residing in residential properties of more than 4 units to obtain insurance for the contents and personal articles located in such residences.'. CommentsClose CommentsPermalink

(a) To Exclude Certain Properties From Receiving Subsidized Premium Rates- CommentsClose CommentsPermalink





(1) IN GENERAL- Section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended-- CommentsClose CommentsPermalink





(A) in subsection (a)-- CommentsClose CommentsPermalink





(i) in paragraph (2), by striking `; and' and inserting a semicolon; CommentsClose CommentsPermalink





(ii) in paragraph (3), by striking the period at the end and inserting `; and'; and CommentsClose CommentsPermalink





(iii) by adding at the end the following: CommentsClose CommentsPermalink





`(4) the exclusion of prospective insureds from purchasing flood insurance at rates less than those estimated under paragraph (1), as required by paragraph (2), for certain properties, including for-- CommentsClose CommentsPermalink





`(A) any property which is not the primary residence of any individual, including the owner of the property or any other individual individual; CommentsClose CommentsPermalink





`(B) any severe repetitive loss property, as defined in section 1361A(b); CommentsClose CommentsPermalink





`(C) any property that has incurred flood-related damage in which the cumulative amounts of payments under this title equaled or exceeded the fair market value of such property; CommentsClose CommentsPermalink





`(D) any business property; and CommentsClose CommentsPermalink





`(E) any property which on or after the date of enactment of the Flood Insurance Reform and Modernization Act of 2008 has experienced or sustained-- CommentsClose CommentsPermalink





`(i) substantial damage exceeding 50 percent of the fair market value of such property; or CommentsClose CommentsPermalink





`(ii) substantial improvement exceeding 30 percent of the fair market value of such property.'; and CommentsClose CommentsPermalink





(B) by adding at the end the following: CommentsClose CommentsPermalink





`(g) No Extension of Subsidy to New Policies or Lapsed Policies- The Director shall not provide flood insurance to prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for-- CommentsClose CommentsPermalink





`(1) any property not insured by the flood insurance program as of the date of enactment of the Flood Insurance Reform and Modernization Act of 2008; CommentsClose CommentsPermalink





`(2) any policy under the flood insurance program that has lapsed in coverage, as a result of the deliberate choice of the holder of such policy; and CommentsClose CommentsPermalink





`(3) any prospective insured who resides in the property as a tenant.'fuses to accept any offer for mitigation assistance by the Administrator (including an offer to relocate), including an offer of mitigation assistance-- CommentsClose CommentsPermalink





`(A) following a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122); or CommentsClose CommentsPermalink





`(B) in connection with-- CommentsClose CommentsPermalink





`(i) a repetitive loss property; or CommentsClose CommentsPermalink





`(ii) a severe repetitive loss property, as that term is defined under section 1361A.'. CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall become effective 90 days after the date of the enactment of this title. CommentsClose CommentsPermalink





(b) Technical Amendments- Section 1308Increase in Annual Limitation on Premium Increases- Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--(1) in subsection (c)--(A) in the matter preceding paragraph (1), by striking `the limitations provided under paragraphs (1) and (2)' and inserting `subsection (e)(e)) is amended-- CommentsClose CommentsPermalink





(1) by striking `under this title for any properties within any single' and inserting the following: `under this title for any properties-- CommentsClose CommentsPermalink





`(1) within any single'; and CommentsClose CommentsPermalink





(B) in paragraph (1), by striking `, except' and all that follows through `subsection (e)2) by striking `10 percent' and inserting `15 percent'; and CommentsClose CommentsPermalink





(2) in subsection (e), by striking `paragraph (2) or (3)' and inserting `paragraph (4)'.(c) Effective Date and Transition-(1) EFFECTIVE DATE- The amendments made by subsections (a) and (b)3) by striking the period at the end and inserting the following: `; and CommentsClose CommentsPermalink





`(2) described in section 1307(a)(4) shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (1).'. CommentsClose CommentsPermalink

(a) Special Flood Hazard Areas- Not later than 90 days after the date of enactment of this title, the Director shall apply beginning on January 1, 2011, except as provided in paragraph (2) of this subsection.(2) TRANSITION FOR PROPERTIES COVERED BY FLOOD INSURANCE UPON EFFECTIVE DATE-(A) INCREASE OF RATES OVER TIME- In the case of any property described in paragraph (2) or (3) of section 1308(c) of the National Flood Insurance Act of 1968, as amendissue final regulations establishing a revised definition of areas of special flood hazards for purposes of the National Flood Insurance Program. CommentsClose CommentsPermalink





(b) Residual Risk Areas- The regulations required by subsection (a) of this section, that, as of the effective date under paragraphshall-- CommentsClose CommentsPermalink





(1) of this subsection, is covered under a policy for flood insurance made available under the national flood insurance program for which the chargeable premium rates are less than the applicable estimated risk premium rate under section 1307(a)(1) for the area in which the property is located, the Director of the Federal Emergency Management Agency shall increase the chargeable premium rates for such property over time to such applicable estimated risk premium rate under section 1307(a)(1).(B) ANNUAL INCREASE- Such increase shall be made by increasing the chargeable premium rates for the property (after application of any increase in the premium rates otherwise applicable to such property), once during the 12-month period that begins upon the effective dateinclude any area previously identified by the Director as an area having special flood hazards under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); and CommentsClose CommentsPermalink





(2) require the expansion of areas of special flood hazards to include areas of residual risk, including areas that are located behind levees, dams, and other man-made structures. CommentsClose CommentsPermalink





(c) Mandatory Participation in National Flood Insurance Program- CommentsClose CommentsPermalink





(1) IN GENERAL- Any area described in subsection (b) shall be subject to the mandatory purchase requirements of sections 102 and 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106). CommentsClose CommentsPermalink





(2) LIMITATION- The mandatory purchase requirement under paragraph (1) of this subsection and once every 12 months thereafter until such increase is accomplished, by 15shall have no force or effect until the mapping of all residual risk areas in the United States that the Director determines essential in order to administer the National Flood Insurance Program, as required under section 119, are in the maintenance phase. CommentsClose CommentsPermalink





(3) ACCURATE PRICING- In carrying out the mandatory purchase requirement under paragraph (1), the Director shall ensure that the price of flood insurance policies in areas of residual risk accurately reflects the level of flood protection provided by any levee, dam, or other the man-made structure in such area. CommentsClose CommentsPermalink





(d) Decertification- Upon decertification of any levee, dam, or man-made structure under the jurisdiction of the Army Corp of Engineers, the Corp shall immediately provide notice to the Director of the National Flood Insurance Program. CommentsClose CommentsPermalink

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by adding at the end the following: CommentsClose CommentsPermalink





`(g) Premium Adjustment To Reflect Current Risk of Flood- Notwithstanding subsection (f), and upon completion of the updating of any flood insurance rate map under this Act, the Flood Disaster Protection Act of 1973, or the Flood Insurance Reform and Modernization Act of 2008, any property located in an area that is participating in the national flood insurance program shall have the risk premium rate charged for flood insurance on such property adjusted to accurately reflect the current risk of flood to such property, subject to any other provision of this Act. Any increase in the risk premium rate charged for flood insurance on any property that is covered by a flood insurance policy on the date of completion of such updating or remapping that is a result of such updating or remapping shall be phased in over a 2-year period at the rate of 50 percent (or such lesser amount as may be necessary so that the chargeable rateper year. CommentsClose CommentsPermalink





`(h) Use of Maps to Establish Rates for Certain Counties- CommentsClose CommentsPermalink





`(1) IN GENERAL- Until such time as the updating of flood insurance rate maps under section 19 of the Flood Modernization Act of 2007 is completed (as determined by the district engineer) for all areas located in the St. Louis District of the Mississippi Valley Division of the Corps of Engineers, the Director shall not-- CommentsClose CommentsPermalink





`(A) adjust the chargeable premium rate for flood insurance under this title for any type or class of property located in an area in that District; and CommentsClose CommentsPermalink





`(B) require the purchase of flood insurance for any type or class of property located in an area in that District not subject to such purchase requirement prior to the updating of such national flood insurance program rate map. CommentsClose CommentsPermalink





`(2) RULE OF CONSTRUCTION- For purposes of this subsection, the term `area' does not exceed such applicable estimated risk premium rate or to comply with subparagraph (C)). Any increase in chargeable premium rates for a property pursuant to this paragraph shall not be considered for purposes of the limitation under section 1308(e) of such Act.(C) PROPERTIES SUBJECT TO PHASE-IN AND ANNUAL INCREASES- In the case of any pre-FIRM property (as such term is defined in section 578(b) of the National Flood Insurance Reform Act of 1974), the aggregate increase, during any 12-month period, in the chargeable premium rate for the property that is attributable to this paragraph or to an increase described in section 1308(e) of the National Flood Insurance Act of 1968 may not exceed the following percentage:(i) NONRESIDENTIAL PROPERTIES- In the case of any property described in such section 1308(c)(2), 20 percent.(ii) NON-PRIMARY RESIDENCES- In the case of any property described in such section 1308(c)(3), 25 percent.(D) FULL ACTUARIAL RATES- The provisions of paragraphs (2) and (3) of such section 1308(c) shall apply to such a property upon the accomplishment of the increase under this paragraph and thereafter.SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE DATE OF POLICIEinclude any area (or subdivision thereof) that has chosen not to participate in the flood insurance program under this title as of the date of enactment of this subsection.'. CommentsClose CommentsPermalink

SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS.

Section 1306(c)(2)(A5(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended by inserting before the semicolon the following: `or is in connection with the purchase or other transfer of the property for which the coverage is provided (regardless of whether a loan is involved in the purchase or transfer transaction), but only when such initial purchase of coverage is made not later 30 days after such making, increasing, extension, or renewal of the loan or not later than 30 days after such purchase or other transfer of the property, as applicable'.SEC. 62(c)) is amended-- CommentsClose CommentsPermalink





(1) in paragraph (1), by striking `; and' and inserting a semicolon; CommentsClose CommentsPermalink





(2) in paragraph (2), by striking the period at the end and inserting `; and'; and CommentsClose CommentsPermalink





(3) by adding at the end the following: CommentsClose CommentsPermalink





`(3) given satisfactory assurance that by December 31, 2008, lending institutions chartered by a State, and not insured by the Federal Deposit Insurance Corporation, shall be subject to regulations by that State that are consistent with the requirements of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).'. CommentsClose CommentsPermalink

SEC. 110. ENFORCEMENT.

Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)) is amended--(1) in paragraph (5)--(A(5)) is amended-- CommentsClose CommentsPermalink





(1) in the first sentence, by striking `$350' and inserting `$2,000'; and CommentsClose CommentsPermalink





(B) in the last sentence, by striking `$100,000' and inserting `$1,000,000; except that such limitation shall not apply to a regulated2) by striking the second sentence. CommentsClose CommentsPermalink

(a) In General- Section 102(d) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended-- CommentsClose CommentsPermalink





(1) by amending paragraph (1) to read as follows: CommentsClose CommentsPermalink





`(1) REGULATED LENDING INSTITUTIONS- CommentsClose CommentsPermalink





`(A) FEDERAL ENTITIES RESPONSIBLE FOR LENDING REGULATIONS- Each Federal entity for lending institution or enterprise for a calendar year if, in any three (or more) of the five calendar years immediately preceding such calendar year, the total amount of penalties assessed under this subsection against suchregulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that any premiums and fees for flood insurance under the National Flood Insurance Act of 1968, on any property for which a loan has been made for acquisition or construction purposes, shall be paid to the mortgage lender, with the same frequency as payments on the loan are made, for the duration of the loan. Upon receipt of any premiums or fees, the lender shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from the Director or the provider of the flood insurance that insurance premiums are due, the remaining balance of an escrow account shall be paid to the provider of the flood insurance. CommentsClose CommentsPermalink





`(B) STATE ENTITIES RESPONSIBLE FOR LENDING REGULATIONS- In order to continue to participate in the flood insurance program, each State shall direct that its entity or agency with primary responsibility for the supervision of lending institution or enterprise was $1,000,000'; and(2) in paragraph (6), by adding after the period at the end the following: `No penalty may be imposed under this subsection ons in that State require that premiums and fees for flood insurance under the National Flood Insurance Act of 1968, on any property for which a loan has been made for acquisition or construction purposes shall be paid to the mortgage lender, with the same frequency as payments on the loan are made, for the duration of the loan. Upon receipt of any premiums or fees, the lender shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from such State entity or agency, the Director, or the provider of the flood insurance that insurance premiums are due, the remaining balance of an escrow account shall be paid to the provider of the flood insurance.'; and CommentsClose CommentsPermalink





(2) by adding at the end the following: CommentsClose CommentsPermalink





`(6) NOTICE UPON LOAN TERMINATION- Upon final payment of the mortgage, a regulated lending institution or enterprise that has made a good faith effort to comply with the requirements of the provisions referred to in paragraph (2) or for any non-material violation of such requirements.'shall provide notice to the policyholder that insurance coverage may cease with such final payment. The regulated lending institution shall also provide direction as to how the homeowner may continue flood insurance coverage after the life of the loan.'. CommentsClose CommentsPermalink





(b) Applicability- The amendment made by subsection (a)(1) shall apply to any mortgage outstanding or entered into on or after the expiration of the 2-year period beginning on the date of enactment of this title. CommentsClose CommentsPermalink

SEC. 7. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.(a) In General- Section 1304112. BORROWING AUTHORITY DEBT FORGIVENESS.

