S 1940 RSCommentsClose CommentsPermalink

Calendar No. 250CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 1940CommentsClose CommentsPermalink

[Report No. 112-98]CommentsClose CommentsPermalink

To amend the National Flood Insurance Act of 1968, to restore the financial solvency of the flood insurance fund, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

December 5, 2011CommentsClose CommentsPermalink

Mr. JOHNSON of South Dakota, from the Committee on Banking, Housing, and Urban Affairs, reported the following original bill; which was read twice and placed on the calendarCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the National Flood Insurance Act of 1968, to restore the financial solvency of the flood insurance fund, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. TABLE OF CONTENTS.

The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Table of contents.CommentsClose CommentsPermalink

TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

Sec. 101. Short title.CommentsClose CommentsPermalink





Sec. 102. Findings.CommentsClose CommentsPermalink





Sec. 103. Definitions.CommentsClose CommentsPermalink





Sec. 104. Extension of National Flood Insurance Program.CommentsClose CommentsPermalink





Sec. 105. 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. 111. Escrow of flood insurance payments.CommentsClose CommentsPermalink





Sec. 112. Minimum deductibles for claims under the National Flood Insurance Program.CommentsClose CommentsPermalink





Sec. 113. Considerations in determining chargeable premium rates.CommentsClose CommentsPermalink





Sec. 114. Reserve fund.CommentsClose CommentsPermalink





Sec. 115. Repayment plan for borrowing authority.CommentsClose CommentsPermalink





Sec. 116. Payment of condominium claims.CommentsClose CommentsPermalink





Sec. 117. Technical mapping advisory council.CommentsClose CommentsPermalink





Sec. 118. National flood mapping program.CommentsClose CommentsPermalink





Sec. 119. Scope of appeals.CommentsClose CommentsPermalink





Sec. 120. Scientific Resolution Panel.CommentsClose CommentsPermalink





Sec. 121. Removal of limitation on State contributions for updating flood maps.CommentsClose CommentsPermalink





Sec. 122. Coordination.CommentsClose CommentsPermalink





Sec. 123. Interagency coordination study.CommentsClose CommentsPermalink





Sec. 124. Nonmandatory participation.CommentsClose CommentsPermalink





Sec. 125. Notice of flood insurance availability under RESPA.CommentsClose CommentsPermalink





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





Sec. 127. Additional authority of FEMA to collect information on claims payments.CommentsClose CommentsPermalink





Sec. 128. Oversight and expense reimbursements of insurance companies.CommentsClose CommentsPermalink





Sec. 129. Mitigation.CommentsClose CommentsPermalink





Sec. 130. Flood Protection Structure Accreditation Task Force.CommentsClose CommentsPermalink





Sec. 131. Flood in progress determinations.CommentsClose CommentsPermalink





Sec. 132. Clarification of residential and commercial coverage limits.CommentsClose CommentsPermalink





Sec. 133. Local data requirement.CommentsClose CommentsPermalink





Sec. 134. Eligibility for flood insurance for persons residing in communities that have made adequate progress on the construction, reconstruction, or improvement of a flood protection system.CommentsClose CommentsPermalink





Sec. 135. Studies and reports.CommentsClose CommentsPermalink





Sec. 136. Reinsurance.CommentsClose CommentsPermalink





Sec. 137. GAO study on business interruption and additional living expenses coverages.CommentsClose CommentsPermalink





Sec. 138. Policy disclosures.CommentsClose CommentsPermalink





Sec. 139. Report on inclusion of building codes in floodplain management criteria.CommentsClose CommentsPermalink





Sec. 140. Study of participation and affordability for certain policyholders.CommentsClose CommentsPermalink





Sec. 141. Study and report concerning the participation of Indian tribes and members of Indian tribes in the National Flood Insurance Program.CommentsClose CommentsPermalink





Sec. 142. Technical corrections.CommentsClose CommentsPermalink

TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND INSURANCE

Sec. 201. Short title.CommentsClose CommentsPermalink





Sec. 202. Findings.CommentsClose CommentsPermalink





Sec. 203. Establishment.CommentsClose CommentsPermalink





Sec. 204. Membership.CommentsClose CommentsPermalink





Sec. 205. Duties of the commission.CommentsClose CommentsPermalink





Sec. 206. Report.CommentsClose CommentsPermalink





Sec. 207. Powers of the commission.CommentsClose CommentsPermalink





Sec. 208. Commission personnel matters.CommentsClose CommentsPermalink





Sec. 209. Termination.CommentsClose CommentsPermalink





Sec. 210. Authorization of appropriations.CommentsClose CommentsPermalink

TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATIONCommentsClose CommentsPermalink

SEC. 101. SHORT TITLE.

This title may be cited as the ‘Flood Insurance Reform and Modernization Act of 2011’.CommentsClose CommentsPermalink

SEC. 102. FINDINGS.

Congress finds that--CommentsClose CommentsPermalink





(1) the flood insurance claims resulting from the hurricane season of 2005 exceeded 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 $19,000,000,000 from the Treasury;CommentsClose CommentsPermalink





(3) the interest alone on this debt has been as high as $800,000,000 annually, and that the Federal Emergency Management Agency has indicated that it will be unable to pay back this debt;CommentsClose CommentsPermalink





(4) the flood insurance program must be strengthened to ensure it can pay future claims;CommentsClose CommentsPermalink





(5) while flood insurance is mandatory in the 100-year floodplain, substantial flooding occurs outside of existing special flood hazard areas;CommentsClose CommentsPermalink





(6) events throughout the country involving areas behind flood control structures, known as ‘residual risk’ areas, have produced catastrophic losses;CommentsClose CommentsPermalink





(7) although such flood control 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; andCommentsClose 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

SEC. 103. DEFINITIONS.

(a) In General- In this title, the following definitions shall apply:CommentsClose CommentsPermalink





(1) 100-year FLOODPLAIN- The term ‘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





(2) 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





(3) ADMINISTRATOR- The term ‘Administrator’ means the Administrator of the Federal Emergency Management Agency.CommentsClose CommentsPermalink





(4) 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. 4011 et seq.).CommentsClose CommentsPermalink





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





(b) Common 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. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

(a) Financing- Section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking ‘2011’ and inserting ‘2016’CommentsClose CommentsPermalink





(b) Program Expiration- Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 4026), is amended by striking ‘2011’ and inserting ‘2016’.CommentsClose CommentsPermalink

SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 4012) is amended--CommentsClose CommentsPermalink





(1) in subsection (b)(2)(A), by inserting ‘not described in subsection (a) or (d)’ after ‘properties’; andCommentsClose CommentsPermalink





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





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





‘(1) IN GENERAL- The Administrator 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 Administrator 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) RULE 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

SEC. 106. REFORM OF PREMIUM RATE STRUCTURE.

(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)(2), by striking ‘; and’ and inserting the following: ‘, except that the Administrator shall not estimate rates under this paragraph for--CommentsClose CommentsPermalink





‘(A) any property which is not the primary residence of an individual;CommentsClose CommentsPermalink





‘(B) any severe repetitive loss property;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; orCommentsClose CommentsPermalink





‘(E) any property which on or after the date of the enactment of the Flood Insurance Reform and Modernization Act of 2011 has experienced or sustained--CommentsClose CommentsPermalink





‘(i) substantial damage exceeding 50 percent of the fair market value of such property; orCommentsClose CommentsPermalink





‘(ii) substantial improvement exceeding 30 percent of the fair market value of such property; and’; andCommentsClose CommentsPermalink





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





‘(g) No Extension of Subsidy to New Policies or Lapsed Policies- The Administrator 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 the enactment of the Flood Insurance Reform and Modernization Act of 2011;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; orCommentsClose CommentsPermalink





‘(3) any prospective insured who refuses 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); orCommentsClose CommentsPermalink





‘(B) in connection with--CommentsClose CommentsPermalink





‘(i) a repetitive loss property; orCommentsClose CommentsPermalink





‘(ii) a severe repetitive loss property.CommentsClose CommentsPermalink





‘(h) Definition- In this section, the term ‘severe repetitive loss property’ has the following meaning:CommentsClose CommentsPermalink





‘(1) SINGLE-FAMILY PROPERTIES- In the case of a property consisting of 1 to 4 residences, such term means a property that--CommentsClose CommentsPermalink





‘(A) is covered under a contract for flood insurance made available under this title; andCommentsClose CommentsPermalink





‘(B) has incurred flood-related damage--CommentsClose CommentsPermalink





‘(i) for which 4 or more separate claims payments have been made under flood insurance coverage under this chapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; orCommentsClose CommentsPermalink





‘(ii) for which at least 2 separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the property.CommentsClose CommentsPermalink





‘(2) MULTIFAMILY PROPERTIES- In the case of a property consisting of more than 4 units, such term shall have such meaning as the Director shall by regulation provide.’.CommentsClose CommentsPermalink





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





(b) Estimates of Premium Rates- Section 1307(a)(1)(B) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) is amended--CommentsClose CommentsPermalink





(1) in clause (ii), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in clause (iii), by adding ‘and’ at the end; andCommentsClose CommentsPermalink





(3) by inserting after clause (iii) the following:CommentsClose CommentsPermalink





‘(iv) all costs, as prescribed by principles and standards of practice in ratemaking adopted by the American Academy of Actuaries and the Casualty Actuarial Society, including--CommentsClose CommentsPermalink





‘(I) an estimate of the expected value of future costs,CommentsClose CommentsPermalink





‘(II) all costs associated with the transfer of risk, andCommentsClose CommentsPermalink





‘(III) the costs associated with an individual risk transfer with respect to risk classes, as defined by the Administrator,’.CommentsClose CommentsPermalink





(c) Increase in Annual Limitation on Premium Increases- Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(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’;CommentsClose CommentsPermalink





(2) by striking ‘10 percent’ and inserting ‘15 percent’; andCommentsClose CommentsPermalink





(3) by striking the period at the end and inserting the following: ‘; andCommentsClose CommentsPermalink





‘(2) described in subparagraphs (A) through (E) of section 1307(a)(2) 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





(d) Premium Payment Flexibility for New and Existing Policyholders- 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) Frequency of Premium Collection- With respect to any chargeable premium rate prescribed under this section, the Administrator shall provide policyholders that are not required to escrow their premiums and fees for flood insurance as set forth under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) with the option of paying their premiums either annually or in more frequent installments.’.CommentsClose CommentsPermalink

SEC. 107. MANDATORY COVERAGE AREAS.

(a) Special Flood Hazard Areas- Not later than 90 days after the date of the enactment of this Act, the Administrator shall issue 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) shall require the expansion of areas of special flood hazards to include areas of residual risk that are located behind levees or near dams or other flood control structures, as determined by the Administrator.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) shall have no force or effect until the mapping of all residual risk areas in the United States that the Administrator determines essential in order to administer the National Flood Insurance Program, as required under section 118, are in the maintenance phase.CommentsClose CommentsPermalink





(3) ACCURATE PRICING- In carrying out the mandatory purchase requirement under paragraph (1), the Administrator 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 flood control structure in such area, regardless of the certification status of the flood control structure.CommentsClose CommentsPermalink





(d) Decertification- Upon decertification of any levee, dam, or flood control structure under the jurisdiction of the Army Corps of Engineers, the Corps shall immediately provide notice to the Administrator of the National Flood Insurance Program.CommentsClose CommentsPermalink

SEC. 108. PREMIUM ADJUSTMENT.

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015), as amended by section 106(c), is further amended by adding at the end the following:CommentsClose CommentsPermalink





‘(h) Premium Adjustment To Reflect Current Risk of Flood- Notwithstanding subsection (f), upon the effective date of any revised or updated flood insurance rate map under this Act, the Flood Disaster Protection Act of 1973, or the Flood Insurance Reform and Modernization Act of 2011, 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 effective date of such an update that is a result of such updating shall be phased in over a 4-year period, at the rate of 40 percent for the first year following such effective date and 20 percent for each of the second, third, and fourth years following such effective date. In the case of any area that was not previously designated as an area having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an area, the chargeable risk premium rate for flood insurance under this title that is purchased on or after the date of enactment of this subsection with respect to any property that is located within such area shall be phased in over a 4-year period, at the rate of 40 percent for the first year following the effective date of such issuance, revision, updating, or change and 20 percent for each of the second, third, and fourth years following such effective date.’.CommentsClose CommentsPermalink

SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS.

Section 1305(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4012(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’; andCommentsClose CommentsPermalink





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





‘(3) given satisfactory assurance that by the date that is 6 months after the date of enactment of the Flood Insurance Reform and Modernization Act of 2011, lending institutions chartered by a State, and not insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, 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)(5)) is amended--CommentsClose CommentsPermalink





(1) in the first sentence, by striking ‘$350’ and inserting ‘$2,000’; andCommentsClose CommentsPermalink





(2) by striking the second sentence.CommentsClose CommentsPermalink

SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS.

(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 regulation (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 Administrator 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 institutions 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 Administrator, 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.’; andCommentsClose 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 shall provide notice to the policyholder that flood 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 the enactment of this Act.CommentsClose CommentsPermalink

SEC. 112. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL FLOOD INSURANCE PROGRAM.

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 Administrator is’; andCommentsClose CommentsPermalink





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





‘(b) Minimum Annual Deductible-CommentsClose CommentsPermalink





‘(1) 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 Administrator 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; andCommentsClose 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) POST-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 Administrator 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) $1,000, 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; andCommentsClose CommentsPermalink





‘(B) $1,250, 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

SEC. 113. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM RATES.

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015), as amended by this Act, 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’; andCommentsClose CommentsPermalink





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





‘(5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.’; andCommentsClose CommentsPermalink





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





‘(i) Rule of Construction- For purposes of this section, the calculation of an ‘average historical loss year’--CommentsClose CommentsPermalink





‘(1) includes catastrophic loss years; andCommentsClose CommentsPermalink





‘(2) shall be computed in accordance with generally accepted actuarial principles.’.CommentsClose CommentsPermalink

SEC. 114. RESERVE FUND.

Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1310 (42 U.S.C. 4017) the following:CommentsClose CommentsPermalink

‘SEC. 1310A. RESERVE FUND.

‘(a) Establishment of Reserve Fund- In carrying out the flood insurance program authorized by this chapter, the Administrator 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 Administrator; andCommentsClose 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 potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; orCommentsClose CommentsPermalink





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





‘(c) Maintenance of Reserve Ratio-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Administrator 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); andCommentsClose 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 Administrator 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; andCommentsClose CommentsPermalink





‘(D) any other factor that the Administrator determines appropriate.CommentsClose CommentsPermalink





‘(3) LIMITATIONS- In exercising the authority granted under paragraph (1), the Administrator 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 2012 and not ending until the fiscal year in which the ratio required under subsection (b) is achieved, in each such fiscal year the Administrator 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 Administrator 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 Administrator 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 Administrator determines that the reserve ratio required under subsection (b) cannot be achieved, the Administrator shall submit a report to Congress that--CommentsClose CommentsPermalink





‘(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not being achieved;CommentsClose CommentsPermalink





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





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

SEC. 115. REPAYMENT PLAN FOR BORROWING AUTHORITY.

Section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(c) Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to--CommentsClose CommentsPermalink





‘(1) the Secretary of the Treasury;CommentsClose CommentsPermalink





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





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





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





‘(1) the Secretary of the Treasury;CommentsClose CommentsPermalink





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





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

SEC. 116. PAYMENT OF CONDOMINIUM CLAIMS.

Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 112, is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(c) Payment of Claims to Condominium Owners- The Administrator 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.’.CommentsClose CommentsPermalink

SEC. 117. TECHNICAL MAPPING ADVISORY COUNCIL.

(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 Administrator, or the designee thereof, and 17 additional members to be appointed by the Administrator or the designee of the Administrator, 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 Administrator and has demonstrated the capability to produce flood insurance rate maps;CommentsClose CommentsPermalink





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





(O) a member of a recognized floodplain management association or organization;CommentsClose CommentsPermalink





(P) a member of a recognized risk management association or organization; andCommentsClose CommentsPermalink





(Q) a State mitigation officer.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 Administrator 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; andCommentsClose 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 Administrator mapping standards and guidelines for--CommentsClose CommentsPermalink





(A) flood insurance rate maps; andCommentsClose CommentsPermalink





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





(3) recommend to the Administrator 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 Administrator 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; andCommentsClose CommentsPermalink





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





(6) submit an annual report to the Administrator 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 118; andCommentsClose CommentsPermalink





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





(d) Future Conditions Risk Assessment and Modeling Report-CommentsClose CommentsPermalink





(1) IN GENERAL- The Council shall consult 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; andCommentsClose 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; andCommentsClose CommentsPermalink





(II) future development on flood risk; andCommentsClose CommentsPermalink





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





(2) RESPONSIBILITY OF THE ADMINISTRATOR- The Administrator, as part of the ongoing program to review and update National Flood Insurance Program rate maps under section 118, 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 Office of Management and Budget 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 Administrator, or a person designated by the Administrator, 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 Administrator 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 nonreimbursable 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 Administrator, 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;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; andCommentsClose CommentsPermalink





(3) any recommendations made by the Council that have been deferred or not acted upon, together with an explanatory statement.CommentsClose CommentsPermalink

SEC. 118. NATIONAL FLOOD MAPPING PROGRAM.

(a) Reviewing, Updating, and Maintaining Maps- The Administrator, in coordination with the Technical Mapping Advisory Council established under section 117, shall establish an ongoing program under which the Administrator 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 Administrator shall--CommentsClose CommentsPermalink





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





(i) all populated areas and areas of possible population growth located within the 100-year floodplain;CommentsClose CommentsPermalink





(ii) all populated areas and areas of possible population growth located within the 500-year floodplain;CommentsClose CommentsPermalink





(iii) areas of residual risk, including areas that are protected by levees, dams, and other flood control structures;CommentsClose CommentsPermalink





(iv) areas that could be inundated as a result of the failure of a levee, dam, or other flood control structure; andCommentsClose CommentsPermalink





(v) the level of protection provided by flood control 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; andCommentsClose 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 (42 U.S.C. 4011 et seq.), the most accurate topography and elevation data available.CommentsClose CommentsPermalink





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





(A) 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 guidelines and specifications of the Federal Emergency Management Agency; andCommentsClose CommentsPermalink





(B) develop National Flood Insurance Program flood data on a watershed basis--CommentsClose CommentsPermalink





(i) to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; andCommentsClose CommentsPermalink





(ii) to eliminate, to the maximum extent possible, discrepancies in base flood elevations between adjacent political subdivisions.CommentsClose CommentsPermalink





(3) OTHER INCLUSIONS- In updating maps under this section, the Administrator shall include--CommentsClose CommentsPermalink





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





(i) an applicable inundation map of the Corps of Engineers; andCommentsClose 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 Administrator;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; andCommentsClose 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 Administrator shall--CommentsClose CommentsPermalink





(1) establish standards to--CommentsClose CommentsPermalink





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





(i) flood risk determinations; andCommentsClose CommentsPermalink





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





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





(C) aligned with official data defined by the National Geodetic Survey.CommentsClose CommentsPermalink





(d) Communication and Outreach-CommentsClose CommentsPermalink





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





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





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





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





(A) notifying property owners when their properties become included in, or when they are excluded from, an area covered by the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a);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. 4011 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 to such owners to appeal proposed changes in flood elevations through their community; andCommentsClose 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 Administrator to carry out this section $400,000,000 for each of fiscal years 2012 through 2016.CommentsClose CommentsPermalink

SEC. 119. SCOPE OF APPEALS.

Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104) is amended--CommentsClose CommentsPermalink





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





(A) in the heading, by inserting ‘and Designations of Special Flood Hazard Areas’ after ‘Elevation Determinations’;CommentsClose CommentsPermalink





(B) by inserting ‘and designating special flood hazard areas’ after ‘flood elevations’; andCommentsClose CommentsPermalink





(C) by striking ‘such determinations’ and inserting ‘such determinations and designations’; andCommentsClose CommentsPermalink





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





(A) in the heading, by inserting ‘and Designations of Special Flood Hazard Areas’ after ‘Elevation Determinations’;CommentsClose CommentsPermalink





(B) in the first sentence, by inserting ‘and designation of special flood hazard areas’ after ‘flood elevation determinations’; andCommentsClose CommentsPermalink





(C) by amending the third sentence to read as follows: ‘The sole grounds for appeal shall be the possession of knowledge or information indicating that (1) the elevations being proposed by the Administrator with respect to an identified area having special flood hazards are scientifically or technically incorrect, or (2) the designation of an identified special flood hazard area is scientifically or technically incorrect.’CommentsClose CommentsPermalink

SEC. 120. SCIENTIFIC RESOLUTION PANEL.