(a) In General- The Secretary of the Treasury relinquishes the right to any repayment of amounts due from the Director in connection with the exercise of the authority vested to the Director to borrow such sums under section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4011) is amended--(1) by redesignating subsection (c) as subsection (d); and(2) by inserting after subsection (b) the following new subsection:`6), to the extent such borrowed sums were used to fund the payment of flood insurance claims under the National Flood Insurance Program for any damage to or loss of property resulting from the hurricanes of 2005. CommentsClose CommentsPermalink





(b) Certification- The debt forgiveness described under subsection (a) shall only take effect if the Director certifies to the Secretary of Treasury that all authorized resources or funds available to the Director to operate the National Flood Insurance Program-- CommentsClose CommentsPermalink





(1) have been otherwise obligated to pay claims under the National Flood Insurance Program; and CommentsClose CommentsPermalink





(2) are not otherwise available to make payments to the Secretary on any outstanding notes or obligations issued by the Director and held by the Secretary. CommentsClose CommentsPermalink





(c) Multiperil Coverage for Damage From Flood or WindstormDecrease in Borrowing Authority- The first sentence of subsection (a) of section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking `; except that, through September 30, 2008, clause (2) of this sentence shall be applied by substituting `$20,775,000,000' for `$1,500,000,000'. CommentsClose CommentsPermalink

Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended-- CommentsClose CommentsPermalink





(1) by striking `The Director is' and inserting the following: CommentsClose CommentsPermalink





`(a) In General- The Director is'; and CommentsClose CommentsPermalink





(2) by adding at the end the following: CommentsClose CommentsPermalink





`(b) Minimum Annual Deductible- CommentsClose CommentsPermalink





`(1) IN GENERAL- Subject to paragraph (8), the national flood insurance program established pursuant to subsection (a) shall enable the purchase of optional insurance against loss resulting from physical damage to or loss of real property or personal property related thereto located in the United States arising from any flood or windstorm, subject to the limitations in this subsection and section 1306(b)PRE-FIRM PROPERTIES- For any structure which is covered by flood insurance under this title, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Director under section 1360 for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be-- CommentsClose CommentsPermalink





`(A) $1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and CommentsClose CommentsPermalink





`(B) $2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000. CommentsClose CommentsPermalink





`(2) COMMUNITY PARTICIPATION REQUIREMENT- Multiperil coverage pursuant to this subsection may not be provided in any area (or subdivision thereof) unless an appropriate public body shall have adopted adequate mitigation measures (with effective enforcement provisions) which the Director finds are consistent with the criteria for construction described in the International Code Council building codes relating to wind mitigation.`(3) PROHIBITION AGAINST DUPLICATIVE COVERAGE- Multiperil coverage pursuant to this subsection may not be provided with respect to any structure (or the personal property related thereto) for any period during which such structure is covered, at any time, by flood insurance coverage made available under this title.`(4) NATURE OF COVERAGE- Multiperil coverage pursuant to this subsection shall--`(A) cover losses only from physical damage resulting from flooding or windstormPOST-FIRM PROPERTIES- For any structure which is covered by flood insurance under this title, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Director under section 1360 for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be-- CommentsClose CommentsPermalink





`(A) $750, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and CommentsClose CommentsPermalink





`(B) provide for approval and payment of claims under such coverage upon proof that such loss must have resulted from either windstorm or flooding, but shall not require for approval and payment of a claim that the specific cause of the loss, whether windstorm or flooding, be distinguished or identified.$1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.'. CommentsClose CommentsPermalink

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b)) is amended-- CommentsClose CommentsPermalink





(1) in subsection (a), by striking `, after consultation with' and all that follows through `by regulation' and inserting `prescribe, after providing notice'; CommentsClose CommentsPermalink





(2) in subsection (b)-- CommentsClose CommentsPermalink





(A) in paragraph (1), by striking the period at the end and inserting a semicolon; CommentsClose CommentsPermalink





(B) in paragraph (2), by striking the comma at the end and inserting a semicolon; CommentsClose CommentsPermalink





(C) in paragraph (3), by striking `, and' and inserting a semicolon; CommentsClose CommentsPermalink





(D) in paragraph (4), by striking the period and inserting `; and'; and CommentsClose CommentsPermalink





(E) by adding at the end the following: CommentsClose CommentsPermalink





`(5) ACTUARIAL RATES- Multiperil coverage pursuant to this subsection shall be made available for purchase for a property only at chargeable risk premium rates that, based on consideration of the risks involved andadequate, on the basis of accepted actuarial principles, and including operating costs and allowance and administrative expenses, are required in order to make such coverage available on anto cover the average historical loss year obligations incurred by the National Flood Insurance Fund.'; and CommentsClose CommentsPermalink





(3) by adding at the end the following: CommentsClose CommentsPermalink





`(h) Rule of Construction- For purposes of this section, the calculation of an `average historical loss year'-- CommentsClose CommentsPermalink





`(1) includes catastrophic loss years; and CommentsClose CommentsPermalink





`(2) shall be computed in accordance with generally accepted actuarial basis for the type and class of properties covered.`(6) TERMS OF COVERAGE- The Director shall, after consultation with persons and entities referred to in section 1306(a), provide by regulation for the general terms and conditions of insurability which shall be applicable to properties eligible for multiperil coverage under this subsection, subject to the provisions of this subsection, including--`(A) the types, classes, and locations of any such properties which shall be eligible for such coverage, which shall include residential and nonresidential properties;`(B) subject to paragraph (7), the nature and limits of loss or damage in any areas (or subdivisions thereof) which may be covered by such coverage;`(C) the classification, limitation, and rejection of any risks which may be advisable;`(D) appropriate minimum premiums;`(E) appropriate loss deductibles; and`(F) any other terms and conditions relating to insurance coverage or exclusion that may be necessary to carry out this subsection.`(7) LIMITATIONS ON AMOUNT OF COVERAGE- The regulations issued pursuant to paragraph (6) shall provide that the aggregate liability under multiperil coverage made available under this subsection shall not exceed the lesser of the replacement cost for covered losses or the following amounts, as applicable:`(A) RESIDENTIAL STRUCTURES- In the case of residential properties, which shall include structures containing multiple dwelling units that are made available for occupancy by rental (notwithstanding any treatment or classification of such properties for purposes of section 1306(b))--`(i) for any single-family dwelling, $500,000;`(ii) for any structure containing more than one dwelling unit, $500,000 for each separate dwelling unit in the structure, which limit, in the case of such a structure containing multiple dwelling units that are made available for occupancy by rental, shall be applied so as to enable any insured or applicant for insurance to receive coverage for the structure up to a total amount that is equal to the product of the total number of such rental dwelling units in such property and the maximum coverage limit per dwelling unit specified in this clause; and`(iii) $150,000 per dwelling unit for--`(I) any contents related to such unit; and`(II) any necessary increases in living expenses incurred by the insured when losses from flooding or windstorm make the residence unfit to live in.`(B) NONRESIDENTIAL PROPERTIES- In the case of nonresidential properties (including church properties)--`(i) $1,000,000 for any single structure; and`(ii) $750,000 for--`(I) any contents related to such structure; and`(II) in the case of any nonresidential property that is a business property, any losses resulting from any partial orprinciples.'. CommentsClose CommentsPermalink

`SEC. 1310A. RESERVE FUND.

`(a) Establishment of Reserve Fund- In carrying out the flood insurance program authorized by this chapter, the Director shall establish in the Treasury of the United States a National Flood Insurance Reserve Fund (in this section referred to as the `Reserve Fund') which shall-- CommentsClose CommentsPermalink





`(1) be an account separate from any other accounts or funds available to the Director; and CommentsClose CommentsPermalink





`(2) be available for meeting the expected future obligations of the flood insurance program. CommentsClose CommentsPermalink





`(b) Reserve Ratio- Subject to the phase-in requirements under subsection (d), the Reserve Fund shall maintain a balance equal to-- CommentsClose CommentsPermalink





`(1) 1 percent of the sum of the total interruption of the insured's business caused by damage to, or loss of, such property from flooding or windstorm, except that for purposes of such coverage, losses shall be determined based on the profits the covered business would have earned, based on previous financial records, had the flood or windstorm not occurred.`(8) REQUIREMENT TO CEASE OFFERING COVERAGE IF BORROWING TO PAY CLAIMS- If at any time the Director utilizes the borrowing authority under section 1309(a) for the purpose of obtaining amounts to pay claims under multiperil coverage made available under this subsection, the Director may not, during the period beginning upon the initial such use of such borrowing authority andpotential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; or CommentsClose CommentsPermalink





`(2) such higher percentage as the Director determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve Fund. CommentsClose CommentsPermalink





`(c) Maintenance of Reserve Ratio- CommentsClose CommentsPermalink





`(1) IN GENERAL- The Director shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary-- CommentsClose CommentsPermalink





`(A) to maintain the reserve ratio required under subsection (b); and CommentsClose CommentsPermalink





`(B) to achieve such reserve ratio, if the actual balance of such reserve is below the amount required under subsection (b). CommentsClose CommentsPermalink





`(2) CONSIDERATIONS- In exercising the authority granted under paragraph (1), the Director shall consider-- CommentsClose CommentsPermalink





`(A) the expected operating expenses of the Reserve Fund; CommentsClose CommentsPermalink





`(B) the insurance loss expenditures under the flood insurance program; CommentsClose CommentsPermalink





`(C) any investment income generated under the flood insurance program; and CommentsClose CommentsPermalink





`(D) any other factor that the Director determines appropriate. CommentsClose CommentsPermalink





`(3) LIMITATIONS- In exercising the authority granted under paragraph (1), the Director shall be subject to all other provisions of this Act, including any provisions relating to chargeable premium rates or annual increases of such rates. CommentsClose CommentsPermalink





`(d) Phase-In Requirements- The phase-in requirements under this subsection are as follows: CommentsClose CommentsPermalink





`(1) IN GENERAL- Beginning in fiscal year 2008 and not ending upon repayment to the Secretary of the Treasury of the full amount of all outstanding notes and obligations issued by the Director for such purpose, together with all interest owed on such notes and obligations, enter into any new policy, or renew any existing policy, for coverage made available under this subsection.`(9) EFFECTIVE DATE- This subsection shall take effect on, and shall apply beginning on, June 30, 2008.'.ntil the fiscal year in which the ratio required under subsection (b)Prohibition Against Duplicative Coverage- The National Flood Insurance Act of 1968 is amended by inserting after section 1313 (42 U.S.C. 4020) the following new section:`PROHIBITION AGAINST DUPLICATIVE COVERAGE`Sec. 1314. Flood insurance under this title may not be provided with respect to any structure (or the personal property related thereto) for any period during which such structure is covered, at any time, by multiperil insurance coverage made available pursuant to section 1304(c).'.(c) Compliance With State and Local Law- Section 1316achieved, in each such fiscal year the Director shall place in the Reserve Fund an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b). CommentsClose CommentsPermalink