(a) Establishment- The National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1363 (42 U.S.C. 4104) the following:CommentsClose CommentsPermalink

‘SEC. 1363A. SCIENTIFIC RESOLUTION PANEL.

‘(a) Availability-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Pursuant to the authority provided under section 1363(e), the Administrator shall make available an independent review panel, to be known as the Scientific Resolution Panel, to any community--CommentsClose CommentsPermalink





‘(A) that has--CommentsClose CommentsPermalink





‘(i) filed a timely map appeal in accordance with section 1363;CommentsClose CommentsPermalink





‘(ii) completed 60 days of consultation with the Federal Emergency Management Agency on the appeal; andCommentsClose CommentsPermalink





‘(iii) not allowed more than 120 days, or such longer period as may be provided by the Administrator by waiver, to pass since the end of the appeal period; orCommentsClose CommentsPermalink





‘(B) that has received an unsatisfactory ruling under the map revision process established pursuant to section 1360(f).CommentsClose CommentsPermalink





‘(2) APPEALS BY OWNERS AND LESSEES- If a community and an owner or lessee of real property within the community appeal a proposed determination of a flood elevation under section 1363(b), upon the request of the community--CommentsClose CommentsPermalink





‘(A) the owner or lessee shall submit scientific and technical data relating to the appeals to the Scientific Resolution Panel; andCommentsClose CommentsPermalink





‘(B) the Scientific Resolution Panel shall make a determination with respect to the appeals in accordance with subsection (c).CommentsClose CommentsPermalink





‘(3) DEFINITION- For purposes of paragraph (1)(B), an ‘unsatisfactory ruling’ means that a community--CommentsClose CommentsPermalink





‘(A) received a revised Flood Insurance Rate Map from the Federal Emergency Management Agency, via a Letter of Final Determination, after September 30, 2008 and prior to the date of enactment of this section;CommentsClose CommentsPermalink





‘(B) has subsequently applied for a Letter of Map Revision or Physical Map Revision with the Federal Emergency Management Agency; andCommentsClose CommentsPermalink





‘(C) has received an unfavorable ruling on their request for a map revision.CommentsClose CommentsPermalink





‘(b) Membership- The Scientific Resolution Panel made available under subsection (a) shall consist of 5 members with expertise that relate to the creation and study of flood hazard maps and flood insurance. The Scientific Resolution Panel may include representatives from Federal agencies not involved in the mapping study in question and from other impartial experts. Employees of the Federal Emergency Management Agency may not serve on the Scientific Resolution Panel.CommentsClose CommentsPermalink





‘(c) Determination-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Following deliberations, and not later than 90 days after its formation, the Scientific Resolution Panel shall issue a determination of resolution of the dispute. Such determination shall set forth recommendations for the base flood elevation determination or the determination of an area having special flood hazards that shall be reflected in the Flood Insurance Rate Maps.CommentsClose CommentsPermalink





‘(2) BASIS- The determination of the Scientific Resolution Panel shall be based on--CommentsClose CommentsPermalink





‘(A) data previously provided to the Administrator by the community, and, in the case of a dispute submitted under subsection (a)(2), an owner or lessee of real property in the community; andCommentsClose CommentsPermalink





‘(B) data provided by the Administrator.CommentsClose CommentsPermalink





‘(3) NO ALTERNATIVE DETERMINATIONS PERMISSIBLE- The Scientific Resolution Panel--CommentsClose CommentsPermalink





‘(A) shall provide a determination of resolution of a dispute that--CommentsClose CommentsPermalink





‘(i) is either in favor of the Administrator or in favor of the community on each distinct element of the dispute; orCommentsClose CommentsPermalink





‘(ii) in the case of a dispute submitted under subsection (a)(2), is in favor of the Administrator, in favor of the community, or in favor of the owner or lessee of real property in the community on each distinct element of the dispute; andCommentsClose CommentsPermalink





‘(B) may not offer as a resolution any other alternative determination.CommentsClose CommentsPermalink





‘(4) EFFECT OF DETERMINATION-CommentsClose CommentsPermalink





‘(A) BINDING- The recommendations of the Scientific Resolution Panel shall be binding on all appellants and not subject to further judicial review unless the Administrator determines that implementing the determination of the panel would--CommentsClose CommentsPermalink





‘(i) pose a significant threat due to failure to identify a substantial risk of special flood hazards; orCommentsClose CommentsPermalink





‘(ii) violate applicable law.CommentsClose CommentsPermalink





‘(B) WRITTEN JUSTIFICATION NOT TO ENFORCE- If the Administrator elects not to implement the determination of the Scientific Resolution Panel pursuant to subparagraph (A), then not later than 60 days after the issuance of the determination, the Administrator shall issue a written justification explaining such election.CommentsClose CommentsPermalink





‘(C) APPEAL OF DETERMINATION NOT TO ENFORCE- If the Administrator elects not to implement the determination of the Scientific Resolution Panel pursuant to subparagraph (A), the community may appeal the determination of the Administrator as provided for under section 1363(g).CommentsClose CommentsPermalink





‘(d) Maps Used for Insurance and Mandatory Purchase Requirements- With respect to any community that has a dispute that is being considered by the Scientific Resolution Panel formed pursuant to this subsection, the Federal Emergency Management Agency shall ensure that for each such community that--CommentsClose CommentsPermalink





‘(1) the Flood Insurance Rate Map described in the most recently issued Letter of Final Determination shall be in force and effect with respect to such community; andCommentsClose CommentsPermalink





‘(2) flood insurance shall continue to be made available to the property owners and residents of the participating community.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) ADMINISTRATIVE REVIEW- Section 1363(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended by striking ‘an independent scientific body or appropriate Federal agency for advice’ and inserting ‘the Scientific Resolution Panel provided for in section 1363A’.CommentsClose CommentsPermalink





(2) JUDICIAL REVIEW- The first sentence of section 1363(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g)) is amended by striking ‘Any appellant’ and inserting ‘Except as provided in section 1363A, any appellant’.CommentsClose CommentsPermalink

SEC. 121. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR UPDATING FLOOD MAPS.

Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42 U.S.C. 4101(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

SEC. 122. COORDINATION.

(a) Interagency Budget Crosscut and Coordination Report-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Homeland Security, the Administrator, 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 Army 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 an interagency budget crosscut and coordination report, certified by the Secretary or head of each such agency, that--CommentsClose CommentsPermalink





(A) contains an interagency budget crosscut report that displays relevant sections of the budget proposed for each of the Federal agencies working on flood risk determination data and digital elevation models, including any planned interagency or intra-agency transfers; andCommentsClose CommentsPermalink





(B) describes how the efforts aligned with such sections complement one another.CommentsClose CommentsPermalink





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





(1) participate, pursuant to section 216 of the E-Government Act of 2002 (44 U.S.C. 3501 note), 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 a liaison to the Federal Geographic Data Committee pursuant to the Office of Management and Budget Circular A-16 and Executive Order 12906 (43 U.S.C. 1457 note; relating to the National Spatial Data Infrastructure) 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; andCommentsClose CommentsPermalink





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

SEC. 123. INTERAGENCY COORDINATION STUDY.

(a) In General- The Administrator shall enter into a contract with the National Academy of Public Administration to conduct a study on how the Federal Emergency Management Agency--CommentsClose CommentsPermalink





(1) should improve interagency and intergovernmental coordination on flood mapping, including a funding strategy to leverage and coordinate budgets and expenditures; andCommentsClose 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) Timing- Not later than 180 days after the date of the enactment of this title, the National Academy of Public Administration shall report the findings of the study required under subsection (a) to--CommentsClose CommentsPermalink





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





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





(3) the Committee on Appropriations of the Senate; andCommentsClose CommentsPermalink





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

SEC. 124. NONMANDATORY PARTICIPATION.

(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 and 4106).CommentsClose CommentsPermalink





(b) Notice-CommentsClose CommentsPermalink





(1) BY ADMINISTRATOR- In carrying out the National Flood Insurance Program, the Administrator shall provide notice to any community located in an area within 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 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. 125. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)), as amended by section 1450 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203; 124 Stat. 2174), is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(14) 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

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 inserting after section 1313 (42 U.S.C. 4020) the following:CommentsClose CommentsPermalink

‘SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.

‘(a) Requirement To Participate- In the case of the occurrence of a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122), that may have resulted in flood damage covered under the flood insurance program established under this chapter and other personal lines residential property insurance coverage offered by a State regulated insurer, upon a 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 Administrator in a program sponsored by such State for nonbinding mediation of insurance claims resulting from a major disaster, the Administrator 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 disaster.CommentsClose CommentsPermalink





‘(b) Extent of Participation- In satisfying the requirements of subsection (a), the Administrator shall require that each representative of the Administrator--CommentsClose CommentsPermalink





‘(1) be certified for purposes of the flood insurance program to settle claims against such program resulting from such disaster in amounts up to the limits of policies under such program;CommentsClose CommentsPermalink





‘(2) attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and places as may be arranged by the State;CommentsClose CommentsPermalink





‘(3) participate in good faith negotiations toward the settlement of such claims with policyholders of coverage made available under the flood insurance program; andCommentsClose CommentsPermalink





‘(4) finalize the settlement of such claims on behalf of the flood insurance program with such policyholders.CommentsClose CommentsPermalink





‘(c) Coordination- Representatives of the Administrator shall at all times coordinate their activities with insurance officials of the State and representatives of insurers for the purposes of consolidating and expediting settlement of claims under the national flood insurance program resulting from such disaster.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; andCommentsClose 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; orCommentsClose 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 Documents Privileged- As a condition of participation, all statements made and documents produced pursuant to State-sponsored mediation involving representatives of the Administrator shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation.CommentsClose CommentsPermalink





‘(f) Liability, Rights, or Obligations Not Affected- Participation in State-sponsored mediation, as described in this section does not--CommentsClose CommentsPermalink





‘(1) affect or expand the liability of any party in contract or in tort; orCommentsClose CommentsPermalink





‘(2) affect the rights or obligations of the parties, as established--CommentsClose CommentsPermalink





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





‘(B) under this Act; andCommentsClose CommentsPermalink





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





‘(g) Exclusive Federal Jurisdiction- Participation in State-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of United States courts, as set forth in this Act.CommentsClose CommentsPermalink





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





‘(i) Exception- In the case of the occurrence of a major 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; andCommentsClose CommentsPermalink





‘(2) the provisions of the standard flood insurance policy under the national flood insurance program and the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) and the regulations issued pursuant to such section shall apply exclusively.CommentsClose CommentsPermalink





‘(j) Representatives of the Administrator- For purposes of this section, the term ‘representatives of the Administrator’ means representatives of the national flood insurance program who participate in the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).’.CommentsClose CommentsPermalink

SEC. 127. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION ON CLAIMS PAYMENTS.

(a) In General- The Administrator shall collect, from property and casualty insurance companies that are authorized by the Administrator 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) 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; andCommentsClose 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

SEC. 128. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

(a) Submission of Biennial Reports-CommentsClose CommentsPermalink





(1) TO THE ADMINISTRATOR- Not later than 20 days after the date of the enactment of this Act, each property and casualty insurance company that is authorized by the Administrator to participate in the Write Your Own program shall submit to the Administrator any biennial report required by the Federal Emergency Management Agency to be prepared in the prior 5 years by such company.CommentsClose CommentsPermalink





(2) TO GAO- Not later than 10 days after the submission of the biennial reports under paragraph (1), the Administrator shall submit all such reports to the Comptroller General of the United States.CommentsClose CommentsPermalink





(3) NOTICE TO CONGRESS OF FAILURE TO COMPLY- The Administrator shall notify and 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 any property and casualty insurance company participating in the Write Your Own program that failed to submit its biennial reports as required under paragraph (1).CommentsClose CommentsPermalink





(4) FAILURE TO COMPLY- A property and casualty insurance company that is authorized by the Administrator to participate in the Write Your Own program which fails to comply with the reporting requirement under this subsection or the requirement under section 62.23(j)(1) of title 44, Code of Federal Regulations (relating to biennial audit of the flood insurance financial statements) shall be subject to a civil penalty in an amount equal to $1,000 per day for each day that the company remains in noncompliance with either such requirement.CommentsClose CommentsPermalink





(b) Methodology To Determine Reimbursed Expenses- Not later than 180 days after the date of the enactment of this Act, the Administrator shall develop a methodology for determining the appropriate amounts that participating property and casualty insurance companies should be reimbursed for selling, writing, and servicing flood insurance policies and adjusting flood insurance claims on behalf of the National Flood Insurance Program. The methodology shall be developed using actual expense data for the flood insurance line and can be derived from--CommentsClose CommentsPermalink





(1) flood insurance expense data produced by participating property and casualty insurance companies;CommentsClose CommentsPermalink





(2) flood insurance expense data collected by the National Association of Insurance Commissioners; orCommentsClose CommentsPermalink





(3) a combination of the methodologies described in paragraphs (1) and (2).CommentsClose CommentsPermalink





(c) Submission of Expense Reports- To develop the methodology established under subsection (b), the Administrator may require each property and casualty insurance company participating in the Write Your Own program to submit a report to the Administrator, in a format determined by the Administrator and within 60 days of the request, that details the expense levels of each such company for selling, writing, and servicing standard flood insurance policies and adjusting and servicing claims.CommentsClose CommentsPermalink





(d) FEMA Rulemaking on Reimbursement of Expenses Under the WYO Program- Not later than 12 months after the date of the enactment of this Act, the Administrator shall conduct a rulemaking proceeding to formulate revised expense reimbursements to property and casualty insurance companies participating in the Write Your Own program for their expenses (including their operating and administrative expenses for adjustment of claims) in selling, writing, and servicing standard flood insurance policies, including how such companies shall be reimbursed in both catastrophic and noncatastrophic years. Such reimbursements shall be structured to ensure reimbursements track the actual expenses, including standard business costs and operating expenses, of such companies as close as practicably possible.CommentsClose CommentsPermalink