`(2) AMOUNT SATISFIED- As soon as the ratio required under subsection (b) is achieved, and except as provided in paragraph (3), the Director shall not be required to set aside any amounts for the Reserve Fund. CommentsClose CommentsPermalink





`(3) EXCEPTION- If at any time after the ratio required under subsection (b) is achieved, the Reserve Fund falls below the required ratio under subsection (b), the Director shall place in the Reserve Fund for that fiscal year an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b). CommentsClose CommentsPermalink





`(e) Limitation on Reserve Ratio- In any given fiscal year, if the Director determines that the reserve ratio required under subsection (b) cannot be achieved, the Director shall submit a report to Congress that-- CommentsClose CommentsPermalink





`(1) describes and details the specific concerns of the Director regarding such consequences; CommentsClose CommentsPermalink





`(2) demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and CommentsClose CommentsPermalink





`(3) indicates the maximum attainable reserve ratio for that particular fiscal year.'. CommentsClose CommentsPermalink

Section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4023) is amended--(1) by inserting `(a) Flood Protection Measures- ' before `No new'; and(2) by adding at the end the following new subsection:`(b) Windstorm Protection Measures- No new multiperil coverage shall be provided under section 1304(c) for any property that the Director finds has been declared by a duly constituted State or local zoning authority, or other authorized public body to be in violation of State or local laws, regulations, or ordinances, which are intended to reduce damage caused by windstorms.'.(d) Criteria for Land Management and Use- Section 136116) is amended by adding at the end the following: CommentsClose CommentsPermalink





`(c) Any funds borrowed by the Director under the authority established in subsection (a) shall include a schedule for repayment of such amounts which shall be transmitted to the-- CommentsClose CommentsPermalink





`(1) Secretary of the Treasury; CommentsClose CommentsPermalink





`(2) Committee on Banking, Housing, and Urban Affairs of the Senate; and CommentsClose CommentsPermalink





`(3) Committee on Financial Services of the House of Representatives. CommentsClose CommentsPermalink





`(d) In addition to the requirement under subsection (c), in connection with any funds borrowed by the Director under the authority established in subsection (a), the Director, beginning 6 months after the date on which such borrowed funds are issued, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress of such repayment to the-- CommentsClose CommentsPermalink





`(1) Secretary of the Treasury; CommentsClose CommentsPermalink





`(2) Committee on Banking, Housing, and Urban Affairs of the Senate; and CommentsClose CommentsPermalink





`(3) Committee on Financial Services of the House of Representatives.'. CommentsClose CommentsPermalink

Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) is amended by adding at the end the following new subsection:`019), as amended by section 113, is further amended by adding at the end the following: CommentsClose CommentsPermalink





`(c) Payment of Claims to Condominium Owners- The Director may not deny payment for any damage to or loss of property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based, solely or in any part, on the flood insurance coverage of the condominium association or others on the overall property owned by the condominium association. Notwithstanding any regulations, rules, or restrictions established by the Director relating to appeals and filing deadlines, the Director shall ensure that the requirements of this subsection are met with respect to any claims for damages resulting from flooding in 2005 and 2006.'. CommentsClose CommentsPermalink

(a) Establishment- There is established a council to be known as the Technical Mapping Advisory Council (in this section referred to as the `Council'). CommentsClose CommentsPermalink





(b) Membership- CommentsClose CommentsPermalink





(1) IN GENERAL- The Council shall consist of the Director, or the designee thereof, and 12 additional members to be appointed by the Director or the designee of the Director, who shall be-- CommentsClose CommentsPermalink





(A) the Under Secretary of Commerce for Oceans and Atmosphere (or the designee thereof); CommentsClose CommentsPermalink





(B) a member of a recognized professional surveying association or organization CommentsClose CommentsPermalink





(C) a member of a recognized professional mapping association or organization; CommentsClose CommentsPermalink





(D) a member of a recognized professional engineering association or organization; CommentsClose CommentsPermalink





(E) a member of a recognized professional association or organization representing flood hazard determination firms; CommentsClose CommentsPermalink





(F) a representative of the United States Geological Survey; CommentsClose CommentsPermalink





(G) a representative of a recognized professional association or organization representing State geographic information; CommentsClose CommentsPermalink





(H) a representative of State national flood insurance coordination offices; CommentsClose CommentsPermalink





(I) a representative of the Corps of Engineers; CommentsClose CommentsPermalink





(J) the Secretary of the Interior (or the designee thereof); CommentsClose CommentsPermalink





(K) the Secretary of Agriculture (or the designee thereof); CommentsClose CommentsPermalink





(L) a member of a recognized regional flood and storm water management organization; CommentsClose CommentsPermalink





(M) a representative of a State agency that has entered into a cooperating technical partnership with the Director and has demonstrated the capability to produce flood insurance rate maps; and CommentsClose CommentsPermalink





(N) a representative of a local government agency that has entered into a cooperating technical partnership with the Director and has demonstrated the capability to produce flood insurance rate maps. CommentsClose CommentsPermalink





(2) QUALIFICATIONS- Members of the Council shall be appointed based on their demonstrated knowledge and competence regarding surveying, cartography, remote sensing, geographic information systems, or the technical aspects of preparing and using flood insurance rate maps. CommentsClose CommentsPermalink





(c) Duties- The Council shall-- CommentsClose CommentsPermalink





(1) recommend to the Director how to improve in a cost-effective manner the-- CommentsClose CommentsPermalink





(A) accuracy, general quality, ease of use, and distribution and dissemination of flood insurance rate maps and risk data; and CommentsClose CommentsPermalink





(B) performance metrics and milestones required to effectively and efficiently map flood risk areas in the United States; CommentsClose CommentsPermalink





(2) recommend to the Director mapping standards and guidelines for-- CommentsClose CommentsPermalink





(A) flood insurance rate maps; and CommentsClose CommentsPermalink





(B) data accuracy, data quality, data currency, and data eligibility; CommentsClose CommentsPermalink





(3) recommend to the Director how to maintain on an ongoing basis flood insurance rate maps and flood risk identification; CommentsClose CommentsPermalink





(4) recommend procedures for delegating mapping activities to State and local mapping partners; CommentsClose CommentsPermalink





(5) recommend to the Director and other Federal agencies participating in the Council-- CommentsClose CommentsPermalink





(A) methods for improving interagency and intergovernmental coordination on flood mapping and flood risk determination; and CommentsClose CommentsPermalink





(B) a funding strategy to leverage and coordinate budgets and expenditures across Federal agencies; and CommentsClose CommentsPermalink





(6) submit an annual report to the Director that contains-- CommentsClose CommentsPermalink





(A) a description of the activities of the Council; CommentsClose CommentsPermalink





(B) an evaluation of the status and performance of flood insurance rate maps and mapping activities to revise and update flood insurance rate maps, as required under section 119; and CommentsClose CommentsPermalink





(C) a summary of recommendations made by the Council to the Director. CommentsClose CommentsPermalink





(d) Windstorms-`(1) STUDIES AND INVESTIGATIONS- The DirectorFuture Conditions Risk Assessment and Modeling Report- CommentsClose CommentsPermalink





(1) IN GENERAL- The Council shall carry onsult with scientists and technical experts, other Federal agencies, States, and local communities to-- CommentsClose CommentsPermalink





(A) develop recommendations on how to-- CommentsClose CommentsPermalink





(i) ensure that flood insurance rate maps incorporate the best available climate science to assess flood risks; and CommentsClose CommentsPermalink





(ii) ensure that the Federal Emergency Management Agency uses the best available methodology to consider the impact of-- CommentsClose CommentsPermalink





(I) the rise in the sea level; and CommentsClose CommentsPermalink





(II) future development on flood risk; and CommentsClose CommentsPermalink





(B) not later than 1 year after the date of enactment of this title, prepare written recommendations in a future conditions risk assessment and modeling report and to submit such recommendations to the Director. CommentsClose CommentsPermalink





(2) RESPONSIBILITY OF THE DIRECTOR- The Director, as part of the ongoing program to review and update National Flood Insurance Program rate maps under section 119, shall incorporate any future risk assessment submitted under paragraph (1)(B) in any such revision or update. CommentsClose CommentsPermalink





(e) 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'). CommentsClose CommentsPermalink





(f) Coordination- To ensure that the Council's recommendations are consistent, to the maximum extent practicable, with national digital spatial data collection and management standards, the Chairperson shall consult with the Chairperson of the Federal Geographic Data Committee (established pursuant to OMB Circular A-16). CommentsClose CommentsPermalink





(g) Compensation- Members of the Council shall receive no additional compensation by reason of their service on the Council. CommentsClose CommentsPermalink





(h) Meetings and Actions- CommentsClose CommentsPermalink





(1) IN GENERAL- The Council shall meet not less frequently than twice each year at the request of the Chairperson or a majority of its members, and may take action by a vote of the majority of the members. CommentsClose CommentsPermalink





(2) INITIAL MEETING- The Director, or a person designated by the Director, shall request and coordinate the initial meeting of the Council. CommentsClose CommentsPermalink





(i) Officers- The Chairperson may appoint officers to assist in carrying out the duties of the Council under subsection (c). CommentsClose CommentsPermalink





(j) Staff- CommentsClose CommentsPermalink





(1) STAFF OF FEMA- Upon the request of the Chairperson, the Director may detail, on a nonreimbursable basis, personnel of the Federal Emergency Management Agency to assist the Council in carrying out its duties. CommentsClose CommentsPermalink





(2) STAFF OF OTHER FEDERAL AGENCIES- Upon request of the Chairperson, any other Federal agency that is a member of the Council may detail, on a non-reimbursable basis, personnel to assist the Council in carrying out its duties. CommentsClose CommentsPermalink





(k) Powers- In carrying out this section, the Council may hold hearings, receive evidence and assistance, provide information, and conduct research, as it considers appropriate. CommentsClose CommentsPermalink





(l) Report to Congress- The Director, on an annual basis, shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Office of Management and Budget on the-- CommentsClose CommentsPermalink





(1) recommendations made by the Council; and CommentsClose CommentsPermalink





(2) actions taken by the Federal Emergency Management Agency to address such recommendations to improve flood insurance rate maps and flood risk data. CommentsClose CommentsPermalink

(a) Reviewing, Updating, and Maintaining Maps- The Director, in coordination with the Technical Mapping Advisory Council established under section 118, shall establish an ongoing program under which the Director shall review, update, and maintain National Flood Insurance Program rate maps in accordance with this section. CommentsClose CommentsPermalink





(b) Mapping- CommentsClose CommentsPermalink





(1) IN GENERAL- In carrying out the program established under subsection (a), the Director shall-- CommentsClose CommentsPermalink





(A) identify, review, update, maintain, and publish National Flood Insurance Program rate maps with respect to-- CommentsClose CommentsPermalink





(i) all areas located within the 100-year floodplain; CommentsClose CommentsPermalink





(ii) all areas located within the 500-year floodplain; CommentsClose CommentsPermalink





(iii) areas of residual risk that have not previously been identified, including areas that are protected levees, dams, and other man-made structures; and CommentsClose CommentsPermalink





(iv) areas that could be inundated as a result of the failure of a levee, dam, or other man-made structure; CommentsClose CommentsPermalink





(v) the level of protection provided by man-made structures. CommentsClose CommentsPermalink





(B) establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each such area; and CommentsClose CommentsPermalink





(C) use, in identifying, reviewing, updating, maintaining, or publishing any National Flood Insurance Program rate map required under this section or under the National Flood Insurance Act of 1968, the most accurate topography and elevation data available. CommentsClose CommentsPermalink





(2) MAPPING ELEMENTS- Each map updated under this section shall: CommentsClose CommentsPermalink





(A) GROUND ELEVATION DATA- Assess the accuracy of current ground elevation data used for hydrologic and hydraulic modeling of flooding sources and mapping of the flood hazard and wherever necessary acquire new ground elevation data utilizing the most up-to-date geospatial technologies in accordance with the existing guidelines and specifications of the Federal Emergency Management Agency. CommentsClose CommentsPermalink





(B) DATA ON A WATERSHED BASIS- Develop National Flood Insurance Program flood data on a watershed basis-- CommentsClose CommentsPermalink