(e) Report of the Administrator- Not later than 60 days after the effective date of any final rule established pursuant to subsection (d), the Administrator shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing--CommentsClose CommentsPermalink





(1) the specific rationale and purposes of such rule;CommentsClose CommentsPermalink





(2) the reasons for the adoption of the policies contained in such rule; andCommentsClose CommentsPermalink





(3) the degree to which such rule accurately represents the true operating costs and expenses of property and casualty insurance companies participating in the Write Your Own program.CommentsClose CommentsPermalink





(f) GAO Study and Report on Expenses of WYO Program-CommentsClose CommentsPermalink





(1) STUDY- Not later than 180 days after the effective date of the final rule established pursuant to subsection (d), the Comptroller General of the United States shall--CommentsClose CommentsPermalink





(A) conduct a study on the efficacy, adequacy, and sufficiency of the final rules established pursuant to subsection (d); andCommentsClose CommentsPermalink





(B) 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 findings of the study conducted under subparagraph (A).CommentsClose CommentsPermalink





(2) GAO AUTHORITY- In conducting the study and report required under paragraph (1), the Comptroller General--CommentsClose CommentsPermalink





(A) may use any previous findings, studies, or reports that the Comptroller General previously completed on the Write Your Own program;CommentsClose CommentsPermalink





(B) shall determine if--CommentsClose CommentsPermalink





(i) the final rules established pursuant to subsection (d) allow the Federal Emergency Management Agency to access adequate information regarding the actual expenses of property and casualty insurance companies participating in the Write Your Own program; andCommentsClose CommentsPermalink





(ii) the actual reimbursements paid out under the final rule established in subsection (d) accurately reflect the expenses reported by property and casualty insurance companies participating in the Write Your Own program, including the standard business costs and operating expenses of such companies; andCommentsClose CommentsPermalink





(C) shall analyze the effect of such rules on the level of participation of property and casualty insurers in the Write Your Own program.CommentsClose CommentsPermalink

SEC. 129. MITIGATION.

(a) Mitigation Assistance Grants- Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--CommentsClose CommentsPermalink





(1) by striking subsections (b), (d), (f), (g), (h), (k), and (m);CommentsClose CommentsPermalink





(2) by redesignating subsections (c), (e), (i), and (j) as subsections (b), (c), (e), and (f), respectively;CommentsClose CommentsPermalink





(3) in subsection (a), by striking the last sentence and inserting the following: ‘Such financial assistance shall be made available--CommentsClose CommentsPermalink





‘(1) to States and communities in the form of grants under this section for carrying out mitigation activities;CommentsClose CommentsPermalink





‘(2) to States and communities in the form of grants under this section for carrying out mitigation activities that reduce flood damage to severe repetitive loss structures; andCommentsClose CommentsPermalink





‘(3) to property owners in the form of direct grants under this section for carrying out mitigation activities that reduce flood damage to individual structures for which 2 or more claim payments for losses have been made under flood insurance coverage under this title if the Administrator, after consultation with the State and community, determines that neither the State nor community in which such a structure is located has the capacity to manage such grants.’;CommentsClose CommentsPermalink





(4) in subsection (b), as so redesignated, in the first sentence--CommentsClose CommentsPermalink





(A) by striking ‘and provides protection against’ and inserting ‘provides for reduction of’; andCommentsClose CommentsPermalink





(B) by inserting before the period at the end the following: ‘, and may be included in a multi-hazard mitigation plan’;CommentsClose CommentsPermalink





(5) in subsection (c), as so redesignated--CommentsClose CommentsPermalink





(A) in paragraph (1), by striking ‘(1) USE OF AMOUNTS- ’ and all that follows through the end of the first sentence and inserting the following:CommentsClose CommentsPermalink





‘(1) REQUIREMENT OF CONSISTENCY WITH APPROVED MITIGATION PLAN- Amounts provided under this section may be used only for mitigation activities that are consistent with mitigation plans that are approved by the Administrator and identified under paragraph (4).’;CommentsClose CommentsPermalink





(B) by striking paragraphs (2), (3), and (4) and inserting the following new paragraphs:CommentsClose CommentsPermalink





‘(2) REQUIREMENTS OF TECHNICAL FEASIBILITY, COST EFFECTIVENESS, AND INTEREST OF NFIF- The Administrator may approve only mitigation activities that the Administrator determines are technically feasible and cost-effective and in the interest of, and represent savings to, the National Flood Insurance Fund. In making such determinations, the Administrator shall take into consideration recognized ancillary benefits.CommentsClose CommentsPermalink





‘(3) PRIORITY FOR MITIGATION ASSISTANCE- In providing grants under this section for mitigation activities, the Administrator shall give priority for funding to activities that the Administrator determines will result in the greatest savings to the National Flood Insurance Fund, including activities for--CommentsClose CommentsPermalink





‘(A) severe repetitive loss structures;CommentsClose CommentsPermalink





‘(B) repetitive loss structures; andCommentsClose CommentsPermalink





‘(C) other subsets of structures as the Administrator may establish.’;CommentsClose CommentsPermalink





(C) by redesignating paragraph (5) as paragraph (4);CommentsClose CommentsPermalink





(D) in paragraph (4), as so redesignated--CommentsClose CommentsPermalink





(i) in the matter preceding subparagraph (A), by striking ‘The Director’ and all that follows through ‘Such activities may’ and inserting ‘Eligible activities under a mitigation plan may’;CommentsClose CommentsPermalink





(ii) by striking subparagraphs (E) and (H);CommentsClose CommentsPermalink





(iii) by redesignating subparagraphs (D), (F), and (G) as subparagraphs (E), (G), and (H), respectively;CommentsClose CommentsPermalink





(iv) by inserting after subparagraph (C) the following new subparagraph:CommentsClose CommentsPermalink





‘(D) elevation, relocation, or floodproofing of utilities (including equipment that serve structures);’;CommentsClose CommentsPermalink





(v) by inserting after subparagraph (E), as so redesignated, the following new subparagraph:CommentsClose CommentsPermalink





‘(F) the development or update of mitigation plans by a State or community which meet the planning criteria established by the Administrator, except that the amount from grants under this section that may be used under this subparagraph may not exceed $50,000 for any mitigation plan of a State or $25,000 for any mitigation plan of a community;’;CommentsClose CommentsPermalink





(vi) in subparagraph (H); as so redesignated, by striking ‘and’ at the end; andCommentsClose CommentsPermalink





(vii) by adding at the end the following new subparagraphs:CommentsClose CommentsPermalink





‘(I) other mitigation activities not described in subparagraphs (A) through (G) or the regulations issued under subparagraph (H), that are described in the mitigation plan of a State or community; andCommentsClose CommentsPermalink





‘(J) without regard to the requirements under subsections (d)(1) and (d)(2), and if the State applied for and was awarded at least $1,000,000 in grants available under this section in the prior fiscal year, technical assistance to communities to identify eligible activities, to develop grant applications, and to implement grants awarded under this section, not to exceed $50,000 to any one State in any fiscal year.’;CommentsClose CommentsPermalink





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





‘(5) ELIGIBILITY OF DEMOLITION AND REBUILDING OF PROPERTIES- The Administrator shall consider as an eligible activity the demolition and rebuilding of properties to at least base flood elevation or greater, if required by the Administrator or if required by any State regulation or local ordinance, and in accordance with criteria established by the Administrator.’; andCommentsClose CommentsPermalink





(6) by inserting after subsection (c), as so redesignated, the following new subsection:CommentsClose CommentsPermalink





‘(d) Matching Requirement- The Administrator may provide grants for eligible mitigation activities as follows:CommentsClose CommentsPermalink





‘(1) SEVERE REPETITIVE LOSS STRUCTURES- In the case of mitigation activities to severe repetitive loss structures, in an amount up to 100 percent of all eligible costs.CommentsClose CommentsPermalink





‘(2) REPETITIVE LOSS STRUCTURES- In the case of mitigation activities to repetitive loss structures, in an amount up to 90 percent of all eligible costs.CommentsClose CommentsPermalink





‘(3) OTHER MITIGATION ACTIVITIES- In the case of all other mitigation activities, in an amount up to 75 percent of all eligible costs.’;CommentsClose CommentsPermalink





(7) in subsection (e)(2), as so redesignated--CommentsClose CommentsPermalink





(A) by striking ‘certified under subsection (g)’ and inserting ‘required under subsection (d)’; andCommentsClose CommentsPermalink





(B) by striking ‘3 times the amount’ and inserting ‘the amount’;CommentsClose CommentsPermalink





(8) in subsection (f)(1), as so redesignated, by striking ‘Riegle Community Development and Regulatory Improvement Act of 1994’ and inserting ‘Flood Insurance Reform and Modernization Act of 2011’; andCommentsClose CommentsPermalink





(9) by adding at the end the following new subsections:CommentsClose CommentsPermalink





‘(g) Failure To Make Grant Award Within 5 Years- For any application for a grant under this section for which the Administrator fails to make a grant award within 5 years of the date of the application, the grant application shall be considered to be denied and any funding amounts allocated for such grant applications shall remain in the National Flood Mitigation Fund under section 1367 of this title and shall be made available for grants under this section.CommentsClose CommentsPermalink





‘(h) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





‘(1) COMMUNITY- The term ‘community’ means--CommentsClose CommentsPermalink





‘(A) a political subdivision that--CommentsClose CommentsPermalink





‘(i) has zoning and building code jurisdiction over a particular area having special flood hazards; andCommentsClose CommentsPermalink





‘(ii) is participating in the national flood insurance program; orCommentsClose CommentsPermalink





‘(B) a political subdivision of a State, or other authority, that is designated by political subdivisions, all of which meet the requirements of subparagraph (A), to administer grants for mitigation activities for such political subdivisions.CommentsClose CommentsPermalink





‘(2) REPETITIVE LOSS STRUCTURE- The term ‘repetitive loss structure’ has the meaning given such term in section 1370.CommentsClose CommentsPermalink





‘(3) SEVERE REPETITIVE LOSS STRUCTURE- The term ‘severe repetitive loss structure’ means a structure that--CommentsClose CommentsPermalink





‘(A) is covered under a contract for flood insurance made available under this title; andCommentsClose CommentsPermalink





‘(B) has incurred flood-related damage--CommentsClose CommentsPermalink





‘(i) for which 4 or more separate claims payments have been made under flood insurance coverage under this title, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; orCommentsClose CommentsPermalink





‘(ii) for which at least 2 separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the insured structure.’.CommentsClose CommentsPermalink





(b) Elimination of Grants Program for Repetitive Insurance Claims Properties- Chapter I of the National Flood Insurance Act of 1968 is amended by striking section 1323 (42 U.S.C. 4030).CommentsClose CommentsPermalink





(c) Elimination of Pilot Program for Mitigation of Severe Repetitive Loss Properties- Chapter III of the National Flood Insurance Act of 1968 is amended by striking section 1361A (42 U.S.C. 4102a).CommentsClose CommentsPermalink





(d) National Flood Insurance Fund- Section 1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (6), by inserting ‘and’ after the semicolon;CommentsClose CommentsPermalink





(2) in paragraph (7), by striking the semicolon and inserting a period; andCommentsClose CommentsPermalink





(3) by striking paragraphs (8) and (9).CommentsClose CommentsPermalink





(e) National Flood Mitigation Fund- Section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended--CommentsClose CommentsPermalink





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





(A) by striking paragraph (1) and inserting the following new paragraph:CommentsClose CommentsPermalink





‘(1) in each fiscal year, amounts from the National Flood Insurance Fund not to exceed $90,000,000 and to remain available until expended, of which--CommentsClose CommentsPermalink





‘(A) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 1366(a)(1);CommentsClose CommentsPermalink





‘(B) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 1366(a)(2); andCommentsClose CommentsPermalink





‘(C) not more than $10,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 1366(a)(3);’; andCommentsClose CommentsPermalink





(B) in paragraph (3), by striking ‘section 1366(i)’ and inserting ‘section 1366(e)’;CommentsClose CommentsPermalink





(2) in subsection (c), by striking ‘sections 1366 and 1323’ and inserting ‘section 1366’;CommentsClose CommentsPermalink





(3) by redesignating subsections (d) and (e) as subsections (f) and (g), respectively; andCommentsClose CommentsPermalink





(4) by inserting after subsection (c) the following new subsections:CommentsClose CommentsPermalink





‘(d) Prohibition on Offsetting Collections- Notwithstanding any other provision of this title, amounts made available pursuant to this section shall not be subject to offsetting collections through premium rates for flood insurance coverage under this title.CommentsClose CommentsPermalink





‘(e) Continued Availability and Reallocation- Any amounts made available pursuant to subparagraph (A), (B), or (C) of subsection (b)(1) that are not used in any fiscal year shall continue to be available for the purposes specified in such subparagraph of subsection (b)(1) pursuant to which such amounts were made available, unless the Administrator determines that reallocation of such unused amounts to meet demonstrated need for other mitigation activities under section 1366 is in the best interest of the National Flood Insurance Fund.’.CommentsClose CommentsPermalink





(f) Increased Cost of Compliance Coverage- Section 1304(b)(4) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is amended--CommentsClose CommentsPermalink





(1) by striking subparagraph (B); andCommentsClose CommentsPermalink





(2) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively.CommentsClose CommentsPermalink

SEC. 130. FLOOD PROTECTION STRUCTURE ACCREDITATION TASK FORCE.