(i) to provide the most technically effective and efficient studies and investigations under this section to determine appropriate measures in wind events as to wind hazard prevention, and may enter into contracts, agreements, and other appropriate arrangements to carry out such activities. Such studies and investigations shall include laws, regulations, and ordinance relating to the orderly development and use of areas subject to damage from windstorm risks, and zoning building codes, building permits, and subdivision and other building restrictions for such areas.`(2) CRITERIA- On the basis of the studies and investigations pursuant to paragraph (1) and such other information as may be appropriate, the Direct shall establish comprehensive criteria designed to encourage, where necessary, the adoption of adequate State and local measures whichhydrologic and hydraulic modeling; and CommentsClose CommentsPermalink





(ii) to eliminate, to the maximum extent feasible, will assist in reducing damage caused by windstorms, discourage density and intensity or range of use increases in locations subject to windstorm damage, and enforce restrictions on the alteration of wetlands coastal dunes and vegetation and other natural features that are known to prevent or reduce such damage.`possible, discrepancies in base flood elevations between adjacent political subdivisions. CommentsClose CommentsPermalink





(3) COORDINATION WITH STATE AND LOCAL GOVERNMENTS- The DirectorOTHER INCLUSIONS- In updating maps under this section, the Director shall include-- CommentsClose CommentsPermalink





(A) any relevant information on coastal inundation from-- CommentsClose CommentsPermalink





(i) an applicable inundation map of the Corps of Engineers; and CommentsClose CommentsPermalink





(ii) data of the National Oceanic and Atmospheric Administration relating to storm surge modeling; CommentsClose CommentsPermalink





(B) any relevant information of the United States Geological Survey on stream flows, watershed characteristics, and topography that is useful in the identification of flood hazard areas, as determined by the Director; CommentsClose CommentsPermalink





(C) any relevant information on land subsidence, coastal erosion areas, and other floor-related hazards; CommentsClose CommentsPermalink





(D) any relevant information or data of the National Oceanic and Atmospheric Administration and the United States Geological Survey relating to the best available climate science and the potential for future inundation from sea level rise, increased precipitation, and increased intensity of hurricanes due to global warming; and CommentsClose CommentsPermalink





(E) any other relevant information as may be recommended by the Technical Mapping Advisory Committee. CommentsClose CommentsPermalink





(c) Standards- In updating and maintaining maps under this section, the Director shall-- CommentsClose CommentsPermalink





(1) establish standards to-- CommentsClose CommentsPermalink





(A) ensure that maps are adequate for-- CommentsClose CommentsPermalink





(i) flood risk determinations; and CommentsClose CommentsPermalink





(ii) use by State and local governments in managing development to reduce the risk of flooding; and CommentsClose CommentsPermalink





(B) facilitate identification and use of consistent methods of data collection and analysis by the Director, in conjunction with State and local governments, in developing maps for communities with similar flood risks, as determined by the Director; and CommentsClose CommentsPermalink





(2) publish maps in a format that is-- CommentsClose CommentsPermalink





(A) digital geospatial data compliant; CommentsClose CommentsPermalink





(B) compliant with the open publishing and data exchange standards established by the Open Geospatial Consortium; and CommentsClose CommentsPermalink





(C) compliant with the North American Vertical Datum of 1998 for New Hydrologic and Hydraulic Engineering. CommentsClose CommentsPermalink





(d) Communication and Outreach- CommentsClose CommentsPermalink





(1) IN GENERAL- The Director shall-- CommentsClose CommentsPermalink





(A) work to enhance communication and outreach to States, local communities, and property owners about the effects of-- CommentsClose CommentsPermalink





(i) any potential changes to National Flood Insurance Program rate maps that may result from the mapping program required under this section; and CommentsClose CommentsPermalink





(ii) that any such changes may have on flood insurance purchase requirements; and CommentsClose CommentsPermalink





(B) engage with local communities to enhance communication and outreach to the residents of such communities on the matters described under subparagraph (A). CommentsClose CommentsPermalink





(2) REQUIRED ACTIVITIES- The communication and outreach activities required under paragraph (1) shall work closely with and provide any necessary technical assistance to State, interstate, and local governmental agencies, to encourage the application of criteria established under paragraph (2) and the adoption and enforcement of measures referred to in such paragraph.'.(e) Definitions- Section 1370 of the National Flood Insurance Act of 1968include-- CommentsClose CommentsPermalink





(A) notifying property owners when their properties become included in, or when they are excluded from, an area having special flood hazards and the effect of such inclusion or exclusion on the applicability of the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (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 `; and'; and(3) by adding at the end the following new paragraph:`(16) the term `windstorm' means any hurricane, tornado, cyclone, typhoon, or other wind event.'.SEC. 8. MAXIMUM COVERAGE LIMITS.Subsection (b) of section 1306 of012a) to such properties; CommentsClose CommentsPermalink





(B) educating property owners regarding the flood risk and reduction of this risk in their community, including the continued flood risks to areas that are no longer subject to the flood insurance mandatory purchase requirement; CommentsClose CommentsPermalink





(C) educating property owners regarding the benefits and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies under 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 `$335,000';(2) in paragraph (3), by striking `$100,000' and inserting `$135,000'; and(3) in paragraph (4)--(A) by striking `$500,000' each place such term appears and inserting `$670,000'; and(B) by inserting before `; and' the following: `; except that, in the case of any nonresidential property that is a structure containing more than one dwelling unit that is made available for occupancy by rental (notwithstanding the provisions applicable to the determination of the risk premium rate for such property), additional flood insurance in excess of such limits shall be made available1 et seq.) for such properties and the contents of such properties; CommentsClose CommentsPermalink





(D) educating property owners about flood map revisions and the process available such owners to appeal proposed changes in flood elevations through their community; and CommentsClose CommentsPermalink





(E) encouraging property owners to maintain or acquire flood insurance coverage. CommentsClose CommentsPermalink





(e) Authorization of Appropriations- There is authorized to be appropriated to the Director to every insured upon renewal and every applicant for insurance so as to enable any such insured or applicant to receive coverage up to a total amount that is equal to the product of the total number of such rental dwelling units in such property and the maximum coverage limit per dwelling unit specified in paragraph (2); except that in the case of any such multi-unit, nonresidential rental property that is a pre-FIRM structure (as such term is defined in section 578(b) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4014 note)), the risk premium rate for the first $500,000 of coverage shall be determined in accordance with section 1307(a)(2) and the risk premium rate for any coverage in excess of such amount shall be determined in accordance with section 1307(a)(1)'.SEC. 9. COVERAGEcarry out this section $400,000,000 for each of fiscal years 2008 through 2013. CommentsClose CommentsPermalink

SEC. 120. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR ADDITIONAL LIVING EXPENSES, BASEMENT IMPROVEMENTS, BUSINESS INTERRUPTION, AND REPLACEMENT COST OF CONTENTS.Subsection (b) of section 1306UPDATING FLOOD MAPS.

Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended--(1) in paragraph (4), by striking `and' at the end;(2) in paragraph (5)--(A) by inserting `pursuant to paragraph (2), (3), or (4)' after `any flood insurance coverage'; and(B) by striking the period at the end and inserting101(f)(2)) is amended by striking `, but which may not exceed 50 percent of the cost of carrying out the requested revision or update'. CommentsClose CommentsPermalink

(a) Interagency Budget Crosscut Report- CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Homeland Security, the Director, the Director of the Office of Management and Budget, and the heads of each Federal department or agency carrying out activities under sections 118 and 119 shall work together to ensure that flood risk determination data and geospatial data are shared among Federal agencies in order to coordinate the efforts of the Nation to reduce its vulnerability to flooding hazards. CommentsClose CommentsPermalink





(2) REPORT- Not later than 30 days after the submission of the budget of the United States Government by the President to Congress, the Director of the Office of Management and Budget, in coordination with the Federal Emergency Management Agency, the United States Geological Survey, the National Oceanic and Atmospheric Administration, the Corps of Engineers, and other Federal agencies, as appropriate, shall submit to the appropriate authorizing and appropriating committees of the Senate and the House of Representatives a semicolon; and(3) by adding at the end the following new paragraphs:`(6) in the case of any residential property, each renewal or new contract for flood insurance coverage shall provide not less than $1,000 aggregate liability per dwelling unit for any necessary increases in living expenses incurred by the insured when losses from a flood make the residence unfit to live in, which coverage shall be available only at chargeable rates that are not less than the estimated premium rates for such coverage determined in accordance with section 1307(a)(1);`(7) in the case of any residential property, optional coverage for additional living expenses described in paragraph (6) shall be made available to every insured upon renewal and every applicant in excess of the limits provided in paragraph (6) in such amounts and at such rates as the Director shall establish, except that such chargeable rates shall not be less than the estimated premium rates for such coverage determined in accordance with section 1307(a)(1);`(8) in the case of any residential property, optional coverage for losses, resulting from floods, to improvements and personal property located in basements, crawl spaces, and other enclosed areas under buildings that are not covered by primary flood insurance coverage under this title, shall be made available to every insured upon renewal and every applicant, except that such coverage shall be made available only at chargeable rates that are not less than the estimated premium rates for such coverage determined in accordance with section 1307(a)(1);`(9) in the case of any commercial property or other residential property, including multifamily rental property, optional coverage for losses resulting from any partial or total interruption of the insured's business caused by damage to, or loss of, such property from a flood shall be made available to every insured upon renewal and every applicant, except that--`(A) for purposes of such coverage, losses shall be determined based on the profits the covered business would have earned, based on previous financial records, had the flood not occurred; and`(B) such coverage shall be made available only at chargeable rates that are not less than the estimated premium rates for such coverage determined in accordance with section 1307(a)(1); and`(10) in the case of any residential property and any commercial property, optional coverage for the full replacement costs of any contents related to the structure that exceed the limits of coverage otherwise provided in this subsection shall be made available to every insured upon renewal and every applicant, except that such coverage shall be made available only at chargeable rates that are not less than the estimated premium rates for such coverage determined in accordance with section 1307(a)(1).'port, certified by the Secretary or head of each such agency, an interagency budget crosscut report that displays the budget proposed for each of the Federal agencies working on flood risk determination data and digital elevation models, including any planned interagency or intraagency transfers. CommentsClose CommentsPermalink





(b) Duties of the Director- In carrying out sections 118 and 119, the Director shall-- CommentsClose CommentsPermalink





(1) participate, pursuant to section 216 ofPublic Law 107-347 (116 Stat. 2945), in the establishment of such standards and common protocols as are necessary to assure the interoperability of geospatial data for all users of such information; CommentsClose CommentsPermalink





(2) coordinate with, seek assistance and cooperation of, and provide liaison to the Federal Geographic Data Committee pursuant to Office of Management and Budget Circular A-16 and Executive Order 12906 for the implementation of and compliance with such standards; CommentsClose CommentsPermalink





(3) integrate with, leverage, and coordinate funding of, to the maximum extent practicable, the current flood mapping activities of each unit of State and local government; CommentsClose CommentsPermalink





(4) integrate with, leverage, and coordinate, to the maximum extent practicable, the current geospatial activities of other Federal agencies and units of State and local government; and CommentsClose CommentsPermalink





(5) develop a funding strategy to leverage and coordinate budgets and expenditures, and to establish joint funding mechanisms with other Federal agencies and units of State and local government to share the collection and utilization of geospatial data among all governmental users. CommentsClose CommentsPermalink

SEC. 10. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.The National Flood Insurance Act of 1968 is amended by inserting after section 1308 (42 U.S.C. 4015) the following new section:`SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.`(a) In General- The Director shall, upon entering22. INTERAGENCY COORDINATION STUDY.

(a) In General- The Director shall enter into a contract for flood insurance coverage under this title for any property located in an area having special flood hazards--`with the National Academy of Public Administration to conduct a study on how the Federal Emergency Management Agency-- CommentsClose CommentsPermalink





(1) provide to the insured sufficient copies of the notice developed pursuant to subsection (b); and`(2) strongly encourage the insured to provide a copy of the notice, or otherwise provide notification of the information under subsectionshould improve interagency and intergovernmental coordination on flood mapping, including a funding strategy to leverage and coordinate budgets and expenditures; and CommentsClose CommentsPermalink





(2) can establish joint funding mechanisms with other Federal agencies and units of State and local government to share the collection and utilization of data among all governmental users. CommentsClose CommentsPermalink





(b) in the manner that the manager or landlord deems most appropriate, to each such tenant and to each new tenant upon commencement of such a tenancy.`Timing- Not later than 180 days after the date of enactment of this title, the National Academy of Public Administration shall report the findings of the study required under subsection (a) to the-- CommentsClose CommentsPermalink





(1) Committee on Banking, Housing, and Urban Affairs of the Senate; CommentsClose CommentsPermalink





(2) Committee on Financial Services of the House of Representatives; CommentsClose CommentsPermalink





(3) Committee on Appropriations of the Senate; and CommentsClose CommentsPermalink





(4) Committee on Appropriations of the House of Representatives. CommentsClose CommentsPermalink

(a) Nonmandatory Participation in National Flood Insurance Program for 500-Year Floodplain- Any area located within the 500-year floodplain shall not be subject to the mandatory purchase requirements of sections 102 or 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106). CommentsClose CommentsPermalink





(b) Notice- CommentsClose CommentsPermalink





Notice to a tenant of a property in accordance with this subsection is written notice that clearly informs a tenant--`(1) that the property is(1) BY DIRECTOR- In carrying out the National Flood Insurance Program, the Director shall provide notice to any community located in an area having special flood hazards;`(2) that flood insurance coverage is available under the national flood insurance program under this title for contents of the unit or structure leased by the tenant;`(3) of the maximum amount of such coverage for contents available under this title at that time; and`(4) of where towithin the 500-year floodplain. CommentsClose CommentsPermalink





(2) TIMING OF NOTICE- The notice required under paragraph (1) shall be made not later than 6 months after the date of completion of the initial mapping of the 500-year floodplain, as required under section 118. CommentsClose CommentsPermalink





(3) LENDER REQUIRED NOTICE- CommentsClose CommentsPermalink





(A) REGULATED LENDING INSTITUTIONS- Each Federal or State entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, require regulated lending institutions, as a condition of making, increasing, extending, or renewing any loan secured by property located in an area within the 500-year floodplain, to notify the purchaser or lessee (or obtain information regarding how to obtain such coverage, including a telephone number, mailing address, and location on the World Wide Web of the Director where such information is available.'satisfactory assurances that the seller or lessor has notified the purchaser or lessee) and the servicer of the loan that such property is located in an area within the 500-year floodplain, in a manner that is consistent with and substantially identical to the notice required under section 1364(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104a(a)(1)). CommentsClose CommentsPermalink





(B) FEDERAL OR STATE AGENCY LENDERS- Each Federal or State agency lender shall, by regulation, require notification in the same manner as provided under subparagraph (A) with respect to any loan that is made by a Federal or State agency lender and secured by property located in an area within the 500-year floodplain. CommentsClose CommentsPermalink





(C) PENALTY FOR NONCOMPLIANCE- Any regulated lending institution or Federal or State agency lender that fails to comply with the notice requirements established by this paragraph shall be subject to the penalties prescribed under section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)). CommentsClose CommentsPermalink

SEC. 11. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES24. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

Section 1308(e) of the National Flood Insurance Act of 1968 (45(b) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 4015(e)) is amended by striking `10 percent' and inserting `15 percent'.SEC. 12. REPORT REGARDING BORROWING AUTHORITY.Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Director of the Federal Emergency Management Agency shall submit a report to the Congress setting forth a plan for repaying within 10 years all amounts that, as of the expiration of such period, have been borrowed under the authority of section 1309(a)2604(b)) is amended-- CommentsClose CommentsPermalink





(1) in paragraph (4), by striking `; and' and inserting a semicolon; CommentsClose CommentsPermalink





(2) in paragraph (5), by striking the period and inserting `; and'; and CommentsClose CommentsPermalink





(3) by adding at the end the following: CommentsClose CommentsPermalink





`(6) an explanation of flood insurance and the availability of flood insurance under the National Flood Insurance Program, whether or not the real estate is located in an area having special flood hazards.'. CommentsClose CommentsPermalink

(a) Permissible Testing- A temporary residential structure built for the purpose of testing a new flood proofing technology, as described in subsection (b), in any State or community that receives mitigation assistance under section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) and not yet repaid as of such date.SEC. 13. FEMA104c) may not be construed to be in violation of any flood risk mitigation plan developed by that State or community and approved by the Director of the Federal Emergency Management Agency. CommentsClose CommentsPermalink





(b) Conditions on Testing- Testing permitted under subsection (a) shall-- CommentsClose CommentsPermalink





(1) be performed on an uninhabited residential structure; CommentsClose CommentsPermalink





(2) require dismantling of the structure at the conclusion of such testing; and CommentsClose CommentsPermalink





(3) require that all costs associated with such testing and dismantling be covered by the individual or entity conducting the testing, or on whose behalf the testing is conducted. CommentsClose CommentsPermalink





(c) Rule of Construction- Nothing in this section shall be construed to alter, limit, or extend the availability of flood insurance to any structure that may employ, utilize, or apply any technology tested under subsection (b). CommentsClose CommentsPermalink

SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.

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 new sectioninserting after section 1313 the following: CommentsClose CommentsPermalink

`SEC. 1325. FEMA14. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.

`(a) Requirement Tto Participate- In the case of the occurrence of a natural catastrophe that may have resulted in flood damage covered by insurance made available under the national flood insurance program and a loss covered bymajor disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122) that may have resulted in flood damage under the flood insurance program established under this chapter and other personal lines residential property insurance policycoverage offered by a State regulated insurer, upon request made by the insurance commissioner of a State (or such other official responsible for regulating the business of insurance in the State) for the participation of representatives of the Director in a program sponsored by such State for nonbinding mediation of insurance claims resulting from a natural catastrophe, the Director shall cause such representatives to participate in such State program, when claims under the national flood insurance program are involved,major disaster, the Director shall cause representatives of the flood insurance program to participate in such a State program where claims under the flood insurance program are involved to expedite settlement of flood damage claims resulting from such catastrophedisaster. CommentsClose CommentsPermalink





`(b) Extent of Participation- Participation by representatives of the Director required under subsection (a) with respect to flood damage claims resulting from a natural catastrophe shall include--`(1) providing adjustersIn satisfying the requirements of subsection (a), the Director shall require that each representative of the Director-- CommentsClose CommentsPermalink





`(1) be certified for purposes of the national flood insurance program who are authorizedflood insurance program to settle claims against such program resulting from such catastrophedisaster in amounts up to the limits of policies under such program; CommentsClose CommentsPermalink





`(2) requiring such adjusters to attend State-sponsored mediation meetings regarding flood insurance claims resulting from such catastrophe atdisaster at such times and places as may be arranged by the State; CommentsClose CommentsPermalink





`(3) participating in good-e in good faith negotiations toward the settlement of such claims with policyholders of coverage made available under the national flood insuranceflood insurance program; and CommentsClose CommentsPermalink





`(4) finalizinge the settlement of such claims on behalf of the national flood insurance program with suchflood insurance program with such policyholders. CommentsClose CommentsPermalink





`(c) Coordination- Representatives of the Director who participate pursuant to this section in a State-sponsored mediation program with respect to a natural catastrophe shall at shall at all times coordinate their activities with insurance officials of the State and representatives of insurers for the purposes of consolidating and expediting the settlement of claims under the national flood insurance program resulting from such catastrophe at the earliest possible timedisaster. CommentsClose CommentsPermalink





`(d) Qualifications of Mediators- Each State mediator participating in State-sponsored mediation under this section shall be-- CommentsClose CommentsPermalink





`(1)(A) a member in good standing of the State bar in the State in which the mediation is to occur with at least 2 years of practical experience; and CommentsClose CommentsPermalink





`(B) an active member of such bar for at least 1 year prior to the year in which such mediator's participation is sought; or CommentsClose CommentsPermalink





`(2) a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State in which the judge presided for at least 5 years prior to the year in which such mediator's participation is sought. CommentsClose CommentsPermalink





`(e) Mediation Proceedings and Privileged DocumentsDocuments Privileged- As a condition of the participation of Representatives of the Director pursuant to this section in State-sponsored mediparticipation, all statements made and documents produced pursuant to suchState-sponsored mediation involving representatives of the Director shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation. CommentsClose CommentsPermalink





`(e) Effect of Participation onf) Liability, Right, and Obligations- Participation of Representatives of the Director pursuant to this secs, or Obligations Not Affected- Participation in State-sponsored mediation shall not, as described in this section does not-- CommentsClose CommentsPermalink





`(1) affect or expand the liability of any party in contract or in tort, nor shall it; or CommentsClose CommentsPermalink





`(2) affect the rights or obligations of the parties as provided in the Standard Flood Insurance Policy under the national flood insurance program, regulations of the Federal Emergency Management Agency, this Act, or Federal common, as established-- CommentsClose CommentsPermalink





`(A) in any regulation issued by the Director, including any regulation relating to a standard flood insurance policy; CommentsClose CommentsPermalink





`(B) under this Act; and CommentsClose CommentsPermalink





`(C) under any other provision of Federal law. CommentsClose CommentsPermalink





`(fg) Exclusive Federal Jurisdiction- Participation of Representatives of the Director pursuant to this section in State-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of United States courts as provided in this Act.`(g, as set forth in this Act. CommentsClose CommentsPermalink





`(h) Cost Limitation- Nothing in this section shall be construed to require the Director or representativesa representative of the Director to pay additional mediation fees relating to flood insurance claims associated with a State-sponsored mediation program in which representatives of the Director participate.`(hsuch representative of the Director participates. CommentsClose CommentsPermalink





`(i) Exception- In the case of the occurrence of a natural catastrophe that results in flood damage claims under the national flood insurance program andmajor disaster that results in flood damage claims under the national flood insurance program and that does not result in any loss covered by a personal lines residential property insurance policy-- CommentsClose CommentsPermalink





`(1) this section shall not apply; and CommentsClose CommentsPermalink





`(2) the provisions of the Standard Flood Insurance Pstandard flood insurance policy under the national flood insurance program and the appeals process established pursuant to sectionunder section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108-264; 118 Stat. 726) and42 U.S.C. 4011 note) and the regulations issued pursuant to such section shall apply exclusively. CommentsClose CommentsPermalink