(a) Definitions- In this section--CommentsClose CommentsPermalink





(1) the term ‘flood protection structure accreditation requirements’ means the requirements established under section 65.10 of title 44, Code of Federal Regulations, for levee systems to be recognized on maps created for purposes of the National Flood Insurance Program;CommentsClose CommentsPermalink





(2) the term ‘National Committee on Levee Safety’ means the Committee on Levee Safety established under section 9003 of the National Levee Safety Act of 2007 (33 U.S.C. 3302); andCommentsClose CommentsPermalink





(3) the term ‘task force’ means the Flood Protection Structure Accreditation Task Force established under subsection (b).CommentsClose CommentsPermalink





(b) Establishment-CommentsClose CommentsPermalink





(1) IN GENERAL- The Administrator and the Secretary of the Army, acting through the Chief of Engineers, in cooperation with the National Committee on Levee Safety, shall jointly establish a Flood Protection Structure Accreditation Task Force.CommentsClose CommentsPermalink





(2) DUTIES-CommentsClose CommentsPermalink





(A) DEVELOPING PROCESS- The task force shall develop a process to better align the information and data collected by or for the United States Army Corps of Engineers under the Inspection of Completed Works Program with the flood protection structure accreditation requirements so that--CommentsClose CommentsPermalink





(i) information and data collected for either purpose can be used interchangeably; andCommentsClose CommentsPermalink





(ii) information and data collected by or for the United States Army Corps of Engineers under the Inspection of Completed Works Program is sufficient to satisfy the flood protection structure accreditation requirements.CommentsClose CommentsPermalink





(B) GATHERING RECOMMENDATIONS- The task force shall gather, and consider in the process developed under subparagraph (A), recommendations from interested persons in each region relating to the information, data, and accreditation requirements described in subparagraph (A).CommentsClose CommentsPermalink





(3) CONSIDERATIONS- In developing the process under paragraph (2), the task force shall consider changes to--CommentsClose CommentsPermalink





(A) the information and data collected by or for the United States Army Corps of Engineers under the Inspection of Completed Works Program; andCommentsClose CommentsPermalink





(B) the flood protection structure accreditation requirements.CommentsClose CommentsPermalink





(4) RULE OF CONSTRUCTION- Nothing in this section shall be construed to require a reduction in the level of public safety and flood control provided by accredited levees, as determined by the Administrator for purposes of this section.CommentsClose CommentsPermalink





(c) Implementation- The Administrator and the Secretary of the Army, acting through the Chief of Engineers, shall implement the process developed by the task force under subsection (b).CommentsClose CommentsPermalink





(d) Reports- The Administrator and the Secretary of the Army, acting through the Chief of Engineers, in cooperation with the National Committee on Levee Safety, shall jointly submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Environment and Public Works of the Senate and the Committee on Financial Services, the Committee on Transportation and Infrastructure, and the Committee on Natural Resources of the House of Representatives reports concerning the activities of the task force and the implementation of the process developed by the task force under subsection (b), including--CommentsClose CommentsPermalink





(1) an interim report, not later than 180 days after the date of enactment of this Act; andCommentsClose CommentsPermalink





(2) a final report, not later than 1 year after the date of enactment of this Act.CommentsClose CommentsPermalink





(e) Termination- The task force shall terminate on the date of submission of the report under subsection (d)(2).CommentsClose CommentsPermalink

SEC. 131. FLOOD IN PROGRESS DETERMINATIONS.

(a) Report-CommentsClose CommentsPermalink





(1) REVIEW- The Administrator shall review--CommentsClose CommentsPermalink





(A) the processes and procedures for determining that a flood event has commenced or is in progress for purposes of flood insurance coverage made available under the National Flood Insurance Program;CommentsClose CommentsPermalink





(B) the processes and procedures for providing public notification that such a flood event has commenced or is in progress;CommentsClose CommentsPermalink





(C) the processes and procedures regarding the timing of public notification of flood insurance requirements and availability; andCommentsClose CommentsPermalink





(D) the effects and implications that weather conditions, including rainfall, snowfall, projected snowmelt, existing water levels, and other conditions, have on the determination that a flood event has commenced or is in progress.CommentsClose CommentsPermalink





(2) REPORT- Not later than 6 months after the date of enactment of this Act, the Administrator shall submit a report to Congress that describes--CommentsClose CommentsPermalink





(A) the results and conclusions of the review under paragraph (1); andCommentsClose CommentsPermalink





(B) any actions taken, or proposed actions to be taken, by the Administrator to provide for more precise and technical processes and procedures for determining that a flood event has commenced or is in progress.CommentsClose CommentsPermalink





(b) Effective Date of Policies Covering Properties Affected by Flooding of the Missouri River in 2011-CommentsClose CommentsPermalink





(1) ELIGIBLE COVERAGE- For purposes of this subsection, the term ‘eligible coverage’ means coverage under a new contract for flood insurance coverage under the National Flood Insurance Program, or a modification to coverage under an existing flood insurance contract, for property damaged by the flooding of the Missouri River that commenced on June 1, 2011, that was purchased or made during the period beginning May 1, 2011, and ending June 6, 2011.CommentsClose CommentsPermalink





(2) EFFECTIVE DATES- Notwithstanding section 1306(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), or any other provision of law, any eligible coverage shall--CommentsClose CommentsPermalink





(A) be deemed to take effect on the date that is 30 days after the date on which all obligations for the eligible coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed; andCommentsClose CommentsPermalink





(B) cover damage to property occurring after the effective date described in subparagraph (A) that resulted from the flooding of the Missouri River that commenced on June 1, 2011, if the property did not suffer damage or loss as a result of such flooding before the effective date described in subparagraph (A).CommentsClose CommentsPermalink

SEC. 132. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE LIMITS.

Section 1306(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)--CommentsClose CommentsPermalink





(A) by striking ‘in the case of any residential property’ and inserting ‘in the case of any residential building designed for the occupancy of from one to four families’; andCommentsClose CommentsPermalink





(B) by striking ‘shall be made available to every insured upon renewal and every applicant for insurance so as to enable such insured or applicant to receive coverage up to a total amount (including such limits specified in paragraph (1)(A)(i)) of $250,000’ and inserting ‘shall be made available, with respect to any single such building, up to an aggregate liability (including such limits specified in paragraph (1)(A)(i)) of $250,000’; andCommentsClose CommentsPermalink





(2) in paragraph (4)--CommentsClose CommentsPermalink





(A) by striking ‘in the case of any nonresidential property, including churches,’ and inserting ‘in the case of any nonresidential building, including a church,’; andCommentsClose CommentsPermalink





(B) by striking ‘shall be made available to every insured upon renewal and every applicant for insurance, in respect to any single structure, up to a total amount (including such limit specified in subparagraph (B) or (C) of paragraph (1), as applicable) of $500,000 for each structure and $500,000 for any contents related to each structure’ and inserting ‘shall be made available with respect to any single such building, up to an aggregate liability (including such limits specified in subparagraph (B) or (C) of paragraph (1), as applicable) of $500,000, and coverage shall be made available up to a total of $500,000 aggregate liability for contents owned by the building owner and $500,000 aggregate liability for each unit within the building for contents owned by the tenant’.CommentsClose CommentsPermalink