`(i) Representatives ofj) Representatives of the Director- For purposes of this section, the term `representatives of the Director' means representatives of the national flood insurance program who participate in the appeals process established pursuant to sectionunder section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108-264; 118 Stat. 726) and regulations issued pursuant to such section.'.SEC. 14. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 4027) is amended--(1) and inserting in the section heading, by striking `ANNUAL REPORT TO CONGRESS';(2) in subsection (a)--(A) by striking `biennially';(B) by striking `the President for submission to'; and(C) by inserting `not later than June 30 of each year' before the period at the end;(3) in subsection (b), by striking `biennial' and inserting `annual'; and(4) by adding at the end the following new subsection:`(c) Financial Status of Program- The report under this section for each year shall include information regarding the financial status of the national flood insurance program under this title, including a description of the financial status of the National Flood Insurance Fund and current and projected levels of claims, premium receipts, expenses, and borrowing under the program.'.SEC. 15. FLOOD INSURANCE OUTREACH.(a) Grants- Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section:`SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS AND RENTERS.`(a) In General- The Director may, to the extent amounts are made available pursuant to subsection (h), make grants to local governmental agencies responsible for floodplain management activities (including such agencies of Indians tribes, as such term is defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) in communities that participate in the national flood insurance program under this title, for use by such agencies to carry out outreach activities to encourage and facilitate the purchase of flood insurance protection under this Act by owners and renters of properties in such communities and to promote educational activities that increase awareness of flood risk reduction.`(b) Outreach Activities- Amounts from a grant under this section shall be used only for activities designed to--`(1) identify owners and renters of properties in communities that participate in the national flood insurance program, including owners of residential and commercial properties;`(2) notify such owners and renters when their properties become included in, or when they are excluded from, an area having special flood hazards and the effect of such inclusion or exclusion on the applicability of the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such properties;`(3) educate such owners and renters regarding the flood risk and reduction of this risk in their community, including the continued flood risks to areas that are no longer subject to the flood insurance mandatory purchase requirement;`(4) educate such owners and renters regarding the benefits and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies under this title for such properties and the contents of such properties; and`(5) encouraging such owners and renters to maintain or acquire such coverage.`(c) Cost Sharing Requirement-`(1) IN GENERAL- In any fiscal year, the Director may not provide a grant under this section to a local governmental agency in an amount exceeding 3 times the amount that the agency certifies, as the Director shall require, that the agency will contribute from non-Federal funds to be used with grant amounts only for carrying out activities described in subsection (b).`(2) NON-FEDERAL FUNDS- For purposes of this subsection, the term `non-Federal funds' includes State or local government agency amounts, in-kind contributions, any salary paid to staff to carry out the eligible activities of the grant recipient, the value of the time and services contributed by volunteers to carry out such services (at a rate determined by the Director), and the value of any donated material or building and the value of any lease on a building.`(d) Administrative Cost Limitation- Notwithstanding subsection (b), the Director may use not more than 5 percent of amounts made available under subsection (g) to cover salaries, expenses, and other administrative costs incurred by the Director in making grants and provide assistance under this section.`(e) Application and Selection-`(1) IN GENERAL- The Director shall provide for local governmental agencies described in subsection (a) to submit applications for grants under this section and for competitive selection, based on criteria established by the Director, of agencies submitting such applications to receive such grants.`(2) SELECTION CONSIDERATIONS- In selecting applications of local government agencies to receive grants under paragraph (1), the Director shall consider--`(A) the existence of a cooperative technical partner agreement between the local governmental agency and the Federal Emergency Management Agency;`(B) the history of flood losses in the relevant area that have occurred to properties, both inside and outside the special flood hazards zones, which are not covered by flood insurance coverage;`(C) the estimated percentage of high-risk properties located in the relevant area that are not covered by flood insurance;`(D) demonstrated success of the local governmental agency in generating voluntary purchase of flood insurance; and`(E) demonstrated technical capacity of the local governmental agency for outreach to individual property owners.`(f) Direct Outreach by FEMA- In each fiscal year that amounts for grants are made available pursuant to subsection (h), the Director may use not more than 50 percent of such amounts to carry out, and to enter into contracts with other entities to carry out, activities described in subsection (b) in areas that the Director determines have the most immediate need for such activities.`(g) Reporting- Each local government agency that receives a grant under this section, and each entity that receives amounts pursuant to subsection (f), shall submit a report to the Director, not later than 12 months after such amounts are first received, which shall include such information as the Director considers appropriate to describe the activities conducted using such amounts and the effect of such activities on the retention or acquisition of flood insurance coverage.`(h) Authorization of Appropriations- There is authorized to be appropriated for grants under this section $50,000,000 for each of fiscal years 2008 through 2012.'.(b) Report on Current Efforts- Not later than the expiration of the 60-day period beginning on the date of the enactment of this Act, the Director of the Federal Emergency Management Agency shall submit a report to the Congress identifying and describing the marketing and outreach efforts then currently being undertaken to educate consumers regarding the benefits of obtaining coverage under the national flood insurance program.SEC. 16. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.(a) Direct Grants to Owners- Section 1323 of the National Flood Insurance Act of 1968 (42 U.S.C. 4030) is amended--(1) in the section heading, by inserting `direct' before `grants'; and(2) in the matter in subsection (a) that precedes paragraph (1)--(A) by inserting `, to owners of such properties,' before `for mitigation actions'; and(B) by striking `1' and inserting `two'.(b) Availability of Funds- Paragraph (9) of section 1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended by inserting `which shall remain available until expended,' after `any fiscal year,'.SEC. 17. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE LOSS PROPERTIES.Section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4102a) is amended--(1) in subsection (k)(1), by striking `2005, 2006, 2007, 2008, and 2009' and inserting `2008, 2009, 2010, 2011, and 2012'; and(2) by striking subsection (l).SEC. 18. FLOOD MITIGATION ASSISTANCE PROGRAM.(a) Eligibility of Property Demolition and Rebuilding- Section 1366(e)(5)(B) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) is amended by striking `or floodproofing' and inserting `floodproofing, or demolition and rebuilding'.(b) Elimination of Limitations on Aggregate Amount of Assistance- Section 1366 of the National Flood Insurance Act of 1968 is amended by striking subsection (f).(c) Source of Funds- Subsection (a) of section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d(a)) is amended by adding at the end the following new sentence: `Notwithstanding any other provision of this title, amounts made available pursuant to this subsection shall not be subject to offsetting collections through premium rates for flood insurance coverage under this title.'.(d) Technical Amendments- Section 1366 of the National Flood Insurance Act of 1968 is amended--(1) by striking `subsection (g)' each place such term appears in subsections (h) and (i)(2) and inserting `subsection (f)';(2) by redesignating subsections (g) through (k) as subsections (f) through (j), respectively; and(3) by redesignating subsection (m) as subsection (k).SEC. 19. GAO STUDY OF METHODS TO INCREASE FLOOD INSURANCE PROGRAM PARTICIPATION BY LOW-INCOME FAMILIES.(a) In General- The Comptroller General of the United States shall conduct a study to identify and analyze potential methods, practices, and incentives that would increase the extent to which low-income families (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))) that own residential properties located within areas having special flood hazards purchase flood insurance coverage for such properties under the national flood insurance program. In conducting the study, the Comptroller General shall analyze the effectiveness and costs of the various methods, practices, and incentives identified, including their effects on the national flood insurance program.(b) Report- The Comptroller General shall submit to the Congress a report setting forth the conclusions of the study under this section not later than 12 months after the date of the enactment of this Act.SEC. 20. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA GOOD FAITH ESTIMATE.Subsection (c) of section 5 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the end the following new sentence: `Each such good faith estimate shall include the following conspicuous statements and information: (1) that flood insurance coverage for residential real estate is generally available under the national flood insurance program whether or not the real estate is located in an area having special flood hazards and that, to obtain such coverage, a home owner or purchaser should contact the national flood insurance program; (2) a telephone number and a location on the World Wide Web by which a home owner or purchaser can contact the national flood insurance program; and (3) that the escrowing of flood insurance payments is required for many loans under section 102(d) of the Flood Disaster Protection Act of 1973, and may be a convenient and available option with respect to other loans.'.SEC. 21note).'. CommentsClose CommentsPermalink

SEC. 127. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004 REFORM ACT.

(a) Appeals Process- As directed in section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note), the Director of the Federal Emergency Management Agency is again directed to, not later than 90 days after the date of the enactment of this Act, 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 as required by such section.(b) Minimum Training and Education Requirements- The Director of the Federal Emergency Management Agency is directed toshall continue to work with the insurance industry, State insurance regulators, and other interested parties to implement the minimum training and education standards for all insurance agents who sell flood insurance policies that, as such standards were established by the Director underdetermined by the Director in the notice published in the Federal Register on September 1, 2005 (70 Fed. Reg. 52117) pursuant to section 207 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note). CommentsClose CommentsPermalink





(c) Report- Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Director of the Federal Emergency Management Agency shall submit a report to the Congressb) Report on the Overall Implementation of the Reform Act of 2004- Not later than 3 months after the date of the enactment of this title, the Director shall submit a report to Congress-- CommentsClose CommentsPermalink





(1) describing the implementation of each provision of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108-264) and; 118 Stat. 712); CommentsClose CommentsPermalink





(2) identifying each regulation, order, notice, and other material issued by the Director in implementing each such provisionprovision of that Act; CommentsClose CommentsPermalink





(3) explaining any statutory or implied deadlines that have not been met; and CommentsClose CommentsPermalink





(4) providing an estimate of when the requirements of such missed deadlines will be fulfilled. CommentsClose CommentsPermalink

SEC. 22. ONGOING MODERNIZATION OF FLOOD MAPS AND ELEVATION STANDARDS.128. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION ON CLAIMS PAYMENTS.

(a) In General- The Director shall collect, from property and casualty insurance companies that are authorized by the Director to participate in the Write Your Own program any information and data needed to determine the accuracy of the resolution of flood claims filed on any property insured with a standard flood insurance policy obtained under the program that was subject to a flood. CommentsClose CommentsPermalink





(b) Type of Information To Be Collected- The information and data to be collected under subsection (a)Ongoing Flood Mapping Program- Section 1360 may include-- CommentsClose CommentsPermalink





(1) any adjuster estimates made as a result of flood damage, and if the insurance company also insures the property for wind damage-- CommentsClose CommentsPermalink





(A) any adjuster estimates for both wind and flood damage; CommentsClose CommentsPermalink





(B) the amount paid to the property owner for wind and flood claims; CommentsClose CommentsPermalink





(C) the total amount paid to the policyholder for damages as a result of the event that caused the flooding and other losses; CommentsClose CommentsPermalink





(2) any amounts paid to the policyholder by the insurance company for damages to the insured property other than flood damages; and CommentsClose CommentsPermalink





(3) the total amount paid to the policyholder by the insurance company for all damages incurred to the insured property as a result of the flood. CommentsClose CommentsPermalink

(a) In General- Section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at the end the following2a) is amended-- CommentsClose CommentsPermalink





(1) in subsection (k)(1)-- CommentsClose CommentsPermalink





(A) in the first sentence, by striking `in each of fiscal years 2005, 2006, 2007, 2008, and 2009' and inserting `in each fiscal year through fiscal year 2013'; and CommentsClose CommentsPermalink





(B) by adding at the end the following new subsection:`(k) Ongoing Program To Review, Update, and Maintain Flood Insurance Program Maps-`(1) IN GENERAL- The Director, in coordination with the Technical Mapping Advisory Council established pursuant to section 576 of the National Flood Insurance Reform Act of 1994entence: `For fiscal years 2008 through the 2013, the total amount that the Director may use to provide assistance under this section shall not exceed $240,000,000.'; and CommentsClose CommentsPermalink





(2) by striking subsection (l). CommentsClose CommentsPermalink





(b) Report to Congress on Implementation Status- Not later than 6 months after the date of enactment of this title, the Director shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the status of the implementation of the pilot program for severe repetitive loss properties authorized under section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4101 note) and section 22(b) of the Flood Insurance Reform and Modernization Act of 2007, shall establish an ongoing program under which the Director shall review, update, and maintain national flood insurance program rate maps in accordance with this subsection.`(2) INCLUSIONS-`(A) COVERED AREAS- Each map updated under this subsection2a). CommentsClose CommentsPermalink





(c) Rulemaking- No later than 90 days after the date of enactment of this title, the Director shall include a depiction of--`(i) the 500-year floodplain;`(ii) areas that could be inundated as a result of the failure of a levee, as determined by the Director;`(iii) areas that could be inundated as a result of the failure of a dam, as identified under the National Dam Safety Program Act (33ssue final rules to carry out the severe repetitive loss pilot program authorized under section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 467 et seq.); and`(iv) the 100-year floodplain, including any area that would be in the 100102a). CommentsClose CommentsPermalink

`SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

`(a) Establishment of Position- CommentsClose CommentsPermalink





`(1) IN GENERAL- There shall be in the Federal Emergency Management Agency an Office of the Flood Insurance Advocate which shall be headed by the National Flood Insurance Advocate. The National Flood Insurance Advocate shall-- CommentsClose CommentsPermalink





`(A) to the extent amounts are provided pursuant to subsection (n), be compensated at the same rate as the highest rate of basic pay established for the Senior Executive Service undersection 5382 of title 5, United States Code, or, if the Director so determines, at a rate fixed under section 9503 of such title; CommentsClose CommentsPermalink





`(B) be appointed by the Director without regard to political affiliation; CommentsClose CommentsPermalink





`(C) report to and be under the general supervision of the Director, but shall not report to, or be subject to supervision by, any other officer of the Federal Emergency Management Agency; and CommentsClose CommentsPermalink





`(D) consult with the Assistant Administrator for Mitigation or any successor thereto, but shall not report to, or be subject to the general supervision by, the Assistant Administrator for Mitigation or any successor thereto. CommentsClose CommentsPermalink





`(2) QUALIFICATIONS- An individual appointed under paragraph (1)(B) shall have a background in customer service, or experience representing insureds, as well as experience in investigations or audits. CommentsClose CommentsPermalink





`(3) RESTRICTION ON EMPLOYMENT- An individual may be appointed as the National Flood Insurance Advocate only if such individual was not an officer or employee of the Federal Emergency Management Agency with duties relating to the national flood insurance program during the 2-year floodplain if not protected by a levee, dam, or other man-made structure.`(B) OTHER INCLUSIONS- In updating maps under this subsection, the Director may include--`(i) any relevant information on coastal inundation from--`(I) an applicable inundation map of the Corps of Engineers; and`(II) data of the National Oceanic and Atmospheric Administration relating to storm surge modeling;`(ii) any relevant information of the Geographical Service on stream flows, watershed characteristics, and topography that is useful in the identification of flood hazard areas, as determined by the Director; and`(iii) a description of any hazard that might impact flooding, including, as determined by the Director--`(I) land subsidence and coastal erosion areas;`(II) sediment flow areas;`(III) mud flow areas;`(IV) ice jam areas; and`(V) areas on coasts and inland that are subject to the failure of structural protective works, such as levees, dams, and floodwalls.`(C) EFFECTS OF GLOBAL WARMING- In updating and maintaining maps under this section, the Director shall--`(i) take into consideration and account for the impacts of global climate change on flood, storm, and drought risks in the United States;`(ii) takeperiod ending with such appointment and such individual agrees not to accept any employment with the Federal Emergency Management Agency for at least 2 years after ceasing to be the National Flood Insurance Advocate. Service as an employee of the National Flood Insurance Advocate shall not be taken into consideration and account for theaccount in applying this paragraph. CommentsClose CommentsPermalink





`(4) STAFF- To the extent amounts are provided pursuant to subsection (n), the National Flood Insurance Advocate may employ such personnel as may be necessary to carry out the duties of the Office. CommentsClose CommentsPermalink





`(5) INDEPENDENCE- The Director shall not prevent or prohibit the National Flood Insurance Advocate from initiating, carrying out, or completing any audit or investigation, or from issuing any subpoena or summons during the course of any audit or investigation. CommentsClose CommentsPermalink





`(6) REMOVAL- The President and the Director shall have the power to remove, discharge, or dismiss the National Flood Insurance Advocate. Not later than 15 days after the removal, discharge, or dismissal of the Advocate, the President or the Director shall report to the Committee on Banking of the Senate and the Committee on Financial Services of the House of Representatives on the basis for such removal, discharge, or dismissal. CommentsClose CommentsPermalink





`(b) Functions of Office- It shall be the function of the Office of the Flood Insurance Advocate to-- CommentsClose CommentsPermalink





`(1) assist injure under the national flood insurance program in resolving problems with the Federal Emergency Management Agency relating to such program; CommentsClose CommentsPermalink





`(2) identify areas in which such injure have problems in dealings with the Federal Emergency Management Agency relating to such program; CommentsClose CommentsPermalink





`(3) propose changes in the administrative practices of the Federal Emergency Management Agency to mitigate problems identified under paragraph (2); CommentsClose CommentsPermalink





`(4) identify potential future impact of global climate change-related weather events, such as increased hurricane activity, intensity, storm surge, sea level rise,legislative, administrative, or regulatory changes which may be appropriate to mitigate such problems; CommentsClose CommentsPermalink





`(5) conduct, supervise, and coordinate-- CommentsClose CommentsPermalink





`(A) systematic and random audits and investigations of insurance companies and associated flooding; and`(iii) use the best available climate science in assessing flood and storm risks to determine flood risks and develop such maps.`(3) STANDARDS- In updating and maintaining maps under this subsection, the Director shall establish standards toentities that sell or offer policies under the National Flood Insurance Program to determine whether such insurance companies or associated entities are allocating only flood losses under such insurance policies to the National Flood Insurance Program; and CommentsClose CommentsPermalink





`(B) audits and investigations to determine if an insurance company or associated entity described under subparagraph (A) is negotiating on behalf of the National Flood Insurance Program with third parties in good faith; CommentsClose CommentsPermalink





`(6) conduct, supervise, and coordinate investigations into the operations of the national flood insurance program for the purpose of-- CommentsClose CommentsPermalink





`(A) ensure that maps are adequate for--`(i) flood risk determinations; and`(ii) use by State and local governments in managing development to reduce the risk of floodingpromoting economy and efficiency in the administration of such program; CommentsClose CommentsPermalink





`(B) facilitate the Director, in conjunction with State and local governments, to identify and use consistent methods of data collection and analysis in developing maps for communities with similar flood risks, as determined by the Directorpreventing and detecting fraud and abuse in the program; and CommentsClose CommentsPermalink





`(C) ensure that emerging weather forecasting technology is used, where practicable, in flood map evaluations and the identification of potential risk areas.identifying, and referring to the Attorney General for prosecution, any participant in such fraud or abuse; and CommentsClose CommentsPermalink





`(7) identify and investigate conflicts of interest that undermine the economy and efficiency of the national flood insurance program. CommentsClose CommentsPermalink





`(c) Authority of the National Flood Insurance Advocate- The National Flood Insurance Advocate may-- CommentsClose CommentsPermalink





`(1) have access to all records, reports, audits, reviews, documents, papers, recommendations, or other material available to the Director which relate to administration or operation of the national flood insurance program with respect to which the National Flood Insurance Advocate has responsibilities under this section, including information submitted pursuant to Section 128 of this Act; CommentsClose CommentsPermalink





`(2) undertake such investigations and reports relating to the administration or operation of the national flood insurance program as are, in the judgment of the National Flood Insurance Advocate, necessary or desirable; CommentsClose CommentsPermalink





`(3) request such information or assistance as may be necessary for carrying out the duties and responsibilities provided by this section from any Federal, State, or local governmental agency or unit thereof; CommentsClose CommentsPermalink





`(4) MAPPING ELEMENTS- Each map updated under this section shall meet the following requirements:`(A) GROUND ELEVATION DATA- The maps shall assess the accuracy of current ground elevation data used for hydrologic and hydraulic modeling of flooding sources and mapping of the flood hazard and wherever necessary acquire new ground elevation data utilizing the most up-to-date geospatial technologies in accordance with the existing guidelines and specifications of therequest the production of information, documents, reports, answers, records (including phone records), accounts, papers, emails, hard drives, backup tapes, software, audio or visual aides, and any other data and documentary evidence necessary in the performance of the functions assigned to the National Flood Insurance Advocate by this section; CommentsClose CommentsPermalink





`(5) request the testimony of any person in the employ of any insurance company or associated entity participating in the National Flood Insurance Program, described under subsection (b)(5)(A), or any successor to such company or entity, including any member of the board of such company or entity, any trustee of such company or entity, any partner in such company or entity, or any agent or representative of such company or entity; CommentsClose CommentsPermalink





`(6) select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates; CommentsClose CommentsPermalink





`(7) obtain services as authorized bysection 3109 of title 5, United States Code, at daily rates not to exceed the equivalent rate prescribed for the rate of basic pay for a position at level IV of the Executive Schedule; and CommentsClose CommentsPermalink





`(8) to the extent and in such amounts as may be provided in advance by appropriations Acts, enter into contracts and other arrangements for audits, studies, analyses, and other services with public agencies and with private persons, and to make such payments as may be necessary to carry out the provisions of this section. CommentsClose CommentsPermalink





`(d) Additional Duties of the NFIA- The National Flood Insurance Advocate shall-- CommentsClose CommentsPermalink





`(1) monitor the coverage and geographic allocation of regional offices of flood insurance advocates; CommentsClose CommentsPermalink





`(2) develop guidance to be distributed to all Federal Emergency Management Agency.`(B) DATA ON A WATERSHED BASIS- The maps shall develop national flood insurance program flood data on a watershed basis--`(i) to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; and`(ii) to eliminate, officers and employees having duties with respect to the national flood insurance program, outlining the criteria for referral of inquiries by insureds under such program to regional offices of flood insurance advocates; CommentsClose CommentsPermalink





`(3) ensure that the local telephone number for each regional office of the flood insurance advocate is published and available to such insureds served by the office; and CommentsClose CommentsPermalink





`(4) establish temporary State or local offices where necessary to meet the needs of qualified insureds following a flood event. CommentsClose CommentsPermalink





`(e) Other Responsibilities- CommentsClose CommentsPermalink





`(1) ADDITIONAL REQUIREMENTS RELATING TO CERTAIN AUDITS- Prior to conducting any audit or investigation relating to the allocation of flood losses under subsection (b)(5)(A), the National Flood Insurance Advocate may-- CommentsClose CommentsPermalink





`(A) consult with appropriate subject-matter experts to identify the data necessary to determine whether flood claims paid by insurance companies or associated entities on behalf the national flood insurance program reflect damages caused by flooding; CommentsClose CommentsPermalink





`(B) collect or compile the data identified in subparagraph (A), utilizing existing data sources to the maximum extent possible, discrepancies in base flood elevations between adjacent political subdivisions.racticable; and CommentsClose CommentsPermalink





`(C) establish policies, procedures, and guidelines for application of such data in all audits and investigations authorized under this section. CommentsClose CommentsPermalink





`(2) ANNUAL REPORTS- CommentsClose CommentsPermalink





`(A) ACTIVITIES- Not later than December 31 of each calendar year, the National Flood Insurance Advocate shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the activities of the Office of the Flood Insurance Advocate during the fiscal year ending during such calendar year. Any such report shall contain a full and substantive analysis of such activities, in addition to statistical information, and shall-- CommentsClose CommentsPermalink





`(i) identify the initiatives the Office of the Flood Insurance Advocate has taken on improving services for insureds under the national flood insurance program and responsiveness of the Federal Emergency Management Agency with respect to such initiatives; CommentsClose CommentsPermalink





`(ii) describe the nature of recommendations made to the Director under subsection (i); CommentsClose CommentsPermalink





`(iii) contain a summary of the most serious problems encountered by such insureds, including a description of the nature of such problems; CommentsClose CommentsPermalink





`(iv) contain an inventory of any items described in clauses (i), (ii), and (iii) for which action has been taken and the result of such action; CommentsClose CommentsPermalink





`(v) contain an inventory of any items described in clauses (i), (ii), and (iii) for which action remains to be completed and the period during which each item has remained on such inventory; CommentsClose CommentsPermalink





`(vi) contain an inventory of any items described in clauses (i), (ii), and (iii) for which no action has been taken, the period during which each item has remained on such inventory and the reasons for the inaction; CommentsClose CommentsPermalink





`(vii) identify any Flood Insurance Assistance Recommendation which was not responded to by the Director in a timely manner or was not followed, as specified under subsection (i); CommentsClose CommentsPermalink





`(viii) contain recommendations for such administrative and legislative action as may be appropriate to resolve problems encountered by such insureds; CommentsClose CommentsPermalink





`(ix) identify areas of the law or regulations relating to the national flood insurance program that impose significant compliance burdens on such insureds or the Federal Emergency Management Agency, including specific recommendations for remedying these problems; CommentsClose CommentsPermalink





`(x) identify the most litigated issues for each category of such insureds, including recommendations for mitigating such disputes; CommentsClose CommentsPermalink





`(xi) identify ways to promote the economy, efficiency, and effectiveness in the administration of the national flood insurance program; CommentsClose CommentsPermalink





`(xii) identify fraud and abuse in the national flood insurance program; and CommentsClose CommentsPermalink





`(xiii) include such other information as the National Flood Insurance Advocate may deem advisable. CommentsClose CommentsPermalink





`(B) DIRECT SUBMISSION OF REPORT- Each report required under this paragraph shall be provided directly to the committees identified in subparagraph (A) without any prior review or comment from the Director, the Secretary of Homeland Security, or any other officer or employee of the Federal Emergency Management Agency or the Department of Homeland Security, or the Office of Management and Budget. CommentsClose CommentsPermalink





`(3) INFORMATION AND ASSISTANCE FROM OTHER DATA- The maps shall include any other relevant information as may be recommended by the Technical Mapping Advisory Council reestablished by section 22(b) of the Flood Insurance Reform and Modernization Act of 2007.`(5) HURRICANES KATRINA AND RITA MAPPING PRIORITY- In updating and maintaining maps under this subsection, the Director shallAGENCIES- CommentsClose CommentsPermalink





`(A) IN GENERAL- Upon request of the National Flood Insurance Advocate for information or assistance under this section, the head of any Federal agency shall, insofar as is practicable and not in contravention of any statutory restriction or regulation of the Federal agency from which the information is requested, furnish to the National Flood Insurance Advocate, or to an authorized designee of the National Flood Insurance Advocate, such information or assistance. CommentsClose CommentsPermalink





`(B) REFUSAL TO COMPLY- Whenever information or assistance requested under this subsection is, in the judgment of the National Flood Insurance Advocate, unreasonably refused or not provided, the National Flood Insurance Advocate shall report the circumstances to the Director without delay. CommentsClose CommentsPermalink





`(f) Compliance With GAO Standards- In carrying out the responsibilities established under this section, the National Flood Insurance Advocate shall-- CommentsClose CommentsPermalink





`(1) comply with standards established by the Comptroller General of the United States for audits of Federal establishments, organizations, programs, activities, and functions; CommentsClose CommentsPermalink





`(2) establish guidelines for determining when it shall be appropriate to use non-Federal auditors; CommentsClose CommentsPermalink





`(3) take appropriate steps to assure that any work performed by non-Federal auditors complies with the standards established by the Comptroller General as described in paragraph (1); and CommentsClose CommentsPermalink





`(4) take the necessary steps to minimize the publication of proprietary and trade secrets information. CommentsClose CommentsPermalink





`(g) Personnel Actions- CommentsClose CommentsPermalink





`(1) IN GENERAL- The National Flood Insurance Advocate shall have the responsibility and authority to-- CommentsClose CommentsPermalink





`(A) give priority to the updating and maintenance of maps of coastal areas affected by Hurricane Katrina or Hurricane Rita toappoint regional flood insurance advocates in a manner that will provide guidance with respect to hurricane recovery effortsappropriate coverage based upon regional flood insurance program participation; and CommentsClose CommentsPermalink





`(B) use the process of updating and maintaining maps underhire, evaluate, and take personnel actions (including dismissal) with respect to any employee of any regional office of a flood insurance advocate described in subparagraph (A) as a model for updating and maintaining other maps.`(6) PREVENTING DELAY OF 100-YEAR MAPS- In carrying out this section and. CommentsClose CommentsPermalink





`(2) CONSULTATION- The National Flood Insurance Advocate may consult with the appropriate supervisory personnel of the Federal Emergency Management Agency in carrying out the National Flood Insurance Advocate's responsibilities under this subsection. CommentsClose CommentsPermalink





`(h) Operation of Regional Offices- CommentsClose CommentsPermalink





`(1) IN GENERAL- Each regional flood insurance advocate appointed pursuant to subsection (d)-- CommentsClose CommentsPermalink





`(A) shall report to the National Flood Insurance Advocate or delegate thereof; CommentsClose CommentsPermalink





`(B) may consult with the appropriate supervisory personnel of the Federal Emergency Management Agency regarding the daily operation of the regional office of the flood insurance advocate; CommentsClose CommentsPermalink





`(C) shall, at the initial meeting with any insured under the national flood insurance program seeking the assistance of a regional office of the flood insurance advocate, notify such insured that the flood insurance advocate offices operate independently of any other Federal Emergency Management Agency office and report directly to Congress through the National Flood Insurance Advocate; and CommentsClose CommentsPermalink





`(D) may, at the flood insurance advocate's discretion, not disclose to the Director contact with, or information provided by, such insured. CommentsClose CommentsPermalink





`(2) MAINTENANCE OF INDEPENDENT COMMUNICATIONS- Each regional office of the flood insurance advocate shall maintain a separate phone, facsimile, and other electronic communication access. CommentsClose CommentsPermalink





`(i) Flood Insurance Assistance Recommendations- CommentsClose CommentsPermalink





`(1) AUTHORITY TO ISSUE- Upon application filed by a qualified insured with the Office of the Flood Insurance Advocate (in such form, manner, and at such time as the Director shall by regulation prescribe), the National Flood Insurance Advocate may issue a Flood Insurance Assistance Recommendation, if the Advocate finds that the qualified insured is suffering a significant hardship, such as a significant delay in resolving claims where the insured is incurring significant costs as a result of such delay, or where the insured is at risk of adverse action, including the loss of property, as a result of the manner in which the flood insurance laws are being administered by the Director. CommentsClose CommentsPermalink





`(2) TERMS OF A FLOOD INSURANCE ASSISTANCE RECOMMENDATION- The terms of a Flood Insurance Assistance Recommendation may recommend to the Director that the Director, within a specified time period, cease any action, take any action as permitted by law, or refrain from taking any action, including the payment of claims, with respect to the qualified insured under any other provision of law which is specifically described by the National Flood Insurance Advocate in such recommendation. CommentsClose CommentsPermalink





`(3) DIRECTOR RESPONSE- Not later than 15 days after the receipt of any Flood Insurance Assistance Recommendation under this subsection, the Director shall take such actions as may be necessary to ensure that updating and publication of national flood insurance program rate mapsrespond in writing as to-- CommentsClose CommentsPermalink





`(A) whether such recommendation was followed; CommentsClose CommentsPermalink





`(B) why such recommendation was or was not followed; and CommentsClose CommentsPermalink





`(C) what, if any, additional actions were taken by the Director to prevent the hardship indicated in such recommendation. CommentsClose CommentsPermalink





`(4) RESPONSIBILITIES OF DIRECTOR- The Director shall establish procedures requiring a formal response consistent with the requirements of paragraph (3) to all recommendations submitted to the Director by the National Flood Insurance Advocate under this subsection. CommentsClose CommentsPermalink





`(j) Reporting of Potential Criminal Violations- In carrying out the duties and responsibilities established under this section, the National Flood Insurance Advocate shall report expeditiously to the Attorney General whenever the National Flood Insurance Advocate has reasonable grounds to believe there has been a violation of Federal criminal law. CommentsClose CommentsPermalink





`(k) Coordination- CommentsClose CommentsPermalink





`(1) WITH OTHER FEDERAL AGENCIES- In carrying out the duties and responsibilities established under this section, the National Flood Insurance Advocate-- CommentsClose CommentsPermalink





`(A) shall give particular regard to the activities of the Inspector General of the Department of Homeland Security with a view toward avoiding duplication and insuring effective coordination and cooperation; and CommentsClose CommentsPermalink





`(B) may participate, upon request of the Inspector General of the Department of Homeland Security, in any audit or investigation conducted by the Inspector General. CommentsClose CommentsPermalink





`(2) WITH STATE REGULATORS- In carrying out any investigation or audit under this section, the National Flood Insurance Advocate shall coordinate its activities and efforts with any State insurance authority that is concurrently undertaking a similar or related investigation or audit. CommentsClose CommentsPermalink





`(3) AVOIDANCE OF REDUNDANCIES IN THE RESOLUTION OF PROBLEMS- In providing any assistance to a policyholder pursuant to paragraphs (1) and (2) of subsection (b), the National Flood Insurance Advocate shall consult with the Director to include a depiction of the 500-year floodplain does not in any manner delay the completion or publication of the program rate maps for the 100-year floodplain.`(7) EDUCATION PROGRAM- The Director shall, after each update to a flood insurance program rate map, in consultation with the chief executive officer of each community affected by the update, conduct a program to educate each such community about the update to the flood insurance program rate map and the effects of the update.`(8) ANNUAL REPORT- Not later than June 30 of each year, the Director shall submit a report to the Congress describing, for the preceding 12-month period, the activities of the Director under the program under this section and the reviews and updates of flood insurance program rate maps conducted under the program. Each such annual report shall contain the most recent report of the Technical Mapping Advisory Council pursuant to section 576(c)(3) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note).`(9) USE OF MAPS FOR RATES- The Director shall not adjust the chargeable premium rate for flood insurance under this title based on an updated national flood insurance program rate map or require the purchase of flood insurance for a property not subject to such a requirement of purchase prior to the updating of such national flood insurance program rate map until an updated national flood insurance program rate map is completed for the entire district of the Corps of Engineers affected by the map, as determined by the district engineer for such district.`(10) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Directoreliminate, avoid, or reduce any redundancies in actions that may arise as a result of the actions of the National Flood Insurance Advocate and the claims appeals process described under section 62.20 of title 44, Code of Federal Regulations. CommentsClose CommentsPermalink





`(l) Authority of the Director To Levy Penalties- The Director and the Advocate shall establish procedures to take appropriate action against an insurance company, including monetary penalties and removal or suspension from the program, when a company refuses to cooperate with an investigation or audit under this section or where a finding has been made of improper conduct. CommentsClose CommentsPermalink





`(m) Definitions- For purposes of this subsection: CommentsClose CommentsPermalink





`(1) ASSOCIATED ENTITY- The term `associated entity' means any person, corporation, or other legal entity that contracts with the Director or an insurance company to carry out this subsection $400,000,000 forprovide adjustment services, benefits calculation services, claims services, processing services, or record keeping services in connection with standard flood insurance policies made available under the national flood insurance program. CommentsClose CommentsPermalink





`(2) INSURANCE COMPANY- The term `insurance company' refers to any property and casualty insurance company that is authorized by the Director to participate in the Write Your Own program under the national flood insurance program. CommentsClose CommentsPermalink





`(3) NATIONAL FLOOD INSURANCE ADVOCATE- The term `National Flood Insurance Advocate' includes any designee of the National Flood Insurance Advocate. CommentsClose CommentsPermalink





`(4) QUALIFIED INSURED- The term `qualified insured' means an insured under coverage provided under the national flood insurance program under this title. CommentsClose CommentsPermalink





`(n) Funding- Pursuant to section 1310(a)(8), the Director may use amounts from the National Flood Insurance Fund to fund the activities of the Office of the Flood Advocate in each of fiscal years 20089 through 2013.'.(b) Reestablishment of Technical Mapping Advisory Council for Ongoing Mapping Program-(1) REESTABLISHMENT- There is reestablished the Technical Mapping Advisory Council, in accordance with this subsection and section 576 of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note).(2) MEMBERSHIP- Paragraph (1) of section 576(b) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note) is amended--(A) in the matter preceding subparagraph (A), by striking `10' and inserting `15';(B) by redesignating subparagraphs (E), (F), (G), (H), (I), and (J) as subparagraphs (F), (G), (H), (K), (O), and (P), respectively;(C) by inserting after subparagraph (D) the following new subparagraph:`(E) a representative of the Corps of Engineers of the United States Army;';(D) by inserting after subparagraph (H) (as so redesignated by subparagraph (B) of this paragraph) the following new subparagraphs:`(I) a representative of local or regional flood and stormwater agencies;`(J) a representative of State geographic information coordinators;'; and(E) by inserting after subparagraph (K) (as4, except that the amount so redesignated by subparagraph (B) of this paragraph) the following new subparagraphs:`(L) a representative of flood insurance servicing companies;`(M) a real estate professional;`(N) a member of a professional mapping association or organization;'.(3) TERMS OF MEMBERS AND APPOINTMENT- Section 576(b) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note) is amended by adding at the end the following new paragraph:`(3) TERMS OF MEMBERS-`(A) IN GENERAL- Each member of the Council pursuant to any of subparagraphs (B)used in each such fiscal year may not exceed $5,000,000 and shall remain available until expended. Notwithstanding any other provision of this title, amounts made available pursuant to this subsection shall not be subject to offsetting collections through (N) of paragraph (1) shall be appointed for a term of 5 years, except as provided in subparagraphs (B) and (C).`(B) TERMS OF INITIAL APPOINTEES- As designated by the Director (or the designee of the Director) at the time of appointment, of the members of the Council first appointed pursuant to subparagraph (D)--`(i) 4 shall be appointed for a term of 1 year;`(ii) 4 shall be appointed for a term of 3 years; and`(iii) 5 shall be appointed for a term of 5 years.`(C) VACANCIES- Any member of the Council appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that member's term until a successor has taken office. A vacancy in the Council shall be filled in the manner in which the original appointment was made.`(D) INITIAL APPOINTMENT- The Director, or the Director's designee, shall take action as soon as possible after the date ofpremium rates for flood insurance coverage under this title.'. CommentsClose CommentsPermalink